BOSTON, July 21, 2021 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NYSE: BHLB) today announced that second
quarter 2021 delivered earnings per share of $0.43, compared to a loss in same quarter last
year and an increase of 65% from $0.26 in the first quarter of 2021. Adjusted
earnings per share, a non-GAAP measure, increased by 38% to
$0.44 from $0.32 in the first quarter. Second quarter
results featured year-over-year fee income growth due to higher
consumer activity, disciplined expense control, credit improvement
and resumption of share repurchases that were paused in 2020.
SECOND QUARTER FINANCIAL HIGHLIGHTS (Comparisons are
to the prior year unless otherwise stated; non-GAAP measures are
reconciled on pages F-9 and F-10).
- 27% increase in non-interest income
- 89% decrease in non-interest expense; 2% decrease in adjusted
non-interest expense (non-GAAP measure)
- Stable net interest margin and net interest income over last
four quarters
- No provision for credit losses on loans, compared to
$30 million in 2Q'20
- 53% reduction in net loan charge-offs from prior quarter, while
relatively flat over 2Q'20
- 65% reduction in wholesale funding to 5% of assets
- Deposit costs down to 25bps compared to 79bps in 2Q'20 and
36bps in the first quarter of 2021
- Stock repurchases of 745,000 shares (1.5% of outstanding
stock)
- Returned $26.8 million of capital
to shareholders in 2Q'21 through buybacks and dividends amounting
to 124% of 2Q'21 GAAP net income
CEO Nitin Mhatre stated, "We
posted a solid quarter of improved earnings, with increased
business activity and a stable margin. Efficiency improved and our
return on tangible common equity advanced to 7.9%. Credit
performance improved across the board as our customers return to
more normalized operations."
Mr. Mhatre continued, "In May, we announced our new strategic
plan which we call Berkshire's
Exciting Strategic Transformation, or 'BEST'. Under this plan, we
get better before we get bigger, as we target to earn in excess of
our cost of capital on completion of the three-year plan. We're
taking advantage of multiple merger-related market disruptions to
add customers and to supplement our strong team with additional
talent. Our BEST plan includes capital optimization and returning
capital to shareholders, and in the second quarter we announced a
stock repurchase program and initiated share buybacks."
RESULTS OF OPERATIONS
Earnings: Earnings per share (EPS) of $0.43 compared to a loss in the second quarter
last year and represented a 65% increase over the previous quarter.
Adjusted EPS, a non-GAAP measure, were $0.44, also compared to a year ago loss, and
represented a 38% increase over the previous quarter. Stable net
interest income, higher fee revenue, lower expenses and a decrease
in the provision for credit losses on loans drove the positive
results.
Adjusted earnings exclude items not viewed as related to ongoing
operations. In 2020, these items were primarily a goodwill
impairment change. In 2021, these items were primarily
restructuring expenses recorded in the first quarter for the
consolidation of branch offices.
GAAP pre-tax pre-provision net revenue ("PPNR") of $29 million compared to a loss in the second
quarter last year and represented a 23% increase over the previous
quarter. Adjusted PPNR increased by 23% over last year and by 9%
over the prior quarter.
The efficiency ratio improved quarter over quarter to 67.8% from
71.3%, as non-interest expense decreased by 12% due to broad-based
reductions in most categories.
The second quarter return on assets improved quarter over
quarter to 0.70% from 0.42%, while adjusted return on assets
improved to 0.71% from 0.51%. The second quarter return on tangible
common equity was 7.9%, while the adjusted return on tangible
common equity was 8.1%.
Revenue: Total net revenue increased by 3%
year over year to $97 million from
$95 million due to higher
non-interest income resulting from increased customer activity.
Net interest income declined 3% year over year and rose modestly
on a linked quarter basis. Due to the steady repricing of deposits
and the reduction in higher cost wholesale funds, the net interest
margin has been stable at approximately 2.62% over the last five
quarters. The cost of deposits decreased year over year by 54 basis
points to 0.25% and the total cost of funds decreased by 56 basis
points to 0.36%.
Second quarter non-interest income increased year over year by
$5 million, or 27%. This included a
$2 million increase in deposit
related fees reflecting increased customer activity. Additionally,
SBA loan originations revenue increased by $3 million to a record $5.3 million, reflecting strong market conditions
and expansion of the SBA team. Wealth management related revenue
increased by 22%, reflecting account growth and improved market
conditions.
Credit Loss Provision: There was no provision
required for expected credit losses on loans in the second quarter.
The provision expense is down from $30
million in the second quarter of 2020 and from $6.5 million linked quarter, reflecting much
improved economic and credit conditions.
Expense: Non-interest expense decreased 89% year
over year due to the goodwill write-off in the second quarter of
2020. Excluding this write-off, adjusted expense was down by
$2 million, or 2%, due primarily to
processing expenses in 2020 related to Paycheck Protection Program
("PPP") loans. Expenses improved quarter over quarter with broad
based reductions in all categories. Total branches have been
reduced to 115 offices from 130 at the start of the year. Full time
equivalent staff totaled 1,417 positions at midyear, compared to
1,505 positions at the start of the year. The second quarter 2021
effective income tax rate was 24%. New tax credit investments
recorded in July are targeted to benefit the effective rate in the
second half of the year.
BALANCE SHEET
Loans: Total period end loans decreased in the
second quarter by $426 million, or
6%, to $7.23 billion primarily due to
$271 million in PPP loan forgiveness,
bringing the remaining PPP loan balance down to $173 million. All other total commercial loans
were stable, as growth in originations offset further paydowns in
targeted COVID-19 sensitive portfolios. Residential mortgages
decreased by $109 million due to
ongoing rate-related refinancings. Included in assets held for sale
are $253 million in Mid-Atlantic loan
balances which are targeted to be sold as part of the previously
announced planned branch sale.
