Exhibit 99.1

BERKSHIRE HILLS REPORTS ANOTHER STRONG QUARTER WITH
FOURTH QUARTER EPS OF $0.44 AND $2.06 FOR THE YEAR

Dividend Declared; Annual Meeting Date Set

PITTSFIELD, MA – January 26, 2009 – Berkshire Hills Bancorp (BHLB) reported fourth quarter earnings totaled $5.2 million, or $0.44 per share. For the year 2008, earnings were $22.2 million, or $2.06 per share. Core earnings per share increased by 8% in 2008, reflecting the benefit of acquisitions and organic growth. GAAP earnings per share increased by 43% due to non-core charges in 2007.

Most categories of income and expense increased in the first nine months of 2008 including the benefit of the acquired Vermont operations. Results in 2007 included non-core charges primarily due to the completion of that merger and a related balance sheet restructuring. Net income in 2007 totaled $13.5 million, or $1.44 per share. Fourth quarter 2007 net income was $3.1 million, or $0.29 per share.

Fourth Quarter Financial Highlights

	•		$0.44 core earnings per share vs. $0.36 in 2007; GAAP EPS of $0.44 vs. $0.29
	•		0.48% nonperforming assets to total assets at year-end; accruing delinquent loans were 0.51% of total loans
	•		0.27% annualized charge-offs on average loans
	•		Public issuance of nearly $40 million in common stock and the issuance of $40 million of preferred stock under the U.S. Treasury Capital Purchase Program

Annual Financial Highlights

	•		8% increase in core EPS; 43% increase in GAAP EPS
	•		12% increase in year-end tangible book value per share to $15.47; 3% decrease in total book value per share to $30.07
	•		21% increase in total net revenue
	•		3.44% net interest margin
	•		8% increase in total commercial loans; 7% increase in total residential mortgage and home equity loans
	•		61.4% efficiency ratio, improved from 62.9% in 2007

BHLB — Berkshire Hills Bancorp Page 1 www.berkshirebank.com

Michael P. Daly, President and Chief Executive Officer, stated, “We had another solid quarter, and finished out a strong year with higher earnings and earnings per share. We generated positive operating leverage due to organic growth and the benefit of our Vermont operations acquired last year. Despite growing headwinds towards the end of the year, we generated higher earnings and core earnings per share in every quarter of the year.”

Mr. Daly continued, “We produced these solid results despite the impact of our October common stock offering, which reduced EPS by $0.06 in the fourth quarter and by $0.07 for the year. This successful public offering totaled nearly $40 million and bolstered our equity capital, which totaled 15% of total assets at year-end –our highest equity capital ratio since we went public. We combined the common equity with $40 million in preferred stock issued under the Treasury Capital Purchase Program to better position the Company to expand the flow of credit and support economic vitality in the communities that we serve.”

Mr. Daly concluded, “Our loan performance continued to hold up through year-end, and our charge-offs remained modest in 2008. We also had no writedowns on any of our investment securities during the year and our investment portfolio remained high quality at year-end. We recognize that the coming year will be challenging for our industry and we will again be disciplined in our budgeting process. The interest rate reductions by the Federal Reserve Bank have negatively impacted our pricing, thereby reducing our net interest margin. Should economic conditions continue to deteriorate in 2009, it is likely that we will increase our provision despite our strong loan performance through year-end 2008. We will also be incurring some earnings dilution from the common stock offering and the Treasury preferred stock. We aggressively supplemented our capital to prepare for the current environment, and we plan to be proactive in developing programs to meet the needs of our markets and in working promptly to address loan problems if they develop.”

DIVIDEND DECLARED

The Board of Directors declared a quarterly cash dividend of $0.16 per share to stockholders of record at the close of business on February 12, 2009 and payable on February 26, 2009. Common stock dividends totaled $0.63 per share in 2008, an increase of 9% over 2007.

ANNUAL MEETING SET

The 2009 annual meeting of stockholders will be held on May 7, 2009 at the Crowne Plaza Hotel, One West Street, Pittsfield, Massachusetts at 10:00 A.M. (ET). The voting record date has been set as March 10, 2009.

FINANCIAL CONDITION

Total assets were $2.7 billion at year-end 2008, increasing by 6% over year-end 2007. Total loans increased by 8% in 2008 excluding auto loans, reflecting growth in total commercial loans, along with higher residential mortgage and home equity loans. Growth in commercial real estate loans mostly reflected loan opportunities previously serviced by national providers in the Company’s New England lending areas. Home equity loan growth was due to new lines opened as a result of relationship promotions. Residential and home equity underwriting is based on prime lending standards with 80% maximum loan-to-value. Commercial business loans decreased due to paydowns. The bank made a decision early in the year to discontinue originations of indirect auto loans and this portfolio is declining as existing balances runoff. Fourth quarter loan activity generally reflected these annual trends.

