Berkshire Hills Bancorp, Brookline Bancorp announce $1.1bn merger of equals

Berkshire Hills Bancorp, Inc., the parent company of Berkshire Bank, and Brookline Bancorp, Inc., the parent company of Brookline Bank, Bank Rhode Island, and PCSB Bank, have unveiled a definitive agreement to merge in a $1.1 billion all-stock transaction. The merger of equals is set to create a premier Northeast banking franchise with enhanced scale, operational strength, and deep community ties.

Under the terms of the deal, Brookline shareholders will receive 0.42 Berkshire shares for each Brookline share, valuing Brookline’s common stock at $12.68 per share, based on Berkshire’s December 13, 2024 closing price of $30.20. The combined entity will boast $24 billion in total assets, 148 branches, and a top-10 market share in several Northeast regions.

Why Is the Merger Significant for Northeast Banking?

The strategic decision to merge positions Berkshire and Brookline as a dominant force in Northeast banking, offering the scale and efficiency needed to compete in a dynamic financial landscape. Both institutions bring longstanding legacies of community service, customer focus, and operational excellence, values that will be further amplified in the new entity.

Berkshire Hills Bancorp CEO Nitin J. Mhatre highlighted the transformational nature of the merger, stating that the combined bank will deliver “exceptional client experiences” and create enhanced shareholder value. Brookline Bancorp Chairman and CEO Paul A. Perrault echoed this sentiment, emphasizing the alignment of two “complementary cultures” and the opportunity to strengthen regional banking services across five states.

The deal, structured as a merger of equals, reflects a shared commitment to creating a larger, stronger community banking model.

Key Benefits of the Berkshire-Brookline Merger

1. Increased Scale and Competitive Positioning

The merger creates a $24 billion franchise uniquely positioned to serve communities across Massachusetts, Rhode Island, New York, and beyond. Combining resources will drive economies of scale, increasing the bank’s ability to invest in technology, offer expanded lending capacity, and deliver competitive financial solutions to businesses and individuals alike.

With a top-10 deposit market share in 14 of 19 major statistical areas (MSAs) across its footprint, the combined bank will improve accessibility for customers while strengthening its competitive advantage in a crowded financial services market.

2. Operational Strength and Efficiency

The merger brings together two experienced leadership teams with proven track records. The combined management structure will emphasize operational efficiencies, risk management, and shareholder returns while minimizing integration risks. Berkshire Hills Bancorp and Brookline Bancorp aim to deliver top-tier performance metrics among their peers, driven by streamlined operations and improved profitability.

3. Commitment to Community Banking

Both Berkshire and Brookline have long histories of prioritizing local communities. The merged bank will retain its community banking model, ensuring decisions are made with a focus on customers and local markets. The six-region structure of the combined bank will empower experienced regional leaders to deliver tailored services while leveraging the scale and financial resources of the larger institution.

Leadership and Structure of the Combined Bank

The governance and leadership structure reflects a balanced integration of talent from both companies. The combined company leadership will consist of 16 board members, evenly split between Berkshire and Brookline. Berkshire Chairperson David Brunelle will serve as Chairperson of the new board, while Brookline’s Paul A. Perrault will take on the role of President and CEO.

Other leadership roles include:

Carl M. Carlson as Chief Financial and Strategy Officer

Sean Gray as Chief Operating Officer

Michael McCurdy as Chief Banking Officer

Jacqueline Courtwright as Chief Human Resources Officer

The bank will operate under a regional structure, with six divisions managed by leaders familiar with their respective markets. This model ensures that local decision-making remains a cornerstone of the bank’s operations while delivering consistent service across its expansive footprint.

Financial Stability Through Capital Raise

To support the merger and ensure robust financial stability, Berkshire Hills Bancorp announced a $100 million capital raise through the issuance of common stock at $29.00 per share. Scheduled to close on December 19, 2024, the proceeds will strengthen the bank’s balance sheet, regulatory capital, and capacity to meet growing client demand.

The transaction is expected to result in a shareholder split of 51% for Berkshire, 45% for Brookline, and 4% for new investors, reflecting a balanced and mutually beneficial deal structure.

What’s Next for the Combined Northeast Banking Franchise?

The merged entity will introduce a new name and ticker symbol prior to closing, unifying the branding under one cohesive identity. Headquarters will remain in Boston at 131 Clarendon Street, underscoring the bank’s continued commitment to the Northeast region.

The deal is expected to close in the second half of 2025, pending regulatory approvals and shareholder consent from both companies.

A Bold Step Forward for Northeast Community Banking

The Berkshire-Brookline merger signals a pivotal moment for the Northeast banking landscape. By uniting two financially strong and culturally aligned institutions, the deal positions the combined bank to better serve clients, expand lending capabilities, and invest in communities.

As both institutions prioritize their shared values of trust, respect, and client focus, the new entity will deliver enhanced value to customers, employees, shareholders, and the local markets it serves.