Exhibit 99.1

BERKSHIRE HILLS ANNOUNCES SECOND QUARTER RESULTS
Dividend Declared

Pittsfield, MA — July 21, 2009 — Berkshire Hills Bancorp (BHLB) reported second quarter 2009 net income of $2.3 million. The Company’s 2009 second quarter earnings per share totaled $0.24 before an FDIC special assessment and preferred stock dividends. The FDIC levied a special industry assessment which totaled $1.3 million for Berkshire, or $0.06 per share after-tax.

During the most recent quarter, Berkshire recorded a $3.0 million deemed dividend related to the repayment of its preferred stock to the U.S. Treasury. The deemed dividend, together with cash preferred stock dividends and accretion, reduced earnings available to common shareholders by $0.26 per share. After these charges of $0.06 per share for the FDIC assessment and $0.26 per share for preferred dividends, GAAP earnings per common share were ($0.08). The one-time deemed dividend had no impact on cash or on stockholders’ equity.

FINANCIAL HIGHLIGHTS

• Strong growth in targeted loans and deposits

	•		12% annualized second quarter commercial loan growth
	•		3% annualized second quarter deposit growth; 13% annualized first half growth
	•		16% second quarter growth in commercial checking account balances

• Continuing solid loan performance

• 0.42% nonperforming assets/assets and 0.66% accruing delinquent loans/loans at midyear

• 0.45% annualized net charge-offs to average loans in second quarter

• Further expense reductions — 5% decrease in second quarter non-interest expense before FDIC insurance expense (7% increase including FDIC), compared to 2008 second quarter

• Strong capital from common stock raise — 15% common equity to assets

Michael P. Daly, President and Chief Executive Officer, stated, “We made solid progress in building our business in the second quarter and are optimistic about our prospects for sustained growth as we gain share from national competitors. Annualized commercial loan growth moved into double digits, with substantial contributions from our new team in New York; we had another solid quarter of deposit growth, while managing our deposit pricing to minimize the pressure on our net interest margin; and new business generation accelerated in our integrated wealth management and insurance services. Before FDIC insurance expense, we further reduced core non-interest expense, resuming the downward trend in linked quarter core expense begun a year ago. We are positioning our Company for higher earnings when economic conditions normalize. Additionally, our recent loan and securities growth occurred near the end of the second quarter and is expected to benefit net interest income beginning in the third quarter.”

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

Mr. Daly continued, “We successfully issued $32 million in common stock through a public offering in May, following a successful nearly $40 million offering last October. Our strong capital and liquidity position us to be able to participate in expansion opportunities where we feel that the pricing and fit are appropriate. Our New England and New York markets are expected to provide attractive investment opportunities as we pursue growth as the largest locally headquartered regional bank.”

DIVIDEND DECLARED

The Board of Directors maintained the cash dividend on our common stock, declaring a dividend of $0.16 per share to stockholders of record at the close of business on August 6, 2009 and payable on August 20, 2009.

GLOBE 100 AWARD

Berkshire was named in May to the “Globe 100” list of top performing public companies in Massachusetts. The annual Boston Globe survey identifies the best businesses based on growth of revenues, profitability, return on shareholder equity, and size. This is the ninth year in a row that Berkshire has received this recognition, and Berkshire’s ranking was the highest among the local/regional banks which were named. Mr. Daly stated, “We had record earnings in 2008, with 21% growth in revenues and a 64% increase in earnings. This earned us a spot in the top 50 companies named by the Globe. We have a dedicated team of professionals who are delivering the promise of America’s Most Exciting Bank^SM to our customers and communities.”

FINANCIAL CONDITION

Total assets were $2.7 billion at June 30, 2009 which was little changed from the prior quarter and prior year-end. After accumulating short-term investments resulting from first quarter deposit growth, in the second quarter the Company used this liquidity to increase investment securities and pay-down borrowings. Loans declined slightly in both periods due to run-off of auto loans and residential mortgages. Total equity was flat for the first six months, with income and common stock offering proceeds offsetting the repayment of preferred stock.

Short term investments declined to $36 million at mid-year from $113 million at the end of the first quarter. Some of these proceeds were invested in high grade short duration debt securities, bringing total investment securities to $370 million from $344 million during the second quarter.

Total commercial loans increased at a 12% annualized rate in the second quarter of 2009, and at a 4% annualized rate for the first half of the year. Growth was concentrated in commercial real estate loans, which increased by $28 million for the first half of the year. Home equity line outstandings increased by $27 million in the first half of the year due primarily to new originations. Berkshire originates conforming home equity lines to a maximum LTV of 80%. Growth in commercial loans and home equity loans partially offset declines in auto loans and residential mortgages. Auto loans decreased by $32 million to $101 million in the first half of the year due to the planned run-off of the indirect auto portfolio. Residential mortgage loans decreased in the first half of 2009 due to a high volume of refinancings as a result of low fixed rates. Berkshire originated a total of $140 million in residential mortgages in the first half of the year; most of this volume was fixed rate mortgages which were sold to federal agencies.

