Berkshire Hills Bancorp (BHLB) in Pittsfield, Mass., and its Berkshire Bank have changed charters.
The $6 billion-asset company disclosed in a regulatory filing Monday that Berkshire Bank had converted from a Massachusetts-chartered savings bank to a trust company that will operate as a commercial bank. Berkshire Hills changed its status from a savings and loan holding company to a bank holding company with a "financial holding company" status.
The company also disclosed that it had ended its membership in Massachusetts" Depositors Insurance Fund, which offered coverage above what is offered by the Federal Deposit Insurance Corp. Berkshire Hills noted that excess deposits will continue to be insured by the fund through July 11, 2015, and that regular FDIC coverage remains.
Berkshire Hills said in the filing that its bank's growth in deposits had "necessitated" its withdrawal from the state's deposit coverage and the charter conversion. The changes will also provide the company with "greater flexibility" with commercial lending since it will no longer be subject to the compliance requirements under the "Qualified Thrift Lender" test.