PITTSFIELD, Mass., July 23, 2014 /PRNewswire/ -- Berkshire Hills
Bancorp, Inc. (NYSE: BHLB) reported a 5% increase in core earnings
per share to $0.44 in the second
quarter of 2014 from $0.42 in the
prior quarter. Core earnings growth reflected the benefits of
the first quarter branch acquisition combined with strong second
quarter loan growth.
Second quarter GAAP EPS totaled $0.46 per share, reflecting the benefit of the
lower GAAP tax rate. The first quarter branch purchase
contributed to net non-core charges totaling $0.46 per share in that period, resulting in a
$0.04 per share first quarter GAAP
loss. There were no material non-core adjustments to
operating revenue and expense in the second quarter.
SECOND QUARTER FINANCIAL HIGHLIGHTS (income related
comparisons are to prior quarter):
- 4% increase in net interest income
- 10% increase in fee income
- 5% increase in total loans, including 7% increase in commercial
loans
- 6% increase in deposits
- 3.26% net interest margin
- Flat core non-interest expense; 13% decrease in GAAP
expense
- 0.45% non-performing assets/total assets
- 0.31% net loan charge-offs/average loans
CEO Michael Daly stated, "Core
EPS grew by 5% in each of the last two quarters, and is now up 10%
compared to the fourth quarter of 2013. We are benefiting
from the increased core deposits and market presence following our
New York branch purchase.
Our teams produced strong and balanced growth in loans and fee
income across our franchise, while our restructured base of core
operating expenses was held flat. Core earnings growth was
clean and solid, with less contribution from purchased loan
accretion. The benefits of our franchise investment are
accumulating and our momentum is good as we pursue further market
share and profit growth in the second half of the year."
Mr. Daly continued, "We recently welcomed Bill Ryan to our Board as independent Chairman,
following Larry Bossidy in that
position. Under Bill's leadership, Banknorth built a high
performing regional franchise which was recognized in 2004 by
Forbes Magazine as one of 'America's Best Managed
Companies'. Bill and I share a vision of the market and
investment opportunity for a high-performance locally based bank to
serve our New England and New York
markets. We are pleased and excited that he has joined our
team. We appreciate the many years of distinguished service
that Larry Bossidy provided as
Chairman, and we look forward to continuing to enjoy his company as
an investor and friend of our organization."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of
$0.18 per share to shareholders of
record at the close of business on August 7,
2014, payable on August 21,
2014. This dividend equates to a 3.1% annualized yield based
on the $23.57 average closing price
of Berkshire's common stock during
the second quarter of 2014.
FINANCIAL CONDITION
Berkshire increased its total
assets by $301 million, or 5%, in the
most recent quarter, with loan growth funded by deposit
growth. At quarter-end, measures of asset quality, liquidity,
interest rate sensitivity, and capital remained solid.
Tangible book value per share increased by 4% to $16.40 in the second quarter and was up from the
start of the year, more than offsetting the dilution from the
branch purchase in the first quarter. Total book value per share
increased by 2% to $27.49 during the
quarter.
Total loans increased by $208
million, or 5%, during the second quarter. This
included 8% growth in commercial real estate loans, 4% growth in
commercial and industrial loans, 5% growth in consumer loans, and
1% growth in residential mortgages. Commercial real estate
loan growth was especially strong and originations accelerated
following delays in the winter quarter. C&I loans
continue to grow at a double digit annualized rate.
Commercial loan growth was recorded across the footprint.
Consumer loan growth continued to be concentrated in automobile
loans. Residential growth was net of secondary market sales,
as these revenues accelerated in the second quarter. Loan
growth continues to include the benefit of indirect originations
and participations from relationships within the bank's
regions. In addition to the loan growth, investment
securities increased by $53 million,
or 5%, during the quarter due primarily to the purchase of
mortgage-backed securities.
Asset quality metrics remained favorable. Annualized net
loan charge-offs measured 0.31% of average
loans. Quarter-end non-performing assets decreased to
0.45% of total assets and accruing delinquent loans decreased to
0.55% of total loans. The loan loss allowance measured 0.77%
of total loans; approximately 20% of quarter-end loans were
balances recorded at fair value in recent bank acquisitions.
Total deposits increased by $260
million, or 6%, in the second quarter due to growth in time
deposits. This resulted from increased utilization of
brokered deposits as a cost efficient alternative to borrowings in
order to fund the unusually strong loan growth during the
quarter. The cost of funds decreased by 0.05% to 0.51% due to
the Company's funding strategies. At midyear, the ratio of
loans/deposits stood at 99%, equity/assets measured 10.9%, and
tangible equity/assets measured 6.8%.
RESULTS OF OPERATIONS
Second quarter 2014 core earnings totaled $10.9 million or $0.44 per share. Core EPS increased by
$0.02, or 5%, from the prior quarter,
despite a $0.04 per share decrease in
core purchased loan accretion. Earnings growth reflected the
combined benefit of the first quarter acquisition of core deposits
and the strong loan growth in the second quarter. GAAP
earnings totaled $11.5 million or
$0.46 per share and included the
benefit of the lower GAAP tax rate. The core return on
tangible equity improved to 11.3% in the second quarter, while the
GAAP return on equity improved to 6.6%.
Total net interest and fee revenue increased by 5% to
$58.2 million in the second quarter,
from $55.4 million in the prior
quarter. Net interest income increased by 4% due primarily to
balance sheet growth. Net interest income included purchased
loan accretion totaling $1.0 million
in the second quarter due to recoveries of purchased impaired
loans. The net interest margin before accretion decreased to
3.19% from 3.24% for these periods due to loan yield compression in
the ongoing low interest rate environment. Including
accretion, the net interest margin decreased from 3.35% to
3.26%. Fee income increased by 10% over the prior quarter,
with strong growth in banking fees offsetting seasonal declines in
insurance and wealth management fees.
The provision for loan losses increased to $4.0 million in the second quarter from
$3.4 million in the prior quarter due
to a $0.8 million increase in the
loan loss allowance related to growth in total loans.
