Merger Update

By Jon Evans President & CEO, ACBB

I wanted to provide everyone with an update on our merger with Bankers’ Bank Northeast (BBN) and what it will mean for our shareholders and customers.

On October 19th, BBN shareholders formally approved the merger which is a stock-stock transaction with ACBB paying a slight premium above book value.  The merger still requires regulatory approval with a tentative closing date scheduled for November 30th.

Once the transaction is finalized, our combined resources will result in an $800 million asset bankers’ bank, operating in eleven states throughout the Mid-Atlantic States and New England.  Four Board members from BBN will be joining the ACBB Board of Directors. We will operate out of three locations. Our office in Camp Hill, Pennsylvania will remain the corporate headquarters for ACBB while Glastonbury, Connecticut will become a regional office with relationship management, business and product development responsibilities as well as operational capabilities. BITS will continue to operate out of Newark, New Jersey, where it provides technology and communication services to over 100 community financial institutions.

Our combined Executive Management Team will be:

Jon Evans – President & Chief Executive Officer
Craig Howie – Senior Executive Vice President
Laura Gibboney – Chief Operating Officer
William Sayre – Chief Credit Officer
Amy Braun – Chief Financial Officer
Brian Good – Chief Sales Officer
John Davey – Chief Business Development Officer
Jerry Murphy – Chief Executive Officer BITS
Regina Malloy – Chief Risk Officer

The Executive Management Team will provide us the talent and vision to grow your bankers’ bank into the future with a mission of helping you compete more effectively.  While we remain committed to the traditional correspondent services, we will also focus on meeting the future needs of community financial institutions.

The transaction scale of our merged companies will boost our aggregation capability and our ability to negotiate better pricing through additional volume. This will become even more important in a faster payments world. 

As in most mergers, there are operational efficiencies and cost-savings to be realized which will provide us greater capacity to serve you, our customers. A significant portion of these savings will be used to support our product development effort. Our focus is on  technology solutions that leverage opportunities in the FinTech world and keep pace with the “faster payments” trend.  

Two new services which will be available immediately upon closing are Advisory Services and the Bankers Bank Network loan portal, also referred to as BBN.bank.  Advisory Services provide credit management, strategic planning, process improvement and expert witness services. 

Credit services include the following:

• Loan Review
• Outsourced Annual Reviews
• ALLL Analysis & Validation
• Credit Training
• Loan Acquisition / Sales Due Diligence
• Loan Workouts

The Bankers Bank Network loan portal was just rolled out by BBN. It is designed to be a low-cost alternative for selling and buying all types of loans.  The portal will include loans of a variety of asset classes allowing you to manage your balance sheet more efficiently as well as diversifying your loan portfolios.  In a highly secure environment, you will have the ability to create your own private trading network or restrict your competitors from viewing loans you’ve posted for sale.

More information on both of these products will be available on our website, acbb.com, once the merger is finalized.

BBN and ACBB run on the same core and customer communications platform, however the merged bank will operate two separate systems until April of 2018.  This was the soonest date our vendors could accommodate fully consolidating our operations.

For those BBN client banks that use Excess Balance Account services, Reserve Requirement Pass-Through arrangements, and settlement of FRB Discount Window borrowings through their BBN account, you will need to update your Federal Reserve Bank paperwork to reflect the change to utilizing ACBB’s FRB accounts for these services.  Settlement of all other FRB services will remain the same at this time.  BBN’s client services team will be reaching out to those banks affected with new paperwork and instructions.  Please note:  This paperwork must be completed prior to the legal merger date!!!  

Between the closing of the merger and April of next year, we will keep you posted on any changes to our products and services, operations or processes and procedures that will impact you.  The most efficient way of keeping everyone posted is a special section, called Merger Announcement, that we’ve created on our website www.acbb.com .  The appropriate personnel and contact information can also be found here.

While all mergers dictate change in the respective organizations, the greatest impact is felt by employees. Staffing redundancies necessitate the elimination of certain positions that will result in solid banking professionals transitioning out of the organization. These individuals with a high-level of expertise and knowledge and years of service in the industry would be a great additional to any community financial institution. We are grateful to all of our employees, from both ACBB and BBN, for their dedication and commitment to you, our customers, and their full cooperation during this time of transition. 

The Board of Directors, Management and employees of ACBB are excited about the opportunities ahead of us and welcome all of the community financial institutions in the Northeast market to the ACBB family.  All of us are striving to increase our value to all of you.