BOSTON, Oct. 26, 2020 /PRNewswire/ -- Berkshire Hills
Bancorp, Inc. (NYSE: BHLB) today announced third quarter net
income of $21 million, or
$0.42 per share, in 2020 compared to
$23 million, or $0.44 per share, in 2019. The non-GAAP
measure of core earnings totaled $26
million, or $0.53 per share,
in the third quarter of 2020 compared to $24
million, or $0.46, per share
in the third quarter of 2019. Compared to the linked quarter,
results benefited from higher revenue and lower expense as the
Company continues to adjust operations to improve operating
profitability.
THIRD QUARTER FINANCIAL HIGHLIGHTS (Changes are
compared to the prior quarter. Measures identified as
non-GAAP are reconciled on pages F-9 and F-10)
- Revenue increased by 2%
- Fee income increased by 9%
- Non-interest expense decreased by 88%, while core non-interest
expense decreased by 4% (non-GAAP measure which excludes second
quarter goodwill impairment charge)
- Efficiency ratio improved to 65% from 71% (non-GAAP
measure)
- Equity/assets ratio improved to 9.3% from 8.9%
- Tangible equity/tangible assets ratio improved to 9.1% from
8.6% (non-GAAP measure)
- 0.27% annualized net charge-offs/loans
- 0.39% non-performing assets/assets
Acting CEO and President Sean
Gray stated, "In the first half of the year, our priority
was to quickly address the needs of our team members, customers,
and communities being impacted by COVID-19. Starting in the
third quarter, we began normalizing our operations and nearly
returning to regular retail hours, while continuing to support
higher digital transaction volumes. During the quarter, we
continued our focus on managing our expenses and further
strengthening our capital and liquidity metrics. We're
working closely with our borrowers as they progress in normalizing
their operations and meeting their credit obligations. This is
reflected in our stable loan performance and resumption of regular
payment schedules for most of the borrowers who initially requested
deferrals at the outset of the pandemic."
Mr. Gray concluded, "Berkshire
is evolving and adapting to the current environment, by having made
investments that will support our customers and our Company today
and into the future. We recently launched a best-in-class digital
account opening experience that will extend our market outreach,
improve customer experience, reduce fraud and allow us to operate
more cost effectively. This is another step in building a
21st-century community bank that provides everyone equal
access to the products and services they need to bank with dignity,
achieve upward economic mobility and live healthier financial
lives."
In addition to introducing its new digital account opening
experience, the Company promoted Jason
White, a recent Boston area
CIO of the Year winner, to EVP- Chief Information Officer.
The Company also announced the promotions of two leaders to the
role of Regional President. Wealth Management Director
Kate Hersey now leads the
Boston region and Foundation
Director Lori Gazzillo Kiely now
leads the Berkshire County
region. Now half of those holding the title of Regional
President are women, furthering Berkshire's work in support of its Be FIRST
Commitment. Berkshire Bank has also been recognized with the North
American Inspiring Workplaces Award.
FINANCIAL CONDITION
Berkshire's balance sheet
continued to strengthen during the most recent quarter. Total
assets decreased by approximately $450
million, or 3%, to $12.6
billion in the third quarter of 2020. This was
primarily due to a $388 million, or
4%, decrease in total loans reflecting continued runoff in all
major loan categories. The biggest change was a $198 million, or 9%, decrease in residential
mortgage balances due to accelerated prepayments in the low
interest rate environment. Commercial loans outstanding
included $708 million in Paycheck
Protection Program ("PPP") loans, which were stable from the prior
quarter-end. Total deposits decreased by $309 million, or 3%, to $10.5 billion primarily due to a $270 million decrease in brokered balances to
$814 million. Other deposit
balances shifted from higher rate maturing time deposits into
non-maturity products due to current low interest rates. This
contributed to a decrease in the cost of deposits to 0.61% from
0.79%. Wholesale funds decreased to $1.5 billion from $1.9
billion during the quarter. Retained earnings
increased book value to $23.03 per
common share and the non-GAAP measure of tangible book value to
$22.22 per common share.
Capital metrics also improved due to the earnings benefit and
reduction in total assets. The Company has received notice for the
conversion of its remaining outstanding preferred stock to common
stock, which is not expected to have a material impact on the
Company's financial condition and per share metrics.
Total delinquent accruing loans decreased to 0.45% of loans from
0.51% of loans during the most recent quarter, while non-accruing
loans increased to 0.53% from 0.48%. Year-to-date net loan
charge-offs measuring 0.29% of total loans remained below the
levels recorded for the same period in 2019. Middle
market commercial loan modifications have included an underwriting
review and assessment of accrual status. Loans with payment
modifications are expected to decrease further in the fourth
quarter from levels previously reported. The allowance for
credit losses on loans was little changed, measuring 1.50% of total
loans at quarter-end, and 1.62% of loans excluding
government-guaranteed PPP loans.
RESULTS OF OPERATIONS
Berkshire's operating
profitability strengthened during the most recent quarter.
Berkshire reported third quarter
2020 GAAP EPS of $0.42 per
share. The Company's non-GAAP measure of core EPS totaled
$0.53 per share. Measures of
pre-tax pre-provision net revenue ("PPNR") also
improved. Non-core charges primarily consisted of costs
related to executive separation expense, together with losses on
discontinued operations and securities.
Operating results were improved from the prior quarter due to
higher revenues and lower expenses. Fee income growth of 9%
primarily reflected higher deposit fees as transaction volumes
increased. Non-interest income also benefited from recovery
in financial instrument fair value adjustments following negative
pandemic impacts in the first half of the year. Net interest
income decreased by 1% in the third quarter due primarily to loan
runoff. The net interest margin was little changed at 2.61%,
as loan yields and deposit costs both declined due to the ongoing
low interest rate environment.
Third quarter results benefited from lower operating expenses in
part because second quarter expenses were elevated by $2.6 million in one-time awards accrued to
compensate staff for expediting PPP loan processing to support
businesses and paychecks during the economic lockdowns. Other
compensation costs were also reduced during the quarter. The
efficiency ratio, a non-GAAP financial measure, improved to 65%
from 71% as a result of these improvements in revenue and
expenses. Full time equivalent staff in continuing operations
totaled 1,507 positions at period-end, compared to 1,550 positions
at the start of the year. The credit loss provision decreased
to $1 million, reflecting an improved
economic outlook after the original pandemic downturn was
recognized with high credit loss provisions in the first half of
the year. The effective tax rate was a benefit of 4%
due primarily to the impact of first half of the year expenses
lowering the taxable income for the year.
BE FIRST CORPORATE RESPONSIBILITY UPDATE
Berkshire is committed to
purpose-driven performance. Learn more about the steps Berkshire is taking to be a values-based brand
for all its stakeholders at www.berkshirebank.com/csr and in
its most recent Corporate Responsibility Report.
Key developments in the quarter include:
- Investing in Community Recovery & Resiliency: As
people and small businesses in neighborhoods across the Company's
footprint struggle through the impacts of the COVID-19 pandemic,
Berkshire's Foundation is
responding and has provided nearly $3
million in grant funding to more than 400 organizations
through the end of the third quarter. These critical investments
are ensuring access to resources for underserved populations to
become college and career ready, ensuring quality affordable
housing and supporting small business growth and entrepreneurship.
In addition, 75% of Berkshire's
employees, through its award-winning XTEAM volunteer program
contributed more than 6,000 hours of service.
- Transitioning to a Low-Carbon Future: Berkshire is working towards transitioning its
electricity to 100% renewable sources. The Company announced an
agreement with Nexamp to subscribe to a community solar project in
Massachusetts, lowering its carbon
footprint and increasing the percentage of its energy supply
procured from renewables while also reducing costs.