Core non-interest expense was flat at $39.1 million in the second quarter compared to
the first quarter. A seasonal decline in benefits and
maintenance expense was offset by costs related to increased
business volume. The efficiency ratio improved to 62.96% from
64.42% for these periods due to the positive operating leverage
generated by revenue growth. GAAP non-interest expense was
$39.3 million and $45.4 million in these respective quarters.
The higher GAAP expenses in the first quarter included $6.3 million in merger, restructuring, and
conversion expenses primarily related to the branch
acquisition. Due to these non-operating costs, the GAAP tax
rate was 26% in the second quarter and first half of 2014.
The core tax rate was 30% for these periods.
CONFERENCE CALL
Berkshire will conduct a
conference call/webcast at 10:00 a.m.
eastern time on Thursday, July 24,
2014 to discuss the results for the quarter and provide
guidance about expected future results. Participants should dial-in
to the call a few minutes before it begins. Information about the
conference call follows:
Dial-in:
|
888-317-6003
|
Elite Entry
Number:
|
2985835
|
Webcast:
|
berkshirebank.com
(investor relations link)
|
|
|
A PDF version of this earnings release is available at the above
link. A telephone replay of the call will be available
through Friday, August 1, 2014 by
calling 877-344-7529 and entering conference number: 10048732. The
webcast will be available at Berkshire's website above for an extended
period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank –
America's Most Exciting Bank®. The Company has
$6.3 billion in assets and 90
full-service branch offices in Massachusetts, New
York, Connecticut, and
Vermont providing personal and
business banking, insurance, and wealth management
services.
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.
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 in the
accompanying financial tables. In all cases, it should be
understood that non-GAAP per share measures do not depict amounts
that accrue directly to the benefit of shareholders. The
Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude amounts which the Company
views as unrelated to its normalized operations, including
securities gains/losses, losses recorded for hedge terminations,
merger costs, restructuring costs, systems conversion costs, and
out-of-period adjustments. Non-core adjustments are presented
net of an adjustment for income tax expense. This adjustment
in 2013 was based on the marginal tax rate applied to the net
non-core pre-tax adjustments. In 2014, due to the comparative
magnitude of the non-core items, this adjustment was determined as
the difference between the GAAP tax rate and the effective tax rate
applicable to core income. Accordingly, GAAP income exceeded
core income in the most recent quarter due to the higher effective
full year tax rate on core income before the net non-core
charges. The efficiency ratio is adjusted for non-core
revenue and expense items and for tax preference items. The
Company also adjusts certain equity related measures 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, and professional fees.
Systems conversion costs relate primarily to the Company's core
systems conversion and related systems conversions costs.
Restructuring costs primarily consist of employee severance
costs and costs and losses associated with the disposition of
assets which were undertaken as a project to right-size expenses
following a decline in revenue in 2013. Out-of-period
accounting adjustments for interest income on acquired loans were
recorded following systems conversions and merger related
accounting activity and were deemed non-core. Non-core
expenses include variable rate compensation related to non-core
items.
CONTACTS
Investor Relations Contact
Allison O'Rourke, Vice President - Investor
Relations; 413-236-3149
Media Contact
Ray
Smith, Assistant Vice President - Marketing;
413-236-3756
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-1)
|
|
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
(In
thousands)
|
2014
|
|
2014
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
81,642
|
|
$
60,023
|
|
$
56,841
|
|
Short-term
investments
|
31,236
|
|
12,650
|
|
18,698
|
|
Total cash and
short-term investments
|
112,878
|
|
72,673
|
|
75,539
|
|
|
|
|
|
|
|
|
Trading
security
|
14,971
|
|
14,923
|
|
14,840
|
|
Securities available
for sale, at fair value
|
1,080,668
|
|
1,033,637
|
|
760,048
|
|
Securities held to
maturity, at amortized cost
|
43,178
|
|
43,159
|
|
44,921
|
|
Federal Home Loan
Bank stock and other restricted securities
|
59,479
|
|
53,124
|
|
50,282
|
|
Total
securities
|
1,198,296
|
|
1,144,843
|
|
870,091
|
|
|
|
|
|
|
|
|
Loans held for sale,
at fair value
|
20,185
|
|
7,669
|
|
15,840
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,397,231
|
|
1,377,771
|
|
1,384,274
|
|
Commercial real
estate
|
1,579,500
|
|
1,456,976
|
|
1,417,120
|
|
Commercial and
industrial loans
|
727,959
|
|
696,895
|
|
687,293
|
|
Consumer
loans
|
745,613
|
|
710,985
|
|
691,836
|
|
Total
loans
|
4,450,303
|
|
4,242,627
|
|
4,180,523
|
|
Less: Allowance for
loan losses
|
(34,353)
|
|
(33,602)
|
|
(33,323)
|
|
Net loans
|
4,415,950
|
|
4,209,025
|
|
4,147,200
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
86,936
|
|
87,805
|
|
84,459
|
|
Other real estate
owned
|
2,445
|
|
2,418
|
|
2,758
|
|
Goodwill
|
264,770
|
|
264,770
|
|
256,871
|
|
Other intangible
assets
|
13,761
|
|
15,035
|
|
13,791
|
|
Cash surrender value
of bank-owned life insurance
|
102,988
|
|
102,343
|
|
101,530
|
|
Deferred tax asset,
net
|
37,911
|
|
40,202
|
|
50,711
|
|
Other
assets
|
55,254
|
|
63,548
|
|
54,009
|
|
Total
assets
|
$
6,311,374
|
|
$
6,010,331
|
|
$
5,672,799
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Demand
deposits
|
$
794,574
