Operating EPS of $0.58 increased 5% linked quarter and 16%
year-over-year
- $16 million non-operating gain on
branch sale ($0.30 per share after
tax)
- Operating revenue up 1% linked quarter and 2%
year-over-year
- 14.8% return on tangible common equity; 9.9% operating return
on tangible common equity
- Branch sale and loan sale are expected to further improve
long-term profitability
BOSTON, Oct. 24,
2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc.
(NYSE: BHLB) today reported results for the third quarter of 2024.
These results along with comparison periods are summarized
below:
|
($ in millions, except
per share data)
|
Three Months
Ended
|
|
|
Sept.
30, 2024
|
|
June
30, 2024
|
|
Sept.
30, 2023
|
|
|
|
|
|
|
|
|
Net income
|
$
|
37.5
|
$
|
24.0
|
$
|
19.5
|
|
Per
share
|
|
0.88
|
|
0.57
|
|
0.45
|
|
Operating
earnings1
|
|
24.8
|
|
23.2
|
|
21.5
|
|
Per share
|
|
0.58
|
|
0.55
|
|
0.50
|
|
|
|
|
|
|
|
|
Net interest income,
non FTE
|
$
|
88.1
|
$
|
88.5
|
$
|
90.3
|
|
Net interest income,
FTE
|
|
90.1
|
|
90.5
|
|
92.3
|
|
Net interest margin, FTE
|
|
3.16 %
|
|
3.20 %
|
|
3.18 %
|
|
Non-interest
income
|
|
37.6
|
|
20.1
|
|
17.5
|
|
Operating non-interest
income1
|
|
21.5
|
|
20.1
|
|
17.5
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
|
72.0
|
$
|
70.9
|
$
|
76.5
|
|
Operating non-interest
expense1
|
|
72.3
|
|
71.3
|
|
73.9
|
|
Efficiency
ratio1
|
|
63.7 %
|
|
63.4 %
|
|
65.1 %
|
|
|
|
|
|
|
|
|
Average
balances2
|
|
|
|
|
|
|
|
Loans
|
$
|
9,233
|
$
|
9,157
|
$
|
8,952
|
|
Deposits
|
|
9,360
|
|
9,296
|
|
9,630
|
|
|
|
|
|
|
|
|
Period-end
balances2
|
|
|
|
|
|
|
|
Loans
|
|
9,212
|
|
9,229
|
|
8,984
|
|
Deposits
|
|
9,577
|
|
9,621
|
|
9,981
|
|
|
1. See non-GAAP
financial measures and reconciliation to GAAP measures beginning on
page 12.
2. Loans and deposits
in 2Q24 exclude balances held for sale in branch transaction of $57
million and $483
million respectively
(average), and $55 million and $474 million (end of period). The
branch sale was
completed in 3Q24. End of period loans in 3Q24 exclude $46.5
million in Upstart-related consumer loans
held for sale. This sale was completed on October 16,
2024.
|
Berkshire CEO Nitin Mhatre
stated, "We are pleased to report a robust quarter reflecting
accelerating momentum across key business drivers. Quarterly
operating income has increased sequentially throughout this year
driven by calibrated loan growth, improving credit quality and
continued expense management. Third quarter operating income per
share increased 16% year over year. This quarter also saw
approximately 1% growth in average deposit balances. During the
quarter, we completed the sale of ten branch offices. Including
branch consolidations, the total branch count has been reduced by
14% this year to 83 offices. Also, after quarter-end, the Company's
balance sheet was further strengthened through the sale of
$46.5 million in consumer loans."
Berkshire CFO Brett Brbovic
added, "Operating revenue grew 1% linked quarter and benefited from
loan growth and increased loan related fees. The net interest
margin decreased modestly to 3.16% from 3.20% linked quarter and
3.18% year-over-year. The provision for credit losses decreased
$1.0 million reflecting lower recent
loss trends. Operating expense increased $0.9 million, with lower occupancy and technology
costs offset by higher miscellaneous expenses. The allowance for
credit losses on loans remained steady at 1.22% of total loans.
Capital strength improved, with the tangible common equity ratio
improving to 9.1% from 8.2%."
|
As of and For the
Three Months Ended
|
|
Sept. 30,
2024
|
|
June 30,
2024
|
|
Sept. 30,
2023
|
|
Asset
Quality
|
|
|
|
|
|
|
Net loan charge-offs to
average loans
|
0.24 %
|
|
0.07 %
|
|
0.24 %
|
|
Non-performing loans to
total loans
|
0.26 %
|
|
0.23 %
|
|
0.30 %
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
|
Return on average
assets
|
1.28 %
|
|
0.82 %
|
|
0.66 %
|
|
Operating return on
average assets1
|
0.85 %
|
|
0.79 %
|
|
0.73 %
|
|
Return on tangible
common equity1
|
14.83 %
|
|
9.99 %
|
|
8.45 %
|
|
Operating return on
tangible common equity1
|
9.91 %
|
|
9.65 %
|
|
9.27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios2
|
|
|
|
|
|
|
Tangible common
equity/tangible assets1
|
9.1 %
|
|
8.2 %
|
|
7.7 %
|
|
Tier 1
leverage
|
9.9 %
|
|
9.6 %
|
|
9.8 %
|
|
Common equity Tier
1
|
11.9 %
|
|
11.6 %
|
|
12.1 %
|
|
Tier 1
risk-based
|
12.2 %
|
|
11.9 %
|
|
12.3 %
|
|
Total
risk-based
|
14.4 %
|
|
14.1 %
|
|
14.4 %
|
|
|
1. See non-GAAP
measures and reconciliation to GAAP beginning on page 12. All
performance ratios are annualized and are based on average balance
sheet amounts, where applicable.
2. Presented as
estimated for September 30, 2024 and actual for the remaining
periods.
|
Berkshire Hills Bancorp, Inc. (NYSE: BHLB) is the parent company
of Berkshire Bank, a relationship-driven, community-focused bank
with $11.6 billion in assets and 83
financial centers in New England and New
York. Berkshire is
headquartered in Boston and offers
commercial, retail, wealth, and private banking solutions.
3Q 2024 Financial Highlights (comparisons are to the
prior quarter unless otherwise noted).
Income Statement. GAAP income was $37.5 million, or $0.88 per share. Operating earnings totaled
$24.8 million, or $0.58 per share. GAAP results included the gain
on the completion of the sale of ten New York branches. Operating
income advanced 7% linked quarter including the benefit of higher
operating revenue and a lower provision for credit losses.
- Net interest income totaled $88.1
million in 3Q24 compared to $88.5
million in 2Q24.
- Net interest margin decreased 4 basis points linked quarter to
3.16%.
- The earning asset yield increased 5 basis points.
