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The parent company of Brookline Bank plans to acquire a New York-based bank and operate it as a separate subsidiary.
Brookline Bancorp has agreed to acquire Yorktown Heights-based PCSB Financial Corp., the parent company of PCSB Bank, in a cash and stock deal valued at approximately $313 million. PCSB Bank will retain its New York state bank charter, Brookline Bancorp said in a statement.
“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,” Paul Perrault, Brookline Bancorp’s chairman and CEO, said in the statement. “PCSB has a high-quality loan portfolio, deposit base and talented employees, making it an excellent addition to our organization.”
PCSB has about $1.8 billion in assets, and the deal would give Brookline Bancorp, which is also the parent company of Bank Rhode Island, more than $10 billion in assets. Brookline said in the statement that it would be one of the few regional banks operating in the Boston, Providence and New York metropolitan markets.
The deal is expected to close in the second half of the year.
“We are truly excited to be merging with Brookline,” Joseph D. Roberto, chairman, president and CEO of PCSB, said in the statement. “Paul and his team have built an impressive regional financial services company with a bedrock culture of performance, service and support of their customers, employees and shareholders. 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.”
Michael P. Goldrick, PCSB Bank’s executive vice president and chief lending officer, will become PCSB Bank’s president and CEO after the deal closes, the statement said.
Under the terms of the merger agreement, PCSB stockholders will receive either $22 in cash consideration or 1.3284 shares of Brookline common stock for each share of PCSB common stock. The deal is subject to allocation procedures to ensure 60 percent of the outstanding shares of PCSB common stock will be converted to Brookline common stock, the statement said.
