PITTSFIELD, Mass., July 25, 2016 /PRNewswire/ -- Berkshire Hills
Bancorp, Inc. (NYSE: BHLB) reported second quarter GAAP earnings of
$0.52 per share in 2016 compared to
$0.35 in 2015. Core earnings
increased to $0.54 per share from
$0.51 for these respective
periods. Results increased due to expanded operations and
improved profitability. Core EPS is a non-GAAP financial measure
and is adjusted to exclude net non-core charges primarily related
to acquisitions and restructuring activities. GAAP results
last year included higher noncore charges related to the Hampden
Bancorp acquisition.
SECOND QUARTER FINANCIAL HIGHLIGHTS (comparisons are to
prior quarter unless otherwise stated):
- 5% total loan growth
- 4% total commercial loan growth
- 3.31% net interest margin (fully taxable equivalent)
- 58.7% efficiency ratio (non-GAAP financial measure)
- 0.26% non-performing assets/assets
- 0.22% net loan charge-offs/average loans
CEO Michael Daly stated, "Our
commercial and retail teams posted solid growth in the second
quarter of 2016. This included the benefit of the
Philadelphia area SBA lending
business acquired during the quarter and operating as 44 Business
Capital, a division of Berkshire Bank. Loan balances were up
in all major lending categories and our total loan yield improved
despite the ongoing market interest rate pressures.
Profitability metrics also improved, including improved efficiency
from our increased business scale."
Mr. Daly concluded, "Our recent agreement to acquire First
Choice Bank adds new dimensions to our business model. This
includes new branches in attractive Princeton and Philadelphia area markets, along with a strong
mortgage banking platform with operations in targeted national
markets. These operations complement our other recent
development strategies. They are targeted to enhance our
liquidity and capital strength, as well as to provide additional
earnings and profitability gains beginning in 2017."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of
$0.20 per share to shareholders of
record at the close of business on August 4,
2016, payable on August 18,
2016. The dividend equates to a 3.0% annualized yield based
on the $26.87 average closing price
of Berkshire's common stock during
the second quarter.
FINANCIAL CONDITION
Loan growth in all major categories benefited from strong
originations activities. Commercial outstandings increased in
all major regions, with the strongest growth posted in Connecticut and Eastern Massachusetts.
Berkshire added $37 million in new commercial balances with the
acquisition of assets and operations related to 44 Business
Capital. Residential mortgage growth included both retail
originations and increased wholesale activity with financial
institutions in the region. Consumer loan growth reflected
the Company's expanded indirect auto lending in its markets.
Deposits increased in all categories, with transaction balances
accounting for the highest growth rate. The planned deposit
contribution from First Choice will contribute an important new
source of funds for lending. Total assets increased to
$8.0 billion as of midyear and are
expected to be approximately $9
billion when the First Choice merger is completed.
Total book value per share advanced to $29.64. Tangible book value per share (a
non-GAAP financial measure) was flat at $18.44 due primarily to the goodwill recorded for
the 44 Business Capital acquisition. Problem assets and net
loan charge-offs remained comparatively low and were slightly
improved during the quarter.
RESULTS OF OPERATIONS
Return on equity and return on assets improved year-over-year on
both a GAAP and core basis. Over the five most recent
quarters, the GAAP ROE has varied depending primarily on merger
related charges. The core return on tangible equity has
exceeded 12% in all five of these quarters.
The net interest margin decreased to 3.31% from 3.33% in the
linked quarter, including a decrease in purchased loan accretion to
$2.0 million from $2.1 million in the prior quarter. Funding
costs increased including the impact of forward interest rate swaps
which became effective as scheduled. Fee income also
increased quarter over quarter including the benefit of SBA loan
sale gains contributed by the new 44 Business Capital operations as
well as higher mortgage banking volume.
Total non-interest expense decreased by $0.8 million compared to the linked quarter,
including a seasonal reduction in payroll tax expense. Total
full-time equivalent staff increased to 1,222 persons at
quarter-end, compared to 1,208 at the start of the quarter,
including the acquired operations. The loan loss provision
increased by $0.5 million due to
portfolio growth. The tax rate decreased to 25% from 28% in
the prior quarter due to additional tax credit related benefits on
investment projects.
CONFERENCE CALL
Berkshire will conduct a
conference call/webcast at 10:00 a.m.
eastern time on Tuesday, July 26,
2016 to discuss the results for the quarter and provide
guidance about expected future results. Participants are encouraged
to pre-register for the conference call using the following link:
http://dpregister.com/10088791. Callers who pre-register will
be given dial-in instructions and a unique PIN to gain immediate
access to the call. Participants may pre-register at any time prior
to the call, and will immediately receive simple instructions via
email. Participants may also reach the registration link and access
the webcast by logging in through the investor section of
Berkshire's website at
http://ir.berkshirebank.com. Parties who do not have
internet access or are otherwise unable to pre-register for this
event may still participate by dialing 1-844-792-3726 and asking
the Operator to join the Berkshire Hills Bancorp (BHLB) earnings
call. A telephone replay of the call will be available through
Tuesday, August 02, 2016 by dialing
877-344-7529 and entering access number 10088791. The webcast will
be available on Berkshire's
website for an extended period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank –
America's Most Exciting Bank®. The Company, recognized for its
entrepreneurial approach and distinctive culture, has approximately
$8.0 billion in assets and 93 full
service branch offices in Massachusetts, New
York, Connecticut, and
Vermont providing personal and
business banking, insurance, and wealth management services. The
Company has a pending agreement to acquire First Choice Bank, a
$1.1 billion bank with eight branches
in the Princeton, New Jersey area
and a national mortgage originations subsidiary. For more
information, visit www.berkshirebank.com.
FORWARD LOOKING STATEMENTS
This document contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. There are
several 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.
Berkshire does not undertake any
obligation to update forward-looking statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed merger, Berkshire will file with the Securities and
Exchange Commission ("SEC") a Registration Statement on Form S-4
that will include a Proxy Statement of First Choice and a
Prospectus of Berkshire, as well
as other relevant documents concerning the proposed merger.
This filing is anticipated for the third quarter. Investors
and stockholders are urged to read the Registration Statement and
the Proxy Statement/Prospectus regarding the proposed merger when
it becomes available and any other relevant documents filed with
the SEC, as well as any amendments or supplements to those
documents, because they will contain important information. A free
copy of the Registration Statement and Proxy Statement/Prospectus,
as well as other filings containing information about Berkshire and First Choice, when they become
available, may be obtained at the SEC's Internet site
(www.sec.gov). Copies of the Registration Statement and Proxy
Statement/Prospectus (when they become available) and the filings
that will be incorporated by reference therein may also be
obtained, free of charge, from Berkshire's website at ir.berkshirebank.com or by contacting
Berkshire Investor Relations at 413-236-3149 or by contacting
Lisa Tuccillo at First Choice at
609-503-4828.
