PITTSFIELD, Mass., April 25, 2016 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NYSE: BHLB) reported an 8% increase in first
quarter core earnings per share to $0.54 in 2016 from $0.50 in 2015. The earnings improvement was
driven by 26% revenue growth produced by the Company's expanded
operations. First quarter GAAP EPS increased year-over-year
to $0.52 from $0.35. GAAP results in both periods
included net non-core charges primarily related to acquisitions and
restructuring activities.
(printer friendly pdf version)
FIRST QUARTER FINANCIAL HIGHLIGHTS (comparisons are to
prior quarter unless otherwise stated):
- 3% increase in total revenue
- 6% annualized commercial loan growth
- 3.33% net interest margin
- 7% increase in fee income
- 2% decrease in non-interest expense
- 59.9% efficiency ratio
- 0.28% non-performing assets/assets
- 0.23% net loan charge-offs/average loans
CEO Michael Daly stated, "We
maintained our growth momentum in the first quarter of 2016.
Our commercial teams posted healthy loan growth and fee income
increased in most major categories. The yield on earning
assets improved and mortgage banking operations benefited from the
increase in volume. We managed constructively through the
volatility in the financial markets early in the year to achieve
our goals for the first quarter."
Mr. Daly continued, "Our teams have been active across many
fronts. We announced that our community support exceeded
$2 million in 2015, which supplements
the 40,000 hours of community service from our employees. We
strengthened our wealth and mortgage teams and we introduced a new
channel for customer support "text AMEB1" via SMS
texting, providing a convenient and efficient experience for
the customer. I'm excited about the prospects for expanding
our market success in 2016 and leveraging our franchise investment
to further boost shareholder value."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of
$0.20 per share to shareholders of
record at the close of business on May 12,
2016, payable on May 26,
2016. The dividend was increased to $0.20 in the prior quarter and equates to a 3%
annualized yield based on the $26.71
average closing price of Berkshire's common stock during the first
quarter.
FINANCIAL CONDITION
Annualized commercial loan growth measured 6% in the first
quarter of 2016, due primarily to 8% annualized growth in
commercial real estate loans. This growth, together with
consumer loan growth, offset a decrease in residential mortgage
balances. A higher volume of fixed rate mortgages was sold
following the dip in long term interest rates during the
quarter. Annualized organic deposit growth measured 2%,
following a surge in demand deposits at year-end. Deposits
totaling $30 million were
reclassified to other liabilities as a result of an agreement to
sell two central New York
branches. Total assets remained unchanged at $7.8 billion.
Tangible book value per share increased by $0.60 to $18.44 and
book value per share increased by $0.54 to $29.18. Loans/deposits increased by 0.1% to
102.5% and the ratio of tangible equity/tangible assets increased
by 0.3% to 7.7%. Problem assets and net loan charge-offs
remained comparatively low and were slightly improved from the
prior quarter. The loan loss provision exceeded net
charge-offs, and the ratio of the loan loss allowance to total
loans increased slightly reflecting the change in the loan
portfolio mix.
RESULTS OF OPERATIONS
The first quarter core return on tangible equity increased
year-over-year to 12.2% in 2016 from 12.1% in 2015. Net
non-core charges in both periods were primarily related to
acquisition activity. GAAP return on equity improved to 7.2%
from 5.0% in the above respective periods. The efficiency
ratio improved to 59.9% from 63.3% due to revenue driven positive
operating leverage.
The net interest margin decreased to 3.33% from 3.35% in the
linked quarter. Measured before the benefit of purchased loan
accretion, the margin decreased slightly to 3.21% from 3.22%.
This included the benefit of the December hike in the Fed Funds
rate. It also reflected a 2 basis point cost related to
higher expense on interest rate swaps which started to become
effective this year. Purchased loan accretion decreased to
$2.1 million from $2.4 million for the above periods.
The 7% increase in fee revenue over the linked quarter included
increases in most categories, with seasonal benefits in wealth
management and insurance revenues offsetting a seasonal decrease in
deposit related fees. The 28% increase in mortgage banking
revenue quarter over quarter was related to higher refinancing
demand. Other non-interest income also benefited from a
$1.8 million reduction in the
amortization of tax credit investments, which partially offset the
related increase in income tax expense. This amortization
decreased to $1.1 million from
$2.9 million in the linked
quarter.
The 2% decrease in non-interest expense compared to the linked
quarter included additional cost synergies and disciplined spending
management during the recent period of financial market volatility.
Total full time equivalent staff decreased to 1,208 from 1,221
during the quarter. The income tax rate increased as expected to
28% in the most recent quarter due to lower benefits from tax
credit related investment projects, which was partially offset by
the change in non-interest income noted above.
CONFERENCE CALL
Berkshire will conduct a
conference call/webcast at 10:00 a.m.
eastern time on Tuesday, April 26,
2016 to discuss the results for the quarter and provide
guidance about expected future results. Participants
should pre-register for the conference call using the following
link: dpregister.com/10083503. Participants may also reach
the registration link and access the webcast by logging in through
the investor section of Berkshire's website at
ir.berkshirebank.com. Those parties who do not have
internet access or are otherwise unable to pre-register for this
event, may still participate at the above time by dialing
1-844-792-3726 and asking the Operator to join the Berkshire Hills
Bancorp (BHLB) earnings call. A telephone replay of the
call will be available through Tuesday, May
3, 2016 by dialing 877-344-7529 and entering access number
10083503. 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. The Bank
has two branches held for sale, which are located in Cairo and Greenville
NY.
