PITTSFIELD, Mass., Jan. 25, 2016 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NYSE: BHLB) reported a 13% increase in fourth
quarter core earnings per share to $0.54 in 2015 from $0.48 in 2014. The earnings improvement was
driven by 17% revenue growth produced by the Company's expanded
operations. Fourth quarter GAAP EPS increased to $0.52 from $0.46. For the year, core earnings per
share increased by 16% to $2.09 in
2015 from $1.80 in 2014, while GAAP
EPS increased to $1.73 from
$1.36. GAAP results in all
periods included net non-core charges primarily related to
acquisitions and restructuring activities.
FOURTH QUARTER FINANCIAL HIGHLIGHTS (comparisons are to
prior quarter unless otherwise stated):
- 10% annualized increase in core revenue (8% annualized increase
in GAAP revenue)
- 19% annualized increase in fee income
- 3.35% net interest margin
- 60.6% efficiency ratio
- 4% annualized loan growth
- 6% annualized deposit growth
- 0.29% non-performing assets/assets
- 0.25% net loan charge-offs/average loans
CEO Michael Daly stated, "We had
a strong finish to the year, with ongoing organic growth and
integration of our acquired operations. We exceeded our
earnings expectations while also continuing to fortify our balance
sheet structure. Our focus on revenue driven operating
leverage boosted our profitability year-over-year and our balance
sheet disciplines delivered further benefit in strong asset quality
and improved capital metrics."
"For the year, we recorded 18% revenue growth and built on the
power of our franchise investment in several ways. We
increased our market share in the middle of our footprint with the
acquisition and integration of Hampden Bancorp in our Hartford/Springfield market. Our teams continued
to develop our market presence in Eastern
Massachusetts and the Boston area, while business lending was
further diversified through expansion into national equipment
financing. Fee revenue grew significantly with the benefit of
investment in market teams across our business lines, including SBA
small business lending, wealth management, and our recruitment of
an auto lending team."
Mr. Daly concluded, "Business conditions are solid in our
markets and we are moving forward on many fronts in delivering
preferred solutions to our retail and commercial customers.
Our board has approved a 5% increase in our shareholder dividend,
which follows the 6% increase granted one year ago. I'm
pleased with our continuing progress towards building a premier
regional banking franchise and advancing towards our long term
profitability objectives."
DIVIDEND INCREASED
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 February
11, 2016, payable on February
25, 2016. This is a penny increase from $0.19 and the new dividend equates to a 2.8%
annualized yield based on the $29.02
average closing price of Berkshire's common stock during the fourth
quarter.
ANNUAL MEETING DATE SET
The Board of Directors voted that the Annual Meeting of
Shareholders shall be held on May 5,
2016 at the Crowne Plaza Hotel, One
West Street, Pittsfield,
Massachusetts at 10:00 a.m.
The date of March 10, 2016 was
established as the record date for the determination of the
shareholders entitled to notice of, and to vote at, the Annual
Meeting.
FINANCIAL CONDITION
Berkshire improved its balance
sheet mix in the most recent quarter, and total assets measured
$7.8 billion at year-end.
Ongoing loan originations supported a portfolio remix contributing
to current strategic objectives. Deposit generation funded
loan growth and reduced borrowings, while capital and liquidity
measures were further strengthened.
Total loans increased at a 4% annualized rate in the fourth
quarter. For the year, total loans increased by 22%,
including 8% annualized organic growth along with the benefit of
the acquisitions of Hampden Bancorp and Firestone Financial.
Berkshire has emphasized growth of
its commercial and industrial loans which are often variable rate
and tied to other commercial relationship products and
services. These loans increased by 30% in 2015, including the
benefit of acquired loans. Average deposits increased at a
13% annualized rate in the fourth quarter. For the year
deposit growth totaled 20%, including 10% growth from acquired
Hampden deposits. Demand
deposit balances increased by 24% in 2015 and are a focus of
relationship oriented business development in Berkshire's retail and commercial banking
markets.
Asset quality metrics remained favorable during the
quarter. Annualized net loan charge-offs measured 0.25% of
average loans and quarter-end non-performing assets measured 0.29%
of total assets. The loan loss allowance increased by 10% in
2015 primarily as a result of the 8% organic loan growth; no
allowance was initially recorded for the acquired Hampden and Firestone loans, which were
recorded at fair value.
For the year 2015, shareholders' equity increased by
$178 million including $157 million related to the issuance of 5.6
million shares for the Hampden and
Firestone acquisitions. Including the accretive benefit
of the acquisitions, tangible common equity increased by
$120 million. This contributed
to an increase in the ratio of tangible equity to assets to 7.4%
from 7.0%. Total equity similarly increased to 11.3% of
assets from 10.9%. Tangible book value per share increased by
$0.65, or 4%, to $17.84 and total book value per share improved by
$0.48, or 2%, to $28.64.
RESULTS OF OPERATIONS
The fourth quarter core return on tangible equity increased
year-over-year to 12.7% in 2015 from 12.0% in 2014. Net
non-core charges in both periods were primarily related to
acquisition activity. GAAP return on equity improved to 7.3%
from 6.5% in the above respective periods. The efficiency
ratio improved to 60.6% from 62.5% due to revenue driven positive
operating leverage.
Fourth quarter core earnings increased at a 9% annualized rate
compared to the linked quarter, including the benefit of 8%
annualized revenue growth driven by higher loans and
deposits. The net interest margin decreased to 3.35% from
3.37%. Net interest income includes purchased loan
accretion which is largely comprised of recoveries on the
resolution of impaired loans acquired in previous bank
acquisitions. This accretion totaled $2.4 million in the most recent quarter, compared
to $2.7 million in the linked quarter
and $1.7 million in the fourth
quarter of 2014. Excluding this accretion, the net interest
margin remained unchanged at 3.22% compared to the linked quarter
and benefited from Berkshire's
loan portfolio mix strategies which offset the ongoing impact of
low interest rates. Before accretion, yields on all major
categories of loans increased over the prior quarter. Higher
fourth quarter deposit costs reflected targeted promotions in
support of the Company's growth strategies. The 19%
annualized increase in fee income was primarily due to higher loan
related revenues including the benefit of increased commercial loan
interest rate swap volume.
