BankRI’s Parent Company In Talks to Merge With Berkshire, Says WSJ
GoLocalProv Business Team
BankRI’s Parent Company In Talks to Merge With Berkshire, Says WSJ
“Boston-based regional bank companies Berkshire Hills Bancorp and Brookline Bancorp are in talks to combine, according to people familiar with the matter. The deal would merge the two banks, which each have about $12 billion in assets, and could be announced as soon as next week, assuming talks don’t fall apart,” reports the WSJ.
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BankRI was founded in 1996 after a group of investors led by Kim Chace purchased 12 branches divested by Fleet Boston Financial Inc. in connection with its merger with Shawmut National Corp. Brookline bought BankRI in 2011.
Berkshire Hills had a market value of around $1.3 billion as of midday Friday, while Brookline’s was just over $1 billion.
“Berkshire has more than 80 branches throughout New England and New York. Brookline operates several banks throughout the Northeast, each with between a dozen and roughly two dozen branches: Brookline Bank in Boston, BankRI in Providence, R.I., and PCSB Bank in the lower Hudson Valley in New York. Both banks have exposure to commercial real-estate loans, which have come under pressure,” according to the WSJ.
In 2022, BankRI announced it would build a new corporate headquarters in the Fox Point section of Providence, but that project has not developed.
The WSJ cites, “More regional banks have started to consider whether to partner up to address commercial real estate, technology and other challenges, especially midsize and small institutions that don’t enjoy the scale and diversity of megabanks. Bank executives are optimistic that President-elect Donald Trump will take a friendlier approach to mergers in the industry and ease capital and consumer regulations.”