Asset Quality. Asset quality metrics continued to improve
toward pre-pandemic levels during the second quarter. Accruing
delinquent loans decreased year over year by 61% to $19 million, or 0.26% of loans. Total
COVID-19 related loan modifications decreased year over year by 94%
to $98 million, and measured 1.4% of
total loans at midyear. The allowance for credit losses on loans
decreased by $5 million to
$119 million primarily due to the
decrease in loan balances. At period-end, the allowance measured
1.65% of total loans and 1.69% of total loans excluding PPP
loans.
Deposit and Borrowings: Total deposits decreased
from the prior quarter by $330
million primarily due to an $80
million paydown of maturing brokered deposits and a
$190 million decrease in daily
fluctuating payroll deposit balances. Average deposits increased,
driven by a $250 million, or 10%,
increase in average non-interest bearing demand deposits. The
ratio of loans/deposits decreased to 73% from 75%. Higher cost
wholesale funds, consisting of brokered deposits and borrowings,
decreased by $213 million, or 24%, to
$668 million and measured 5% of
period-end total assets. Most of these balances are targeted to be
repaid as they mature in the second half of the year. At
period-end, liabilities held for sale included $633 million in Mid-Atlantic branch deposit
balances which are targeted for sale in the third quarter.
Equity: During the second quarter, Berkshire announced a board authorization for
the repurchase of 2.5 million shares. As of quarter end, the
Company had repurchased 745 thousand shares, or 1.5% of outstanding
shares, at an average price of $27.85, totaling $20.8
million. The Tier 1 common equity ratio increased to
an estimated 14.3% from 14.2% in the prior quarter. Berkshire declared a regular quarterly
dividend of $0.12 per share with a
June 29 record date and July 8 payment date.
CORPORATE RESPONSIBILITY & ESG UPDATE
Berkshire is committed to
purpose-driven, community-dedicated banking that enhances value for
all its stakeholders in pursuit of its vision to be the leading
socially responsible community bank in the markets it serves. Learn
more about the steps Berkshire is
taking at www.berkshirebank.com/csr and in its most
recent Corporate Responsibility Report.
Key developments in the quarter include:
- Launch of new socially responsible financial solutions:
In support of Berkshire's Exciting
Strategic Transformation (BEST), the Bank launched two new
financial solutions which are now part of its socially responsible
banking ecosystem.
-
- MyCheck, Berkshire's new check
cashing service helps individuals cash checks at any one of its
branches or MyTeller ITM locations for a fraction of the cost of
traditional services. The offering provides an on-ramp for
underbanked consumers to access a full banking relationship with
Berkshire.
- MyFreedom, provides a safe, transparent, affordable, and
accessible checking account as part of its socially responsible
banking ecosystem. The account has no charges for overdrafts or
monthly maintenance fees and offers free Mobile Banking with Mobile
Deposit as well as access to Berkshire Bank's Greenpath Financial
Wellness programs. MyFreedom recently received national
certification from the Cities for Financial Empowerment Fund
through their BankOn program.
- Continued Commitment to Equity, Inclusion & Culture:
Berkshire's Be FIRST culture
continues to play an important role in the Company's
transformation. Its PRIDE LGBTQIA+ Employee Resource Group
celebrated Pride Month and Berkshire joined the Human Rights Campaign's
Business Coalition for the Equality Act. Its Health & Wellness
and Multicultural Employee Resource Groups hosted programming for
Mental Health awareness month and Berkshire came together again to celebrate the
impactful significance of Black history in America on Juneteenth
National Independence Day. Employees received a paid floating
holiday to commemorate the day for the second consecutive year. The
Company also recognized six of its employees for their commitment
to volunteerism with its Volunteer Service X-ellence Awards while
naming an additional 18 employees to its volunteering honor
roll.
- Awards & Recognition: Berkshire was honored for the fourth
consecutive year with the Communitas Award for Leadership in
Corporate Social Responsibility. In addition, the Company was named
a finalist for the North American Inspiring Workplaces Award for
culture and social responsibility and was named a leader in
Diversity, Equity and Inclusion by the Albany Business Review.
- Current ESG Performance: The Company continued to
improve its Environmental, Social and Governance (ESG) ratings,
generally outperforming peers. As of June
30, 2021 the Company received ratings of: MSCI ESG- BBB; ISS
ESG Quality Score - Environment: 2, Social: 1, Governance: 2; and
Bloomberg ESG Disclosure- 47.81. The company is also rated by
Sustainalytics.
INVESTOR CONFERENCE CALL AND INVESTOR PRESENTATION
Berkshire will post an investor
presentation at its website at ir.berkshirebank.com with additional
financial information and other information about the quarter.
Berkshire will conduct a conference
call/webcast at 10:00 a.m. Eastern
Time on Wednesday, July 21, 2021 to discuss 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/10157983/ea164d8160.
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
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 for one week by
dialing 877-344-7529 and entering access number 10157983. 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 what it means to bank its neighbors socially,
humanly and digitally to empower the financial potential of people,
families and businesses in its communities as it pursues its vision
of being the leading socially responsible omni-channel community
bank in the markets it serves. Headquartered in Boston, Berkshire has $12.3
billion in assets and operates 115 banking offices primarily
in New England and New York.
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.
