Berkshire Hills and Legacy to Divest Four Legacy Banks Branches to NBT Bank

Berkshire Hills Bancorp, Inc. BHLB and Legacy Banks, the banking subsidiary of Legacy Bancorp, Inc. LEGC have entered into an agreement to sell four Legacy Banks branches in Berkshire County to NBT Bank, N.A., the banking subsidiary of NBT Bancorp Inc. NBTB. The four branches to be divested are located in Massachusetts' Berkshire County in the towns of Great Barrington, Lee, Pittsfield, and North Adams. The branches had deposits totaling $158 million. The branches will be sold for a 6% deposit premium, and the transaction is expected to close by October 31, 2011. In accordance with the merger agreement between Berkshire and Legacy, a cash payment will be made to Legacy stockholders after the divestiture is completed in an amount equal to 50% of the premium in excess of 3.50% (net of applicable taxes). Based on the agreement with NBT, this payment to Legacy stockholders is expected to be approximately $0.15 per Legacy share.