BHLB — Berkshire Hills Bancorp Page 2 www.berkshirebank.com

In the fourth quarter, securities available for sale increased by $71 million and short term investments increased by $10 million, primarily reflecting the utilization of stock issuance proceeds pending further investment activities in 2009. Securities purchases consisted primarily of short duration collateralized mortgage obligations issued by federal agencies. The Company’s securities portfolio consists primarily of U.S. agency mortgage backed securities, and municipal and economic development bonds. All debt securities are rated investment grade except for $40 million in unrated local municipal and economic development bonds. The total unrealized loss on securities available for sale was $3 million at year-end 2008, all of which was deemed to be temporary.

The Company’s problem loan measures at year-end 2008 remained comparatively low and were not significantly changed from the prior year-end. Year-end 2008 nonperforming assets totaled 0.48% of total assets, and accruing delinquent loans were up moderately to 0.51% of total loans. The year-end loan loss allowance was 1.14% of total loans for 2008 and 2007. The portion of the allowance assigned to specific reserves on impaired loans was $1.0 million at year-end 2008 and $1.2 million at year-end 2007.

Total deposits increased by $7 million to $1.83 billion in 2008. Deposit activity included an estimated $45 million in targeted run-off of higher cost municipal, commercial, and brokered time deposit accounts primarily in the second quarter. Estimated deposit growth excluding this run-off was 3%. Most of the Company’s retail deposit and loan promotions are linked to companion checking accounts. The Company offers 100% insurance on all deposit balances due to its participation in the Massachusetts Depositors Insurance Fund. The Bank expects to benefit from the temporary increase in FDIC deposit insurance limits and it is also participating in the optional temporary unlimited transaction account insurance offered by the FDIC.

Stockholders’ equity increased by $82 million in 2008 primarily due to the benefit of the common and preferred stock offerings. The contribution from earnings was partially offset by dividends and an unrealized mark-to-market loss on interest rate swaps. Total equity to assets increased to 15.3% at year-end 2008, while tangible equity to assets measured 9.2%. The risk based capital ratio of Berkshire Bank was approximately 12% at year-end. Total return on equity was 6.5% in 2008, while the core return on tangible equity was 16.2%. The Company views this latter measure as an important measure of its capital generation and capital strength. Tangible common book value per share was $15.47 at year-end 2008, compared to $13.82 at the prior year-end. Total common book value per share was $30.07 and $31.15 at these two dates, respectively.

BHLB – Berkshire Hills Bancorp Page 3 www.berkshirebank.com

RESULTS OF OPERATIONS

Most major categories of income and expense increased in 2008 primarily due to the contribution of Vermont operations resulting from the Factory Point Bancorp acquisition in September 2007. Total annual core revenue increased by 16%, while total core income increased by 25%. Several non-core charges related principally to the Factory Point acquisition reduced revenue and income in 2007. As a result, total GAAP revenue increased by 21% and total GAAP earnings increased by 64% in 2008 compared to 2007. Fourth quarter GAAP earnings increased by 69%, including results from Vermont operations in both periods. The increase was primarily due to non-core charges and a larger loan loss provision in 2007.

Net interest income increased by 18% in 2008 and increased sequentially in all quarters during the year. Average earning assets also increased sequentially in each quarter in 2008, with the fourth quarter average exceeding the 2007 fourth quarter average by 6%. This was primarily driven by continuous loan growth, despite the impact of runoff in the indirect auto loan portfolio. The net interest margin increased sequentially in the first three quarters to a five year peak of 3.48%, and then declined in the fourth quarter to 3.41% due to market floors on deposit rates following the drop in the federal funds rate to the lowest levels since 1954. The net interest margin improvement to 3.44% in 2008 reflected disciplined loan and deposit pricing throughout the year, together with the benefit of the Factory Point acquisition and the related balance sheet restructuring in 2007.

Fee income increased by 14% in 2008, resulting from higher deposit, loan, and interest rate swap fee income. Insurance fees decreased by 1% in 2008 primarily due to softer pricing conditions in the property casualty markets. Wealth management fees increased by 29% in 2008; however they were adversely affected by stock market conditions in the fourth quarter. The stock market decline caused a 21% reduction in fourth quarter wealth management revenues. Non-interest income in 2007 included non-core balance sheet restructuring charges related to the Factory Point acquisition.

The loan loss provision increased by 7% in 2008, which was in line with the growth in total loans during the year. The 2008 loan loss provision was $4.6 million, while net loan charge-offs totaled $3.8 million in 2008, compared to $6.0 million in 2007.

The 9% increase in non-interest expense in 2008 was primarily due to the Factory Point acquisition. Fourth quarter results included the acquired Vermont operations in both 2008 and 2007, and fourth quarter core expenses were flat from year to year. Non-core charges were recorded in 2007 primarily due to the Factory Point acquisition, and there were additional non-core expense restructuring charges recorded in both years. The Bank’s efficiency ratio improved to 59% in 2008, while the consolidated ratio improved to 61%. The effective income tax rate was 28% in both 2008 and 2007, and also in the most recent quarter. The tax rate in 2008 included a second quarter non-core credit resulting from the reduction in the valuation reserve for deferred state tax assets.