- Enhancing Environmental & Social Governance
Practices: The Company completed updates to its Responsible
& Sustainable Business Policy to improve the quality and
clarity of its policy and disclosure. The update included new
language to address Fraud Reporting & Suspicious Activity as
well as Conflict of Interest. In addition, the Company enhanced its
Social and Environmental Credit Risk Framework by incorporating new
policy and procedure into the existing Commercial Loan Policy to
more effectively mitigate the social and environmental risks
associated with highly sensitive industries.
- Enhancing Protected Leave For Gender-Based Violence:
Under the leadership of EVP, Chief Human Resources & Culture
Officer Jackie Courtwright and
through a unique collaboration with the non-profit FreeFrom,
Berkshire enhanced protections for
its employees experiencing gender-based violence by providing 15
days of paid leave a year to deal with the consequences of intimate
partner violence, sexual assault, and human trafficking. This
policy allows employees the ability to seek medical care, attend
court proceedings, and relocate – all without missing a paycheck or
depleting their accrued sick or vacation days.
- Recognizing Impact & Results: Berkshire was named the winner of the North
American Inspiring Workplaces Award for its diversity and culture
programming recognizing the efforts of its Be FIRST Commitment and
internal diversity work. The Company was also named one of
Massachusetts Most Charitable Companies by the Boston Business
Journal for the eighth consecutive year.
INVESTOR CONFERENCE CALL AND INVESTOR PRESENTATION
Berkshire will conduct a conference
call/webcast at 10:00 a.m. eastern
time on Tuesday, October 27, 2020 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:
https://dpregister.com/sreg/10148654/da6d986a50. 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 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. Participants
are requested to dial-in a few minutes before the scheduled start
of the call. A telephone replay of the call will be
available through Tuesday, November 3, 2020 by dialing
877-344-7529 and entering access number 10148654. The webcast
will be available on Berkshire's website for an extended
period of time.
ABOUT BERKSHIRE HILLS
BANCORP
Berkshire Hills Bancorp is the parent of Berkshire Bank which is
transforming into a 21st century community bank pursuing
purpose driven performance based on its Be FIRST corporate
responsibility culture. Headquartered in Boston, Berkshire operates 130 banking offices in
seven Northeastern states, with approximately $12.6 billion in assets. Berkshire Bank serves
the underbanked through the Reevx LabsTM platform.
FORWARD LOOKING STATEMENTS
This document contains "forward-looking statements" within the
meaning of section 27A of the Securities Act of 1933, as amended,
and section 21E of the Securities Exchange Act of 1934, as amended.
You can identify these statements from the use of the words "may,"
"will," "should," "could," "would," "plan," "potential,"
"estimate," "project," "believe," "intend," "anticipate," "expect,"
"target" and similar expressions. There are many 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.
Further, given its ongoing and dynamic nature, it is difficult
to predict what continued effects the COVID-19 pandemic will have
on our business and results of operations. The pandemic and the
related local and national economic disruption may result in a
continued decline in demand for our products and services;
increased levels of loan delinquencies, problem assets and
foreclosures; an increase in our allowance for loan losses; a
decline in the value of loan collateral, including real estate; a
greater decline in the yield on our interest-earning assets than
the decline in the cost of our interest-bearing liabilities; and
increased cybersecurity risks, as employees increasingly work
remotely.
Accordingly, you should not place undue reliance on
forward-looking statements, which reflect our expectations only as
of the date of this document. 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 pages
F-9 and F-10 in the accompanying financial tables. In all
cases, it should be understood that non-GAAP per share measures do
not depict amounts that accrue directly to the benefit of
shareholders.
The Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude items which the Company
does not view as related to its normalized operations. These
items primarily include securities gains/losses, merger costs,
restructuring costs, goodwill impairment, and discontinued
operations. Discontinued operations are the Company's
national mortgage banking operations which the Company is exiting
pursuant to a sales agreement. Merger costs consist primarily
of severance/benefit related expenses, contract termination costs,
systems conversion costs, variable compensation expenses, and
professional fees. Merger costs in 2019 were primarily
related to the acquisition of SI Financial Group.
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.
Restructuring costs also include severance and consulting expenses
related to the Company's strategic review. They also include
costs related to the consolidation of branches, including eight
branches for the full year of 2019. The Company recorded a
full impairment its goodwill in the second quarter of 2020, which
was classified as noncore. Noncore charges in the third
quarter of 2020 were primarily related to executive separation
expense, which was principally the result of the separation with
the CEO.
The Company has introduced the measure of Core Pre-Provision Net
Revenue ("Core PPNR") which measures core income before credit loss
provision and tax expense. Due to the non-cash projections
introduced into the calculation of income by the new CECL
accounting standard, the investment community is placing more
emphasis on PPNR in order to measure the results of operations and
to compare them across banks which may have widely varying
estimates of future economic conditions that affect their provision
expense and reported earnings. The Company also calculates
core PPNR/assets in order to utilize the PPNR measure in assessing
its comparative operating profitability.
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. References to organic growth
and organic change exclude balances acquired in bank
mergers.
CONTACTS
Investor Relations Contact
David Gonci; Capital Markets
