Saturday, December 14, 2024
Photo: Go Local
The Wall Street Journal reported Saturday that BankRI's parent company is in merger talks.
“Boston-based regional banking firms Berkshire Hills Bancorp and Brookline Bancorp are in merger talks, according to people familiar with the matter. The merger of the two banks could be announced as early as next week if talks do not break down,'' WSJ reported.
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BankRI was formed in 1996 after a group of investors led by Kim Chase purchased 12 branches sold by Fleet Boston Financial Co. in connection with its merger with Shawmut National Corporation. Brookline acquired BankRI in 2011.
Berkshire Hills' market value was about $1.3 billion as of midday Friday, while Brookline's market value was just over $1 billion.
“Berkshire has more than 80 branches in New England and New York. Brookline operates multiple banks throughout the Northeast, each with between a dozen and about 20 branches. Brookline in Boston BankRI in Providence, Rhode Island, and PCSB Bank in New York's lower Hudson Valley. Both banks have exposure to commercial real estate lending, which is under pressure,'' the Journal reported.
In 2022, BankRI announced it would build a new headquarters in Providence's Fox Point neighborhood, but that project has not progressed.
WSJ says, “More local banks are starting to consider whether to partner up to address commercial real estate, technology and other challenges, especially small and medium-sized banks that don't enjoy the scale and diversity of megabanks. That's right.'' Bank executives are optimistic that President-elect Donald Trump will take a friendlier approach to industry mergers and ease capital and consumer regulations. ”
