Berkshire Bank parent to buy Hampden Bancorp
The parent company of Berkshire Bank will acquire Springfield-based Hampden Bancorp in an all-stock deal valued at about $109 million, the companies announced today.
Berkshire Hills Bancorp, based in Pittsfield, has been expanding over the last few years, including a 2012 move into Westborough, where it has a branch on the westbound side of Route 9.
Hampden operates 10 branches in the greater Springfield area and reported $508 million in net loans and $490 million in deposits as of Sept. 30, according to a statement from Berkshire.
Berkshire’s president and CEO, Michael P. Daly, said the acquisition “will create a strong platform for serving our combined customers, while producing attractive returns for both our existing shareholders and the new shareholders from Hampden.” He said the deal complements expansion plans in Central Massachusetts and Hartford, which he said is the second-largest market in New England.
Berkshire operates 11 branches with $627 million in deposits in that market. The Hampden acquisition will raise its market cap to about $740 million, with 100 branches across New England and New York.
The deal is subject to the approval of Hampden shareholders, as well as state and federal regulators, according to Berkshire, with completion of the deal expected in the second quarter of 2015.
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