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, merger costs, restructuring costs, and
systems conversion costs. Non-core adjustments are presented
net of an adjustment for income tax expense. This adjustment
is determined as the difference between the GAAP tax rate and the
effective tax rate applicable to core income. The efficiency
ratio is adjusted for non-core revenue and expense items and for
tax preference items. The Company also calculates measures
related to tangible equity, which adjust equity (and assets where
applicable) to exclude intangible assets due to the importance of
these measures to the investment community. Charges related
to merger and acquisition activity consist primarily of
severance/benefit related expenses, contract termination costs,
systems conversion costs, and professional fees.
Restructuring costs primarily consist of costs and losses
associated with the disposition of assets and lease
terminations. The Company's disclosures of organic
growth of loans and deposits in 2015 exclude balances acquired
through the business combinations with Hampden Bancorp and
Firestone Financial, and in 2016 are adjusted for two branches held
for sale.
CONTACTS
Investor Relations Contact
Allison O'Rourke; Executive Vice
President, Investor Relations Officer; 413-236-3149
Media Contact
Elizabeth Mach; Vice President,
Marketing Officer; 413-445-8390
TABLE
INDEX
|
CONSOLIDATED
UNAUDITED FINANCIAL SCHEDULES
|
F-1
|
Selected Financial
Highlights
|
F-2
|
Balance
Sheets
|
F-3
|
Loan and Deposit
Analysis
|
F-4
|
Statements of
Income
|
F-5
|
Statements of
Income (Five Quarter Trend)
|
F-6
|
Average Yields and
Costs
|
F-7
|
Average
Balances
|
F-8
|
Asset Quality
Analysis
|
F-9
|
Reconciliation of
Non-GAAP Financial Measures
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-1)
|
|
|
|
At or for the
Quarters Ended (1)(2)
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings,
diluted
|
$
0.54
|
|
$
0.54
|
|
$
0.54
|
|
$
0.51
|
|
$
0.50
|
|
|
Net earnings,
diluted
|
0.52
|
|
0.52
|
|
0.49
|
|
0.35
|
|
0.35
|
|
|
Tangible book
value
|
18.44
|
|
17.84
|
|
17.61
|
|
17.16
|
|
17.46
|
|
|
Total book
value
|
29.18
|
|
28.64
|
|
28.48
|
|
28.02
|
|
28.36
|
|
|
Market price at
period end
|
26.89
|
|
29.11
|
|
27.54
|
|
28.48
|
|
27.70
|
|
|
Dividends
|
|
0.20
|
|
0.19
|
|
0.19
|
|
0.19
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
assets
|
0.85
|
%
|
0.85
|
%
|
0.86
|
%
|
0.81
|
%
|
0.76
|
%
|
|
Return on
assets
|
0.82
|
|
0.82
|
|
0.78
|
|
0.56
|
|
0.54
|
|
|
Core return on
equity
|
7.40
|
|
7.58
|
|
7.58
|
|
7.32
|
|
7.06
|
|
|
Core return on
tangible equity
|
12.20
|
|
12.68
|
|
12.78
|
|
12.30
|
|
12.14
|
|
|
Return on
equity
|
7.19
|
|
7.34
|
|
6.90
|
|
5.05
|
|
5.00
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (4)
|
3.33
|
|
3.35
|
|
3.37
|
|
3.30
|
|
3.18
|
|
|
Net interest margin
(FTE), excluding purchased loan accretion
|
3.21
|
|
3.22
|
|
3.22
|
|
3.16
|
|
3.15
|
|
|
Fee income/Net
interest and fee income
|
21.04
|
|
19.62
|
|
19.38
|
|
22.92
|
|
23.25
|
|
|
Efficiency
ratio
|
59.86
|
|
60.56
|
|
60.35
|
|
61.51
|
|
63.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH
(Year-to-date)
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans, (annualized, excluding merger impacts)
|
6
|
%
|
9
|
%
|
11
|
%
|
11
|
%
|
14
|
%
|
|
Total loans,
(annualized, excluding merger impacts)
|
0
|
|
8
|
|
9
|
|
5
|
|
4
|
|
|
Total deposits,
(annualized, excluding merger impacts)
|
0
|
|
10
|
|
11
|
|
8
|
|
6
|
|
|
Total net revenues,
(compared to prior year)
|
26
|
|
18
|
|
19
|
|
20
|
|
23
|
|
|
Core earnings per
share, (compared to prior year)
|
8
|
|
16
|
|
17
|
|
17
|
|
19
|
|
|
Earnings per share,
(compared to prior year) (5)
|
49
|
|
27
|
|
34
|
|
69
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 7,808
|
|
$ 7,832
|
|
$ 7,804
|
|
$ 7,519
|
|
$ 6,571
|
|
|
Total earning
assets
|
7,142
|
|
7,140
|
|