The fourth quarter $4.4 million
loan loss provision was up slightly over the prior quarter, and
contributed to growth in the allowance after absorbing net
charge-offs. Core non-interest expense increased including
Firestone operations but decreased slightly in relation to average
assets. Full time equivalent staff totaled 1,221 positions at
year-end.
Berkshire's income tax rate on
core income was 16% in the most recent quarter and 17% in the prior
quarter. Berkshire's income
tax in both quarters benefited by $4.0
million from tax-advantaged commercial development projects
including both tax credits and tax deductions on the $2.9 million investment amortization included as
a charge against non-interest income. Berkshire's tax rate on GAAP income was 12% in
the most recent quarter and further reflected the tax benefit
related to non-core Hampden merger
related charges recorded earlier in the year.
CONFERENCE CALL
Berkshire will conduct a
conference call/webcast at 10:00 a.m.
eastern time on Tuesday, January 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: dpregister.com/10078526. 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, with automatic scheduling as an event in
their Outlook calendar. Participants may also reach the
registration link and access the webcast by logging in through the
investor section of our website at ir.berkshirebank.com. Those
parties who wish to participate by telephone may participate at the
above time by dialing 1-844-792-3726 and asking to join the
Berkshire Hills Bancorp (BHLB) earnings call. Telephone
participants should dial in a few minutes before the start of the
call. A telephone replay of the call will be available
through Friday, February 26, 2016 by
dialing 877-344-7529 and entering access number 10078526. 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®. Berkshire has $7.8
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.
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
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, and professional fees.
Restructuring costs primarily consist of costs and losses
associated with the disposition of assets and lease
terminations. In 2015, the Company's disclosures of
organic growth of loans and deposits exclude balances acquired
through the business combinations with Hampden Bancorp and
Firestone Financial.
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
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-1)
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
2015
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
72,918
|
|
$
50,716
|
|
$
54,179
|
|
Short-term
investments
|
30,644
|
|
42,855
|
|
17,575
|
|
Total cash and
short-term investments
|
103,562
|
|
93,571
|
|
71,754
|
|
|
|
|
|
|
|
|
Trading
security
|
14,189
|
|
14,587
|
|
14,909
|
|
Securities available
for sale, at fair value
|
1,154,457
|
|
1,176,609
|
|
1,091,818
|
|
Securities held to
maturity, at amortized cost
|
131,652
|
|
132,186
|
|
43,347
|
|
Federal Home Loan
Bank stock and other restricted securities
|
71,018
|
|
73,069
|
|
55,720
|
|
Total
securities
|
1,371,316
|
|
1,396,451
|
|
1,205,794
|
|
|
|
|
|
|
|
|
Loans held for sale,
at fair value
|
13,191
|
|
25,472
|
|
19,493
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,815,035
|
|
1,769,271
|
|
1,496,204
|
|
Commercial real
estate
|
2,059,767
|
|
2,021,300
|
|
1,611,567
|
|
Commercial and
industrial loans
|
1,048,263
|
|
1,065,325
|
|
804,366
|
|
Consumer
loans
|
802,171
|
|
809,034
|
|
768,463
|
|
Total
loans
|
5,725,236
|
|
5,664,930
|
|
4,680,600
|
|
Less: Allowance for
loan losses
|
(39,308)
|
|
(38,180)
|
|
(35,662)
|
|
Net loans
|
5,685,928
|
|
5,626,750
|
|
4,644,938
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
88,072
|
|
86,809
|
|
87,279
|
|
Other real estate
owned
|
1,725
|
|
2,487
|
|
2,049
|
|
Goodwill
|
323,943
|
|
324,958
|
|
264,742
|
|
Other intangible
assets
|
10,664
|
|
11,586
|
|
11,528
|
|
Cash surrender value
of bank-owned life insurance
|
125,233
|
|
124,278
|
|
104,588
|
|
Deferred tax asset,
net
|
42,526
|
|
42,198
|
|
28,776
|
|
Other
assets
|
65,755
|
|
69,928
|
|
61,090
|
|
Total assets
(1)
|
$
7,831,915
|
|
$
7,804,488
|
|
$
6,502,031
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Demand
deposits
|
$
1,081,860
|
|
$
1,001,777
|
|
$
869,302
|
|
NOW
deposits
|
510,807
|
|
476,351
|
|
426,108
|
|
Money market
deposits
|
1,408,107
|
|
1,485,392
|
|
1,407,179
|
|
Savings
deposits
|
601,761
|
|
603,596
|
|
496,344
|
|
Time
deposits
|
1,986,600
|
|
1,940,213
|
|
1,455,746
|
|
Total
deposits
|
5,589,135
|
|
5,507,329
|
|
4,654,679
|
|
|
|
|
|
|
|
|
Senior
borrowings
|
1,174,335
|
|
1,211,813
|
|
962,576
|
|
Subordinated
borrowings
|
89,812
|
|
89,798
|
|
89,747
|
|
Total
borrowings
|
1,264,147
|
|
1,301,611
|
|
1,052,323
|
|
|
|
|
|
|
|
|
Other
liabilities
|
91,444
|
|
113,980
|
|
85,742
|
|
Total
liabilities
|
6,944,726
|
|
6,922,920
|
|
5,792,744
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
887,189
|
|
881,568
|
|
709,287
|
|
Total liabilities and
stockholders' equity
|
$
7,831,915
|
|
$
7,804,488
|
|
$
6,502,031
|
|
|
|
|
|
|
|
|
Net shares
outstanding
|
30,974
|
|
30,949
|
|
25,183
|
|
(1) The Company
acquired Hampden Bancorp, Inc. ("Hampden") on April 17, 2015 with
total assets of $688 million and Firestone Financial ("Firestone")
on August 7, 2015 with total assets of $201 million.
