BOSTON, April 23, 2018 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NYSE: BHLB) reported first
quarter 2018 net income of $25
million, which was a 63% increase over 2017 first quarter
results of $15 million. This
reflected the ongoing benefit of the Company's growth and
expansion, together with the benefit of a lower federal tax rate
resulting from federal tax reform near the end of 2017.
FIRST QUARTER FINANCIAL HIGHLIGHTS
(income statement comparisons are year over year and balance
sheet growth is compared to prior quarter-end):
- $0.55 GAAP EPS
- $0.65 Core EPS
- 13% increase in net revenue
- 30% increase in loan and deposit related fee
income
- 4% annualized loan growth; 3% annualized C&I loan
growth
- 3% increase in average deposits
- 3.36% net interest margin
- 59.5% efficiency ratio
- 0.27% non-performing assets/assets
- 0.17% net loan charge-offs/average loans
CEO Michael Daly stated,
"We had a solid start to the year, delivering ongoing growth while
integrating our new Commerce operations. With the
benefit of greater efficiency, GAAP return on assets improved to
0.88% and core return on assets improved to 1.04%. We expect
continued momentum in the second quarter where GAAP return on
assets will improve to over 1.00% and core return on assets will
improve to over 1.10%. We formally opened our new
Boston corporate headquarters,
which also serves as a regional hub for Greater Boston relationship teams. We
added additional bankers both in Boston and in the Princeton, NJ area. We also opened a new
branch in Simsbury, CT, which uses
a combination of virtual teller technology and MyBanker
relationship professionals to provide enhanced customer support and
product availability."
DIVIDEND DECLARED
The Board of Directors declared a quarterly cash dividend
of $0.22 per common share to
shareholders of record at the close of business on May 10, 2018, payable on May 24, 2018. The dividend equates to a
2.3% annualized yield based on the $37.88 average closing price of Berkshire Hills
Bancorp common stock during the first quarter. The Board also
declared a quarterly cash dividend of $0.44 per share for the preferred stock issued in
conjunction with the Commerce acquisition, with the same record and
payment dates as above. The quarterly common and preferred
dividends were increased in the prior quarter by
5%.
FINANCIAL CONDITION
Total assets ended the first quarter of 2018 at
$11.5 billion. Both commercial
loans and residential mortgages contributed to the 4% annualized
increase in total loans. Period-end deposit balances are
impacted by daily fluctuations related to payroll processing.
Average deposits increased by 3% compared to the prior
quarter. Asset quality metrics remained strong.
Delinquency metrics increased due to one commercial credit
which is expected to remain accruing and is in the process of
collection. Metrics related to capital, liquidity, and book value
per share were generally stable compared to the start of the
year.
RESULTS OF OPERATIONS
First quarter revenue and expense included the full
quarter impact of the Commerce operations acquired on October 13, 2017. 2018 first quarter
net income totaled $25 million, which
was a 63% increase over 2017 first quarter results of $15 million. Earnings per share increased
by 25% to $0.55, including the impact
of additional shares issued in 2017. First quarter core
earnings per share improved by 18% to $0.65 per share in 2018 compared $0.55 in 2017. The measure of core earnings
per share excludes amounts viewed as not related to normalized
operations. In the most recent quarter these were primarily
related to the integration of the Commerce operations.
Quarterly net revenue totaled $115
million in the most recent quarter, and included the impact
of lower mortgage banking fees, which was partially offset by
seasonal gains in wealth and insurance fee income compared to the
prior quarter. The net interest margin decreased to 3.36%
from 3.50% in the prior quarter. The contribution from
purchased loan accretion decreased by 0.08%.
Additionally, the contribution of taxable equivalent
securities yields decreased by 0.05% as a result of lower federal
income taxes. The cost of funds increased due to change in
deposit mix and higher deposit and borrowings funding costs as a
result of increases in short term market interest rates. The first
quarter loan loss provision was $5.6
million and exceeded the net loan charge-offs recorded
during the period.
Total first quarter non-interest expense decreased by 15%
compared to the prior quarter, primarily due to lower non-core
Commerce merger charges. Total core expense increased by 1%
including a full quarter of the new Commerce operations. The
efficiency ratio measured 59.5%, including the benefit of expense
reductions in mortgage banking. Total full-time equivalent
staff measured 1,941 positions at quarter-end, compared to 1,992
positions at the start of the year. The first quarter
effective income tax rate was 22% in 2018 compared to 30% in 2017,
reflecting the benefit of federal income tax reform which became
effective in 2018.
INVESTOR CONFERENCE CALL
Berkshire will conduct a conference
call/webcast at 10:00 a.m. eastern
time on Tuesday, April 24, 2018 to discuss the
results for the quarter and provide guidance about expected future
results. Participants are encouraged to pre-register
for the conference call using the following link:
http://dpregister.com/10118850. 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. Additionally,
participants may reach the registration link and access the webcast
by logging in through the investor section of Berkshire's website at
http://ir.berkshirebank.com. Those parties
who do not have internet access or are otherwise unable to
pre-register for this event, may 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 1,
2018 by dialing 877-344-7529 and entering access number
10118850. The webcast will be available on Berkshire's
website for an extended period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank -
America's Most Exciting Bank®. The Company has approximately
$11.5 billion in assets and 114 full
service branches in Massachusetts,
New York, Connecticut, Vermont, New
Jersey, and Pennsylvania
providing personal and business banking, insurance, and wealth
management services. The Company also offers mortgages and
specialized commercial lending services in targeted national
markets.