7,130
|
|
6,740
|
|
5,993
|
|
|
Total
investments
|
1,374
|
|
1,371
|
|
1,396
|
|
1,379
|
|
1,216
|
|
|
Total
loans
|
|
5,727
|
|
5,725
|
|
5,665
|
|
5,285
|
|
4,729
|
|
|
Allowance for loan
losses
|
40
|
|
39
|
|
38
|
|
37
|
|
36
|
|
|
Total intangible
assets
|
334
|
|
335
|
|
337
|
|
321
|
|
275
|
|
|
Total
deposits
|
|
5,584
|
|
5,589
|
|
5,507
|
|
5,322
|
|
4,720
|
|
|
Total shareholders'
equity
|
906
|
|
887
|
|
882
|
|
827
|
|
716
|
|
|
Core
income
|
|
16.5
|
|
16.5
|
|
16.2
|
|
14.6
|
|
12.4
|
|
|
Net income
|
|
16.0
|
|
16.0
|
|
14.7
|
|
10.0
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY AND
CONDITION RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.23
|
%
|
0.25
|
%
|
0.26
|
%
|
0.27
|
%
|
0.28
|
%
|
|
Allowance for loan
losses/total loans
|
0.70
|
|
0.69
|
|
0.67
|
|
0.70
|
|
0.77
|
|
|
Loans/deposits
|
103
|
|
102
|
|
103
|
|
99
|
|
100
|
|
|
Shareholders' equity
to total assets
|
11.60
|
|
11.33
|
|
11.30
|
|
11.00
|
|
10.90
|
|
|
Tangible
shareholders' equity to tangible assets (6)
|
7.66
|
|
7.37
|
|
7.30
|
|
7.04
|
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliation of
Non-GAAP financial measures, including all references to core and
tangible amounts, appear on page F-9.
|
|
|
|
(2)
|
The Company acquired
Hampden Bancorp, Inc. ("Hampden") on April 17, 2015 and Firestone
Financial ("Firestone") on August 7, 2015.
|
|
(3)
|
All performance
ratios are annualized and are based on average balance sheet
amounts, where applicable.
|
|
|
|
|
(4)
|
Fully taxable
equivalent considers the impact of tax advantaged investments and
loans.
|
|
|
|
|
|
|
(5)
|
N/M means not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Tangible assets are
total assets less total intangible assets.
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED -
(F-2)
|
|
March 31,
|
|
December
31,
|
|
(In
thousands)
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
44,370
|
|
$
72,918
|
|
Short-term
investments
|
24,447
|
|
30,644
|
|
Total cash and
short-term investments
|
68,817
|
|
103,562
|
|
|
|
|
|
|
Trading
security
|
14,474
|
|
14,189
|
|
Securities available
for sale, at fair value
|
1,171,534
|
|
1,154,457
|
|
Securities held to
maturity, at amortized cost
|
128,196
|
|
131,652
|
|
Federal Home Loan
Bank stock and other restricted securities
|
60,261
|
|
71,018
|
|
Total
securities
|
1,374,465
|
|
1,371,316
|
|
|
|
|
|
|
Loans held for sale,
at fair value
|
15,919
|
|
13,191
|
|
|
|
|
|
|
Commercial real
estate
|
2,100,067
|
|
2,059,767
|
|
Commercial and
industrial loans
|
1,054,140
|
|
1,048,263
|
|
Residential
mortgages
|
1,753,622
|
|
1,815,035
|
|
Consumer
loans
|
818,861
|
|
802,171
|
|
Total
loans
|
5,726,690
|
|
5,725,236
|
|
Less: Allowance for
loan losses
|
(40,055)
|
|
(39,308)
|
|
Net loans
|
5,686,635
|
|
5,685,928
|
|
|
|
|
|
|
Premises and
equipment, net
|
87,840
|
|
88,072
|
|
Other real estate
owned
|
1,440
|
|
1,725
|
|
Goodwill
|
323,659
|
|
323,943
|
|
Other intangible
assets
|
9,845
|
|
10,664
|
|
Cash surrender value
of bank-owned life insurance
|
126,136
|
|
125,233
|
|
Deferred tax asset,
net
|
36,514
|
|
42,526
|
|
Other
assets
|
76,641
|
|
65,755
|
|
Total
assets
|
$
7,807,911
|
|
$
7,831,915
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Demand
deposits
|
$
1,037,103
|
|
$
1,081,860
|
|
NOW
deposits
|
473,556
|
|
510,807
|
|
Money market
deposits
|
1,405,361
|
|
1,408,107
|
|
Savings
deposits
|
611,556
|
|
601,761
|
|
Time
deposits
|
2,056,814
|
|
1,986,600
|
|
Total
deposits
|
5,584,390
|
|
5,589,135
|
|
|
|
|
|
|
Senior
borrowings
|
1,080,896
|
|
1,174,335
|
|
Subordinated
borrowings
|
89,027
|
|
89,812
|
|
Total
borrowings
|
1,169,923
|
|
1,264,147
|
|
|
|
|
|
|
Other
liabilities
|
147,761
|
|
91,444
|
|
Total
liabilities
|
6,902,074
|
|
6,944,726
|
|
|
|
|
|
|
Total common
shareholders' equity
|
905,837
|
|
887,189
|
|
Total liabilities and
shareholders' equity
|
$
7,807,911
|