|
|
$
770,841
|
|
$
677,917
|
|
NOW
deposits
|
416,879
|
|
434,833
|
|
353,612
|
|
Money market
deposits
|
1,425,348
|
|
1,459,062
|
|
1,383,856
|
|
Savings
deposits
|
478,770
|
|
478,107
|
|
431,496
|
|
Time
deposits
|
1,362,992
|
|
1,075,740
|
|
1,001,648
|
|
Total
deposits
|
4,478,563
|
|
4,218,583
|
|
3,848,529
|
|
|
|
|
|
|
|
|
Senior
borrowings
|
964,179
|
|
936,747
|
|
974,428
|
|
Subordinated
borrowings
|
89,713
|
|
89,696
|
|
89,679
|
|
Total
borrowings
|
1,053,892
|
|
1,026,443
|
|
1,064,107
|
|
|
|
|
|
|
|
|
Other
liabilities
|
88,456
|
|
87,715
|
|
82,101
|
|
Total
liabilities
|
5,620,911
|
|
5,332,741
|
|
4,994,737
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
690,463
|
|
677,590
|
|
678,062
|
|
Total liabilities and
stockholders' equity
|
$
6,311,374
|
|
$
6,010,331
|
|
$
5,672,799
|
|
|
|
|
|
|
|
|
(1) The Company
acquired 20 branches in Central New York on January 17, 2014,
including $440 million in deposits and $4 million in
loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-2)
|
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized growth
%
|
(Dollars in
millions)
|
|
June 30, 2014
Balance
|
|
Mar. 31, 2014
Balance
|
|
|
|
Dec. 31, 2013
Balance
|
|
Quarter ended
June 30, 2014
|
Year to
date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
$
1,397
|
|
$
1,378
|
|
|
|
$
1,384
|
|
6
|
%
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,579
|
|
1,457
|
|
|
|
1,417
|
|
33
|
|
23
|
|
Commercial and
industrial loans
|
|
728
|
|
697
|
|
|
|
688
|
|
18
|
|
12
|
|
Total commercial
loans
|
|
2,307
|
|
2,154
|
|
|
|
2,105
|
|
29
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
310
|
|
305
|
|
|
|
307
|
|
7
|
|
2
|
|
Auto and
other
|
|
436
|
|
406
|
|
|
|
385
|
|
29
|
|
26
|
|
Total consumer
loans
|
|
746
|
|
711
|
|
|
|
692
|
|
19
|
|
16
|
|
Total
loans
|
|
$
4,450
|
|
$
4,243
|
|
|
|
$
4,181
|
|
20
|
%
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized growth
%
|
(Dollars in
millions)
|
|
June 30, 2014
Balance
|
|
Mar. 31, 2014
Balance
|
|
Acquired Balance
(1)
|
|
Dec. 31, 2013
Balance
|
|
Quarter ended
June 30, 2014
|
Demand
|
|
$
795
|
|
$
771
|
|
$
110
|
|
$
678
|
|
|
12
|
%
|
|
NOW
|
|
417
|
|
435
|
|
80
|
|
354
|
|
|
(17)
|
|
|
Money
market
|
|
1,425
|
|
1,459
|
|
124
|
|
1,384
|
|
|
(9)
|
|
|
Savings
|
|
479
|
|
478
|
|
36
|
|
431
|
|
|
1
|
|
|
Total non-maturity
deposits
|
|
3,116
|
|
3,143
|
|
350
|
|
2,847
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
deposits
|
|
1,363
|
|
1,076
|
|
90
|
|
1,002
|
|
|
107
|
|
|
Total
deposits
|
|
$
4,479
|
|
$
4,219
|
|
$
440
|
|
$
3,849
|
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company
acquired 20 branches in Central New York on January 17, 2014,
including $440 million in deposits, as shown above, and $4 million
in loans. Annualized year to date deposit growth not displayed
following Q1 deposit acquisition.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-3)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
(In thousands,
except per share data)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Interest and
dividend income
|
|
|
|
|
|
|
|
Loans
|
$ 42,309
|
|
$ 45,443
|
|
$ 84,803
|
|
$ 92,524
|
Securities and
other
|
8,866
|
|
4,254
|
|
16,167
|
|
8,054
|
Total interest and
dividend income
|
51,175
|
|
49,697
|
|
100,970
|
|
100,578
|
Interest
expense
|
|
|
|
|
|
|
|
Deposits
|
4,478
|
|
5,052
|
|
9,199
|
|
10,415
|
Borrowings
|
2,368
|
|
3,541
|
|
4,676
|
|
7,122
|
Total interest
expense
|
6,846
|
|
8,593
|
|
13,875
|
|
17,537
|
Net interest
income
|
44,329
|
|
41,104
|
|
87,095
|
|
83,041
|
Non-interest
income
|
|
|
|
|
|
|
|
Loan related
income
|
1,846
|
|
2,644
|
|
3,094
|
|
5,361
|
Mortgage banking
income
|
691
|
|
2,129
|
|
1,063
|
|
4,346
|
Deposit related
fees
|
6,610
|
|
4,805
|
|
12,049
|
|
9,064
|
Insurance commissions
and fees
|
2,460
|
|
2,407
|
|
5,509
|
|
5,404
|
Wealth management
fees
|
2,294
|
|
2,070
|
|
4,843
|
|
4,334
|
Total fee
income
|
13,901
|
|
14,055
|
|
26,558
|
|
28,509
|
Other
|
402
|
|
546
|
|
926
|
|
890
|
Gain on sale of
securities, net
|
203
|
|
1,005
|
|
237
|
|
1,005
|
Loss on termination
of hedges
|
-
|
|
-
|
|
(8,792)
|
|
-
|
Total non-interest
income
|
14,506
|
|
15,606
|
|
18,929
|
|
30,404
|
Total net
revenue
|
58,835
|
|
56,710
|
|
106,024
|
|
113,445
|
Provision for loan
losses
|
3,989
|
|
2,700
|
|
7,385
|
|
5,100
|
Non-interest
expense
|
|
|
|
|
|
|
|
Compensation and
benefits
|
20,279
|
|
18,151
|
|
40,138
|
|
35,892
|
Occupancy and
equipment
|
6,656
|
|
5,737
|
|
13,470
|
|
11,505
|
Technology and
communications
|
3,800
|
|
3,480
|
|
7,578
|
|
6,471
|
Marketing and
promotion
|
621
|
|
603
|
|
1,142
|
|
1,241
|
Professional
services
|
1,024
|
|
1,764
|
|
2,176
|
|
3,254
|
FDIC premiums and
assessments
|
1,029
|
|
890
|
|
2,038
|
|
1,718
|
Other real estate
owned and foreclosures
|
33
|
|
284
|
|
556
|
|
307
|
Amortization of
intangible assets
|
1,274
|
|
1,345
|
|
2,580
|
|
2,722
|
Merger, restructuring
and conversion expenses
|
190
|
|
775
|
|
6,491
|
|
5,839
|
Other
|
4,357
|
|
4,906
|
|
8,454
|
|
8,469
|
Total non-interest
expense
|
39,263
|
|
37,935
|
|
84,623
|
|
77,418
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
15,583
|
|
16,075
|
|
14,016
|
|
30,927
|
Income tax
expense
|
4,119
|
|
4,038
|
|
3,658
|
|
8,425
|
Net
income
|
$ 11,464
|
|
$ 12,037
|
|
$ 10,358
|
|
$ 22,502
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.46
|
|
$
0.49
|
|
$
0.42
|
|
$
0.91
|
Diluted
|
$
0.46
|
|
$
0.48
|
|
$
0.42
|
|
$
0.90
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
24,715
|
|
24,779
|
|
24,707
|
|
24,863
|
Diluted
|
24,809
|
|
24,956
|
|
24,821
|
|
25,049
|
|
|
|
|
|
|
|
|
(1) The Company
acquired 20 branches in Central New York on January 17, 2014. The
income statement for the three months ended March 31, 2014
includes operations of the branch acquisition beginning on that
date.
|
(2) Merger,
restructuring and conversion expenses include branch acquisition
related expenses.
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED - (F-4)
|
|
Quarters
Ended
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(In thousands,
except per share data)
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 42,309
|
|
$ 42,494
|
|
$ 43,566
|
|
$ 50,025
|
|
$ 45,443
|
|
Securities and
other
|
8,866
|
|
7,301
|
|
5,093
|
|
4,479
|
|
4,254
|
|
Total interest and
dividend income
|
51,175
|
|
49,795
|
|
48,659
|
|
54,504
|
|
49,697
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
4,478
|
|
4,721
|
|
5,166
|
|
5,278
|
|
5,052
|
|
Borrowings
|
2,368
|
|
2,308
|
|
3,651
|
|
3,357
|
|
3,541
|
|
Total interest
expense
|
6,846
|
|
7,029
|
|
8,817
|
|
8,635
|
|
8,593
|
|
Net interest
income
|
44,329
|
|
42,766
|
|
39,842
|
|
45,869
|
|
41,104
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Loan related
income
|
1,846
|
|
1,248
|
|
1,578
|
|
1,308
|
|
2,644
|
|
Mortgage banking
income
|
691
|
|
372
|
|
445
|
|
444
|
|
2,129
|
|
Deposit related
fees
|
6,610
|
|
5,439
|
|
4,717
|
|
4,559
|
|
4,805
|
|
Insurance commissions
and fees
|
2,460
|
|
3,049
|
|
2,143
|
|
2,473
|
|
2,407
|
|
Wealth management
fees
|
2,294
|
|
2,549
|
|
2,212
|
|
2,137
|
|
2,070
|
|
Total fee
income
|
13,901
|
|
12,657
|
|
11,095
|
|
10,921
|
|
14,055
|
|
Other
|
402
|
|
524
|
|
1,227
|
|
832
|
|
546
|
|
Gain on sale of
securities, net
|
203
|
|
34
|
|
3,392
|
|
361
|
|
1,005
|
|
Loss on termination
of hedges
|
-
|
|
(8,792)
|
|
-
|
|
-
|
|
-
|
|
Total non-interest
income
|
14,506
|
|
4,423
|
|
15,714
|
|
12,114
|
|
15,606
|
|
Total net
revenue
|
58,835
|
|
47,189
|
|
55,556
|
|
57,983
|
|
56,710
|
|
Provision for loan
losses
|
3,989
|
|
3,396
|
|
3,100
|
|
3,178
|
|
2,700
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
20,279
|
|
19,859
|
|
16,736
|
|
18,506
|
|
18,151
|
|
Occupancy and
equipment
|
6,656
|
|
6,814
|
|
5,421
|
|
5,614
|
|
5,737
|
|
Technology and
communications
|
3,800
|
|
3,778
|
|
3,169
|
|
3,304
|
|
3,480
|
|
Marketing and
promotion
|
621
|
|
521
|
|
765
|
|
590
|
|
603
|
|
Professional
services
|
1,024
|
|
1,152
|
|
1,558
|
|
1,757
|
|
1,764
|
|
FDIC premiums and
assessments
|
1,029
|
|
1,009
|
|
899
|
|
856
|
|
890
|
|
Other real estate
owned and foreclosures
|
33
|
|
523
|
|
255
|
|
138
|
|
284
|
|
Amortization of
intangible assets
|
1,274
|
|
1,306
|
|
1,239
|
|
1,307
|
|
1,345
|
|
Merger, restructuring
and conversion expenses
|
190
|
|
6,301
|
|
2,493
|
|
6,516
|
|
775
|
|
Other
|
4,357
|
|
4,097
|
|
4,622
|
|
4,196
|
|
4,906
|
|
Total non-interest
expense
|
39,263
|
|
45,360
|
|
37,157
|
|
42,784
|
|
37,935
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
15,583
|
|
(1,567)
|
|
15,299
|
|
12,021
|
|
16,075
|
|
Income tax expense
(benefit)
|
4,119
|
|
(461)
|
|
4,762
|
|
3,917
|
|
4,038
|
|
Net income
(loss)
|
$ 11,464
|
|
$ (1,106)
|
|
$ 10,537
|
|
$ 8,104
|
|
$ 12,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.46
|
|
$ (0.04)
|
|
$
0.43
|
|
$
0.33
|
|
$
0.49
|
|
Diluted
|
$
0.46
|
|
$ (0.04)
|
|
$
0.42
|
|
$
0.33
|
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
24,715
|
|
24,698
|
|
24,701
|
|
24,748
|
|
24,779
|
|
Diluted
|
24,809
|
|
24,698
|
|
24,857
|
|
24,873
|
|
24,956
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See notes on Page
F-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED - (F-5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
Quarters Ended
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(Dollars in
thousands)
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
|
$
5,295
|
|
$
6,071
|
|
$
7,867
|
|
$
8,487
|
|
$
5,945
|
|
Commercial real
estate
|
|
|
12,583
|
|
13,036
|
|
13,739
|
|
13,800
|
|
14,948
|
|
Commercial and
industrial loans
|
|
|
4,821
|
|
2,411
|
|
2,356
|
|
2,753
|
|
3,481
|
|
Consumer
loans
|
|
|
3,359
|
|
3,846
|
|
3,493
|
|
3,227
|
|
2,405
|
|
Total non-accruing
loans
|
|
|
26,058
|
|
25,364
|
|
27,455
|
|
28,267
|
|
26,779
|
|
Other real estate
owned
|
|
|
2,445
|
|
2,418
|
|
2,758
|
|
3,561
|
|
2,713
|
|
Total non-performing
assets
|
|
|
$
28,503
|
|
$
27,782
|
|
$
30,213
|
|
$
31,828
|
|
$
29,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
|
|
0.59%
|
|
0.60%
|
|
0.66%
|
|
0.70%
|