- The loan yield increased 6 basis points.
- The cost of funds increased 11 basis points.
- The cost of deposits increased 7 basis points.
- Provision for credit losses totaled $5.5
million, a decrease of $1.0
million linked quarter.
- Net loan charge-offs totaling $5.6
million included $3.9 million
in consumer losses which included a $1.9
million charge-off recorded for the Upstart-related consumer
loan sale.
- The net annualized loan charge-off ratio was 0.24%. Excluding
the impact of consumer loans sold, annualized net loan charge-offs
were 0.16% of average third quarter loans.
- GAAP non-interest income of $37.6
million included a $16.0
million non-operating gain on the New York branch sale. Operating non-interest
income totaled $21.5 million, an
increase of 7% linked quarter.
- Linked quarter growth was primarily in loan related fees which
increased 36% including higher interest rate swap income and
commercial loan servicing fees.
- All other fee income categories increased except gains on SBA
sales, which remained strong following a recent high in the linked
quarter.
- Non-interest expense totaled $72.0
million on a GAAP basis and $72.3
million on an operating basis. Operating non-interest
expense increased 1% linked quarter and decreased 2%
year-over-year.
- Compensation and benefits expense increased $0.5 million linked quarter.
- Occupancy, equipment, and technology expense decreased
$0.9 million.
- The category of other expense increased $1.6 million primarily due to one commercial
check fraud.
- The efficiency ratio was 63.7% compared to 63.4% linked
quarter.
- The effective tax rate was 22% for the quarter and the
year-to-date.
Loans. Total loans decreased $16
million linked quarter to $9.21
billion due to the $46.5
million transfer of Upstart-related consumer loans to held
for sale. Adjusted for this transfer, total loans increased by
$30 million.
- Commercial real estate loans increased $35 million to $4.74
billion.
- Commercial and industrial loans decreased $12 million to $1.41
billion.
- Residential mortgage loans increased $14
million to $2.69 billion.
- Consumer loans decreased $53
million to $372 million due to
the pending Upstart loan sale. This sale was completed on
October 16, 2024. The remaining
balance of Upstart-related loans was $10
million at quarter-end.
- The allowance for credit losses on loans to total loans was
1.22% at September 30, 2024,
unchanged from the prior quarter-end.
- Non-performing loans to total loans was 0.26% at September 30, 2024, compared to 0.23% at prior
quarter-end.
Deposits. Total deposits decreased $44 million to $9.58
billion. Total average deposits increased $64 million, or 1%, to $9.36 billion. Deposits decreased year-over-year
due to the branch sale.
- Non-interest bearing deposits increased $46 million to $2.26
billion, increasing to 24% of total deposits from 23%.
- Non-maturity interest bearing deposits decreased $260 million to $4.79
billion.
- Time deposits increased $170
million to $2.52 billion.
Equity. Total shareholders' equity increased
$58 million to $1.07 billion. Book value per share increased 6%
to $24.90 and tangible book value per
share increased 6% to $24.53.
Accumulated other comprehensive income increased $25 million, reflecting lower market interest
rates at period-end.
3Q 2024 Corporate Responsibility and Sustainability
Highlights
- Berkshire was recognized as a
Top Charitable Contributor by the Boston Business Journal for
the 12th consecutive year and named to Newsweek's list
of America's Greatest Workplaces.
- Berkshire maintained its top
quartile environmental, social and governance performance in the
banking sector and was listed as an "Outperformer" in the R-Factor™
rating as of October 2024.
- The Bank achieved targets for lending in low-moderate income
communities, increasing minority homeownership, and support for
green projects through its multi-year Community Comeback
program.
Conference Call and Investor Presentation.
Berkshire will conduct a conference
call/webcast at 9:00 a.m. eastern time on
Thursday, October 24, 2024 to discuss
results for the quarter and provide guidance about expected future
results. Instructions for listening to the call may be found
at the Company's website at ir.berkshirebank.com. Additional
materials relating to the call may also be accessed at this
website. The call will be archived at the website and will be
available for an extended period of time.
Forward Looking Statements: This document contains
"forward-looking statements" within the meaning of section 27A of
the Securities Act of 1933, as amended, and section 21E of the
Securities Exchange Act of 1934, as amended. You can identify these
statements from the use of the words "may," "will," "should,"
"could," "would," "plan," "potential," "estimate," "project,"
"believe," "intend," "anticipate," "expect," "remain," "target" and
similar expressions. There are many factors that could cause actual
results to differ significantly from expectations described in the
forward-looking statements. For a discussion of such factors,
please see the sections titled "Forward-Looking Statements" and
"Risk Factors" in Berkshire's most
recent reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission and available on the SEC's website at
www.sec.gov. You should not place undue reliance on forward-looking
statements, which reflect our expectations only as of the date of
this document. Berkshire does not
undertake any obligation to update forward-looking statements.
INVESTOR CONTACT
Kevin
Conn
Investor Relations
617.641.9206
kaconn@berkshirebank.com
MEDIA CONTACT
Gary
Levante
Corporate Communications
413.447.1737
glevante@berkshirebank.com
|
BERKSHIRE HILLS
BANCORP, INC.
SELECTED FINANCIAL
HIGHLIGHTS (1)
|
|
|
At or for the Quarters
Ended
|
|
|
Sept.