BHLB — Berkshire Hills Bancorp Page 4 www.berkshirebank.com

CONFERENCE CALL

The Company will conduct a conference call/webcast at 9:00 A.M. eastern time on Tuesday, January 27, 2009 to discuss the results for the quarter and the year, and guidance about expected future results. Additionally, the Company intends to post a document with supplemental information in the Investor Relations section of its web site at www.berkshirebank.com shortly before the commencement of the call.

Information about the conference call follows:

Dial-in:		800-860-2442
Webcast:		www.berkshirebank.com (Investor Relations link)

A telephone replay of the call will be available until February 4, 2009 by calling 877-344-7529 and entering replay passcode: 426862. The webcast and a podcast will be available at the Company’s website above for an extended period of time.

BACKGROUND

Berkshire Hills Bancorp is headquartered in Pittsfield, Massachusetts. It has approximately $2.7 billion in assets and is the parent of Berkshire Bank — America’s Most Exciting Bank^SM. The Company provides business and consumer banking, insurance, wealth management, and investment services through 48 banking and insurance offices in Western Massachusetts, Northeastern New York, and Southern Vermont. For more information, visit www.berkshirebank.com or call 800-773-5601.

FORWARD LOOKING STATEMENTS

Statements in this news release regarding Berkshire Hills Bancorp that are not historical facts are “forward-looking statements”. These statements reflect management’s views of future events, and involve risks and uncertainties. For a discussion of factors that could cause actual results to differ materially from expectations, see “Forward Looking Statements” in the Company’s 2007 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at the Securities and Exchange Commission’s Internet website (www.sec.gov) and to which reference is hereby made. Actual future results may differ significantly from results discussed in these forward-looking statements, and undue reliance should not be placed on such statements. Except as required by law, the Company assumes no obligation to update any forward-looking statements.

BHLB — Berkshire Hills Bancorp Page 5 www.berkshirebank.com

NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included in the accompanying financial tables. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including merger costs and restructuring costs. Similarly, the efficiency ratio is also adjusted for these non-core items. Additionally, the Company adjusts core income to exclude amortization of intangibles to arrive at a measure of the underlying operating cash return for the benefit of stockholders. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

# # #

CONTACTS

Investor Relations Contact
David H. Gonci
Corporate Finance Officer
413-281-1973

Media Contact
Fedelina Madrid
Vice President — Marketing
413-236-3733

BHLB — Berkshire Hills Bancorp Page 6 www.berkshirebank.com

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED

		December 31,				September 30,				December 31,
(In thousands)		2008				2008				2007
Assets
Total cash and cash equivalents		$	26,582			$	26,445			$	33,259
Fed funds sold & short-term investments			18,216				8,124				7,883
Trading securities			18,144				15,267				—
Securities available for sale, at fair value			276,423				205,554				197,964
Securities held to maturity, at amortized cost			25,872				25,923				39,456
Federal Home Loan Bank stock			21,077				21,077				21,077
Loans held for sale			1,768				5,401				3,445
Residential mortgages			677,254				672,004				657,045
Commercial mortgages			808,591				794,780				704,764
Commercial business loans			175,799				181,224				203,564
Consumer loans			345,508				344,359				378,643
Total loans			2,007,152				1,992,367				1,944,016
Less: Allowance for loan losses			(22,908	)			(22,886	)			(22,116	)
Net loans			1,984,244				1,969,481				1,921,900
Premises and equipment, net			37,448				37,902				38,806
Goodwill			161,178				161,178				161,632
Other intangible assets			17,652				18,490				20,820
Cash surrender value of life insurance policies			35,668				35,331				35,316
Other assets			42,457				35,526				31,874
Total assets		$	2,666,729			$	2,565,699			$	2,513,432
Liabilities and stockholders’ equity
Demand deposits		$	233,040			$	227,271			$	231,994
NOW deposits			190,828				196,217				213,150
Money market deposits			448,238				450,818				439,341
Savings deposits			211,156				220,800				210,186
Total non-maturity deposits			1,083,262				1,095,106				1,094,671
Brokered time deposits			2,942				3,008				21,497
Other time deposits			743,376				739,090				706,395
Total time deposits			746,318				742,098				727,892
Total deposits			1,829,580				1,837,204				1,822,563
Borrowings			359,157				366,092				334,474
Junior subordinated debentures			15,464				15,464				15,464
Derivative liabilities			23,868				2,608				—
Due to broker			19,895				—				—
Other liabilities			10,340				11,649				14,094
Total liabilities			2,258,304				2,233,017				2,186,595
Total stockholders’ equity			408,425				332,682				326,837
Total liabilities and stockholders’ equity		$	2,666,729			$	2,565,699			$	2,513,432

