EAST SYRACUSE, N.Y., Aug. 9, 2012 (GLOBE NEWSWIRE) -- Beacon Federal Bancorp, Inc. (the "Company") (Nasdaq:BFED), the holding company for Beacon Federal (the "Bank"), announced today net income for the quarter ended June 30, 2012 of $666,000, or $0.11 per diluted share, compared to $1.7 million, or $0.28 per diluted share for the quarter ended June 30, 2011.
For the six months ended June 30, 2012, net income was $1.9 million, or $0.32 per diluted share, compared to $3.3 million, or $0.52 per diluted share, for the same period in the prior year.
Ross J. Prossner, President and CEO of the Company said, "Due in part to the continuing strained economic conditions in our markets combined with the slowing of commercial lending opportunities, earnings results were not as strong as projected. We continue to improve our cost of funds and beginning in June a portion of our high priced borrowings matured."On May 31, 2012, Beacon Federal Bancorp, Inc. (the "Company" or "Beacon Federal Bancorp") and Berkshire Hills Bancorp, Inc. ("Berkshire" or "Berkshire Hills Bancorp") jointly announced the execution of a definitive agreement whereby Berkshire will acquire Beacon Federal Bancorp in a 50% stock and 50% cash transaction. As a result of the merger, Beacon Federal Bancorp's shareholders will have the right to elect to receive $20.50 in cash or 0.9200 shares of Berkshire Hills Bancorp common stock in exchange for each outstanding share of Beacon Federal Bancorp, as outlined above. The transaction is expected to be completed during the fourth quarter of 2012, subject to the receipt of regulatory approvals and approval by the shareholders of Beacon Federal Bancorp. Prossner states, "Our team continues to work towards the previously announced acquisition planned for the fourth quarter of Beacon Federal by Berkshire Hills Bank and the value that the transaction represents to our shareholders."