30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss) per
common share, diluted
|
$
0.88
|
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
|
Operating earnings per
common share, diluted (2)(3)
|
0.58
|
|
0.55
|
|
0.49
|
|
0.47
|
|
0.50
|
|
|
Net income/(loss),
(thousands)
|
37,509
|
|
24,025
|
|
(20,188)
|
|
(1,445)
|
|
19,545
|
|
|
Operating net income,
(thousands) (2)(3)
|
24,789
|
|
23,168
|
|
20,934
|
|
20,190
|
|
21,516
|
|
|
Net interest income,
(thousands) non FTE
|
88,059
|
|
88,532
|
|
88,140
|
|
88,421
|
|
90,334
|
|
|
Net interest income,
FTE (5)
|
90,082
|
|
90,545
|
|
90,146
|
|
90,442
|
|
92,314
|
|
|
Total common shares
outstanding, end of period (thousands)
|
42,982
|
|
42,959
|
|
43,415
|
|
43,501
|
|
43,822
|
|
|
Average diluted shares,
(thousands)
|
42,454
|
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
|
Total book value per
common share, end of period
|
24.90
|
|
23.58
|
|
23.26
|
|
23.27
|
|
21.70
|
|
|
Tangible book value per
common share, end of period (2)(3)
|
24.53
|
|
23.18
|
|
22.84
|
|
22.82
|
|
21.23
|
|
|
Dividends declared per
common share
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
|
Dividend payout ratio
(7)
|
20.63
|
%
|
32.74
|
%
|
N/M
|
%
|
N/M
|
%
|
40.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS (4)
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
14.29
|
%
|
9.49
|
%
|
(7.93)
|
%
|
(0.60)
|
%
|
7.91
|
%
|
|
Operating return on
equity (2)(3)
|
9.44
|
|
9.15
|
|
8.23
|
|
8.36
|
|
8.71
|
|
|
Return on tangible
common equity (2)(3)
|
14.83
|
|
9.99
|
|
(7.73)
|
|
(0.24)
|
|
8.45
|
|
|
Operating return on
tangible common equity (2)(3)
|
9.91
|
|
9.65
|
|
8.73
|
|
8.90
|
|
9.27
|
|
|
Return on
assets
|
1.28
|
|
0.82
|
|
(0.69)
|
|
(0.05)
|
|
0.66
|
|
|
Operating return on
assets (2)(3)
|
0.85
|
|
0.79
|
|
0.71
|
|
0.68
|
|
0.73
|
|
|
Net interest margin,
FTE (5)
|
3.16
|
|
3.20
|
|
3.15
|
|
3.11
|
|
3.18
|
|
|
Efficiency ratio
(3)
|
63.74
|
|
63.40
|
|
66.26
|
|
67.77
|
|
65.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions, end of period)
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
11,605
|
|
$ 12,219
|
|
$ 12,147
|
|
$ 12,431
|
|
$ 12,140
|
|
|
Total earning
assets
|
10,922
|
|
11,510
|
|
11,430
|
|
11,705
|
|
11,400
|
|
|
Total loans
|
|
9,212
|
|
9,229
|
|
9,086
|
|
9,040
|
|
8,984
|
|
|
Total funding
liabilities
|
10,285
|
|
10,907
|
|
10,826
|
|
11,140
|
|
10,906
|
|
|
Total
deposits
|
|
9,577
|
|
9,621
|
|
9,883
|
|
10,633
|
|
9,981
|
|
|
Loans/deposits
(%)
|
96
|
%
|
96
|
%
|
92
|
%
|
85
|
%
|
90
|
%
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
$
(89)
|
|
$
(115)
|
|
$
(114)
|
|
$
(143)
|
|
$
(218)
|
|
|
Total shareholders'
equity
|
1,070
|
|
1,013
|
|
1,010
|
|
1,012
|
|
951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
112
|
|
$
112
|
|
$
107
|
|
$
105
|
|
$
103
|
|
|
Net charge-offs,
(millions)
|
(6)
|
|
(2)
|
|
(4)
|
|
(4)
|
|
(5)
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.24
|
%
|
0.07
|
%
|
0.18
|
%
|
0.20
|
%
|
0.24
|
%
|
|
Provision
(benefit)/expense, (millions)
|
$
6
|
|
$
6
|
|
$
6
|
|
$
7
|
|
$
8
|
|
|
Non-performing assets,
(millions)
|
27
|
|
24
|
|
24
|
|
24
|
|
29
|
|
|
Non-performing
loans/total loans
|
0.26
|
%
|
0.23
|
%
|
0.24
|
%
|
0.24
|
%
|
0.30
|
%
|
|
Allowance for credit
losses/non-performing loans
|
467
|
|
525
|
|
500
|
|
492
|
|
386
|
|
|
Allowance for credit
losses/total loans
|
1.22
|
|
1.22
|
|
1.18
|
|
1.17
|
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets,
(millions)(6)
|
$
9,638
|
|
$
9,604
|
|
$
9,615
|
|
$
9,552
|
|
$
9,594
|
|
|
Common equity Tier 1
capital to risk weighted assets (6)
|
11.9
|
%
|
11.6
|
%
|
11.6
|
%
|
12.0
|
%
|
12.1
|
%
|
|
Tier 1 capital leverage
ratio (6)
|
9.9
|
|
9.6
|
|
9.5
|
|
9.6
|
|
9.8
|
|
|
Tangible common
shareholders' equity/tangible assets (3)
|
9.1
|
|
8.2
|
|
8.2
|
|
8.0
|
|
7.7
|
|
|
|
|
|
|
(1) All financial
tables presented are unaudited.
(2) Reconciliations of
non-GAAP financial measures, including all references to operating
and tangible amounts, appear on pages 13 and 14.
(3) Non-GAAP financial
measure. Operating measurements are non-GAAP financial measures
that are adjusted to exclude net non-operating charges primarily
related to acquisitions and restructuring activities. See pages 13
and 14 for reconciliations of non-GAAP financial
measures.
(4) All performance
ratios are annualized and are based on average balance sheet
amounts, where applicable.
(5) Fully taxable
equivalent considers the impact of tax advantaged investment
securities and loans.
(6) Presented
as projected for September 30, 2024 and actual for the remaining
periods.
(7) Dividend payout
ratio is based on dividends declared.
|
|
CONSOLIDATED BALANCE
SHEETS
BERKSHIRE HILLS BANCORP, INC.