|
0.69%
|
|
Total non-performing
assets/total assets
|
|
|
0.45%
|
|
0.46%
|
|
0.53%
|
|
0.58%
|
|
0.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
|
$
33,602
|
|
$
33,323
|
|
$
33,248
|
|
$
33,248
|
|
$
33,263
|
|
Charged-off
loans
|
|
|
(3,516)
|
|
(3,317)
|
|
(3,462)
|
|
(3,417)
|
|
(3,457)
|
|
Recoveries on
charged-off loans
|
|
|
278
|
|
200
|
|
437
|
|
239
|
|
742
|
|
Net loans
charged-off
|
|
|
(3,238)
|
|
(3,117)
|
|
(3,025)
|
|
(3,178)
|
|
(2,715)
|
|
Provision for loan
losses
|
|
|
3,989
|
|
3,396
|
|
3,100
|
|
3,178
|
|
2,700
|
|
Balance at end of
period
|
|
|
$
34,353
|
|
$
33,602
|
|
$
33,323
|
|
$
33,248
|
|
$
33,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans
|
|
|
0.77%
|
|
0.79%
|
|
0.80%
|
|
0.83%
|
|
0.86%
|
|
Allowance for loan
losses/non-accruing loans
|
|
|
132%
|
|
132%
|
|
121%
|
|
118%
|
|
124%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
|
$
(602)
|
|
$
(1,055)
|
|
$
(564)
|
|
$
(351)
|
|
$
(852)
|
|
Commercial real
estate
|
|
|
(1,028)
|
|
(1,105)
|
|
(763)
|
|
(1,480)
|
|
(1,283)
|
|
Commercial and
industrial loans
|
|
|
(1,341)
|
|
(215)
|
|
(1,042)
|
|
(940)
|
|
(93)
|
|
Home
equity
|
|
|
(51)
|
|
(458)
|
|
45
|
|
(174)
|
|
(121)
|
|
Auto and other
consumer
|
|
|
(216)
|
|
(284)
|
|
(701)
|
|
(233)
|
|
(366)
|
|
Total, net
|
|
|
$
(3,238)
|
|
$
(3,117)
|
|
$
(3,025)
|
|
$
(3,178)
|
|
$
(2,715)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
|
0.31%
|
|
0.30%
|
|
0.31%
|
|
0.32%
|
|
0.27%
|
|
Net charge-offs (YTD
annualized)/average loans
|
|
0.30%
|
|
0.30%
|
|
0.29%
|
|
0.28%
|
|
0.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
|
|
|
|
30-89 Days
delinquent
|
|
|
0.34%
|
|
0.37%
|
|
0.51%
|
|
0.42%
|
|
0.70%
|
|
90+ Days delinquent
and still accruing
|
|
|
0.21%
|
|
0.22%
|
|
0.22%
|
|
0.29%
|
|
0.40%
|
|
Total accruing
delinquent loans
|
|
|
0.55%
|
|
0.59%
|
|
0.73%
|
|
0.71%
|
|
1.10%
|
|
Non-accruing
loans
|
|
|
0.59%
|
|
0.60%
|
|
0.66%
|
|
0.70%
|
|
0.69%
|
|
Total delinquent and
non-accruing loans
|
|
|
1.14%
|
|
1.19%
|
|
1.39%
|
|
1.41%
|
|
1.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-6)
|
|
|
|
|
|
|
|
|
|
At or for the
Quarters Ended
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings,
diluted
|
$ 0.44
|
|
$ 0.42
|
|
$ 0.40
|
|
$ 0.43
|
|
$ 0.48
|
|
|
|
Net earnings,
diluted
|
0.46
|
|
(0.04)
|
|
0.42
|
|
0.33
|
|
0.48
|
|
|
|
Tangible book
value
|
16.40
|
|
15.84
|
|
16.27
|
|
16.08
|
|
15.96
|
|
|
|
Total book
value
|
27.49
|
|
26.99
|
|
27.08
|
|
26.98
|
|
26.82
|
|
|
|
Market price at
period end
|
23.22
|
|
25.88
|
|
27.27
|
|
25.11
|
|
27.76
|
|
|
|
Dividends
|
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
assets
|
0.71
|
%
|
0.71
|
%
|
0.73
|
%
|
0.81
|
%
|
0.92
|
%
|
|
|
Return on
assets
|
0.75
|
|
(0.08)
|
|
0.77
|
|
0.61
|
|
0.93
|
|
|
|
Core return on
equity
|
6.32
|
|
6.02
|
|
5.87
|
|
6.29
|
|
7.13
|
|
|
|
Core return on
tangible equity
|
11.34
|
|
10.84
|
|
10.47
|
|
11.18
|
|
12.84
|
|
|
|
Return on
equity
|
6.64
|
|
(0.64)
|
|
6.18
|
|
4.74
|
|
7.21
|
|
|
|
Net interest margin,
fully taxable equivalent
|
3.26
|
|
3.35
|
|
3.26
|
|
3.93
|
|
3.63
|
|
|
|
Fee income/Net
interest and fee income
|
23.87
|
|
22.84
|
|
21.78
|
|
19.23
|
|
25.48
|
|
|
|
Efficiency
ratio
|
62.96
|
|
64.42
|
|
63.21
|
|
60.98
|
|
63.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans, year-to-date (annualized)
|
14
|
%
|
9
|
%
|
5
|
%
|
1
|
%
|
(2)
|
%
|
|
|
Total loans,
year-to-date (annualized)
|
10
|
|
6
|
|
5
|
|
1
|
|
(6)
|
|
|
|
Total deposits,
year-to-date (annualized)
|
12
|
|
38
|
|
(6)
|
|
(7)
|
|
(14)
|
|
|
|
Total net revenues,
year-to-date, compared to prior year
|
(7)
|
|
(17)
|
|
15
|
|
24
|
|
28
|
|
|
|
Earnings per share,
year-to-date, compared to prior year
|
(54)
|
|
(110)
|
|
11
|
|
11
|
|
40
|
|
|
|
Core earnings per
share, year-to-date, compared to prior year
|
(15)
|
|
(22)
|
|
(6)
|
|
3
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
DATA (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 6,311
|
|
$ 6,010
|
|
$ 5,673
|
|
$ 5,450
|
|
$ 5,224
|
|
|
|
Total earning
assets
|
5,700
|
|
5,408
|
|
5,085
|
|
4,856
|
|
4,629
|
|
|
|
Total
loans
|
|
4,450
|
|
4,243
|
|
4,181
|
|
4,024
|
|
3,871
|
|
|
|
Allowance for loan
losses
|
34
|
|
34
|
|
33
|
|
33
|
|
33
|
|
