Berkshire Bank To Acquire Smaller Springfield Rival

The parent of Berkshire Bank, which established a presence in Connecticut two years ago, said Tuesday it would acquire a smaller Springfield-based rival.

Pittsfield, Mass.-based Berkshire Hills Bancorp, Inc. said it would purchase Hampden Bancorp, Inc., the Springfield-based parent of Hampden Bank in an all-stock transaction valued at $109 million.

If approved by Hampden shareholders and state and federal regulators, the deal could close early in the second quarter of 2015.

The acquisition would boost Berkshire Hills’ assets to $7.1 billion and 100 branches. Hampden has assets of $706 million and 10 branches.

In 2012, Berkshire Hills acquired Hartford-based Connecticut Bank and Trust Co., establishing a beachhead in the Greater Hartford area with eight branches.

“This merger complements our expansion initiatives in central Massachusetts and Hartford, a combined market area that is the second largest in New England,” Michael P. Daly, Berkshire Hills’ president and chief executive, said.

The merger is valued at $20.53 per share of Hampden common stock based on the $25.35 average closing price of Berkshire’s stock for the five-day period ending Nov. 3.

Shares in Hampden Bancorp jumped $2.60 to close at $19.50 Tuesday. Berkshire Hill shares closed at $25.03, down 70 cents.