Berkshire Hills Bancorp Inc. in Pittsfield, Mass., is shelling out for an acquisition in a neighboring market even as it prepares to repay government capital.

The $2.7 billion-asset company announced late Wednesday that it had agreed to buy CNB Financial Corp. in Worcester, Mass., where Berkshire has no branches, for $19.5 million of stock. Berkshire also said it had applied to repay the $40 million it got in December from the Treasury Department's Troubled Asset Relief Program.

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