Berkshire Hills Completes $75 Million Subordinated Debt Subscription

Berkshire Hills Bancorp, (NASDAQ: BHLB) has entered into a subscription agreement for a privateplacement of $75 million aggregate principal amount of fifteen yearFixed-to-Floating Rate Subordinated Notes due 2027.  The offering is expectedto close on September 28, 2012.  The notes bear interest at a fixed rate of6.875% for the first ten years.  The notes convert to a variable rate ofinterest in the final five years and are redeemable by Berkshire during thatperiod.Berkshire expects to utilize the majority of the net proceeds from thisoffering for the cash consideration portion of the pending merger with BeaconFederal Bancorp, and to use the remaining net proceeds for other corporatepurposes.  The notes qualify as Tier 2 capital under federal rules for bankholding company regulatory capital.