BHLB - Investors Bancorp to acquire 8 Berkshire Bank branches in New Jersey and Eastern Pennsylvania

Investors Bancorp's (ISBC) subsidiary Investors Bank signs definitive agreement to acquire 8 New Jersey and eastern Pennsylvania branches of Berkshire Bank (BHLB) with ~$639M of deposits and $308M of consumer and commercial loans rated at 4.2% credit mark.Investors will pay a 3.0% deposit premium on deposits acquired at close and plans to use the lower cost funding to immediately extinguish ~$250M of FHLB borrowings that will bring down its borrowing ratio.The transaction is expected to be ~5% accretive Investors' EPS, with tangible book value dilution of ~1.6% inclusive of all FHLB prepayment fees. Further, the acquisition doubles the company's market share in the Trenton, New Jersey MSA.Following the receipt of regulatory approval, the transaction is expected to close in H1 2021."This is a low risk, in-market transaction with a minimal impact on capital levels," says chairman and CEO Kevin Cummings,  "and given the improved economic outlook and our strong tangible capital levels, we have decided to resume repurchasing our shares.ISBC +0.50% AH.

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Investors Bancorp to acquire 8 Berkshire Bank branches in New Jersey and Eastern Pennsylvania