Bancorp Rhode Island Inc. (BARI) skyrockets after takeover news

Bancorp Rhode Island Inc. (Nasdaq: BARI) shares surged 44.1% to $44.25 Wednesday, after a takeover bid. The stock traded in more than 306,000 shares, and smashed its previous 52-week high of $32.80, following an announcement that Brookline Bancorp (Nasdaq: BRKL) will buy the Providence-based bank for approximately $234 million in cash and stock.

The newly-combined organization will have 43 banking offices serving individuals and businesses across Massachusetts and Rhode Island, and will have approximately $4.7 billion in assets, including $3.7 billion in loans, and $3.2 billion in deposits. Bank of Rhode Island’s 17 branches hold the top four and five deposit market positions in Providence and Kent counties, respectively. Bank of RI will preserve its brand and operate as a separate subsidiary of Brookline Bancorp.

Merrill W. Sherman, Bancorp Rhode Island’s Chief Executive Officer, commented, “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. “

Brookline Bancorp, headquartered in Brookline, Mass, birthplace of John F. Kennedy, operates as the bank holding company for Brookline Bank and First National Bank of Ipswich.

Sherman concluded, “With Brookline Bancorp, we will benefit from the scale and greater capital resources of a larger institution, enabling us to enhance efficiencies, invest more in customer service and fund increased business lending.”

Tags: BARI, buzz stocks, Financial Stocks, nasdaq

This entry was posted on Wednesday, April 20th, 2011 at 3:29 pm by Glenn and is filed under Financial Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.