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 adjusted earnings
in evaluating operating trends, including components for adjusted
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. In 2020, the Company recorded a full impairment of its
goodwill and exited its discontinued national mortgage banking
operations. Other adjusted expense in 2020 was primarily related to
costs of the separation with the former CEO, as well as consulting
for the CEO succession process. A 2020 adjusted gain was recognized
on the sale of a specialty commercial insurance business line. In
2021, restructuring and other expense was primarily related to
branch consolidation costs.
The Company measures of Adjusted Pre-Provision Net Revenue
("Adjusted PPNR") which measures adjusted income before credit loss
provision and tax expense. PPNR is used by the investment community
due to the volatility and variability across banks related to
credit loss provision expense under the Current Expected Credit
Loss accounting standard. The Company also calculates adjusted
PPNR/assets in order to utilize the PPNR measure in assessing its
comparative operating profitability.
Non-GAAP 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
adjusted income. The efficiency ratio is adjusted for adjusted
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 Contacts
Kevin Conn, SVP, Investor
Relations & Corporate Development
Email: KAConn@berkshirebank.com
Tel: (617) 641-9206
David Gonci, Capital Markets
Director
Email: dgonci@berkshirebank.com
Tel: (413) 281-1973
Media Contact:
Gary Levante, SVP, Corporate
Responsibility & Culture
Email: glevante@berkshirebank.com
Tel: (413) 447-1737
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 Balances and
Average Yields and Costs
|
F-7
|
Asset Quality
Analysis
|
F-8
|
Asset Quality
Analysis (continued)
|
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)
|
|
|
|
|
|
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March 31,
|
|
June
30,
|
|
|
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
per common share, diluted
|
$
(10.93)
|
|
$
0.42
|
|
$
0.30
|
|
$
0.26
|
|
$
0.43
|
|
|
Adjusted
earnings/(loss) per common share, diluted (2)
|
(0.13)
|
|
0.53
|
|
0.28
|
|
0.32
|
|
0.44
|
|
|
Net income/(loss),
(thousands)
|
(549,381)
|
|
21,225
|
|
15,009
|
|
13,031
|
|
21,636
|
|
|
Adjusted net
income/(loss), (thousands)(2)
|
(6,464)
|
|
26,424
|
|
14,062
|
|
16,015
|
|
22,104
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
50,192
|
|
50,306
|
|
50,833
|
|
50,988
|
|
50,453
|
|
|
Average diluted
shares, (thousands)
|
50,246
|
|
50,329
|
|
50,355
|
|
50,565
|
|
50,608
|
|
|
Total book value per
common share, (end of period)
|
22.79
|
|
23.03
|
|
23.37
|
|
23.05
|
|
23.30
|
|
|
Tangible book value
per common share, (end of period) (2)
|
21.94
|
|
22.22
|
|
22.68
|
|
22.39
|
|
22.66
|
|
|
Dividends per common
share
|
0.24
|
|
0.12
|
|
0.12
|
|
0.12
|
|
0.12
|
|
|
Full-time equivalent
staff, continuing operations
|
1,511
|
|
1,507
|
|
1,505
|
|
1,467
|
|
1,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
(131.17)
|
%
|
7.50
|
%
|
5.22
|
%
|
4.50
|
%
|
7.37
|
%
|
|
Adjusted return on
equity (2)
|
(1.54)
|
|
9.33
|
|
4.89
|
|
5.53
|
|
7.53
|
|
|
Return on tangible
common equity (2)
|
(206.08)
|
|
8.32
|
|
5.85
|
|
4.98
|
|
7.92
|
|
|
Adjusted return on
tangible common equity (2)
|
(2.05)
|
|
10.27
|
|
5.50
|
|
6.04
|
|
8.08
|
|
|
Return on
assets
|
(16.38)
|
|
0.67
|
|
0.48
|
|
0.42
|
|
0.70
|
|
|
Adjusted return on
assets (2)
|
(0.19)
|
|
0.84
|
|
0.45
|
|
0.51
|
|
0.71
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (4)(5)
|
2.62
|
|
2.61
|
|
2.61
|
|
2.62
|
|
2.62
|
|
|
Efficiency ratio
(2)
|
71.01
|
|
65.39
|
|
71.03
|
|
71.32
|
|
67.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions, end of period)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
13,063
|
|
$ 12,614
|
|
$ 12,838
|
|
$
12,757
|
|
$
12,273
|
|
|
Total earning
assets
|
12,267
|
|
11,832
|
|
12,090
|
|
12,071
|
|
11,571
|
|
|
Total
loans
|
|
9,370
|
|
8,982
|
|
8,082
|
|
7,659
|
|
7,233
|
|
|
Total
deposits
|
|
10,776
|
|
10,467
|
|
10,216
|
|
10,244
|
|
9,914
|
|
|
Loans/deposits
(%)
|
87
|
%
|
86
|
%
|
79
|
%
|
75
|
%
|
73
|
%
|
|
Total shareholders'
equity
|
$
1,164
|
|
$
1,179
|
|
$
1,188
|
|
$
1,175
|
|
$
1,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
139
|
|
$
134
|
|
$
127
|
|
$
124
|
|
$
119
|
|
|
Net charge-offs,
(millions)
|
(4)
|
|
(6)
|
|
(17)
|
|
(10)
|
|
(5)
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.17
|
%
|
0.27
|
%
|
0.80
|
%
|
0.51
|
%
|
0.26
|
%
|
|
Provision expense,
(millions)
|
$
30
|
|
$
1
|
|
$
10
|
|
$
7
|
|
$
-
|
|
|
Non-performing
assets, (millions)
|
47
|
|
49
|
|
67
|
|
58
|
|
49
|
|
|
Non-performing
loans/total loans
|
0.48
|
%
|
0.53
|
%
|
0.80
|
%
|
0.73
|
%
|
0.66
|
%
|
|
Allowance for credit
losses/non-performing loans
|
311
|
|
284
|
|
196
|
|
222
|
|
250
|
|
|
Allowance for credit
losses/total loans
|
1.49
|
|
1.50
|
|
1.58
|
|
1.62
|
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital to risk weighted assets (6)
|
12.7
|
%
|
13.2
|
%
|
13.8
|
%
|
14.2
|
%
|
14.3
|
%
|
|
Tier 1 capital
leverage ratio (6)
|
8.6
|
|
9.2
|
|
9.4
|
|
9.5
|
|
9.5
|
|
|
Tangible common
shareholders' equity/tangible assets (2)
|
8.5
|
|
8.9
|
|
9.0
|
|
9.0
|
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliations of
non-GAAP financial measures, including all references to adjusted
and tangible amounts, appear on pages F-9 and F-10.
