By Kimberley Donoghue PBN Web Editor Twitter: @kydonoghue
BROOKLINE, Mass. – Brookline Bancorp Inc. announced on Wednesday the acquisition of Bancorp Rhode Island and its subsidiary, BankRI, for approximately $234 million in cash and stock.
The transaction was unanimously approved by both companies’ boards of directors and is expected to close in the fourth quarter of 2011, pending regulatory approvals.
Bancorp Rhode Island shareholders will receive either $48.25 in cash or 4.686 shares of Brookline Bancorp common stock for each Bancorp Rhode Island share, or a combination of cash and shares.
Bancorp RI will preserve its brand, its headquarters in Providence and will operate as a separate subsidiary of Brookline Bancorp. The combined organization will have 43 banking offices in Massachusetts and Rhode Island, $4.7 billion in assets, $3.7 billion in loans and $3.2 billion in deposits.
Mark Meiklejohn, currently BankRI's executive vice president and chief lending officer, will become BankRI's president and CEO.
“This transaction is a true win-win for Bancorp Rhode Island. It delivers significant value to our shareholders through a proven business model that allows us to retain our local identity and strong relationships with the customers and communities we serve,” said Merrill W. Sherman, CEO of Bancorp Rhode Island.
Sherman and one other Bancorp Rhode Island director will join the Brookline Bancorp board of directors, Brookline said in a news release on Wednesday.
Brookline Bancorp operates as the bank holding company for Brookline Bank and The First National Bank of Ipswich.