F-1

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED LOAN & DEPOSIT ANALYSIS — UNAUDITED

LOAN ANALYSIS

		December 31, 2008
						Quarterly
						annualized				Annual				September 30, 2008				December 31, 2007
(Dollars in millions)		Balance				growth				growth				Balance				Balance
Residential mortgages:
1 - 4 Family		$	642				4	%			5	%		$	636			$	610
Construction			35				(11	)			(26	)			36				47
Total residential mortgages			677				3				3				672				657
Commercial mortgages:
Construction			130				(12	)			4				134				125
Single and multi-family			70				—				1				70				69
Other commercial mortgages			608				12				19				591				510
Total commercial mortgages			808				7				15				795				704
Commercial business loans			176				(11	)			(14	)			181				204
Total commercial loans			984				3				8				976				908
Consumer loans:
Auto and other			140				(43	)			(34	)			157				211
Home equity			206				41				23				187				168
Total consumer loans			346				2				(9	)			344				379
Total loans		$	2,007				3	%			3	%		$	1,992			$	1,944

DEPOSIT ANALYSIS

		December 31, 2008
						Quarterly
						annualized				Annual				September 30, 2008				December 31, 2007
(Dollars in millions)		Balance				growth				growth				Balance				Balance
Demand		$	233				11	%			—	%		$	227			$	232
NOW			191				(10	)			(10	)			196				213
Money market			448				(3	)			2				451				439
Savings			211				(18	)			—				221				211
Total non-maturity deposits			1,083				(4	)			(1	)			1,095				1,095
Time less than $100,000			392				(2	)			(4	)			394				409
Time $100,000 or more			351				7				18				345				298
Brokered time			3				—				(86	)			3				21
Total time deposits			746				2				2				742				728
Total deposits		$	1,829				(2	)%			—	%		$	1,837			$	1,823

F-2

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED

		Three Months Ended								Years Ended
		December 31,								December 31,
(In thousands, except per share data)		2008				2007				2008				2007
Interest and dividend income
Loans		$	29,343			$	32,666			$	120,567			$	120,059
Securities and other			3,419				3,183				12,644				11,885
Total interest and dividend income			32,762				35,849				133,211				131,944
Interest expense
Deposits			9,248				13,749				41,733				50,597
Borrowings and junior subordinated debentures			4,044				3,882				15,738				17,422
Total interest expense			13,292				17,631				57,471				68,019
Net interest income			19,470				18,218				75,740				63,925
Non-interest income
Insurance commissions and fees			2,139				2,290				13,619				13,728
Deposit service fees			2,623				2,620				9,782				7,747
Wealth management fees			1,171				1,476				5,704				4,407
Loan service and interest rate swap fees			203				91				1,229				772
Total fee income			6,136				6,477				30,334				26,654
Other			241				551				1,283				1,710
Loss on sale of securities, net			—				—				(22	)			(591	)
Loss on prepayment of borrowings, net			—				—				—				(1,180	)
Gain (loss) on sale of loans, net			—				41				—				(1,950	)
Total non-interest income			6,377				7,069				31,595				24,643
Total net revenue			25,847				25,287				107,335				88,568
Provision for loan losses			1,400				3,060				4,580				4,300
Non-interest expense
Salaries and employee benefits			8,988				9,386				38,282				34,018
Occupancy and equipment			2,736				2,656				11,238				9,945
Marketing, data processing, and professional services			2,338				2,275				8,761				8,598
Non-recurring expense			—				1,198				683				2,956
Amortization of intangible assets			838				1,050				3,830				3,058
Other			2,356				1,828				8,905				6,919
Total non-interest expense			17,256				18,393				71,699				65,494
Income before income taxes			7,191				3,834				31,056				18,774
Income tax expense			1,985				761				8,812				5,239
Net income		$	5,206			$	3,073			$	22,244			$	13,535
Basic earnings per common share		$	0.44			$	0.29			$	2.08			$	1.47
Diluted earnings per common share		$	0.44			$	0.29			$	2.06			$	1.44
Weighted average common shares outstanding
Basic			11,804				10,524				10,700				9,223
Diluted			11,892				10,664				10,791				9,370

