Sale Of Bermuda Commercial Bank Announced - Bernews

[Updated] Noting that it is subject to various regulatory approvals, Permanent Capital announced the purchase of Bermuda Commercial Bank, saying they “plan to grow BCB into a full-service commercial bank focused on adding meaningful value.”

Somers noted that the transaction is “subject to a number of conditions including regulatory and Governmental approvals and is expected to close in the first half of 2019.”

Somers Statement

In a filing with the Bermuda Stock Exchange, Somers Limited said they are “pleased to announce that it has entered into an agreement and plan of merger which will result in the sale of the entire issued share capital of Bermuda Commercial Bank Limited to the investment company, Permanent Capital Holdings Limited and entities affiliated with it.

“The transaction is subject to a number of conditions including regulatory and Governmental approvals and is expected to close in the first half of 2019.”

Warren McLeland, Somers’ Chairman commented, “BCB has been owned by the group since 2010 and in that period, we have invested significantly in the Bank’s infrastructure and staff. BCB, led by its current management team, is now well positioned for the future. We will update shareholders once the consideration has been finalized and the sale has completed.”

Alan Gilbertson, Chairman of Bermuda Commercial Bank commented, “We are encouraged by Permanent Capital Holdings Limited’s commitment to Bermuda and look forward to working with them, when the acquisition is complete. I would also like to thank Somers Limited for their commitment and support to BCB over the past 8 years.”

Permanent Capital Statement

“Permanent Capital, a private New York-based socially oriented investor in financial services companies, announced today the purchase of Bermuda Commercial Bank [BCB], subject to various regulatory approvals including from the Bermuda Monetary Authority,” the company said.

“Under the stewardship of Permanent Capital, the bank will provide market-changing products such as competitive lending rates; bespoke services for key industries like reinsurance, and improved access through better technology including mobile banking. Throughout these endeavours BCB will continue to meet the BMA’s globally respected regulatory standards.”

“Permanent Capital’s acquisition of BCB is not simply an investment in a bank, but rather a commitment to the whole Bermuda community.” said Lewis Katz, a Managing Partner of Permanent Capital. “We plan to grow BCB into a full-service commercial bank focused on adding meaningful value to the Island’s businesses and local economy – the bank the people of Bermuda deserve.”

“We greatly value the guidance of the Bermuda Monetary Authority and support shown by the Ministry of Finance throughout this process and share a mutual ambition to grow Bermuda’s financial industry and economy” said Logan Sugarman, a Managing Partner in Permanent Capital. “Although BCB may currently be a small bank, it is uniquely positioned to change the status quo of Bermuda banking for the better.”

“Permanent Capital’s decision to purchase BCB is a clear endorsement of Bermuda as a jurisdiction of choice to buy and build a business in the financial services industry,” said Minister of Finance Curtis Dickinson. “Their commitment to invest in people, products and services will be welcomed by Bermuda’s consumer, corporate and government sectors.”.

“BCB is an established institution with an exceptional team of employees, a strong balance sheet, commitment to customer service and industry-leading technology infrastructure,” the statement from Permanent Capital said.

“While maintaining continuity for both customers and employees, Permanent Capital’s priority is to build on the existing core strengths, improving BCB’s product offerings, expanding its services to a wider customer base, and growing jobs on Island.”

BCB CEO Hubert Esperon welcomed the news today, stating, “I look forward to the Permanent Capital team joining our banking family. I am excited about their vision and the opportunities they have planned for BCB, which will transform the island’s financial landscape as we build a better bank for Bermuda. BCB is celebrating its 50th anniversary in 2019 and this represents a new chapter in its history, better yet, it’s future!”

Update 12.40pm: As there has been talk about banking for fintech, we asked if the new owners plan to offer banking for the fintech industry, and a spokesperson said, “The Bank is open to banking any industry as long as it meets all Bermuda regulatory requirements. To be clear, the bank will not be handling or banking cryptocurrencies.”