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 on page F-9 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 items which the
Company does not view as related to its normalized
operations. These items primarily include securities
gains/losses, merger costs, and restructuring costs.
Securities gains/losses include unrealized gains/losses on equity
securities beginning in the first quarter of 2018. Charges related
to merger and acquisition activity consist primarily of
severance/benefit related expenses, contract termination costs,
systems conversion costs, variable compensation expenses, and
professional fees. These charges in 2017 and 2018 are
primarily related to business combinations with First Choice Bank
and Commerce Bancshares Corp. Restructuring costs generally
consist of costs and losses associated with the disposition of
assets and liabilities and lease terminations, including costs
related to branch sales. Additionally, the Company recorded
charges for hedge terminations in the first quarter of 2017 and
legal settlement costs during the year.
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.
CONTACTS
Investor Relations Contact
Allison O'Rourke; Executive
Vice President, Investor Relations Officer; 413-236-3149
Media Contact
Elizabeth Mach; Senior 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
Operations (Five Quarter Trend)
|
F-6
|
Average Yields and
Costs
|
F-7
|
Average
Balances
|
F-8
|
Asset Quality
Analysis
|
F-9
|
Reconciliation of
Non-GAAP Financial Measures (Five Quarter Trend)
and Supplementary Data
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-1)
|
|
At or for the
Quarters Ended (2)
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
|
2018
|
|
2017 (3)
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss),
diluted
|
$
0.55
|
|
$
(0.06)
|
|
$
0.57
|
|
$
0.53
|
|
$
0.44
|
|
|
Core earnings,
diluted (1)
|
0.65
|
|
0.58
|
|
0.59
|
|
0.58
|
|
0.55
|
|
|
Total book value per
common share
|
32.12
|
|
32.14
|
|
31.78
|
|
31.37
|
|
30.77
|
|
|
Tangible book value
per common share (1)
|
19.86
|
|
19.83
|
|
21.38
|
|
20.96
|
|
18.97
|
|
|
Market price at
period end
|
37.95
|
|
36.60
|
|
38.75
|
|
35.15
|
|
36.05
|
|
|
Dividends per common
share
|
0.22
|
|
0.21
|
|
0.21
|
|
0.21
|
|
0.21
|
|
|
Dividends per
preferred share
|
0.44
|
|
0.42
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(4)
|
|
|
|
|
|
|
|
|
|
|
|
Return on
assets
|
0.88%
|
|
(0.10)%
|
|
0.95%
|
|
0.84%
|
|
0.68%
|
|
|
Core return on assets
(1)
|
1.04
|
|
0.94
|
|
0.98
|
|
0.92
|
|
0.85
|
|
|
Return on
equity
|
6.69
|
|
(0.77)
|
|
7.26
|
|
6.80
|
|
5.71
|
|
|
Core return on equity
(1)
|
7.92
|
|
7.16
|
|
7.47
|
|
7.45
|
|
7.17
|
|
|
Core return on
tangible common equity (1)
|
13.43
|
|
11.90
|
|
11.42
|
|
11.96
|
|
12.05
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (5)
|
3.36
|
|
3.50
|
|
3.36
|
|
3.36
|
|
3.33
|
|
|
Fee income/Net
interest and fee income
|
25.51
|
|
25.91
|
|
29.96
|
|
32.23
|
|
30.04
|
|
|
Efficiency ratio
(1)
|
59.54
|
|
57.43
|
|
59.28
|
|
61.72
|
|
61.94
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH
(Year-to-date)
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans (annualized)
|
1%
|
|
38%
|
|
9%
|
|
13%
|
|
15%
|
|
|
Total loans
(annualized)
|
4
|
|
27
|
|
8
|
|
10
|
|
6
|
|
|
Total deposits
(annualized)
|
(3)
|
|
32
|
|
3
|
|
3
|
|
2
|
|
|
Total net revenues
(compared to prior year)
|
13
|
|
41
|
|
37
|
|
40
|
|
39
|
|
|
Earnings per share
(compared to prior year)
|
25
|
|
(25)
|
|
(2)
|
|
(8)
|
|
(15)
|
|
|
Core earnings per
share (compared to prior year)(1)
|
18
|
|
4
|
|
4
|
|
5
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
11,519
|
|
$
11,571
|
|
$
9,767
|
|
$
9,627
|
|
$
9,298
|
|
|
Total earning
assets
|
10,442
|
|
10,509
|
|
8,944
|
|
8,807
|
|
8,486
|
|
|
Total
securities
|
1,932
|
|
1,899
|
|
1,824
|
|
1,773
|
|
1,714
|
|
|
Total
loans
|
8,376
|
|
8,299
|
|
6,947
|
|
6,864
|
|
6,656
|
|
|
Allowance for loan
losses
|
54
|
|
52
|
|
49
|
|
47
|
|
46
|
|
|
Total intangible
assets
|
556
|
|
558
|
|
420
|
|
421
|
|
422
|
|
|
Total
deposits
|
8,683
|
|
8,750
|
|
6,790
|
|
6,715
|
|
6,656
|
|
|
Total shareholders'
equity
|
1,498
|
|
1,496
|
|
1,285
|
|
1,268
|
|
1,100
|
|
|
Net
income/(loss)
|
25.2
|
|
(2.8)
|
|
22.9
|
|
19.7
|
|
15.5
|
|
|
Core income
(1)
|
29.9
|
|
26.3
|
|
23.6
|
|
21.6
|
|
19.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY AND
CONDITION RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.17%
|
|
0.17%
|
|
0.19%
|
|
0.20%
|
|
0.20%
|
|
|
Total non-performing
assets/total assets
|
0.27
|
|
0.21
|
|
0.23
|
|
0.25
|
|
0.27
|
|
|
Allowance for loan
losses/total loans
|
0.64
|
|
0.62
|
|
0.71
|
|
0.69
|
|
0.69
|
|
|
Loans/deposits
|
96
|
|
95
|
|
102
|
|
102
|
|
100
|
|
|
Shareholders' equity
to total assets
|
13.00
|
|
12.93
|
|
13.15
|
|
13.17
|
|
11.83
|
|
|
Tangible
shareholders' equity to tangible assets (1)
|
8.59
|
|
8.52
|
|
9.25
|
|
9.20
|
|
7.64
|
|
|
(1)
|
Non-GAAP financial
measure. Core measurements are non-GAAP financial measures that are
adjusted to exclude net non-core charges primarily
related to acquisitions and restructuring activities. See page F-9
for reconciliations of non-GAAP financial measures.
