Needham to acquire BankProv for $212M
Needham Bank's holding company, NB Bancorp, will acquire Massachusetts lender BankProv through a stock-and-cash deal valued at about $212 million, according to a news release Thursday.
Acquiring Amesbury-based BankProv through the merger with its holding company, Provident Bancorp, will give $5.2 billion-asset Needham an additional $1.6 billion in assets, $1.2 billion in deposits and $1.3 billion in gross loans.
BankProv, founded almost two centuries ago, also adds seven branches, giving the combined bank 18 branches across greater Boston and the adjoining area to the west, the North Shore in Massachusetts and southern New Hampshire. It's expected to be the sixth-largest Massachusetts-based bank in the Boston area based on deposit market share, Needham said.
When the transaction closes – expected to occur in the fourth quarter – 133-year-old Needham is set to have about $7.1 billion in assets, $5.9 billion in deposits and $6.1 billion in loans.
With the purchase, Needham expects to issue about 5.9 million shares of its common stock. The deal is valued at $211.8 million based on Needham's closing price from Wednesday of $16.62 per share.
As part of the deal, shareholders of Provident Bancorp, BankProv's holding company, can choose either 0.691 shares of Needham common stock or $13 in cash for each Provident share they own. The choice, though, is subject to allocation procedures ensuring half of Provident's shares of common stock will receive the stock consideration, the bank noted in the release.
'This merger allows Needham Bank to expand into attractive market areas on the Massachusetts North Shore and in Southern New Hampshire where we already have a concentration of business clients,' said Needham CEO Joseph P. Campanelli. 'While we have a strong record of organic growth, this merger allows us to further leverage the capital we raised in late 2023 and continue to grow and expand our existing client base with branches in new markets.'
With the acquisition, Joseph B. Reilly, Provident's CEO, will join Needham's board. Reilly was named co-CEO in December 2022, after former CEO Dave Mansfield's exit. BankProv, a month earlier, disclosed that its lending exposure to the crypto mining industry would result in a quarterly loss of about $28 million. The lender then distanced itself from the sector, no longer issuing loans secured by digital assets or cryptocurrency mining rigs.
Reilly became the bank's sole CEO in February 2024, according to a securities filing.
'Both organizations have a long history of serving our communities with a focus on 'relationships, agility and entrepreneurship' in banking,' Reilly said. 'Combined, we will offer an expanded product line of commercial and consumer products that will provide real value to our market areas. This merger benefits our customers and provides a good return for our stockholders.'
It's the latest in a string of Boston-area bank deals. Two were announced in December: Boston-based Berkshire Bank said it was acquiring Brookline for $1.1 billion, and Rockland, Massachusetts-based Independent Bank said it was acquiring Lowell-based Enterprise in a $562 million deal. And in April, Boston-based Eastern Bank said it will merge with Brockton, Massachusetts-based HarborOne in a $490 million transaction.
In December 2023, Needham raised nearly $410 million through an initial public offering connected to its conversion from mutual holding company to stock holding company.
The transaction dilutes Needham's tangible book value by about 6.1% and is expected to be earned back in less than three years, the release said.
Needham said it plans to continue to exceed regulatory minimums to be considered well-capitalized and maintain 'significant' liquidity after the merger, according to the release.
Recommended Reading
TD, BMO adjust their timelines for First Horizon, Bank of the West deals
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Astronomer's HR chief resigns after Coldplay 'kiss cam' scandal: A timeline of what's happened since she was caught with CEO in viral video
The executives have resigned while the band's streams have surged. They were caught canoodling at a Coldplay concert — and now they're out of jobs. Days after Astronomer announced the resignation of its married chief executive, Andy Byron, who was seen in a viral video with the head of human resources, Kristin Cabot, at the band's performance at Gillette Stadium in Foxboro, Mass., the tech startup confirmed Thursday that Cabot is no longer employed with the company. 'Kristin Cabot is no longer with Astronomer,' a company spokesperson said in a statement. 'She has resigned.' Below is a brief timeline of how we got here, from the viral Coldplay 'kiss cam' moment to the fallout online. July 16: The viral video During Coldplay's concert in Foxboro, lead singer Chris Martin has the camera operator scan the crowd for people to appear on the Jumbotron while he improvises song lyrics — a regular part of the band's recent performances. The camera then turns to the pair, who try to hide themselves when they realize they are being broadcast on the big screen. "Oh, look at these two,' Martin says. 'Either they're having an affair or they're just very shy." A fan-shot video of the intimate moment explodes when it was posted online, with internet sleuths quickly identifying the man and woman in the clip as Byron and Cabot. July 18: The fallout begins Two days after the concert, Astronomer announces that the company's board of directors has launched a 'formal investigation' into the matter, and that Byron has been placed on leave. Pete DeJoy, co-founder and chief product officer, is named interim CEO. 'Astronomer is committed to the values and culture that have guided us since our founding,' the company says in a statement. 'Our leaders are expected to set the standard in both conduct and accountability.' July 19: Byron resigns as CEO Astronomer announces that Byron has resigned from the company, and that DeJoy will continue to serve as interim CEO until a permanent replacement is found. The viral video continues to reverberate around the world, which the company acknowledged in its statement announcing Byron's resignation. 'Before this week, we were known as a pioneer in the DataOps space, helping data teams power everything from modern analytics to production AI,' the company says. 'While awareness of our company may have changed overnight, our product and our work for our customers have not.' That night, during Coldplay's first show since the infamous kiss-cam incident, Martin jokingly issues a warning to the crowd. 