ALERT – Impact of COVID-19 on Performance-Based Compensation – Key Considerations

December 21, 2020

To our clients and friends:

For many banks, the impact of COVID-19 on the financial performance has reduced or eliminated entirely the achievement of the 2020 performance-based compensation goals established before the breakout of the pandemic. As 2020 comes to an end, banks will need to evaluate the impact of COVID-19 on their performance-based compensation, specifically whether to adjust or eliminate performance goals to provide more realistic incentives for their executive officers and employees.

Our Alert, which is available here, provides an overview of key considerations for adjusting or eliminating performance goals in consideration of the effects of COVID-19.

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Luse Gorman is Legal Counsel to Berkshire Bank in its Proposed Sale of Branches to Investors Bank

December 7, 2020

On December 2, 2020, Berkshire Bank, Boston, Massachusetts, entered into an agreement to sell its Mid-Atlantic branches, consisting of six offices in New Jersey and two in Pennsylvania, to Investors Bank, Short Hills, New Jersey, subject to customary regulatory approvals.

Investors Bank, which is the wholly-owned subsidiary of Investors Bancorp, Inc., operates 155 branches located throughout New Jersey and New York, with approximately $26.6 billion in assets.

Berkshire Bank, which is the wholly-owned subsidiary of Berkshire Hills Bancorp, Inc., operates 130 banking offices in seven Northeastern states, with approximately $12.6 billion in assets.

Luse Gorman served as legal counsel to Berkshire Bank in the transaction. The Luse Gorman team consisted of Marc Levy, Lawrence Spaccasi, Max Seltzer and Ellie Cook.

Luse Gorman has served as counsel on more than 100 financial institution mergers and acquisitions during the past five years, which is more than any other legal advisor during that time period. To learn more about our mergers and acquisitions practice, please visit our website.

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Luse Gorman Served as Legal Counsel to BV Financial, Inc. in its Completed Acquisition of Delmarva Bancshares, Inc.

November 5, 2020

On October 31, 2020, BV Financial, Inc., Baltimore, Maryland, the holding company for BayVanguard Bank, completed its acquisition of Delmarva Bancshares, Inc., Cambridge, Maryland, and its wholly owned subsidiary, 1880 Bank.

Delmarva Bancshares shareholders received $8.90 in cash per share of Delmarva Bancshares common and preferred stock.

BayVanguard Bank has approximately $800 million in total assets and operates ten branches in the Baltimore metropolitan area and six banking offices in the Eastern Shore of Maryland and Delmarva Peninsula.

Luse Gorman served as legal counsel to BV Financial in the transaction. The Luse Gorman team consisted of Scott A. Brown, Thomas P. Hutton and Zachary Davis.

Luse Gorman has served as counsel on more than 100 financial institution mergers and acquisitions during the past five years, which is more than any other legal advisor during that time period. To learn more about our mergers and acquisitions practice, please visit our website.

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