Hudson Valley Credit Union Plans to Acquire 8 Berkshire Bank Branches

In a move aimed at improving long-term profitability, Berkshire Bank has announced the sale of 10 branches in upstate and eastern New York to three buyers. The sales will reduce Berkshire's overall footprint to 86 branches, down from 96.

The sales include approximately $485.5 million in deposits and $60.5 million of related residential mortgage and consumer loans. Eight of these branches will be acquired by Hudson Valley Credit Union, expanding their reach to 30 branches throughout the Hudson Valley and Capital Region.

Hudson Valley Credit Union has also expressed its intention to keep all employees of the acquired Berkshire branches. In a separate deal, Hudson Valley will also acquire Catskill Hudson Bank for approximately $28.6 million.

Oswego, New York-based Pathfinder Bank is purchasing a branch in East Syracuse from Berkshire Bank. Glens Falls National Bank and Trust Co. is purchasing a Berkshire branch in Whitehall. Berkshire CEO Nitin Mhatre stated that the sales are part of the bank's efforts to deliver earnings, right size, and become more efficient.

Beacon Credit Union plans to acquire Salem, Indiana-based Mid-Southern Savings Bank, but concerns have been raised by the Independent Community Bankers of America regarding Beacon Credit Union's lack of federal deposit insurance.

The purchases will include the deposits, fixed assets, and certain residential and consumer loans at the affected branches. Five purchases of a whole bank by a credit union have occurred in 2024, with two more involving part of a bank's footprint. The branch-deal space is expected to remain active throughout 2024, according to Attorney Michael Bell of Honigman.

However, there are no specific publicly available figures on how many total bank branches have been acquired by credit cooperatives (Kreditgenossenschaften) in 2024 so far. The data mentions an accelerated branch reduction in Germany and consolidation pressure in cooperative banking groups but does not quantify acquisitions of branches by credit cooperatives in 2024.

Bank trade groups continue to criticize deals involving credit unions buying banks. Consumers are urged to visit the website https://www.creditunionquestions.com to urge Congress to hold a hearing on credit union policy. The sales are expected to be completed by the end of the third quarter of 2024, leaving 16 Berkshire branches in upstate and eastern New York.