Brookline Bancorp will merge into Berkshire Bank parent company Berkshire Hills Bancorp in a $1.1 billion merger of equals, creating a Boston-based bank with a five-state reach, $24 billion in assets and a top-10 deposit share in 14 of 19 target metro areas, the banks said in a release Monday.
The combined company, which will trade on the New York Stock Exchange, has yet to be publicly named. A new company name, ticker symbol and combined bank name will be announced prior to closing. The transaction is expected to close in the second half of 2025.
“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” Brookline CEO Paul Perrault said in a statement Monday. “By bringing together two complementary cultures and geographic footprints with shared values and client focus, we will be better positioned to serve our customers, employees, communities and shareholders.”
Perrault will serve as president and CEO of the combined bank after the deal closes. But Berkshire will be considered the legal acquirer, and shareholders of that bank will own 51% of the new entity. Brookline, however, will be the charter holder.
Brookline shareholders will receive 0.42 shares of Berkshire for each outstanding share they hold. That translates to $12.68 per Brookline share, based on a $30.20 closing price for Berkshire stock, as of Friday.
Berkshire also aims to issue $100 million in common stock, at $29 per share, to new investors as part of a capital raise that’s expected to close Thursday.
New investors will own 4% of the combined bank, leaving Brookline with 45%.
Nitin Mhatre, Berkshire’s CEO, called the deal a “transformational milestone.”
“The combined organization will be in an even stronger position to deliver exceptional client experience and create greater value for shareholders," said Mhatre, who appears to be left out of the new bank’s C-suite. A spokesperson did not respond to a request for comment on his involvement with the bank post-merger.
Carl Carlson, Brookline’s co-president and finance and strategy chief, will serve as the combined bank’s chief financial and strategy officer.
Jacqueline Courtwright, human resources chief at Berkshire, will serve in the same role at the combined entity; and Sean Gray, current operations chief at Berkshire and president of Berkshire Bank, will be the new entity’s COO.
Brookline COO and Co-President Michael McCurdy will be the combined bank’s chief banking officer; Brookline Chief Credit Officer Mark Meiklejohn will become CCO at the combined bank; and Berkshire General Counsel William Gordon Prescott will become general counsel at the combined bank.
The combined bank’s board will consist of eight directors from Brookline and eight from Berkshire, with Brookline Chair David Brunelle leading the board.
In Monday’s release, Brunelle called the combination “highly compelling.”
“Scale and efficiency combined with our shared culture of true community banking is a powerful driver of value for all of our stakeholders," Brunelle said.
The new entity will be divided into six regions for efficiency, while enabling local market leaders to make the best decisions for their regions, the banks said.
The six regional presidents will be Darryl Fess, CEO of Brookline subsidiary Brookline Bank; Michael Goldrick, CEO of Brookline subsidiary PCSB Bank; James Hickson, regional president at Berkshire Bank; Elizabeth Mindeo, managing director of private banking at Berkshire Bank; James Morris, New York market president and managing director of commercial real estate at Berkshire Bank; and William Tsonos, CEO of Brookline subsidiary Bank of Rhode Island.