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

Nonperforming assets decreased to 0.42% of assets at quarter-end, compared to 0.47% at the start of the quarter and 0.48% at the beginning of the year. Performing delinquent loans increased modestly due primarily to higher commercial loan delinquencies. Performing delinquent loans measured 0.66% of total loans at midyear, compared to 0.46% at the start of the quarter and 0.51% at the beginning of the year. Annualized net loan charge-offs measured 0.45% in the second quarter and 0.48% for the first half of the year. The loan loss allowance remained flat at 1.16% of total loans during the quarter.

Total deposits increased by $13 million in the second quarter and $122 million in the first half. Demand deposits grew by $20 million in the second quarter, including 8% annualized growth of personal accounts. NOW account balances decreased primarily due to seasonal decreases in municipal balances. The cost of deposits decreased from 1.99% in the fourth quarter of 2008 to 1.81% in the most recent quarter, reflecting the Company’s pricing strategies and the impact of competitive market pricing floors in the current environment. During the first half of the year, proceeds from deposit growth were primarily used to reduce borrowings, which declined by $77 million over this time.

Total stockholders’ equity was $408 million at mid-year, which was unchanged from year-end 2008. During the second quarter, Berkshire raised $32 million in net proceeds from a public common stock offering and repaid $40 million in preferred stock previously issued to the U.S. Treasury. Additionally, Berkshire paid $1 million to repurchase the common stock warrant issued to the Treasury, thereby ending all involvement with financing from the Treasury. Stockholders’ equity also benefited from $6 million in net income and $6 million in comprehensive income as a result of improved securities prices. The ratio of tangible common equity to assets improved to a strong 9.2% at mid-year, while the ratio of total equity to assets measured 15.2%. Tangible book value per common share improved to $16.52 from $15.73 at the start of the year. Midyear total book value per share measured $29.29, compared to $30.33 at the start of the year.

RESULTS OF OPERATIONS

Second quarter 2009 net income was $2.3 million, compared to $5.7 million in the second quarter of 2008. For the first six months, net income was $6.2 million in 2009 compared to record earnings of $11.8 million in 2008. Major changes in the first six months included decreases of $2.5 million in net interest income and $2.1 million in fee income, together with increases of $3.0 million in FDIC insurance premiums and $2.8 million in the provision for loan losses.

The year-to-year decline in net interest income was due to margin compression. The net interest margin was 2.91% in the second quarter and 3.01% in the first half of 2009, compared to 3.45% and 3.43% in the same periods of 2008, respectively. This decline was primarily due to the impact of near-zero short term interest rates, which reduced the yields on assets, while deposit costs declined less due to competitive market floors. Berkshire is maintaining modest asset interest rate sensitivity in order to benefit from anticipated future interest rate increases. Net interest income also was affected by runoff of indirect auto loans and residential mortgages. Berkshire is exiting the indirect auto loan business; residential mortgage runoff reflects the refinancing of mortgages into fixed rate mortgages sold to federal agencies. Income was also reduced by the elimination in 2009 of dividends from the Federal Home Loan Bank of Boston; these dividends totaled $0.5 million in the first half of 2008. Growth in commercial loans and securities near the end of the second quarter is expected to benefit net interest income beginning in the third quarter.

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

Fee income declined by $1.3 million and $2.1 million year-to-year in the second quarter and first half of 2009 compared to 2008. First half wealth management fees decreased $0.9 million mainly due to lower stock market prices on which these fees are based. Assets under management increased to $681 million in the first half of 2009 as a result of 15% annualized new business generation, and the new business pipeline was strong at mid-year. First half insurance income decreased $1.0 million, primarily reflecting lower contingency income due to changes in industry pricing conditions. Insurance fee income is seasonal, with most contingency income received in the first half of the year. Deposit and loan fee income declined slightly by $0.2 million in the first half. Non-recurring income totaled $1.2 million in 2009, primarily due to $1.0 million in fees related to the June termination of the merger agreement with CNB Financial Corp.

The loan loss provision increased by $1.1 million and $2.8 million year-to-year in the second quarter and first half. The 2009 loan loss provision exceeded net loan charge-offs, which measured an annualized 0.48% of average loans in 2009, increasing from 0.15% in the first half of 2008 primarily due to higher commercial loan charge-offs, which measured a modest 0.64% of average commercial loans in 2009. Second quarter commercial loan charge-offs included $0.6 million related to the Company’s decision to accelerate certain problem asset dispositions.

