- Enhances efficiency and profitability of the overall branch
network
- Strengthens focus in core New
York markets
- Combined branch and securities sale is neutral to full year
2024 earnings outlook
BOSTON, March 4,
2024 /PRNewswire/ -- Berkshire Hills Bancorp,
Inc. (NYSE: BHLB) announced today that its wholly owned subsidiary
Berkshire Bank has entered into definitive agreements with three
buyers to sell 10 of its upstate and eastern New York branches,
consisting of eight offices in Albany, Saratoga, Schenectady and Columbia counties, one office in Whitehall and one office in East Syracuse.
The sales include approximately $485.5
million in deposits, $60.5
million of related residential mortgage and consumer loans
along with all branch premises and equipment. The transactions
exclude Berkshire's commercial
banking business.
Hudson Valley Credit Union is
purchasing eight locations in Albany, Saratoga, Schenectady, and Columbia counties, Glens Falls National Bank
and Trust Company is purchasing one location in Whitehall and Pathfinder Bank is purchasing
one location in East Syracuse. The
buyers intend to offer employment to all associated staff. The
sales are targeted for completion by the end of the third quarter
of 2024 subject to customary regulatory approvals and associated
system conversions. They reduce Berkshire's overall branch footprint from 96
to 86 locations.
CEO Nitin Mhatre stated, "Our
announcement today is another step in our continued efforts to
create efficiencies in our branch network so we can continue to
invest in our bankers and client experience to further improve our
long-term profitability. The proposed sales will concentrate our
overall geographic footprint and lower our expense run rate, while
strengthening focus in our core New
York markets. The branch sales combined with a future
securities sale will not materially increase borrowings and will be
effectively neutral to full year 2024 earnings outlook."
Berkshire remains committed to
the important core New York
markets where it will continue to operate 16 branches. Berkshire clients at its remaining locations
will continue to work with the same bankers as they did prior to
the announcement.
"We continue to execute on opportunities to create efficiencies
in our franchise," stated CFO David
Rosato. "These transactions allow us to exit these branches
without incurring severance or real estate costs while reducing
expenses and contributing positively to our long-term
profitability."
Berkshire's financial advisor
for the branch sale was RBC Capital Markets LLC and legal counsel
was provided by Luse Gorman, PC.
ABOUT BERKSHIRE HILLS
BANCORP
Berkshire Hills Bancorp, Inc. (NYSE: BHLB) is the
parent company of Berkshire Bank, a relationship-driven,
community-focused bank that delivers industry-leading financial
expertise to clients in New England and New York. With $12.4
billion in assets and 96 branches, Berkshire is headquartered in Boston and provides a full suite of tailored
banking solutions through its Commercial Banking, Retail Banking,
Consumer Lending, Private Banking and Wealth Management divisions.
For more than 175 years, the Bank has delivered strength, stability
and trusted advice to empower the financial potential of its
clients and communities. Newsweek named Berkshire one of America's Most Trusted
Companies and one of America's Best Regional Banks. To learn more
about Berkshire Hills Bancorp visit ir.berkshirebank.com.
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," "remain," "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 is 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. 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.
Investor Contact
Kevin
Conn, Investor Relations
617.641.9206
KAConn@berkshirebank.com
Media Contact
Alicia
Jacobs, Corporate Communications
413.242.6540
Ajacobs1@berkshirebank.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/berkshire-hills-bancorp-to-sell-select-upstate-and-eastern-new-york-branches-302078914.html
SOURCE Berkshire Hills Bancorp, Inc.