|
$
7,831,915
|
|
|
|
|
|
|
Net shares
outstanding
|
31,039
|
|
30,974
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
LOAN
ANALYSIS
|
|
(in
millions)
|
|
March 31,
2016
Balance
|
|
|
|
December 31,
2015
Balance
|
|
|
|
|
Annualized Growth
%
Quarter ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate - construction
|
|
$
256
|
|
|
|
$
254
|
|
|
|
|
4
|
%
|
Commercial real
estate - other
|
|
1,844
|
|
|
|
1,806
|
|
|
|
|
8
|
|
Total commercial real
estate
|
|
2,100
|
|
|
|
2,060
|
|
|
|
|
8
|
|
Commercial and
industrial loans
|
|
1,054
|
|
|
|
1,048
|
|
|
|
|
2
|
|
Total commercial
loans
|
|
3,154
|
|
|
|
3,108
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
1,754
|
|
|
|
1,815
|
|
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
358
|
|
|
|
361
|
|
|
|
|
(3)
|
|
Auto and
other
|
|
461
|
|
|
|
441
|
|
|
|
|
18
|
|
Total consumer
loans
|
|
819
|
|
|
|
802
|
|
|
|
|
8
|
|
Total
loans
|
|
$
5,727
|
|
|
|
$
5,725
|
|
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
March 31,
2016
Balance
|
|
December 31,
2015
Balance
|
|
Annualized Growth
%
Quarter ended
March 31, 2016 (1)
|
|
March 31,
2016
Deposits HFS
|
|
Organic Annualized
Growth %
Quarter ended
March 31, 2016 (1)
|
Demand
|
|
$
1,037
|
|
$
1,082
|
|
(17)
|
%
|
|
$
6
|
|
(14)
|
%
|
NOW
|
|
474
|
|
511
|
|
(29)
|
|
|
3
|
|
(27)
|
|
Money
market
|
|
1,405
|
|
1,408
|
|
(1)
|
|
|
10
|
|
2
|
|
Savings
|
|
611
|
|
601
|
|
7
|
|
|
2
|
|
8
|
|
Total non-maturity
deposits
|
|
3,527
|
|
3,602
|
|
(8)
|
|
|
21
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
deposits
|
|
2,057
|
|
1,987
|
|
14
|
|
|
9
|
|
16
|
|
Total
deposits
|
|
$
5,584
|
|
$
5,589
|
|
0
|
%
|
|
$
30
|
|
2
|
%
|
(1) March 31, 2016
deposits exclude $30 million of deposits associated with the two
branches held for sale in New York. Annualized organic growth is 2%
when
|
including the $30
million of deposits held for sale.
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-4)
|
|
Three Months
Ended
|
|
March 31,
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
Interest and
dividend income
|
|
|
|
Loans
|
$
58,442
|
|
$
44,445
|
Securities and
other
|
10,034
|
|
8,306
|
Total interest and
dividend income
|
68,476
|
|
52,751
|
Interest
expense
|
|
|
|
Deposits
|
7,159
|
|
4,949
|
Borrowings
|
3,620
|
|
2,309
|
Total interest
expense
|
10,779
|
|
7,258
|
Net interest
income
|
57,697
|
|
45,493
|
Non-interest
income
|
|
|
|
Loan related
income
|
3,046
|
|
1,283
|
Mortgage banking
income
|
821
|
|
1,253
|
Deposit related
fees
|
6,109
|
|
5,677
|
Insurance commissions
and fees
|
2,893
|
|
2,967
|
Wealth management
fees
|
2,502
|
|
2,603
|
Total fee
income
|
15,371
|
|
13,783
|
Other
|
223
|
|
(1,255)
|
Securities gains,
net
|
36
|
|
34
|
Total non-interest
income
|
15,630
|
|
12,562
|
Total net
revenue
|
73,327
|
|
58,055
|
Provision for loan
losses
|
4,006
|
|
3,851
|
Non-interest
expense
|
|
|
|
Compensation and
benefits
|
25,714
|
|
21,811
|
Occupancy and
equipment
|
6,690
|
|
7,108
|
Technology and
communications
|
4,857
|
|
3,593
|
Marketing and
promotion
|
673
|
|
713
|
Professional
services
|
1,280
|
|
1,272
|
FDIC premiums and
assessments
|
1,233
|
|
1,129
|
Other real estate
owned and foreclosures
|
263
|
|
251
|
Amortization of
intangible assets
|
819
|
|
901
|
Merger, restructuring
and conversion expense (1)
|
780
|
|
4,421
|
Other
|
4,791
|
|
3,949
|
Total non-interest
expense
|
47,100
|
|
45,148
|
|
|
|
|
Income before income
taxes
|
22,221
|
|
9,056
|
Income tax
expense
|
6,220
|
|
297
|
Net
income
|
$
16,001
|
|
$
8,759
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
0.52
|
|
$
0.35
|
Diluted
|
$
0.52
|
|
$
0.35
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
Basic
|
30,511
|
|
24,803
|
Diluted
|
30,688
|
|
24,955
|
|
|
|
|
(1) Merger,
restructuring and conversion expenses include Firestone
acquisition, Hampden acquisition and branch restructuring
related
|
expenses.
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 58,442
|
|
$ 59,055
|
|
$ 56,343
|
|
$
51,504
|
|
$ 44,445
|
|
Securities and
other
|
10,034
|
|
9,369
|
|
9,109
|
|
8,899
|
|
8,306
|
|
Total interest and
dividend income
|
68,476
|
|
68,424
|
|
65,452
|
|
60,403
|
|
52,751
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
7,159
|
|
6,661
|
|
6,046
|
|
5,292
|
|
4,949
|
|
Borrowings
|
3,620
|
|
3,015
|
|
2,435
|
|
2,474
|
|
2,309
|
|
Total interest
expense
|
10,779
|
|
9,676
|
|
8,481
|
|
7,766
|
|
7,258
|
|
Net interest
income
|
57,697
|
|
58,748
|
|
56,971
|
|
52,637
|
|
45,493
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Loan related
income
|
3,046
|
|
2,707
|
|
1,537
|
|
2,783
|
|
1,283
|
|
Mortgage banking
income
|
821
|
|
641
|
|
693
|
|
1,546
|
|
1,253
|
|
Deposit related
fees
|
6,109
|
|
6,416
|
|
6,549
|
|
6,442
|
|
5,677
|
|
Insurance commissions
and fees
|
2,893
|
|
2,254
|
|
2,544
|
|
2,486
|
|
2,967
|
|
Wealth management
fees
|
2,502
|
|
2,326
|
|
2,376
|
|
2,397
|
|
2,603
|
|
Total fee
income
|
15,371
|
|
14,344
|
|
13,699
|
|
15,654
|
|
13,783
|
|
Other
|
223
|
|
(1,739)
|
|
(1,050)
|
|
(1,258)
|
|
(1,255)
|
|
Securities gains,
net
|
36
|
|
(357)
|
|
49
|
|
2,384
|
|
34
|
|
Total non-interest
income
|
15,630
|
|
12,248
|
|
12,698
|
|
16,780
|
|
12,562
|
|
Total net
revenue
|
73,327
|
|
70,996
|
|
69,669
|
|
69,417
|
|
58,055
|
|
Provision for loan
losses
|
4,006
|
|
4,431
|
|
4,240
|
|
4,204
|
|
3,851
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
25,714
|
|
25,819
|
|
25,237
|
|
24,503
|
|
21,811
|
|
Occupancy and
equipment
|
6,690
|
|
7,308
|
|
6,827
|
|
7,243
|
|
7,108
|
|
Technology and
communications
|
4,857
|
|
4,553
|
|
4,645
|
|
4,090
|
|
3,593
|
|
Marketing and
promotion
|
673
|
|
1,012
|
|
781
|
|
800
|
|
713
|
|
Professional
services
|
1,280
|
|
1,472
|
|
1,053
|
|
1,375
|
|
1,272
|
|
FDIC premiums and
assessments
|
1,233
|
|
1,220
|
|
1,157
|
|
1,143
|
|
1,129
|
|
Other real estate
owned and foreclosures
|
263
|
|
33
|
|
298
|
|
251
|
|
251
|
|
Amortization of
intangible assets
|
819
|
|
841
|
|
887
|
|
934
|
|
901
|
|
Merger, restructuring
and conversion expense (1)
|
780
|
|
1,118
|
|
3,361
|
|
8,711
|
|
4,421
|
|
Other
|
4,791
|
|
4,903
|
|
5,132
|
|
4,975
|
|
3,949
|
|
Total non-interest
expense
|
47,100
|
|
48,279
|
|
49,378
|
|
54,025
|
|
45,148
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
22,221
|
|
18,286
|
|
16,051
|
|
11,188
|
|
9,056
|
|
Income tax
expense
|
6,220
|
|
2,273
|
|
1,350
|
|
1,144
|
|
297
|
|
Net
income
|
$ 16,001
|
|
$ 16,013
|
|
$ 14,701
|
|
$
10,044
|
|
$ 8,759
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.52
|
|
$
0.53
|
|
$
0.49
|
|
$
0.35
|
|
$
0.35
|
|
Diluted
|
$
0.52
|
|
$
0.52
|
|
$
0.49
|
|
$
0.35
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
30,511
|
|
30,500
|
|
29,893
|
|
28,301
|
|
24,803
|
|
Diluted
|
30,688
|
|
30,694
|
|
30,069
|
|
28,461
|
|
24,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See note on Page
F-4
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE YIELDS AND
COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED -
(F-6)
|
|
|
Quarters
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
4.18
|
%
|
4.17
|
%
|
4.47
|
%
|
4.46
|
%
|
4.12
|
%
|
Commercial and
industrial loans
|
|
5.04
|
|
5.51
|
|
4.79
|
|
3.64
|
|
3.70
|
|
Residential
mortgages
|
|
3.86
|
|
3.72
|
|
3.74
|
|
4.08
|
|
3.94
|
|
Consumer
loans
|
|
3.44
|
|
3.30
|
|
3.29
|
|
3.24
|
|
3.23
|
|
Total
loans
|
|
4.13
|
|
4.15
|
|
4.14
|
|
4.02
|
|
3.86
|
|
Securities
|
|
3.26
|
|
2.96
|
|
2.92
|
|
2.99
|
|
3.10
|
|
Short-term
investments and loans held for sale
|
|
0.91
|
|
0.89
|
|
1.34
|
|
1.13
|
|
1.40
|
|
Total earning
assets
|
|
3.93
|
|
3.89
|
|
3.87
|
|
3.77
|
|