|
|
September
30,
|
June 30,
|
December 31,
|
September
30,
|
|
(in
thousands)
|
2024
|
2024
|
2023
|
2023
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
134,056
|
$
112,085
|
$
148,148
|
$
120,634
|
|
Short-term
investments
|
435,911
|
988,207
|
1,055,096
|
542,836
|
|
Total cash and cash
equivalents
|
569,967
|
1,100,292
|
1,203,244
|
663,470
|
|
|
|
|
|
|
Trading securities, at
fair value
|
5,560
|
5,699
|
6,142
|
6,171
|
|
Equity securities, at
fair value
|
13,278
|
12,736
|
13,029
|
12,325
|
|
Securities available
for sale, at fair value
|
661,740
|
611,711
|
1,022,285
|
1,260,391
|
|
Securities held to
maturity, at amortized cost
|
512,277
|
520,239
|
543,351
|
552,981
|
|
Federal Home Loan Bank
stock
|
30,685
|
35,010
|
22,689
|
38,912
|
|
Total
securities
|
1,223,540
|
1,185,395
|
1,607,496
|
1,870,780
|
|
Less: Allowance for
credit losses on investment securities
|
(65)
|
(65)
|
(68)
|
(69)
|
|
Net
securities
|
1,223,475
|
1,185,330
|
1,607,428
|
1,870,711
|
|
|
|
|
|
|
Loans held for
sale
|
50,634
|
52,072
|
2,237
|
2,342
|
|
|
|
|
|
|
Commercial real estate
loans
|
4,741,689
|
4,706,810
|
4,527,012
|
4,453,573
|
|
Commercial and
industrial loans
|
1,409,538
|
1,421,921
|
1,352,834
|
1,384,038
|
|
Residential
mortgages
|
2,688,709
|
2,674,611
|
2,672,677
|
2,640,210
|
|
Consumer
loans
|
372,386
|
425,184
|
487,163
|
506,556
|
|
Total loans
|
9,212,322
|
9,228,526
|
9,039,686
|
8,984,377
|
|
Less: Allowance for
credit losses on loans
|
(112,047)
|
(112,167)
|
(105,357)
|
(102,792)
|
|
Net loans
|
9,100,275
|
9,116,359
|
8,934,329
|
8,881,585
|
|
|
|
|
|
|
Premises and equipment,
net
|
54,667
|
55,893
|
68,915
|
70,042
|
|
Other intangible
assets
|
16,192
|
17,319
|
19,664
|
20,869
|
|
Other assets
|
582,422
|
615,882
|
584,066
|
619,777
|
|
Assets held for
sale
|
6,930
|
76,307
|
10,938
|
11,157
|
|
Total assets
|
$
11,604,562
|
$
12,219,454
|
$
12,430,821
|
$
12,139,953
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Non-interest bearing
deposits
|
$
2,267,595
|
$
2,222,012
|
$
2,469,164
|
$
2,530,441
|
|
NOW and other
deposits
|
748,737
|
766,641
|
858,644
|
843,032
|
|
Money market
deposits
|
3,042,712
|
3,278,753
|
3,565,516
|
3,075,307
|
|
Savings
deposits
|
998,549
|
1,004,320
|
1,053,810
|
1,086,329
|
|
Time
deposits
|
2,519,896
|
2,349,733
|
2,686,250
|
2,445,435
|
|
Total
deposits
|
9,577,489
|
9,621,459
|
10,633,384
|
9,980,544
|
|
|
|
|
|
|
Federal Home Loan Bank
advances
|
585,542
|
689,606
|
385,223
|
804,295
|
|
Subordinated
borrowings
|
121,549
|
121,487
|
121,363
|
121,300
|
|
Total
borrowings
|
707,091
|
811,093
|
506,586
|
925,595
|
|
|
|
|
|
|
Other
liabilities
|
249,531
|
287,312
|
278,630
|
282,805
|
|
Liabilities held for
sale
|
-
|
486,648
|
-
|
-
|
|
Total
liabilities
|
10,534,111
|
11,206,512
|
11,418,600
|
11,188,944
|
|
|
|
|
|
|
Common shareholders'
equity
|
1,070,451
|
1,012,942
|
1,012,221
|
951,009
|
|
Total shareholders'
equity
|
1,070,451
|
1,012,942
|
1,012,221
|
951,009
|
|
Total liabilities and
shareholders' equity
|
$
11,604,562
|
$
12,219,454
|
$
12,430,821
|
$
12,139,953
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
(in thousands,
except per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Interest
income
|
$
157,268
|
|
$
148,021
|
|
$
463,383
|
|
$
425,762
|
|
Interest
expense
|
69,209
|
|
57,687
|
|
198,652
|
|
145,136
|
|
Net interest income,
non FTE
|
88,059
|
|
90,334
|
|
264,731
|
|
280,626
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
8,656
|
|
8,792
|
|
25,522
|
|
25,674
|
|
Loan related
fees
|
3,214
|
|
2,879
|
|
8,241
|
|
8,537
|
|
Gain on SBA
loans
|
3,020
|
|
2,548
|
|
8,013
|
|
7,952
|
|
Wealth management
fees
|
2,685
|
|
2,481
|
|
8,182
|
|
7,803
|
|
Fair value adjustments
on securities
|
516
|
|
(467)
|
|
359
|
|
(255)
|
|
Other
|
3,416
|
|
1,232
|
|
8,633
|
|
1,454
|
|
Total non-interest
income excluding gains and losses
|
21,507
|
|
17,465
|
|
58,950
|
|
51,165
|
|
Gain on sale of
business operations and assets, net
|
16,048
|
|
-
|
|
16,048
|
|
-
|
|
(Loss) on sale of AFS
securities
|
-
|
|
-
|
|
(49,909)
|
|
-
|
|
Total non-interest
income
|
37,555
|
|
17,465
|
|
25,089
|
|
51,165
|
|
Total net
revenue
|
125,614
|
|
107,799
|
|
289,820
|
|
331,791
|
|
|
|
|
|
|
|
|
|
Provision expense for
credit losses
|
5,500
|
|
8,000
|
|
17,999
|
|
24,999
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
40,663
|
|
40,155
|
|
121,524
|
|
119,186
|
|
Occupancy and
equipment
|
7,373
|
|
8,816
|
|
24,135
|
|
27,165
|
|
Technology
|
10,014
|
|
10,616
|
|
30,154
|
|
30,552
|
|
Professional
services
|
2,109
|
|
2,423
|
|
7,542
|
|
8,226
|
|
Regulatory
expenses
|
1,851
|
|
1,905
|
|
5,544
|
|
5,165
|
|
Amortization of
intangible assets
|
1,128
|
|
1,205
|
|
3,473
|
|
3,615
|
|
Marketing
|
861
|
|
1,552
|
|
2,509
|
|
4,270
|
|
Merger, restructuring
and other non-operating expenses
|
(297)
|
|
2,607
|
|
2,936
|
|
2,592
|
|
Other
expenses
|
8,258
|
|
7,234
|
|
21,094
|
|
21,745
|
|
Total non-interest
expense
|
71,960
|
|
76,513
|
|
218,911
|
|
222,516
|
|
Total non-interest
expense excluding non-operating expenses
|
72,257
|
|
73,906
|
|
215,975
|
|
219,924
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
48,154
|
|
$
23,286
|
|
$
52,910
|
|
$
84,276
|
|
Income tax
expense
|
10,645
|
|
3,741
|
|
11,564
|
|
13,233
|
|
Net
income
|
$
37,509
|
|
$
19,545
|
|
$
41,346
|
|
$
71,043
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.89
|
|
$
0.45
|
|
$
0.97
|
|
$
1.64
|
|
Diluted earnings per
common share
|
$
0.88
|
|
$
0.45
|
|
$
0.97
|
|
$
1.63
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
42,170
|
|
43,164
|
|
42,456
|
|
43,435
|
|
Diluted
|
42,454
|
|
43,347
|
|
42,658
|
|
43,640
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (5 Quarter
Trend)
|
|
|
Sept.