PARTICIPANTS IN SOLICITATION
Berkshire and First Choice and
certain of their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from the
stockholders of First Choice in connection with the proposed
merger. Information about the directors and executive officers of
Berkshire is set forth in the
proxy statement for Berkshire's
2016 annual meeting of stockholders, as filed with the SEC on a
Schedule 14A on March 24, 2016.
Information about the directors and executive officers of First
Choice will be set forth in the Proxy Statement/Prospectus.
Additional information regarding the interests of those
participants and other persons who may be deemed participants in
the transaction and a description of their direct and indirect
interests, by security holdings or otherwise, may be obtained by
reading the Proxy Statement/Prospectus and other relevant documents
regarding the proposed merger to be filed with the SEC (when they
become available). Free copies of these documents may be obtained
as described in the preceding paragraph.
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
provide supplemental perspectives on operating results, performance
trends, and financial condition. They are not a substitute
for GAAP measures; they should be read and used in conjunction with
the Company's GAAP financial information. A reconciliation of
non-GAAP financial measures to GAAP measures is included on pages
F-9 and F-10 in the accompanying financial tables. In all
cases, it should be understood that non-GAAP per share measures do
not depict amounts that accrue directly to the benefit of
shareholders.
The Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude securities gains/losses,
merger costs, restructuring costs, and systems conversion
costs. Non-core adjustments are presented net of an
adjustment for income tax expense. This adjustment is
determined as the difference between the GAAP tax rate and the
effective tax rate applicable to core income. The efficiency
ratio is adjusted for non-core revenue and expense items and for
tax preference items. The Company also calculates measures
related to tangible equity, which adjust equity (and assets where
applicable) to exclude intangible assets due to the importance of
these measures to the investment community. Charges related
to merger and acquisition activity consist primarily of
severance/benefit related expenses, contract termination costs,
systems conversion costs, variable compensation expenses, and
professional fees. These charges are related to the following
business combinations: First Choice (pending), 44 Business Capital,
Hampden Bancorp, and Firestone Financial. Restructuring
costs primarily consist of costs and losses associated with the
disposition of assets and liabilities and lease terminations,
including costs related to branch sales The Company's
disclosures of organic growth of loans and deposits in 2015 exclude
balances acquired through the business combinations with Hampden
Bancorp and Firestone Financial, and in 2016 are adjusted for the
acquisition of the business operations related to 44 Business
Capital.
CONTACTS
Investor Relations Contact
Allison O'Rourke; Executive Vice
President, Investor Relations Officer; 413-236-3149
Media Contact
Elizabeth Mach; Vice President,
Marketing Officer; 413-445-8390
|
TABLE
INDEX
|
CONSOLIDATED
UNAUDITED FINANCIAL SCHEDULES
|
|
F-1
|
Selected Financial
Highlights
|
|
F-2
|
Balance
Sheets
|
|
F-3
|
Loan and Deposit
Analysis
|
|
F-4
|
Statements of
Income
|
|
F-5
|
Statements of
Income (Five Quarter Trend)
|
|
F-6
|
Average Yields and
Costs
|
|
F-7
|
Average
Balances
|
|
F-8
|
Asset Quality
Analysis
|
|
F-9
|
Reconciliation of
Non-GAAP Financial Measures (Five Quarter Trend)
and Supplementary
Data
|
|
F-10
|
Reconciliation of
Non-GAAP Financial Measures (Year-to-Date)
And Supplementary
Data
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-1)
|
|
At or for the
Quarters Ended (1)(2)(3)
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings,
diluted
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.49
|
|
$
|
0.35
|
|
|
Core earnings, diluted
(4)
|
0.54
|
|
0.54
|
|
0.54
|
|
0.54
|
|
0.51
|
|
|
Total book
value
|
29.64
|
|
29.18
|
|
28.64
|
|
28.48
|
|
28.02
|
|
|
Tangible book value
(4)
|
18.44
|
|
18.44
|
|
17.84
|
|
17.61
|
|
17.16
|
|
|
Market price at period
end
|
26.92
|
|
26.89
|
|
29.11
|
|
27.54
|
|
28.48
|
|
|
Dividends
|
0.20
|
|
0.20
|
|
0.19
|
|
0.19
|
|
0.19
|
|
|
|
PERFORMANCE
RATIOS (5)
|
|
|
|
|
|
|
|
|
|
|
|
Return on
assets
|
0.82
|
%
|
0.82
|
%
|
0.82
|
%
|
0.78
|
%
|
0.56
|
%
|
|
Core return on assets
(4)
|
0.85
|
|
0.85
|
|
0.85
|
|
0.86
|
|
0.81
|
|
|
Return on
equity
|
7.17
|
|
7.19
|
|
7.34
|
|
6.90
|
|
5.05
|
|
|
Core return on equity
(4)
|
7.42
|
|
7.40
|
|
7.58
|
|
7.58
|
|
7.32
|
|
|
Core return on
tangible equity (4)
|
12.45
|
|
12.20
|
|
12.68
|
|
12.78
|
|
12.30
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (6)
|
3.31
|
|
3.33
|
|
3.35
|
|
3.37
|
|
3.30
|
|
|
Net interest margin
(FTE), excluding purchased loan accretion (4)
|
3.20
|
|
3.21
|
|
3.22
|
|
3.22
|
|
3.16
|
|
|
Fee income/Net
interest and fee income
|
21.16
|
|
21.04
|
|
19.62
|
|
19.38
|
|
22.92
|
|
|
Efficiency ratio
(4)
|
58.71
|
|
59.86
|
|
60.56
|
|
60.35
|
|
61.51
|
|
|
|
GROWTH
(Year-to-date)
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans, (annualized)
|
11
|
%
|
6
|
%
|
29
|
%
|
37
|
%
|
34
|
%
|
|
Total loans,
(annualized)
|
10
|
|
0
|
|
22
|
|
28
|
|
26
|
|
|
Total deposits,
(annualized)
|
2
|
|
0
|
|
20
|
|
24
|
|
29
|
|
|
Total net revenues,
(compared to prior year)
|
14
|
|
26
|
|
18
|
|
19
|
|
20
|
|
|
Earnings per share,
(compared to prior year)
|
48
|
|
49
|
|
27
|
|
34
|
|
69
|
|
|
Core earnings per
share, (compared to prior year)
|
5
|
|
8
|
|
16
|
|
17
|
|
17
|
|
|
|
FINANCIAL DATA
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
