Berkshire Hills Bancorp and Brookline Bancorp have announced a “merger of equals”, which will result in the formation of a new holding company named Beacon Financial Corporation.

The legal name of the combined bank will be Beacon Bank & Trust, commonly referred to as Beacon Bank.

Berkshire Hills is the parent company of Berkshire Bank, while Brookline Bancorp is the parent company of Brookline Bank, Bank Rhode Island, and PCSB Bank.

Brookline Bancorp chairman and CEO Paul Perrault will act as CEO of the combined company, and Berkshire Hills Bancorp chairperson David Brunelle will remain as chairperson of the board for the combined company.

Brunelle said: “Our new name honours the legacy of Berkshire and Brookline while looking toward a bright and ambitious future. While the name is changing, we remain dedicated to offering trusted financial solutions and local expertise.”

Berkshire Bank operates as a community-focused bank in New England and New York. The bank has $12bn in assets and 83 branches, with its headquarters in Boston.

It offers a range of banking services through its retail banking, commercial banking, consumer lending, private banking, and wealth Management divisions.

Brookline Bancorp is a bank holding company based in Boston, Massachusetts, with $11.6bn in assets.

It offers commercial and retail banking, cash management, and investment services across Massachusetts, Rhode Island, and the Lower Hudson Valley of New York.

Perrault said: “Our merger of equals will create a powerful financial institution with deep local roots, a broad, complementary footprint and a strong commitment to its employees, clients, stockholders and communities.”

“The Beacon Bank name reflects our desire to be a reliable guide in financial decision-making, helping clients reach their goals with clarity, confidence, and trust.”

The merger is anticipated to be finalised in the third quarter of this year, pending regulatory approvals and standard closing conditions.