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-2)
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Annualized
Growth %
|
(in
millions)
|
|
Dec. 31, 2015
Balance
|
|
Sept. 30, 2015
Balance
|
|
Acquired
Hampden/
Firestone
Balances
|
|
Dec. 31, 2014
Balance
|
|
Quarter ended
Dec. 31, 2015
|
Year to
date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
$ 1,815
|
|
$ 1,769
|
|
$
130
|
|
$ 1,496
|
|
10
|
%
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
2,060
|
|
2,021
|
|
240
|
|
1,612
|
|
8
|
|
13
|
|
Commercial and
industrial loans
|
|
1,048
|
|
1,066
|
|
233
|
|
804
|
|
(7)
|
|
1
|
|
Total commercial
loans
|
|
3,108
|
|
3,087
|
|
473
|
|
2,416
|
|
3
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
361
|
|
357
|
|
35
|
|
319
|
|
5
|
|
2
|
|
Auto and
other
|
|
441
|
|
452
|
|
47
|
|
450
|
|
(11)
|
|
(13)
|
|
Total consumer
loans
|
|
802
|
|
809
|
|
82
|
|
769
|
|
(3)
|
|
(6)
|
|
Total
loans
|
|
$ 5,725
|
|
$ 5,665
|
|
$
685
|
|
$ 4,681
|
|
4
|
%
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Annualized
Growth %
|
(in
millions)
|
|
Dec. 31, 2015
Balance
|
|
Sept. 30, 2015
Balance
|
|
Acquired
Hampden
Balance
|
|
Dec. 31, 2014
Balance
|
|
Quarter ended
Dec. 31, 2015
|
Year to
date
|
Demand
|
|
$ 1,082
|
|
$ 1,002
|
|
$
97
|
|
$
869
|
|
32
|
%
|
13
|
%
|
NOW
|
|
511
|
|
476
|
|
51
|
|
426
|
|
29
|
|
8
|
|
Money
market
|
|
1,408
|
|
1,485
|
|
62
|
|
1,407
|
|
(21)
|
|
(4)
|
|
Savings
|
|
601
|
|
604
|
|
120
|
|
497
|
|
(2)
|
|
(3)
|
|
Total non-maturity
deposits
|
|
3,602
|
|
3,567
|
|
330
|
|
3,199
|
|
4
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
deposits
|
|
1,987
|
|
1,940
|
|
154
|
|
1,456
|
|
10
|
|
26
|
|
Total
deposits
|
|
$ 5,589
|
|
$ 5,507
|
|
$
484
|
|
$ 4,655
|
|
6
|
%
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-3)
|
|
Three Months
Ended
|
|
Years
Ended
|
|
Dec. 31,
|
|
Dec. 31,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Interest and
dividend income
|
|
|
|
|
|
|
|
Loans
|
$
59,055
|
|
$
45,706
|
|
$
211,347
|
|
$
174,467
|
Securities and
other
|
9,369
|
|
8,310
|
|
35,683
|
|
32,575
|
Total interest and
dividend income
|
68,424
|
|
54,016
|
|
247,030
|
|
207,042
|
Interest
expense
|
|
|
|
|
|
|
|
Deposits
|
6,661
|
|
5,109
|
|
22,948
|
|
19,185
|
Borrowings
|
3,015
|
|
2,260
|
|
10,233
|
|
9,166
|
Total interest
expense
|
9,676
|
|
7,369
|
|
33,181
|
|
28,351
|
Net interest
income
|
58,748
|
|
46,647
|
|
213,849
|
|
178,691
|
Non-interest
income
|
|
|
|
|
|
|
|
Loan related
income
|
2,707
|
|
1,763
|
|
8,310
|
|
6,328
|
Mortgage banking
income
|
641
|
|
504
|
|
4,133
|
|
2,561
|
Deposit related
fees
|
6,416
|
|
6,137
|
|
25,084
|
|
24,635
|
Insurance commissions
and fees
|
2,254
|
|
2,223
|
|
10,251
|
|
10,364
|
Wealth management
fees
|
2,326
|
|
2,373
|
|
9,702
|
|
9,546
|
Total fee
income
|
14,344
|
|
13,000
|
|
57,480
|
|
53,434
|
Other
|
(1,739)
|
|
1,200
|
|
(5,302)
|
|
2,646
|
Securities (losses)
gains, net
|
(357)
|
|
-
|
|
2,110
|
|
482
|
Loss on termination
of hedges
|
-
|
|
-
|
|
-
|
|
(8,792)
|
Total non-interest
income
|
12,248
|
|
14,200
|
|
54,288
|
|
47,770
|
Total net
revenue
|
70,996
|
|
60,847
|
|
268,137
|
|
226,461
|
Provision for loan
losses
|
4,431
|
|
3,898
|
|
16,726
|
|
14,968
|
Non-interest
expense
|
|
|
|
|
|
|
|
Compensation and
benefits
|
25,819
|
|
20,965
|
|
97,370
|
|
81,768
|
Occupancy and
equipment
|
7,308
|
|
6,655
|
|
28,486
|
|
26,905
|
Technology and
communications
|
4,553
|
|
3,702
|
|
16,881
|
|
14,764
|
Marketing and
promotion
|
1,012
|
|
771
|
|
3,306
|
|
2,572
|
Professional
services
|
1,472
|
|
1,205
|
|
5,172
|
|
4,211
|
FDIC premiums and
assessments
|
1,220
|
|
1,083
|
|
4,649
|
|
4,284
|
Other real estate
owned and foreclosures
|
33
|
|
232
|
|
833
|
|
801
|
Amortization of
intangible assets
|
841
|
|
996
|
|
3,563
|
|
4,812
|
Merger, restructuring
and conversion expense (1)
|
1,118
|
|
1,762
|
|
17,611
|
|
8,491
|
Other
|
4,903
|
|
4,305
|
|
18,958
|
|
17,378
|
Total non-interest
expense
|
48,279
|
|
41,676
|
|
196,829
|
|
165,986
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
18,286
|
|
15,273
|
|
54,582
|
|
45,507
|
Income tax
expense
|
2,273
|
|
3,875
|
|
5,064
|
|
11,763
|
Net
income
|
$
16,013
|
|
$
11,398
|
|
$
49,518
|
|
$
33,744
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.53
|
|
$
0.46
|
|
$
1.74
|
|
$
1.36
|
Diluted
|
$
0.52
|
|
$
0.46
|
|
$
1.73
|
|
$
1.36
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
30,500
|
|
24,758
|
|
28,393
|
|
24,730
|
Diluted
|
30,694
|
|
24,912
|
|
28,564
|
|
24,854
|
|
|
|
|
|
|
|
|
(1) Merger,
restructuring and conversion expenses include Firestone
acquisition, Hampden acquisition, branch restructuring, and Q1
2014 branch acquisition related expenses.