8,044
|
|
$
|
7,808
|
|
$
|
7,832
|
|
$
|
7,804
|
|
$
|
7,519
|
|
|
Total earning
assets
|
7,327
|
|
7,142
|
|
7,140
|
|
7,130
|
|
6,740
|
|
|
Total
investments
|
1,288
|
|
1,374
|
|
1,371
|
|
1,396
|
|
1,379
|
|
|
Total loans
|
6,000
|
|
5,727
|
|
5,725
|
|
5,665
|
|
5,285
|
|
|
Allowance for loan
losses
|
41
|
|
40
|
|
39
|
|
38
|
|
37
|
|
|
Total intangible
assets
|
349
|
|
334
|
|
335
|
|
337
|
|
321
|
|
|
Total
deposits
|
5,657
|
|
5,584
|
|
5,589
|
|
5,507
|
|
5,322
|
|
|
Total shareholders'
equity
|
923
|
|
906
|
|
887
|
|
882
|
|
827
|
|
|
Net income
|
16.0
|
|
16.0
|
|
16.0
|
|
14.7
|
|
10.0
|
|
|
Core income
(4)
|
16.5
|
|
16.5
|
|
16.5
|
|
16.2
|
|
14.6
|
|
|
|
ASSET QUALITY AND
CONDITION RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.22
|
%
|
0.23
|
%
|
0.25
|
%
|
0.26
|
%
|
0.27
|
%
|
|
Allowance for loan
losses/total loans
|
0.69
|
|
0.70
|
|
0.69
|
|
0.67
|
|
0.70
|
|
|
Loans/deposits
|
106
|
|
103
|
|
102
|
|
103
|
|
99
|
|
|
Shareholders' equity
to total assets
|
11.48
|
|
11.60
|
|
11.33
|
|
11.30
|
|
11.00
|
|
|
Tangible shareholders'
equity to tangible assets (4)(7)
|
7.46
|
|
7.66
|
|
7.37
|
|
7.30
|
|
7.04
|
|
|
|
(1)
Core measurements are non-GAAP financial
measures that are adjusted to exclude net non-core charges
primarily related to acquisitions and
|
|
restructuring
activities.
|
|
(2)
Reconciliations of non-GAAP financial
measures, including all references to core and tangible amounts,
appear on pages F-9 and F-10.
|
|
(3)
The Company acquired certain assets and
operations related to 44 Business Capital on April 29,
2016.
|
|
(4)
Non-GAAP financial measure.
|
|
(5)
All performance ratios are annualized and
are based on average balance sheet amounts, where
applicable.
|
|
(6)
Fully taxable equivalent considers the
impact of tax advantaged investment securities and
loans.
|
|
(7)
See page F-9.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-2)
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
(In
thousands)
|
2016 (1)
|
|
2016
|
|
2015
|
|
Assets
|
|
|
Cash and due from
banks
|
$
|
58,332
|
|
$
|
44,370
|
|
$
|
72,918
|
|
Short-term
investments
|
16,247
|
|
24,447
|
|
30,644
|
|
Total cash and
short-term investments
|
74,579
|
|
68,817
|
|
103,562
|
|
|
|
|
|
|
|
Trading
security
|
14,479
|
|
14,474
|
|
14,189
|
|
Securities available
for sale, at fair value
|
1,073,370
|
|
1,171,534
|
|
1,154,457
|
|
Securities held to
maturity, at amortized cost
|
132,010
|
|
128,196
|
|
131,652
|
|
Federal Home Loan
Bank stock and other restricted securities
|
68,242
|
|
60,261
|
|
71,018
|
|
Total
securities
|
1,288,101
|
|
1,374,465
|
|
1,371,316
|
|
|
|
|
|
|
|
Loans held for sale,
at fair value
|
22,450
|
|
15,919
|
|
13,191
|
|
|
|
|
|
|
|
Commercial real
estate
|
2,237,582
|
|
2,100,067
|
|
2,059,767
|
|
Commercial and
industrial loans
|
1,034,559
|
|
1,054,140
|
|
1,048,263
|
|
Residential
mortgages
|
1,843,600
|
|
1,753,622
|
|
1,815,035
|
|
Consumer
loans
|
884,560
|
|
818,861
|
|
802,171
|
|
Total
loans
|
6,000,301
|
|
5,726,690
|
|
5,725,236
|
|
Less: Allowance for
loan losses
|
(41,397)
|
|
(40,055)
|
|
(39,308)
|
|
Net loans
|
5,958,904
|
|
5,686,635
|
|
5,685,928
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
86,274
|
|
87,840
|
|
88,072
|
|
Other real estate
owned
|
595
|
|
1,440
|
|
1,725
|
|
Goodwill
|
339,929
|
|
323,659
|
|
323,943
|
|
Other intangible
assets
|
9,057
|
|
9,845
|
|
10,664
|
|
Cash surrender value
of bank-owned life insurance
|
127,000
|
|
126,136
|
|
125,233
|
|
Deferred tax asset,
net
|
32,945
|
|
36,514
|
|
42,526
|
|
Other
assets
|
103,825
|
|
76,641
|
|
65,755
|
|
Total
assets
|
$
|
8,043,659
|
|
$
|
7,807,911
|
|
$
|
7,831,915
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Demand
deposits
|
$
|
1,050,220
|
|
$
|
1,037,103
|
|
$
|
1,081,860
|
|
NOW
deposits
|
489,734
|
|
473,556
|
|
510,807
|
|
Money market
deposits
|
1,415,041
|
|
1,405,361
|
|
1,408,107
|
|
Savings
deposits
|
611,627
|
|
611,556
|
|
601,761
|
|
Time
deposits
|
2,090,102
|
|
2,056,814
|
|
1,986,600
|
|
Total
deposits
|
5,656,724
|
|
5,584,390
|
|
5,589,135
|
|
|
|
|
|
|
|
Senior
borrowings
|
1,231,164
|
|
1,080,896
|
|
1,174,335
|
|
Subordinated
borrowings
|
89,072
|
|
89,027
|
|
89,812
|
|
Total
borrowings
|
1,320,236
|
|
1,169,923
|
|
1,264,147
|
|
|
|
|
|
|
|
Other
liabilities
|
143,279
|
|
147,761
|
|
91,444
|
|
Total
liabilities
|
7,120,239
|
|
6,902,074
|
|
6,944,726
|
|
|
|
|
|
|
|
Total common
shareholders' equity
|
923,420
|
|
905,837
|
|
887,189
|
|
Total liabilities and
shareholders' equity
|
$
|
8,043,659
|
|
$
|
7,807,911
|
|
$
|
7,831,915
|
|
|
|
|
|
|
|
Net shares
outstanding
|
31,156
|
|
31,039
|
|
30,974
|
|
(1) The Company
acquired certain assets and operations related to 44 Business
Capital on April 29, 2016.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
|
LOAN
ANALYSIS
|
|
|
|
Organic Annualized
Growth % (1)
|
|
(in
millions)
|
June 30, 2016
Balance
|
|
March 31, 2016
Balance
|
|
December 31, 2015
Balance
|
|
Quarter ended
June 30, 2016
|
|
Year to
Date
|
|
|
|
|
Commercial real
estate - construction
|
$
|
249
|
|
$
|
256
|
|
$
|
254
|
|
(11)
|
%
|
(4)
|
%
|
|
Commercial real
estate - other
|
1,989
|
|
1,844
|
|
1,806
|
|
23
|
|
16
|
|
|
Total commercial real
estate (2)
|
2,238
|
|
2,100
|
|
2,060
|
|
19
|
|
14
|
|
|
Commercial and
industrial loans
|
1,034
|
|
1,054
|
|
1,048
|
|
(8)
|
|
(3)
|
|
|
Total commercial
loans
|
3,272
|
|
3,154
|
|
3,108
|
|
10
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
1,844
|
|
1,754
|
|
1,815
|
|
20
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
360
|
|
358
|
|
361
|
|
2
|
|
(1)
|
|
|
Auto and
other
|
524
|
|
461
|
|
441
|
|
54
|
|
37
|
|
|
Total consumer
loans
|
884
|
|
819
|
|
802
|
|
32
|
|
20
|
|
|
Total
loans
|
$
|
6,000
|
|
$
|
5,727
|
|
$
|
5,725
|
|
17
|
%
|
8
|
%
|
|
(1) Non-GAAP
financial measure.
|
|
(2) Total commercial
real estate loans include $37 million in loans acquired as part of
the acquisition of certain assets and operations related
to
|
|
44 Business Capital;
however, the organic annualized growth excludes these acquired
loans.
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
Annualized Growth
%
|
|
(in
millions)
|
June 30,
2016
Balance
|
|
March 31, 2016
Balance
|
|
December 31, 2015
Balance
|
|
Quarter ended
June 30, 2016
|
|
Year to Date
|
|
|
Demand
|
$
|
1,050
|
|
$
|
1,037
|
|
$
|
1,082
|
|
5
|
%
|
(6)
|
%
|
|
NOW
|
490
|
|
474
|
|
511
|
|
14
|
|
(8)
|
|
|
Money
market
|
1,415
|
|
1,405
|
|
1,408
|
|
3
|
|
1
|
|
|
Savings
|
612
|
|
611
|
|
601
|
|
1
|
|
4
|
|
|
Total non-maturity
deposits
|
3,567
|
|
3,527
|
|
3,602
|
|
5
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
deposits
|
2,090
|
|
2,057
|
|
1,987
|
|
6
|
|
10
|
|
|
Total deposits
(1)
|
$
|
5,657
|
|
$
|
5,584
|
|
$
|
5,589
|
|
5
|
%
|
2
|
%
|
|
(1) June 30, 2016 and
March 31, 2016 total deposits exclude $31 million and $30 million,
respectively, of deposits associated with the two
branches
|
|
held for sale in New
York. Year-to-date annualized organic growth is 4% when including
the $31 million of deposits held for sale.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F4)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
Loans
|
$
|
59,703
|
|
$
|
51,504
|
|
$
|
118,145
|
|
$
|
95,949
|
|
Securities and
other
|
9,315
|
|
8,899
|
|
19,349
|
|
17,205
|
|
Total interest and
dividend income
|
69,018
|
|
60,403
|
|
137,494
|
|
113,154
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
Deposits
|
7,378
|
|
5,292
|
|
14,537
|
|
10,241
|
|
Borrowings
|
4,199
|
|
2,474
|
|
7,819
|
|
4,783
|
|
Total interest
expense
|
11,577
|
|
7,766
|
|
22,356
|
|
15,024
|
|
Net interest
income
|
57,441
|
|
52,637
|
|
115,138
|
|
98,130
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Loan related
income
|
2,898
|
|
2,783
|
|
5,944
|
|
4,066
|
|
Mortgage banking
income
|
1,335
|
|
1,546
|
|
2,156
|
|
2,799
|
|
Deposit related
fees
|
6,291
|
|
6,442
|
|
12,400
|
|
12,119
|
|
Insurance commissions
and fees
|
2,660
|
|
2,486
|
|
5,553
|
|
5,453
|
|
Wealth management
fees
|
2,235
|
|
2,397
|
|
4,737
|
|
5,000
|
|
Total fee
income
|
15,419
|
|
15,654
|
|
30,790
|
|
29,437
|
|
Other
|
(851)
|
|
(1,258)
|
|
(628)
|
|
(2,513)
|
|
Securities gains,
net
|
(13)
|
|
2,384
|
|
23
|
|
2,418
|
|
Total non-interest
income
|
14,555
|
|
16,780
|
|
30,185
|
|
29,342
|
|
Total net
revenue
|
71,996
|
|
69,417
|
|
145,323
|
|
127,472
|
|
Provision for loan
losses
|
4,522
|
|
4,204
|
|
8,528
|
|
8,055
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
24,664
|
|
24,503
|
|
50,378
|
|
46,314
|
|
Occupancy and
equipment
|
6,560
|
|
7,243
|
|
13,250
|
|
14,351
|
|
Technology and
communications
|
4,814
|
|
4,090
|
|
9,671
|
|
7,683
|
|
Marketing and
promotion
|
737
|
|
800
|
|
1,410
|
|
1,513
|
|
Professional
services
|
1,509
|
|
1,375
|
|
2,789
|
|
2,647
|
|
FDIC premiums and
assessments
|
1,203
|
|
1,143
|
|
2,436
|
|
2,272
|
|
Other real estate
owned and foreclosures
|
393
|
|
251
|
|
656
|
|
502
|
|
Amortization of
intangible assets
|
787
|
|
934
|
|
1,606
|
|
1,835
|
|
Merger, restructuring
and conversion expense
|
878
|
|
8,711
|
|
1,658
|
|
13,132
|
|
Other
|
4,723
|
|
4,975
|
|
9,514
|
|
8,924
|
|
Total non-interest
expense
|
46,268
|
|
54,025
|
|
93,368
|
|
99,173
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
21,206
|
|
11,188
|
|
43,427
|
|
20,244
|
|
Income tax
expense
|
5,249
|
|
1,144
|
|
11,469
|
|
1,441
|
|
Net
income
|
$
|
15,957
|
|
$
|
10,044
|
|
$
|
31,958
|
|
$
|
18,803
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.52
|
|
$
|
0.35
|
|
$
|
1.05
|
|
$
|
0.71
|
|
Diluted
|
$
|
0.52
|
|
$
|
0.35
|
|
$
|
1.04
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,605
|
|
28,301
|
|
30,561
|
|
26,557
|
|
Diluted
|
30,765
|
|
28,461
|
|
30,725
|
|
26,713
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(In thousands,
except per share data)
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
59,703
|
|
$
|
58,442
|
|
$
|
59,055
|
|
$
|
56,343
|
|
$
|
51,504
|
|
Securities and
other
|
9,315
|
|
10,034
|
|
9,369
|
|
9,109
|
|
8,899
|
|
Total interest and
dividend income
|
69,018
|
|
68,476
|
|
68,424
|
|
65,452
|
|
60,403