|
(2)
|
Non-GAAP financial
measure. adjusted measurements are non-GAAP financial measures that
are adjusted to exclude net non-adjusted 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 earliest quarter and
ending with the most recent quarter: 0.07%, 0.08%,
0.07%, 0.05%, 0.08%.
|
|
(6)
|
Presented as
projected for June 30, 2021 and actual for the remaining
periods.
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-2)
|
|
June 30,
|
December
31,
|
March 31,
|
June
30,
|
|
(in
thousands)
|
2020
|
2020
|
2021
|
2021
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
102,105
|
$
91,219
|
$
81,285
|
$
98,262
|
|
Short-term
investments
|
942,047
|
1,466,656
|
1,818,323
|
1,728,419
|
|
Total cash and
short-term investments
|
1,044,152
|
1,557,875
|
1,899,608
|
1,826,681
|
|
|
|
|
|
|
|
Trading
security
|
9,519
|
9,708
|
9,350
|
8,853
|
|
Marketable equity
securities, at fair value
|
33,263
|
18,513
|
15,801
|
15,709
|
|
Securities available
for sale, at fair value
|
1,458,036
|
1,695,232
|
1,627,330
|
1,640,512
|
|
Securities held to
maturity, at amortized cost
|
334,895
|
465,091
|
610,637
|
665,786
|
|
Federal Home Loan
Bank stock and other restricted securities
|
46,139
|
34,873
|
28,680
|
19,638
|
|
Total
securities
|
1,881,852
|
2,223,417
|
2,291,798
|
2,350,498
|
|
Less: Allowance for
credit losses on investment securities
|
(113)
|
(104)
|
(111)
|
(130)
|
|
Net
securities
|
1,881,739
|
2,223,313
|
2,291,687
|
2,350,368
|
|
|
|
|
|
|
|
Loans held for
sale
|
62,881
|
17,748
|
18,377
|
6,494
|
|
|
|
|
|
|
|
Total
loans
|
9,370,271
|
8,081,519
|
7,658,778
|
7,232,591
|
|
Less: Allowance for
credit losses on loans
|
(139,394)
|
(127,302)
|
(123,800)
|
(119,044)
|
|
Net loans
|
9,230,877
|
7,954,217
|
7,534,978
|
7,113,547
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
118,722
|
112,663
|
108,538
|
104,680
|
|
Other real estate
owned
|
40
|
149
|
149
|
85
|
|
Goodwill and other
intangible assets
|
42,477
|
34,819
|
33,500
|
32,203
|
|
Other
assets
|
660,404
|
619,925
|
566,809
|
562,691
|
|
Assets held for sale
(1)
|
-
|
317,304
|
303,697
|
276,576
|
|
Assets from
discontinued operations
|
21,692
|
-
|
-
|
-
|
|
Total
assets
|
$
13,062,984
|
$
12,838,013
|
$
12,757,343
|
$
12,273,325
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Demand
deposits
|
$
2,573,786
|
$
2,484,249
|
$
2,750,393
|
$
2,819,012
|
|
NOW and other
deposits
|
1,453,397
|
1,003,005
|
1,856,988
|
1,696,762
|
|
Money market
deposits
|
2,525,761
|
3,371,353
|
2,486,261
|
2,398,256
|
|
Savings
deposits
|
932,243
|
972,116
|
1,047,506
|
1,065,428
|
|
Time
deposits
|
3,290,721
|
2,385,085
|
2,103,222
|
1,934,442
|
|
Total
deposits
|
10,775,908
|
10,215,808
|
10,244,370
|
9,913,900
|
|
|
|
|
|
|
|
Senior
borrowings
|
719,638
|
474,357
|
351,354
|
217,847
|
|
Subordinated
borrowings
|
97,165
|
97,280
|
97,338
|
97,396
|
|
Total
borrowings
|
816,803
|
571,637
|
448,692
|
315,243
|
|
|
|
|
|
|
|
Other
liabilities
|
280,843
|
232,730
|
229,832
|
222,105
|
|
Liabilities held for
sale (1)
|
-
|
630,065
|
659,310
|
646,688
|
|
Liabilities from
discontinued operations
|
25,290
|
-
|
-
|
-
|
|
Total
liabilities
|
11,898,844
|
11,650,240
|
11,582,204
|
11,097,936
|
|
|
|
|
|
|
|
Preferred
shareholders' equity
|
20,325
|
-
|
-
|
-
|
|
Common shareholders'
equity
|
1,143,815
|
1,187,773
|
1,175,139
|
1,175,389
|
|
Total shareholders'
equity
|
1,164,140
|
1,187,773
|
1,175,139
|
1,175,389
|
|
Total liabilities and
shareholders' equity
|
$
13,062,984
|
$
12,838,013
|
$
12,757,343
|
$
12,273,325
|
|
|
|
|
|
|
|
(1) Includes loans
and deposits from planned branch sales in the Mid-Atlantic
region.