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-4)
|
|
Quarters
Ended
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(In thousands,
except per share data)
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 59,055
|
|
$ 56,343
|
|
$
51,504
|
|
$ 44,445
|
|
$ 45,706
|
|
Securities and
other
|
9,369
|
|
9,109
|
|
8,899
|
|
8,306
|
|
8,310
|
|
Total interest and
dividend income
|
68,424
|
|
65,452
|
|
60,403
|
|
52,751
|
|
54,016
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
6,661
|
|
6,046
|
|
5,292
|
|
4,949
|
|
5,109
|
|
Borrowings
|
3,015
|
|
2,435
|
|
2,474
|
|
2,309
|
|
2,260
|
|
Total interest
expense
|
9,676
|
|
8,481
|
|
7,766
|
|
7,258
|
|
7,369
|
|
Net interest
income
|
58,748
|
|
56,971
|
|
52,637
|
|
45,493
|
|
46,647
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Loan related
income
|
2,707
|
|
1,537
|
|
2,783
|
|
1,283
|
|
1,763
|
|
Mortgage banking
income
|
641
|
|
693
|
|
1,546
|
|
1,253
|
|
504
|
|
Deposit related
fees
|
6,416
|
|
6,549
|
|
6,442
|
|
5,677
|
|
6,137
|
|
Insurance commissions
and fees
|
2,254
|
|
2,544
|
|
2,486
|
|
2,967
|
|
2,223
|
|
Wealth management
fees
|
2,326
|
|
2,376
|
|
2,397
|
|
2,603
|
|
2,373
|
|
Total fee
income
|
14,344
|
|
13,699
|
|
15,654
|
|
13,783
|
|
13,000
|
|
Other
|
(1,739)
|
|
(1,050)
|
|
(1,258)
|
|
(1,255)
|
|
1,200
|
|
Securities gains,
net
|
(357)
|
|
49
|
|
2,384
|
|
34
|
|
-
|
|
Loss on termination
of hedges
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total non-interest
income
|
12,248
|
|
12,698
|
|
16,780
|
|
12,562
|
|
14,200
|
|
Total net
revenue
|
70,996
|
|
69,669
|
|
69,417
|
|
58,055
|
|
60,847
|
|
Provision for loan
losses
|
4,431
|
|
4,240
|
|
4,204
|
|
3,851
|
|
3,898
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
25,819
|
|
25,237
|
|
24,503
|
|
21,811
|
|
20,965
|
|
Occupancy and
equipment
|
7,308
|
|
6,827
|
|
7,243
|
|
7,108
|
|
6,655
|
|
Technology and
communications
|
4,553
|
|
4,645
|
|
4,090
|
|
3,593
|
|
3,702
|
|
Marketing and
promotion
|
1,012
|
|
781
|
|
800
|
|
713
|
|
771
|
|
Professional
services
|
1,472
|
|
1,053
|
|
1,375
|
|
1,272
|
|
1,205
|
|
FDIC premiums and
assessments
|
1,220
|
|
1,157
|
|
1,143
|
|
1,129
|
|
1,083
|
|
Other real estate
owned and foreclosures
|
33
|
|
298
|
|
251
|
|
251
|
|
232
|
|
Amortization of
intangible assets
|
841
|
|
887
|
|
934
|
|
901
|
|
996
|
|
Merger, restructuring
and conversion expense (1)
|
1,118
|
|
3,361
|
|
8,711
|
|
4,421
|
|
1,762
|
|
Other
|
4,903
|
|
5,132
|
|
4,975
|
|
3,949
|
|
4,305
|
|
Total non-interest
expense
|
48,279
|
|
49,378
|
|
54,025
|
|
45,148
|
|
41,676
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
18,286
|
|
16,051
|
|
11,188
|
|
9,056
|
|
15,273
|
|
Income tax
expense
|
2,273
|
|
1,350
|
|
1,144
|
|
297
|
|
3,875
|
|
Net
income
|
$ 16,013
|
|
$ 14,701
|
|
$
10,044
|
|
$ 8,759
|
|
$ 11,398
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.53
|
|
$
0.49
|
|
$
0.35
|
|
$
0.35
|
|
$
0.46
|
|
Diluted
|
$
0.52
|
|
$
0.49
|
|
$
0.35
|
|
$
0.35
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
30,500
|
|
29,893
|
|
28,301
|
|
24,803
|
|
24,758
|
|
Diluted
|
30,694
|
|
30,069
|
|
28,461
|
|
24,955
|
|
24,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See note on Page
F-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED - (F-5)
|
|
|
|
|
At or for the
Quarters Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(in
thousands)
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
$
3,966
|
|
$
4,565
|
|
$
4,234
|
|
$ 4,153
|
|
$ 3,908
|
|
Commercial real
estate
|
|
4,882
|
|
5,693
|
|
9,733
|
|
13,516
|
|
12,878
|
|
Commercial and
industrial loans
|
|
8,259
|
|
8,092
|
|
3,031
|
|
1,308
|
|
1,705
|
|
Consumer
loans
|
|
3,768
|
|
3,386
|
|
2,991
|
|
3,032
|
|
3,214
|
|
Total non-accruing
loans
|
|
20,875
|
|
21,736
|
|
19,989
|
|
22,009
|
|
21,705
|
|
Other real estate
owned
|
|
1,725
|
|
2,487
|
|
674
|
|
1,444
|
|
2,049
|
|
Total non-performing
assets
|
|
$
22,600
|
|
$
24,223
|
|
$
20,663
|
|
$ 23,453
|
|
$ 23,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
0.47%
|
|
0.46%
|
|
Total non-performing
assets/total assets
|
|
0.29%
|
|
0.31%
|
|
0.27%
|
|
0.36%
|
|