Director; 413-281-1973
Media Contacts:
John
Lovallo
Email: jlovallo@levick.com
Tel: (917) 612-8419
Cate Cronin
Email: ccronin@levick.com
Tel: (202) 738-7302
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
Operations
|
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 and Supplementary Data (Five
Quarter Trend)
|
F-10
|
Reconciliation of
Non-GAAP Financial Measures and Supplementary Data
(Year-to-Date)
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-1)
|
|
|
|
|
At or for the
Quarters Ended (1)
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
per common share, diluted
|
$
0.42
|
|
$
(10.93)
|
|
$
(0.40)
|
|
$
0.51
|
|
$
0.44
|
|
|
|
Core earnings/(loss)
per common share, diluted (2)
|
0.53
|
|
(0.13)
|
|
(0.07)
|
|
0.70
|
|
0.46
|
|
|
|
Total book value per
common share
|
23.03
|
|
22.79
|
|
33.90
|
|
34.65
|
|
34.36
|
|
|
|
Tangible book value
per common share (2)
|
22.22
|
|
21.94
|
|
22.00
|
|
22.56
|
|
22.42
|
|
|
|
Market price at
period end
|
10.11
|
|
11.02
|
|
14.86
|
|
32.88
|
|
29.29
|
|
|
|
Dividends per common
share
|
0.12
|
|
0.24
|
|
0.24
|
|
0.23
|
|
0.23
|
|
|
|
Dividends per
preferred share
|
0.24
|
|
0.48
|
|
0.48
|
|
0.46
|
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
assets
|
0.67
|
%
|
(16.38)
|
%
|
(0.62)
|
%
|
0.78
|
%
|
0.67
|
%
|
|
|
Core return on assets
(2)
|
0.84
|
|
(0.19)
|
|
(0.11)
|
|
1.08
|
|
0.71
|
|
|
|
Return on
equity
|
7.50
|
|
(131.17)
|
|
(4.58)
|
|
5.90
|
|
5.12
|
|
|
|
Core return on equity
(2)
|
9.33
|
|
(1.54)
|
|
(0.84)
|
|
8.09
|
|
5.35
|
|
|
|
Core return on
tangible common equity (2)
|
10.27
|
|
(2.05)
|
|
(0.94)
|
|
13.12
|
|
8.74
|
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (4)(5)
|
2.61
|
|
2.62
|
|
3.04
|
|
3.11
|
|
3.22
|
|
|
|
Fee income/Net
interest and fee income from continuing operations
|
19.82
|
|
18.45
|
|
15.46
|
|
18.11
|
|
17.61
|
|
|
|
Efficiency ratio
(2)
|
65.39
|
|
71.01
|
|
66.92
|
|
53.66
|
|
53.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
(Year-to-date)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
loans (organic, annualized)
|
5
|
%
|
12
|
%
|
(5)
|
%
|
(7)
|
%
|
(9)
|
%
|
|
|
Total loans (organic,
annualized)
|
(7)
|
|
(3)
|
|
(8)
|
|
(9)
|
|
(9)
|
|
|
|
Total deposits
(organic, annualized)
|
2
|
|
9
|
|
(10)
|
|
0
|
|
2
|
|
|
|
Total net revenues
from continuing operations (compared to prior year)
|
(15)
|
|
(14)
|
|
(14)
|
|
4
|
|
4
|
|
|
|
(Loss)/earnings per
common share (compared to prior year)
|
(847)
|
|
(1,200)
|
|
(178)
|
|
(14)
|
|
(26)
|
|
|
|
Core earnings/(loss)
per common share (compared to prior year)(2)
|
(81)
|
|
(116)
|
|
(112)
|
|
(14)
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
12,614
|
|
$
13,063
|
|
$
13,122
|
|
$
13,216
|
|
$
13,532
|
|
|
|
Total earning
assets
|
11,832
|
|
12,267
|
|
11,785
|
|
11,916
|
|
12,174
|
|
|
|
Total
securities
|
1,988
|
|
1,882
|
|
1,837
|
|
1,770
|
|
1,861
|
|
|
|
Total
loans
|
|
8,982
|
|
9,370
|
|
9,303
|
|
9,502
|
|
9,719
|
|
|
|
Allowance for credit
losses
|
134
|
|
139
|
|
114
|
|
64
|
|
62
|
|
|
|
Total intangible
assets
|
41
|
|
42
|
|
598
|
|
599
|
|
602
|
|
|
|
Total
deposits
|
|
10,467
|
|
10,776
|
|
10,072
|
|
10,336
|
|
10,423
|
|
|
|
Total shareholders'
equity
|
1,179
|
|
1,164
|
|
1,722
|
|
1,759
|
|
1,772
|
|
|
|
Net
income/(loss)
|
21.2
|
|
(549.4)
|
|
(19.9)
|
|
25.8
|
|
22.6
|
|
|
|
Core income/(loss)
(2)
|
26.4
|
|
(6.5)
|
|
(3.6)
|
|
35.3
|
|
23.7
|
|
|
|
Purchase accounting
accretion
|
2.5
|
|
2.1
|
|
3.1
|
|
5.1
|
|
4.8
|
|
|
|
Goodwill
impairment
|
-
|
|
553.8
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY AND
CONDITION RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(current quarter annualized)/average loans
|
0.27
|
%
|
0.17
|
%
|
0.45
|
%
|
0.17
|
%
|
0.92
|
%
|
|
|
Total non-performing
assets/total assets
|
0.39
|
|
0.36
|
|
0.40
|
|
0.31
|
|
0.28
|
|
|
|
Allowance for credit
losses/total loans
|
1.50
|
|
1.49
|
|
1.22
|
|
0.67
|
|
0.64
|
|
|
|
Loans/deposits
|
86
|
|
87
|
|
92
|
|
92
|
|
93
|
|
|
|
Shareholders' equity
to total assets
|
9.35
|
|
8.91
|
|
13.13
|
|
13.31
|
|
13.10
|
|
|
|
Tangible
shareholders' equity to tangible assets (2)
|
9.05
|
|
8.61
|
|
8.98
|
|
9.19
|
|
9.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliations of
non-GAAP financial measures, including all references to core and
tangible amounts, appear on pages F-9 and F-10.
|
|
|
|
|
(2)
|
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 pages F-9 and F-10
for reconciliations of non-GAAP financial measures.
|
|
|
|
|
|
(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 investment
securities and loans.
|
|
|
|
|
|
|
|
|
|
(5)
|
The effect of
purchase accounting accretion for loans, time deposits, and
borrowings 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: 0.08%, 0.07%, 0.11%, 0.17%,
0.16%.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-2)
|
|
September
30,
|
|
June 30,
|
|
December
31,
|
|
(in
thousands)
|
2020
|
|
2020
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
90,537
|
|
$
102,105
|
|
$
105,447
|
|
Short-term
investments
|
844,755
|
|
942,047
|
|
474,382
|
|
Total cash and
short-term investments
|
935,292
|
|
1,044,152
|
|
579,829
|
|
|
|
|
|
|
|
|
Trading
security
|
9,525
|
|
9,519
|
|
10,769
|
|
Marketable equity
securities, at fair value
|
31,993
|
|
33,263
|
|
41,556
|
|
Securities available
for sale, at fair value
|
1,575,289
|
|
1,458,036
|
|
1,311,555
|
|
Securities held to
maturity, at amortized cost
|
330,197
|
|
334,895
|
|
357,979
|
|
Federal Home Loan
Bank stock and other restricted securities
|
40,520
|
|
46,139
|
|
48,019
|
|
Total
securities
|
1,987,524
|
|
1,881,852
|
|
1,769,878
|
|
Less: Allowance for
credit losses on investment securities
|
(96)
|
|
(113)
|
|
-
|
|
Net
securities
|
1,987,428
|
|
1,881,739
|
|
1,769,878
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
15,854
|
|
62,881
|
|
36,664
|
|
|
|
|
|
|
|
|
Total
loans
|
8,982,336
|
|
9,370,271
|
|
9,502,428
|
|
Less: Allowance for
credit losses on loans
|
(134,414)
|
|
(139,394)
|
|
(63,575)
|
|
Net loans
|
8,847,922
|
|
9,230,877
|
|
9,438,853
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
117,116
|
|
118,722
|
|
120,398
|
|
Other real estate
owned
|
40
|
|
40
|
|
-
|
|
Goodwill
|
-
|
|
-
|
|
553,762
|
|
Other intangible
assets
|
40,947
|
|
42,477
|
|
45,615
|
|
Cash surrender value
of bank-owned life insurance
|
231,217
|
|
229,812
|
|
227,894
|
|
Other
assets
|
425,675
|
|
430,592
|
|
288,945
|
|
Assets from