Total non-interest expense increased by $1.3 million and $1.7 million year-to-year for the second quarter and first half. This increase resulted from FDIC insurance expense increases of $2.3 million and $3.0 million respectively. Second quarter FDIC expense included a $1.3 million special industry assessment ($0.06 per share after tax). Excluding FDIC insurance expense, all other second quarter non-interest expense declined by $1.0 million (5%) in 2009 compared to 2008. The decrease was concentrated in compensation expense for both the second quarter and year-to-date. Non-core expense totaling $0.6 million in the most recent quarter included charges related to the terminated merger agreement with CNB Financial Corp, together with restructuring charges in the new Integrated Services division. The first half effective income tax rate decreased to 26% from 28% year-to-year due to lower pre-tax earnings in 2009.

CONFERENCE CALL

Berkshire will conduct a conference call/webcast at 10:00 A.M. eastern time on Wednesday, July 22, 2009 to discuss this news release and guidance about expected future results. Please call in a few minutes prior to the scheduled time to register for the event. A copy of the presentation for this call will be available prior to the call at www.berkshirebank.com in the investor relations section. 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 through July 29, 2009 by calling 877-344-7529 and entering replay passcode: 431997. The webcast and a podcast will be available at Berkshire’s website above for an extended period of time.

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

BACKGROUND

Berkshire Hills Bancorp is headquartered in Pittsfield, Massachusetts. It has $2.7 billion in assets and is the parent of Berkshire Bank — America’s Most Exciting Bank^SM. The Company provides personal and business banking, insurance, wealth management, and investment services through 48 financial centers in western Massachusetts, northeastern New York, and southern Vermont. Berkshire Bank provides 100% deposit insurance protection, regardless of amount, based on a combination of FDIC insurance and the Depositors Insurance Fund (DIF). 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 2008 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.

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. In the first quarter of 2009, the Company adjusted core earnings per share and core return on tangible common equity to be net of preferred stock dividends. These measures were not adjusted in this manner in the second quarter of 2009. The second quarter deemed dividend was a nonrecurring non-cash charge with no impact on stockholders’ equity and did not reflect a core economic event in the Company’s view. Additionally, the Company held cash at near-zero interest rates in the second quarter while it awaited the approval of the U.S. Treasury to repay the preferred stock. Accordingly, the preferred stock cash dividend and accretion charges were viewed by the Company as non-core one-time charges against income available to common stockholders related to the process of repaying the preferred stock.

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

# # #

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

		June 30,				March 31,				December 31,
(In thousands)		2009				2009				2008
Assets
Total cash and cash equivalents		$	30,746			$	22,887			$	26,582
Fed funds sold & short-term investments			36,037				113,225				18,216
Trading security			16,247				17,565				18,144
Securities available for sale, at fair value			303,546				274,879				274,380
Securities held to maturity, at amortized cost			26,851				27,972				25,872
Federal Home Loan Bank stock and other restricted securities			23,120				23,120				23,120
Total Securities			369,764				343,536				341,516
Loans held for sale			8,901				5,276				1,768
Residential mortgages			627,958				651,507				677,254
Commercial mortgages			833,598				797,363				805,456
Commercial business loans			172,341				179,765				178,934
Consumer loans			334,882				340,743				345,508
Total loans			1,968,779				1,969,378				2,007,152
Less: Allowance for loan losses			(22,917	)			(22,903	)			(22,908	)
Net loans			1,945,862				1,946,475				1,984,244
Premises and equipment, net			36,197				37,029				37,448
Goodwill			161,725				161,725				161,178
Other intangible assets			15,987				16,820				17,652
Cash surrender value of life insurance policies			36,267				35,964				35,668
Other assets			39,600				41,414				42,457
Total assets		$	2,681,086			$	2,724,351			$	2,666,729
Liabilities and stockholders’ equity
Demand deposits		$	257,133			$	237,619			$	233,040
NOW deposits			176,238				199,236				190,828
Money market deposits			506,100				505,937				448,238
Savings deposits			209,232				212,687				211,156
Total non-maturity deposits			1,148,703				1,155,479				1,083,262
Time deposits			802,691				782,601				746,318
Total deposits			1,951,394				1,938,080				1,829,580
Borrowings			281,860				327,160				359,157
Junior subordinated debentures			15,464				15,464				15,464
Derivative liabilities			13,838				22,485				24,068
Due to broker			—				—				19,895
Other liabilities			10,980				8,344				10,140
Total liabilities			2,273,536				2,311,533				2,258,304
Total preferred stockholders’ equity			—				36,959				36,822
Total common stockholders’ equity			407,550				375,859				371,603
Total stockholders’ equity			407,550				412,818				408,425
Total liabilities and stockholders’ equity		$	2,681,086			$	2,724,351			$	2,666,729

F-1

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

LOAN ANALYSIS

		June 30, 2009								March 31, 2009								December 31, 2008
						Quarterly								Quarterly
						Annualized								Annualized
(Dollars in millions)		Balance				Growth %				Balance				Growth %				Balance
Residential mortgages:
Total residential mortgages		$	628				(14	)			651				(16	)			677
Commercial mortgages:
Construction			135				9				132				6				130
Single and multi-family			67				6				66				(23	)			70
Other commercial mortgages			632				22				599				(4	)			605
Total commercial mortgages			834				19				797				(4	)			805
Commercial business loans			172				(18	)			180				2				179
Total commercial loans			1,006				12				977				(3	)			984
Consumer loans:
Auto			101				(52	)			116				(52	)			133
Home equity and other			234				16				225				23				213
Total consumer loans			335				(7	)			341				(6	)			346
Total loans		$	1,969				—	%		$	1,969				(8	)%		$	2,007