F-3

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED

		Quarters Ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
(In thousands, except per share data)		2008				2008				2008				2008				2007
Interest and dividend income
Loans		$	29,343			$	30,078			$	29,823			$	31,323			$	32,666
Securities and other			3,419				3,014				3,011				3,200				3,183
Total interest and dividend income			32,762				33,092				32,834				34,523				35,849
Interest expense
Deposits			9,248				9,676				10,521				12,288				13,749
Borrowings and junior subordinated debentures			4,044				4,087				3,666				3,941				3,882
Total interest expense			13,292				13,763				14,187				16,229				17,631
Net interest income			19,470				19,329				18,647				18,294				18,218
Non-interest income
Insurance commissions and fees			2,139				2,640				3,694				5,146				2,290
Deposit service fees			2,623				2,518				2,486				2,155				2,620
Wealth management fees			1,171				1,338				1,567				1,628				1,476
Loan service and interest rate swap fees			203				561				228				237				91
Total fee income			6,136				7,057				7,975				9,166				6,477
Other			241				174				562				306				551
Gain (loss) on securities, net			—				4				(26	)			—				—
Gain on sale of loans, net			—				—				—				—				41
Total non-interest income			6,377				7,235				8,511				9,472				7,069
Total net revenue			25,847				26,564				27,158				27,766				25,287
Provision for loan losses			1,400				1,250				1,105				825				3,060
Non-interest expense
Salaries and employee benefits			8,988				9,796				9,842				9,656				9,386
Occupancy and equipment			2,736				2,760				2,774				2,968				2,656
Marketing, data processing, and professional services			2,338				2,121				2,181				2,121				2,275
Non-recurring expense			—				—				683				—				1,198
Amortization of intangible assets			838				889				1,019				1,084				1,050
Other			2,356				2,171				2,133				2,245				1,828
Total non-interest expense			17,256				17,737				18,632				18,074				18,393
Income before income taxes			7,191				7,577				7,421				8,867				3,834
Income tax expense			1,985				2,301				1,708				2,818				761
Net income		$	5,206			$	5,276			$	5,713			$	6,049			$	3,073
Basic earnings per share		$	0.44			$	0.51			$	0.55			$	0.58			$	0.29
Diluted earnings per share		$	0.44			$	0.51			$	0.55			$	0.58			$	0.29
Weighted average shares outstanding
Basic			11,804				10,303				10,302				10,386				10,524
Diluted			11,892				10,400				10,384				10,457				10,664

F-4

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
ASSET QUALITY ANALYSIS

		At or for the Quarters Ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)		2008				2008				2008				2008				2007
NON-PERFORMING ASSETS
Nonaccruing loans:
Residential mortgages		$	1,646			$	1,315			$	763			$	1,060			$	726
Commercial mortgages			7,738				6,178				5,329				7,082				5,177
Commercial business loans			1,921				2,210				3,103				3,557				4,164
Indirect auto and installment loans			693				576				503				374				346
Home equity			173				74				74				67				95
Total nonaccruing loans			12,171				10,353				9,772				12,140				10,508
Other real estate owned			498				941				1,050				755				866
Total nonperforming assets		$	12,669			$	11,294			$	10,822			$	12,895			$	11,374
Total nonperforming loans/total loans			0.61	%			0.52	%			0.49	%			0.63	%			0.54	%
Total nonperforming assets/total assets			0.48	%			0.44	%			0.42	%			0.51	%			0.46	%
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period		$	22,886			$	22,581			$	22,130			$	22,116			$	22,108
Charged-off loans			(1,474	)			(1,331	)			(754	)			(883	)			(3,117	)
Recoveries on charged-off loans			96				386				100				72				65
Net loans charged-off			(1,378	)			(945	)			(654	)			(811	)			(3,052	)
Acquired allowance			—				—				—				—				—
Provision for loan losses			1,400				1,250				1,105				825				3,060
Balance at end of period		$	22,908			$	22,886			$	22,581			$	22,130			$	22,116
Allowance for loan losses/nonperforming loans			188	%			221	%			231	%			182	%			210	%
Allowance for loan losses/total loans			1.14	%			1.15	%			1.14	%			1.14	%			1.14	%
NET LOAN CHARGE-OFFS
Residential mortgages		$	—			$	(119	)		$	—			$	(24	)		$	—
Commercial mortgages			(900	)			(63	)			(131	)			(175	)			—
Commercial business loans			(10	)			(265	)			(121	)			(213	)			(2,683	)
Indirect auto and installment loans			(468	)			(498	)			(402	)			(339	)			(319	)
Home equity			—				—				—				(60	)			(50	)
Total net		$	(1,378	)		$	(945	)		$	(654	)		$	(811	)		$	(3,052	)
Net charge-offs (YTD annualized)/average loans			0.19	%			0.16	%			0.15	%			0.17	%			0.34	%
DELINQUENT LOANS / TOTAL LOANS
30-89 Days delinquent			0.46	%			0.45	%			0.33	%			0.41	%			0.39	%
90 + Days delinquent and still accruing			0.05	%			0.03	%			0.04	%			0.03	%			0.04	%
Total accruing delinquent loans			0.51	%			0.48	%			0.37	%			0.44	%			0.43	%
Nonaccruing loans			0.61	%			0.52	%			0.49	%			0.63	%			0.54	%
Total delinquent loans			1.12	%			1.00	%			0.86	%			1.07	%			0.97	%

