Berkshire Hills Bancorp has announced the sale of 10 New York-based branches in a strategic move to improve efficiencies within its network. The banking holding company’s subsidiary, Berkshire Bank, has finalized deals with Hudson Valley Credit Union, Glens Falls National Bank & Trust, and Pathfinder Bank for the sale of these branches located in upstate and eastern New York.
Details of the Sales
The transactions involve approximately $485.5 million in deposits and $60.5 million in related residential mortgage and consumer loans, including all branch premises and equipment. With these agreements, Berkshire’s total branch count will decrease from 96 to 86 locations. The bank mentioned that alongside a planned securities sale, the sales will not significantly impact borrowings and are expected to have a neutral effect on full-year 2024 earnings.
Strategic Focus on Core Markets
Berkshire’s Chief Executive, Nitin Mhatre, stated that the proposed sales will streamline the geographic footprint, reduce operational expenses, and reinforce the focus on core markets in New York. Hudson Valley Credit Union will acquire eight locations in Albany, Saratoga, Schenectady, and Columbia counties, while Glens Falls National Bank & Trust will take over a branch in Whitehall. Additionally, Pathfinder Bank is set to purchase a location in East Syracuse.