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
7,378
|
|
7,159
|
|
6,661
|
|
6,046
|
|
5,292
|
|
Borrowings
|
4,199
|
|
3,620
|
|
3,015
|
|
2,435
|
|
2,474
|
|
Total interest
expense
|
11,577
|
|
10,779
|
|
9,676
|
|
8,481
|
|
7,766
|
|
Net interest
income
|
57,441
|
|
57,697
|
|
58,748
|
|
56,971
|
|
52,637
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Loan related
income
|
2,898
|
|
3,046
|
|
2,707
|
|
1,537
|
|
2,783
|
|
Mortgage banking
income
|
1,335
|
|
821
|
|
641
|
|
693
|
|
1,546
|
|
Deposit related
fees
|
6,291
|
|
6,109
|
|
6,416
|
|
6,549
|
|
6,442
|
|
Insurance commissions
and fees
|
2,660
|
|
2,893
|
|
2,254
|
|
2,544
|
|
2,486
|
|
Wealth management
fees
|
2,235
|
|
2,502
|
|
2,326
|
|
2,376
|
|
2,397
|
|
Total fee
income
|
15,419
|
|
15,371
|
|
14,344
|
|
13,699
|
|
15,654
|
|
Other
|
(851)
|
|
223
|
|
(1,739)
|
|
(1,050)
|
|
(1,258)
|
|
Securities gains,
net
|
(13)
|
|
36
|
|
(357)
|
|
49
|
|
2,384
|
|
Total non-interest
income
|
14,555
|
|
15,630
|
|
12,248
|
|
12,698
|
|
16,780
|
|
Total net
revenue
|
71,996
|
|
73,327
|
|
70,996
|
|
69,669
|
|
69,417
|
|
Provision for loan
losses
|
4,522
|
|
4,006
|
|
4,431
|
|
4,240
|
|
4,204
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
24,664
|
|
25,714
|
|
25,819
|
|
25,237
|
|
24,503
|
|
Occupancy and
equipment
|
6,560
|
|
6,690
|
|
7,308
|
|
6,827
|
|
7,243
|
|
Technology and
communications
|
4,814
|
|
4,857
|
|
4,553
|
|
4,645
|
|
4,090
|
|
Marketing and
promotion
|
737
|
|
673
|
|
1,012
|
|
781
|
|
800
|
|
Professional
services
|
1,509
|
|
1,280
|
|
1,472
|
|
1,053
|
|
1,375
|
|
FDIC premiums and
assessments
|
1,203
|
|
1,233
|
|
1,220
|
|
1,157
|
|
1,143
|
|
Other real estate
owned and foreclosures
|
393
|
|
263
|
|
33
|
|
298
|
|
251
|
|
Amortization of
intangible assets
|
787
|
|
819
|
|
841
|
|
887
|
|
934
|
|
Merger, restructuring
and conversion expense
|
878
|
|
780
|
|
1,118
|
|
3,361
|
|
8,711
|
|
Other
|
4,723
|
|
4,791
|
|
4,903
|
|
5,132
|
|
4,975
|
|
Total non-interest
expense
|
46,268
|
|
47,100
|
|
48,279
|
|
49,378
|
|
54,025
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
21,206
|
|
22,221
|
|
18,286
|
|
16,051
|
|
11,188
|
|
Income tax
expense
|
5,249
|
|
6,220
|
|
2,273
|
|
1,350
|
|
1,144
|
|
Net
income
|
$
|
15,957
|
|
$
|
16,001
|
|
$
|
16,013
|
|
$
|
14,701
|
|
$
|
10,044
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.53
|
|
$
|
0.49
|
|
$
|
0.35
|
|
Diluted
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.49
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
30,605
|
|
30,511
|
|
30,500
|
|
29,893
|
|
28,301
|
|
Diluted
|
30,765
|
|
30,688
|
|
30,694
|
|
30,069
|
|
28,461
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
AVERAGE YIELDS AND
COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED -
(F-6)
|
|
Quarters
Ended
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
4.45
|
%
|
4.18
|
%
|
4.17
|
%
|
4.47
|
%
|
4.46
|
%
|
|
Commercial and
industrial loans
|
4.93
|
|
5.04
|
|
5.51
|
|
4.79
|
|
3.64
|
|
|
Residential
mortgages
|
3.63
|
|
3.86
|
|
3.72
|
|
3.74
|
|
4.08
|
|
|
Consumer
loans
|
3.40
|
|
3.44
|
|
3.30
|
|
3.29
|
|
3.24
|
|
|
Total
loans
|
4.14
|
|
4.13
|
|
4.15
|
|
4.14
|
|
4.02
|
|
|
Securities
|
3.28
|
|
3.26
|
|
2.96
|
|
2.92
|
|
2.99
|
|
|
Short-term
investments and loans held for sale
|
1.29
|
|
0.91
|
|
0.89
|
|
1.34
|
|
1.13
|
|
|
Total earning
assets
|
3.97
|
|
3.93
|
|
3.89
|
|
3.87
|
|
3.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
0.13
|
|
0.13
|
|
0.14
|
|
0.14
|
|
0.15
|
|
|
Money
market
|
0.47
|
|
0.49
|
|
0.45
|
|
0.42
|
|
0.37
|
|
|
Savings
|
0.11
|
|
0.13
|
|
0.14
|
|
0.15
|
|
0.17
|
|
|
Time
|
1.06
|
|
0.99
|
|
0.93
|
|
0.90
|
|
0.91
|
|
|
Total
interest-bearing deposits
|
0.65
|
|
0.63
|
|
0.59
|
|
0.55
|
|
0.52
|
|
|
Borrowings
|
1.38
|
|
1.19
|
|
0.96
|
|
0.81
|
|
0.77
|
|
|
Total
interest-bearing liabilities
|
0.81
|
|
0.75
|
|
0.67
|
|
0.61
|
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
3.16
|
|
3.18
|
|
3.22
|
|
3.26
|
|
3.19
|
|
|
Net interest
margin
|
3.31
|
|
3.33
|
|
3.35
|
|
3.37
|
|
3.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds
(1)
|
0.68
|
|
0.64
|
|
0.56
|
|
0.51
|
|
0.49
|
|
|
Cost of deposits
(2)
|
0.53
|
|
0.51
|
|
0.48
|
|
0.45
|
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of funds
includes all deposits and borrowings.