F-5

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS

		At or for the Quarters Ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
		2008				2008				2008				2008				2007
PERFORMANCE RATIOS
Core return on tangible assets			0.98	%			1.03	%			1.16	%			1.24	%			0.83	%
Return on total assets			0.79				0.82				0.91				0.97				0.50
Core return on tangible common equity			12.70				15.85				17.89				19.52				12.90
Return on total common equity			5.62				6.26				6.89				7.38				3.74
Net interest margin, fully taxable equivalent			3.41				3.48				3.45				3.41				3.38
Core tangible non-interest income to tangible assets			1.04				1.21				1.47				1.64				1.23
Non-interest income to assets			0.97				1.13				1.36				1.52				1.14
Core tangible non-interest expense to tangible assets			2.68				2.82				2.91				2.95				2.80
Non-interest expense to assets			2.62				2.76				2.97				2.89				2.95
Efficiency ratio			62.24				62.18				61.08				60.12				62.51
YEAR-TO-DATE GROWTH
Total loans			3	%			3	%			4	%			(2	)%			3	%
Total deposits			—				1				(1	)			12				2
Total revenues			21				29				21				19				23
FINANCIAL DATA (In millions)
Total assets		$	2,667			$	2,566			$	2,547			$	2,546			$	2,513
Total loans			2,007				1,992				1,978				1,935				1,944
Total intangible assets			179				180				181				182				182
Total deposits			1,830				1,837				1,811				1,880				1,823
Total stockholders’ equity			408				333				330				329				327
Total stockholders’ common equity			368				333				330				329				327
Total core income			5.2				5.3				5.7				6.0				3.8
Total net income			5.2				5.3				5.7				6.0				3.1
ASSET QUALITY RATIOS
Net charge-offs (annualized)/average loans			0.27	%			0.19	%			0.13	%			0.17	%			0.34	%
Non-performing assets/total assets			0.48				0.44				0.42				0.51				0.45
Loan loss allowance/total loans			1.14				1.15				1.14				1.14				1.14
Loan loss allowance/nonperforming loans			1.88	x			2.21	x			2.31	x			1.82	x			2.10	x
PER SHARE DATA
Core earnings, diluted		$	0.44			$	0.51			$	0.55			$	0.58			$	0.36
Net earnings, diluted			0.44				0.51				0.55				0.58				0.29
Tangible common book value			15.47				14.58				14.36				13.97				13.82
Total common book value			30.07				31.71				31.78				31.38				31.15
Market price at period end			30.86				32.00				23.65				25.19				26.00
Dividends			0.16				0.16				0.16				0.15				0.15
CAPITAL RATIOS
Common stockholders’ equity to total assets			13.82	%			12.97	%			12.96	%			12.91	%			13.00	%
Tangible common stockholders’ equity to tangible assets			7.62				6.41				6.30				6.19				6.22
Stockholders’ equity to total assets			15.32	%			12.97	%			12.96	%			12.91	%			13.00	%
Tangible stockholders’ equity to tangible assets			9.23				6.41				6.30				6.19				6.22

(1)		Reconciliations of Non-GAAP financial measures, including all references to core and tangible amounts, appear on page F-9. Tangible assets are total assets less total intangible assets.
(2)		All performance ratios are annualized and are based on average balance sheet amounts, where applicable.
(3)		The Dec. 31, 2007 total loan annualized year-to-date growth calculations exclude the acquired FAPB balances and $50 million in residential mortgage loans sold during September 07.
(4)		The Dec. 31, 2007 total deposit annualized year-to-date growth calculations both exclude the acquired FAPB balances, $22.7 million in repurchase liabilities converted to deposit accounts, and $21 million in brokered time deposit run-off.

F-6

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
AVERAGE BALANCES

		Quarters Ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
(In thousands)		2008				2008				2008				2008				2007
Assets
Loans
Residential mortgages		$	679,000			$	672,363			$	665,407			$	659,406			$	661,937
Commercial mortgages			808,308				787,543				745,727				712,317				694,339
Commercial business loans			185,434				192,065				196,962				201,433				203,539
Consumer loans			343,894				346,068				354,321				369,659				381,401
Total loans			2,016,636				1,998,039				1,962,417				1,942,815				1,941,216
Securities			304,466				266,720				260,046				254,561				254,847
Short-term investments			15,345				4,384				12,633				16,498				4,526
Total earning assets			2,336,447				2,269,143				2,235,096				2,213,874				2,200,589
Goodwill & other intangible assets			179,187				180,387				181,705				182,895				183,902
Other assets			105,097				105,937				105,109				104,027				105,525
Total assets		$	2,620,731			$	2,555,467			$	2,521,910			$	2,500,796			$	2,490,016
Liabilities and stockholders’ equity
Deposits
NOW		$	196,326			$	193,192			$	202,747			$	208,275			$	207,671
Money market			453,977				447,184				491,945				466,673				422,514
Savings			220,565				221,746				212,680				210,310				212,760
Time			746,913				734,195				705,305				715,026				749,785
Total interest-bearing deposits			1,617,781				1,596,317				1,612,677				1,600,284				1,592,730
Borrowings and debentures			382,015				380,453				343,816				346,475				327,383
Total interest-bearing liabilities			1,999,796				1,976,770				1,956,493				1,946,759				1,920,113
Non-interest-bearing demand deposits			229,175				232,762				221,471				217,355				225,507
Other liabilities			17,566				10,804				10,780				7,079				11,267
Total liabilities			2,246,537				2,220,336				2,188,744				2,171,193				2,156,887
Stockholders’ equity			374,194				335,131				333,166				329,603				333,129
Total liabilities and stockholders’ equity		$	2,620,731			$	2,555,467			$	2,521,910			$	2,500,796			$	2,490,016
Supplementary data
Total non-maturity deposits		$	1,100,043			$	1,094,884			$	1,128,843			$	1,102,613			$	1,068,452
Total deposits			1,846,956				1,829,079				1,834,148				1,817,639				1,818,237
Fully taxable equivalent income adj.			532				532				532				492				541