30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in thousands,
except per share data)
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
Interest
income
|
|
$
157,268
|
|
$ 154,109
|
|
$ 152,006
|
|
$ 150,537
|
|
$ 148,021
|
|
Interest
expense
|
|
69,209
|
|
65,577
|
|
63,866
|
|
62,116
|
|
57,687
|
|
Net interest income,
non FTE
|
|
88,059
|
|
88,532
|
|
88,140
|
|
88,421
|
|
90,334
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
|
8,656
|
|
8,561
|
|
8,305
|
|
8,481
|
|
8,792
|
|
Loan related
fees
|
|
3,214
|
|
2,364
|
|
2,663
|
|
2,058
|
|
2,879
|
|
Gain on SBA
loans
|
|
3,020
|
|
3,294
|
|
1,699
|
|
2,382
|
|
2,548
|
|
Wealth management
fees
|
|
2,685
|
|
2,613
|
|
2,884
|
|
2,394
|
|
2,481
|
|
Fair value adjustments
on securities
|
|
516
|
|
(42)
|
|
(115)
|
|
768
|
|
(467)
|
|
Other
|
|
3,416
|
|
3,343
|
|
1,874
|
|
591
|
|
1,232
|
|
Total non-interest
income excluding gains and losses
|
|
21,507
|
|
20,133
|
|
17,310
|
|
16,674
|
|
17,465
|
|
Gain on sale of
business operations and assets, net
|
|
16,048
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Loss on sale of AFS
securities
|
|
-
|
|
-
|
|
(49,909)
|
|
(25,057)
|
|
-
|
|
Total non-interest
income
|
|
37,555
|
|
20,133
|
|
(32,599)
|
|
(8,383)
|
|
17,465
|
|
Total net
revenue
|
|
125,614
|
|
108,665
|
|
55,541
|
|
80,038
|
|
107,799
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision expense for
credit losses
|
|
5,500
|
|
6,499
|
|
6,000
|
|
7,000
|
|
8,000
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
40,663
|
|
40,126
|
|
40,735
|
|
40,095
|
|
40,155
|
|
Occupancy and
equipment
|
|
7,373
|
|
8,064
|
|
8,698
|
|
8,553
|
|
8,816
|
|
Technology
|
|
10,014
|
|
10,236
|
|
9,904
|
|
11,326
|
|
10,616
|
|
Professional
services
|
|
2,109
|
|
2,757
|
|
2,676
|
|
3,417
|
|
2,423
|
|
Regulatory
expenses
|
|
1,851
|
|
1,848
|
|
1,845
|
|
1,854
|
|
1,905
|
|
Amortization of
intangible assets
|
|
1,128
|
|
1,140
|
|
1,205
|
|
1,205
|
|
1,205
|
|
Marketing
|
|
861
|
|
532
|
|
1,116
|
|
1,107
|
|
1,552
|
|
Merger, restructuring
and other non-operating expenses
|
|
(297)
|
|
(384)
|
|
3,617
|
|
3,669
|
|
2,607
|
|
Other
expenses
|
|
8,258
|
|
6,612
|
|
6,224
|
|
7,766
|
|
7,234
|
|
Total non-interest
expense
|
|
71,960
|
|
70,931
|
|
76,020
|
|
78,992
|
|
76,513
|
|
Total non-interest
expense excluding non-operating expenses
|
|
72,257
|
|
71,315
|
|
72,403
|
|
75,323
|
|
73,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
|
$
48,154
|
|
$
31,235
|
|
$
(26,479)
|
|
$
(5,954)
|
|
$
23,286
|
|
Income tax
expense/(benefit)
|
|
10,645
|
|
7,210
|
|
(6,291)
|
|
(4,509)
|
|
3,741
|
|
Net
income/(loss)
|
|
$
37,509
|
|
$
24,025
|
|
$
(20,188)
|
|
$
(1,445)
|
|
$
19,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss)
per common share
|
|
$
0.88
|
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,170
|
|
42,437
|
|
42,777
|
|
42,852
|
|
43,164
|
|
Diluted
|
|
42,454
|
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
AVERAGE BALANCES AND AVERAGE YIELDS AND COSTS
|
|
Quarters
Ended
|
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
|
|
|
|
|
|
(in
millions)
|
|
Average
Balance
|
Interest
(1)
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Interest (1)
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Interest (1)
|
Average
Yield/Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
4,717
|
$
79
|
6.54
|
%
|
|
$
4,649
|
$
77
|
6.52
|
%
|
|
$
4,385
|
$
71
|
6.32
|
%
|
|
Commercial and
industrial loans
|
|
1,380
|
27
|
7.79
|
|
|
1,384
|
27
|
7.62
|
|
|
1,436
|
27
|
7.48
|
|
|
Residential
mortgages
|
|
2,712
|
30
|
4.31
|
|
|
2,694
|
28
|
4.21
|
|
|
2,618
|
26
|
3.97
|
|
|
Consumer
loans
|
|
424
|
8
|
7.43
|
|
|
430
|
8
|
7.47
|
|
|
513
|
9
|
7.33
|
|
|
Total
loans
|
|
9,233
|
144
|
6.11
|
|
|
9,157
|
140
|
6.05
|
|
|
8,952
|
133
|
5.88
|
|
|
Securities
(2)
|
|
1,340
|
8
|
2.49
|
|
|
1,332
|
8
|
2.44
|
|
|
2,171
|
13
|
2.40
|
|
|
Short-term investments
and loans held for sale
|
|
563
|
7
|
4.98
|
|
|
597
|
8
|
5.07
|
|
|
267
|
3
|
4.76
|
|
|
New York branch loans
held for sale (3)
|
|
31
|
0
|
5.44
|
|
|
57
|
1
|
5.86
|
|
|
-
|
-
|
-
|
|
|
Total earning
assets
|
|
11,167
|
159
|
5.62
|
|
|
11,143
|
157
|
5.57
|
|
|
11,390
|
149
|
5.19
|
|
|
Goodwill and other
intangible assets
|
|
17
|
|
|
|
|
18
|
|
|
|
|
21
|
|
|
|
|
Other assets
|
|
511
|
|
|
|
|
531
|
|
|
|
|
449
|
|
|
|
|
Total
assets
|
|
$
11,695
|
|
|
|
|
$
11,692
|
|
|
|
|
$
11,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
2,250
|
$
-
|
-
|
%
|
|
$
2,244
|
$
-
|
-
|
%
|
|
$
2,553
|
$
0
|
-
|
%
|
|
NOW and
other
|
|
743
|
3
|
1.54
|
|
|
763
|
3
|
1.44
|
|
|
858
|
2
|
1.15
|
|
|
Money market
|
|
2,935
|
25
|
3.35
|
|
|
2,909
|
24
|
3.32
|
|
|
2,697
|
18
|
2.69
|
|
|
Savings
|
|
1,002
|
3
|
1.17
|
|
|
1,004
|
3
|
1.06
|
|
|
1,082
|
2
|
0.77
|
|
|
Time
|
|
2,430
|
26
|
4.31
|
|
|
2,376
|
25
|
4.22
|
|
|
2,440
|
22
|
3.43
|
|
|
Total
deposits
|
|
9,360
|
57
|
2.42
|
|
|
9,296
|
55
|
2.35
|
|
|
9,630
|
44
|
1.81
|
|
|
Borrowings
(4)
|
|
782
|
11
|
5.44
|
|
|
610
|
9
|
5.55
|
|
|
1,010
|
14
|
5.32
|
|
|
New York branch
non-interest-bearing deposits held for sale (3)
|
51
|
-
|
-
|
|
|
97
|
-
|
-
|
|
|
-
|
-
|
-
|
|
|
New York branch
interest-bearing deposits held for sale (3)
|
|
207
