POUGHKEEPSIE, N.Y.—The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank, the $12.4-billion bank reported.
The CU is among three buyers purchasing a total of 10 branches from Berkshire, which will have 86 locations once the agreements are finalized. The deal will take Hudson Valle’s branch total to 30.
The overall deal includes approximately $485.5 million in deposits, $60.5 million of related residential mortgage and consumer loans along with all branch premises and equipment. The transactions exclude Berkshire's commercial banking business, the bank said.
Hudson Valley Credit Union is purchasing eight locations in Albany, Saratoga, Schenectady, and Columbia counties, Glens Falls National Bank and Trust Company is purchasing one location in Whitehall and Pathfinder Bank is purchasing one location in East Syracuse, Berkshire said, adding the buyers intend to offer employment to all associated staff.
The sales are targeted for completion by the end of the third quarter of 2024 subject to customary regulatory approvals and associated system conversions, Berkshire said.
Branch Deals Picking Up
“Hudson Valley Credit Union is pleased to welcome customers and employees from these Berkshire branches to our financial cooperative. We are confident that both will find exciting new ways we can help them achieve financial freedom,” said Hudson Valley CEO Jonathan Roberts commented.
"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. The proposed sales will concentrate our overall geographic footprint and lower our expense run rate, while strengthening focus in our core New York markets,” said Berkshire CEO Nitin Mhatre. 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."
Hudson Valley made $15 million through September of 2023 and 71.4 million in ’22. The CU’s capital stands at 11.97% capital.
“The branch deal space is becoming markedly more active. I expect this to hold true throughout 2024," said Michael Bell, partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Hudson Valley.
Bell has been involved in over 55 whole-bank agreements, plus additional bank branch purchases.
Berkshire's financial advisor for the branch sale was RBC Capital Markets LLC and legal counsel was provided by Luse Gorman, PC.