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth %
|
(in
millions)
|
|
December 31, 2020
Balance
|
|
March 31, 2021
Balance
|
|
June 30, 2021
Balance
|
|
Quarter ended
June 30, 2021
|
|
Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real
estate
|
|
$
3,647
|
|
$
3,645
|
|
$
3,652
|
|
-
|
%
|
-
|
%
|
Commercial and
industrial loans
|
|
1,326
|
|
1,297
|
|
1,286
|
|
(1)
|
|
(6)
|
|
Paycheck Protection
Program (PPP) Loans
|
633
|
|
444
|
|
173
|
|
(61)
|
|
(145)
|
|
Total commercial
loans
|
|
5,606
|
|
5,386
|
|
5,111
|
|
(5)
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total residential
mortgages
|
|
1,813
|
|
1,668
|
|
1,559
|
|
(7)
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
295
|
|
280
|
|
270
|
|
(3)
|
|
(17)
|
|
Auto and
other
|
|
368
|
|
325
|
|
293
|
|
(10)
|
|
(41)
|
|
Total consumer
loans
|
|
663
|
|
605
|
|
563
|
|
(7)
|
|
(30)
|
|
Total
loans
|
|
$
8,082
|
|
$
7,659
|
|
$
7,233
|
|
(6)
|
%
|
(21)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth %
|
(in
millions)
|
|
December 31, 2020
Balance
|
|
March 31, 2021
Balance
|
|
June 30, 2021
Balance
|
|
Quarter ended
June 30, 2021
|
|
Year to
Date
|
|
Non-interest
bearing
|
|
$
2,484
|
|
$
2,750
|
|
$
2,819
|
|
3
|
%
|
27
|
%
|
NOW and
other
|
|
1,003
|
|
1,857
|
|
1,697
|
|
(9)
|
|
138
|
|
Money
market
|
|
3,372
|
|
2,486
|
|
2,398
|
|
(4)
|
|
(58)
|
|
Savings
|
|
972
|
|
1,048
|
|
1,065
|
|
2
|
|
19
|
|
Time
deposits
|
|
2,385
|
|
2,103
|
|
1,935
|
|
(8)
|
|
(38)
|
|
Total deposits
(1)
|
|
$
10,216
|
|
$
10,244
|
|
$
9,914
|
|
(3)
|
%
|
(6)
|
%
|
(1) Included in total
deposits are brokered deposits of $358.4 million, $431.5 million
and $610.6 million at June 30, 2021, March 31,
2021, and December 31, 2020,
respectively.
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED - (F-4)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Interest
income
|
85,364
|
|
103,688
|
|
173,517
|
|
219,883
|
Interest
expense
|
9,971
|
|
26,098
|
|
23,031
|
|
55,865
|
Net interest income
from continuing operations, not FTE
|
75,393
|
|
77,590
|
|
150,486
|
|
164,018
|
Non-interest
income from continuing operations
|
|
|
|
|
|
|
|
Deposit related
fees
|
7,508
|
|
5,373
|
|
14,634
|
|
13,320
|
Loan fees and
revenue
|
7,431
|
|
5,717
|
|
17,677
|
|
7,019
|
Insurance commissions
and fees
|
2,292
|
|
2,767
|
|
5,422
|
|
5,791
|
Wealth management
fees
|
2,519
|
|
2,057
|
|
5,291
|
|
4,627
|
Mortgage banking
originations
|
534
|
|
1,644
|
|
1,336
|
|
2,603
|
Other
|
2,211
|
|
(999)
|
|
4,359
|
|
(1,435)
|
Total non-interest
income excluding gains/(losses)
|
22,495
|
|
16,559
|
|
48,719
|
|
31,925
|
Securities
(losses)/gains, net
|
(484)
|
|
822
|
|
(515)
|
|
(8,908)
|
Gain on sale of
business operations and assets, net
|
-
|
|
-
|
|
-
|
|
-
|
Total non-interest
income
|
22,011
|
|
17,381
|
|
48,204
|
|
23,017
|
Total net revenue
from continuing operations
|
97,404
|
|
94,971
|
|
198,690
|
|
187,035
|
Total net revenue
from continuing operations excluding (losses)/gains
|
97,888
|
|
94,149
|
|
199,205
|
|
195,943
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
-
|
|
29,871
|
|
6,500
|
|
64,678
|
Non-interest
expense from continuing operations
|
|
|
|
|
|
|
|
Compensation and
benefits
|
36,970
|
|
39,403
|
|
75,705
|
|
76,312
|
Occupancy and
equipment
|
10,599
|
|
10,195
|
|
21,623
|
|
21,327
|
Technology and
communications
|
8,214
|
|
7,755
|
|
16,807
|
|
15,836
|
Professional
services
|
3,701
|
|
2,565
|
|
10,315
|
|
5,285
|
Other
expenses
|
9,382
|
|
10,595
|
|
19,084
|
|
23,078
|
Merger, restructuring
and other non-operating expenses
|
6
|
|
553,762
|
|
3,492
|
|
553,762
|
Total non-interest
expense
|
68,872
|
|
624,275
|
|
147,026
|
|
695,600
|
Total non-interest
expense excluding merger, restructuring and other
|
68,866
|
|
70,513
|
|
143,534
|
