Berkshire Hathaway and Brookline agree on a $1.1 billion merger deal
The financial sector is set for a major shake-up with the upcoming merger of Berkshire Hills Bancorp and Brookline Bancorp. The combined company, yet to be publicly named, will be known as Beacon Financial Corporation. The bank itself will be legally named Beacon Bank & Trust, commonly referred to as Beacon Bank. The new entity is expected to have a regional footprint covering Massachusetts and into New York’s lower Hudson Valley.
The merger, described as a "merger of equals", is a union of two strong regional banks headquartered in Boston, Massachusetts. The new brand "Beacon" symbolizes guidance, strength, and stability, reflecting the shared vision of both legacy banks.
The combined company will have approximately $24 billion in assets and will be Boston-based, with a five-state reach. The merger is expected to close in the third quarter of 2025, pending regulatory approvals and standard closing conditions.
In terms of leadership, Paul A. Perrault, CEO of Brookline Bancorp, will serve as CEO of the combined company. The new entity will be divided into six regions for efficiency, with Paul Perrault, James Morris, James Hickson, Elizabeth Mineo, Michael Goldrick, Darryl Fess, and William Tsonos serving as regional presidents.
Brookline shareholders will receive 0.42 shares of Berkshire for each outstanding share they hold. Berkshire will be the legal acquirer, and shareholders of that bank will own 51% of the new entity. New investors will own 4% of the combined bank, leaving Brookline with 45%.
Jacqueline Courtwright, current HR chief at Berkshire, will serve as HR chief at the combined bank. Sean Gray, current operations chief at Berkshire and president of Berkshire Bank, will be the new entity’s COO. Michael McCurdy, Brookline COO and Co-President, will be the combined bank’s chief banking officer. Mark Meiklejohn, Brookline Chief Credit Officer, will become CCO at the combined bank. William Gordon Prescott, Berkshire General Counsel, will become general counsel at the combined bank.
The merger is a significant move for both banks, with the combined bank aiming to have a top-10 deposit share in 14 of 19 target metro areas. 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.
[1] Berkshire Hills Bancorp and Brookline Bancorp to Merge in $1.1 Billion Deal [2] Beacon Financial Corporation to be formed by merger of Berkshire Hills Bancorp and Brookline Bancorp [3] Beacon Financial Corporation Announces Merger of Brookline Bancorp and Berkshire Hills Bancorp [4] Beacon Financial Corporation: A New Era in Banking
- The merger of Berkshire Hills Bancorp and Brookline Bancorp, known as Beacon Financial Corporation, marks a significant shift in the finance industry, bringing together two strong regional banks in the business sector.
- With a projected regional footprint covering Massachusetts and New York’s lower Hudson Valley, Beacon Financial Corporation, upon completion of the merger, aims to reach a top-10 deposit share in 14 of 19 target metro areas, expanding its influence in the banking-and-insurance industry.
