Berkshire Hills Bancorp (BHLB) in Pittsfield, Mass., has terminated all of its interest rate swaps associated with Federal Home Loan Bank advances through the end of last year.

The swaps had a total value of $410 million, the $5.7 billion-asset company said in a regulatory filing. The move was tied to the reduction of FHLB advances as a result of Berkshire Hills buying 20 Bank of America (BAC) branches in New York, along with $640 million in deposits and $5 million in loans. With the deal's Jan. 17 completion, Berkshire Hills doubled its branch count in New York to 37.

Berkshire Hills said in its regulatory filing that it reclassified about $8.6 million in fair value losses on interest rate swaps from other comprehensive loss to a noncore charge against first quarter net income, according to the regulatory filing.

Berkshire said it had initiated new forward starting interest rate swaps with a notional amount of $300 million in relation to rolling FHLB one-month fixed rate term advances. This new rate will start in the first half of 2016 and mature three years later.

Berkshire said it expects the changes in its deposits, borrowings and interest rate swaps will have a positive effect on its net interest margin and net interest income should interest rates rise.

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