Pathfinder Bancorp, Inc. Announces Receipt of Regulatory Approvals for Acquisition of Berkshire Bank East Syracuse Branch
Pathfinder Bancorp announced that its banking subsidiary, Pathfinder Bank, has received regulatory approvals from the New York State Department of Financial Services and the FDIC to acquire Berkshire Bank's East Syracuse branch. The acquisition includes approximately $198 million in deposits and $32 million in loans. This strategic move aims to expand Pathfinder's market footprint in the Syracuse area and is expected to positively impact earnings per share and generate a favorable internal rate of return. The acquisition is slated for completion in Q3 2024, with the branch set to operate as a Pathfinder Bank location.
- Regulatory approvals obtained for acquisition, ensuring compliance.
- Acquisition includes $198 million in deposits and $32 million in loans.
- Expected to positively impact earnings per share.
- Anticipated favorable internal rate of return.
- Strategic market expansion in the Syracuse area.
- Conversion teams ensuring a seamless transition for customers.
- Potential integration challenges post-acquisition.
- Risk of customer attrition during the transition.
- Costs associated with the integration process.
Insights
The acquisition of Berkshire Bank's East Syracuse branch by Pathfinder Bancorp, Inc. is a notable strategic move. By acquiring
In the short term, investors could see a positive market reaction, given the growth potential and strategic expansion into the Syracuse market. In the long term, the acquisition could lead to economies of scale and increased market share, improving Pathfinder's competitive positioning. However, investors should monitor the integration process closely, as any operational hiccups could impact the anticipated benefits.
This acquisition aligns with industry norms where banks seek growth through strategic acquisitions rather than organic growth alone, often leading to faster market expansion and improved financial performance.
This acquisition allows Pathfinder to penetrate deeper into the Syracuse market, which could be a lucrative area due to its diversified economic base. The addition of an established branch with a substantial deposit base provides Pathfinder with a strong foothold in this market. Moreover, the acquisition includes consumer and residential loans, which could help Pathfinder diversify its loan portfolio and reduce risk.
Expanding market presence in Syracuse could attract more customers, leveraging Pathfinder's extensive product range and existing network of 11 branches. From a competitive standpoint, this move might pressure local competitors by increasing Pathfinder's market share and customer base. Investors should consider the long-term growth prospects that come with such market expansions.
OSWEGO, N.Y., June 13, 2024 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Pathfinder” or “Company”) (NASDAQ: PBHC), announced that its banking subsidiary, Pathfinder Bank (“Bank”), has received the required regulatory agency approvals from both the New York State Department of Financial Services and the Federal Deposit Insurance Corporation to complete its pending acquisition of the East Syracuse, New York branch of Berkshire Bank, Pittsfield, MA located on 6611 Manlius Center Road.
The purchase and assumption agreement provides for the transfer by Berkshire Bank to Pathfinder of the facility and other associated assets of the branch, approximately
James A. Dowd, President and Chief Executive Officer of Pathfinder Bancorp, Inc. and Pathfinder Bank, stated, “We are excited to have received all of the regulatory agency approvals required for this transaction, allowing us to strategically expand our market footprint with the addition of a branch location in East Syracuse. This acquisition significantly increases our presence in the attractive Syracuse market and further positions us for accelerated business growth. We look forward to extending our offerings of comprehensive consumer and business products and services to an expanded market area.”
The parties expect to close on the purchase and assumption agreement in the third quarter of 2024, at which point Berkshire’s East Syracuse branch will be fully converted to operate as a Pathfinder Bank branch office. “The conversion teams representing both Berkshire and Pathfinder are working diligently to ensure a seamless process for our new customers,” added Dowd. “We warmly welcome the existing customers of the East Syracuse branch, offering an extensive product set as well as a network of 11 additional regional branch locations for their banking needs.”
About Pathfinder Bancorp, Inc.
Pathfinder Bancorp, Inc. (NASDAQ: PBHC), a Maryland corporation headquartered in Oswego, New York, is the parent company for Pathfinder Bank. Pathfinder Bank is a
Forward-Looking Statement
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "pro forma,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in or implied by the forward-looking statements as a result of numerous factors, and depend on the Company’s and the Bank’s ability to close the proposed branch acquisition in a timely manner and to realize the anticipated benefits of the transaction. For a discussion of such factors, please see Pathfinder's most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission and available on the SEC's website at www.sec.gov.
The foregoing description of the branch sale reflects loan and deposit balances as of January 31, 2024, and the actual amounts of loans and deposits that are acquired under the purchase and assumption agreement are subject to change prior to closing. Targeted financial benefits are subject to uncertainty, including but not limited to the pro forma results and underlying assumptions related to the branch sale, and may be affected or offset by other conditions related to the Company's operation. You should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this document. Pathfinder does not undertake any obligation to update forward-looking statements.
Investor/Media Contacts
James A. Dowd, President, CEO
Walter F. Rusnak, Senior Vice President, CFO
Telephone: (315) 343-0057
FAQ
What regulatory approvals did Pathfinder Bancorp receive for the acquisition?
What assets are included in Pathfinder Bancorp's acquisition of the East Syracuse branch?
When is the acquisition of Berkshire Bank's East Syracuse branch expected to complete?
What is the anticipated financial impact of the acquisition on Pathfinder Bancorp?
How will the acquisition affect Pathfinder Bancorp's presence in the Syracuse area?
