OSWEGO, N.Y. - Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank, has entered into an agreement to purchase a branch from Berkshire Bank situated in East Syracuse, New York. The deal includes approximately $198 million in deposits and certain loans totaling around $32 million.
The acquisition, which is pending regulatory approval and other customary closing conditions, is anticipated to be finalized by the end of the third quarter of 2024. Upon completion, the branch at 6611 Manlius Center Road will transition to Pathfinder Bank's operations.
Pathfinder Bank's President and CEO, James A. Dowd, expressed enthusiasm for the strategic growth opportunity, citing the branch's location and potential for expanding the bank's market presence. The move is expected to bolster Pathfinder's financial performance, with the addition of nearly $200 million in low-cost deposits enhancing the bank's liquidity and balance sheet flexibility.
Post-acquisition, Pathfinder's total assets are projected to reach approximately $1.7 billion. The bank expects the acquisition to be accretive to earnings per share and yield a favorable internal rate of return.
Dowd highlighted the shared community-focused values between Pathfinder and Berkshire, emphasizing the commitment to a smooth transition for both customers and staff of the East Syracuse branch. All current branch employees are expected to be retained.
Pathfinder Bank, established in 1859, operates 11 full-service offices in Oswego and Onondaga Counties and a loan production office in Utica. The bank prides itself on being a trusted local financial institution with a community-centric approach.
Janney Montgomery Scott LLC and Troutman Pepper Hamilton Sanders LLP are serving as financial and legal advisors, respectively, to Pathfinder in this transaction.
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