discontinued operations
|
12,966
|
|
21,692
|
|
154,132
|
|
Total
assets
|
$
12,614,457
|
|
$
13,062,984
|
|
$
13,215,970
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Demand
deposits
|
$
2,585,173
|
|
$
2,573,786
|
|
$
1,884,100
|
|
NOW and other
deposits
|
1,522,289
|
|
1,453,397
|
|
1,492,569
|
|
Money market
deposits
|
2,516,168
|
|
2,525,761
|
|
2,528,656
|
|
Savings
deposits
|
952,836
|
|
932,243
|
|
841,283
|
|
Time
deposits
|
2,890,093
|
|
3,290,721
|
|
3,589,369
|
|
Total
deposits
|
10,466,559
|
|
10,775,908
|
|
10,335,977
|
|
|
|
|
|
|
|
|
Senior
borrowings
|
605,483
|
|
719,638
|
|
730,501
|
|
Subordinated
borrowings
|
97,223
|
|
97,165
|
|
97,049
|
|
Total
borrowings
|
702,706
|
|
816,803
|
|
827,550
|
|
|
|
|
|
|
|
|
Other
liabilities
|
251,220
|
|
280,843
|
|
267,398
|
|
Liabilities from
discontinued operations
|
14,947
|
|
25,290
|
|
26,481
|
|
Total
liabilities
|
11,435,432
|
|
11,898,844
|
|
11,457,406
|
|
|
|
|
|
|
|
|
Preferred
shareholders' equity
|
20,325
|
|
20,325
|
|
40,633
|
|
Common shareholders'
equity
|
1,158,700
|
|
1,143,815
|
|
1,717,931
|
|
Total shareholders'
equity
|
1,179,025
|
|
1,164,140
|
|
1,758,564
|
|
Total liabilities and
shareholders' equity
|
$
12,614,457
|
|
$
13,062,984
|
|
$
13,215,970
|
|
|
|
|
|
|
|
|
Net common shares
outstanding
|
50,306
|
|
50,192
|
|
49,585
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Growth
%
|
(in
millions)
|
|
September 30,
2020
Balance
|
|
June 30, 2020
Balance
|
|
December 31, 2019
Balance
|
|
Quarter ended
September 30, 2020
|
|
Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real
estate
|
|
$
3,943
|
|
$
3,996
|
|
$
4,034
|
|
(5)
|
%
|
(3)
|
%
|
Commercial and
industrial loans
|
|
2,147
|
|
2,222
|
|
1,841
|
|
(14)
|
|
22
|
|
Total commercial
loans
|
|
6,090
|
|
6,218
|
|
5,875
|
|
(8)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
2,122
|
|
2,320
|
|
2,685
|
|
(34)
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
350
|
|
364
|
|
381
|
|
(15)
|
|
(11)
|
|
Auto and
other
|
|
420
|
|
468
|
|
561
|
|
(41)
|
|
(34)
|
|
Total consumer
loans
|
|
770
|
|
832
|
|
942
|
|
(30)
|
|
(24)
|
|
Total
loans
|
|
$
8,982
|
|
$
9,370
|
|
$
9,502
|
|
(17)
|
%
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Growth
%
|
(in
millions)
|
|
September 30,
2020
Balance
|
|
June 30, 2020
Balance
|
|
December 31, 2019
Balance
|
|
Quarter ended
September 30, 2020
|
|
Year to
Date
|
|
Demand
|
|
$
2,585
|
|
$
2,574
|
|
$
1,884
|
|
2
|
%
|
50
|
%
|
NOW and
other
|
|
1,523
|
|
1,453
|
|
1,493
|
|
19
|
|
3
|
|
Money
market
|
|
2,516
|
|
2,526
|
|
2,529
|
|
(2)
|
|
(1)
|
|
Savings
|
|
953
|
|
932
|
|
841
|
|
9
|
|
18
|
|
Time
deposits
|
|
2,890
|
|
3,291
|
|
3,589
|
|
(49)
|
|
(26)
|
|
Total
deposits
|
|
$
10,467
|
|
$
10,776
|
|
$
10,336
|
|
(11)
|
%
|
2
|
%
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED - (F-4)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Interest and
dividend income from continuing
operations
|
|
|
|
|
|
|
|
Loans
|
$
85,688
|
|
$
118,371
|
|
$
278,259
|
|
$
338,012
|
Securities and
other
|
12,080
|
|
15,354
|
|
39,392
|
|
46,060
|
Total interest and
dividend income
|
97,768
|
|
133,725
|
|
317,651
|
|
384,072
|
Interest expense
from continuing operations
|
|
|
|
|
|
|
|
Deposits
|
16,070
|
|
31,501
|
|
60,460
|
|
86,396
|
Borrowings
|
4,643
|
|
5,353
|
|
16,118
|
|
23,751
|
Total interest
expense
|
20,713
|
|
36,854
|
|
76,578
|
|
110,147
|
Net interest
income from continuing operations
|
77,055
|
|
96,871
|
|
241,073
|
|
273,925
|
Non-interest
income from continuing operations
|
|
|
|
|
|
|
|
Mortgage banking
originations
|
2,044
|
|
292
|
|
4,647
|
|
616
|
Loan related
income
|
4,988
|
|
6,493
|
|
12,007
|
|
17,318
|
Deposit related
fees
|
7,062
|
|
8,705
|
|
20,382
|
|
23,088
|
Insurance commissions
and fees
|
2,660
|
|
2,895
|
|
8,451
|
|
8,486
|
Wealth management
fees
|
2,299
|
|
2,325
|
|
6,926
|
|
7,114
|
Total fee
income
|
19,053
|
|
20,710
|
|
52,413
|
|
56,622
|
Other
|
1,927
|
|
609
|
|
492
|
|
1,363
|
Securities
(losses)/gains, net
|
(1,017)
|
|
87
|
|
(9,925)
|
|
2,655
|
Total non-interest
income
|
19,963
|
|
21,406
|
|
42,980
|
|
60,640
|
Total net revenue
from continuing operations
|
97,018
|
|
118,277
|
|
284,053
|
|
334,565
|
Provision for
credit losses
|
1,200
|
|
22,600
|
|
65,878
|
|
30,068
|
Non-interest
expense from continuing operations
|
|
|
|
|
|
|
|
Compensation and
benefits
|
34,809
|
|
37,272
|
|
111,121
|
|
105,551
|
Occupancy and
equipment
|
11,084
|
|
9,893
|
|
32,411
|
|
28,788
|
Technology and
communications
|
8,540
|
|
6,849
|
|
24,376
|
|
19,821
|
Marketing and
promotion
|
1,002
|
|
1,006
|
|
3,069
|
|
3,428
|
Professional
services
|
2,567
|
|
2,282
|
|
7,852
|
|
8,510
|
FDIC premiums and
assessments
|
1,518
|
|
-
|
|
4,658
|
|
3,390
|
Other real estate
owned and foreclosures
|
40
|
|
150
|
|
81
|
|
150
|
Amortization of
intangible assets
|
1,530
|
|
1,526
|
|
4,668
|
|
4,201
|
Goodwill
impairment
|
-
|
|
-
|
|
553,762
|
|
-
|
Merger, restructuring
and other expense
|
5,316
|
|
4,163
|
|
5,316
|
|
22,333
|
Other
|
6,437
|
|
7,870
|
|
21,129
|
|
23,398
|
Total non-interest
expense
|
72,843
|
|
71,011
|
|
768,443
|
|
219,570
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations before income
taxes
|
$
22,975
|
|
$
24,666
|
|
$
(550,268)
|
|
$
84,927
|
Income tax
(benefit)/expense
|
(68)
|
|
4,007
|
|
(18,194)
|
|
16,042
|
Net income/(loss)
from continuing operations
|
$
23,043
|
|
$
20,659
|
|
$
(532,074)
|
|
$
68,885
|
|
|
|
|
|
|
|
|
(Loss)/income from
discontinued operations before income taxes
|
$
(2,477)
|
|
$
2,747
|
|
$
(21,741)
|
|
$
3,975
|
Income tax
(benefit)/expense
|
(659)
|
|
790
|
|
(5,789)
|
|
1,161
|
Net (loss)/income
from discontinued operations
|
$
(1,818)
|
|
$
1,957
|
|
$
(15,952)
|
|
$
2,814
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
21,225
|
|
$
22,616
|
|
$
(548,026)
|
|
$
71,699
|
Preferred stock
dividend
|
58
|
|
240
|
|
313
|
|
720
|
Income/(loss)
available to common shareholders
|
$
21,167
|
|
$
22,376
|
|
$
(548,339)
|
|
$
70,979
|
|
|
|
|
|
|
|
|
Basic
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.46
|
|
$
0.40
|
|
$
(10.58)
|
|
$
1.41
|
Discontinued
Operations
|
(0.04)
|
|
0.04
|
|
(0.32)
|
|
0.06
|
Total
|
$
0.42
|
|
$
0.44
|
|
$
(10.90)
|
|
$
1.47
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share:
|
|
|
|
Continuing
Operations
|
$
0.46
|
|
$
0.40
|
|
$
(10.58)
|
|
$
1.40
|
Discontinued
Operations
|
(0.04)
|
|
0.04
|
|
(0.32)
|
|
0.06
|
