NEW YORK - Berkshire Bancorp Inc. has agreed to buy $187 million-asset GSB Financial Corp. in Goshen, N.Y., for $41.8 million, a deal that would expand Berkshire outside New York City and double it assets to nearly $400 million.
GSB is the parent of Goshen Savings Bank. The thrift operates two branches in Goshen, which is about 70 miles from New York. It also has a branch in Harriman, N.Y., and is expected to open one in Bloomingburg, N.Y., this year. Berkshire has its headquarters and a branch on Madison Avenue in Manhattan. It also operates a branch in Brooklyn and plans to open a second Manhattan branch this year. GSB shareholders have the option of being paid in cash or stock.
Berkshire said it would pay either $20.75 in cash or exchange 0.6027 of a share for each share of GSB stock.
The deal was announced this week and is expected to close in the fourth quarter.
