Berkshire Bank to sell East Syracuse branch to Pathfinder

The parent of Berkshire Bank is selling its branch office at 6611 Manlius Center Road in East Syracuse to Pathfinder Bank. FILE PHOTO CREDIT: ZOEYADVERTISING.COM

It’s also selling nine other New York state branches to other financial institutions

EAST SYRACUSE — Boston–based Berkshire Hills Bancorp, Inc., (NYSE: BHLB) announced it will sell the East Syracuse branch of its Berkshire Bank subsidiary to Pathfinder Bank.

Berkshire is also selling nine other branches in upstate and eastern New York to other financial institutions, as it works to create efficiencies and improve long-term profits, according to a press release from the banking company.

Eight Berkshire Bank offices in Albany, Saratoga, Schenectady, and Columbia counties will be sold to Hudson Valley Credit Union. Meanwhile Glens Falls National Bank and Trust Company is purchasing one location in Whitehall, and Pathfinder Bank is acquiring the East Syracuse branch at 6611 Manlius Center Road. Berkshire did not disclose financial terms of the sales, which are targeted for closing by the end of the third quarter. 

[elementor-template id="66015"]

Those 10 branches include a total of about $485.5 million in customer deposits, $60.5 million of related residential mortgage and consumer loans, and all branch premises and equipment. The deal excludes Berkshire’s commercial banking business. “The buyers intend to offer employment to all associated staff,” Berkshire said. 

Berkshire Bank’s branch count will go from 96 to 86 with the sales.

“Our announcement today is another step in our continued efforts to create efficiencies in our branch network so we can continue to invest in our bankers and client experience to further improve our long-term profitability,” Berkshire CEO Nitin Mhatre said in the March 4 news release. “The proposed sales will concentrate our overall geographic footprint and lower our expense run rate while strengthening focus in our core New York markets. The branch sales combined with a future securities sale will not materially increase borrowings and will be effectively neutral to full-year 2024 earnings outlook.” 

Advertisement

Oswego–based Pathfinder Bank, a unit of Pathfinder Bancorp (NASDAQ: PBHC), currently operates 10 branches in Onondaga and Oswego counties. The Berkshire Bank branch acquisition will bring $198 million in deposits and other consumer and residential loans with outstanding balances of about $32 million to Pathfinder, which expects the acquisition to generate a favorable internal rate of return as well as earnings-per-share growth. Following the acquisition, Pathfinder expects it will have total assets of $1.7 billion. The addition of nearly $200 million in low-cost deposits will improve its liquidity profile and balance-sheet flexibility, according to a release from Pathfinder.

“We are pleased to enter into this agreement with Berkshire Bank,” Pathfinder Bank President/CEO James A. Dowd said. “This has given us a unique yet strategically aligned opportunity to help us achieve a higher level of financial performance for our shareholders by gaining meaningful access into a market with attractive growth opportunities.”

He went on to say the East Syracuse location will help strengthen Pathfinder’s local presence, enhance convenience for existing customers, provide for team expansion, and position the company for business growth.

“Pathfinder and Berkshire have been active community-based financial institutions dedicated to serving their local markets for a combined 340-plus years,” Dowd said. “By acquiring a branch location from an organization that aligns with our relationship-driven values, we believe we have found the ideal strategic move to advance our customer- and community-centric approach. We warmly welcome the existing customers of the East Syracuse branch, offering an extensive product set and a network of 11 additional reginal branch locations for their banking needs. We’re also excited to welcome the current Berkshire employees.”

After the branch sale, Berkshire will continue to operate 16 branches in its core New York market including branches in Rome, New Hartford, Whitesboro, North Utica, West Winfield, and Ilion.

“We continue to execute on opportunities to create efficiencies in our franchise,” Berkshire CFO David Rosato said. “These transactions allow us to exit these branches without incurring severance or real-estate costs while reducing expenses and contributing positively to our long-term profitability.”

Advertisement

RBC Capital Markets LLC served as Berkshire’s financial advisor while Luse Gorman, PC provided legal counsel. Janney Montgomery Scott LLC and Troutman Pepper Hamilton Sanders LLP are acting as financial advisor and legal advisor, respectively, to Pathfinder.          

Traci DeLore: