Operating EPS of $0.55 increased 12% linked quarter
- Operating revenue increased 3% linked quarter
- Operating expense decreased 2% linked quarter
- Net interest margin 3.20%, increased 5 basis points linked
quarter
- Net loan charge-offs were 7 basis points annualized
BOSTON, July 18,
2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc.
(NYSE: BHLB) today reported results for the second quarter of 2024.
These results along with comparison periods are summarized
below:
|
($ in millions, except
per share data)
|
|
Three Months Ended
|
|
|
|
June 30,
2024
|
|
Mar. 31,
2024
|
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
24.0
|
$
|
(20.2)
|
$
|
23.9
|
|
|
Per
share
|
|
0.57
|
|
(0.47)
|
|
0.55
|
|
|
Operating
earnings1
|
|
23.2
|
|
20.9
|
|
23.9
|
|
|
Per share
|
|
0.55
|
|
0.49
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
non FTE
|
$
|
88.5
|
$
|
88.1
|
$
|
92.8
|
|
|
Net interest income,
FTE
|
|
90.5
|
|
90.1
|
|
94.7
|
|
|
Net interest margin, FTE
|
|
3.20 %
|
|
3.15 %
|
|
3.24 %
|
|
|
Non-interest
income
|
|
20.1
|
|
(32.6)
|
|
17.1
|
|
|
Operating non-interest
income1
|
|
20.1
|
|
17.3
|
|
17.1
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
|
70.9
|
$
|
76.0
|
$
|
74.0
|
|
|
Operating non-interest
expense1
|
|
71.3
|
|
72.4
|
|
74.0
|
|
|
Efficiency
ratio1
|
|
63.4 %
|
|
66.3 %
|
|
63.6 %
|
|
|
|
|
|
|
|
|
|
|
Average
balances2
|
|
|
|
|
|
|
|
|
Loans
|
$
|
9,214
|
$
|
9,059
|
$
|
8,791
|
|
|
Deposits
|
|
9,779
|
|
9,978
|
|
9,568
|
|
|
|
|
|
|
|
|
|
|
Period-end
balances2
|
|
|
|
|
|
|
|
|
Loans
|
|
9,284
|
|
9,144
|
|
8,882
|
|
|
Deposits
|
|
10,095
|
|
10,368
|
|
10,068
|
|
|
|
|
1. See non-GAAP
financial measures and reconciliation to GAAP measures beginning on
page 12.
2. Loans and deposits
in 2Q24 include balances held for sale in branch transaction of $57
million and $483
million respectively
(average), and $55 million and $474 million (end of period). These
balances in 1Q24
were $18 million and $149 million respectively (average), and $58
million and $485 million (end of period).
|
|
Berkshire CEO Nitin Mhatre stated, "Operating income
advanced for the second consecutive quarter and we benefited from
loan growth, credit quality, and expense management. The
consolidation of three branch offices was completed, bringing our
branch count to 93, and we remain on target to conclude the pending
sale of ten offices in the second half of the year.
Berkshire bolstered its cash
management and government banking capabilities through promotions
and new hires, and Brett Brbovic was
promoted to CFO from his position as Chief Accounting Officer.
Brett will continue our forward momentum supported by the strong
team that he has built over his many years at Berkshire. Finally, I'm proud that TIME named
us one of America's Best Mid-Size Companies 2024 recognizing our
progress on financial performance, employee satisfaction and
commitment to sustainability."
Mr. Brbovic added, "The margin increase benefited from loan
growth and impacts from prior quarter securities sales. Net
interest income increased $392
thousand linked quarter, following several quarters of
decreases. Operating non-interest income increased
$2.8 million, primarily due to higher
gain on SBA loans. The loan loss provision increased by
approximately $500 thousand,
supporting loan growth and increasing the credit loss allowance to
1.22% of total loans. Linked quarter operating expenses
decreased $1.1 million due primarily
to lower compensation and occupancy expense. The efficiency ratio
improved to 63.4% from 66.3%. Capital ratios remained strong, with
the tangible common equity ratio remaining unchanged at 8.2%."
|
As of and For the
Three Months Ended
|
|
June 30,
2024
|
|
Mar. 31,
2024
|
|
June 30,
2023
|
|
Asset
Quality
|
|
|
|
|
|
|
Net loan charge-offs to
average loans
|
0.07 %
|
|
0.18 %
|
|
0.26 %
|
|
Non-performing loans to
total loans
|
0.23 %
|
|
0.24 %
|
|
0.32 %
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
|
Return on average
assets
|
0.82 %
|
|
(0.69) %
|
|
0.79 %
|
|
Operating return on
average assets1
|
0.79 %
|
|
0.71 %
|
|
0.79 %
|
|
Return on tangible
common equity1
|
9.99 %
|
|
(7.73) %
|
|
10.09 %
|
|
Operating return on
tangible common equity1
|
9.65 %
|
|
8.73 %
|
|
10.09 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios2
|
|
|
|
|
|
|
Tangible common
equity/tangible assets1
|
8.2 %
|
|
8.2 %
|
|
7.9 %
|
|
Tier 1
leverage
|
9.6 %
|
|
9.5 %
|
|
9.6 %
|
|
Common equity Tier
1
|
11.6 %
|
|
11.6 %
|
|
12.1 %
|
|
Tier 1
risk-based
|
11.8 %
|
|
11.8 %
|
|
12.3 %
|
|
Total
risk-based
|
14.1 %
|
|
14.0 %
|
|
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 June 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 $12.2 billion in assets and
93 financial centers in New England and New York. Berkshire is headquartered in Boston and offers commercial, retail, wealth,
and private banking solutions.
2Q 2024 Financial Highlights (comparisons are to the
prior quarter unless otherwise noted).
Income Statement. GAAP income was $24.0 million, or $0.57 per share. Operating earnings totaled
$23.2 million, or $0.55 per share. GAAP results improved from a
loss in the prior quarter which included a non-operating loss on
the sale of securities. Operating EPS improved 12% due to loan
growth, higher fee income, and lower operating expenses.
- Net interest income totaled $88.5
million in 2Q24 compared to $88.1
million in 1Q24.
- Net interest margin increased 5 basis points linked quarter to
3.20% reflecting the benefit of loan growth and securities sales.
- The earning asset yield increased 13 basis points.
- The loan yield increased 5 basis points.
- The cost of funds increased 8 basis points.
- The cost of deposits increased 6 basis points.
- Provision for credit losses on loans totaled $6.5 million.
- Allowance for credit losses on loans increased $4.8 million.
- Net loan charge-offs totaled $1.7
million.
- Net annualized loan charge-off ratio of 0.07%, down
sequentially for last six quarters.
- GAAP and operating non-interest income totaled $20.1 million. Operating non-interest income
increased $2.8 million linked
quarter.
- Gain on SBA loan sales increased $1.6 million to a five quarter high of
$3.3 million
- Non-interest expense totaled $70.9
million on a GAAP basis and $71.3
million on an operating basis. Operating non-interest
expense decreased $1.1 million linked
quarter.
- Compensation and benefits expense decreased $609 thousand.
- Occupancy and equipment expense decreased $634 thousand.
- The efficiency ratio was 63.4% compared to 66.3% linked
quarter.
- Income tax expense was $7.2
million and the effective tax rate was 23.1%.
Loans. Total loans increased $143
million to $9.23 billion due
to commercial loan growth. Problem loans decreased and the
allowance for credit losses increased.
- Commercial real estate loans increased $113 million to $4.71
billion.
- Commercial and industrial loans increased $37 million to $1.42
billion.
- Residential mortgage loans decreased $2
million to $2.67 billion.
Loans held for sale included $47
million of seasoned mortgages pending sale (not related to
the pending NY branch sale).
- Consumer loans decreased $5
million to $425 million.
- Included in assets held for sale were loans related to the
branch sale totaling $55 million at
period-end.
- The allowance for credit losses to total loans was 1.22% at
June 30, 2024, compared to 1.18% at
prior quarter-end. Annualized net charge-offs were 0.07% of
loans in the quarter.
- Non-performing loans to total loans was 0.23% at June 30, 2024, down from 0.24% at prior
quarter-end.
Deposits. Total deposits decreased $262 million to $9.62
billion.
- Non-interest bearing deposits decreased $40 million to $2.22
billion.
- Non-maturity interest bearing deposits decreased $166 million to $5.05
billion.
- Time deposits decreased $56
million to $2.35 billion.
- Excluded from total deposits were branch sale deposits totaling
$474 million at period-end, which
were included in liabilities held for sale.
Equity. Total shareholders' equity increased by
$3 million to $1.01 billion. The Company repurchased
approximately 612 thousand shares totaling $13 million during the second quarter. Tangible
book value per share advanced to $23.18 from $22.84.
2Q 2024 Corporate Responsibility and Sustainability
Highlights
- Berkshire expanded its Down
Payment Assistance Program to help qualifying buyers achieve
their dream of homeownership.
- More than 1,000 Berkshire
employees participated in 50 volunteer projects contributing more
than 4,600 hours of service as part of Xtraordinary Day, the bank's
annual day of service.
- Berkshire maintained its top
quartile environmental, social and governance performance in the
banking sector and was recognized among TIME's America's Best
Mid-Size Companies 2024.
Conference Call and Investor Presentation.
Berkshire will conduct a conference
call/webcast at 9:00 a.m. eastern time on
Thursday, July 18, 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 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
|
|
|
|
June
30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss) per
common share, diluted
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
$
0.55
|
|
|
Operating earnings per
common share, diluted (2)(3)
|
0.55
|
|
0.49
|
|
0.47
|
|
0.50
|
|
0.55
|
|
|
Net income/(loss),
(thousands)
|
24,025
|
|
(20,188)
|
|
(1,445)
|
|
19,545
|
|
23,861
|
|
|
Operating net income,
(thousands) (2)(3)
|
23,168
|
|
20,934
|
|
20,190
|
|
21,516
|
|
23,878
|
|
|
Net interest income,
(thousands) non FTE
|
88,532
|
|
88,140
|
|
88,421
|
|
90,334
|
|
92,759
|
|
|
Net interest income,
FTE (5)
|
90,545
|
|
90,146
|
|
90,442
|
|
92,314
|
|
94,721
|
|
|
Total common shares
outstanding, end of period (thousands)
|
42,959
|
|
43,415
|
|
43,501
|
|
43,822
|
|
44,033
|
|
|
Average diluted shares,
(thousands)
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
43,532
|
|
|
Total book value per
common share, end of period
|
23.58
|
|
23.26
|
|
23.27
|
|
21.70
|
|
22.11
|
|
|
Tangible book value per
common share, end of period (2)(3)
|
23.18
|
|
22.84
|
|
22.82
|
|
21.23
|
|
21.60
|
|
|
Dividends per common
share
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
|
Dividend payout
ratio
|
32.74
|
%
|
N/M
|
%
|
N/M
|
%
|
40.56
|
%
|
33.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS (4)
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
9.49
|
%
|
(7.93)
|
%
|
(0.60)
|
%
|
7.91
|
%
|
9.51
|
%
|
|
Operating return on
equity (2)(3)
|
9.15
|
|
8.23
|
|
8.36
|
|
8.71
|
|
9.51
|
|
|
Return on tangible
common equity (2)(3)
|
9.99
|
|
(7.73)
|
|
(0.24)
|
|
8.45
|
|
10.09
|
|
|
Operating return on
tangible common equity (2)(3)
|
9.65
|
|
8.73
|
|
8.90
|
|
9.27
|
|
10.09
|
|
|
Return on
assets
|
0.82
|
|
(0.69)
|
|
(0.05)
|
|
0.66
|
|
0.79
|
|
|
Operating return on
assets (2)(3)
|
0.79
|
|
0.71
|
|
0.68
|
|
0.73
|
|
0.79
|
|
|
Net interest margin,
FTE (5)
|
3.20
|
|
3.15
|
|
3.11
|
|
3.18
|
|
3.24
|
|
|
Efficiency ratio
(3)
|
63.40
|
|
66.26
|
|
67.77
|
|
65.05
|
|
63.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions, end of period)
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
12,219
|
|
$ 12,147
|
|
$ 12,431
|
|
$ 12,140
|
|
$ 12,090
|
|
|
Total earning
assets
|
11,510
|
|
11,430
|
|
11,705
|
|
11,400
|
|
11,370
|
|
|
Total loans
|
|
9,229
|
|
9,086
|
|
9,040
|
|
8,984
|
|
8,882
|
|
|
Total funding
liabilities
|
10,907
|
|
10,826
|
|
11,140
|
|
10,906
|
|
10,864
|
|
|
Total
deposits
|
|
9,621
|
|
9,883
|
|
10,633
|
|
9,981
|
|
10,068
|
|
|
Loans/deposits
(%)
|
96
|
%
|
92
|
%
|
85
|
%
|
90
|
%
|
88
|
%
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
$
(115)
|
|
$
(114)
|
|
$
(143)
|
|
$
(218)
|
|
$
(186)
|
|
|
Total shareholders'
equity
|
1,013
|
|
1,010
|
|
1,012
|
|
951
|
|
973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
112
|
|
$
107
|
|
$
105
|
|
$
103
|
|
$
100
|
|
|
Net charge-offs,
(millions)
|
(2)
|
|
(4)
|
|
(4)
|
|
(5)
|
|
(6)
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.07
|
%
|
0.18
|
%
|
0.20
|
%
|
0.24
|
%
|
0.26
|
%
|
|
Provision
(benefit)/expense, (millions)
|
$
6
|
|
$
6
|
|
$
7
|
|
$
8
|
|
$
8
|
|
|
Non-performing assets,
(millions)
|
24
|
|
24
|
|
24
|
|
29
|
|
31
|
|
|
Non-performing
loans/total loans
|
0.23
|
%
|
0.24
|
%
|
0.24
|
%
|
0.30
|
%
|
0.32
|
%
|
|
Allowance for credit
losses/non-performing loans
|
525
|
|
500
|
|
492
|
|
386
|
|
353
|
|
|
Allowance for credit
losses/total loans
|
1.22
|
|
1.18
|
|
1.17
|
|
1.14
|
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets,
(millions)(6)
|
$
9,602
|
|
$
9,615
|
|
$
9,552
|
|
$
9,594
|
|
$
9,523
|
|
|
Common equity Tier 1
capital to risk weighted assets (6)
|
11.6
|
%
|
11.6
|
%
|
12.0
|
%
|
12.1
|
%
|
12.1
|
%
|
|
Tier 1 capital leverage
ratio (6)
|
9.6
|
|
9.5
|
|
9.6
|
|
9.8
|
|
9.6
|
|
|
Tangible common
shareholders' equity/tangible assets (3)
|
8.2
|
|
8.2
|
|
8.0
|
|
7.7
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2024 and actual for the remaining periods.
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
June
30,
|
March 31,
|
December 31,
|
June 30,
|
|
(in
thousands)
|
2024
|
2024
|
2023
|
2023
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
112,085
|
$
111,676
|
$
148,148
|
$
120,285
|
|
Short-term
investments
|
988,207
|
1,082,019
|
1,055,096
|
520,315
|
|
Total cash and cash
equivalents
|
1,100,292
|
1,193,695
|
1,203,244
|
640,600
|
|
|
|
|
|
|
Trading securities, at
fair value
|
5,699
|
5,909
|
6,142
|
6,405
|
|
Equity securities, at
fair value
|
12,736
|
12,823
|
13,029
|
12,868
|
|
Securities available
for sale, at fair value
|
611,711
|
625,857
|
1,022,285
|
1,340,331
|
|
Securities held to
maturity, at amortized cost
|
520,239
|
531,820
|
543,351
|
563,765
|
|
Federal Home Loan Bank
stock
|
35,010
|
20,522
|
22,689
|
34,714
|
|
Total
securities
|
1,185,395
|
1,196,931
|
1,607,496
|
1,958,083
|
|
Less: Allowance for
credit losses on investment securities
|
(65)
|
(61)
|
(68)
|
(71)
|
|
Net
securities
|
1,185,330
|
1,196,870
|
1,607,428
|
1,958,012
|
|
|
|
|
|
|
Loans held for
sale
|
52,072
|
6,345
|
2,237
|
8,708
|
|
|
|
|
|
|
Commercial real estate
loans
|
4,706,810
|
4,593,692
|
4,527,012
|
4,315,202
|
|
Commercial and
industrial loans
|
1,421,921
|
1,384,591
|
1,352,834
|
1,464,922
|
|
Residential
mortgages
|
2,674,611
|
2,677,046
|
2,672,677
|
2,584,959
|
|
Consumer
loans
|
425,184
|
430,424
|
487,163
|
517,319
|
|
Total loans
|
9,228,526
|
9,085,753
|
9,039,686
|
8,882,402
|
|
Less: Allowance for
credit losses on loans
|
(112,167)
|
(107,331)
|
(105,357)
|
(100,219)
|
|
Net loans
|
9,116,359
|
8,978,422
|
8,934,329
|
8,782,183
|
|
|
|
|
|
|
Premises and equipment,
net
|
55,893
|
57,832
|
68,915
|
76,903
|
|
Other intangible
assets
|
17,319
|
18,460
|
19,664
|
22,074
|
|
Other assets
|
615,882
|
611,967
|
584,066
|
593,621
|
|
Assets held for
sale
|
76,307
|
83,020
|
10,938
|
8,220
|
|
Total assets
|
$
12,219,454
|
$
12,146,611
|
$
12,430,821
|
$
12,090,321
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Non-interest bearing
deposits
|
$
2,222,012
|
$
2,261,794
|
$
2,469,164
|
$
2,594,528
|
|
NOW and other
deposits
|
766,641
|
793,492
|
858,644
|
944,775
|
|
Money market
deposits
|
3,278,753
|
3,411,672
|
3,565,516
|
3,005,081
|
|
Savings
deposits
|
1,004,320
|
1,010,630
|
1,053,810
|
1,088,405
|
|
Time
deposits
|
2,349,733
|
2,405,384
|
2,686,250
|
2,435,618
|
|
Total
deposits
|
9,621,459
|
9,882,972
|
10,633,384
|
10,068,407
|
|
|
|
|
|
|
Federal Home Loan Bank
advances
|
689,606
|
337,169
|
385,223
|
674,345
|
|
Subordinated
borrowings
|
121,487
|
121,425
|
121,363
|
121,238
|
|
Total
borrowings
|
811,093
|
458,594
|
506,586
|
795,583
|
|
|
|
|
|
|
Other
liabilities
|
287,312
|
297,663
|
278,630
|
252,950
|
|
Liabilities held for
sale
|
486,648
|
497,459
|
-
|
-
|
|
Total
liabilities
|
11,206,512
|
11,136,688
|
11,418,600
|
11,116,940
|
|
|
|
|
|
|
Common shareholders'
equity
|
1,012,942
|
1,009,923
|
1,012,221
|
973,381
|
|
Total shareholders'
equity
|
1,012,942
|
1,009,923
|
1,012,221
|
973,381
|
|
Total liabilities and
shareholders' equity
|
$
12,219,454
|
$
12,146,611
|
$
12,430,821
|
$
12,090,321
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
'CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Months
Ended
|
|
Years Ended
|
|
June 30,
|
|
June 30,
|
|
(in thousands,
except per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Interest
income
|
$
154,109
|
|
$
145,425
|
|
$
306,115
|
|
$
277,741
|
|
Interest
expense
|
65,577
|
|
52,666
|
|
129,443
|
|
87,449
|
|
Net interest income,
non FTE
|
88,532
|
|
92,759
|
|
176,672
|
|
190,292
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
8,561
|
|
8,571
|
|
16,866
|
|
16,882
|
|
Loan related
fees
|
2,364
|
|
3,189
|
|
5,027
|
|
5,658
|
|
Gain on SBA
loans
|
3,294
|
|
2,910
|
|
4,993
|
|
5,404
|
|
Wealth management
fees
|
2,613
|
|
2,583
|
|
5,497
|
|
5,322
|
|
Fair value adjustments
on securities
|
(42)
|
|
(22)
|
|
(157)
|
|
212
|
|
Other
|
3,343
|
|
(137)
|
|
5,217
|
|
222
|
|
Total non-interest
income excluding sales of AFS securities
|
20,133
|
|
17,094
|
|
37,443
|
|
33,700
|
|
(Loss) on sale of AFS
securities
|
-
|
|
-
|
|
(49,909)
|
|
-
|
|
Total non-interest
income
|
20,133
|
|
17,094
|
|
(12,466)
|
|
33,700
|
|
Total net
revenue
|
108,665
|
|
109,853
|
|
164,206
|
|
223,992
|
|
|
|
|
|
|
|
|
|
Provision expense for
credit losses
|
6,499
|
|
8,000
|
|
12,499
|
|
16,999
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
40,126
|
|
39,960
|
|
80,861
|
|
79,031
|
|
Occupancy and
equipment
|
8,064
|
|
8,970
|
|
16,762
|
|
18,349
|
|
Technology
|
10,236
|
|
10,465
|
|
20,140
|
|
19,936
|
|
Professional
services
|
2,757
|
|
2,526
|
|
5,433
|
|
5,803
|
|
Regulatory
expenses
|
1,848
|
|
1,834
|
|
3,693
|
|
3,260
|
|
Amortization of
intangible assets
|
1,140
|
|
1,205
|
|
2,345
|
|
2,410
|
|
Marketing
|
532
|
|
1,510
|
|
1,648
|
|
2,718
|
|
Merger, restructuring
and other non-operating expenses
|
(384)
|
|
21
|
|
3,233
|
|
(15)
|
|
Other
expenses
|
6,612
|
|
7,557
|
|
12,836
|
|
14,511
|
|
Total non-interest
expense
|
70,931
|
|
74,048
|
|
146,951
|
|
146,003
|
|
Total non-interest
expense excluding non-operating expenses
|
71,315
|
|
74,027
|
|
143,718
|
|
146,018
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
31,235
|
|
$
27,805
|
|
$
4,756
|
|
$
60,990
|
|
Income tax
expense
|
7,210
|
|
3,944
|
|
919
|
|
9,492
|
|
Net
income
|
$
24,025
|
|
$
23,861
|
|
$
3,837
|
|
$
51,498
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.57
|
|
$
0.55
|
|
$
0.09
|
|
$
1.18
|
|
Diluted earnings per
common share
|
$
0.57
|
|
$
0.55
|
|
$
0.09
|
|
$
1.18
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
42,437
|
|
43,443
|
|
42,602
|
|
43,564
|
|
Diluted
|
42,508
|
|
43,532
|
|
42,763
|
|
43,780
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (5 Quarter
Trend)
|
|
|
June
30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
(in thousands,
except per share data)
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
Interest
income
|
|
$
154,109
|
|
$ 152,006
|
|
$ 150,537
|
|
$ 148,021
|
|
$ 145,425
|
|
|
Interest
expense
|
|
65,577
|
|
63,866
|
|
62,116
|
|
57,687
|
|
52,666
|
|
|
Net interest income,
non FTE
|
|
88,532
|
|
88,140
|
|
88,421
|
|
90,334
|
|
92,759
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
|
8,561
|
|
8,305
|
|
8,481
|
|
8,792
|
|
8,571
|
|
|
Loan related
fees
|
|
2,364
|
|
2,663
|
|
2,058
|
|
2,879
|
|
3,189
|
|
|
Gain on SBA
loans
|
|
3,294
|
|
1,699
|
|
2,382
|
|
2,548
|
|
2,910
|
|
|
Wealth management
fees
|
|
2,613
|
|
2,884
|
|
2,394
|
|
2,481
|
|
2,583
|
|
|
Fair value adjustments
on securities
|
|
(42)
|
|
(115)
|
|
768
|
|
(467)
|
|
(22)
|
|
|
Other
|
|
3,343
|
|
1,874
|
|
591
|
|
1,232
|
|
(137)
|
|
|
Total non-interest
income excluding sales of AFS securities
|
|
20,133
|
|
17,310
|
|
16,674
|
|
17,465
|
|
17,094
|
|
|
Loss on sale of AFS
securities
|
|
-
|
|
(49,909)
|
|
(25,057)
|
|
-
|
|
-
|
|
|
Total non-interest
income
|
|
20,133
|
|
(32,599)
|
|
(8,383)
|
|
17,465
|
|
17,094
|
|
|
Total net
revenue
|
|
108,665
|
|
55,541
|
|
80,038
|
|
107,799
|
|
109,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision expense for
credit losses
|
|
6,499
|
|
6,000
|
|
7,000
|
|
8,000
|
|
8,000
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
40,126
|
|
40,735
|
|
40,095
|
|
40,155
|
|
39,960
|
|
|
Occupancy and
equipment
|
|
8,064
|
|
8,698
|
|
8,553
|
|
8,816
|
|
8,970
|
|
|
Technology
|
|
10,236
|
|
9,904
|
|
11,326
|
|
10,616
|
|
10,465
|
|
|
Professional
services
|
|
2,757
|
|
2,676
|
|
3,417
|
|
2,423
|
|
2,526
|
|
|
Regulatory
expenses
|
|
1,848
|
|
1,845
|
|
1,854
|
|
1,905
|
|
1,834
|
|
|
Amortization of
intangible assets
|
|
1,140
|
|
1,205
|
|
1,205
|
|
1,205
|
|
1,205
|
|
|
Marketing
|
|
532
|
|
1,116
|
|
1,107
|
|
1,552
|
|
1,510
|
|
|
Merger, restructuring
and other non-operating expenses
|
|
(384)
|
|
3,617
|
|
3,669
|
|
2,607
|
|
21
|
|
|
Other
expenses
|
|
6,612
|
|
6,224
|
|
7,766
|
|
7,234
|
|
7,557
|
|
|
Total non-interest
expense
|
|
70,931
|
|
76,020
|
|
78,992
|
|
76,513
|
|
74,048
|
|
|
Total non-interest
expense excluding non-operating expenses
|
|
71,315
|
|
72,403
|
|
75,323
|
|
73,906
|
|
74,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
|
$
31,235
|
|
$
(26,479)
|
|
$
(5,954)
|
|
$
23,286
|
|
$
27,805
|
|
|
Income tax
expense/(benefit)
|
|
7,210
|
|
(6,291)
|
|
(4,509)
|
|
3,741
|
|
3,944
|
|
|
Net
income/(loss)
|
|
$
24,025
|
|
$
(20,188)
|
|
$
(1,445)
|
|
$
19,545
|
|
$
23,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss)
per common share
|
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
$
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,437
|
|
42,777
|
|
42,852
|
|
43,164
|
|
43,443
|
|
|
Diluted
|
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
43,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
AVERAGE BALANCES AND
AVERAGE YIELDS AND COSTS
|
|
Quarters
Ended
|
|
|
June 30,
2024
|
|
March 31,
2024
|
June 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
|
|
$
4,649
|
$
77
|
6.52
|
%
|
|
$
4,553
|
$
75
|
6.53
|
%
|
$
4,283
|
$
67
|
6.16
|
%
|
|
Commercial and
industrial loans
|
|
1,384
|
27
|
7.62
|
|
|
1,355
|
26
|
7.64
|
|
1,496
|
27
|
7.27
|
|
|
Residential
mortgages
|
|
2,694
|
28
|
4.21
|
|
|
2,668
|
29
|
4.15
|
|
2,488
|
24
|
3.87
|
|
|
Consumer
loans
|
|
430
|
8
|
7.47
|
|
|
465
|
8
|
7.24
|
|
524
|
9
|
7.28
|
|
|
Total
loans
|
|
9,157
|
140
|
6.05
|
|
|
9,041
|
138
|
6.04
|
|
8,791
|
127
|
5.77
|
|
|
Securities
(2)
|
|
1,332
|
8
|
2.44
|
|
|
1,726
|
10
|
2.38
|
|
2,236
|
13
|
2.27
|
|
|
Short-term investments
and loans held for sale
|
|
597
|
8
|
5.07
|
|
|
489
|
6
|
5.07
|
|
560
|
7
|
4.94
|
|
|
New York branch loans
held for sale (3)
|
|
57
|
1
|
5.86
|
|
|
18
|
-
|
5.72
|
|
-
|
-
|
-
|
|
|
Total earning
assets
|
|
11,143
|
157
|
5.57
|
|
|
11,274
|
154
|
5.44
|
|
11,587
|
147
|
5.05
|
|
|
Goodwill and other
intangible assets
|
|
18
|
|
|
|
|
19
|
|
|
|
22
|
|
|
|
|
Other assets
|
|
531
|
|
|
|
|
462
|
|
|
|
448
|
|
|
|
|
Total
assets
|
|
$
11,692
|
|
|
|
|
$
11,755
|
|
|
|
$
12,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
$
2,244
|
$
-
|
-
|
%
|
|
$
2,348
|
$
-
|
-
|
%
|
$
2,594
|
$
-
|
-
|
%
|
|
NOW and
other
|
|
763
|
3
|
1.44
|
|
|
799
|
3
|
1.37
|
|
1,055
|
4
|
1.35
|
|
|
Money market
|
|
2,909
|
24
|
3.32
|
|
|
3,083
|
25
|
3.25
|
|
2,555
|
14
|
2.13
|
|
|
Savings
|
|
1,004
|
3
|
1.06
|
|
|
1,038
|
3
|
0.97
|
|
1,077
|
-
|
0.50
|
|
|
Time
|
|
2,376
|
25
|
4.22
|
|
|
2,561
|
26
|
4.07
|
|
2,287
|
18
|
3.07
|
|
|
Total
deposits
|
|
9,296
|
55
|
2.35
|
|
|
9,829
|
57
|
2.29
|
|
9,568
|
36
|
1.51
|
|
|
Borrowings
(4)
|
|
610
|
9
|
5.55
|
|
|
504
|
7
|
5.52
|
|
1,288
|
17
|
5.14
|
|
|
New York branch
non-interest-bearing deposits
held for sale (3)
|
97
|
-
|
-
|
|
|
30
|
-
|
-
|
|
-
|
-
|
-
|
|
|
New York branch
interest-bearing deposits
held for sale (3)
|
|
386
|
3
|
2.80
|
|
|
119
|
1
|
2.75
|
|
-
|
-
|
-
|
|
|
Total funding
liabilities
|
|
10,389
|
67
|
2.53
|
|
|
10,482
|
65
|
2.45
|
|
10,856
|
53
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
290
|
|
|
|
|
255
|
|
|
|
197
|
|
|
|
|
Total
liabilities
|
|
10,679
|
|
|
|
|
10,737
|
|
|
|
11,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity (5)
|
|
1,013
|
|
|
|
|
1,018
|
|
|
|
1,004
|
|
|
|
|
Total shareholders'
equity
|
|
1,013
|
|
|
|
|
1,018
|
|
|
|
1,004
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
11,692
|
|
|
|
|
$
11,755
|
|
|
|
$
12,057
|
|
|
|
|
Net interest margin,
FTE
|
|
|
|
3.20
|
|
|
|
|
3.15
|
|
|
|
3.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
non FTE
|
|
88.532
|
|
|
|
|
88.140
|
|
|
|
92.759
|
|
|
|
|
FTE income
adjustment
|
|
2.013
|
|
|
|
|
2.006
|
|
|
|
1.962
|
|
|
|
|
Net Interest Income,
FTE
|
|
90.545
|
|
|
|
|
90.146
|
|
|
|
94.721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
June
30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(in
thousands)
|
2024
|
2024
|
2023
|
2023
|
2023
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
5,976
|
|
$
4,762
|
|
$
4,453
|
|
$
5,288
|
|
$
1,509
|
|
|
Commercial and
industrial loans
|
8,489
|
|
9,174
|
|
8,712
|
|
11,028
|
|
15,597
|
|
|
Residential
mortgages
|
5,491
|
|
5,992
|
|
6,404
|
|
8,060
|
|
8,722
|
|
|
Consumer
loans
|
1,392
|
|
1,526
|
|
1,838
|
|
2,260
|
|
2,560
|
|
|
Total non-performing
loans
|
21,348
|
|
21,454
|
|
21,407
|
|
26,636
|
|
28,388
|
|
|
Repossessed
assets
|
2,549
|
|
2,689
|
|
2,601
|
|
2,548
|
|
2,549
|
|
|
Total non-performing
assets
|
$
23,897
|
|
$
24,143
|
|
$
24,008
|
|
$
29,184
|
|
$
30,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans/total loans
|
0.23 %
|
|
0.24 %
|
|
0.24 %
|
|
0.30 %
|
|
0.32 %
|
|
|
Total non-performing
assets/total assets
|
0.20 %
|
|
0.20 %
|
|
0.19 %
|
|
0.24 %
|
|
0.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT
LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
107,331
|
|
$
105,357
|
|
$
102,792
|
|
$
100,219
|
|
$
97,991
|
|
|
Charged-off
loans
|
(3,246)
|
|
(5,636)
|
|
(6,891)
|
|
(6,744)
|
|
(7,686)
|
|
|
Recoveries on
charged-off loans
|
1,583
|
|
1,610
|
|
2,456
|
|
1,317
|
|
1,914
|
|
|
Net loans
charged-off
|
(1,663)
|
|
(4,026)
|
|
(4,435)
|
|
(5,427)
|
|
(5,772)
|
|
|
Provision
(benefit)/expense for loan credit
losses
|
6,499
|
|
6,000
|
|
7,000
|
|
8,000
|
|
8,000
|
|
|
Balance at end of
period
|
$
112,167
|
|
$
107,331
|
|
$
105,357
|
|
$
102,792
|
|
$
100,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.22 %
|
|
1.18 %
|
|
1.17 %
|
|
1.14 %
|
|
1.13 %
|
|
|
Allowance for credit
losses/non-performing
loans
|
525 %
|
|
500 %
|
|
492 %
|
|
386 %
|
|
353 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
22
|
|
$
292
|
|
$
316
|
|
$
97
|
|
$
664
|
|
|
Commercial and
industrial loans
|
(711)
|
|
(1,772)
|
|
(2,309)
|
|
(3,345)
|
|
(4,146)
|
|
|
Residential
mortgages
|
316
|
|
98
|
|
55
|
|
23
|
|
(143)
|
|
|
Home
equity
|
8
|
|
193
|
|
83
|
|
208
|
|
126
|
|
|
Other consumer
loans
|
(1,298)
|
|
(2,837)
|
|
(2,580)
|
|
(2,410)
|
|
(2,273)
|
|
|
Total, net
|
$
(1,663)
|
|
$
(4,026)
|
|
$
(4,435)
|
|
$
(5,427)
|
|
$
(5,772)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average
loans
|
0.07 %
|
|
0.18 %
|
|
0.20 %
|
|
0.24 %
|
|
0.26 %
|
|
|
Net charge-offs (YTD
annualized)/average
loans
|
0.13 %
|
|
0.18 %
|
|
0.26 %
|
|
0.28 %
|
|
0.29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
18,494
|
0.20 %
|
$
27,682
|
0.30 %
|
$
22,140
|
0.24 %
|
$
18,700
|
0.21 %
|
$
15,147
|
0.17 %
|
|
90+ Days delinquent and
still accruing
|
11,672
|
0.13 %
|
5,882
|
0.06 %
|
5,537
|
0.06 %
|
5,744
|
0.06 %
|
7,812
|
0.09 %
|
|
Total accruing
delinquent loans
|
30,166
|
0.33 %
|
33,564
|
0.36 %
|
27,677
|
0.30 %
|
24,444
|
0.27 %
|
22,959
|
0.26 %
|
|
Non-performing
loans
|
21,348
|
0.23 %
|
21,454
|
0.24 %
|
21,407
|
0.24 %
|
26,636
|
0.30 %
|
28,399
|
0.32 %
|
|
Total delinquent and
non-performing loans
|
$
51,514
|
0.56 %
|
$
55,018
|
0.60 %
|
$
49,084
|
0.54 %
|
$
51,080
|
0.57 %
|
$
51,358
|
0.58 %
|
|
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 consolidations
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
|
|
|
|
June
30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
(in
thousands)
|
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
Total non-interest
income
|
|
|
$ 20,133
|
|
$ (32,599)
|
|
$
(8,383)
|
|
$
17,465
|
|
$
17,094
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
-
|
|
|
Total operating
non-interest income (1)
|
|
|
$ 20,133
|
|
$
17,310
|
|
$
16,674
|
|
$
17,465
|
|
$
17,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
108,665
|
|
$
55,541
|
|
$
80,038
|
|
$ 107,799
|
|
$ 109,853
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
-
|
|
|
Total operating revenue
(1)
|
(B)
|
|
$
108,665
|
|
$ 105,450
|
|
$ 105,095
|
|
$ 107,799
|
|
$ 109,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$ 70,931
|
|
$
76,020
|
|
$
78,992
|
|
$
76,513
|
|
$
74,048
|
|
|
Adj: Merger,
restructuring and other non-operating expenses
|
|
|
384
|
|
(3,617)
|
|
(3,669)
|
|
(2,607)
|
|
(21)
|
|
|
Operating non-interest
expense (1)
|
(D)
|
|
$ 71,315
|
|
$
72,403
|
|
$
75,323
|
|
$
73,906
|
|
$
74,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$ 37,734
|
|
$ (20,479)
|
|
$
1,046
|
|
$
31,286
|
|
$
35,805
|
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (1)
|
(B-D)
|
|
37,350
|
|
33,047
|
|
29,772
|
|
33,893
|
|
35,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
|
$ 24,025
|
|
$ (20,188)
|
|
$
(1,445)
|
|
$
19,545
|
|
$
23,861
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
-
|
|
49,909
|
|
25,057
|
|
-
|
|
-
|
|
|
Adj: Restructuring
expense and other non-operating expenses
|
|
|
(384)
|
|
3,617
|
|
3,669
|
|
2,607
|
|
21
|
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
(473)
|
|
(12,404)
|
|
(7,091)
|
|
(636)
|
|
(4)
|
|
|
Total operating income
(1)
|
(E)
|
|
$ 23,168
|
|
$
20,934
|
|
$
20,190
|
|
$
21,516
|
|
$
23,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$ 11,692
|
|
$
11,755
|
|
$
11,862
|
|
$
11,860
|
|
$
12,057
|
|
|
Total average
shareholders' equity
|
(G)
|
|
1,013
|
|
1,018
|
|
966
|
|
988
|
|
1,004
|
|
|
Total average tangible
shareholders' equity
(1)
|
(I)
|
|
995
|
|
999
|
|
946
|
|
967
|
|
981
|
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
|
|
(115)
|
|
(114)
|
|
(143)
|
|
(218)
|
|
(186)
|
|
|
Total tangible
shareholders' equity, end of period (1)
|
(K)
|
|
996
|
|
991
|
|
993
|
|
930
|
|
951
|
|
|
Total tangible assets,
end of period (1)
|
(L)
|
|
12,202
|
|
12,128
|
|
12,411
|
|
12,119
|
|
12,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
42,959
|
|
43,415
|
|
43,501
|
|
43,822
|
|
44,033
|
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
42,508
|
|
43,028
|
|
43,101
|
|
43,347
|
|
43,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
common share, diluted (1)
|
|
|
$
0.57
|
|
$
(0.47)
|
|
$
(0.03)
|
|
$
0.45
|
|
$
0.55
|
|
|
Operating earnings per
common share, diluted (1)
|
(E/N)
|
|
0.55
|
|
0.49
|
|
0.47
|
|
0.50
|
|
0.55
|
|
|
Tangible book value per
common share, end of period (1)
|
(K/M)
|
|
23.18
|
|
22.84
|
|
22.82
|
|
21.23
|
|
21.60
|
|
|
Total tangible
shareholders' equity/total tangible assets (1)
|
(K/L)
|
|
8.16
|
|
8.17
|
|
8.00
|
|
7.68
|
|
7.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
9.49
|
%
|
(7.93)
|
%
|
(0.60)
|
|
7.91
|
%
|
9.51
|
%
|
|
Operating return on
equity (1)
|
(E/G)
|
|
9.15
|
|
8.23
|
|
8.36
|
|
8.71
|
|
9.51
|
|
|
Return on tangible