3.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
0.13
|
|
0.14
|
|
0.14
|
|
0.15
|
|
0.14
|
|
Money
market
|
|
0.49
|
|
0.45
|
|
0.42
|
|
0.37
|
|
0.40
|
|
Savings
|
|
0.13
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
|
Time
|
|
0.99
|
|
0.93
|
|
0.90
|
|
0.91
|
|
0.92
|
|
Total
interest-bearing deposits
|
|
0.63
|
|
0.59
|
|
0.55
|
|
0.52
|
|
0.53
|
|
Borrowings
|
|
1.19
|
|
0.96
|
|
0.81
|
|
0.77
|
|
0.85
|
|
Total
interest-bearing liabilities
|
|
0.75
|
|
0.67
|
|
0.61
|
|
0.58
|
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
3.18
|
|
3.22
|
|
3.26
|
|
3.19
|
|
3.06
|
|
Net interest
margin
|
|
3.33
|
|
3.35
|
|
3.37
|
|
3.30
|
|
3.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds
(1)
|
|
0.64
|
|
0.56
|
|
0.51
|
|
0.49
|
|
0.51
|
|
Cost of deposits
(2)
|
|
0.51
|
|
0.48
|
|
0.45
|
|
0.42
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
Quarters
Ended
|
|
March
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
March 31,
|
|
(In
thousands)
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
2,079,001
|
|
$
2,034,917
|
|
$ 1,948,753
|
|
$ 1,889,306
|
|
$ 1,646,638
|
|
Commercial and
industrial loans
|
1,027,257
|
|
1,033,081
|
|
998,782
|
|
886,297
|
|
806,710
|
|
Residential
mortgages
|
1,798,034
|
|
1,790,334
|
|
1,664,505
|
|
1,562,503
|
|
1,469,910
|
|
Consumer
loans
|
807,888
|
|
807,768
|
|
813,986
|
|
821,933
|
|
765,938
|
|
Total loans (1)
(2)
|
5,712,180
|
|
5,666,100
|
|
5,426,026
|
|
5,160,039
|
|
4,689,196
|
|
Securities
(3)
|
1,342,590
|
|
1,368,505
|
|
1,353,818
|
|
1,301,918
|
|
1,176,559
|
|
Short-term
investments and loans held for sale
|
56,042
|
|
51,241
|
|
51,832
|
|
72,003
|
|
55,652
|
|
Total earning
assets
|
7,110,812
|
|
7,085,846
|
|
6,831,676
|
|
6,533,960
|
|
5,921,407
|
|
Goodwill and other
intangible assets
|
333,948
|
|
335,440
|
|
330,084
|
|
303,780
|
|
275,732
|
|
Other
assets
|
346,327
|
|
342,902
|
|
379,319
|
|
357,026
|
|
300,264
|
|
Total
assets
|
$
7,791,087
|
|
$
7,764,188
|
|
$ 7,541,079
|
|
$ 7,194,766
|
|
$ 6,497,403
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
(4)
|
|
|
|
|
|
|
|
|
|
|
NOW
|
$
484,334
|
|
$
491,445
|
|
$ 475,433
|
|
$ 460,378
|
|
$ 423,474
|
|
Money
market
|
1,417,068
|
|
1,455,267
|
|
1,474,389
|
|
1,437,428
|
|
1,408,777
|
|
Savings
|
602,414
|
|
604,215
|
|
615,410
|
|
606,231
|
|
502,412
|
|
Time
|
2,063,712
|
|
1,958,394
|
|
1,795,156
|
|
1,558,350
|
|
1,419,706
|
|
Total
interest-bearing deposits
|
4,567,528
|
|
4,509,321
|
|
4,360,388
|
|
4,062,387
|
|
3,754,369
|
|
Borrowings
|
1,222,288
|
|
1,256,287
|
|
1,198,455
|
|
1,287,319
|
|
1,106,541
|
|
Total
interest-bearing liabilities
|
5,789,816
|
|
5,765,608
|
|
5,558,843
|
|
5,349,706
|
|
4,860,910
|
|
Non-interest-bearing
demand deposits
|
1,026,447
|
|
1,033,844
|
|
1,010,613
|
|
974,160
|
|
869,780
|
|
Other
liabilities
|
84,042
|
|
91,877
|
|
119,322
|
|
75,487
|
|
65,453
|
|
Total
liabilities
|
6,900,305
|
|
6,891,329
|
|
6,688,778
|
|
6,399,353
|
|
5,796,143
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
890,782
|
|
872,859
|
|
852,301
|
|
795,413
|
|
701,260
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
7,791,087
|
|
$
7,764,188
|
|
$ 7,541,079
|
|
$ 7,194,766
|
|
$ 6,497,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
Total non-maturity
deposits (4)
|
$
3,530,263
|
|
$
3,584,771
|
|
$ 3,575,845
|
|
$ 3,478,197
|
|
$ 3,204,443
|
|
Total deposits
(4)
|
5,593,975
|
|
5,543,165
|
|
5,371,001
|
|
5,036,547
|
|
4,624,149
|
|
Fully taxable
equivalent income adjustment
|
1,134
|
|
1,108
|
|
1,131
|
|
1,068
|
|
889
|
|
Total average
tangible equity (5)
|
556,834
|
|
537,419
|
|
522,217
|
|
491,633
|
|
425,528
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total loans
include non-accruing loans.