DEPOSIT ANALYSIS

		June 30, 2009								March 31, 2009								December 31, 2008
						Quarterly								Quarterly
						Annualized								Annualized
(Dollars in millions)		Balance				Growth %				Balance				Growth %				Balance
Demand		$	257				34	%		$	237				7	%		$	233
NOW			176				(46	)			199				17				191
Money market			506				—				506				53				448
Savings			209				(8	)			213				4				211
Total non-maturity deposits			1,148				(2	)			1,155				27				1,083
Time less than $100,000			403				2				401				6				395
Time $100,000 or more			400				19				382				36				351
Total time deposits			803				10				783				20				746
Total deposits		$	1,951				3	%		$	1,938				24	%		$	1,829

F-2

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

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(In thousands, except per share data)		2009				2008				2009				2008
Interest and dividend income
Loans		$	25,370			$	29,823			$	51,802			$	61,146
Securities and other			3,395				3,011				6,843				6,211
Total interest and dividend income			28,765				32,834				58,645				67,357
Interest expense
Deposits			8,677				10,521				17,150				22,809
Borrowings and junior subordinated debentures			3,364				3,666				7,060				7,607
Total interest expense			12,041				14,187				24,210				30,416
Net interest income			16,724				18,647				34,435				36,941
Non-interest income
Insurance commissions and fees			3,274				3,694				7,843				8,840
Deposit service fees			2,443				2,486				4,679				4,641
Wealth management fees			1,113				1,567				2,302				3,195
Loan service and interest rate swap fees			(136	)			228				255				465
Total fee income			6,694				7,975				15,079				17,141
Other			468				562				820				880
Gain (loss) on sale of securities, net			3				(26	)			1				(26	)
Other non-recurring income			1,240				—				1,177				(12	)
Total non-interest income			8,405				8,511				17,077				17,983
Total net revenue			25,129				27,158				51,512				54,924
Provision for loan losses			2,200				1,105				4,700				1,930
Non-interest expense
Salaries and employee benefits			8,902				9,842				18,254				19,498
Occupancy and equipment			2,859				2,774				5,987				5,742
Marketing, data processing, and professional services			2,233				2,127				4,323				3,986
FDIC premium and special assessment			2,387				54				3,079				108
Other non-recurring expense			601				683				601				683
Amortization of intangible assets			833				1,019				1,666				2,103
Other			2,163				2,133				4,521				4,586
Total non-interest expense			19,978				18,632				38,431				36,706
Income before income taxes			2,951				7,421				8,381				16,288
Income tax expense			620				1,708				2,167				4,526
Net income		$	2,331			$	5,713			$	6,214			$	11,762
Less: Cumulative preferred stock dividend and accretion			393				—				1,030				—
Less: Deemed dividend resulting from preferred stock repayment			2,954				—				2,954				—
Net income available to common stockholders		$	(1,016	)		$	5,713			$	2,230			$	11,762
Basic earnings per common share		$	(0.08	)		$	0.55			$	0.18			$	1.14
Diluted earnings per common share		$	(0.08	)		$	0.55			$	0.18			$	1.13
Weighted average common shares outstanding
Basic			12,946				10,302				12,556				10,344
Diluted			12,946				10,384				12,593				10,420

