Berkshire Hills Bancorp and Brookline Bancorp Merger

(Reuters) – Berkshire Hills Bancorp and Brookline Bancorp (NASDAQ: BRKL) have agreed to merge in an all-stock deal valued at approximately $1.1 billion, signaling increased consolidation in the banking industry.

Regional lenders, affected by the 2023 banking crisis, are pursuing deals to expand their presence and compete more effectively amidst pressure from high interest rates, declining borrowing, and increased competition for deposits which has led to larger losses on commercial real estate loans.

Notable mergers include SouthState's acquisition of Independent Bank Group (NASDAQ: IBTX) valued at $65 billion, and UMB Financial (NASDAQ: UMBF)'s takeover of Heartland Financial (NASDAQ: HTLF).

Both Berkshire and Brookline are based in Boston, Massachusetts, each holding around $12 billion in assets. The merger will create a $24 billion entity with a presence across five states.

As of the latest updates, Brookline's shares were stable while Berkshire's shares dipped by 1.7%. The new combined entity will trade on the New York Stock Exchange under a yet-to-be-announced name and ticker symbol, with closure expected in the second half of next year.

David Brunelle of Berkshire will be the chairperson of the new board, while Brookline's CEO, Paul Perrault, will lead the merged firm.

Additionally, Berkshire has entered into agreements to raise capital through investor subscriptions. Raymond James & Associates served as the exclusive financial adviser for Berkshire, and Brookline was advised by Hovde Group.