Berkshire Hills Bancorp, Inc. (NYSE: BHLB) and Brookline Bancorp, Inc. (NASDAQ: BRKL) have entered into a definitive agreement for a merger of equals, creating a premier banking franchise in the Northeast. The all-stock transaction, valued at approximately $1.1 billion, will combine the two storied institutions, resulting in a financial powerhouse with $24 billion in assets and a network of 148 branch offices across five states. This move is set to significantly enhance client services, shareholder value, and community impact.
The merger positions the combined entity among the top financial institutions in the Northeast, with a leading deposit market share in 14 of 19 metropolitan statistical areas (MSAs). The larger scale will enable greater investment in customers, employees, and markets while increasing lending capacity. This scale provides the foundation for significant growth opportunities and operational efficiencies.
A seasoned leadership team, comprising executives from both organizations, will drive operational efficiency and risk management. This synergy is expected to result in top-tier performance metrics and sustainable growth. Additionally, the combined company will consolidate four existing bank charters into a single Massachusetts state-chartered bank, streamlining operations.
Both Berkshire and Brookline bring deeply rooted community banking traditions and shared values of respect, teamwork, and accountability. Together, they aim to strengthen ties with local communities and enhance their positive social impact, leveraging their unique regional knowledge and customer-focused ethos.
The new organization will adopt a balanced leadership structure, with a 16-member Board of Directors split equally between Berkshire and Brookline representatives. David Brunelle, Chairperson of Berkshire’s Board, will lead the combined company’s board. Paul A. Perrault, CEO of Brookline, will serve as President and CEO of the combined entity.
Key leadership roles include:
- Carl M. Carlson (Brookline) as Chief Financial and Strategy Officer.
- Jacqueline Courtwright (Berkshire) as Chief Human Resources Officer.
- Sean Gray (Berkshire) as Chief Operations Officer.
- Michael McCurdy (Brookline) as Chief Banking Officer.
- Mark Meiklejohn (Brookline) as Chief Credit Officer.
- Wm. Gordon Prescott (Berkshire) as General Counsel.
The combined bank will operate under a regional structure, preserving the localized decision-making that has defined both organizations. Six Regional Presidents, drawn equally from Berkshire and Brookline, will oversee operations and client engagement in their respective markets. This approach ensures that the bank maintains strong local connections while benefiting from the efficiencies of a larger institution.
Brookline shareholders will receive 0.42 shares of Berkshire stock for each Brookline share. Following the merger, Berkshire shareholders will hold 51% of the combined entity, Brookline shareholders 45%, and new investors 4% through a $100 million common stock offering. The combined company will adopt a new name and ticker symbol, to be announced before the transaction closes in the second half of 2025. The capital raised will support the pro forma balance sheet and regulatory capital ratios, ensuring a strong financial foundation.
The headquarters for the combined entity will be at 131 Clarendon Street in Boston, MA, with operations centers distributed throughout the Northeast. The merger represents a significant step forward in creating a regional banking leader. With a focus on growth, efficiency, and community banking, this merger sets the stage for a robust future, leveraging the strengths of both institutions to benefit all stakeholders, including customers, employees, and shareholders.