|
|
(2) The average cost
of deposits includes the deposits held for sale.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
Quarters
Ended
|
|
June
30,
|
|
March
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
(In
thousands)
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
2,173,539
|
|
$
|
2,079,001
|
|
$
|
2,034,917
|
|
$
|
1,948,753
|
|
$
|
1,889,306
|
|
Commercial and
industrial loans
|
1,047,866
|
|
1,027,257
|
|
1,033,081
|
|
998,782
|
|
886,297
|
|
Residential
mortgages
|
1,759,193
|
|
1,798,034
|
|
1,790,334
|
|
1,664,505
|
|
1,562,503
|
|
Consumer
loans
|
844,759
|
|
807,888
|
|
807,768
|
|
813,986
|
|
821,933
|
|
Total loans (1)
(2)
|
5,825,357
|
|
5,712,180
|
|
5,666,100
|
|
5,426,026
|
|
5,160,039
|
|
Securities
(3)
|
1,247,357
|
|
1,342,590
|
|
1,368,505
|
|
1,353,818
|
|
1,301,918
|
|
Short-term
investments and loans held for sale
|
41,449
|
|
56,042
|
|
51,241
|
|
51,832
|
|
72,003
|
|
Total earning
assets
|
7,114,163
|
|
7,110,812
|
|
7,085,846
|
|
6,831,676
|
|
6,533,960
|
|
Goodwill and other
intangible assets
|
344,832
|
|
333,948
|
|
335,440
|
|
330,084
|
|
303,780
|
|
Other
assets
|
349,816
|
|
346,327
|
|
342,902
|
|
379,319
|
|
357,026
|
|
Total
assets
|
$
|
7,808,811
|
|
$
|
7,791,087
|
|
$
|
7,764,188
|
|
$
|
7,541,079
|
|
$
|
7,194,766
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
(4)
|
|
|
|
|
|
|
|
|
|
|
NOW
|
$
|
492,901
|
|
$
|
484,334
|
|
$
|
491,445
|
|
$
|
475,433
|
|
$
|
460,378
|
|
Money
market
|
1,403,629
|
|
1,417,068
|
|
1,455,267
|
|
1,474,389
|
|
1,437,428
|
|
Savings
|
612,261
|
|
602,414
|
|
604,215
|
|
615,410
|
|
606,231
|
|
Time
|
2,047,020
|
|
2,063,712
|
|
1,958,394
|
|
1,795,156
|
|
1,558,350
|
|
Total
interest-bearing deposits
|
4,555,811
|
|
4,567,528
|
|
4,509,321
|
|
4,360,388
|
|
4,062,387
|
|
Borrowings
|
1,223,629
|
|
1,222,288
|
|
1,256,287
|
|
1,198,455
|
|
1,287,319
|
|
Total
interest-bearing liabilities
|
5,779,440
|
|
5,789,816
|
|
5,765,608
|
|
5,558,843
|
|
5,349,706
|
|
Non-interest-bearing
demand deposits
|
1,032,951
|
|
1,026,447
|
|
1,033,844
|
|
1,010,613
|
|
974,160
|
|
Other
liabilities
|
105,948
|
|
84,042
|
|
91,877
|
|
119,322
|
|
75,487
|
|
Total
liabilities
|
6,918,339
|
|
6,900,305
|
|
6,891,329
|
|
6,688,778
|
|
6,399,353
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
890,472
|
|
890,782
|
|
872,859
|
|
852,301
|
|
795,413
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
7,808,811
|
|
$
|
7,791,087
|
|
$
|
7,764,188
|
|
$
|
7,541,079
|
|
$
|
7,194,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
Total non-maturity
deposits (4)
|
$
|
3,541,742
|
|
$
|
3,530,263
|
|
$
|
3,584,771
|
|
$
|
3,575,845
|
|
$
|
3,478,197
|
|
Total deposits
(4)
|
5,588,762
|
|
5,593,975
|
|
5,543,165
|
|
5,371,001
|
|
5,036,547
|
|
Fully taxable
equivalent income adjustment
|
1,180
|
|
1,134
|
|
1,108
|
|
1,131
|
|
1,068
|
|
Total average
tangible equity (5)
|
545,640
|
|
556,834
|
|
537,419
|
|
522,217
|
|
491,633
|
|
|
(1) Total loans
include non-accruing loans.
|
|
(2) The average
balances of loans include the loans associated with the two
branches in New York that are for sale and presented under
loans
|
|
held for sale on the
consolidated balance sheet.
|
|
(3) Average balances
for securities available-for-sale are based on amortized
cost.
|
|
(4) The average
balances of deposits include the deposits held for sale presented
under other liabilities on the consolidated balance
sheet.