common equity (1)(3)
|
|
|
9.99
|
|
(7.73)
|
|
(0.24)
|
|
8.45
|
|
10.09
|
|
|
Operating return on
tangible common equity (1)(3)
|
(E+Q)/(I)
|
|
9.65
|
|
8.73
|
|
8.90
|
|
9.27
|
|
10.09
|
|
|
Return on
assets
|
|
|
0.82
|
|
(0.69)
|
|
(0.05)
|
|
0.66
|
|
0.79
|
|
|
Operating return on
assets (1)
|
(E/F)
|
|
0.79
|
|
0.71
|
|
0.68
|
|
0.73
|
|
0.79
|
|
|
Efficiency ratio
(1)(6)
|
(D-Q)/(B+O+R)
|
|
63.40
|
|
66.26
|
|
67.77
|
|
65.05
|
|
63.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (4)
|
(O)
|
|
N/M
|
|
N/M
|
|
$
2,252
|
|
$
1,979
|
|
$
2,735
|
|
|
Non-interest income
tax-credit investments amortization (5)
|
(P)
|
|
N/M
|
|
N/M
|
|
(2,060)
|
|
(1,463)
|
|
(2,210)
|
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
N/M
|
|
N/M
|
|
193
|
|
516
|
|
525
|
|
|
Effective tax
rate
|
|
|
23.1
|
%
|
23.8
|
%
|
75.7
|
%
|
16.1
|
%
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
1,140
|
|
$
1,205
|
|
$
1,205
|
|
$
1,205
|
|
$
1,205
|
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
2,013
|
|
2,006
|
|
2,021
|
|
1,980
|
|
1,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Six
Months Ended
|
|
|
|
June
30,
|
|
June 30,
|
|
|
(in
thousands)
|
|
|
2024
|
|
2023
|
|
|
Total non-interest
income
|
|
|
$
(12,466)
|
|
$
33,700
|
|
|
Adj: Loss on sale of
AFS securities
|
|
|
49,909
|
|
-
|
|
|
Total operating
non-interest income (1)
|
|
|
$
37,443
|
|
$
33,700
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
164,206
|
|
$
223,992
|
|
|
Adj: Loss/(gain) on
sale of AFS securities
|
|
|
49,909
|
|
-
|
|
|
Total operating revenue
(1)
|
(B)
|
|
$
214,115
|
|
$
223,992
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$
146,951
|
|
$
146,003
|
|
|
Less: Merger,
restructuring and other non-operating expenses
|
|
|
(3,233)
|
|
15
|
|
|
Operating non-interest
expense (1)
|
(D)
|
|
$
143,718
|
|
$
146,018
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$
17,255
|
|
$
77,989
|
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (1)
|
(B-D)
|
|
70,397
|
|
77,974
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
3,837
|
|
$
51,498
|
|
|
Adj: Loss/(gain) on
sale of AFS securities
|
|
|
49,909
|
|
-
|
|
|
Adj: Restructuring
expense and other non-operating expenses
|
|
|
3,233
|
|
(15)
|
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
(12,877)
|
|
3
|
|
|
Total operating income
(1)
|
(E)
|
|
$
44,102
|
|
$
51,486
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$
11,723
|
|
$
11,814
|
|
|
Total average
shareholders' equity
|
(G)
|
|
1,015
|
|
991
|
|
|
Total average tangible
shareholders' equity
(1)
|
(I)
|
|
997
|
|
968
|
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
|
|
(115)
|
|
(186)
|
|
|
Total tangible
shareholders' equity, end of period (1)
|
(K)
|
|
996
|
|
951
|
|
|
Total tangible assets,
end of period (1)
|
(L)
|
|
12,202
|
|
12,068
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
42,959
|
|
44,033
|
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
42,763
|
|
43,780
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted (1)
|
|
|
$
0.09
|
|
$
1.18
|
|
|
Operating earnings per
common share, diluted (1)
|
(E/N)
|
|
1.03
|
|
1.18
|
|
|
Tangible book value per
common share, end of period (1)
|
(K/M)
|
|
23.18
|
|
21.60
|
|
|
Total tangible
shareholders' equity/total tangible assets (1)
|
(K/L)
|
|
8.16
|
|
7.88
|
|
|
|
|
|
|
|
|
|
Performance
ratios (2)
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
0.76
|
%
|
10.39
|
%
|
|
Operating return on
equity (1)
|
(E/G)
|
|
8.69
|
|
10.39
|
|
|
Return on tangible
common equity (1)(3)
|
|
|
1.11
|
|
11.01
|
|
|
Operating return on
tangible common equity (1)(3)
|
(E+Q)/(I)
|
|
9.19
|
|
11.01
|
|
|
Return on
assets
|
|
|
0.07
|
|
0.87
|
|
|
Operating return on
assets (1)
|
(E/F)
|
|
0.75
|
|
0.87
|
|
|
Efficiency ratio
(1)(6)
|
(D-Q)/(B+O+R)
|
|
64.81
|
|
61.50
|
|
|
Net interest margin,
FTE
|
|
|
3.18
|
|
3.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data (in thousands)
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (4)
|
(O)
|
|
N/M
|
|
$
5,632
|
|
|
Non-interest income
charge on tax-credit investments (5)
|
(P)
|
|
N/M
|
|
(4,495)
|
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
N/M
|
|
1,137
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
2,345
|
|
$
2,410
|
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
4,019
|
|
3,869
|
|
|
|
|
|
(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.