|
1
|
2.87
|
|
|
386
|
3
|
2.80
|
|
|
-
|
-
|
-
|
|
|
Total funding
liabilities
|
|
10,400
|
69
|
2.64
|
|
|
10,389
|
67
|
2.53
|
|
|
10,640
|
58
|
2.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
245
|
|
|
|
|
290
|
|
|
|
|
232
|
|
|
|
|
Total
liabilities
|
|
10,645
|
|
|
|
|
10,679
|
|
|
|
|
10,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity (5)
|
|
1,050
|
|
|
|
|
1,013
|
|
|
|
|
988
|
|
|
|
|
Total shareholders'
equity
|
|
1,050
|
|
|
|
|
1,013
|
|
|
|
|
988
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
11,695
|
|
|
|
|
$
11,692
|
|
|
|
|
$
11,860
|
|
|
|
|
Net interest margin,
FTE
|
|
|
|
3.16
|
|
|
|
|
3.20
|
|
|
|
|
3.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
non FTE
|
|
88.059
|
|
|
|
|
88.532
|
|
|
|
|
90.334
|
|
|
|
|
FTE income
adjustment
|
|
2.023
|
|
|
|
|
2.013
|
|
|
|
|
1.980
|
|
|
|
|
Net Interest Income,
FTE
|
|
90.082
|
|
|
|
|
90.545
|
|
|
|
|
92.314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income and
expense presented on a fully taxable equivalent
basis.
(2) Average balances
for securities available-for-sale are based on amortized
cost.
(3) New York branch
loans and deposits moved to held for sale on March 4,
2024.
(4) Average balances
for borrowings includes the financing lease obligation which is
presented under other liabilities on the consolidated balance
sheet.
(5) Unrealized gains
and losses, net of tax, are included in average equity. Prior
period balances and financial metrics have been updated to reflect
the current presentation.
|
|
BERKSHIRE HILLS BANCORP, INC.
ASSET QUALITY ANALYSIS
|
|
At or for the Quarters
Ended
|
|
Sept.
30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
(in
thousands)
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
10,270
|
|
$
5,976
|
|
$
4,762
|
|
$
4,453
|
|
$
5,288
|
|
|
Commercial and
industrial loans
|
8,227
|
|
8,489
|
|
9,174
|
|
8,712
|
|
11,028
|
|
|
Residential
mortgages
|
4,348
|
|
5,491
|
|
5,992
|
|
6,404
|
|
8,060
|
|
|
Consumer
loans
|
1,124
|
|
1,392
|
|
1,526
|
|
1,838
|
|
2,260
|
|
|
Total non-performing
loans
|
23,969
|
|
21,348
|
|
21,454
|
|
21,407
|
|
26,636
|
|
|
Repossessed
assets
|
2,563
|
|
2,549
|
|
2,689
|
|
2,601
|
|
2,548
|
|
|
Total non-performing
assets
|
$
26,532
|
|
$
23,897
|
|
$
24,143
|
|
$
24,008
|
|
$
29,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans/total loans
|
0.26 %
|
|
0.23 %
|
|
0.24 %
|
|
0.24 %
|
|
0.30 %
|
|
|
Total non-performing
assets/total assets
|
0.23 %
|
|
0.20 %
|
|
0.20 %
|
|
0.19 %
|
|
0.24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
112,167
|
|
$
107,331
|
|
$
105,357
|
|
$
102,792
|
|
$
100,219
|
|
|
Charged-off
loans
|
(7,091)
|
|
(3,246)
|
|
(5,636)
|
|
(6,891)
|
|
(6,744)
|
|
|
Recoveries on
charged-off loans
|
1,471
|
|
1,583
|
|
1,610
|
|
2,456
|
|
1,317
|
|
|
Net loans
charged-off
|
(5,620)
|
|
(1,663)
|
|
(4,026)
|
|
(4,435)
|
|
(5,427)
|
|
|
Provision
(benefit)/expense for loan credit losses
|
5,500
|
|
6,499
|
|
6,000
|
|
7,000
|
|
8,000
|
|
|
Balance at end of
period
|
$
112,047
|
|
$
112,167
|
|
$
107,331
|
|
$
105,357
|
|
$
102,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.22 %
|
|
1.22 %
|
|
1.18 %
|
|
1.17 %
|
|
1.14 %
|
|
|
Allowance for credit
losses/non-performing loans
|
467 %
|
|
525 %
|
|
500 %
|
|
492 %
|
|
386 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
(999)
|
|
$
22
|
|
$
292
|
|
$
316
|
|
$
97
|
|
|
Commercial and
industrial loans
|
(1,009)
|
|
(711)
|
|
(1,772)
|
|
(2,309)
|
|
(3,345)
|
|
|
Residential
mortgages
|
273
|
|
316
|
|
98
|
|
55
|
|
23
|
|
|
Home
equity
|
3
|
|
8
|
|
193
|
|
83
|
|
208
|
|
|
Other consumer
loans
|
(3,888)
|
|
(1,298)
|
|
(2,837)
|
|
(2,580)
|
|
(2,410)
|
|
|
Total, net
|
$
(5,620)
|
|
$
(1,663)
|
|
$
(4,026)
|
|
$
(4,435)
|
|
$
(5,427)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.24 %
|
|
0.07 %
|
|
0.18 %
|
|
0.20 %
|
|
0.24 %
|
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.16 %
|
|
0.13 %
|
|
0.18 %
|
|
0.26 %
|
|
0.28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-PERFORMING LOANS
|
Balance
|
Percent
of Total
Loans
|
Balance
|
Percent of
Total
Loans
|
Balance
|
Percent of
Total
Loans
|
Balance
|
Percent of
Total
Loans
|
Balance
|
Percent of
Total
Loans
|
|
30-89 Days
delinquent
|
$
18,526
|
0.20 %
|
$
18,494
|
0.20 %
|
$
27,682
|
0.30 %
|
$
22,140
|
0.24 %
|
$
18,700
|
0.21 %
|
|
90+ Days delinquent and
still accruing
|
6,280
|
0.07 %
|
11,672
|
0.13 %
|
5,882
|
0.06 %
|
5,537
|
0.06 %
|
5,744
|
0.06 %
|
|
Total accruing
delinquent loans
|
24,806
|
0.27 %
|
30,166
|
0.33 %
|
33,564
|
0.36 %
|
27,677
|
0.30 %
|
24,444
|
0.27 %
|
|
Non-performing
loans
|
23,969
|
0.26 %
|
21,348
|
0.23 %
|
21,454
|
0.24 %
|
21,407
|
0.24 %
|
26,636
|
0.30 %
|
|
Total delinquent and
non-performing loans
|
$
48,775
|
0.53 %
|
$
51,514
|
0.56 %
|
$
55,018
|
0.60 %
|
$
49,084
|
0.54 %
|
$
51,080
|
0.57 %
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
This document contains
certain non-GAAP financial measures in addition to results
presented in accordance with Generally Accepted Accounting
Principles ("GAAP"). These non-GAAP measures are intended to
provide the reader with additional supplemental perspectives on
operating results, performance trends, and financial condition.