F-3

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

		Quarters Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
(In thousands, except per share data)		2009				2009				2008				2008				2008
Interest and dividend income
Loans		$	25,370			$	26,432			$	29,343			$	30,078			$	29,823
Securities and other			3,395				3,448				3,419				3,014				3,011
Total interest and dividend income			28,765				29,880				32,762				33,092				32,834
Interest expense
Deposits			8,677				8,473				9,248				9,676				10,521
Borrowings and junior subordinated debentures			3,364				3,696				4,044				4,087				3,666
Total interest expense			12,041				12,169				13,292				13,763				14,187
Net interest income			16,724				17,711				19,470				19,329				18,647
Non-interest income
Insurance commissions and fees			3,274				4,569				2,139				2,640				3,694
Deposit service fees			2,443				2,236				2,623				2,518				2,486
Wealth management fees			1,113				1,189				1,171				1,338				1,567
Loan service and interest rate swap fees			(136	)			391				203				561				228
Total fee income			6,694				8,385				6,136				7,057				7,975
Other			468				352				241				174				562
Gain (loss) on sale of securities, net			3				(2	)			—				4				(26	)
Other non-recurring income			1,240				(63	)			—				—				—
Total non-interest income			8,405				8,672				6,377				7,235				8,511
Total net revenue			25,129				26,383				25,847				26,564				27,158
Provision for loan losses			2,200				2,500				1,400				1,250				1,105
Non-interest expense
Salaries and employee benefits			8,902				9,352				8,988				9,796				9,842
Occupancy and equipment			2,859				3,128				2,736				2,760				2,774
Marketing, data processing, and professional services			2,233				2,090				1,803				2,003				2,127
FDIC premium and special assessment			2,387				692				535				118				54
Other non-recurring expense			601				—				—				—				683
Amortization of intangible assets			833				833				838				889				1,019
Other			2,163				2,358				2,356				2,171				2,133
Total non-interest expense			19,978				18,453				17,256				17,737				18,632
Income before income taxes			2,951				5,430				7,191				7,577				7,421
Income tax expense			620				1,547				1,985				2,301				1,708
Net income		$	2,331			$	3,883			$	5,206			$	5,276			$	5,713
Less: Cumulative preferred stock dividend and accretion			393				637				—				—				—
Less: Deemed dividend resulting from preferred stock repayment			2,954				—				—				—				—
Net income available to common stockholders		$	(1,016	)		$	3,246			$	5,206			$	5,276			$	5,713
Basic earnings per common share		$	(0.08	)		$	0.27			$	0.44			$	0.51			$	0.55
Diluted earnings per common share		$	(0.08	)		$	0.27			$	0.44			$	0.51			$	0.55
Weighted average common shares outstanding
Basic			12,946				12,164				11,804				10,303				10,302
Diluted			12,946				12,247				11,892				10,400				10,384

F-4

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
ASSET QUALITY ANALYSIS

		At or for the Quarters Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
(Dollars in thousands)		2009				2009				2008				2008				2008
NON-PERFORMING ASSETS
Non-accruing loans:
Residential mortgages		$	2,396			$	2,740			$	1,646			$	1,315			$	763
Commercial mortgages			6,087				7,276				7,738				6,178				5,329
Commercial business loans			1,442				1,861				1,921				2,210				3,103
Consumer loans			1,326				587				866				650				577
Total non-accruing loans			11,251				12,464				12,171				10,353				9,772
Other real estate owned			130				371				498				941				1,050
Total non-performing assets		$	11,381			$	12,835			$	12,669			$	11,294			$	10,822
Total non-accruing loans/total loans			0.57	%			0.63	%			0.61	%			0.52	%			0.49	%
Total non-performing assets/total assets			0.42	%			0.47	%			0.48	%			0.44	%			0.42	%
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period		$	22,903			$	22,908			$	22,886			$	22,581			$	22,130
Charged-off loans			(2,291	)			(2,643	)			(1,474	)			(1,331	)			(754	)
Recoveries on charged-off loans			105				138				96				386				100
Net loans charged-off			(2,186	)			(2,505	)			(1,378	)			(945	)			(654	)
Provision for loan losses			2,200				2,500				1,400				1,250				1,105
Balance at end of period		$	22,917			$	22,903			$	22,908			$	22,886			$	22,581
Allowance for loan losses/non-accruing loans			204	%			184	%			188	%			221	%			231	%
Allowance for loan losses/total loans			1.16	%			1.16	%			1.14	%			1.15	%			1.14	%
NET LOAN CHARGE-OFFS
Residential mortgages		$	(27	)		$	(117	)		$	—			$	(119	)		$	—
Commercial mortgages			(755	)			(1,448	)			(900	)			(63	)			(131	)
Commercial business loans			(795	)			(150	)			(10	)			(265	)			(121	)
Consumer loans			(609	)			(790	)			(468	)			(498	)			(402	)
Total, net		$	(2,186	)		$	(2,505	)		$	(1,378	)		$	(945	)		$	(654	)
Net charge-offs (annualized)/average loans			0.45	%			0.51	%			0.27	%			0.19	%			0.13	%
Net charge-offs (YTD annualized)/average loans			0.48	%			0.51	%			0.19	%			0.16	%			0.15	%
DELINQUENT LOANS/TOTAL LOANS
30-89 Days delinquent			0.63	%			0.45	%			0.46	%			0.45	%			0.33	%
90+ Days delinquent and still accruing			0.03	%			0.01	%			0.05	%			0.03	%			0.04	%
Total accruing delinquent loans			0.66	%			0.46	%			0.51	%			0.48	%			0.37	%
Non-accruing loans			0.57	%			0.63	%			0.61	%			0.52	%			0.49	%
Total delinquent loans			1.23	%			1.09	%			1.12	%			1.00	%			0.86	%

F-5

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS

		At or for the Quarters Ended
		June 30,				Mar. 31,				Dec. 31,				Sep. 30,				June 30,
		2009				2009				2008				2008				2008
PERFORMANCE RATIOS
Core return on tangible assets			0.45	%			0.77	%			0.98	%			1.03	%			1.16	%
Return on total assets			0.35				0.59				0.79				0.82				0.91
Core return on tangible common equity			5.23				8.54				12.70				15.85				17.89
Return on total common equity			2.38				3.52				5.62				6.26				6.89
Net interest margin, fully taxable equivalent			2.91				3.11				3.41				3.48				3.45
Core tangible non-interest income to tangible assets			1.15				1.42				1.04				1.21				1.47
Non-interest income to assets			1.26				1.32				0.97				1.13				1.36
Core tangible non-interest expense to tangible assets			2.97				2.86				2.68				2.82				2.91
Non-interest expense to assets			2.99				2.80				2.62				2.76				2.97
Efficiency ratio			75.85				65.23				62.24				62.18				61.08
GROWTH
Total loans, year-to-date (annualized)			(4	)%			(8	)%			3	%			3	%			4	%
Total deposits, year-to-date (annualized)			13				24				—				1				(1	)
Total revenues, year-to-year YTD			(6	)			(5	)			21				29				21
FINANCIAL DATA (In millions)
Total assets		$	2,681			$	2,724			$	2,667			$	2,566			$	2,547
Total loans			1,969				1,969				2,007				1,922				1,978
Total intangible assets			178				179				179				180				181
Total deposits			1,951				1,938				1,830				1,837				1,811
Total stockholders’ equity			408				413				408				333				330
Total common stockholders’ equity			408				376				372				333				330
Total core income			2.0				3.9				5.2				5.3				5.7
Total net income			2.3				3.9				5.2				5.3				5.7
ASSET QUALITY RATIOS
Net charge-offs (annualized)/average loans			0.45	%			0.51	%			0.27	%			0.19	%			0.13	%
Non-performing assets/total assets			0.42				0.47				0.48				0.44				0.42
Loan loss allowance/total loans			1.16				1.16				1.14				1.15				1.14
Loan loss allowance/nonperforming loans			2.04	x			1.84	x			1.88	x			2.21	x			2.31	x
PER COMMON SHARE DATA
Core earnings, diluted		$	0.15			$	0.27			$	0.44			$	0.51			$	0.55
Net earnings, diluted			(0.08	)			0.27				0.44				0.51				0.55
Tangible common book value			16.52				16.02				15.73				14.58				14.36
Total common book value			29.29				30.54				30.33				31.71				31.78
Market price at period end			20.78				22.92				30.86				32.00				23.65
Dividends			0.16				0.16				0.16				0.16				0.16
CAPITAL RATIOS
Common stockholders’ equity to total assets			15.20	%			13.80	%			13.82	%			12.97	%			12.96	%
Tangible common stockholders’ equity to tangible assets			9.18				7.74				7.62				6.41				6.30
Stockholders’ equity to total assets			15.20				15.15				15.32				12.97				12.96
Tangible stockholders’ equity to tangible assets			9.18				9.20				9.23				6.41				6.30

(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.

F-6

BERKSHIRE HILLS BANCORP AND SUBSIDIARIES
AVERAGE BALANCES

		Quarters Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
(In thousands)		2009				2009				2008				2008				2008
Assets
Loans
Residential mortgages		$	637,232			$	675,905			$	679,000			$	672,363			$	665,407
Commercial mortgages			810,421				804,109				808,308				787,543				745,727
Commercial business loans			173,486				173,055				185,434				192,065				196,962
Consumer loans			338,506				343,296				343,894				346,068				354,321
Total loans			1,959,645				1,996,365				2,016,636				1,998,039				1,962,417
Securities			346,274				335,414				304,466				266,720				260,046
Fed funds sold & short-term investments			73,874				49,966				15,345				4,384				12,633
Total earning assets			2,379,793				2,381,745				2,336,447				2,269,143				2,235,096
Goodwill & other intangible assets			178,164				178,711				179,187				180,387				181,705
Other assets			125,446				113,471				105,097				105,937				105,109
Total assets		$	2,683,403			$	2,673,927			$	2,620,731			$	2,555,467			$	2,521,910
Liabilities and stockholders’ equity
Deposits
NOW		$	187,174			$	193,038			$	196,326			$	193,192			$	202,747
Money market			483,302				462,518				453,977				447,184				491,945
Savings			210,678				213,074				220,565				221,746				212,680
Time			795,155				762,940				746,913				734,195				705,305
Total interest-bearing deposits			1,676,309				1,631,570				1,617,781				1,596,317				1,612,677
Borrowings and debentures			310,323				365,833				382,015				380,453				343,816
Total interest-bearing liabilities			1,986,632				1,997,403				1,999,796				1,976,770				1,956,493
Non-interest-bearing demand deposits			251,565				232,480				229,175				232,762				221,471
Other liabilities			30,146				32,960				17,566				10,804				10,780
Total liabilities			2,268,343				2,262,843				2,246,537				2,220,336				2,188,744
Total stockholders’ common equity			392,321				374,207				368,991				335,131				333,166
Total stockholders’ preferred equity			22,739				36,877				5,203				—				—
Total stockholders’ equity			415,060				411,084				374,194				335,131				333,166
Total liabilities and stockholders’ equity		$	2,683,403			$	2,673,927			$	2,620,731			$	2,555,467			$	2,521,910
Supplementary data
Total non-maturity deposits		$	1,132,719			$	1,101,110			$	1,100,043			$	1,094,884			$	1,128,843
Total deposits			1,927,874				1,864,050				1,846,956				1,829,079				1,834,148
Fully taxable equivalent income adj.			562				566				532				532				532

(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
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2009				2009				2008				2008				2008
Earning assets
Loans
Residential mortgages			5.46	%			5.56	%			5.64	%			5.65	%			5.66	%
Commercial mortgages			5.17				5.39				6.01				6.24				6.44
Commercial business loans			5.76				5.96				5.99				6.41				6.57
Consumer loans			4.46				4.64				5.46				5.86				6.02
Total loans			5.19				5.37				5.79				5.99				6.11
Securities			4.58				4.85				5.14				5.27				5.39
Federal funds sold and short-term investments			0.24				0.17				0.54				1.45				1.78
Total earning assets			4.94				5.18				5.67				5.89				6.00
Funding liabilities
Deposits
NOW			0.45				0.40				0.52				0.64				0.73
Money Market			1.42				1.40				1.73				1.86				2.14
Savings			0.34				0.44				0.68				0.61				0.71
Time			3.32				3.43				3.54				3.76				4.08
Total interest-bearing deposits			2.08				2.11				2.27				2.41				2.62
Borrowings and debentures			4.35				4.10				4.21				4.27				4.29
Total interest-bearing liabilities			2.43				2.47				2.64				2.77				2.91
Net interest spread			2.51				2.71				3.03				3.12				3.09
Net interest margin			2.91				3.11				3.41				3.48				3.45
Cost of funds			2.16				2.21				2.37				2.48				2.62
Cost of deposits			1.81				1.84				1.99				2.10				2.31

(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
						June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
(Dollars in thousands)						2009				2009				2008				2008				2008
Net income						$	2,331			$	3,883			$	5,206			$	5,276			$	5,713
Adj: Loss (gain) on sale of securities, net							(3	)			2				—				(4	)			26
Less: Merger termination fee							(970	)			—				—				—				—
Less: Other non-recurring income							(270	)			63				—				—				—
Plus: Merger related expenses							215				—				—				—				—
Plus: Other non-recurring expense							386				—				—				—				683
Adj: Income taxes							269				(27	)			—				2				(701	)
Total core income			(A	)		$	1,958			$	3,921			$	5,206			$	5,274			$	5,721
Plus: Amortization of intangible assets							833				833				838				889				1,019
Total tangible core income			(B	)		$	2,791			$	4,754			$	6,044			$	6,163			$	6,740
Total non-interest income						$	8,405			$	8,672			$	6,377			$	7,235			$	8,511
Adj: Loss (gain) on sale of securities, net							(3	)			2				—				(4	)			26
Less: Merger termination fee							(970	)			—				—				—				—
Less: Other non-recurring income							(270	)			63				—				—				—
Total core non-interest income			(C	)			7,162				8,737				6,377				7,231				8,537
Net interest income							16,724				17,711				19,470				19,329				18,647
Total core revenue			(D	)		$	23,886			$	26,448			$	25,847			$	26,560			$	27,184
Total non-interest expense						$	19,978			$	18,453			$	17,256			$	17,737			$	18,632
Less: Merger related expenses							(215	)			—				—				—				—
Less: Other non-recurring expense							(386	)			—				—				—				(683	)
Core non-interest expense			(E	)			19,377				18,453				17,256				17,737				17,949
Less: Amortization of intangible assets							(833	)			(833	)			(838	)			(889	)			(1,019	)
Total core tangible non-interest expense			(F	)		$	18,544			$	17,620			$	16,418			$	16,848			$	16,930
(Dollars in millions, except per share data)
Total average assets						$	2,683			$	2,674			$	2,621			$	2,555			$	2,522
Less: Average intangible assets							(178	)			(179	)			(179	)			(180	)			(182	)
Total average tangible assets			(G	)		$	2,505			$	2,495			$	2,442			$	2,375			$	2,340
Total average stockholders’ equity						$	415			$	411			$	374			$	335			$	333
Less: Average intangible assets							(178	)			(179	)			(179	)			(180	)			(182	)
Total average tangible stockholders’ equity							237				232				195				155				151
Less: Average preferred equity							(23	)			(37	)			(6	)			—				—
Total average tangible common stockholders’ equity			(H	)		$	214			$	195			$	189			$	155			$	151
Total stockholders’ equity, period-end						$	408			$	413			$	408			$	335			$	330
Less: Intangible assets, period-end							(178	)			(179	)			(179	)			(180	)			(181	)
Total tangible stockholders’ equity, period-end							230				234				229				155				149
Less: Preferred equity, period-end							—				(37	)			(37	)			—				—
Total tangible common stockholders’ equity, period-end			(I	)		$	230			$	197			$	192			$	155			$	149
Total common shares outstanding, period-end (thousands)			(J	)			13,916				12,306				12,253				10,493				10,385
Average diluted common shares outstanding (thousands)			(K	)			12,946				12,247				11,892				10,400				10,384
Core earnings per common share, diluted (1)			(A/K	)		$	0.15			$	0.27			$	0.44			$	0.51			$	0.55
Tangible book value per common share, period-end			(I/J	)		$	16.52			$	16.02			$	15.73			$	14.58			$	14.36
Core return on tangible assets			(B/G	)			0.45	%			0.77	%			0.98	%			1.03	%			1.16
Core return on tangible common equity (1)			(B/H	)			5.23				8.54				12.70				15.85				17.89
Core tangible non-interest income to tangible assets			(C/G	)			1.15				1.42				1.04				1.21				1.47
Core tangible non-interest expense to tangible assets			(F/G	)			2.97				2.86				2.68				2.82				2.91
Efficiency ratio (2)							75.85				65.23				62.24				62.18				61.08

(1)		March 31, 2009 ratios include a $637,000 reduction in core income and tangible core income related to cumulative preferred stock dividend and accretion. Preferred dividend charges recorded in Q2 were deemed non-core due to preferred stock repayment.
(2)		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.
(3)		Ratios are annualized and based on average balance sheet amounts, where applicable.
(4)		Quarterly data may not sum to year-to-date data due to rounding.

Other Non Core Items
Merger Termination Fee from CNB		970

F-9

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

						At or for the Six Months Ended
						June 30,				June 30,
(Dollars in thousands)						2009				2008
Net income						$	6,214			$	11,762
Adj: Loss (gain) on sale of securities, net							(1	)			26
Less: Merger termination fee							(970	)			—
Less: Other non-recurring income							(207	)			—
Plus: Merger related expenses							215				—
Plus: Other non-recurring expense							386				683
Adj: Income taxes							242				(701	)
Total core income			(A	)		$	5,879			$	11,770
Plus: Amortization of intangible assets							1,666				2,103
Total tangible core income			(B	)		$	7,545			$	13,873
Total non-interest income						$	17,077			$	17,983
Adj: Loss (gain) on sale of securities, net							(1	)			26
Less: Merger termination fee							(970	)			—
Less: Other non-recurring income							(207	)			—
Total core non-interest income			(C	)			15,899				18,009
Net interest income							34,435				36,941
Total core revenue			(D	)		$	50,334			$	54,950
Total non-interest expense						$	38,431			$	36,706
Less: Merger related expenses							(215	)			—
Less: Other non-recurring expense							(386	)			(683	)
Core non-interest expense			(E	)			37,830				36,023
Less: Amortization of intangible assets							(1,666	)			(2,103	)
Total core tangible non-interest expense			(F	)		$	36,164			$	33,920
(Dollars in millions, except per share data)
Total average assets						$	2,679			$	2,511
Less: Average intangible assets							(178	)			(182	)
Total average tangible assets			(G	)		$	2,501			$	2,329
Total average stockholders’ equity						$	413			$	331
Less: Average intangible assets							(178	)			(182	)
Total average tangible stockholders’ equity							235				149
Less: Average preferred equity							(30	)			—
Total average tangible common stockholders’ equity			(H	)		$	205			$	149
Total stockholders’ equity, period-end						$	410			$	330
Less: Intangible assets, period-end							(178	)			(181	)
Total tangible stockholders’ equity, period-end							232				149
Less: Preferred equity, period-end							(18	)			—
Total tangible common stockholders’ equity, period-end			(I	)		$	214			$	149
Total common shares outstanding, period-end (thousands)			(J	)			13,916				10,385
Average diluted common shares outstanding (thousands)			(K	)			12,593				10,420
Core earnings per common share, diluted (1)			(A/K	)		$	0.42			$	1.13
Tangible book value per common share, period-end			(I/J	)		$	15.38			$	14.36
Core return on tangible assets			(B/G	)			0.61	%			1.20
Core return on tangible common equity (1)			(B/H	)			7.11				18.52
Core tangible non-interest income to tangible assets			(C/G	)			1.28				1.55
Core tangible non-interest expense to tangible assets			(F/G	)			2.92				2.92
Efficiency ratio (2)							70.27				60.60

(1)		June 30, 2009 ratios include a $637,000 reduction in core income and tangible core income for cumulative preferred stock dividend and accretion accumulated during Q1 2009. Preferred dividend charges recorded in Q2 were deemed non-core due to preferred stock repayment.
(2)		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.
(3)		Ratios are annualized and based on average balance sheet amounts, where applicable.
(4)		Quarterly data may not sum to year-to-date data due to rounding.

Other Non Core Items
Merger Termination Fee from CNB		970

F-10