Berkshire Hills Bancorp, the parent company of Berkshire Bank, has agreed to acquire SI Financial Group and its subsidiary, Savings Institute Bank, for $180m.

Under the all-stock transaction, SIFI shareholders will receive 0.48 shares of Berkshire Hills common stock for each outstanding share of SIFI common stock.

Once the merger is complete, SIFI president and CEO Rheo Brouillard will join Berkshire’s Board of Directors.

Berkshire CEO Richard Marotta said: “This transaction is a natural fit. It brings with it a stable, longstanding deposit base with leading market position.

“The Savings Institute franchise strengthens our Northeast presence, as we gain scale in Connecticut and enter into attractive Rhode Island markets.”

SI Financial Group acquisition: Benefits

The acquisition is expected to bolster Berkshire’s presence in multiple markets. It will add 18 branches in Eastern Connecticut and five branches in Rhode Island to its network.

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Additionally, Berkshire’s total assets are expected to increase to $13.6bn. As of 30 September 2018, SIFI had $1.3bn in loans and $1.3bn in deposits.

Brouillard said: “The combination of our two banks will provide greater convenience and a broader array of products to our customers who will continue to have the personalized service they have come to expect.”

The SI Financial Group acquisition is expected to close in the second quarter of 2019. The deal is subject to SIFI shareholders approval as well as requires consent from state and federal regulators.

Established in 1842, Savings Institute Bank and Trust Company provide various financial services to individuals, businesses and municipalities.

Berkshire has 115 full service branches across Massachusetts, New York, Connecticut, Vermont, New Jersey and Pennsylvania. It offers personal and business banking, insurance, wealth management as well as mortgage services.