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Berkshire Hills, Brookline Banks in Talks to Combine, WSJ Says

(Bloomberg) -- Boston-based banks Berkshire Hills Bancorp Inc. and Brookline Bancorp Inc. are in discussions to combine, the Wall Street Journal reported.

The deal, merging two lenders each with about $12 billion in assets, may be announced as soon as next week, assuming talks don’t fall apart, the Journal said, citing people with knowledge of the matter.

Berkshire Hills had a market value of $1.3 billion as of Friday, while Brookline’s was $1.1 billion.

Regional bankers are taking a more upbeat view for 2025. Higher interest rate that blew holes in balance sheets and squeezed profit margins are now helping to boost interest income on new investments. Many banks also strengthened safeguards against credit and interest rate risk, helping them bolster capital which they can put to work. Also, pressures from higher funding costs are expected to ease thanks to rate cuts.

--With assistance from Yizhu Wang.

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