PROVIDENCE – Brookline Bancorp Inc., parent of Bank Rhode Island, on Tuesday announced the purchase of New York-based PCSB Financial Corp. for $313 million in cash and stock.
“This transaction represents a unique opportunity for Brookline to expand its banking operations into one of the country’s largest deposit markets through the acquisition of a complimentary commercial banking organization.” said Paul Perrault, chairman and CEO of Brookline Bancorp. “PCSB has a high-quality loan portfolio, deposit base and talented employees, making it an excellent addition to our organization.”
PCSB Financial Corp. is a New York-chartered commercial bank that serves the lower Hudson Valley. It operates from its executive offices and 14 branch offices in Dutchess, Putnam, Rockland and Westchester Counties in New York.
PCSB Financial Corp. will operate as a subsidiary of Brookline Bancorp after the transaction is finalized. Its headquarters will remain in Yorktown Heights, N.Y., and will keep its New York state bank charter. Michael P. Goldrick, currently PCSB Bank’s executive vice president and chief lending officer, will become PCSB Bank’s CEO and president.
The new combined organization with PCSB Financial Corp. will further establish Brookline in the Northeast with more than $10 billion in assets. Brookline will represent one of the few regional banks operating in the Boston, Providence and New York metropolitan markets.
“We are truly excited to be merging with Brookline,” said Joseph D. Roberto, chairman, president and CEO of PCSB Financial Corp. “Paul [Perrault] and his team have built an impressive regional financial services company. … Partnering with Brookline will allow PCSB to deliver even more value to our communities and customers as we continue to expand in the lower Hudson Valley.”
Under the terms of the agreement, PCSB Financial Corp. stockholders will receive either $22 in cash consideration or 1.3284 shares of Brookline common stock for each share of PCSB Financial Corp. shares, subject to allocation procedures to ensure 60% of the outstanding shares of PCSB Financial Corp. stock will be converted to Brookline stock.
The transaction was unanimously approved by the board of directors of both companies and is expected to be completed in the second half of 2022. The deal is subject to approval by PCSB Financial Corp. stockholders, as well as regulatory approvals.
Brookline Bancorp, also the parent company for Brookline Bank and First Ipswich Bank in Massachusetts, is headquartered in Boston with approximately $8.6 billion in assets and branch locations in eastern Massachusetts and Rhode Island.
Providence-based Bank Rhode Island, founded in 1995, has $2.7 billion in deposits with 20 and branches and 40 ATMs, according to the 2022 Providence Business News Book of Lists.
