Just one month after Brookline Bancorp Inc. completed its acquisition of First Ipswich Bancorp, the bank announced it will acquire Bancorp Rhode Island Inc. and its subsidiary, BankRI, for approximately $234 million in cash and stock.
The combined organization will have 43 banking offices serving individuals and businesses across Massachusetts and Rhode Island, and will have approximately $4.7 billion in assets, including $3.7 billion in loans, and $3.2 billion in deposits.
BankRI’s 17 branches hold the top four and five deposit market positions in Providence and Kent counties, respectively. BankRI will preserve its brand and operate as a separate subsidiary of Brookline Bancorp, according to a statement.
"We are excited about the combination of Bancorp Rhode Island and Brookline Bancorp," said Paul A. Perrault, Brookline Bancorp’s chief executive officer. "This transaction represents a tremendous opportunity to enhance shareholder value, strengthen our competitive market position and bring together two organizations dedicated to serving New England businesses and residents. Bancorp Rhode Island, with its high-quality asset portfolio, deposit base and talented employees, is a great addition to our organization and we look forward to closing the transaction as expeditiously as possible."
"This transaction is a true win-win for Bancorp Rhode Island. It delivers significant value to our shareholders through a proven business model that allows us to retain our local identity and strong relationships with the customers and communities we serve," said Merrill W. Sherman, Bancorp Rhode Island’s chief executive officer. "With Brookline Bancorp, we will benefit from the scale and greater capital resources of a larger institution, enabling us to enhance efficiencies, invest more in customer service and fund increased business lending."
Under the terms of the merger agreement, shareholders of Bancorp Rhode Island will receive, for each Bancorp Rhode Island share and at the holder’s election, either $48.25 in cash, or 4.686 shares of Brookline Bancorp common stock or a combination thereof, with total cash consideration of approximately $121 million and total stock consideration of approximately 11 million shares of Brookline Bancorp common stock.
The acquisition is subject to customary closing conditions, including receipt of regulatory approvals and approval of Bancorp Rhode Island’s shareholders. The transaction is expected to close in the fourth quarter.
Upon completion of the merger, BankRI will retain its Rhode Island bank charter and board of directors, and its headquarters will remain in Providence. Sherman and another Bancorp Rhode Island director will join the Brookline Bancorp board of directors. In addition, following the closing, Mark Meiklejohn, currently BankRI’s executive vice president and chief lending officer, will become BankRI’s president and chief executive officer.
