Bank of America Corporation
) recently announced the decision to sell its branches to
Berkshire Bank - a subsidiary of
Berkshire Hills Bancorp Inc
) - and
Community Bank System Inc
). BofA plans to dispose its branches situated in both New York
markets and northeastern Pennsylvania.
The company is planning to divest 20 New York market branches to
). These branches have total deposits of around $640 million and
total loans worth about $5 million.
Moreover, Berkshire Bank plans to retain the employees of the
acquired branches. BofA is selling its branches for $14.4
million, representing a deposit premium of 2.25% on the
collective total deposits.
The acquisition of BofA's branches by Berkshire Bank is expected
to be completed in the first quarter of 2014. Moreover, the deal
is subject to regulatory approval from the Federal Deposit
Insurance Corp. and the Commonwealth of Massachusetts as well as
satisfaction of customary closing conditions.
Apart from this, BofA plans to sell 8 northeastern Pennsylvania
branches to Community Bank at a 2.39% premium for about $369.0
million in deposits. The transaction is expected to be completed
in the fourth quarter of 2013, subject to regulatory review and
Last week, BofA agreed to sell 51 branches situated in Eastern
Washington, Idaho, Oregon and New Mexico to
Washington Federal Inc
). The branches represent total deposits of about $1.8 billion
and total loans of about $11 million.
This transaction is expected to be completed in the fourth
quarter of 2013. Moreover, the deal is subject to regulatory
approval from the Office of the Comptroller of the Currency (OCC)
and satisfaction of customary closing conditions.
BANK OF AMER CP (BAC): Free Stock Analysis
BERKSHIRE BCP (BERK): Get Free Report
BERKSHIRE HILLS (BHLB): Free Stock Analysis
COMMNTY BK SYS (CBU): Free Stock Analysis
WASH FEDL INC (WAFD): Free Stock Analysis
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Over the past few years, BofA has been selling its branches and
shuttering operations in an attempt to simplify its structure and
strengthen its financials. Moreover, BofA's effort to dispose
branches is expected to reduce its employee base, thereby
lessening its expenses.
BofA currently carries a Zacks Rank #3 (Hold).