Berkshire and Brookline finalize $1.1 billion joint venture accord
In a transformational move, Berkshire Hills Bancorp and Brookline Bancorp are set to merge, creating a Boston-based bank with a five-state reach and $24 billion in assets. The new holding company, Beacon Financial Corporation, is expected to be completed in the third quarter of 2025, subject to regulatory approvals and closing conditions.
The merged entity will trade on the New York Stock Exchange under the ticker symbol BBT. The combined bank will be legally known as Beacon Bank & Trust, but will be more commonly referred to as Beacon Bank. The name "Beacon" symbolizes guidance, strength, and stability, reflecting the legacy of both institutions. The new logo combines design elements and colours from both Berkshire and Brookline banks.
The merger will create a bank with a strong leadership team. Nitin Mhatre, CEO of Berkshire, has called the deal a "transformational milestone." Paul Perrault, CEO of Brookline, will serve as president and CEO of the combined bank after the deal closes. Darryl Fess, CEO of Brookline subsidiary Brookline Bank, will be one of the six regional presidents in the new entity. Sean Gray, current operations chief at Berkshire and president of Berkshire Bank, will be the new entity's COO.
The new entity's board will consist of 16 directors, with 8 from Brookline and 8 from Berkshire, led by David Brunelle. Berkshire will be the legal acquirer, and shareholders of that bank will own 51% of the new entity. Brookline shareholders will receive 0.42 shares of Berkshire for each outstanding share they hold.
The combined company aims to combine scale and efficiency with a shared culture of community banking to create value for all stakeholders. The new entity will be divided into six regions for efficiency, with local market leaders operating effectively within their regions.
Berkshire also aims to issue $100 million in common stock to new investors as part of a capital raise. The transaction is expected to close in the second half of 2025. Mark Meiklejohn, current Chief Credit Officer of Brookline, will become CCO at the combined bank. William Tsonos, CEO of Brookline subsidiary Bank of Rhode Island, will be another regional president in the new entity.
Jacqueline Courtwright, current HR chief at Berkshire, will serve as HR chief at the combined bank. William Gordon Prescott, Berkshire's General Counsel, will become general counsel at the combined bank. Michael McCurdy, COO and Co-President of Brookline, will be the combined bank's chief banking officer.
The merger has been described as "highly compelling" by David Brunelle. The combined bank, Beacon Financial Corporation, is set to bring together the strengths of two respected financial institutions, promising a future of growth and stability.
The merged bank, Beacon Bank & Trust, will operate in the retail, business, and finance industries, aiming to provide a stronger presence in the five-state region. The new entity, Beacon Financial Corporation, is expected to issue $100 million in common stock to attract new investors in a capital raise.