'We'd like to say hello to some of you in the crowd,' he says, laughing. 'How we're gonna do that is we're gonna use our cameras and put some of you on the big screen. So please, if you haven't done your makeup, do your makeup now.' July 20: Interim CEO addresses the controversy In a lengthy statement posted to his LinkedIn page, DeJoy says the New York-based company, which was founded in 2017, is embracing its newfound fame. 'The events of the past few days have received a level of media attention that few companies—let alone startups in our small corner of the data and AI world—ever encounter,' DeJoy writes. 'The spotlight has been unusual and surreal for our team and, while I would never have wished for it to happen like this, Astronomer is now a household name.' 'We're here because the mission is bigger than any one moment,' he adds. 'And our story is very much still being written.' July 24: Astromer confirms Cabot's resignation The company issues a brief statement to multiple media outlets confirming her ouster. Meanwhile, Coldplay is seeing a surge in interest on streaming platforms. According to Billboard data cited by the Hollywood Reporter, on-demand audio streams for Coldplay are up 25% since the Gillette Stadium show. 'In the preceding five days before the Boston concert, Coldplay had 28.7 million streams,' the magazine says. In the five days since, they had 35.7 million. Solve the daily Crossword
Los Angeles Times
17 minutes ago
- Los Angeles Times
Intel plans to shed thousands of workers
Intel Corp. is shedding thousands of workers and cutting expenses as its new CEO works to revive the fortunes of the struggling chipmaker that helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc. In a memo to employees Thursday, CEO Lip-Bu Tan said the Santa Clara, Calif. company plans to end the year with 75,000 'core' workers excluding subsidiaries, through layoffs and attrition. That's down from 99,500 core employees at the end of last year. The company previously announced a 15% workforce reduction. 'I know the past few months have not been easy. We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company,' Tan wrote. In addition, Intel will scrap previously planned projects in Germany and Poland and also move assembly and test operations in Costa Rica to larger sites in Vietnam and Malaysia. Costa Rica will remain a 'home to key engineering teams and corporate functions,' Tan said in the memo. In the U.S., the company said it will 'further' slow construction of a semiconductor plant in Ohio. Founded in 1968 at the start of the PC revolution, Intel missed the technological shift to mobile computing triggered by Apple's 2007 release of the iPhone, and it's lagged more nimble chipmakers. Intel's troubles have been magnified since the advent of artificial intelligence — a booming field where the chips made by once-smaller rival Nvidia have become tech's hottest commodity. The Santa Clara, California-based company's market cap was $98.71 billion as of the market close on Thursday, compared with Nvidia's $4.24 trillion. Tan said Intel is focusing on its 'core product portfolio' and artificial intelligence offerings to better serve customers. 'There are no more blank checks,' Tan wrote. 'Every investment must make economic sense.' For the second quarter, Intel reported a loss of $2.9 billion, or 67 cents per share, down from a loss of $1.6 billion, or 38 cents per share, a year earlier. Excluding one-time items, the company posted a loss of 10 cents a share. Revenue was flat at $12.9 billion. Analysts, on average, were expecting adjusted earnings of 1 cent per share on revenue of $12 billion, according to a poll by FactSet. Ortutay writes for the Associated Press.
Los Angeles Times
17 minutes ago
- Los Angeles Times
Lyft plans to launch Benteler autonomous shuttles in U.S. in 2026
Lyft Inc. is partnering with Benteler Group, an Austria-based manufacturer, to deploy autonomous shuttles in the US in late 2026, trying to catch up with rival Uber Technologies Inc. in offering driverless rides. The ride-sharing company will test Benteler's Holon urban electric shuttles for US customers next year, and may expand to thousands of vehicles in more markets globally. The driverless shuttles will initially be deployed in partnership with airports and cities, Lyft said Friday in a statement, dovetailing with the company's recent revival of pooled rides at US airports. Lyft said it will also work with a Benteler sister company, Benteler Trading International, to provide vehicle ownership and financing in the 'tens of millions of dollars' for future fleet expansion. Similar to the robotaxis developed by Inc.'s Zoox, the Holon shuttle is built without regular driving controls like a steering wheel, pedals and windshields. It also has inward-facing seats and can accommodate as many as nine seated and six standing passengers. Last November, Holon sought a temporary exemption from the US National Highway Traffic Safety Administration for some of its requirements for vehicle driver controls. The agency hasn't yet made a decision on the petition. According to Benteler's website, the Holon urban vehicle uses autonomous driving technology from Intel Corp.-backed Mobileye Global Inc. Lyft has a separate driverless partnership deal with Mobileye, which is scheduled to begin as soon as next year in Dallas. No car manufacturing partner has yet been announced for that partnership, and Lyft said Benteler isn't the automaker for that arrangement. Lyft is signing partnerships with autonomous carmakers and technology providers as it prepares to offer its first driverless rides in Atlanta later this year with May Mobility. Meanwhile, Uber already offers driverless rides in Phoenix, Austin and Atlanta in partnership with Alphabet Inc.'s Waymo, as well as in Abu Dhabi with WeRide Inc., with more launches planned globally over the next few years. The rideshare companies have moved away from trying to develop driverless technology in-house, and now want to use the real-time routing expertise it has honed over the years to help carmakers fill their driverless fleets with customers. Lyft said in the statement that it sees Benteler, a maker of automotive and steel products, as a partner with 'extensive production capabilities' that can support its driverless strategy with multiple vehicle types beyond shuttles. Holon's first US manufacturing facility for autonomous shuttles is expected to be completed in 2026 in Jacksonville, Florida, according to an announcement last year by Benteler. Lung writes for Bloomberg.