Total
|
$
0.42
|
|
$
0.44
|
|
$
(10.90)
|
|
$
1.46
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
50,329
|
|
51,422
|
|
50,256
|
|
48,846
|
Diluted
|
50,329
|
|
51,545
|
|
50,256
|
|
48,987
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in thousands,
except per share data)
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Interest and
dividend income from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
85,688
|
|
$
90,876
|
|
$
101,695
|
|
$
110,915
|
|
$
118,371
|
|
Securities and
other
|
12,080
|
|
12,812
|
|
14,500
|
|
14,526
|
|
15,354
|
|
Total interest and
dividend income
|
97,768
|
|
103,688
|
|
116,195
|
|
125,441
|
|
133,725
|
|
Interest expense
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
16,070
|
|
20,552
|
|
23,838
|
|
28,797
|
|
31,501
|
|
Borrowings
|
4,643
|
|
5,546
|
|
5,929
|
|
5,311
|
|
5,353
|
|
Total interest
expense
|
20,713
|
|
26,098
|
|
29,767
|
|
34,108
|
|
36,854
|
|
Net interest
income from continuing operations
|
77,055
|
|
77,590
|
|
86,428
|
|
91,333
|
|
96,871
|
|
Non-interest
income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
originations
|
2,044
|
|
1,644
|
|
959
|
|
172
|
|
292
|
|
Loan related
income
|
4,988
|
|
5,717
|
|
1,302
|
|
7,056
|
|
6,493
|
|
Deposit related
fees
|
7,062
|
|
5,373
|
|
7,947
|
|
8,264
|
|
8,705
|
|
Insurance commissions
and fees
|
2,660
|
|
2,767
|
|
3,024
|
|
2,471
|
|
2,895
|
|
Wealth management
fees
|
2,299
|
|
2,057
|
|
2,570
|
|
2,239
|
|
2,325
|
|
Total fee
income
|
19,053
|
|
17,558
|
|
15,802
|
|
20,202
|
|
20,710
|
|
Other
|
1,927
|
|
(999)
|
|
(436)
|
|
75
|
|
609
|
|
Securities
(losses)/gains, net
|
(1,017)
|
|
822
|
|
(9,730)
|
|
1,734
|
|
87
|
|
Gain on sale of
business operations and assets, net
|
-
|
|
-
|
|
-
|
|
1,351
|
|
-
|
|
Total non-interest
income
|
19,963
|
|
17,381
|
|
5,636
|
|
23,362
|
|
21,406
|
|
Total net revenue
from continuing operations
|
97,018
|
|
94,971
|
|
92,064
|
|
114,695
|
|
118,277
|
|
Provision for
credit losses
|
1,200
|
|
29,871
|
|
34,807
|
|
5,351
|
|
22,600
|
|
Non-interest
expense from continuing operations
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
34,809
|
|
39,403
|
|
36,909
|
|
35,355
|
|
37,272
|
|
Occupancy and
equipment
|
11,084
|
|
10,195
|
|
11,132
|
|
10,798
|
|
9,893
|
|
Technology and
communications
|
8,540
|
|
7,755
|
|
8,081
|
|
6,702
|
|
6,849
|
|
Marketing and
promotion
|
1,002
|
|
902
|
|
1,165
|
|
1,046
|
|
1,006
|
|
Professional
services
|
2,567
|
|
2,565
|
|
2,720
|
|
2,288
|
|
2,282
|
|
FDIC premiums and
assessments
|
1,518
|
|
1,658
|
|
1,482
|
|
471
|
|
-
|
|
Other real estate
owned and foreclosures
|
40
|
|
14
|
|
27
|
|
4
|
|
150
|
|
Amortization of
intangible assets
|
1,530
|
|
1,558
|
|
1,580
|
|
1,582
|
|
1,526
|
|
Goodwill
impairment
|
-
|
|
553,762
|
|
-
|
|
-
|
|
-
|
|
Merger, restructuring
and other expense
|
5,316
|
|
-
|
|
-
|
|
5,713
|
|
4,163
|
|
Other
|
6,437
|
|
6,463
|
|
8,229
|
|
6,328
|
|
7,870
|
|
Total non-interest
expense
|
72,843
|
|
624,275
|
|
71,325
|
|
70,287
|
|
71,011
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations before income taxes
|
$
22,975
|
|
$
(559,175)
|
|
$
(14,068)
|
|
$
39,057
|
|
$
24,666
|
|
Income tax
(benefit)/expense
|
(68)
|
|
(16,130)
|
|
(1,996)
|
|
6,421
|
|
4,007
|
|
Net income/(loss)
from continuing operations
|
$
23,043
|
|
$
(543,045)
|
|
$
(12,072)
|
|
$
32,636
|
|
$
20,659
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from
discontinued operations before income taxes
|
$
(2,477)
|
|
$
(8,635)
|
|
$
(10,629)
|
|
$
(9,514)
|
|
$
2,747
|
|
Income tax
(benefit)/expense
|
(659)
|
|
(2,299)
|
|
(2,831)
|
|
(2,629)
|
|
790
|
|
Net (loss)/income
from discontinued operations
|
$
(1,818)
|
|
$
(6,336)
|
|
$
(7,798)
|
|
$
(6,885)
|
|
$
1,957
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
21,225
|
|
$
(549,381)
|
|
$
(19,870)
|
|
$
25,751
|
|
$
22,616
|
|
Preferred stock
dividend
|
58
|
|
130
|
|
125
|
|
240
|
|
240
|
|
Income/(loss)
available to common shareholders
|
$
21,167
|
|
$
(549,511)
|
|
$
(19,995)
|
|
$
25,511
|
|
$
22,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.46
|
|
$
(10.80)
|
|
$
(0.24)
|
|
$
0.65
|
|
$
0.40
|
|
Discontinued
Operations
|
(0.04)
|
|
(0.13)
|
|
(0.16)
|
|
(0.14)
|
|
0.04
|
|
Total
|
$
0.42
|
|
$
(10.93)
|
|
$
(0.40)
|
|
$
0.51
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.46
|
|
$
(10.80)
|
|
$
(0.24)
|
|
$
0.65
|
|
$
0.40
|
|
Discontinued
Operations
|
(0.04)
|
|
(0.13)
|
|
(0.16)
|
|
(0.14)
|
|
0.04
|
|
Total
|
$
0.42
|
|
$
(10.93)
|
|
$
(0.40)
|
|
$
0.51
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
50,329
|
|
50,246
|
|
50,204
|
|
50,494
|
|
51,422
|
|
Diluted
|
50,329
|
|
50,246
|
|
50,204
|
|
50,702
|
|
51,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE YIELDS AND
COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED -
(F-6)
|
|
|
Quarters
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
3.52
|
%
|
3.78
|
%
|
4.41
|
%
|
4.80
|
%
|
4.92
|
%
|
Commercial and
industrial loans
|
|
3.88
|
|
4.02
|
|
5.03
|
|
5.35
|
|
5.58
|
|
Residential
mortgages
|
|
3.78
|
|
3.78
|
|
3.77
|
|
3.61
|
|
3.73
|
|
Consumer
loans
|
|
3.59
|
|
3.72
|
|
4.28
|
|
4.38
|
|
4.55
|
|
Total
loans
|
|
3.68
|
|
3.83
|
|
4.33
|
|
4.52
|
|
4.67
|
|
Securities
|
|
2.78
|
|
3.07
|
|
3.32
|
|
3.31
|
|
3.41
|
|
Short-term
investments and loans held for sale
|
|
0.21
|
|
0.50
|
|
1.78
|
|
3.15
|
|
4.11
|
|
Total earning
assets
|
|
3.31
|
|
3.50
|
|
4.08
|
|
4.27
|
|
4.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
|
0.24
|
|
0.30
|
|
0.46
|
|
0.54
|
|
0.61
|
|
Money
market
|
|
0.38
|
|
0.58
|
|
0.98
|
|
1.18
|
|
1.27
|
|
Savings
|
|
0.10
|
|
0.10
|
|
0.13
|
|
0.14
|
|
0.13
|
|
Time
|
|
1.63
|
|
1.84
|
|
1.87
|
|
1.97
|
|
2.02
|
|
Total
interest-bearing deposits
|
|
0.81
|
|
1.01
|
|
1.18
|
|
1.35
|
|
1.43
|
|
Borrowings
|
|
2.36
|
|
2.38
|
|
2.60
|
|
2.77
|
|
3.12
|
|
Total
interest-bearing liabilities
|
|
0.95
|
|
1.16
|
|
1.33
|
|
1.48
|
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
2.36
|
|
2.34
|
|
2.75
|
|
2.79
|
|
2.88
|
|
Net interest
margin
|
|
2.61
|
|
2.62
|
|
3.04
|
|
3.11
|
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds
(1)
|
|
0.73
|
|
0.92
|
|
1.11
|
|
1.23
|
|
1.32
|
|
Cost of
deposits
|
|
0.61
|
|
0.79
|
|
0.96
|
|
1.11
|
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of funds
includes all deposits and borrowings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE BALANCES -
UNAUDITED - (F-7)
|
|
Quarters
Ended
|
|
Sept.
