Berkshire Bank To Acquire 20 N.Y. Branches
Making a major step in its expansion plans, Pittsfield-based Berkshire Bank announced that it will purchase 20 retail branches from Bank of America with $640 million in deposits and $5 million in loans.
The acquired branches are all in New York, and Berkshire said in a statement that they are within or near the markets it already serves.
The news comes at a time when the bank, a subsidiary of Berkshire Hills Bancorp Inc., is also growing its presence in Massachusetts with construction of a new branch on the Northborough-Westborough line on Route 9 which it expects to open later this year.
Berkshire said the acquisition is subject to regulatory approval from the FDIC and the state of Massachusetts and is expected to be completed in the first quarter of 2014. Employees of the acquired branches are expected to retain employment with Berkshire.
The acquisitions will more than double Berkshire’s New York presence to 37 branches and give it a total footprint of 94 branches in the Northeast. Berkshire has $5.2 billion in assets.
“This transaction meets our financial criteria and is expected to contribute to our long-term strategic and financial goals,” said Berkshire CEO Michael Daly. “We plan to utilize the acquired deposit funds to replace certain existing higher-cost deposits and borrowings, along with providing additional core funding to support future growth. “
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