|
|
(5) See page
F-9.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
ASSET QUALITY
ANALYSIS - UNAUDITED - (F-8)
|
|
At or for the
Quarters Ended
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(in
thousands)
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
NON-PERFORMING
ASSETS
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
4,808
|
|
$
|
5,001
|
|
$
|
4,882
|
|
$
|
5,693
|
|
$
|
9,733
|
|
Commercial and
industrial loans
|
7,590
|
|
7,480
|
|
8,259
|
|
8,092
|
|
3,031
|
|
Residential
mortgages
|
4,882
|
|
4,732
|
|
3,966
|
|
4,565
|
|
4,234
|
|
Consumer
loans
|
3,376
|
|
3,588
|
|
3,768
|
|
3,386
|
|
2,991
|
|
Total non-accruing
loans
|
20,656
|
|
20,801
|
|
20,875
|
|
21,736
|
|
19,989
|
|
Other real estate
owned
|
595
|
|
1,440
|
|
1,725
|
|
2,487
|
|
674
|
|
Total non-performing
assets
|
$
|
21,251
|
|
$
|
22,241
|
|
$
|
22,600
|
|
$
|
24,223
|
|
$
|
20,663
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
0.34%
|
|
0.36%
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
Total non-performing
assets/total assets
|
0.26%
|
|
0.28%
|
|
0.29%
|
|
0.31%
|
|
0.27%
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
Balance at beginning
of period
|
$
|
40,055
|
|
$
|
39,308
|
|
$
|
38,180
|
|
$
|
37,197
|
|
$
|
36,286
|
|
Charged-off
loans
|
(3,393)
|
|
(3,704)
|
|
(3,538)
|
|
(3,542)
|
|
(4,176)
|
|
Recoveries on
charged-off loans
|
213
|
|
445
|
|
235
|
|
285
|
|
883
|
|
Net loans
charged-off
|
(3,180)
|
|
(3,259)
|
|
(3,303)
|
|
(3,257)
|
|
(3,293)
|
|
Provision for loan
losses
|
4,522
|
|
4,006
|
|
4,431
|
|
4,240
|
|
4,204
|
|
Balance at end of
period
|
$
|
41,397
|
|
$
|
40,055
|
|
$
|
39,308
|
|
$
|
38,180
|
|
$
|
37,197
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans
|
0.69%
|
|
0.70%
|
|
0.69%
|
|
0.67%
|
|
0.70%
|
|
Allowance for loan
losses/non-accruing loans
|
200%
|
|
193%
|
|
188%
|
|
176%
|
|
186%
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
Commercial real
estate
|
$
|
(534)
|
|
$
|
(1,043)
|
|
$
|
(1,152)
|
|
$
|
(1,343)
|
|
$
|
(2,461)
|
|
Commercial and
industrial loans
|
(1,720)
|
|
(847)
|
|
(1,056)
|
|
(1,098)
|
|
(124)
|
|
Residential
mortgages
|
(568)
|
|
(774)
|
|
(633)
|
|
(354)
|
|
(367)
|
|
Home
equity
|
(164)
|
|
(221)
|
|
(118)
|
|
(135)
|
|
(174)
|
|
Auto and other
consumer
|
(194)
|
|
(374)
|
|
(344)
|
|
(327)
|
|
(167)
|
|
Total, net
|
$
|
(3,180)
|
|
$
|
(3,259)
|
|
$
|
(3,303)
|
|
$
|
(3,257)
|
|
$
|
(3,293)
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.22%
|
|
0.23%
|
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.22%
|
|
0.23%
|
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
30-89 Days
delinquent
|
0.25%
|
|
0.26%
|
|
0.34%
|
|
0.37%
|
|
0.29%
|
|
90+ Days delinquent
and still accruing
|
0.08%
|
|
0.07%
|
|
0.09%
|
|
0.10%
|
|
0.12%
|
|
Total accruing
delinquent loans
|
0.33%
|
|
0.33%
|
|
0.43%
|
|
0.47%
|
|
0.41%
|
|
Non-accruing
loans
|
0.34%
|
|
0.36%
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
Total delinquent and
non-accruing loans
|
0.67%
|
|
0.69%
|
|
0.79%
|
|
0.85%
|
|
0.79%
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED -
(F-9)
|
|
At or for the
Quarters Ended
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
(in
thousands)
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
Net income
|
$
|
15,957
|
|
$
|
16,001
|
|
$
|
16,013
|
|
$
|
14,701
|
|
$
|
10,044
|
|
|
Adj: Net securities
(gains) losses
|
13
|
|
(36)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
|
Adj: Merger and
acquisition expense
|
701
|
|
527
|
|
1,230
|
|
2,987
|
|
5,665
|
|
|
Adj: Restructuring
expense
|
177
|
|
253
|
|
(112)
|
|
374
|
|
3,046
|
|
|
Adj: Income
taxes
|
(334)
|
|
(256)
|
|
(959)
|
|
(1,862)
|
|
(1,815)
|
|
|
Total core
income
|
(A)
|
$
|
16,514
|
|
$
|
16,489
|
|
$
|
16,529
|
|
$
|
16,151
|
|
$
|
14,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
71,996
|
|
$
|
73,327
|
|
$
|
70,996
|
|
$
|
69,669
|
|
$
69,417
|
|
|
Adj: Net securities
(gains) losses
|
|
13
|
|
(36)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
|
Total core
revenue
|
(B)
|
$
|
72,009
|
|
$
|
73,291
|
|
$
|
71,353
|
|
$
|
69,620
|
|
$
|
67,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
$
|
46,268
|
|
$
|
47,100
|
|
$
|
48,279
|
|
$
|
49,378
|
|
$
|
54,025
|
|
|
Less: Total non-core
expense (see above)
|
|
(878)
|
|
(780)
|
|
(1,118)
|
|
(3,361)
|
|
(8,711)
|
|
|
Core non-interest
expense
|
(C)
|
$
|
45,390
|
|
$
|
46,320
|
|
$
|
47,161
|
|
$
|
46,017
|
|
$
|
45,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
|
7,809
|
|
$
|
7,791
|
|
$
|
7,764
|
|
$
|
7,541
|
|
$
|
7,195
|
|
|
Total average
shareholders'
equity
|
(E)
|
890
|
|
891
|
|
873
|
|
852
|
|
795
|
|
|
Total average
tangible shareholders'
equity
|
(F)
|
546
|
|
557
|
|
537
|
|
522
|
|
492
|
|
|
Total tangible
shareholders' equity, period-end (1)
|
(G)
|
574
|
|
572
|
|
553
|
|
545
|
|
507
|
|
|
Total tangible
assets, period-end (1)
|
(H)
|
7,695
|
|
7,474
|
|
7,497
|
|
7,468
|
|
7,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(I)
|
31,156
|
|
31,039
|
|
30,974
|
|
30,949
|
|
29,521
|
|
|
Average diluted
shares outstanding (thousands)
|
(J)
|
30,765
|
|
30,688
|
|
30,694
|
|
30,069
|
|
28,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share, diluted
|
(A/J)
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.51
|
|
|
Tangible book value
per share, period-end
|
(G/I)
|
18.44
|
|
18.44
|
|
17.84
|
|
17.61
|
|
17.16
|
|
|
Total tangible
shareholders' equity/total tangible assets
|
(G)/(H)
|
7.46
|
|
7.66
|
|
7.37
|
|
7.30
|
|
7.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
assets
|
|
0.82
|
%
|
0.82
|
%
|
0.82
|
%
|
0.78
|
%
|
0.56
|
%
|
|
Core return on
assets
|
(A/D)
|
0.85
|
|
0.85
|
|
0.85
|
|
0.86
|
|
0.81
|
|
|
GAAP return on
equity
|
|
7.17
|
|
7.19
|
|
7.34
|
|
6.90
|
|
5.05
|
|
|
Core return on
equity
|
(A/E)
|
7.42
|
|
7.40
|
|
7.58
|
|
7.58
|
|
7.32
|
|
|
Core return on
tangible equity (3)
|
(A/F)
|
12.45
|
|
12.20
|
|
12.68
|
|
12.78
|
|
12.30
|
|
|
Efficiency ratio
(4)
|
(C-M)/(B+K+N)
|
58.71
|
|
59.86
|
|
60.56
|
|
60.35
|
|
61.51
|
|
|
Net interest
margin
|
|
3.31
|
|
3.33
|
|
3.35
|
|
3.37
|
|
3.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (5)
|
(K)
|
$
|
2,777
|
|
$
|
1,588
|
|
$
|
4,029
|
|
$
|
4,029
|
|
$
|
4,034
|
|
|
Non-interest income
charge on tax-credit investments (6)
|
(L)
|
(1,938)
|
|
(1,101)
|
|
(2,851)
|
|
(2,851)
|
|
(2,851)
|
|
|
Net income on
tax-credit investments
|
(K+L)
|
839
|
|
487
|
|
1,178
|
|
1,178
|
|
1,183
|
|
|
Intangible
amortization
|
(M)
|
787
|
|
819
|
|
841
|
|
887
|
|
934
|
|
|
Fully taxable
equivalent income adjustment
|
(N)
|
1,180
|
|
1,134
|
|
1,108
|
|
1,131
|
|
1,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total tangible
shareholders' equity is computed by taking total shareholders'
equity less the intangible assets at period-end.