|
|
Total intangible
assets
|
279
|
|
280
|
|
271
|
|
272
|
|
272
|
|
|
|
Total
deposits
|
|
4,479
|
|
4,219
|
|
3,849
|
|
3,882
|
|
3,815
|
|
|
|
Total stockholders'
equity
|
690
|
|
678
|
|
678
|
|
673
|
|
673
|
|
|
|
Total core
income
|
10.9
|
|
10.4
|
|
10.0
|
|
10.7
|
|
11.9
|
|
|
|
Total net
income
|
11.5
|
|
(1.1)
|
|
10.5
|
|
8.1
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.31
|
%
|
0.30
|
%
|
0.31
|
%
|
0.32
|
%
|
0.27
|
%
|
|
|
Allowance for loan
losses/total loans
|
0.77
|
|
0.79
|
|
0.80
|
|
0.83
|
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDITION
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
to total assets
|
10.94
|
%
|
11.27
|
%
|
11.95
|
%
|
12.35
|
%
|
12.88
|
%
|
|
|
Tangible
stockholders' equity to tangible assets
|
6.81
|
|
6.94
|
|
7.54
|
|
7.74
|
|
8.10
|
|
|
|
Investments to total
assets
|
18.99
|
|
19.05
|
|
15.34
|
|
14.48
|
|
12.85
|
|
|
|
Loans/deposits
|
99
|
|
101
|
|
109
|
|
104
|
|
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliation of
Non-GAAP financial measures, including all references to core and
tangible amounts, appear on pages F-9 & F-10. Tangible assets are total assets less total
intangible assets.
|
|
(2)
|
All performance
ratios are annualized and are based on average balance sheet
amounts, where applicable.
|
|
|
|
|
|
|
(3)
|
See note on tangible
equity on pages F-9 & F-10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
|
|
|
|
Quarters
Ended
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
(In
thousands)
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
$ 1,379,625
|
|
$ 1,379,266
|
|
$ 1,330,674
|
|
$ 1,247,661
|
|
$ 1,218,192
|
|
Commercial real
estate
|
1,488,462
|
|
1,420,382
|
|
1,381,628
|
|
1,353,923
|
|
1,381,755
|
|
Commercial and
industrial loans
|
703,798
|
|
684,776
|
|
673,292
|
|
647,939
|
|
627,591
|
|
Consumer
loans
|
729,654
|
|
699,598
|
|
687,540
|
|
651,565
|
|
634,715
|
|
Total
loans
|
4,301,539
|
|
4,184,022
|
|
4,073,134
|
|
3,901,088
|
|
3,862,253
|
|
Securities
|
1,225,646
|
|
1,047,658
|
|
813,417
|
|
735,307
|
|
655,396
|
|
Short-term
investments and loans held for sale
|
28,426
|
|
28,631
|
|
35,438
|
|
60,820
|
|
90,680
|
|
Total earning
assets
|
5,555,611
|
|
5,260,311
|
|
4,921,989
|
|
4,697,215
|
|
4,608,329
|
|
Goodwill and other
intangible assets
|
279,024
|
|
278,386
|
|
271,147
|
|
271,670
|
|
272,421
|
|
Other
assets
|
311,176
|
|
312,145
|
|
305,617
|
|
317,722
|
|
317,856
|
|
Total
assets
|
$ 6,145,811
|
|
$ 5,850,842
|
|
$ 5,498,753
|
|
$ 5,286,607
|
|
$ 5,198,606
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
NOW
|
$
425,824
|
|
$
409,631
|
|
$
348,600
|
|
$
345,682
|
|
$
358,255
|
|
Money
market
|
1,448,624
|
|
1,490,408
|
|
1,392,570
|
|
1,329,591
|
|
1,358,590
|
|
Savings
|
481,790
|
|
463,615
|
|
435,766
|
|
442,408
|
|
449,296
|
|
Time
|
1,152,651
|
|
1,069,987
|
|
1,044,850
|
|
1,064,199
|
|
1,087,357
|
|
Total
interest-bearing deposits
|
3,508,889
|
|
3,433,641
|
|
3,221,786
|
|
3,181,880
|
|
3,253,498
|
|
Borrowings
|
1,113,431
|
|
899,458
|
|
857,848
|
|
708,798
|
|
574,822
|
|
Total
interest-bearing liabilities
|
4,622,320
|
|
4,333,099
|
|
4,079,634
|
|
3,890,678
|
|
3,828,320
|
|
Non-interest-bearing
demand deposits
|
779,775
|
|
749,982
|
|
681,368
|
|
658,568
|
|
636,469
|
|
Other
liabilities
|
52,712
|
|
76,258
|
|
56,261
|
|
52,874
|
|
65,568
|
|
Total
liabilities
|
5,454,807
|
|
5,159,339
|
|
4,817,263
|
|
4,602,120
|
|
4,530,357
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
691,004
|
|
691,503
|
|
681,490
|
|
684,487
|
|
668,249
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 6,145,811
|
|
$ 5,850,842
|
|
$ 5,498,753
|
|
$ 5,286,607
|
|
$ 5,198,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
Total non-maturity
deposits
|
$ 3,136,013
|
|
$ 3,113,636
|
|
$ 2,858,304
|
|
$ 2,776,249
|
|
$ 2,802,610
|
|
Total
deposits
|
4,288,664
|
|
4,183,623
|
|
3,903,154
|
|
3,840,448
|
|
3,889,967
|
|
Fully taxable
equivalent income adjustment
|
852
|
|
718
|
|
639
|
|
652
|
|
644
|
|
Total average
tangible equity
|
411,980
|
|
413,117
|
|
410,343
|
|
412,817
|
|
395,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
for securities available-for-sale are based on amortized
cost. Total loans include non-accruing loans.
