Banker & Tradesman photo / file
At least two Berkshire Bank branches in Western Massachusetts will close as part of a branch consolidation that will eventually see 16 locations shutter in New England and New York.
Berkshire said in a statement yesterday that the branch consolidation, as well as the sale of offices in New Jersey and Pennsylvania, would reduce the bank’s overall branch footprint by 18 percent.
Sean Gray, acting CEO of Berkshire Bank, said in the statement that the announcements aligned with “Berkshire’s strategic shift toward improving profitability by refocusing on our core operations and operating efficiency.”
“Over the last decade, we have executed the consolidation or sale of 40 branches with a high rate of customer retention supported by our MyBanker professionals who provide personalized banking solutions and concierge service,” Gray said. “Our optimization plan is consistent with customers’ preferences and adoption of digital banking channels and our commitment to enhancing those channels as a 21st century community bank.”
Only six of the 16 branch closures have been announced so far. These include branches in Dalton in Berkshire County and the Feeding Hills section of Agawam, according to a spokesperson for Berkshire Bank. Three branches in Connecticut and one in upstate New York will also close.
“Additional branch consolidations will be announced in the near future with the same care and consideration for our employees and communities as the already announced branches,” the bank said in an email.
The 16 branches have total current deposit balances of approximately $568 million. The consolidations are expected to begin in January and be completed by the middle of 2021.
The Feeding Hills branch is about three miles from Berkshire Bank’s Agawam location. The Dalton branch is about two miles from one of the bank’s offices in Pittsfield.
“Extensive review has shown increasing digital channel usage by our customers,” Gray said in the statement. “The bank is proactively communicating its decision to customers who could be impacted by a branch office closure and is making introductions to team members at other branches and to our MyBanker team to ensure a seamless transition.”
Gray added that Berkshire Bank is working with employees at the branches to review career opportunities and transition them to other positions at the bank.
Along with the branch consolidation, Berkshire also announced yesterday that it would sell its Mid-Atlantic branches – six in New Jersey and two eastern Pennsylvania – to New Jersey-based Investors Bank. Subject to customary regulatory approvals, the sale is expected to take place in the first half of 2021.
As part of the sale, Berkshire will transfer to Investors Bank approximately $639 million in deposits and $308 million in loans. Investors Bank has agreed to pay a premium equal to 3 percent of the final deposit balance transferred, Berkshire said in the statement. Berkshire expects to complete the net transfer with funds from short-term investments.
All branch premises and equipment will be included in the sale, and Investors Bank intends to offer employment to all associated staff.
Once the branch consolidation and the sale of the Mid-Atlantic branches are completed, the bank will have 106 branches in Massachusetts, Connecticut, Rhode Island, Vermont and New York.
Gray also announced in yesterday’s statement that Berkshire would open a new commercial banking office in Providence next year “to strengthen the southeast New England operations we acquired in 2019.” Berkshire expanded into Rhode Island when it acquired Savings Institute Bank & Trust based in eastern Connecticut.
“The combination of these initiatives is targeted to optimize our branch network, improve our business focus and support our core profitability,” Gray said in the statement.