30,
|
|
June
30,
|
|
March
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
(in
thousands)
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
3,986,424
|
|
$
4,005,018
|
|
$
4,000,461
|
|
$
4,056,244
|
|
$
3,998,144
|
|
Commercial and
industrial loans
|
2,191,749
|
|
2,152,820
|
|
1,795,813
|
|
1,768,039
|
|
1,951,205
|
|
Residential
mortgages
|
2,224,132
|
|
2,452,622
|
|
2,654,224
|
|
2,758,676
|
|
2,849,216
|
|
Consumer
loans
|
800,824
|
|
865,318
|
|
921,810
|
|
974,889
|
|
1,035,893
|
|
Total loans
(1)
|
9,203,129
|
|
9,475,778
|
|
9,372,308
|
|
9,557,848
|
|
9,834,458
|
|
Securities
(2)
|
1,873,533
|
|
1,793,381
|
|
1,744,635
|
|
1,752,968
|
|
1,846,985
|
|
Short-term
investments and loans held for sale
|
766,447
|
|
697,138
|
|
374,894
|
|
444,622
|
|
309,897
|
|
Total earning assets
(3)
|
11,843,109
|
|
11,966,297
|
|
11,491,837
|
|
11,755,438
|
|
11,991,340
|
|
Goodwill and other
intangible assets
|
41,460
|
|
590,672
|
|
598,347
|
|
601,192
|
|
603,762
|
|
Other
assets
|
759,534
|
|
751,702
|
|
663,056
|
|
737,396
|
|
668,218
|
|
Assets from
discontinued operations
|
16,041
|
|
109,923
|
|
98,528
|
|
176,251
|
|
204,339
|
|
Total
assets
|
$
12,660,144
|
|
$
13,418,594
|
|
$
12,851,768
|
|
$
13,270,277
|
|
$
13,467,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
$
1,243,487
|
|
$
1,183,839
|
|
$
1,159,388
|
|
$
1,085,485
|
|
$
1,111,637
|
|
Money
market
|
2,673,567
|
|
2,672,066
|
|
2,752,465
|
|
2,688,766
|
|
2,624,639
|
|
Savings
|
940,488
|
|
901,218
|
|
846,942
|
|
835,209
|
|
838,445
|
|
Time
|
3,056,419
|
|
3,399,222
|
|
3,333,070
|
|
3,827,175
|
|
4,158,688
|
|
Total
interest-bearing deposits
|
7,913,961
|
|
8,156,345
|
|
8,091,865
|
|
8,436,635
|
|
8,733,409
|
|
Borrowings
|
777,369
|
|
942,033
|
|
949,316
|
|
853,911
|
|
805,035
|
|
Total
interest-bearing liabilities
|
8,691,330
|
|
9,098,378
|
|
9,041,181
|
|
9,290,546
|
|
9,538,444
|
|
Non-interest-bearing
demand deposits
|
2,558,981
|
|
2,343,173
|
|
1,849,295
|
|
1,898,045
|
|
1,864,964
|
|
Other
liabilities
|
254,273
|
|
272,690
|
|
203,797
|
|
304,504
|
|
267,922
|
|
Liabilities from
discontinued operations
|
22,805
|
|
28,988
|
|
23,799
|
|
30,446
|
|
28,206
|
|
Total
liabilities
|
11,527,389
|
|
11,743,229
|
|
11,118,072
|
|
11,523,541
|
|
11,699,536
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
shareholders' equity
|
20,325
|
|
20,325
|
|
20,548
|
|
40,633
|
|
40,633
|
|
Common shareholders'
equity
|
1,112,430
|
|
1,655,040
|
|
1,713,148
|
|
1,706,103
|
|
1,727,490
|
|
Total shareholders'
equity
|
1,132,755
|
|
1,675,365
|
|
1,733,696
|
|
1,746,736
|
|
1,768,123
|
|
Total liabilities and
shareholders' equity
|
$
12,660,144
|
|
$
13,418,594
|
|
$
12,851,768
|
|
$
13,270,277
|
|
$
13,467,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
$
7,416,523
|
|
$
7,100,296
|
|
$
6,608,090
|
|
$
6,507,505
|
|
$
6,439,685
|
|
Total average
deposits
|
10,472,942
|
|
10,499,518
|
|
9,941,160
|
|
10,334,680
|
|
10,598,373
|
|
Fully taxable
equivalent income adjustment
|
1,512
|
|
1,580
|
|
1,824
|
|
1,934
|
|
1,826
|
|
Total average
tangible equity (4)
|
1,091,295
|
|
1,084,693
|
|
1,135,349
|
|
1,145,544
|
|
1,164,361
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total loans
include non-accruing loans.
|
|
(2) Average balances
for securities available-for-sale are based on amortized
cost.
|
|
(3) Excludes
discontinued operations for presentation purposes. Performance
ratios are calculated including the impact of discontinued
operations.
|
|
(4) 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
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in
thousands)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
14,777
|
|
$
12,486
|
|
$
16,938
|
|
$
20,119
|
|
$
15,829
|
|
Commercial and
industrial loans
|
|
15,035
|
|
15,045
|
|
18,370
|
|
11,373
|
|
12,224
|
|
Residential
mortgages
|
|
7,928
|
|
9,840
|
|
9,636
|
|
3,343
|
|
3,062
|
|
Consumer
loans
|
|
9,650
|
|
7,513
|
|
6,172
|
|
4,805
|
|
5,191
|
|
Total non-accruing
loans
|
|
47,390
|
|
44,884
|
|
51,116
|
|
39,640
|
|
36,306
|
|
Other real estate
owned
|
|
401
|
|
517
|
|
224
|
|
-
|
|
-
|
|
Repossessed
assets
|
|
1,646
|
|
1,581
|
|
1,316
|
|
858
|
|
1,003
|
|
Total non-performing
assets
|
|
$
49,437
|
|
$
46,982
|
|
$
52,656
|
|
$
40,498
|
|
$
37,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
|
0.53%
|
|
0.48%
|
|
0.55%
|
|
0.42%
|
|
0.37%
|
|
Total non-performing
assets/total assets
|
|
0.39%
|
|
0.36%
|
|
0.40%
|
|
0.31%
|
|
0.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
$
139,394
|
|
$
113,510
|
|
$
63,575
|
|
$
62,230
|
|
$
62,156
|
|
Adoption of ASU No.
