Worcester Business Journal

4 Worcester Business Journal | May 29, 2017 | wbjournal.com C E N T R A L M AS S I N B R I E F C ommerce Bank branches in Worcester will keep their name and branding even after they are purchased by Berkshire Hills Bancorp, the parent company of Berkshire Bank. Berkshire said Commerce, which was founded in 1955, is Worcester's home- town bank, so keeping the name in tact is important. "They have built up a good reputa- tion and solid customer following," said Allison O'Rourke, executive vice presi- dent of Berkshire Bank. Pittsfield-based Berkshire announced May 22 its acquisition of Commerce for $209 million in stock. The company is looking to grow its presence in Central and Eastern Massachusetts, and will move its headquarters to Boston. Its total assets are expected to be $12 bil- lion, including $2.2 billion in acquired assets from Commerce, making it the largest regional bank based in Boston. Eying the Worcester market But the fast-growing Worcester mar- ket is also attractive, O'Rourke said. "Worcester is the second largest city in New England, and the growth has been outpacing most of the region for several years now," she said. "We see tre- mendous opportunity to bring our products and services to this market to continue to help fuel that growth." Commerce, which has 13 branches in the Worcester area and three in Boston, reported $1.5 billion in loans and $2 billion in deposits as of March 31. Outstanding shares of Commerce's common stock will be exchanged for 0.93 shares of Berkshire Hills common V E R B A T I M No more First Night "A lot of good things are happening throughout Worcester and in the downtown. A community celebration to mark the beginning of the New Year should be one of them." Worcester Regional Chamber of Commerce President and CEO Timothy Murray, on the dissolution of First Night Worcester, Inc., the organizer of Worcester's annual New Year's Eve arts festival At-home production "The biggest misconception about manufacturing in the United States is the perception the per-unit cost of a domestically produced item is much higher than if it were manufactured abroad in places like China or India, for example." Ariel Rodriguez of Mercury Wire in Spencer, on the cost of U.S. manufacturing Quenched thirst "I want to thank our residents and water users for stepping up and practicing wise water usage throughout the past year. Let's continue to conserve as we move through the coming months." Worcester City Manager Ed Augustus, announcing the end of the city's drought Commerce Bank to keep name following acquisition BY LAURA FINALDI Worcester Business Journal Staff Writer stock and comprise 14 percent of Berkshire ownership stock. Duddie's new role In 1993, Commerce's Worcester roots deepened when David "Duddie" Massad became the bank's majority shareholder. Once the transaction is complete, two Commerce board members will join Berkshire's board: Pamela Massad, a lawyer at Worcester-based Fletcher Tilton and Duddie Massad's daughter; and David Brunelle, managing director at Worcester financial advisory firm North Point Wealth Management. As part of the merger, Duddie Massad agreed to refrain from buying more than a 9.9-percent ownership stake in Berkshire stock or selling Berkshire stock without the company's approval, according to a filing with the Securities & Exchange Commission. The reason for that agreement is that the Federal Reserve has issued policy statements on shareholders owning more than 9.9 percent of a bank stock, said O'Rourke. Such lock-up agreements are typical of any acquisition resulting in large individual shareholders. "Limiting Duddie's ownership to below 10 percent, eases the regulatory burden on him and us," O'Rourke said. Commerce has 223 employees. Berkshire made no mention of layoffs but said in a presentation to investors the merger synergies will create a 20-percent savings in Commerce expenses. The merger, subject to regulatory approvals, is on target to be finalized in six to nine months. W David "Duddie" Massad (second from left) purchase a majority stake in Commerce Bank in 1993. With the bank's still strong ties to the Worcester community, its new owner plans to keep its brand for branches in the city.

• Cover