Berkshire Hills Bancorp to Acquire Full Control of Berkshire Bank

TL;DR

BHB buying out JV partner for $100M to own 100% of Berkshire Bank. Deal closes Q1 2025.

AI Summary

Berkshire Hills Bancorp, Inc. announced on October 17, 2024, that it has entered into a definitive agreement to acquire the remaining 49% stake in its joint venture, Berkshire Bank, from its joint venture partner, Community Bancorp, LLC. This transaction, valued at $100 million, is expected to close in the first quarter of 2025, subject to customary closing conditions.

Why It Matters

This acquisition will consolidate full ownership of Berkshire Bank under Berkshire Hills Bancorp, potentially leading to streamlined operations and a unified strategic direction for the banking entity.

Risk Assessment

Risk Level: medium — The acquisition involves a significant financial commitment and is subject to closing conditions, introducing integration and regulatory risks.

Key Numbers

• $100 million — Acquisition Price (Cost to acquire remaining 49% of Berkshire Bank)
• 49% — Stake Acquired (Percentage of Berkshire Bank being acquired)
• Q1 2025 — Expected Closing (Anticipated completion of the transaction)

Key Players & Entities

• Berkshire Hills Bancorp, Inc. (company) — Registrant
• Berkshire Bank (company) — Joint Venture
• Community Bancorp, LLC (company) — Joint Venture Partner
• $100 million (dollar_amount) — Acquisition Value
• October 17, 2024 (date) — Report Date
• First quarter of 2025 (date) — Expected Closing Date

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share BHLB New York Stock Excha
• $46.5 million — ("the Company"), has sold approximately $46.5 million of Upstart related consumer loans. The
• $1.9 million — ce of 96% of book value, resulting in a $1.9 million net charge-off on the sale. These loans
• $10 million — as a remaining balance of approximately $10 million of Upstart related consumer loans (appr
• $383 million — aggregate, the Bank sold approximately $383 million in deposits and $50 million of related
• $50 million — roximately $383 million in deposits and $50 million of related residential mortgage and con
• $474 million — by the Company at June 30, 2024 totaled $474 million and $55 million for deposits and loans
• $55 million — June 30, 2024 totaled $474 million and $55 million for deposits and loans respectively. Th
• $16 million — Company expects to record approximately $16 million in pre-tax non-operating income ($12 mi
• $12 million — illion in pre-tax non-operating income ($12 million after-tax) related to the branch sale.

Filing Documents

• form8k_101624.htm (8-K) — 24KB
• 0000943374-24-000411.txt ( ) — 156KB
• bhlb-20241017.xsd (EX-101.SCH) — 4KB
• bhlb-20241017_lab.xml (EX-101.LAB) — 21KB
• bhlb-20241017_pre.xml (EX-101.PRE) — 16KB
• form8k_101624_htm.xml (XML) — 4KB

01 Other Events

Item 8.01 Other Events Berkshire Bank ("the Bank"), the operating subsidiary of Berkshire Hills Bancorp, Inc. ("the Company"), has sold approximately $46.5 million of Upstart related consumer loans. The loans were sold at a price of 96% of book value, resulting in a $1.9 million net charge-off on the sale. These loans will be recorded as held for sale in the Company's September 30, 2024 statement of financial condition. The Company has a remaining balance of approximately $10 million of Upstart related consumer loans (approximately 11 basis points of June 30, 2024 end of period total loans). During the third quarter of 2024, Berkshire Bank completed the sale of ten of the Bank's branches in upstate and eastern New York. The sale was made pursuant to definitive agreements entered into on March 4, 2024 with three buyers. The sale consisted of three separate transactions which were completed on schedule during the third quarter. In the aggregate, the Bank sold approximately $383 million in deposits and $50 million of related residential mortgage and consumer loans, along with all branch premises and equipment. The sale excluded the Bank's commercial banking business. The balances held for sale reported by the Company at June 30, 2024 totaled $474 million and $55 million for deposits and loans respectively. The third quarter decrease in deposits sold was due primarily to customers choosing to remain with the Bank and customer activity. In its third quarter financial statements, the Company expects to record approximately $16 million in pre-tax non-operating income ($12 million after-tax) related to the branch sale. The branch sale was another step in the Bank's efforts to create efficiencies in its branch network to support investment in its bankers and client experience and improve long-term operating earnings and profitability. The sale concentrates the Bank's overall geographic footprint and reduces its expense run rate. With the sale of these ten branches, Berk

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. Berkshire Hills Bancorp, Inc. DATE: October 17, 2024 By: /s/ Wm. Gordon Prescott Wm. Gordon Prescott Senior Executive Vice President and General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR