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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 6, 2003
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BERKSHIRE HILLS BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-15781 04-3510455
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
24 North Street, Pittsfield, Massachusetts 01201
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(Address of principal executive offices)
(413) 443-5601
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 9. REGULATION FD DISCLOSURE.
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In April 2001, Berkshire Bank, the wholly-owned subsidiary of Berkshire
Hills Bancorp, Inc. (the "Company"), established a subsidiary which satisfied
the requirements of a real estate investment trust ("REIT"). The Company
recognized a deduction from Massachusetts income tax equal to 95% of certain
dividend distributions paid by the REIT to Berkshire Bank. In January 2003, the
Massachusetts Department of Revenue notified Berkshire Bank that such deduction
was impermissible and that, as a result, it owed approximately $780,000 of state
taxes for the 2001 tax year. Berkshire Bank has appealed the Department of
Revenue's determination.
On March 5, 2003, a law was passed eliminating the availability of the
deduction on dividends received from a REIT, effective for the tax years
beginning in 1999. As a result, the Company has ceased recording tax benefits
associated with the dividends received deduction effective for the 2003 tax year
and will accrue $513,000 during the first quarter of 2003, representing the
amount of tax benefits realized by the Company through the dividends received
deduction through December 31, 2002, offset by the estimated impact of the
expected deductibility for federal income tax purposes of any amounts assessed
by the Department of Revenue. The accrued amount includes interest that was
assessed by the Department of Revenue. The Company intends to vigorously appeal
the retroactive nature of the law.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BERKSHIRE HILLS BANCORP, INC.
Dated: March 6, 2003 By: /s/ Wayne F. Patenaude
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Wayne F. Patenaude
Senior Vice President, Chief Financial
Officer and Treasurer