|
|
|
|
|
|
|
|
|
|
|
(2) The average
balances of loans include the loans associated with the two
branches in New York that are for sale and presented under
loans
|
|
held for sale on the
consolidated balance sheet.
|
|
|
|
|
|
|
|
|
|
(3) Average balances
for securities available-for-sale are based on amortized
cost.
|
|
|
|
|
|
|
|
(4) The average
balances of deposits include the deposits held for sale presented
under other liabilities on the consolidated balance
sheet.
|
|
(5) Total average
tangible equity results from the subtraction of average goodwill
and other intangible assets from total
average
|
|
|
shareholders'
equity.
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED - (F-8)
|
|
|
At or for the
Quarters Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(in
thousands)
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
5,001
|
|
$
4,882
|
|
$
5,693
|
|
$
9,733
|
|
$ 13,516
|
|
Commercial and
industrial loans
|
|
7,480
|
|
8,259
|
|
8,092
|
|
3,031
|
|
1,308
|
|
Residential
mortgages
|
|
4,732
|
|
3,966
|
|
4,565
|
|
4,234
|
|
4,153
|
|
Consumer
loans
|
|
3,588
|
|
3,768
|
|
3,386
|
|
2,991
|
|
3,032
|
|
Total non-accruing
loans
|
|
20,801
|
|
20,875
|
|
21,736
|
|
19,989
|
|
22,009
|
|
Other real estate
owned
|
|
1,440
|
|
1,725
|
|
2,487
|
|
674
|
|
1,444
|
|
Total non-performing
assets
|
|
$
22,241
|
|
$
22,600
|
|
$
24,223
|
|
$
20,663
|
|
$ 23,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
|
0.36%
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
0.47%
|
|
Total non-performing
assets/total assets
|
|
0.28%
|
|
0.29%
|
|
0.31%
|
|
0.27%
|
|
0.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
$
39,308
|
|
$
38,180
|
|
$
37,197
|
|
$
36,286
|
|
$ 35,662
|
|
Charged-off
loans
|
|
(3,704)
|
|
(3,538)
|
|
(3,542)
|
|
(4,176)
|
|
(3,432)
|
|
Recoveries on
charged-off loans
|
|
445
|
|
235
|
|
285
|
|
883
|
|
205
|
|
Net loans
charged-off
|
|
(3,259)
|
|
(3,303)
|
|
(3,257)
|
|
(3,293)
|
|
(3,227)
|
|
Provision for loan
losses
|
|
4,006
|
|
4,431
|
|
4,240
|
|
4,204
|
|
3,851
|
|
Balance at end of
period
|
|
$
40,055
|
|
$
39,308
|
|
$
38,180
|
|
$
37,197
|
|
$ 36,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans
|
|
0.70%
|
|
0.69%
|
|
0.67%
|
|
0.70%
|
|
0.77%
|
|
Allowance for loan
losses/non-accruing loans
|
|
193%
|
|
188%
|
|
176%
|
|
186%
|
|
165%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
(1,043)
|
|
$
(1,152)
|
|
$
(1,343)
|
|
$
(2,461)
|
|
$ (2,007)
|
|
Commercial and
industrial loans
|
|
(847)
|
|
(1,056)
|
|
(1,098)
|
|
(124)
|
|
(375)
|
|
Residential
mortgages
|
|
(774)
|
|
(633)
|
|
(354)
|
|
(367)
|
|
(299)
|
|
Home
equity
|
|
(221)
|
|
(118)
|
|
(135)
|
|
(174)
|
|
(202)
|
|
Auto and other
consumer
|
|
(374)
|
|
(344)
|
|
(327)
|
|
(167)
|
|
(344)
|
|
Total, net
|
|
$
(3,259)
|
|
$
(3,303)
|
|
$
(3,257)
|
|
$
(3,293)
|
|
$ (3,227)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.23%
|
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
0.28%
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.23%
|
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
0.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
30-89 Days
delinquent
|
|
0.26%
|
|
0.34%
|
|
0.37%
|
|
0.29%
|
|
0.28%
|
|
90+ Days delinquent
and still accruing
|
|
0.07%
|
|
0.09%
|
|
0.10%
|
|
0.12%
|
|
0.15%
|
|
Total accruing
delinquent loans
|
|
0.33%
|
|
0.43%
|
|
0.47%
|
|
0.41%
|
|
0.43%
|
|
Non-accruing
loans
|
|
0.36%
|
|
0.36%
|
|
0.38%
|
|
0.38%
|
|
0.47%
|
|
Total delinquent and
non-accruing loans
|
|
0.69%
|
|
0.79%
|
|
0.85%
|
|
0.79%
|
|
0.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-9)
|
|
|
At or for the
Quarters Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(in
thousands)
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Net income
|
|
$ 16,001
|
|
$ 16,013
|
|
$ 14,701
|
|
$ 10,044
|
|
$ 8,759
|
|
Adj: Net securities
(gains) losses
|
|
(36)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
(34)
|
|
Adj: Merger and
acquisition expense
|
|
527
|
|
1,230
|
|
2,987
|
|
5,665
|
|
3,275
|
|
Adj: Restructuring
expense
|
|
253
|
|
(112)
|
|
374
|
|
3,046
|
|
1,146
|
|
Adj: Income
taxes
|
|
(256)
|
|
(959)
|
|
(1,862)
|
|
(1,815)
|
|
(772)
|
|
Total core
income
|
(A)
|
$ 16,489
|
|
$ 16,529
|
|
$ 16,151
|
|
$ 14,556
|
|
$ 12,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$ 73,327
|
|
$ 70,996
|
|
$ 69,669
|
|
$ 69,417
|
|
$ 58,055
|
|
Adj: Net securities
(gains) losses
|
|
(36)
|
|
357
|
|
(49)
|
|
(2,384)
|
|
(34)
|
|
Total core
revenue
|
(B)
|
$ 73,291
|
|
$ 71,353
|
|
$ 69,620
|
|
$ 67,033
|
|
$ 58,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
$ 47,100
|
|
$ 48,279
|
|
$ 49,378
|
|
$ 54,025
|
|
$ 45,148
|
|
Less: Total non-core
expense (see above)
|
|
(780)
|
|
(1,118)
|
|
(3,361)
|
|
(8,711)
|
|
(4,421)
|
|
Core non-interest
expense
|
(C)
|
$ 46,320
|
|
$ 47,161
|
|
$ 46,017
|
|
$ 45,314
|
|
$ 40,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$ 7,791
|
|
$ 7,764
|
|
$ 7,541
|
|
$ 7,195
|
|
$ 6,497
|
|
Total average
shareholders' equity
|
(E)
|
891
|
|
873
|
|
852
|
|
795
|
|
701
|
|
Total average
tangible shareholders'
equity
|
(F)
|
557
|
|
537
|
|
522
|
|
492
|
|
426
|
|
Total tangible
shareholders' equity, period-end (1)
|
(G)
|
572
|
|
553
|
|
545
|
|
507
|
|
441
|
|
Total tangible
assets, period-end
|
(H)
|
7,474
|
|
7,497
|
|
7,468
|
|
7,198
|
|
6,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(I)
|
31,039
|
|
30,974
|
|
30,949
|
|
29,521
|
|
25,253
|
|
Average diluted
shares outstanding (thousands)
|
(J)
|
30,688
|
|
30,694
|
|
30,069
|
|
28,461
|
|
24,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share, diluted
|
(A/J)
|
$ 0.54
|
|
$ 0.54
|
|
$ 0.54
|
|
$ 0.51
|
|
$ 0.50
|
|
Tangible book value
per share, period-end
|
(G/I)
|
18.44
|
|
17.84
|
|
17.61
|
|
17.16
|
|
17.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
assets
|
(A/D)
|
0.85
|
%
|
0.85
|
%
|
0.86
|
%
|
0.81
|
%
|
0.76
|
%
|
Core return on
equity
|
(A/E)
|
7.40
|
|
7.58
|
|
7.58
|
|
7.32
|
|
7.06
|
|
Core return on
tangible equity (3)
|
(A/F)
|
12.20
|
|
12.68
|
|
12.78
|
|
12.30
|
|
12.14
|
|
Efficiency
ratio
|
(C-M)/(B+K+N)
|
59.86
|
|
60.56
|
|
60.35
|
|
61.51
|
|
63.27
|
|
Total tangible
shareholders' equity/Total tangible assets
|
(G)/(H)
|
7.66
|
|
7.38
|
|
7.30
|
|
7.04
|
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (4)
|
(K)
|
$ 1,588
|
|
$ 4,029
|
|
$ 4,029
|
|
$ 4,034
|
|
$ 4,034
|
|
Non-interest income
charge on tax-credit investments (5)
|
(L)
|
(1,101)
|
|
(2,851)
|
|
(2,851)
|
|
(2,851)
|
|
(2,851)
|
|
Net income on
tax-credit investments
|
(K+L)
|
487
|
|
1,178
|
|
1,178
|
|
1,183
|
|
1,183
|
|
Intangible
amortization
|
(M)
|
819
|
|
841
|
|
887
|
|
934
|
|
901
|
|
Fully taxable
equivalent income adjustment
|
(N)
|
1,134
|
|
1,108
|
|
1,131
|
|
1,068
|
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total tangible
shareholders' equity is computed by taking total shareholders'
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.
|
|
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SOURCE Berkshire Hills Bancorp, Inc.