Commerce Bank to be acquired for $209M
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Commerce Bank CEO Brian Thompson will become an advisor to Berkshire Bank and a community liaison after the merger is approved.
Berkshire Hills Bancorp, Inc. will acquire Worcester-based Commerce Bancshares Corp. for $209 million in stock, Berkshire Hills announced Monday.
The Pittsfield-based bank, which is looking to grow in Central and Eastern Massachusetts, will use the acquisition of the parent company Commerce Bank as a launching point to move its headquarters to Boston, according to Berkshire. The new bank’s total assets are expected to be $12 billion, including $2.2 billion in acquired assets from Commerce.
Commerce, which has 13 branches in the Worcester area and three in Boston, reported $1.5 billion in loans and $2 billion in deposits as of March 31. Outstanding shares of Commerce’s common stock will be exchanged for .93 shares of Berkshire Hills common stock, according to the announcement, and comprise 14 percent of Berkshire ownership stock.
Once the transaction is complete, two Commerce board members will join Berkshire’s board: Pamela Massad, a lawyer at Worcester-based Fletcher Tilton and daughter of Commerce majority shareholder David "Duddie" Massad; and David Brunelle, managing director at Worcester financial advisory firm North Point Wealth Management.
As part of the merger, Duddie Massad agreed to refrain from buying more than a 9.9-percent ownership stake in Berkshire stock or selling Berkshire stock without the company's approval, according to Berkshire's filing with the U.S. Securities & Exchange Commission.
Commerce’s CEO, Brian Thompson, and chief operating officer, Michael Crawford, will serve as advisors and liaisons to the local community.
Commerce has 223 employees. Berkshire made no mention of layoffs but said in a conference call to investors the merger synergies will create a 20-percent savings in Commerce expenses.
The merger, subject to regulatory approvals, is on target to be finalized in six to nine months.
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