|
141,838
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations before income
taxes
|
$
28,532
|
|
$
(559,175)
|
|
$
45,164
|
|
$
(573,243)
|
Income tax
expense/(benefit)
|
6,896
|
|
(16,130)
|
|
10,497
|
|
(18,126)
|
Net income/(loss)
from continuing operations
|
$
21,636
|
|
$
(543,045)
|
|
$
34,667
|
|
$
(555,117)
|
|
|
|
|
|
|
|
|
(Loss) from
discontinued operations before income taxes
|
$
-
|
|
$
(8,635)
|
|
$
-
|
|
$
(19,264)
|
Income tax
(benefit)
|
-
|
|
(2,299)
|
|
-
|
|
(5,130)
|
Net (loss) from
discontinued operations
|
$
-
|
|
$
(6,336)
|
|
$
-
|
|
$
(14,134)
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
21,636
|
|
$
(549,381)
|
|
$
34,667
|
|
$
(569,251)
|
Preferred stock
dividend
|
-
|
|
130
|
|
-
|
|
255
|
Income/(loss)
available to common shareholders
|
$
21,636
|
|
$
(549,511)
|
|
$
34,667
|
|
$
(569,506)
|
|
|
|
|
|
|
|
|
Basic
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.43
|
|
$
(10.80)
|
|
$
0.69
|
|
$
(11.05)
|
Discontinued
Operations
|
-
|
|
(0.13)
|
|
-
|
|
(0.28)
|
Total
|
$
0.43
|
|
$
(10.93)
|
|
$
0.69
|
|
$
(11.33)
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.43
|
|
$
(10.80)
|
|
$
0.69
|
|
$
(11.05)
|
Discontinued
Operations
|
-
|
|
(0.13)
|
|
-
|
|
(0.28)
|
Total
|
$
0.43
|
|
$
(10.93)
|
|
$
0.69
|
|
$
(11.33)
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
50,321
|
|
50,246
|
|
50,327
|
|
50,228
|
Diluted
|
50,608
|
|
50,246
|
|
50,588
|
|
50,228
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March 31,
|
|
June 30,
|
|
(in thousands,
except per share data)
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
Interest
income
|
|
103,688
|
|
97,768
|
|
92,131
|
|
88,153
|
|
85,364
|
|
Interest
expense
|
|
26,098
|
|
20,713
|
|
16,422
|
|
13,060
|
|
9,971
|
|
Net interest income
from continuing operations, not FTE
|
|
77,590
|
|
77,055
|
|
75,709
|
|
75,093
|
|
75,393
|
|
Non-interest income
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
|
5,373
|
|
7,062
|
|
7,523
|
|
7,126
|
|
7,508
|
|
Loan fees and
revenue
|
|
5,717
|
|
4,988
|
|
4,833
|
|
10,246
|
|
7,431
|
|
Insurance commissions
and fees
|
|
2,767
|
|
2,660
|
|
2,319
|
|
3,130
|
|
2,292
|
|
Wealth management
fees
|
|
2,057
|
|
2,299
|
|
2,359
|
|
2,772
|
|
2,519
|
|
Mortgage banking
originations
|
|
1,644
|
|
2,044
|
|
543
|
|
802
|
|
534
|
|
Other
|
|
(999)
|
|
1,927
|
|
2,105
|
|
2,148
|
|
2,211
|
|
Total non-interest
income excluding (losses)/gains
|
|
16,559
|
|
20,980
|
|
19,682
|
|
26,224
|
|
22,495
|
|
Securities
(losses)/gains, net
|
|
822
|
|
(1,017)
|
|
2,405
|
|
(31)
|
|
(484)
|
|
Gain on sale of
business operations and assets, net
|
|
-
|
|
-
|
|
1,240
|
|
-
|
|
-
|
|
Total non-interest
income
|
|
17,381
|
|
19,963
|
|
23,327
|
|
26,193
|
|
22,011
|
|
Total net revenue
from continuing operations
|
|
94,971
|
|
97,018
|
|
99,036
|
|
101,286
|
|
97,404
|
|
Total net revenue
from continuing operations excluding (losses)/gains
|
94,149
|
|
98,035
|
|
95,391
|
|
101,317
|
|
97,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
29,871
|
|
1,200
|
|
10,000
|
|
6,500
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
39,403
|
|
34,809
|
|
36,719
|
|
38,735
|
|
36,970
|
|
Occupancy and
equipment
|
|
10,195
|
|
11,084
|
|
10,948
|
|
11,024
|
|
10,599
|
|
Technology and
communications
|
|
7,755
|
|
8,540
|
|
7,988
|
|
8,593
|
|
8,214
|
|
Professional
services
|
|
2,565
|
|
2,567
|
|
4,055
|
|
6,614
|
|
3,701
|
|
Other
expenses
|
|
10,595
|
|
10,527
|
|
11,563
|
|
9,702
|
|
9,382
|
|
Merger, restructuring
and other non-operating expenses
|
|
553,762
|
|
5,316
|
|
523
|
|
3,486
|
|
6
|
|
Total non-interest
expense
|
|
624,275
|
|
72,843
|
|
71,796
|
|
78,154
|
|
68,872
|
|
Total non-interest
expense excluding merger, restructuring and other
|
|
70,513
|
|
67,527
|
|
71,273
|
|
74,668
|