|
|
|
(2) Total average
tangible equity results from the subtraction of average goodwill
and other intangible assets from total
average
|
|
stockholders'
equity.
|
|
|
|
|
|
|
|
|
|
|
(3) The average
balances of deposits include the deposits held for sale presented
under other liabilities on the consolidated balance
sheet.
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE
YIELDS (Fully Taxable Equivalent - Annualized) - UNAUDITED -
(F-8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
3.99
|
%
|
4.12
|
%
|
3.98
|
%
|
3.99
|
%
|
4.19
|
%
|
Commercial real
estate
|
4.16
|
|
4.44
|
|
4.73
|
|
5.80
|
|
5.27
|
|
Commercial and
industrial loans
|
3.82
|
|
3.97
|
|
3.91
|
|
6.09
|
|
4.04
|
|
Consumer
loans
|
3.49
|
|
3.56
|
|
4.01
|
|
4.39
|
|
4.78
|
|
Total
loans
|
3.96
|
|
4.13
|
|
4.26
|
|
5.02
|
|
4.67
|
|
Securities
|
3.13
|
|
3.04
|
|
2.72
|
|
2.77
|
|
3.00
|
|
Short-term
investments and loans held for sale
|
1.40
|
|
1.51
|
|
1.92
|
|
4.05
|
|
2.02
|
|
Total earning
assets
|
3.76
|
|
3.89
|
|
3.97
|
|
4.66
|
|
4.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
NOW
|
0.15
|
|
0.15
|
|
0.18
|
|
0.18
|
|
0.26
|
|
Money
market
|
0.36
|
|
0.37
|
|
0.44
|
|
0.44
|
|
0.39
|
|
Savings
|
0.16
|
|
0.16
|
|
0.16
|
|
0.16
|
|
0.17
|
|
Time
|
0.98
|
|
1.15
|
|
1.25
|
|
1.29
|
|
1.23
|
|
Total
interest-bearing deposits
|
0.51
|
|
0.56
|
|
0.64
|
|
0.66
|
|
0.62
|
|
Borrowings
|
0.85
|
|
1.04
|
|
1.69
|
|
1.88
|
|
2.47
|
|
Total
interest-bearing liabilities
|
0.59
|
|
0.66
|
|
0.86
|
|
0.88
|
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
3.17
|
|
3.23
|
|
3.11
|
|
3.78
|
|
3.48
|
|
Net interest
margin
|
3.26
|
|
3.35
|
|
3.26
|
|
3.93
|
|
3.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
funds
|
0.51
|
|
0.56
|
|
0.73
|
|
0.75
|
|
0.77
|
|
Cost of
deposits
|
0.42
|
|
0.46
|
|
0.53
|
|
0.55
|
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of funds
includes all deposits and borrowings.
|
|
|
(2) The average
yields of deposits include the deposits held for
sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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BERKSHIRE HILLS
BANCORP, INC.
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RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-9)
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At or for the
Quarters Ended
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June
30,
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Mar.
31,
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Dec.
31,
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Sept.
30,
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June
30,
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(Dollars in
thousands)
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2014
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2014
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2013
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2013
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2013
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Net income
(loss)
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$ 11,464
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$ (1,106)
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$ 10,537
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$ 8,104
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$ 12,037
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Adj: Gain on sale of
securities, net
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(203)
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(34)
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(3,392)
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(361)
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(1,005)
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Adj: Loss on
termination of hedges
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-
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8,792
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-
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-
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-
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Adj: Merger and
acquisition expenses
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52
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3,637
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932
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1,307
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775
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Adj: Restructuring,
conversion and other expenses (5)
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138
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2,665
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1,561
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5,709
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-
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Adj: Out-of-period
adjustment (6)
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-
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1,381
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-
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(2,222)
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-
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Adj: Income
taxes
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(536)
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(4,923)
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364
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(1,788)
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93
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Total core
income
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(A)
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$ 10,915
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$ 10,412
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$ 10,002
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$ 10,749
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$ 11,900
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Total
revenue
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$ 58,835
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$ 47,189
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$ 55,556
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$ 57,983
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$ 56,710
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Adj: Gain on sale of
securities, net
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(203)
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(34)
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(3,392)
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(361)
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(1,005)
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Adj: Loss on
termination of hedges
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-
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8,792
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-
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-
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-
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Adj: Out-of-period
adjustment (6)
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-
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1,381
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-
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(2,222)
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-
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Total core
revenue
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$ 58,632
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$ 57,328
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$ 52,164
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$ 55,400
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$ 55,705
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Total non-interest
expense
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$ 39,263
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$ 45,360
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$ 37,157
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$ 42,784
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$ 37,935
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Less: Total non-core
expense (see above)
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(190)
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(6,302)
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(2,493)
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(7,016)
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(775)
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Core non-interest
expense
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$ 39,073
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$ 39,058
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$ 34,664
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$ 35,768
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$ 37,160
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(Dollars in
millions, except per share data)
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Total average
assets
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(B)
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$ 6,146
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$ 5,851
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$ 5,499
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$ 5,287
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$ 5,199
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Total average
stockholders'
equity
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(C)
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691
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692
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681
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684
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668
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Total average
tangible stockholders'
equity
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(D)
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412
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413
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410
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413
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396
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Total tangible
stockholders' equity, period-end (7)
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(E)
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411
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398
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407
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401
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401
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Total common shares
outstanding, period-end
(thousands)
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(F)
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25,115
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25,105
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25,036
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24,952
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25,096
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Average diluted
shares outstanding (thousands) (8)
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(G)
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24,809
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24,833
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24,857
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24,873
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24,956
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Core earnings per
share, diluted
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(A/G)
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$
0.44
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$
0.42
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$
0.40
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$
0.43
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$
0.48
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Tangible book value
per share, period-end
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(E/F)
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$ 16.40
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$ 15.84
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$ 16.27
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$ 16.08
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$ 15.96
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Core return on
assets
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(A/B)
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0.71
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%
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0.71
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%
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0.73
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%