|
|
Total tangible assets
is computed by taking total assets less the intangible assets at
period-end.
|
|
(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) Core return on
tangible equity is computed by dividing the total core income
adjusted for the tax-affected amortization of intangible
assets,
|
|
assuming a 40%
marginal rate, by tangible equity.
|
|
(4) Non-GAAP
financial measure.
|
|
(5) The tax benefit
is the direct reduction to the income tax provision due to tax
credits and deductions generated from investments in
historic
|
|
rehabilitation,
low-income housing, new market projects, and renewable energy
projects.
|
|
(6) The non-interest
income charge is the reduction to the tax-advantaged investments,
which are incurred as the tax credits are
generated.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED -
(F-10)
|
|
|
|
At or for Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
(Dollars in
thousands)
|
|
2016
|
|
2015
|
|
|
Net
income
|
|
$
|
31,958
|
|
$
|
18,803
|
|
|
Adj: Net securities
(gains)
|
|
(23)
|
|
(2,418)
|
|
|
Adj: Merger and
acquisition expenses
|
|
1,228
|
|
8,940
|
|
|
Adj: Restructuring
expense
|
|
430
|
|
4,192
|
|
|
Adj: Income
taxes
|
|
(590)
|
|
(2,587)
|
|
|
Total core
income
|
(A)
|
$
|
33,003
|
|
$
|
26,930
|
|
|
Total
revenue
|
|
145,323
|
|
127,472
|
|
|
Adj: Net securities
(gains) losses
|
|
(23)
|
|
(2,418)
|
|
|
Total core
revenue
|
(B)
|
$
|
145,300
|
|
$
|
125,054
|
|
|
Total non-interest
expense
|
|
$
|
93,368
|
|
$
|
99,173
|
|
|
Less: Total non-core
expense (see above)
|
|
(1,658)
|
|
(13,132)
|
|
|
Core non-interest
expense
|
(C)
|
$
|
91,710
|
|
$
|
86,041
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
|
7,800
|
|
$
|
6,846
|
|
|
Total average
shareholders'
equity
|
(E)
|
891
|
|
748
|
|
|
Total average
tangible shareholders'
equity
|
(F)
|
551
|
|
459
|
|
|
Total tangible
shareholders' equity, period-end (1)
|
(G)
|
574
|
|
507
|
|
|
Total tangible
assets, period-end (1)
|
(H)
|
7,695
|
|
7,198
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(I)
|
31,156
|
|
29,521
|
|
|
Average diluted
shares outstanding (thousands)
|
(J)
|
30,728
|
|
26,713
|
|
|
Core earnings per
common share, diluted
|
(A/J)
|
$
|
1.07
|
|
$
|
1.01
|
|
|
Tangible book value
per common share, period-end
|
(G/I)
|
|
18.44
|
|
|
17.16
|
|
|
Total tangible
shareholders' equity/total tangible assets
|
(G/H)
|
7.46
|
|
7.04
|
|
|
|
|
|
|
|
|
|
Performance ratios
(2)
|
|
|
|
|
|
|
GAAP return on
assets
|
|
0.82
|
%
|
0.55
|
%
|
|
Core return on
assets
|
(A/D)
|
0.85
|
|
0.79
|
|
|
GAAP return on
equity
|
|
7.18
|
|
5.03
|
|
|
Core return on
equity
|
(A/E)
|
7.41
|
|
7.20
|
|
|
Core return on
tangible equity (3)
|
(A/F)
|
12.32
|
|
12.23
|
|
|
Efficiency ratio
(4)
|
(C-M) /
(B+K+N)
|
59.29
|
|
62.34
|
|
|
Net interest
margin
|
|
3.32
|
|
3.24
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (5)
|
(K)
|
$
|
4,365
|
|
$
|
8,068
|
|
|
Non-interest income
charge on tax-credit investments (6)
|
(L)
|
(3,039)
|
|
(5,703)
|
|
|
Net income on
tax-credit investments
|
(K+L)
|
1,326
|
|
2,365
|
|
|
Intangible
amortization
|
(M)
|
1,606
|
|
1,835
|
|
|
Fully taxable
equivalent income adjustment
|
(N)
|
2,314
|
|
1,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total tangible
shareholders' equity is computed by taking total shareholders'
equity less the intangible assets at period-end.
|
|
Total tangible assets
is computed by taking total assets less the intangible assets at
period-end.
|
|
(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) Core return on
tangible equity is computed by dividing the total core income
adjusted for the tax-affected amortization of
|
|
intangible assets,
assuming a 40% marginal rate, by tangible equity.
|
|
(4) Non-GAAP
financial measure.
|
|
(5) The tax benefit
is the direct reduction to the income tax provision due to tax
credits and deductions generated from investments
in
|
|
historic
rehabilitation, low-income housing, new market projects, and
renewable energy.
|
|
(6) The non-interest
income charge is the reduction to the tax-advantaged investments,
which are incurred as the tax credits are
generated.
|
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SOURCE Berkshire Hills Bancorp, Inc.