2016-13 (1)
|
|
-
|
|
-
|
|
25,434
|
|
-
|
|
-
|
|
Balance after
adoption of ASU No. 2016-13
|
|
139,394
|
|
113,510
|
|
89,009
|
|
62,230
|
|
62,156
|
|
Charged-off
loans
|
|
(7,776)
|
|
(7,274)
|
|
(12,432)
|
|
(4,485)
|
|
(23,524)
|
|
Recoveries on
charged-off loans
|
|
1,580
|
|
3,259
|
|
1,958
|
|
479
|
|
998
|
|
Net loans
charged-off
|
|
(6,196)
|
|
(4,015)
|
|
(10,474)
|
|
(4,006)
|
|
(22,526)
|
|
Provision for loan
credit losses
|
|
1,216
|
|
29,899
|
|
34,975
|
|
5,351
|
|
22,600
|
|
Balance at end of
period
|
|
$
134,414
|
|
$
139,394
|
|
$
113,510
|
|
$
63,575
|
|
$
62,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
|
1.50%
|
|
1.49%
|
|
1.22%
|
|
0.67%
|
|
0.64%
|
|
Allowance for credit
losses/non-accruing loans
|
284%
|
|
311%
|
|
222%
|
|
160%
|
|
171%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
$
(635)
|
|
$
(1,679)
|
|
$
(5,990)
|
|
$
(1,419)
|
|
$
(2,759)
|
|
Commercial and
industrial loans
|
|
(5,551)
|
|
(1,059)
|
|
(3,728)
|
|
(1,495)
|
|
(18,850)
|
|
Residential
mortgages
|
|
517
|
|
(966)
|
|
(19)
|
|
(351)
|
|
(140)
|
|
Home
equity
|
|
(57)
|
|
(10)
|
|
(107)
|
|
(67)
|
|
(71)
|
|
Auto and other
consumer
|
|
(470)
|
|
(301)
|
|
(630)
|
|
(674)
|
|
(706)
|
|
Total, net
|
|
$
(6,196)
|
|
$
(4,015)
|
|
$
(10,474)
|
|
$
(4,006)
|
|
$
(22,526)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.27%
|
|
0.17%
|
|
0.45%
|
|
0.17%
|
|
0.92%
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.29%
|
|
0.31%
|
|
0.45%
|
|
0.35%
|
|
0.41%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND
NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
|
|
|
|
30-89 Days
delinquent
|
|
0.31%
|
|
0.37%
|
|
0.43%
|
|
0.25%
|
|
0.26%
|
|
90+ Days delinquent
and still accruing
|
|
0.14%
|
|
0.14%
|
|
0.05%
|
|
0.29%
|
|
0.29%
|
|
Total accruing
delinquent loans
|
|
0.45%
|
|
0.51%
|
|
0.48%
|
|
0.54%
|
|
0.55%
|
|
Non-accruing
loans
|
|
0.53%
|
|
0.48%
|
|
0.55%
|
|
0.42%
|
|
0.37%
|
|
Total delinquent and
non-accruing loans
|
|
0.98%
|
|
0.99%
|
|
1.03%
|
|
0.96%
|
|
0.92%
|
|
(1) This balance
includes $12 million of PCD confirmed losses as of January 1,
2020.
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED -
(F-9)
|
|
|
At or for the
Quarters Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in
thousands)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Net
income/(loss)
|
|
$
21,225
|
|
$
(549,381)
|
|
$
(19,870)
|
|
$
25,751
|
|
$
22,616
|
|
Adj: Net securities
losses/(gains) (1)
|
|
1,017
|
|
(822)
|
|
9,730
|
|
(1,734)
|
|
(87)
|
|
Adj: Goodwill
impairment
|
|
-
|
|
553,762
|
|
-
|
|
-
|
|
-
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adj: Merger and
acquisition expense
|
|
-
|
|
-
|
|
-
|
|
3,611
|
|
3,802
|
|
Adj: Restructuring
expense and other expense
|
|
5,316
|
|
-
|
|
-
|
|
2,102
|
|
361
|
|
Adj: Loss/(income)
from discontinued operations before income taxes
|
2,477
|
|
8,635
|
|
10,629
|
|
9,514
|
|
(2,747)
|
|
Adj: Income
taxes
|
|
(3,611)
|
|
(18,658)
|
|
(4,134)
|
|
(3,910)
|
|
(281)
|
|
Total core
income/(loss) (2)
|
(A)
|
$
26,424
|
|
$
(6,464)
|
|
$
(3,645)
|
|
$
35,334
|
|
$
23,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from
continuing operations
|
|
$
97,018
|
|
$
94,971
|
|
$
92,064
|
|
$
114,695
|
|
$
118,277
|
|
Adj: Net securities
losses/(gains) (1)
|
|
1,017
|
|
(822)
|
|
9,730
|
|
(1,734)
|
|
(87)
|
|
Total core revenue
(2)
|
(B)
|
$
98,035
|
|
$
94,149
|
|
$
101,794
|
|
$
112,961
|
|
$
118,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense from continuing operations
|
|
$
72,843
|
|
$
624,275
|
|
$
71,325
|
|
$
70,287
|
|
$
71,011
|
|
Less: Merger,
restructuring and other expense (see above)
|
|
(5,316)
|
|
-
|
|
-
|
|
(5,713)
|
|
(4,163)
|
|
Less: Goodwill
impairment
|
|
-
|
|
(553,762)
|
|
-
|
|
-
|
|
-
|
|
Core non-interest
expense (2)
|
(C)
|
$
67,527
|
|
$
70,513
|
|
$
71,325
|
|
$
64,574
|
|
$
66,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
96,752
|
|
$
90,383
|
|
$
93,869
|
|
$
116,860
|
|
$
134,067
|
|
Total non-interest
expense
|
|
75,054
|
|
628,322
|
|
83,759
|
|
81,966
|
|
84,054
|
|
Pre-tax,
pre-provision net revenue (PPNR)
|
|
$
21,698
|
|
$
(537,939)
|
|
$
10,110
|
|
$
34,894
|
|
$
50,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from
continuing operations
|
|
$
97,018
|
|
$
94,971
|
|
$
92,064
|
|
$
114,695
|
|
$
118,277
|
|
Total non-interest
expense from continuing operations
|
|
72,843
|
|
624,275
|
|
71,325
|
|
70,287
|
|
71,011
|
|
Pre-tax,
pre-provision net revenue (PPNR) from continuing
operations
|
$
24,175
|
|
$
(529,304)
|
|
$
20,739
|
|
$
44,408
|
|
$
47,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core revenue
(2)
|
|
$
98,035
|
|
$
94,149
|
|
$
101,794
|
|
$
112,961
|
|
$
118,190
|
|
Core non-interest
expense (2)
|
|
67,527
|
|
70,513
|
|
71,325
|
|
64,574
|
|
66,848
|
|
Core pre-tax,
pre-provision net revenue (PPNR)
|
|
$
30,508
|
|
$
23,636
|
|
$
30,469
|
|
$
48,387
|
|
$
51,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
12,660
|
|
$
13,419
|
|
$
12,852
|
|
$
13,270
|
|
$
13,468
|
|
Total average
shareholders'
equity
|
(E)
|
1,133
|
|
1,675
|
|
1,734
|
|
1,747
|
|
1,768
|
|
Total average
tangible shareholders' equity
(2)
|
(F)
|
1,091
|
|
1,085
|
|
1,135
|
|
1,146
|
|
1,164
|
|
Total average
tangible common shareholders' equity
(2)
|
(G)
|
1,071
|
|
1,064
|
|
1,115
|
|
1,105
|
|
1,124
|
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(H)
|
1,138
|
|
1,122
|
|
1,124
|
|
1,159
|
|
1,170
|
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(I)
|
1,118
|
|
1,101
|
|
1,104
|
|
1,119
|
|
1,130
|
|
Total tangible
assets, period-end (2)(3)
|
(J)
|
12,574
|
|
13,021
|
|
12,524
|
|
12,617
|
|
12,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(K)
|
50,306
|
|
50,192
|
|
50,199
|
|
49,585
|
|
50,394
|
|
Average diluted
shares outstanding (thousands)
|
(L)
|
50,329
|
|
50,246
|
|
50,204
|
|
50,702
|
|
51,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings/(loss)
per common share, diluted(2)
|
(A/L)
|
$
0.53
|
|
$
(0.13)
|
|
$
(0.07)
|
|
$
0.70
|
|
$