Non-GAAP financial measures 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 provided below. In all cases, it
should be understood that non-GAAP measures do not depict amounts
that accrue directly to the benefit of shareholders. An item which
management excludes when computing non-GAAP operating earnings can
be of substantial importance to the Company's results for any
particular quarter or year. The Company's non-GAAP operating
earnings information set forth is not necessarily comparable to
non- GAAP information which may be presented by other companies.
Each non-GAAP measure used by the Company in this report as
supplemental financial data should be considered in conjunction
with the Company's GAAP financial information.
The Company utilizes the non-GAAP measure of operating earnings in
evaluating operating trends, including components for operating
revenue and expense. These measures exclude amounts which the
Company views as unrelated to its normalized operations. These
items primarily include restructuring costs. Restructuring costs
generally consist of costs and losses associated with the
disposition of assets and liabilities and lease terminations,
including costs related to branch consolidations.
The Company also calculates operating earnings per share based on
its measure of operating earnings and diluted common shares. The
Company views these amounts as important to understanding its
operating trends, particularly due to the impact of accounting
standards related to merger and acquisition activity. Analysts also
rely on these measures in estimating and evaluating the Company's
performance. Adjustments in 2024 were primarily related to branch
sales and loss on sale of AFS securities. Adjustments in 2023 were
primarily related to branch consolidations, severance charges
related to a workforce reduction, and loss on sale of AFS
securities.
Management believes that the computation of non-GAAP operating
earnings and operating earnings per share may facilitate the
comparison of the Company to other companies in the financial
services industry. The Company also adjusts certain equity related
measures to exclude intangible assets due to the importance of
these measures to the investment community.
|
|
BERKSHIRE HILLS
BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA
|
|
|
At or for the Quarters
Ended
|
|
|
|
Sept.
30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
(in
thousands)
|
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
|
Total non-interest
income
|
|
|
$ 37,555
|
|
$
20,133
|
|
$ (32,599)
|
|
$
(8,383)
|
|
$
17,465
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
|
|
|
|
|
|
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
|
Total operating
non-interest income (1)
|
|
|
$ 21,507
|
|
$
20,133
|
|
$
17,310
|
|
$
16,674
|
|
$
17,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
125,614
|
|
$ 108,665
|
|
$
55,541
|
|
$
80,038
|
|
$ 107,799
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
|
Total operating revenue
(1)
|
(B)
|
|
$
109,566
|
|
$ 108,665
|
|
$ 105,450
|
|
$ 105,095
|
|
$ 107,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$ 71,960
|
|
$
70,931
|
|
$
76,020
|
|
$
78,992
|
|
$
76,513
|
|
|
Adj: Merger,
restructuring and other non-operating expenses
|
|
|
297
|
|
384
|
|
(3,617)
|
|
(3,669)
|
|
(2,607)
|
|
|
Operating non-interest
expense (1)
|
(D)
|
|
$ 72,257
|
|
$
71,315
|
|
$
72,403
|
|
$
75,323
|
|
$
73,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$ 53,654
|
|
$
37,734
|
|
$ (20,479)
|
|
$
1,046
|
|
$
31,286
|
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (1)
|
(B-D)
|
|
37,309
|
|
37,350
|
|
33,047
|
|
29,772
|
|
33,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
|
$ 37,509
|
|
$
24,025
|
|
$ (20,188)
|
|
$
(1,445)
|
|
$
19,545
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
|
Adj: Restructuring
expense and other non-operating expenses
|
|
|
(297)
|
|
(384)
|
|
3,617
|
|
3,669
|
|
2,607
|
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
3,625
|
|
(473)
|
|
(12,404)
|
|
(7,091)
|
|
(636)
|
|
|
Total operating income
(1)
|
(E)
|
|
$ 24,789
|
|
$
23,168
|
|
$
20,934
|
|
$
20,190
|
|
$
21,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$ 11,695
|
|
$
11,692
|
|
$
11,755
|
|
$
11,862
|
|
$
11,860
|
|
|
Total average
shareholders' equity
|
(G)
|
|
1,050
|
|
1,013
|
|
1,018
|
|
966
|
|
988
|
|
|
Total average tangible
shareholders' equity
(1)
|
(I)
|
|
1,034
|
|
995
|
|
999
|
|
946
|
|
967
|
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
|
|
(89)
|
|
(115)
|
|
(114)
|
|
(143)
|
|
(218)
|
|
|
Total tangible
shareholders' equity, end of period (1)
|
(K)
|
|
1,054
|
|
996
|
|
991
|
|
993
|
|
930
|
|
|
Total tangible assets,
end of period (1)
|
(L)
|
|
11,588
|
|
12,202
|
|
12,128
|
|
12,411
|
|
12,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
42,982
|
|
42,959
|
|
43,415
|
|
43,501
|
|
43,822
|
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
42,454
|
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
common share, diluted (1)
|
|
|
$
0.88
|
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
|
Operating earnings per
common share, diluted (1)
|
(E/N)
|
|
0.58
|
|
0.55
|
|
0.49
|
|
0.47
|
|
0.50
|
|
|
Tangible book value per
common share, end of period (1)
|
(K/M)
|
|
24.53
|
|
23.18
|
|
22.84
|
|
22.82
|
|
21.23
|
|
|
Total tangible
shareholders' equity/total tangible assets (1)
|
(K/L)
|
|
9.10
|
|
8.16
|
|
8.17
|
|
8.00
|
|
7.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
14.29
|
%
|
9.49
|
%
|
(7.93)
|
%
|
(0.60)
|
%
|
7.91
|
%
|
|
Operating return on
equity (1)
|
(E/G)
|
|
9.44
|
|
9.15
|
|
8.23
|
|
8.36
|
|
8.71
|
|
|
Return on tangible
common equity (1)(3)
|
|
|
14.83
|
|
9.99
|
|
(7.73)
|
|
(0.24)
|
|
8.45
|
|
|
Operating return on
tangible common equity (1)(3)
|
(E+Q)/(I)
|
|
9.91
|
|
9.65
|
|
8.73
|
|
8.90
|
|
9.27
|
|
|
Return on
assets
|
|
|
1.28
|
|
0.82
|
|
(0.69)
|
|
(0.05)
|
|
0.66
|
|
|
Operating return on
assets (1)
|
(E/F)
|
|
0.85
|
|
0.79
|
|
0.71
|
|
0.68
|
|
0.73
|
|
|
Efficiency ratio
(1)(6)
|
(D-Q)/(B+O+R)
|
|
63.74
|
|
63.40
|
|
66.26
|
|
67.77
|
|
65.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (4)
|
(O)
|
|
N/M
|
|
N/M
|
|
N/M
|
|
$
2,252
|
|
$
1,979
|
|
|
Non-interest income
tax-credit investments amortization (5)
|
(P)
|
|
N/M
|
|
N/M
|
|
N/M
|
|
(2,060)
|
|
(1,463)
|
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
N/M
|
|
N/M
|
|
N/M
|
|
193
|
|
516
|
|
|
Effective tax
rate
|
|
|
22.1
|
%
|
23.1
|
%
|
23.8
|
%
|
75.7
|
%
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
1,128
|
|
$
1,140
|
|
$
1,205
|
|
$
1,205
|
|
$
1,205
|
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
2,023
|
|
2,013
|
|
2,006
|
|
2,021
|
|
1,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure.