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0.81
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%
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0.92
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%
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Core return on
equity
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(A/C)
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6.32
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6.02
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5.87
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6.29
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7.13
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Core return on
tangible equity (4)
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(A/D)
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11.34
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10.84
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10.47
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11.18
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12.84
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Efficiency ratio
(1)
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62.96
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64.42
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63.21
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60.98
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63.05
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Supplementary
data
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Tax credit benefit of
tax shelter investments
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$
555
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$
555
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$
80
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$
458
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$
458
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Intangible
amortization
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$ 1,274
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$ 1,306
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$ 1,239
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$ 1,307
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$ 1,345
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(1) Efficiency ratio
is computed by dividing total core tangible non-interest expense by
the sum of total net interest income on a fully taxable
equivalent basis and total core non-interest income adjusted to
include tax credit benefit of tax shelter investments. The Company
uses this non-GAAP measure to provide important information
regarding its operational efficiency.
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(2) Ratios are
annualized and based on average balance sheet amounts, where
applicable.
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(3) Quarterly data
may not sum to year-to-date data due to rounding.
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(4) 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.
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(5) Prior period
variable compensation is shown above under restructuring,
conversion and other expenses.
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(6) The out of period
adjustments shown above relate to interest income earned on loans
acquired in bank acquisitions.
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(7) Total tangible
stockholders' equity is computed by taking total stockholders'
equity less the intangible assets at period-end.
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(8) Average diluted
shares computed for core earnings per share differ from GAAP
average diluted shares, in the first quarter of 2014, due to
the GAAP net loss compared to core net income for the
period.
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BERKSHIRE HILLS
BANCORP, INC.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-10)
|
|
|
|
|
|
|
|
|
|
At or for the Six
Months Ended
|
|
|
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June
30,
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June
30,
|
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(Dollars in
thousands)
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|
2014
|
|
2013
|
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Net
income
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$
10,358
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$
22,502
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Adj: Gain on sale of
securities, net
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(237)
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(1,005)
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Adj: Loss on
termination of hedges
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8,792
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-
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Adj: Merger and
acquisition expenses
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3,689
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5,759
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Adj: Restructuring,
conversion and other expenses (5)
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2,803
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80
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Adj: Out-of-period
adjustment (6)
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1,381
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-
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Adj: Income
taxes
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(5,459)
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(1,949)
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Total core
income
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(A)
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$
21,327
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$
25,387
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Total
revenue
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$
106,024
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$
113,445
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Adj: Gain on sale of
securities and other non-recurring gain, net
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(237)
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(1,005)
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Adj: Loss on
termination of hedges
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8,792
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|
-
|
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Adj: Out-of-period
adjustment (6)
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1,381
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-
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Total core
revenue
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$
115,960
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$
112,440
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Total non-interest
expense
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$
84,623
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$
77,418
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Less: Total non-core
expense (see above)
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(6,492)
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(5,839)
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Core non-interest
expense
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$
78,131
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$
71,579
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(Dollars in
millions, except per share data)
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Total average
assets
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(B)
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$
5,999
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$
5,220
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Total average
stockholders'
equity
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(C)
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692
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|
667
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Total average
tangible stockholders'
equity
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(D)
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413
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395
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Total tangible
stockholders' equity, period-end (7)
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(E)
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411
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401
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Total common shares
outstanding, period-end
(thousands)
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(F)
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25,115
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25,096
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Average diluted
common shares outstanding (thousands)
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(G)
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24,821
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|
25,049
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Core earnings per
common share, diluted
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(A/G)
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$
0.86
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$
1.01
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Tangible book value
per common share, period-end
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(E/F)
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$
16.40
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$
15.96
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Core return on
assets
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(A/B)
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0.71
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%
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0.97
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%
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Core return on
equity
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(A/C)
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6.17
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7.61
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Core return on
tangible equity (4)
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(A/D)
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11.09
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13.70
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Efficiency ratio
(1)
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63.68
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|
60.07
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|
Supplementary
data
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GAAP return on
assets
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0.35
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%
|
0.86
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%
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GAAP return on
equity
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3.00
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6.74
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Net interest
margin
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3.31
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3.68
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Tax credit benefit of
tax shelter investments
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$
1,110
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$
917
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Intangible
amortization
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$
2,580
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$
2,722
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(1) Efficiency ratio
is computed by dividing total core tangible non-interest expense by
the sum of total net interest income on a fully taxable
equivalent basis and total core non-interest income adjusted to
include tax credit benefit of tax shelter investments. The Company
uses this non-GAAP measure to provide important information
regarding its operational efficiency.
|
(2) Ratios are
annualized and based on average balance sheet amounts, where
applicable.
|
(3) Quarterly data
may not sum to year-to-date data due to rounding.
|
(4) 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.
|
(5) Prior period
variable compensation is shown above under restructuring,
conversion and other expenses.
|
(6) The out of period
adjustments shown above relate to interest income earned on loans
acquired in bank acquisitions.
|
(7) Total tangible
stockholders' equity is computed by taking total stockholders'
equity less the intangible assets at period-end.
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SOURCE Berkshire Hills Bancorp, Inc.