0.37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
$
38,180
|
|
$
37,197
|
|
$
36,286
|
|
$ 35,662
|
|
$ 34,966
|
|
Charged-off
loans
|
|
(3,538)
|
|
(3,542)
|
|
(4,176)
|
|
(3,432)
|
|
(3,660)
|
|
Recoveries on
charged-off loans
|
|
235
|
|
285
|
|
883
|
|
205
|
|
458
|
|
Net loans
charged-off
|
|
(3,303)
|
|
(3,257)
|
|
(3,293)
|
|
(3,227)
|
|
(3,202)
|
|
Provision for loan
losses
|
|
4,431
|
|
4,240
|
|
4,204
|
|
3,851
|
|
3,898
|
|
Balance at end of
period
|
|
$
39,308
|
|
$
38,180
|
|
$
37,197
|
|
$ 36,286
|
|
$ 35,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans
|
|
0.69%
|
|
0.67%
|
|
0.70%
|
|
0.77%
|
|
0.76%
|
|
Allowance for loan
losses/non-accruing loans
|
|
188%
|
|
176%
|
|
186%
|
|
165%
|
|
164%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
$
(633)
|
|
$
(354)
|
|
$
(367)
|
|
$
(299)
|
|
$
(181)
|
|
Commercial real
estate
|
|
(1,152)
|
|
(1,343)
|
|
(2,461)
|
|
(2,007)
|
|
(1,810)
|
|
Commercial and
industrial loans
|
|
(1,056)
|
|
(1,098)
|
|
(124)
|
|
(375)
|
|
(540)
|
|
Home
equity
|
|
(118)
|
|
(135)
|
|
(174)
|
|
(202)
|
|
(240)
|
|
Auto and other
consumer
|
|
(344)
|
|
(327)
|
|
(167)
|
|
(344)
|
|
(431)
|
|
Total, net
|
|
$
(3,303)
|
|
$
(3,257)
|
|
$
(3,293)
|
|
$ (3,227)
|
|
$ (3,202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
0.28%
|
|
0.29%
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
0.28%
|
|
0.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
|
|
|
|
30-89 Days
delinquent
|
|
0.34%
|
|
0.37%
|
|
0.29%
|
|
0.28%
|
|
0.42%
|
|
90+ Days delinquent
and still accruing
|
|
0.09%
|
|
0.10%
|
|
0.12%
|
|
0.15%
|
|
0.10%
|
|
Total accruing
delinquent loans
|
|
0.43%
|
|
0.47%
|
|
0.41%
|
|
0.43%
|
|
0.52%
|
|
Non-accruing
loans
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
0.47%
|
|
0.46%
|
|
Total delinquent and
non-accruing loans
|
|
0.79%
|
|
0.85%
|
|
0.79%
|
|
0.90%
|
|
0.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-6)
|
|
|
|
|
At or for the
Quarters Ended (1)
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings,
diluted
|
$ 0.54
|
|
$ 0.54
|
|
$
0.51
|
|
$ 0.50
|
|
$ 0.48
|
|
|
|
Net earnings,
diluted
|
0.52
|
|
0.49
|
|
0.35
|
|
0.35
|
|
0.46
|
|
|
|
Tangible book
value
|
17.84
|
|
17.61
|
|
17.16
|
|
17.46
|
|
17.19
|
|
|
|
Total book
value
|
28.64
|
|
28.48
|
|
28.02
|
|
28.36
|
|
28.17
|
|
|
|
Market price at
period end
|
29.11
|
|
27.54
|
|
28.48
|
|
27.70
|
|
26.66
|
|
|
|
Dividends
|
|
0.20
|
|
0.19
|
|
0.19
|
|
0.19
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
assets
|
0.85
|
%
|
0.86
|
%
|
0.81
|
%
|
0.76
|
%
|
0.75
|
%
|
|
|
Return on
assets
|
0.82
|
|
0.78
|
|
0.56
|
|
0.54
|
|
0.71
|
|
|
|
Core return on
equity
|
7.58
|
|
7.58
|
|
7.32
|
|
7.06
|
|
6.89
|
|
|
|
Core return on
tangible equity
|
12.68
|
|
12.78
|
|
12.30
|
|
12.14
|
|
11.96
|
|
|
|
Return on
equity
|
7.34
|
|
6.90
|
|
5.05
|
|
5.00
|
|
6.52
|
|
|
|
Net interest margin,
fully taxable equivalent
|
3.35
|
|
3.37
|
|
3.30
|
|
3.18
|
|
3.23
|
|
|
|
Fee income/Net
interest and fee income
|
19.62
|
|
19.38
|
|
22.92
|
|
23.25
|
|
21.79
|
|
|
|
Efficiency
ratio
|
60.56
|
|
60.35
|
|
61.51
|
|
63.27
|
|
62.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans, year-to-date (organic annualized)
|
9
|
%
|
11
|
%
|
11
|
%
|
14
|
%
|
15
|
%
|
|
|
Total loans,
year-to-date (organic annualized)
|
8
|
|
9
|
|
5
|
|
4
|
|
12
|
|
|
|
Total net revenues,
year-to-date, compared to prior year
|
18
|
|
19
|
|
20
|
|
23
|
|
-
|
|
|
|
Core earnings per
share, year-to-date
|
16
|
|
17
|
|
17
|
|
19
|
|
(4)
|
|
|
|
Earnings per share,
year-to-date (4)
|
27
|
|
34
|
|
69
|
|
N/M
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
DATA (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 7,832
|
|
$ 7,804
|
|
$ 7,519
|
|
$ 6,571
|
|
$ 6,502
|
|
|
|
Total earning
assets
|
7,140
|
|
7,130
|
|
6,740
|
|
5,993
|
|
5,923
|
|
|
|
Total
investments
|
1,371
|
|
1,396
|
|
1,379
|
|
1,216
|
|
1,206
|
|
|
|
Total
loans
|
|
5,725
|
|
5,665
|
|
5,285
|
|
4,729
|
|
4,681
|
|
|
|
Allowance for loan
losses
|
39
|
|
38
|
|
37
|
|
36
|
|
36
|
|
|
|
Total intangible
assets
|
335
|
|
337
|
|
321
|
|
275
|
|
276
|
|
|
|
Total
deposits
|
|
5,589
|
|
5,507
|
|
5,322
|
|
4,720
|
|
4,655
|
|
|
|
Total stockholders'
equity
|
887
|
|
882
|
|
827
|
|
716
|
|
709
|
|
|
|
Total core
income
|
16.5
|
|
16.2
|
|
14.6
|
|
12.4
|
|
12.0
|
|
|
|
Total net
income
|
16.0
|
|
14.7
|
|
10.0
|
|
8.8
|
|
11.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.25
|
%
|
0.26
|
%
|
0.27
|
%
|
0.28
|
%
|
0.29
|
%
|
|
|
Allowance for loan
losses/total loans
|
0.69
|
|
0.67
|
|
0.70
|
|
0.77
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDITION
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
to total assets
|
11.33
|
%
|
11.30
|
%
|
11.00
|
%
|
10.90
|
%
|
10.91
|
%
|
|
|
Tangible
stockholders' equity to tangible assets (3)
|
7.37
|
|
7.30
|
|
7.04
|
|
7.00
|
|
6.95
|
|
|
|
Investments to total
assets
|
17.51
|
|
17.89
|
|
18.35
|
|
18.51
|
|
18.54
|
|
|
|
Loans/deposits
|
102
|
|
103
|
|
99
|
|
100
|
|
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliation of
Non-GAAP financial measures, including all references to core and
tangible amounts, appear on pages F-9 and F-10.
|
|
(2)
|
All performance
ratios are annualized and are based on average balance sheet
amounts, where applicable.
|
|
(3)
|
Tangible assets are
total assets less total intangible assets.
|
|
|
(4)
|
N/M means not
meaningful.
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
Quarters
Ended
|
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
March 31,
|
|
Dec.
31,
|
|
(In
thousands)
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
$ 1,790,334
|
|
$ 1,664,505
|
|
$ 1,562,503
|
|
$ 1,469,910
|
|
$ 1,468,271
|
|
Commercial real
estate
|
2,034,917
|
|
1,948,753
|
|
1,889,306
|
|
1,646,638
|
|
1,611,343
|
|
Commercial and
industrial loans
|
1,033,081
|
|
998,782
|
|
886,297
|
|
806,710
|
|
733,750
|
|
Consumer
loans
|
807,768
|
|
813,986
|
|
821,933
|
|
765,938
|
|
782,584
|
|
Total loans (1)
(5)
|
5,666,100
|
|
5,426,026
|
|
5,160,039
|
|
4,689,196
|
|
4,595,948
|
|
Securities
(2)
|
1,368,505
|
|
1,353,818
|
|
1,301,918
|
|
1,176,559
|
|
1,190,182
|
|
Short-term
investments and loans held for sale
|
51,241
|
|
51,832
|
|
72,003
|
|
55,652
|
|
54,843
|
|
Total earning
assets
|
7,085,846
|
|
6,831,676
|
|
6,533,960
|
|
5,921,407
|
|
5,840,973
|
|
Goodwill and other
intangible assets
|
335,440
|
|
330,084
|
|
303,780
|
|
275,732
|
|
276,645
|
|
Other
assets
|
342,902
|
|
379,319
|
|
357,026
|
|
300,264
|
|
304,909
|
|
Total
assets
|
$ 7,764,188
|
|
$ 7,541,079
|
|
$ 7,194,766
|
|
$ 6,497,403
|
|
$ 6,422,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
(4)
|
|
|
|
|
|
|
|
|
|
|
NOW
|
$ 491,445
|
|
$ 475,433
|
|
$ 460,378
|
|
$ 423,474
|
|
$ 415,806
|
|
Money
market
|
1,455,267
|
|
1,474,389
|
|
1,437,428
|
|
1,408,777
|
|
1,426,722
|
|
Savings
|
604,215
|
|
615,410
|
|
606,231
|
|
502,412
|
|
479,988
|
|
Time
|
1,958,394
|
|
1,795,156
|
|
1,558,350
|
|
1,419,706
|
|
1,425,865
|
|
Total
interest-bearing deposits
|
4,509,321
|
|
4,360,388
|
|
4,062,387
|
|
3,754,369
|
|
3,748,381
|
|
Borrowings
|
1,256,287
|
|
1,198,455
|
|
1,287,319
|
|
1,106,541
|
|
1,053,884
|
|
Total
interest-bearing liabilities
|
5,765,608
|
|
5,558,843
|
|
5,349,706
|
|
4,860,910
|
|
4,802,265
|
|
Non-interest-bearing
demand deposits
|
1,033,844
|
|
1,010,613
|
|
974,160
|
|
869,780
|
|
863,795
|
|
Other
liabilities
|
91,877
|
|
119,322
|
|
75,487
|
|
65,453
|
|
56,805
|
|
Total
liabilities
|
6,891,329
|
|
6,688,778
|
|
6,399,353
|
|
5,796,143
|
|
5,722,865
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
872,859
|
|
852,301
|
|
795,413
|
|
701,260
|
|
699,662
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 7,764,188
|
|
$ 7,541,079
|
|
$ 7,194,766
|
|
$ 6,497,403
|
|
$ 6,422,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
Total non-maturity
deposits (4)
|
$ 3,584,771
|
|
$ 3,575,845
|
|
$ 3,478,197
|
|
$ 3,204,443
|
|
$ 3,186,311
|
|
Total deposits
(4)
|
5,543,165
|
|
5,371,001
|
|
5,036,547
|
|
4,624,149
|
|
4,612,176
|
|
Fully taxable
equivalent income adjustment
|
1,108
|
|
1,131
|
|
1,068
|
|
889
|
|
887
|
|
Total average
tangible equity (3)
|
537,419
|
|
522,217
|
|
491,633
|
|
425,528
|
|
423,017
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total loans
include non-accruing loans.
|
|
|
|
(2) Average balances
for securities available-for-sale are based on amortized
cost.
|
(3) Total average
tangible equity results from the subtraction of average goodwill
and other intangible assets from total
average stockholders' equity.
|
|
(4) The average
balances of deposits include the deposits held for sale presented
under other liabilities on the consolidated balance
sheet.
|
(5) The average
balances of loans include the loans associated with the Tennessee
branch sale presented under loans held for sale on the
consolidated balance sheet.
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE
YIELDS (Fully Taxable Equivalent - Annualized) - UNAUDITED -
(F-8)
|
|
|
Quarters
Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
3.72
|
%
|
3.74
|
%
|
4.08
|
%
|
3.94
|
%
|
3.88
|
%
|
Commercial real
estate
|
|
4.17
|
|
4.47
|
|
4.46
|
|
4.12
|
|
4.18
|
|
Commercial and
industrial loans
|
|
5.51
|
|
4.79
|
|
3.64
|
|
3.70
|
|
4.22
|
|
Consumer
loans
|
|
3.30
|
|
3.29
|
|
3.24
|
|
3.23
|
|
3.35
|
|
Total
loans
|
|
4.15
|
|
4.14
|
|
4.02
|
|
3.86
|
|
3.96
|
|
Securities
|
|
2.96
|
|
2.92
|
|
2.99
|
|
3.10
|
|
3.00
|
|
Short-term
investments and loans held for sale
|
|
0.89
|
|
1.34
|
|
1.13
|
|
1.40
|
|
1.37
|
|
Total earning
assets
|
|
3.89
|
|
3.87
|
|
3.77
|
|
3.67
|
|
3.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
0.14
|
|
0.14
|
|
0.15
|
|
0.14
|
|
0.15
|
|
Money
market
|
|
0.45
|
|
0.42
|
|
0.37
|
|
0.40
|
|
0.42
|
|
Savings
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
|
0.14
|
|
Time
|
|
0.93
|
|
0.90
|
|
0.91
|
|
0.92
|
|
0.91
|
|
Total
interest-bearing deposits
|
|
0.59
|
|
0.55
|
|
0.52
|
|
0.53
|
|
0.54
|
|
Borrowings
|
|
0.96
|
|
0.81
|
|
0.77
|
|
0.85
|
|
0.85
|
|
Total
interest-bearing liabilities
|
|
0.67
|
|
0.61
|
|
0.58
|
|
0.61
|
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
3.22
|
|
3.26
|
|
3.19
|
|
3.06
|
|
3.12
|
|
Net interest
margin
|
|
3.35
|
|
3.37
|
|
3.30
|
|
3.18
|
|
3.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds
(1)
|
|
0.56
|
|
0.51
|
|
0.49
|
|
0.51
|
|
0.52
|
|
Cost of deposits
(2)
|
|
0.48
|
|
0.45
|
|
0.42
|
|
0.43
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of funds
includes all deposits and borrowings.
|
|
(2) The average cost
of deposits include the deposits held for sale.
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-9)
|
|
|
At or for the
Quarters Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec.
31,
|
|
(in
thousands)
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Net income
|
|
$ 16,013
|
|
$ 14,701
|
|
$ 10,044
|
|
$ 8,759
|
|
$ 11,398
|
|
Adj: Net securities
losses (gains)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
(34)
|
|
-
|
|
Adj: Merger and
acquisition expense
|
|
1,230
|
|
2,987
|
|
5,665
|
|
3,275
|
|
1,708
|
|
Adj: Restructuring
expense
|
|
(112)
|
|
374
|
|
3,046
|
|
1,146
|
|
54
|
|
Adj: Income
taxes
|
|
(959)
|
|
(1,862)
|
|
(1,815)
|
|
(772)
|
|
(1,114)
|
|
Total core
income
|
(A)
|
$ 16,529
|
|
$ 16,151
|
|
$ 14,556
|
|
$ 12,374
|
|
$ 12,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$ 70,996
|
|
$ 69,669
|
|
$ 69,417
|
|
$ 58,055
|
|
$ 60,847
|
|
Adj: Net securities
losses (gains)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
(34)
|
|
-
|
|
Total core
revenue
|
(B)
|
$ 71,353
|
|
$ 69,620
|
|
$ 67,033
|
|
$ 58,021
|
|
$ 60,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
$ 48,279
|
|
$ 49,378
|
|
$ 54,025
|
|
$ 45,148
|
|
$ 41,676
|
|
Less: Total non-core
expense (see above)
|
|
(1,118)
|
|
(3,361)
|
|
(8,711)
|
|
(4,421)
|
|
(1,762)
|
|
Core non-interest
expense
|
(C)
|
$ 47,161
|
|
$ 46,017
|
|
$ 45,314
|
|
$ 40,727
|
|
$ 39,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$ 7,764
|
|
$ 7,541
|
|
$ 7,195
|
|
$ 6,497
|
|
$ 6,423
|
|
Total average
stockholders'
equity
|
(E)
|
873
|
|
852
|
|
795
|
|
701
|
|
700
|
|
Total average
tangible stockholders'
equity
|
(F)
|
537
|
|
522
|
|
492
|
|
426
|
|
423
|
|
Total tangible
stockholders' equity, period-end (1)
|
(G)
|
553
|
|
545
|
|
507
|
|
441
|
|
433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(H)
|
30,974
|
|
30,949
|
|
29,521
|
|
25,253
|
|
25,183
|
|
Average diluted
shares outstanding (thousands)
|
(I)
|
30,694
|
|
30,069
|
|
28,461
|
|
24,955
|
|
24,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share, diluted
|
(A/I)
|