0.46
|
|
Tangible book value
per common share, period-end (2)
|
(I/K)
|
22.22
|
|
21.94
|
|
22.00
|
|
22.56
|
|
22.42
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(H)/(J)
|
9.05
|
|
8.61
|
|
8.98
|
|
9.19
|
|
9.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
assets
|
|
0.67
|
%
|
(16.38)
|
%
|
(0.62)
|
%
|
0.78
|
%
|
0.67
|
%
|
Core return on assets
(2)
|
|
0.84
|
|
(0.19)
|
|
(0.11)
|
|
1.08
|
|
0.71
|
|
GAAP return on
equity
|
|
7.50
|
|
(131.17)
|
|
(4.58)
|
|
5.90
|
|
5.12
|
|
Core return on equity
(2)
|
(A/E)
|
9.33
|
|
(1.54)
|
|
(0.84)
|
|
8.09
|
|
5.35
|
|
Core return on
tangible common equity (2)(5)
|
(A+O)/(G)
|
10.27
|
|
(2.05)
|
|
(0.94)
|
|
13.12
|
|
8.74
|
|
PPNR/assets
(2)
|
|
0.69
|
|
(16.04)
|
|
0.31
|
|
1.05
|
|
1.49
|
|
Core PPNR/assets
(2)
|
|
0.97
|
|
0.71
|
|
0.96
|
|
1.48
|
|
1.55
|
|
Efficiency ratio
(2)(6)
|
(C-O)/(B+M+P)
|
65.39
|
|
71.01
|
|
66.92
|
|
53.66
|
|
53.37
|
|
Net interest
margin
|
|
2.61
|
|
2.62
|
|
3.04
|
|
3.11
|
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(M)
|
$
1,377
|
|
$
1,379
|
|
$
608
|
|
$
2,503
|
|
$
2,382
|
|
Non-interest income
charge on tax-credit investments (8)
|
(N)
|
(1,090)
|
|
(1,097)
|
|
(486)
|
|
(1,996)
|
|
(1,942)
|
|
Net income on
tax-credit investments
|
(M+N)
|
287
|
|
282
|
|
122
|
|
507
|
|
440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(O)
|
$
1,530
|
|
$
1,558
|
|
$
1,580
|
|
$
1,582
|
|
$
1,526
|
|
Fully taxable
equivalent income adjustment
|
(P)
|
1,512
|
|
1,580
|
|
1,824
|
|
1,934
|
|
1,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net securities
losses/(gains) include the change in fair value of the Company's
equity securities in compliance with the Company's adoption of ASU
2016-01.
|
|
(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/(loss) adjusted for the tax-effected amortization of
intangible assets, assuming a 27% 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.
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED -
(F-10)
|
|
|
|
At or for the Nine
Months Ended
|
|
|
|
Sept. 30,
|
|
Sept. 30,
|
|
|
(Dollars in
thousands)
|
|
2020
|
|
2019
|
|
|
Net
(loss)/income
|
|
$
(548,026)
|
|
$
71,699
|
|
|
Adj: Net securities
losses/(gains) (1)
|
|
9,925
|
|
(2,655)
|
|
|
Adj: Goodwill
impairment
|
|
553,762
|
|
-
|
|
|
Adj: Merger and
acquisition expenses
|
|
-
|
|
15,122
|
|
|
Adj: Restructuring
expense and other
|
|
5,316
|
|
7,211
|
|
|
Adj: Loss/(income)
from discontinued operations before income taxes
|
|
21,741
|
|
(3,975)
|
|
|
Adj: Income
taxes
|
|
(26,403)
|
|
(3,889)
|
|
|
Total core income
(2)
|
(A)
|
$
16,315
|
|
$
83,513
|
|
|
|
|
|
|
|
|
|
Total revenue from
continuing operations
|
|
$
284,053
|
|
$
334,565
|
|
|
Adj: Net securities
losses/(gains) (1)
|
|
9,925
|
|
(2,655)
|
|
|
Total core
revenue(2)
|
(B)
|
$
293,978
|
|
$
331,910
|
|
|
Total non-interest
expense from continuing operations
|
|
$
768,443
|
|
$
219,570
|
|
|
Less: Merger,
restructuring and other expense (see above)
|
|
(5,316)
|
|
(22,333)
|
|
|
Less: Goodwill
impairment
|
|
(553,762)
|
|
-
|
|
|
Core non-interest
expense
(2)
|
(C)
|
$
209,365
|
|
$
197,237
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
281,004
|
|
$
373,630
|
|
|
Total non-interest
expense
|
|
787,135
|
|
254,660
|
|
|
Pre-tax,
pre-provision net revenue (PPNR)
|
|
$
(506,131)
|
|
$
118,970
|
|
|
|
|
|
|
|
|
|
Total revenue from
continuing operations
|
|
$
284,053
|
|
$
334,565
|
|
|
Total non-interest
expense from continuing operations
|
|
768,443
|
|
219,570
|
|
|
Pre-tax,
pre-provision net revenue (PPNR) from continuing
operations
|
$
(484,390)
|
|
$
114,995
|
|
|
|
|
|
|
|
|
|
Total core revenue
(2)
|
|
$
293,978
|
|
$
331,910
|
|
|
Core non-interest
expense (2)
|
|
209,365
|
|
197,237
|
|
|
Core pre-tax,
pre-provision net revenue (PPNR)
|
|
$
84,613
|
|
$
134,673
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
Total average
assets
|
(D)
|
$
13,001
|
|
$
12,857
|
|
|
Total average
shareholders'
equity
|
(E)
|
1,513
|
|
1,677
|
|
|
Total average
tangible shareholders' equity
(2)
|
(F)
|
1,104
|
|
1,106
|
|
|
Total average
tangible common shareholders' equity
(2)
|
(G)
|
1,083
|
|
1,066
|
|
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(H)
|
1,138
|
|
1,170
|
|
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(I)
|
1,118
|
|
1,130
|
|
|
Total tangible
assets, period-end (2)(3)
|
(J)
|
12,574
|
|
12,930
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(K)
|
50,306
|
|
50,394
|
|
|
Average diluted
shares outstanding (thousands)
|
(L)
|
50,290
|
|
48,987
|
|
|
Core earnings per
common share, diluted(2)
|
(A/L)
|
$
0.32
|
|
$
1.70
|
|
|
Tangible book value
per common share, period-end (2)
|
(I/K)
|
22.22
|
|
22.42
|
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(H)/(J)
|
9.05
|
|
9.05
|
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
GAAP return on
assets
|
|
(5.63)
|
%
|
0.74
|
%
|
|
Core return on assets
(2)
|
(A/D)
|
0.17
|
|
0.88
|
|
|
GAAP return on
equity
|
|
(48.26)
|
|
5.70
|
|
|
Core return on equity
(2)
|
(A/E)
|
1.44
|
|
6.64
|
|
|
Core return on
tangible common equity (2)(5)
|
(A+O)/(G)
|
2.39
|
|
10.74
|
|
|
PPNR/assets
(2)
|
|
(5.19)
|
|
1.23
|
|
|
Core PPNR/assets
(2)
|
|
0.87
|
|
1.40
|
|
|
Efficiency ratio
(2)(6)
|
(C-O)/(B+M+P)
|
67.72
|
|
56.30
|
|
|
Net interest
margin
|
|
2.75
|
|
3.19
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(M)
|
$
3,364
|
|
$
5,447
|
|
|
Non-interest income
charge on tax-credit investments (8)
|
(N)
|
(2,673)
|
|
(4,459)
|
|
|
Net income on
tax-credit investments
|
(M+N)
|
691
|
|
988
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(O)
|
4,668
|
|
4,201
|
|
|
Fully taxable
equivalent income adjustment
|
(P)
|
4,917
|
|
5,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net securities
losses/(gains) include the change in fair value of the Company's
equity securities in compliance with the Company's adoption of
ASU 2016-01.
|
(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% 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.