Berkshire, Hampden banks merge
GREATER SPRINGFIELD – Berkshire Hills Bancorp Inc. and Hampden Bancorp Inc. announced Dec. 4 that they have signed a definitive merger agreement under which Berkshire will acquire Hampden and its subsidiary, Hampden Bank, in an all-stock transaction valued at approximately $109 million.
Berkshire’s total assets will increase to $7.1 billion including the $706 million in acquired Hampden assets. This in-market merger is expected to create efficiencies, strategic growth and market share benefits for the consolidated operations of the two banks in the Springfield area. Hampden operates 10 branches in the greater Springfield area and reported $508 million in net loans and $490 million in deposits as of September 30, 2014.
Berkshire operates 11 branches with $627 million in deposits in this market. Berkshire will have a pro forma market cap of approximately $740 million and 100 branches serving customers and communities across New England and New York. Pro forma tangible equity to tangible assets is expected to improve to 7.4 percent when the merger is completed.
“We are pleased to welcome Hampden customers and employees to America’s Most Exciting Bank,” Michael P. Daly, president and CEO of Berkshire, said. “This in-market partnership will create a strong platform for serving our combined customers, while producing attractive returns for both our existing shareholders and the new shareholders from Hampden joining us in this transaction. We will move into the top 5 position in deposit market share and plan to use this opportunity to further capitalize on our strong product set and culture of customer engagement. This merger complements our expansion initiatives in Central Massachusetts and Hartford, a combined market area that is the second largest in New England.”
Glenn S. Welch, president and CEO of Hampden added, “We are delighted to be joining the Berkshire franchise. Our two banks share rich histories, consistent core values and a strong commitment to customers and communities. I’m proud of our 162 years of serving customers in our markets and believe the combination created by our two companies will benefit our clients, communities and shareholders.”
The definitive agreement has been approved by the unanimous votes of the Boards of Directors of both companies. Consummation of the agreement is subject to the approval of Hampden’s shareholders, as well as state and federal regulatory agencies.
The merger is targeted to be completed early in the second quarter of 2015.
An investor presentation will be posted on Berkshire’s website and Hampden’s website containing additional information regarding this merger.