BOSTON, Dec. 2, 2020 /PRNewswire/ -- Berkshire Hills
Bancorp, Inc. (NYSE: BHLB) today announced that its wholly
owned subsidiary Berkshire Bank has entered into an agreement with
Investors Bank of Short Hills, New
Jersey, subject to customary regulatory approvals, to sell
its Mid-Atlantic branches, consisting of six offices in
New Jersey and two in Pennsylvania. In addition, the Bank plans to
consolidate 16 full-service branches. Following the targeted
completion of these initiatives in the first half of 2021, the bank
will operate a total of 106 branches across Massachusetts, Connecticut, Rhode
Island, Vermont and
New York - reducing the overall
branch footprint by 18%.
Acting CEO Sean Gray stated,
"These announcements are in alignment with Berkshire's strategic shift toward improving
profitability by refocusing on our core operations and operating
efficiency. Over the last decade, we have executed the
consolidation or sale of 40 branches with a high rate of customer
retention supported by our MyBanker professionals who provide
personalized banking solutions and concierge service. Our
optimization plan is consistent with customers' preferences and
adoption of digital banking channels and our commitment to
enhancing those channels as a 21st century community
bank."
Mid-Atlantic Branch Sale
Berkshire Bank has entered
into an agreement to sell its eight Mid-Atlantic branches to
Investors Bank of Short Hills, New
Jersey, subject to customary regulatory approvals. The
transfer is targeted for completion in the first half of 2021. The
transfer includes deposit accounts with a total current approximate
balance of $639 million and loans
with a total current approximate balance of $308 million. The buyer has agreed to pay a
premium equal to 3.0% of the final deposit balance transferred. The
sale includes all branch premises and equipment, and the agreement
provides that the buyer intends to offer employment to all
associated staff. Berkshire
expects to complete the net transfer with funds from short-term
investments. The branch sale will have no effect on
Berkshire's Mid-Atlantic
specialized commercial lending operations, including SBA lending at
its 44 Business Capital Division and its asset-based lending
relationships. Berkshire's
financial advisor for the branch sale was Piper Sandler & Co. and legal counsel was
provided by Luse Gorman,
PC.
Branch Optimization
Berkshire plans to consolidate 16 branch
offices in its New England/New
York footprint, subject to customary regulatory approvals.
These branches have total current deposit balances approximating
$568 million. The consolidations are
expected to begin in January and to be completed by the middle of
2021. Gray added, "Extensive review has shown increasing
digital channel usage by our customers. The Bank is
proactively communicating its decision to customers who could be
impacted by a branch office closure and is making introductions to
team members at other branches and to our MyBanker team to ensure a
seamless transition. We are also working closely with our team
members at each of the branches to review career opportunities
within the Bank and transition them to other positions. We have a
strong track record of retaining customers and team members who
have previously been impacted by a consolidation."
Mr. Gray concluded, "I'm also pleased to report the Bank is in
the process of finalizing plans to open a new commercial banking
office in Providence, Rhode Island
in 2021 to strengthen the southeast New England operations we
acquired in 2019. The combination of these initiatives is targeted
to optimize our branch network, improve our business focus, and
support our core profitability."
ABOUT BERKSHIRE HILLS
BANCORP
Berkshire Hills Bancorp is the parent of Berkshire
Bank which is transforming into a 21st century community
bank pursuing purpose-driven performance based on its Be FIRST
corporate responsibility culture. Headquartered in Boston, Berkshire operates 130 banking offices in
seven Northeastern states, with approximately $12.6 billion in assets.
FORWARD-LOOKING STATEMENTS
This document contains
"forward-looking statements" within the meaning of section 27A of
the Securities Act of 1933, as amended, and section 21E of the
Securities Exchange Act of 1934, as amended. You can identify these
statements from the use of the words "may," "will," "should,"
"could," "would," "plan," "potential," "estimate," "project,"
"believe," "intend," "anticipate," "expect," "target" and similar
expressions. There are many factors that could cause actual results
to differ significantly from expectations described in the
forward-looking statements. For a discussion of such factors,
please see Berkshire's most recent
reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission and available on the SEC's website at
www.sec.gov.
The branch sale and consolidation are subject to regulatory
approval and other conditions. Targeted financial benefits
are subject to uncertainty and may be affected or offset by other
conditions related to the Company's operations. Further,
given its ongoing and dynamic nature, it is difficult to predict
what continued effects the COVID-19 pandemic will have on our
business and results of operations. The pandemic and the related
local and national economic disruption may result in a continued
decline in demand for our products and services; increased levels
of loan delinquencies, problem assets and foreclosures; an increase
in our allowance for loan losses; a decline in the value of loan
collateral, including real estate; a greater decline in the yield
on our interest-earning assets than the decline in the cost of our
interest-bearing liabilities; and increased cybersecurity risks, as
employees increasingly work remotely.
Accordingly, you should not place undue reliance on
forward-looking statements, which reflect our expectations only as
of the date of this document. Berkshire does not undertake any obligation to
update forward-looking statements.
CONTACT:
Investor Relations Contact
David Gonci; Capital Markets
Director; 413-281-1973
Media Contacts:
John Lovallo
Email: jlovallo@levick.com
Tel: (917) 612-8419
Cate Cronin
Email: ccronin@levick.com
Tel: (202) 738-7302
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SOURCE Berkshire Hills Bancorp, Inc.