Pittsfield-based Berkshire Bank, the subsidiary of Berkshire Hills Bancorp, will acquire 20 retail bank branches in New York markets from Bank of America for a total of $14.4 million.
The bank recently entered into a purchase and assumption agreement, announced today. The acquired branches have approximately $640 million in total deposits and $5 million in loans, and Berkshire Bank said in a statement that it plans to offer continued employment to branch associates who are on staff when the acquisition is completed.
"This transaction meets our financial criteria and is expected to contribute to our long-term strategic and financial goals. 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," CEO Michael Daly said in a statement.
Those 20 branches will increase Berkshire’s total branch count to 94 branches across its footprint and will more than double the $5.2 billion bank’s New York branch count to 37.
The acquisition, which is expected to be finished during the first quarter of 2014, is subject to regulatory approval from the FDIC and the Commonwealth of Massachusetts, as well as the satisfaction of customary closing conditions.
