SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2014

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 25.SUBSEQUENT EVENTS

On November 3, 2014, the Company entered into a merger agreement with Hampden Bancorp, Inc. (“Hampden”), the parent company of Hampden Bank, pursuant to which Hampden will merge with and into the Company in a transaction to be accounted for as a business combination. It is expected that Hampden Bank will also merge with and into Berkshire Bank. Headquartered in Springfield, Mass., Hampden had $711 million in total assets as of December 31, 2014 (unaudited) and, through Hampden Bank, operates 10 banking offices providing a range of banking services in Western Massachusetts.

The shareholders approved the deal on March 12, 2015. Under the terms of this merger agreement, each outstanding share of Hampden common stock will be converted into the right to receive 0.81 of a share of Company common stock.

The transaction is subject to closing conditions, including the receipt of regulatory approvals and approval by the shareholders of Hampden. The merger is currently expected to be completed in the second quarter of 2015. The Company incurred $1.5 million of merger and acquisition expenses related to the Hampden merger for the year ended December 31, 2014.

This merger agreement had no significant effect on the Company’s financial statements for the periods presented.