
SVB Completes Acquision of Boston Private
The first of several acquisitions involving Boston-area banks is now complete, with Boston Private closing its sale to SVB Financial Group, the parent company of California-based Silicon Valley Bank.
The first of several acquisitions involving Boston-area banks is now complete, with Boston Private closing its sale to SVB Financial Group, the parent company of California-based Silicon Valley Bank.
Greater Boston moved closer yesterday to seeing its first completed bank merger of 2021 when the Federal Reserve Board approved Boston Private’s acquisition by the parent company of Silicon Valley Bank.
As part of its acquisition of Boston Private, the parent of Silicon Valley Bank has proposed a five-year, $11.2 billion community benefits plan that was developed in collaboration with the Massachusetts Affordable Housing Alliance (MAHA) and Massachusetts Association of Community Development Corporations (MACDC).
While an overwhelming majority of the shares involved in Boston Private’s special meeting yesterday voted in favor of the bank’s planned merger with the parent company of Silicon Valley Bank, nearly 20 percent of outstanding shares did not participate, resulting in a close vote.
In a move one of its shareholders called “manipulative tactics,” Boston Private decided to wait another week before holding a vote on the proposed merger with Silicon Valley Bank and adjourned Tuesday morning’s special shareholder meeting without conducting any business.
As HoldCo Asset Management continues its efforts to block Boston Private’s merger with Silicon Valley Bank, three independent proxy advisory firms have recommended that shareholders vote in favor of the deal.
Less than three weeks before the shareholder meeting to decide whether Boston Private goes ahead with its proposed sale to the parent company of Silicon Valley Bank, Boston Private’s board of directors has again responded to an investor’s attempt to stop the transaction.
Boston Private Financial Holdings will hold a vote on its proposed merger with Silicon Valley Bank in late April, and shareholders can expect to receive dueling recommendations on whether the deal should go through.
A New York-based asset manager that recently voiced concerns about the sale of Boston Private to Silicon Valley Bank plans to nominate its own candidates, including its co-founders, to the bank’s board of directors.
A day after Boston Private Financial Holding agreed to be acquired by the parent company of Silicon Valley Bank, one of Boston Private’s investors sent an open letter to the bank with concerns about “the integrity of the process undertaken by BPFH to maximize value for shareholders.”
The parent company of California-based Silicon Valley Bank is looking at potential growth rather than cost savings in its decision to acquire Boston Private Bank.
The parent company of Santa Clara, California-based Silicon Valley Bank has agreed to acquire Boston Private Bank & Trust Company in a deal valued at approximately $900 million.
After a $3.3 million loss in the second quarter, Boston Private Bank had a smaller loan loss provision in the third quarter and reported net income of $22.7 million.
Boston Private has joined the list of banks seeing the effects of the coronavirus crisis and CECL adoption, as its first quarter earnings dropped 96 percent compared to the same period last year.
Clayton Deutsch, CEO and president of Boston Private Financial Holdings, will retire after more than eight years with the company.
Boston Private Financial Holdings is shedding another of its wealth management divisions to refocus on its own personal wealth management brand and is also preparing for significant layoffs.