Berkshire Hills Bancorp Inc. has agreed to acquire Rome Bancorp Inc. for about $74 million in cash and stock, as the Massachusetts bank strengthens its presence in New York.
Rome has five branches and had about $330 million of assets as of June 30.
Berkshire — which has 46 locations in Massachusetts, New York and Vermont — has been growing its business in the Utica and Syracuse markets, which have a combined population of about 1 million.
The deal's terms are for 70% of the stock to be exchanged for Berkshire shares at a rate of 0.5658 share for each Rome share. The other 30% will be bought for $11.25 each. Rome closed Monday at $9.49 — it hasn't traded above $11 in two years — while Berkshire finished at $18.78.
Berkshire's shares fell 2% in recent trading to $18.40 while Rome's rose 7.8% to $10.23.
Berkshire expects the deal to add 9 cents to 2011 per-share earnings, excluding acquisition-related charges. Analysts' average estimate were for the company to earn $1.29 a share, according to Thomson Reuters.
Rome's earnings rose in the latest quarter even though loan-loss provisions doubled and charge-offs remain "low." Berkshire has been recording steady growth.