(2) Ratios are
annualized and based on average balance sheet amounts, where
applicable. Quarterly data may not sum to year-to-date data due to
rounding.
(3) Amortization of
intangible assets is adjusted assuming a 27% marginal tax
rate.
(4) The tax benefit is
the direct reduction to the income tax provision due to tax credit
investments.
(5) The non-interest
income amortization is the reduction to the tax-advantaged
investments and are incurred as the tax credits are
generated.
(6) As of January 1,
2024, the Company elected the proportional amortization method for
certain tax credits eliminating the need to adjust the efficiency
ratio for tax credit impacts.
|
|
BERKSHIRE HILLS
BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA- UNAUDITED
|
|
|
At or for the Nine
Months Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
(in
thousands)
|
|
|
2024
|
|
2023
|
|
|
Total non-interest
income
|
|
|
$
25,089
|
|
$
51,165
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
49,909
|
|
-
|
|
|
Total operating
non-interest income (1)
|
|
|
$
58,950
|
|
$
51,165
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
289,820
|
|
$
331,791
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
-
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
49,909
|
|
-
|
|
|
Total operating revenue
(1)
|
(B)
|
|
$
323,681
|
|
$
331,791
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$
218,911
|
|
$
222,516
|
|
|
Less: Merger,
restructuring and other non-operating expenses
|
|
|
(2,936)
|
|
(2,592)
|
|
|
Operating non-interest
expense (1)
|
(D)
|
|
$
215,975
|
|
$
219,924
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$
70,909
|
|
$
109,275
|
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (1)
|
(B-D)
|
|
107,706
|
|
111,867
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
41,346
|
|
$
71,043
|
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
|
(16,048)
|
|
-
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
49,909
|
|
-
|
|
|
Adj: Restructuring
expense and other non-operating expenses
|
|
|
2,936
|
|
2,592
|
|
|
Adj: Income taxes
(expense)
|
|
|
(9,252)
|
|
(633)
|
|
|
Total operating income
(1)
|
(E)
|
|
$
68,891
|
|
$
73,002
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$
11,713
|
|
$
11,830
|
|
|
Total average
shareholders' equity
|
(G)
|
|
1,027
|
|
990
|
|
|
Total average tangible
shareholders' equity
(1)
|
(I)
|
|
1,009
|
|
967
|
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
|
|
(89)
|
|
(218)
|
|
|
Total tangible
shareholders' equity, end of period (1)
|
(K)
|
|
1,054
|
|
930
|
|
|
Total tangible assets,
end of period (1)
|
(L)
|
|
11,588
|
|
12,119
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
42,982
|
|
43,822
|
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
42,658
|
|
43,640
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted (1)
|
|
|
$
0.97
|
|
$
1.63
|
|
|
Operating earnings per
common share, diluted (1)
|
(E/N)
|
|
1.61
|
|
1.67
|
|
|
Tangible book value per
common share, end of period (1)
|
(K/M)
|
|
24.53
|
|
21.22
|
|
|
Total tangible
shareholders' equity/total tangible assets (1)
|
(K/L)
|
|
9.10
|
|
7.67
|
|
|
|
|
|
|
|
|
|
Performance
ratios (2)
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
5.37
|
%
|
9.57
|
%
|
|
Operating return on
equity (1)
|
(E/G)
|
|
8.94
|
|
9.83
|
|
|
Return on tangible
common equity (1)(3)
|
|
|
5.80
|
|
10.16
|
|
|
Operating return on
tangible common equity (1)(3)
|
(E+Q)/(I)
|
|
9.43
|
|
10.43
|
|
|
Return on
assets
|
|
|
0.47
|
|
0.80
|
|
|
Operating return on
assets (1)
|
(E/F)
|
|
0.78
|
|
0.82
|
|
|
Efficiency ratio
(1)(6)
|
(D-Q)/(B+O+R)
|
|
64.45
|
|
62.65
|
|
|
Net interest margin,
FTE
|
|
|
3.17
|
|
3.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data (in thousands)
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (4)
|
(O)
|
|
N/M
|
|
$
7,611
|
|
|
Non-interest income
charge on tax-credit investments (5)
|
(P)
|
|
N/M
|
|
(5,959)
|
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
N/M
|
|
1,652
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
3,473
|
|
$
3,615
|
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
6,042
|
|
5,850
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure.
(2) Ratios are
annualized and based on average balance sheet amounts, where
applicable. Quarterly data may not sum to year-to-date data due to
rounding.
(3) Amortization of
intangible assets is adjusted assuming a 27% marginal tax
rate.
(4) The tax benefit is
the direct reduction to the income tax provision due to tax credit
investments.
(5) The non-interest
income amortization is the reduction to the tax-advantaged
investments and are incurred as the tax credits are
generated.
(6) As of January 1,
2024, the Company elected the proportional amortization method for
certain tax credits eliminating the need to adjust the efficiency
ratio for tax credit impacts
|
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SOURCE Berkshire Hills Bancorp, Inc.