|
68,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
continuing operations before income taxes
|
|
$
(559,175)
|
|
$
22,975
|
|
$
17,240
|
|
$
16,632
|
|
$
28,532
|
|
Income tax
expense/(benefit)
|
|
(16,130)
|
|
(68)
|
|
(1,659)
|
|
3,601
|
|
6,896
|
|
Net income/(loss)
from continuing operations
|
|
$
(543,045)
|
|
$
23,043
|
|
$
18,899
|
|
$
13,031
|
|
$
21,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from
discontinued operations before income taxes
|
|
$
(8,635)
|
|
$
(2,477)
|
|
$
(5,114)
|
|
$
-
|
|
$
-
|
|
Income tax
(benefit)
|
|
(2,299)
|
|
(659)
|
|
(1,224)
|
|
-
|
|
-
|
|
Net (loss) from
discontinued operations
|
|
$
(6,336)
|
|
$
(1,818)
|
|
$
(3,890)
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
(549,381)
|
|
$
21,225
|
|
$
15,009
|
|
$
13,031
|
|
$
21,636
|
|
Preferred stock
dividend
|
|
130
|
|
58
|
|
-
|
|
-
|
|
-
|
|
Income/(loss)
available to common shareholders
|
|
$
(549,511)
|
|
$
21,167
|
|
$
15,009
|
|
$
13,031
|
|
$
21,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$
(10.80)
|
|
$
0.46
|
|
$
0.38
|
|
$
0.26
|
|
$
0.43
|
|
Discontinued
Operations
|
|
(0.13)
|
|
(0.04)
|
|
(0.08)
|
|
-
|
|
-
|
|
Total
|
|
$
(10.93)
|
|
$
0.42
|
|
$
0.30
|
|
$
0.26
|
|
$
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
50,246
|
|
50,329
|
|
50,308
|
|
50,330
|
|
50,321
|
|
Diluted
|
|
50,246
|
|
50,329
|
|
50,355
|
|
50,565
|
|
50,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE BALANCES
AND AVERAGE YIELDS AND COSTS - UNAUDITED - (F-6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
March 31,
2021
|
June 30,
2021
|
|
|
|
June 30,
2020
|
|
Sept. 30,
2020
|
|
|
|
(in
millions)
|
|
Average
Balance
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Average
Yield/Rate
|
|
Average
Balance
|
Average
Yield/Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
4,005
|
3.78
|
%
|
|
3,986
|
3.52
|
%
|
3,843
|
3.34
|
%
|
3,630
|
3.27
|
%
|
3,625
|
3.46
|
%
|
Commercial and
industrial loans
|
|
2,153
|
4.02
|
|
|
2,192
|
3.88
|
|
|
2,056
|
4.05
|
|
|
1,865
|
4.62
|
|
1,605
|
4.74
|
|
|
Residential
mortgages
|
|
2,453
|
3.78
|
|
|
2,224
|
3.78
|
|
|
1,971
|
3.78
|
|
|
1,740
|
3.71
|
|
1,604
|
3.79
|
|
|
Consumer
loans
|
|
865
|
3.72
|
|
|
801
|
3.59
|
|
|
726
|
3.41
|
|
|
634
|
3.79
|
|
582
|
3.80
|
|
|
Total loans
(1)
|
|
9,476
|
3.83
|
|
|
9,203
|
3.68
|
|
|
8,596
|
3.62
|
|
|
7,869
|
3.73
|
|
7,416
|
3.84
|
|
|
Securities
(2)
|
|
1,793
|
3.07
|
|
|
1,874
|
2.78
|
|
|
1,968
|
2.69
|
|
|
2,195
|
2.36
|
|
2,259
|
2.17
|
|
|
Short-term
investments and loans held for sale
|
|
697
|
0.50
|
|
|
766
|
0.21
|
|
|
977
|
0.14
|
|
|
1,351
|
0.13
|
|
1,750
|
0.10
|
|
|
Mid-Atlantic region
loans held for sale
|
|
-
|
-
|
|
|
-
|
-
|
|
|
101
|
4.27
|
|
|
295
|
4.09
|
|
269
|
3.96
|
|
|
Total earning
assets (3)
|
|
11,966
|
3.50
|
|
|
11,843
|
3.31
|
|
|
11,642
|
3.17
|
|
|
11,710
|
3.07
|
|
11,694
|
2.96
|
|
|
Goodwill and other
intangible assets
|
|
591
|
|
|
|
41
|
|
|
|
40
|
|
|
|
34
|
|
|
33
|
|
|
|
Other
assets
|
|
752
|
|
|
|
760
|
|
|
|
752
|
|
|
|
724
|
|
|
690
|
|
|
|
Assets from
discontinued operations
|
|
110
|
|
|
|
16
|
|
|
|
12
|
|
|
|
-
|
|
|
-
|
|
|
|
Total
assets
|
|
13,419
|
|
|
|
12,660
|
|
|
|
12,446
|
|
|
|
12,468
|
|
|
12,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
|
1,184
|
0.30
|
%
|
1,244
|
0.24
|
%
|
1,279
|
0.17
|
%
|
1,325
|
0.15
|
%
|
1,389
|
0.07
|
%
|
Money
market
|
|
2,672
|
0.58
|
|
|
2,674
|
0.38
|
|
|
2,756
|
0.32
|
|
|
2,802
|
0.27
|
|
2,751
|
0.18
|
|
|
Savings
|
|
901
|
0.10
|
|
|
940
|
0.10
|
|
|
967
|
0.08
|
|
|
1,003
|
0.08
|
|
1,054
|
0.05
|
|
|
Time
|
|
3,399
|
1.84
|
|
|
3,056
|
1.63
|
|
|
2,629
|
1.35
|
|
|
2,266
|
1.12
|
|
2,013
|
0.94
|
|
|
Total
interest-bearing deposits
|
|
8,156
|
1.01
|
|
|
7,914
|
0.81
|
|
|
7,631
|
0.62
|
|
|
7,396
|
0.48
|