(1) Average balances for securities available-for-sale are based on amortized cost.

F-7

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
AVERAGE YIELDS (Fully Taxable Equivalent — Annualized)

		Quarters Ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
		2008				2008				2008				2008				2007
Earning assets
Loans
Residential mortgages			5.64	%			5.65	%			5.66	%			5.70	%			5.54	%
Commercial mortgages			6.01				6.24				6.44				6.86				7.34
Commercial business loans			5.99				6.41				6.57				7.55				7.68
Consumer loans			5.46				5.86				6.02				6.58				6.91
Total loans			5.79				5.99				6.11				6.48				6.68
Securities			5.14				5.27				5.39				5.69				5.85
Federal funds sold and short-term investments			0.54				1.45				1.78				2.24				5.25
Total earning assets			5.67				5.89				6.00				6.36				6.56
Funding liabilities
Deposits
NOW			0.52				0.64				0.73				1.09				1.39
Money Market			1.73				1.86				2.14				2.88				3.41
Savings			0.68				0.61				0.71				0.97				1.10
Time			3.54				3.76				4.08				4.43				4.65
Total interest-bearing deposits			2.27				2.41				2.62				3.09				3.42
Borrowings and debentures			4.21				4.27				4.29				4.57				4.70
Total interest-bearing liabilities			2.64				2.77				2.91				3.35				3.64
Net interest spread			3.03				3.12				3.09				3.01				2.92
Net interest margin			3.41				3.48				3.45				3.41				3.38
Cost of funds			2.37				2.48				2.62				3.02				3.26
Cost of deposits			1.99				2.10				2.31				2.72				3.00

(1)		Average balances and yields for securities available-for-sale are based on amortized cost.
(2)		Cost of funds includes all deposits and borrowings.

F-8

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

						At or for the Quarters Ended
						Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)						2008				2008				2008				2008				2007
Net income						$	5,206			$	5,276			$	5,713			$	6,049			$	3,073
Adj: Loss (gain) on sale of securities, net							—				(4	)			26				—				—
Plus: Other non-recurring expense							—				—				683				—				1,198
Adj: Income taxes							—				2				(701	)			—				(468	)
Core income			(A	)			5,206				5,274				5,721				6,049				3,803
Plus: Amort. of intangible assets							838				889				1,019				1,084				1,050
Tangible core income			(B	)		$	6,044			$	6,163			$	6,740			$	7,133			$	4,853
Total non-interest income						$	6,377			$	7,235			$	8,511			$	9,472			$	7,069
Adj: Loss (gain) on sale of securities, net							—				(4	)			26				—				—
Total core non-interest income			(C	)			6,377				7,231				8,537				9,472				7,069
Net interest income							19,470				19,329				18,647				18,294				18,218
Total core revenue			(D	)		$	25,847			$	26,560			$	27,184			$	27,766			$	25,287
Total non-interest expense						$	17,256			$	17,737			$	18,632			$	18,074			$	18,393
Less: Other non-recurring expense							—				—				(683	)			—				(1,198	)
Core non-interest expense			(E	)			17,256				17,737				17,949				18,074				17,195
Less: Amortization of intangible assets							(838	)			(889	)			(1,019	)			(1,084	)			(1,050	)
Total core tangible non-interest expense			(F	)		$	16,418			$	16,848			$	16,930			$	16,990			$	16,145
(Dollars in millions, except per share data)
Total average assets						$	2,621			$	2,555			$	2,522			$	2,501			$	2,490
Less: Average intangible assets							(179	)			(180	)			(182	)			(183	)			(184	)
Total average tangible assets			(G	)		$	2,442			$	2,375			$	2,340			$	2,318			$	2,306
Total average stockholders’ equity						$	374			$	335			$	333			$	330			$	333
Less: Average intangible assets							(179	)			(180	)			(182	)			(183	)			(184	)
Total average tangible stockholders’ equity							195				155				151				147				149
Less: Preferred equity							(6	)			—				—				—				—
Total average tangible common stockholders’ equity			(H	)		$	189			$	155			$	151			$	147			$	149
Total stockholders’ equity, period-end						$	408			$	335			$	330			$	329			$	327
Less: Intangible assets, period-end							(179	)			(180	)			(181	)			(182	)			(182	)
Total tangible stockholders’ equity, period-end							229				155				149				147				145
Less: Preferred equity							(40	)			—				—				—				—
Total tangible common stockholders’ equity, period-end			(I	)		$	189			$	155			$	149			$	147			$	145
Total shares outstanding, period-end (thousands)			(J	)			12,253				10,493				10,385				10,475				10,493
Average diluted shares outstanding (thousands)			(K	)			11,892				10,400				10,384				10,457				10,664
Core earnings per share			(A/K	)		$	0.44			$	0.51			$	0.55			$	0.58			$	0.36
Tangible book value per share			(I/J	)		$	15.47			$	14.58			$	14.36			$	13.97			$	13.82
Core return on tangible assets			(B/G	)			0.98	%			1.03	%			1.16	%			1.24	%			0.84	%
Core return on tangible common equity			(B/H	)			12.70				15.84				17.89				19.52				13.03
Core tangible non-interest income to tang. assets			(C/G	)			1.04				1.21				1.47				1.64				1.23
Core tangible non-interest exp to tang. assets			(F/G	)			2.68				2.82				2.91				2.95				2.80
Efficiency ratio							62.24				62.18				61.08				60.12				62.63