$ 0.54
|
|
$ 0.54
|
|
$ 0.51
|
|
$ 0.50
|
|
$ 0.48
|
|
Tangible book value
per share, period-end
|
(G/H)
|
$ 17.84
|
|
$ 17.61
|
|
$ 17.16
|
|
$ 17.46
|
|
$ 17.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
assets
|
(A/D)
|
0.85
|
%
|
0.86
|
%
|
0.81
|
%
|
0.76
|
%
|
0.75
|
%
|
Core return on
equity
|
(A/E)
|
7.58
|
|
7.58
|
|
7.32
|
|
7.06
|
|
6.89
|
|
Core return on
tangible equity (3)
|
(A/F)
|
12.68
|
|
12.78
|
|
12.30
|
|
12.14
|
|
11.96
|
|
Efficiency
ratio
|
(C-L)/(B+J+M)
|
60.56
|
|
60.35
|
|
61.51
|
|
63.27
|
|
62.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit -
tax-advantaged investments (4)
|
(J)
|
$ 4,029
|
|
$ 4,029
|
|
$ 4,034
|
|
$ 4,034
|
|
$ 570
|
|
Non-interest income
charge - tax-advantaged investments (5)
|
(K)
|
(2,851)
|
|
(2,851)
|
#
|
(2,851)
|
|
(2,851)
|
|
(417)
|
|
Net income on
tax-advantaged investments
|
(J+K)
|
1,178
|
|
1,178
|
|
1,183
|
|
1,183
|
|
153
|
|
Intangible
amortization
|
(L)
|
841
|
|
887
|
|
934
|
|
901
|
|
996
|
|
Fully taxable
equivalent income adjustment
|
(M)
|
1,108
|
|
1,131
|
|
1,068
|
|
889
|
|
887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total tangible
stockholders' equity is computed by taking total stockholders'
equity 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) 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.
|
(5) 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 - UNAUDITED - (F-10)
|
|
|
|
At or for the Years
Ended
|
|
|
|
Dec. 31,
|
|
Dec. 31
|
|
|
(Dollars in
thousands)
|
|
2015
|
|
2014
|
|
|
Net
income
|
|
$
49,518
|
|
$
33,744
|
|
|
Adj: Net securities
(gains)
|
|
(2,110)
|
|
(482)
|
|
|
Adj: Loss on
termination of hedges
|
|
-
|
|
8,792
|
|
|
Adj: Merger and
acquisition expenses
|
|
13,157
|
|
5,397
|
|
|
Adj: Restructuring
and conversion expense
|
|
4,454
|
|
3,095
|
|
|
Adj: Out-of-period
adjustment (1)
|
|
-
|
|
1,381
|
|
|
Adj: Income
taxes
|
|
(5,409)
|
|
(7,185)
|
|
|
Total core
income
|
(A)
|
$
59,610
|
|
$
44,742
|
|
|
Total
revenue
|
|
268,137
|
|
226,461
|
|
|
Adj: Securities
(gains)
|
|
(2,110)
|
|
(482)
|
|
|
Adj: Loss on
termination of hedges
|
|
-
|
|
8,792
|
|
|
Adj: Out-of-period
adjustment (1)
|
|
-
|
|
1,381
|
|
|
Total core
revenue
|
(B)
|
$
266,027
|
|
$
236,152
|
|
|
Total non-interest
expense
|
|
$
196,830
|
|
$
165,986
|
|
|
Less: Total non-core
expense (see above)
|
|
(17,611)
|
|
(8,492)
|
|
|
Core non-interest
expense
|
(C)
|
$
179,219
|
|
$
157,494
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
7,249
|
|
$
6,171
|
|
|
Total average
stockholders'
equity
|
(E)
|
805
|
|
693
|
|
|
Total average
tangible stockholders'
equity
|
(F)
|
494
|
|
415
|
|
|
Total tangible
stockholders' equity, period-end (2)
|
(G)
|
553
|
|
433
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(H)
|
30,974
|
|
25,183
|
|
|
Average diluted
shares outstanding (thousands)
|
(I)
|
28,564
|
|
24,854
|
|
|
Core earnings per
common share, diluted
|
(A/I)
|
$
2.09
|
|
$
1.80
|
|
|
Tangible book value
per common share, period-end
|
(G/H)
|
$
17.84
|
|
$
17.19
|
|
|
|
|
|
|
|
|
|
Performance ratios
(3)
|
|
|
|
|
|
|
Core return on
assets
|
(A/D)
|
0.82
|
%
|
0.73
|
%
|
|
Core return on
equity
|
(A/E)
|
7.40
|
|
6.46
|
|
|
Core return on
tangible equity (4)
|
(A/F)
|
12.49
|
|
11.48
|
|
|
Efficiency
ratio
|
(C-L)/
(B+J+M)
|
61.34
|
|
63.17
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
Tax benefit -
tax-advantaged investments (5)
|
(J)
|
$
16,127
|
|
$
2,235
|
|
|
Non-interest income
charge - tax-advantaged investments (6)
|
(K)
|
(11,406)
|
|
(1,668)
|
|
|
Net income on
tax-advantaged investments
|
(J+K)
|
4,721
|
|
567
|
|
|
Intangible
amortization
|
(L)
|
3,563
|
|
4,812
|
|
|
Fully taxable
equivalent income adjustment
|
(M)
|
4,196
|
|
3,316
|
|
|
|
|
|
|
|
|
|
GAAP return on
assets
|
|
0.68
|
%
|
0.55
|
%
|
|
GAAP return on
equity
|
|
6.15
|
|
4.87
|
|
|
Net interest
margin
|
|
3.31
|
|
3.26
|
|
|
|
|
|
|
|
|
(1) The out of period
adjustment shown above relates to interest income earned on loans
acquired in bank acquisitions.
|
(2) Total tangible
stockholders' equity is computed by taking total stockholders'
equity less the intangible assets at period-end.
|
(3) 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.
|
(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) 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.