PITTSFIELD, Mass., July 13, 2011 /PRNewswire/ -- Berkshire Hills
Bancorp, Inc. (NASDAQ: BHLB) and Legacy Banks, the banking
subsidiary of Legacy Bancorp, Inc. (NASDAQ: LEGC) have entered into
an agreement to sell four Legacy Banks branches in Berkshire County to NBT Bank, N.A. (NBT Bank),
the banking subsidiary of NBT Bancorp Inc. (NASDAQ: NBTB).
(Logo: http://photos.prnewswire.com/prnh/20101018/BERKSHIRELOGO
)
In an SEC filing on May 18, 2011,
Berkshire and Legacy announced
that their plan for the divestiture of certain Legacy Banks
branches had been accepted by the U.S. Department of Justice in
order to resolve any anticompetitive issues related to their
pending merger. The agreement with NBT Bank satisfies that
plan and has been approved by the Department of Justice.
Under the agreement, the affected branches will continue to
be operated as they currently are until they are transferred to NBT
Bank, and NBT Bank will offer employment to all branch
employees.
Michael P. Daly, Berkshire's President and CEO, stated, "When
we announced our merger agreement with Legacy last December, we
indicated that we expected to conduct a branch divestiture and we
are pleased with the financial terms we have achieved. The
divestiture is conditional on the completion of the acquisition of
Legacy Bancorp by Berkshire Hills Bancorp, which is targeted for
July 21, 2011, subject to final
regulatory approval. The shareholders of Berkshire and Legacy met recently and approved
the merger, and we are proceeding expeditiously to complete this
partnership and bring its benefits to shareholders and to the
communities we serve."
The four branches to be divested are located in Massachusetts' Berkshire County in the towns of Great Barrington, Lee, Pittsfield, and North Adams. The branches had deposits
totaling $158 million. The
branches will be sold for a 6% deposit premium, and the transaction
is expected to close by October 31,
2011. In accordance with the merger agreement between
Berkshire and Legacy, a cash
payment will be made to Legacy stockholders after the divestiture
is completed in an amount equal to 50% of the premium in excess of
3.50% (net of applicable taxes). Based on the agreement with
NBT, this payment to Legacy stockholders is expected to be
approximately $0.15 per Legacy
share.
BERKSHIRE BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank -
America's Most Exciting Bank(SM). The Company has
$3.2 billion in assets and 48 full
service branch offices in Massachusetts, New
York, and Vermont.
The Company provides personal and business banking,
insurance, and wealth management services. Berkshire Bank
provides 100% deposit insurance protection for all deposit
accounts, regardless of amount, based on a combination of FDIC
insurance and the Depositors Insurance Fund (DIF). The Company
completed the acquisition of Rome Bancorp on April 1, 2011. For more information, visit
www.berkshirebank.com or call 800-773-5601.
LEGACY BACKGROUND
Legacy Bancorp is the parent of Legacy Banks and is
headquartered in Pittsfield,
Massachusetts. Legacy Banks employs approximately 166 people
and has nineteen offices located in Western Massachusetts and Eastern New York. Legacy offers Personal
Banking, Mortgage Lending, Commercial Services, Insurance,
Investments, Portfolio Management, Credit and Debit Card products,
and Online Services. For more information about Legacy
Bancorp, visit www.legacy-banks.com. For more information
about the branches to be divested, please visit the web site of
either Berkshire Bank or Legacy Banks as shown above.
NBT BACKGROUND
NBT Bancorp, Inc. is a financial holding company with total
assets of $5.5 billion, is
headquartered in Norwich, New York
and is the parent company of NBT Bank. NBT Bank is a
full-service community bank with 123 locations, including 87
offices in upstate New York and
northwestern Vermont and 36
offices in northeastern Pennsylvania. NBT Bank provides a broad
range of financial products to individuals, corporations and
municipalities. For more information about NBT Bancorp Inc. and NBT
Bank, visit www.nbtbancorp.com or www.nbtbank.com.
FORWARD LOOKING STATEMENTS
Certain statements herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward looking statements, which
include statements regarding when the merger is expected to be
completed and when dividends will be paid, are based on the beliefs
and expectations of management, as well as the assumptions made
using information currently available to management. Since
these statements reflect the views of management concerning future
events, these statements involve risks, uncertainties and
assumptions. As a result, actual results may differ from
those contemplated by these statements. Forward-looking
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words
like "believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could" or "may." Factors that could cause actual results to differ
materially from expected results include changes in the interest
rate environment, changes in general economic conditions,
legislative and regulatory changes that adversely affect the
businesses in which Berkshire and
Legacy are engaged, changes in the securities market, as well as
certain factors set forth under the heading "Risk Factors" in the
Joint Proxy Statement/Prospectus of Berkshire and Legacy dated May 6, 2011. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Berkshire and Legacy disclaim any intent or
obligation to update any forward-looking statements, whether in
response to new information, future events or otherwise.
SOURCE Berkshire Hills Bancorp, Inc.