(1)		Efficiency ratio is computed by dividing total tangible core non-interest expense by the sum of total net interest income on a fully taxable equivalent basis and total core non-interest income. The Company uses this non-GAAP measure, which is used widely in the banking industry, to provide important information regarding its operational efficiency.
(2)		Ratios are annualized and based on average balance sheet amounts, where applicable.
(3)		Quarterly data may not sum to year-to-date data due to rounding.

F-9

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

						For years ended
						Dec. 31,
(Dollars in thousands)						2008				2007
Net income						$	22,244			$	13,535
Adj: Loss on sale of securities, net							22				591
Adj: Loss on prepayment of borrowings, net							—				1,180
Adj: Loss on sale of loans, net							—				1,991
Plus: Other non-recurring expense							683				2,956
Adj: Income taxes							(699	)			(2,492	)
Core income			(A	)			22,250				17,761
Plus: Amort. of intangible assets							3,830				3,058
Tangible core income			(B	)		$	26,080			$	20,819
Total non-interest income							31,595			$	24,643
Adj: Loss on sale of securities, net							22				591
Adj: Loss on prepayment of borrowings, net							—				1,180
Adj: Loss on sale of loans, net							—				1,991
Total core non-interest income			(C	)			31,617				28,405
Net interest income							75,740				63,925
Total core revenue			(D	)			107,357			$	92,330
Total non-interest expense							71,699			$	65,494
Less: Other non-recurring expense							(683	)			(2,956	)
Core non-interest expense			(E	)			71,016				62,538
Less: Amortization of intangible assets							(3,830	)			(3,058	)
Total core tangible non-interest expense			(F	)			67,186			$	59,480
(Dollars in millions, except per share data)
Total average assets						$	2,551			$	2,262
Less: Average intangible assets							(180	)			(138	)
Total average tangible assets			(G	)		$	2,371			$	2,124
Total average stockholders’ equity						$	343			$	288
Less: Average intangible assets							(180	)			(138	)
Total average tangible stockholders’ equity							163				150
Less: Preferred equity							(1	)			—
Total average tangible common stockholders’ equity			(H	)		$	162			$	150
Total stockholders’ equity, period-end						$	408			$	327
Less: Intangible assets, period-end							(179	)			(182	)
Total tangible stockholders’ equity, period-end							229				145
Less: Preferred equity							(40	)			—
Total tangible common stockholders’ equity, period-end			(I	)		$	189			$	145
Total shares outstanding, period-end (thousands)			(J	)			12,253				10,493
Average diluted shares outstanding (thousands)			(K	)			10,791				9,370
Core earnings per share			(A/K	)		$	2.06			$	1.90
Tangible book value per share			(I/J	)		$	15.47			$	13.82
Core return on tangible assets			(B/G	)			1.10	%			0.98	%
Core return on tangible common equity			(B/H	)			16.16				13.88
Core tangible non-interest income to tang. assets			(C/G	)			1.33				1.34
Core tangible non-interest exp to tang. assets			(F/G	)			2.83				2.80
Efficiency ratio							61.40				62.94

(1) Efficiency ratio is computed by dividing total tangible core non-interest expense by the sum of total net interest income on a fully taxable equivalent basis and total core non-interest income. The Company uses this non-GAAP measure, which is used widely in the banking industry, to provide important information regarding its operational efficiency.

F-10