I want to provide an update on our merger with Atlantic Community Bancshares, Inc. (ACBI). On October 19th, BBN shareholders approved the Agreement and Plan of Merger with ACBI and its banking subsidiary, Atlantic Community Bankers Bank (ACBB). Regulatory applications have been filed with the Federal Reserve Bank of Philadelphia and the State of Connecticut Department of Banking. We expect to receive a decision by the second week of November and, if timing is as expected, the merger will close on November 30th.
Upon completion, ACBB will be an $800 million, cooperatively owned bankers’ bank operating in eleven states throughout the Mid-Atlantic and New England. Our three locations will include headquarters in Camp Hill, PA, a regional office in Glastonbury, CT with responsibility for relationship management, product development and specific operations and an office in Newark, NJ for technology and communications subsidiary, BITS. Four Board members from BBN will be added to the ACBI Board of Directors. Joining me will be Stephen Lewis, President and CEO of Thomaston Savings Bank, Robert Terravecchia, Jr. CPA, President and CEO of Equitable Bank and Julieann Thurlow, President and CEO of Reading Cooperative Bank.
For BBN customers, there will be little noticeable change immediately after closing. The current STARS system will remain in place for all transactions, reporting and communication and BBN staff members will continue providing service. For any clients who have an EBA account or manage their pass-through reserves or settle Discount Window borrowings with us, we will need you to complete new FRB Appendix B and Appendix A forms, re-designating the account management through the Federal Reserve Bank of Philadelphia. For those affected, BBN Client Services will be reaching out shortly to get that process started.
After closing, ACBB will be consolidating versions of the core and customer communication systems currently in use by both banks. Fortunately, we both use the same systems although in slightly different ways – to be clear, BBN’s STARS system and ACBB’s XNET are essentially the same system. The final conversion is scheduled for April, 2018 and we are not expecting any issues although there may be some changes as we strive to create efficiencies and best practices. Naturally, we will keep you posted as to any potential impact.
While all mergers result in some change in the respective organizations, the greatest impact is felt by employees. I am very happy to report that a large number of BBN professionals will be staying on in the merged bank. However, there will be some staffing redundancies leading to the elimination of certain positions, meaning that some solid banking professionals will be transitioning out of the organization. We owe a debt of gratitude to all our employees including these individuals, each with a high-level of expertise and years of service in the industry. And I would be remiss if I did not say that every one of these departing individuals has contributed to our success over the years and could be a great addition to any community financial institution.
On behalf of BBN’s Board of Directors, management and staff, we are excited about the opportunities that this merger will present you, our valued clients and shareholders. We look forward to visiting with you in-person in the near future to introduce our new team members and to share with you the benefits and vision of a significantly larger but still cooperatively owned bankers’ bank.
Owned and managed by community bankers for community bankers, ACBB has been serving financial institutions since 1983. ACBB specializes in helping community banks remain profitable and competitive. The bank provides correspondent services to over 300 shareholder banks in addition to many non-shareholder banks throughout the Mid-Atlantic and Northeastern regions offering both credit and non-credit services. ACBB works with community banks of all sizes, including regional financial institutions. ACBB is headquartered in Camp Hill, Pennsylvania, with a branch office in Newark, New Jersey, where their technology subsidiary, ACBB-BITS, is headquartered. For more information about ACBB visit www.acbb.com.
BBN was formed in 1998 as a Connecticut chartered banker’s bank. BBN provides leading edge products, services and technology for community bankers — all with unparalleled client service. The bank is dedicated to delivering high quality and competitively-priced solutions to community financial institutions. For more information about BBN visit www.bbnfirst.com.