|
(2)
|
Reconciliations of
non-GAAP financial measures, including all references to core and
tangible amounts, appear on page F-9.
|
(3)
|
The Company acquired
Commerce Bancshares Corp., the parent of Commerce Bank & Trust
Company, on October 13, 2017.
|
(4)
|
All performance
ratios are annualized and are based on average balance sheet
amounts, where applicable.
|
(5)
|
Fully taxable
equivalent considers the impact of tax advantaged investment
securities and loans.
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-2)
|
|
March 31,
|
|
December
31,
|
(in
thousands)
|
2018
|
|
2017
|
Assets
|
|
|
|
Cash and due from
banks
|
$
88,193
|
|
$
91,122
|
Short-term
investments
|
35,694
|
|
157,641
|
Total cash and
short-term investments
|
123,887
|
|
248,763
|
|
|
|
|
Trading
security
|
11,795
|
|
12,277
|
Securities available
for sale, at fair value
|
1,460,660
|
|
1,426,099
|
Securities held to
maturity, at amortized cost
|
395,337
|
|
397,103
|
Federal Home Loan
Bank stock and other restricted securities
|
64,038
|
|
63,085
|
Total
securities
|
1,931,830
|
|
1,898,564
|
|
|
|
|
Loans held for sale,
at fair value
|
98,440
|
|
153,620
|
|
|
|
|
Commercial real
estate
|
3,266,737
|
|
3,264,742
|
Commercial and
industrial loans
|
1,818,974
|
|
1,803,939
|
Residential
mortgages
|
2,181,807
|
|
2,102,807
|
Consumer
loans
|
1,108,899
|
|
1,127,850
|
Total
loans
|
8,376,417
|
|
8,299,338
|
Less: Allowance for
loan losses
|
(53,859)
|
|
(51,834)
|
Net loans
|
8,322,558
|
|
8,247,504
|
|
|
|
|
Premises and
equipment, net
|
111,237
|
|
109,352
|
Other real estate
owned
|
-
|
|
-
|
Goodwill
|
519,128
|
|
519,287
|
Other intangible
assets
|
37,085
|
|
38,296
|
Cash surrender value
of bank-owned life insurance
|
192,379
|
|
191,221
|
Deferred tax asset,
net
|
51,679
|
|
47,061
|
Other
assets
|
131,024
|
|
117,083
|
Total
assets
|
$
11,519,247
|
|
$
11,570,751
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Demand
deposits
|
$
1,575,243
|
|
$
1,606,656
|
NOW and other
deposits
|
715,581
|
|
734,558
|
Money market
deposits
|
2,749,763
|
|
2,776,157
|
Savings
deposits
|
756,711
|
|
741,954
|
Time
deposits
|
2,885,969
|
|
2,890,205
|
Total
deposits
|
8,683,267
|
|
8,749,530
|
|
|
|
|
Senior
borrowings
|
1,125,860
|
|
1,047,736
|
Subordinated
borrowings
|
89,384
|
|
89,339
|
Total
borrowings
|
1,215,244
|
|
1,137,075
|
|
|
|
|
Other
liabilities
|
123,079
|
|
187,882
|
Total
liabilities
|
10,021,590
|
|
10,074,487
|
|
|
|
|
Total preferred
shareholders' equity
|
40,633
|
|
40,633
|
Total common
shareholders' equity
|
1,457,024
|
|
1,455,631
|
Total shareholders'
equity
|
1,497,657
|
|
1,496,264
|
Total liabilities and
shareholders' equity
|
$
11,519,247
|
|
$
11,570,751
|
|
|
|
|
Net common shares
outstanding
|
45,360
|
|
45,290
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
Annualized Growth
%
|
(in
millions)
|
|
March 31, 2018
Balance
|
|
December 31, 2017
Balance
|
|
Quarter ended
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate - construction
|
|
$
347
|
|
$
354
|
|
(8)%
|
Commercial real
estate - other
|
|
2,920
|
|
2,910
|
|
1
|
Total commercial real
estate
|
|
3,267
|
|
3,264
|
|
0
|
Commercial and
industrial loans
|
|
1,819
|
|
1,804
|
|
3
|
Total commercial
loans
|
|
5,086
|
|
5,068
|
|
1
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
2,181
|
|
2,103
|
|
15
|
|
|
|
|
|
|
|
Home
equity
|
|
400
|
|
410
|
|
(10)
|
Auto and
other
|
|
709
|
|
718
|
|
(5)
|
Total consumer
loans
|
|
1,109
|
|
1,128
|
|
(7)
|
Total
loans
|
|
$
8,376
|
|
$
8,299
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
Annualized Growth
%
|
(in
millions)
|
|
March 31, 2018
Balance
|
|
December 31, 2017
Balance
|
|
Quarter ended
March 31, 2018
|
Demand
|
|
$
1,575
|
|
$
1,606
|
|
(8)%
|
NOW and
other
|
|
715
|
|
735
|
|
(11)
|
Money
market
|
|
2,750
|
|
2,776
|
|
(4)
|
Savings
|
|
757
|
|
742
|
|
8
|
Time
deposits
|
|
2,886
|
|
2,890
|
|
(1)
|
Total
deposits
|
|
$
8,683
|
|
$
8,749
|
|
(3)%
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-4)
|
|
Three Months
Ended
|
|
March 31,
|
(in thousands,
except per share data)
|
2018
|
|
2017
|
Interest and
dividend income
|
|
|
|
Loans
|
$
92,835
|
|
$
68,943
|
Securities and
other
|
14,405
|
|
11,766
|
Total interest and
dividend income
|
107,240
|
|
80,709
|
Interest
expense
|
|
|
|
Deposits
|
15,325
|
|
9,098
|
Borrowings
|
6,445
|
|
4,725
|
Total interest
expense
|
21,770
|
|
13,823
|
Net interest
income
|
85,470
|
|
66,886
|
Non-interest
income
|
|
|
|
Mortgage banking
originations
|
10,147
|
|
12,678
|
Loan related
income
|
5,438
|
|
4,179
|
Deposit related
fees
|
8,066
|
|
6,204
|
Insurance commissions
and fees
|
3,025
|
|
3,136
|
Wealth management
fees
|
2,597
|
|
2,526
|
Total fee
income
|
29,273
|
|
28,723
|
Other
|
1,268
|
|
93
|
Securities
(losses)/gains, net
|
(1,502)
|
|
12,570
|
Gain on sale of
business operations and assets, net
|
481
|
|
-
|
Loss on termination
of hedges
|
-
|
|
(6,629)
|
Total non-interest
income
|
29,520
|
|
34,757
|
Total net
revenue
|
114,990
|
|
101,643
|
Provision for loan
losses
|
5,575
|
|
5,095
|
Non-interest
expense
|
|
|
|
Compensation and
benefits
|
42,184
|
|
36,119
|
Occupancy and
equipment
|
10,082
|
|
9,026
|
Technology and
communications
|
6,830
|
|
6,087
|
Marketing and
promotion
|
2,612
|
|
1,999
|
Professional
services
|
2,053
|
|
2,451
|
FDIC premiums and
assessments
|
1,195
|
|
1,298
|
Other real estate
owned and foreclosures
|
67
|
|
28
|
Amortization of
intangible assets
|
1,268
|
|
801
|
Merger, restructuring
and other expense
|
5,093
|
|
11,682
|
Other
|
5,485
|
|
4,835
|
Total non-interest
expense
|
76,869
|
|
74,326
|
|
|
|
|
Income before income
taxes
|
32,546
|
|
22,222
|
Income tax
expense
|
7,298
|
|
6,762
|
Net
income
|
$
25,248
|
|
$
15,460
|
Preferred stock
dividend
|
230
|
|
-
|
Income available
to common shareholders
|
$
25,018
|
|
$
15,460
|
|
|
|
|
Earnings per
common share:
|
|
|
|
Basic
|
$
0.55
|
|
$
0.44
|
Diluted
|
$
0.55
|
|
$
0.44
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
Basic
|
45,966
|
|
35,280
|
Diluted
|
46,200
|
|
35,452
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in thousands,
except per share data)
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
Loans
|
$
92,835
|
|
$
91,149
|
|
$
76,024
|
|
$
71,983
|
|
$
68,943
|
Securities and
other
|
14,405
|
|
14,674
|
|
13,036
|
|
12,683
|
|
11,766
|
Total interest and
dividend income
|
107,240
|
|
105,823
|
|
89,060
|
|
84,666
|
|
80,709
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
15,325
|
|
13,802
|
|
10,984
|
|
9,971
|
|
9,098
|
Borrowings
|
6,445
|
|
5,655
|
|
6,078
|
|
5,150
|
|
4,725
|
Total interest
expense
|
21,770
|
|
19,457
|
|
17,062
|
|
15,121
|
|
13,823
|
Net interest
income
|
85,470
|
|
86,366
|
|
71,998
|
|
69,545
|
|
66,886
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Mortgage banking
originations
|
10,147
|
|
11,918
|
|
13,374
|
|
16,281
|
|
12,678
|
Loan related
income
|
5,438
|
|
5,866
|
|
6,081
|
|
5,275
|
|
4,179
|
Deposit related
fees
|
8,066
|
|
7,871
|
|
6,445
|
|
6,645
|
|
6,204
|
Insurance commissions
and fees
|
3,025
|
|
2,284
|
|
2,581
|
|
2,588
|
|
3,136
|
Wealth management
fees
|
2,597
|
|
2,268
|
|
2,315
|
|
2,286
|
|
2,526
|
Total fee
income
|
29,273
|
|
30,207
|
|
30,796
|
|
33,075
|
|
28,723
|
Other
|
1,268
|
|
(939)
|
|
(2,255)
|
|
(276)
|
|
93
|
Securities
(losses)/gains, net
|
(1,502)
|
|
30
|
|
(1)
|
|
(1)
|
|
12,570
|
Gain on sale of
business operations and assets, net
|
481
|
|
-
|
|
296
|
|
-
|
|
-
|
Loss on termination
of hedges
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,629)
|
Total non-interest
income
|
29,520
|
|
29,298
|
|
28,836
|
|
32,798
|
|
34,757
|
Total net
revenue
|
114,990
|
|
115,664
|
|
100,834
|
|
102,343
|
|
101,643
|
Provision for loan
losses
|
5,575
|
|
6,141
|
|
4,900
|
|
4,889
|
|
5,095
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
42,184
|
|
42,220
|
|
37,643
|
|
36,997
|
|
36,119
|
Occupancy and
equipment
|
10,082
|
|
9,451
|
|
8,267
|
|
8,678
|
|
9,026
|
Technology and
communications
|
6,830
|
|
6,286
|
|
6,644
|
|
6,883
|
|
6,087
|
Marketing and
promotion
|
2,612
|
|
4,573
|
|
2,128
|
|
3,177
|
|
1,999
|
Professional
services
|
2,053
|
|
2,277
|
|
2,247
|
|
2,190
|
|
2,451
|
FDIC premiums and
assessments
|
1,195
|
|
1,920
|
|
1,651
|
|
1,588
|
|
1,298
|
Other real estate
owned and foreclosures
|
67
|
|
9
|
|
(23)
|
|
30
|
|
28
|
Amortization of
intangible assets
|
1,268
|
|
1,183
|
|
739
|
|
770
|
|
801
|
Merger, restructuring
and other expense
|
5,093
|
|
15,553
|
|
1,420
|
|
2,903
|
|
11,682
|
Other
|
5,485
|
|
6,569
|
|
5,104
|
|
6,307
|
|
4,835
|
Total non-interest
expense
|
76,869
|
|
90,041
|
|
65,820
|
|
69,523
|
|
74,326
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
32,546
|
|
19,482
|
|
30,114
|
|
27,931
|
|
22,222
|
Income tax
expense
|
7,298
|
|
22,292
|
|
7,211
|
|
8,237
|
|
6,762
|
Net
income/(loss)
|
$
25,248
|
|
$
(2,810)
|
|
$
22,903
|
|
$
19,694
|
|
$
15,460
|
Preferred stock
dividend
|
230
|
|
219
|
|
-
|
|
-
|
|
-
|
Income/(loss)
available to common shareholders
|
$
25,018
|
|
$
(3,029)
|
|
$
22,903
|
|
$
19,694
|
|
$
15,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.55
|
|
$
(0.06)
|
|
$
0.57
|
|
$
0.53
|
|
$
0.44
|
Diluted
|
$
0.55
|
|
$
(0.06)
|
|
$
0.57
|
|
$
0.53
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
45,966
|
|
45,122
|
|
39,984
|
|
37,324
|
|
35,280
|
Diluted
|
46,200
|
|
45,122
|
|
40,145
|
|
37,474
|
|
35,452
|
|
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,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
4.76%
|
|
4.73%
|
|
4.64%
|
|
4.41%
|
|
4.58%
|
Commercial and
industrial loans
|
|
5.19
|
|
5.25
|
|
5.09
|
|
5.30
|
|
4.86
|
Residential
mortgages
|
|
3.56
|
|
3.76
|
|
3.68
|
|
3.62
|
|
3.56
|
Consumer
loans
|
|
4.01
|
|
3.94
|
|
3.88
|
|
3.81
|
|
3.62
|
Total
loans
|
|
4.45
|
|
4.47
|
|
4.33
|
|
4.25
|
|
4.19
|
Securities
|
|
3.26
|
|
3.55
|
|
3.43
|
|
3.45
|
|
3.38
|
Short-term
investments and loans held for sale
|
|
3.43
|
|
2.90
|
|
3.40
|
|
3.07
|
|
2.40
|
Total earning
assets
|
|
4.21
|
|
4.27
|
|
4.13
|
|
4.07
|
|
4.00
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
|
0.28
|
|
0.25
|
|
0.26
|
|
0.23
|
|
0.22
|
Money
market
|
|
0.73
|
|
0.66
|
|
0.57
|
|
0.54
|
|
0.52
|
Savings
|
|
0.14
|
|
0.14
|
|
0.14
|
|
0.14
|
|
0.13
|
Time
|
|
1.40
|
|
1.25
|
|
1.20
|
|
1.13
|
|
1.08
|
Total
interest-bearing deposits
|
|
0.90
|
|
0.82
|
|
0.78
|
|
0.73
|
|
0.69
|
Borrowings
|
|
2.02
|
|
1.81
|
|
1.65
|
|
1.46
|
|
1.38
|
Total
interest-bearing liabilities
|
|
1.08
|
|
0.97
|
|
0.96
|
|
0.88
|
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
3.13
|
|
3.30
|
|
3.17
|
|
3.19
|
|
3.17
|
Net interest margin
(1)
|
|
3.36
|
|
3.50
|
|
3.36
|
|
3.36
|
|
3.33
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds
(2)
|
|
0.90
|
|
0.81
|
|
0.82
|
|
0.75
|
|
0.70
|
Cost of
deposits
|
|
0.73
|
|
0.66
|
|
0.64
|
|
0.60
|
|
0.56
|
|
(1)
|
The effect of
purchased loan accretion on the quarterly net interest margin was
an increase in all quarters, which is
shown sequentially as follows beginning with the most recent
quarter and ending with the earliest quarter: 0.13%,
0.21%, 0.14%, 0.12%, 0.18%. See page F-7 for purchased loan
accretion.
|
(2)
|
Cost of funds
includes all deposits and borrowings.
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
Quarters
Ended
|
|
March
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
March
31,
|
(in
thousands)
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
3,250,861
|
|
$
3,161,902
|
|
$
2,669,558
|
|
$
2,691,804
|
|
$
2,631,281
|
Commercial and
industrial loans
|
1,811,433
|
|
1,645,719
|
|
1,183,980
|
|
1,130,384
|
|
1,072,716
|
Residential
mortgages
|
2,138,544
|
|
2,081,548
|
|
1,977,538
|
|
1,871,329
|
|
1,906,457
|
Consumer
loans
|
1,114,586
|
|
1,123,683
|
|
1,030,032
|
|
996,488
|
|
978,683
|
Total loans
(1)
|
8,315,424
|
|
8,012,852
|
|
6,861,108
|
|
6,690,005
|
|
6,589,137
|
Securities
(2)
|
1,933,002
|
|
1,921,724
|
|
1,779,379
|
|
1,701,443
|
|
1,625,769
|
Short-term
investments and loans held for sale
|
139,161
|
|
146,101
|
|
167,724
|
|
148,276
|
|
118,537
|
Total earning
assets
|
10,387,587
|
|
10,080,677
|
|
8,808,211
|
|
8,539,724
|
|
8,333,443
|
Goodwill and other
intangible assets
|
557,321
|
|
533,157
|
|
420,853
|
|
421,601
|
|
422,331
|
Other
assets
|
521,745
|
|
516,802
|
|
402,188
|
|
369,317
|
|
388,211
|
Total
assets
|
$
11,466,653
|
|
$
11,130,636
|
|
$
9,631,252
|
|
$
9,330,642
|
|
$
9,143,985
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
$
712,181
|
|
$
702,353
|
|
$
570,864
|
|
$
572,688
|
|
$
574,799
|
Money
market
|
2,518,920
|
|
2,371,203
|
|
1,768,108
|
|
1,794,693
|
|
1,804,738
|
Savings
|
743,944
|
|
733,157
|
|
669,690
|
|
667,863
|
|
648,839
|
Time
|
2,913,512
|
|
2,906,423
|
|
2,587,702
|
|
2,472,990
|
|
2,351,183
|
Total
interest-bearing deposits
|
6,888,557
|
|
6,713,136
|
|
5,596,364
|
|
5,508,234
|
|
5,379,559
|
Borrowings
|
1,275,173
|
|
1,229,781
|
|
1,445,700
|
|
1,398,653
|
|
1,374,620
|
Total
interest-bearing liabilities
|
8,163,730
|
|
7,942,917
|
|
7,042,064
|
|
6,906,887
|
|
6,754,179
|
Non-interest-bearing
demand deposits
|
1,656,260
|
|
1,591,431
|
|
1,196,451
|
|
1,155,533
|
|
1,178,790
|
Other
liabilities
|
137,976
|
|
127,562
|
|
131,003
|
|
110,367
|
|
128,573
|
Total
liabilities
|
9,957,966
|
|
9,661,910
|
|
8,369,518
|
|
8,172,787
|
|
8,061,542
|
|
|
|
|
|
|
|
|
|
|
Total preferred
shareholders' equity
|
40,633
|
|
34,892
|
|
-
|
|
-
|
|
-
|
Total common
shareholders' equity
|
1,468,054
|
|
1,433,834
|
|
1,261,734
|
|
1,157,855
|
|
1,082,443
|
Total shareholders'
equity
|
1,508,687
|
|
1,468,726
|
|
1,261,734
|
|
1,157,855
|
|
1,082,443
|
Total liabilities and
shareholders' equity
|
$
11,466,653
|
|
$
11,130,636
|
|
$
9,631,252
|
|
$
9,330,642
|
|
$
9,143,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
$
5,631,305
|
|
$
5,398,144
|
|
$
4,205,113
|
|
$
4,190,777
|
|
$
4,207,166
|
Total average
deposits
|
8,544,817
|
|
8,304,567
|
|
6,792,815
|
|
6,663,767
|
|
6,558,349
|
Fully taxable
equivalent income adjustment
|
1,820
|
|
3,122
|
|
2,950
|
|
2,644
|
|
2,511
|
Purchased loan
accretion
|
3,433
|
|
5,507
|
|
3,066
|
|
2,550
|
|
3,687
|
Total average
tangible equity (3)
|
951,366
|
|
935,569
|
|
840,881
|
|
736,254
|
|
660,112
|
|
(1)
|
Total loans include
non-accruing loans.
|
(2)
|
Average balances for
securities available-for-sale are based on amortized
cost.
|
(3)
|
See page F-9 for
details on the calculation of total average tangible
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)
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
10,084
|
|
$
7,266
|
|
$
5,228
|
|
$
7,587
|
|
$
7,718
|
Commercial and
industrial loans
|
|
7,430
|
|
7,311
|
|
9,681
|
|
8,387
|
|
8,327
|
Residential
mortgages
|
|
5,777
|
|
2,883
|
|
3,092
|
|
3,245
|
|
3,971
|
Consumer
loans
|
|
5,996
|
|
5,438
|
|
4,350
|
|
4,977
|
|
5,109
|
Total non-accruing
loans
|
|
29,287
|
|
22,898
|
|
22,351
|
|
24,196
|
|
25,125
|
Other real estate
owned
|
|
-
|
|
-
|
|
288
|
|
279
|
|
71
|
Repossessed
assets
|
|
1,241
|
|
1,147
|
|
-
|
|
-
|
|
-
|
Total non-performing
assets
|
|
$
30,528
|
|
$
24,045
|
|
$
22,639
|
|
$
24,475
|
|
$
25,196
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
|
0.35%
|
|
0.28%
|
|
0.32%
|
|
0.35%
|
|
0.38%
|
Total non-performing
assets/total assets
|
|
0.27%
|
|
0.21%
|
|
0.23%
|
|
0.25%
|
|
0.27%
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
$
51,834
|
|
$
49,004
|
|
$
47,359
|
|
$
45,804
|
|
$
43,998
|
Charged-off
loans
|
|
(3,791)
|
|
(3,734)
|
|
(3,796)
|
|
(3,431)
|
|
(3,623)
|
Recoveries on
charged-off loans
|
|
241
|
|
423
|
|
541
|
|
97
|
|
334
|
Net loans
charged-off
|
|
(3,550)
|
|
(3,311)
|
|
(3,255)
|
|
(3,334)
|
|
(3,289)
|
Provision for loan
losses
|
|
5,575
|
|
6,141
|
|
4,900
|
|
4,889
|
|
5,095
|
Balance at end of
period
|
|
$
53,859
|
|
$
51,834
|
|
$
49,004
|
|
$
47,359
|
|
$
45,804
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans
|
|
0.64%
|
|
0.62%
|
|
0.71%
|
|
0.69%
|
|
0.69%
|
Allowance for loan
losses/non-accruing loans
|
|
184%
|
|
226%
|
|
219%
|
|
196%
|
|
182%
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
(817)
|
|
$
(881)
|
|
$
(1,425)
|
|
$
(1,474)
|
|
$
(633)
|
Commercial and
industrial loans
|
|
(972)
|
|
(960)
|
|
(573)
|
|
(625)
|
|
(1,634)
|
Residential
mortgages
|
|
(406)
|
|
(759)
|
|
130
|
|
(337)
|
|
(324)
|
Home
equity
|
|
(588)
|
|
(123)
|
|
(634)
|
|
(268)
|
|
(95)
|
Auto and other
consumer
|
|
(767)
|
|
(588)
|
|
(753)
|
|
(630)
|
|
(603)
|
Total, net
|
|
$
(3,550)
|
|
$
(3,311)
|
|
$
(3,255)
|
|
$
(3,334)
|
|
$
(3,289)
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.17%
|
|
0.17%
|
|
0.19%
|
|
0.20%
|
|
0.20%
|
Net charge-offs (YTD
annualized)/average loans
|
0.17%
|
|
0.19%
|
|
0.20%
|
|
0.20%
|
|
0.20%
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
|
|
|
30-89 Days
delinquent
|
|
0.39%
|
|
0.35%
|
|
0.25%
|
|
0.23%
|
|
0.24%
|
90+ Days delinquent
and still accruing
|
|
0.23%
|
|
0.20%
|
|
0.17%
|
|
0.12%
|
|
0.16%
|
Total accruing
delinquent loans
|
|
0.62%
|
|
0.55%
|
|
0.42%
|
|
0.35%
|
|
0.40%
|
Non-accruing
loans
|
|
0.35%
|
|
0.28%
|
|
0.32%
|
|
0.35%
|
|
0.38%
|
Total delinquent and
non-accruing loans
|
|
0.97%
|
|
0.83%
|
|
0.74%
|
|
0.70%
|
|
0.78%
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED -
(F-9)
|
|
|
At or for the
Quarters Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in
thousands)
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
Net
income/(loss)
|
|
$
25,248
|
|
$
(2,810)
|
|
$
22,903
|
|
$
19,694
|
|
$
15,460
|
Adj: Net securities
losses/(gains) (1)
|
|
1,502
|
|
(30)
|
|
1
|
|
1
|
|
(12,570)
|
Adj: Loss on
termination of hedges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,629
|
Adj: Net (gains) on
sale of business operations and assets
|
|
(481)
|
|
-
|
|
(296)
|
|
-
|
|
-
|
Adj: Merger and
acquisition expense
|
|
5,093
|
|
15,553
|
|
1,110
|
|
2,266
|
|
5,947
|
Adj: Restructuring
expense and other expense
|
|
-
|
|
-
|
|
310
|
|
637
|
|
5,735
|
Adj: Employee and
community investment
|
|
-
|
|
3,400
|
|
-
|
|
-
|
|
-
|
Adj: Deferred tax
asset impairment
|
|
-
|
|
18,145
|
|
-
|
|
-
|
|
-
|
Adj: Income
taxes
|
|
(1,481)
|
|
(7,963)
|
|
(474)
|
|
(1,039)
|
|
(1,801)
|
Total core income
(2)
|
(A)
|
$
29,881
|
|
$
26,295
|
|
$
23,554
|
|
$
21,559
|
|
$
19,400
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
114,990
|
|
$
115,664
|
|
$
100,834
|
|
$
102,343
|
|
$
101,643
|
Adj: Net securities
losses/(gains) (1)
|
|
1,502
|
|
(30)
|
|
1
|
|
1
|
|
(12,570)
|
Adj: Net (gains) on
sale of business operations
|
|
(481)
|
|
-
|
|
(296)
|
|
-
|
|
-
|
Adj: Loss on
termination of hedges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,629
|
Total core revenue
(2)
|
(B)
|
$
116,011
|
|
$
115,634
|
|
$
100,539
|
|
$
102,344
|
|
$
95,702
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
$
76,869
|
|
$
90,041
|
|
$
65,820
|
|
$
69,523
|
|
$
74,326
|
Less: Merger,
restructuring and other expense (see above)
|
|
(5,093)
|
|
(15,553)
|
|
(1,420)
|
|
(2,903)
|
|
(11,682)
|
Less: Employee and
community investment
|
|
-
|
|
(3,400)
|
|
-
|
|
-
|
|
-
|
Core non-interest
expense (2)
|
(C)
|
$
71,776
|
|
$
71,088
|
|
$
64,400
|
|
$
66,620
|
|
$
62,644
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
11,467
|
|
$
11,131
|
|
$
9,631
|
|
$
9,331
|
|
$
9,144
|
Total average
shareholders'
equity
|
(E)
|
1,509
|
|
1,469
|
|
1,262
|
|
1,158
|
|
1,082
|
Total average
tangible shareholders' equity
(2)
|
(F)
|
951
|
|
936
|
|
841
|
|
736
|
|
660
|
Total average
tangible common shareholders' equity
(2)
|
(G)
|
911
|
|
901
|
|
841
|
|
736
|
|
660
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(H)
|
941
|
|
939
|
|
864
|
|
847
|
|
678
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(I)
|
901
|
|
898
|
|
864
|
|
847
|
|
678
|
Total tangible
assets, period-end (2)(3)
|
(J)
|
10,963
|
|
11,013
|
|
9,346
|
|
9,206
|
|
8,876
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(K)
|
45,360
|
|
45,290
|
|
40,424
|
|
40,428
|
|
35,729
|
Average diluted
shares outstanding (thousands)
|
(L)
|
46,200
|
|
45,383
|
|
40,145
|
|
37,474
|
|
35,452
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share, diluted(2)
|
(A/L)
|
$
0.65
|
|
$
0.58
|
|
$
0.59
|
|
$
0.58
|
|
$
0.55
|
Tangible book value
per common share, period-end (2)
|
(I/K)
|
19.86
|
|
19.83
|
|
21.38
|
|
20.96
|
|
18.97
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(H)/(J)
|
8.59
|
|
8.53
|
|
9.25
|
|
9.20
|
|
7.64
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
assets
|
|
0.88%
|
|
(0.10)%
|
|
0.95%
|
|
0.84%
|
|
0.68%
|
Core return on assets
(2)
|
(A/D)
|
1.04
|
|
0.94
|
|
0.98
|
|
0.92
|
|
0.85
|
GAAP return on
equity
|
|
6.69
|
|
(0.77)
|
|
7.26
|
|
6.80
|
|
5.71
|
Core return on equity
(2)
|
(A/E)
|
7.92
|
|
7.16
|
|
7.47
|
|
7.45
|
|
7.17
|
Core return on
tangible common equity (2)(5)
|
(A+O)/(G)
|
13.43
|
|
11.90
|
|
11.42
|
|
11.96
|
|
12.05
|
Efficiency ratio
(2)(6)
|
(C-O)/(B+M+P)
|
59.54
|
|
57.43
|
|
59.28
|
|
61.72
|
|
61.94
|
Net interest
margin
|
|
3.36
|
|
3.50
|
|
3.36
|
|
3.36
|
|
3.33
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(M)
|
$
596
|
|
$
2,957
|
|
$
3,905
|
|
$
1,696
|
|
$
1,624
|
Non-interest income
charge on tax-credit investments (8)
|
(N)
|
(506)
|
|
(2,564)
|
|
(3,347)
|
|
(1,453)
|
|
(1,329)
|
Net income on
tax-credit investments
|
(M+N)
|
90
|
|
393
|
|
558
|
|
243
|
|
295
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(O)
|
$
1,268
|
|
$
1,183
|
|
$
739
|
|
$
770
|
|
$
801
|
Fully taxable
equivalent income adjustment
|
(P)
|
1,820
|
|
3,122
|
|
2,950
|
|
2,644
|
|
2,511
|
|
(1)
|
Net securities
losses/(gains) for the period ending March 31, 2018 includes the
change in fair value of the Company's equity securities in
compliance with the Company's adoption of ASU 2016-01. There
were no non-equity securities sold during the period ending March
31, 2018.
|
(2)
|
Non-GAAP financial
measure.
|
(3)
|
Total tangible
shareholders' equity is computed by taking total shareholders'
equity less the intangible assets at period-end. Total
tangible assets is computed by taking total assets less the
intangible assets at period-end.
|
(4)
|
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.
|
(5)
|
Core return on
tangible equity is computed by dividing the total core income
adjusted for the tax-effected amortization of intangible assets,
assuming a 27.32% marginal rate, by tangible equity.
|
(6)
|
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.
|
(7)
|
The tax benefit is
the direct reduction to the income tax provision due to tax credits
and deductions generated from investments in
historic rehabilitation and low-income housing.
|
(8)
|
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.