More details emerged about the $230 million acquisition of Worcester-based Commerce Bank in the third quarter conference call of Berkshire Hills Bancorp.

Berkshire Bank is ready to make its presence known as the first Boston-headquartered regional bank in decades.

Berkshire Hills Bancorp, the bank’s holding company, announced in a statement today that it has chosen the glossy, 38-story building at 60 State St., right in the heart of the city’s financial district, as its new corporate headquarters.

Closing in on $11.5 billion in assets when it completes the $209 million acquisition of Commerce Bank, which is expected to occur this month, Berkshire will be the largest state-chartered bank in Massachusetts and the third largest regional bank headquartered in New England.

The bank’s footprint stretches from Boston to Syracuse, New York, north to Rutland, Vermont and south into Connecticut, New Jersey and Pennsylvania, with a total of 113 branches following the Commerce acquisition.

“This new headquarters location reflects our leading role as a New England regional bank and northeastern financial institution with national specialty lending teams,” CEO Michael Daly said in a statement. “With our central presence in New England’s financial hub, we’re expanding our Boston area banking operations and enhancing the resources we provide to all of our regional banking markets.”

Berkshire Bank has been headquartered in Pittsfield and did not open its first retail branch in Boston until earlier this year. But the acquisition of the roughly $1.9 billion asset Commerce Bank paved the path to Boston. With the acquisition, Berkshire added three more branches in Boston, which will convert to the Berkshire brand in the first quarter of 2018. It also gave Berkshire several new branches in the Worcester area, which will remain under the Commerce brand, giving the bank a solid presence throughout Massachusetts.

The acquisition also pushed Berkshire past the $10 billion asset threshold, which will subject the bank to Dodd-Frank stress testing and therefore higher regulatory costs.

“We represent the ideal combination of local management, resources and sophisticated capabilities,” Daly said. “Boston has a strong community bank network and we look forward to working with many of them on community investment. I’m excited about our more visible and active presence in greater Boston, and look forward to further building and deepening customer relationships.”

The bank expects to recruit diverse and talented staff to fuel its growth in New England’s largest market, and to capitalize on its presence in all of Berkshire’s communities.

“We’ve had great success with our Eastern Massachusetts expansion in recent years, and we’ve become an important community partner in Boston. We’re a major sponsor of the NESN Bruins broadcasts and the community sponsor of Boston Seasons at City Hall Plaza,” Sean Gray, Berkshire’s COO, said in a statement. “Berkshire is committed to its innovative operating model which is a mix of technology and service that we think is the best platform to meet customer needs. This platform is supported by our growing operations center in Pittsfield, and the talent that we’ve assembled throughout our footprint to deliver top tier banking capabilities and responsiveness in all of our regional markets.“

The company expects to begin occupying its new headquarters space in December. At that time, 60 State St. will become the home base for Berkshire’s senior executive leadership, together with local bankers in commercial, retail and private banking, as well as wealth management. Berkshire’s CEO and president have already purchased homes in the Boston area in anticipation of the year-end move.

Berkshire Bank Chooses Boston Headquarters

by Bram Berkowitz time to read: 2 min
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