Michael Collier is to take over as chairman and managing director of Bermuda Commercial Bank.

The announcement came yesterday, as the company revealed sweeping changes to the board of directors including the retirement of Clarence Terceira after 40 years as chairman.

Permanent Investments, which bought a controlling 54.5 percent stake in BCB last month, has seen its stake rise to 78.4 percent after the closing of its tender offer to buy all remaining shares.

BCB also announced that its board had approved the proposed amalgamation with First Bermuda Group (FBG), pending a special general meeting of shareholders, to take place soon.

"There are no redundancies anticipated as a result of this amalgamation," BCB said in yesterday's statement. "This amalgamation will bring a strong deposit base and mortgage portfolio to BCB and further extend both entities ability to provide a broader range of products and services to their clients."

Mr. Collier is the chairman of Permanent and had been expected to take the same role at BCB. However, his appointment as managing director suggests the former chief executive officer of Butterfield Bank will also be taking an active role in the management of the bank.

Retiring from the board are R. Anthony Jones, Jerome Dill, Greg Reid, and Delaey Robinson, as well as John Sainsbury, who retires as president.

BCB's new board of directors includes Mr. Collier, plus his fellow Permanent nominees Warren McLeland, who will serve as deputy chairman, and Eric Stobart.

Alongside them on the board will be FBG chairman and CEO Jeffrey Conyers, BCB chief operating officer Horst Finkbeiner, Jon Brunson, Chris Swan, Eugene Bean, and Nicholas Warren.

"We are deeply grateful for the service provided to the bank by our directors, particularly during the past several years while the bank sought a suitable buyer," Mr. Finkbeiner said. "We are especially appreciative of the support given by Dr. Terceira who was a founding member of the Bank, and by John Sainsbury who took an active role in the sale process."

Permanent said its $9.88 per share tender offer for all the shares it did not own resulted in 1,520,021 acceptances being received by the closing date, giving Permanent a total holding of 78.4 percent. The terms of the amalgamation with FBG will result in a final total holding by Permanent of BCB shares reduced to approximately 66 percent.

Permanent has stated its intention to keep BCB as a publicly listed company on the Bermuda Stock Exchange.