|
7,207
|
0.35
|
|
|
Borrowings
|
|
942
|
2.38
|
|
|
777
|
2.36
|
|
|
658
|
2.50
|
|
|
500
|
2.78
|
|
381
|
3.12
|
|
|
Mid-Atlantic region
interest-bearing deposits
|
|
-
|
-
|
|
|
-
|
-
|
|
|
180
|
0.80
|
|
|
518
|
0.60
|
|
517
|
0.51
|
|
|
Total
interest-bearing liabilities
|
|
9,098
|
1.16
|
|
|
8,691
|
0.95
|
|
|
8,469
|
0.77
|
|
|
8,414
|
0.63
|
|
8,105
|
0.49
|
|
|
Non-interest-bearing
demand deposits
|
|
2,343
|
|
|
|
2,559
|
|
|
|
2,542
|
|
|
|
2,537
|
|
|
2,787
|
|
|
|
Other liabilities
(4)
|
|
274
|
|
|
|
254
|
|
|
|
279
|
|
|
|
358
|
|
|
351
|
|
|
|
Liabilities from
discontinued operations
|
|
29
|
|
|
|
23
|
|
|
|
6
|
|
|
|
-
|
|
|
-
|
|
|
|
Total
liabilities
|
|
11,744
|
|
|
|
11,527
|
|
|
|
11,296
|
|
|
|
11,309
|
|
|
11,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
shareholders' equity
|
|
20
|
|
|
|
20
|
|
|
|
7
|
|
|
|
-
|
|
|
-
|
|
|
|
Common shareholders'
equity
|
|
1,655
|
|
|
|
1,113
|
|
|
|
1,143
|
|
|
|
1,159
|
|
|
1,174
|
|
|
|
Total shareholders'
equity
|
|
1,675
|
|
|
|
1,133
|
|
|
|
1,150
|
|
|
|
1,159
|
|
|
1,174
|
|
|
|
Total liabilities and
shareholders' equity
|
|
13,419
|
|
|
|
12,660
|
|
|
|
12,446
|
|
|
|
12,468
|
|
|
12,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
2.34
|
%
|
|
2.36
|
%
|
|
2.40
|
%
|
|
2.44
|
%
|
2.47
|
%
|
Net interest margin,
FTE (5)
|
|
|
2.62
|
|
|
|
2.61
|
|
|
|
2.61
|
|
|
|
2.62
|
|
|
2.62
|
|
|
Cost of
funds
|
|
|
0.92
|
|
|
|
0.73
|
|
|
|
0.60
|
|
|
|
0.48
|
|
|
0.36
|
|
|
Cost of
deposits
|
|
|
0.79
|
|
|
|
0.61
|
|
|
|
0.47
|
|
|
|
0.36
|
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
not FTE
|
|
78
|
|
|
|
77
|
|
|
|
76
|
|
|
|
75
|
|
|
75
|
|
|
|
Fully taxable
equivalent income adjustment
|
|
2
|
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
2
|
|
|
|
Net Interest
Income, FTE
|
|
79
|
|
|
|
79
|
|
|
|
77
|
|
|
|
77
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average PPP
loans
|
|
461
|
|
|
|
707
|
|
|
|
685
|
|
|
|
546
|
|
|
321
|
|
|
|
Average loans
excluding PPP loans
|
|
9,015
|
|
|
|
8,496
|
|
|
|
7,911
|
|
|
|
7,323
|
|
|
7,095
|
|
|
|
Total PPP loans,
end of period
|
|
706
|
|
|
|
708
|
|
|
|
633
|
|
|
|
444
|
|
|
173
|
|
|
|
Total loans excluding
PPP loans, end of period
|
|
8,664
|
|
|
|
8,274
|
|
|
|
7,448
|
|
|
|
7,215
|
|
|
7,059
|
|
|
|
PPP interest
income
|
|
3
|
|
|
|
4
|
|
|
|
6
|
|
|
|
7
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
|
7,100
|
|
|
|
7,417
|
|
|
|
7,544
|
|
|
|
7,666
|
|
|
7,981
|
|
|
|
Total average
deposits
|
|
10,500
|
|
|
|
10,473
|
|
|
|
10,173
|
|
|
|
9,932
|
|
|
9,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased loan
accretion
|
|
2
|
|
|
|
3
|
|
|
|
2
|
|
|
|
1
|
|
|
2
|
|
|
|
Total average
tangible equity (6)
|
|
1,085
|
|
|
|
1,091
|
|
|
|
1,110
|
|
|
|
1,125
|
|
|
1,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Includes the
Mid-Atlantic region non-interesting bearing deposits. As of June
30, 2021 and December 31, 2020, the Mid-Atlantic region average
non-interest bearing deposits were $125 million and $37 million,
respectively.
|
(5) The effect of PPP
loans on the quarterly net interest margin is shown sequentially as
follows beginning with the earliest quarter and ending with the
most recent quarter: 0.00%, (0.01%), 0.05%, 0.11%,
0.11%.
This calculation
excludes gross interest income on PPP loans and average PPP loan
balances.
|
(6) See page F-9 for
details on the calculation of total average tangible
equity.
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED - (F-7)
|
|
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March 31,
|
|
June 30,
|
|
(in
thousands)
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
12,486
|
|
$
14,777
|
|
$
35,581
|
|
$
28,325
|
|
$
22,799
|
|
Commercial and
industrial loans
|
15,045
|
|
15,035
|
|
12,921
|
|
9,371
|
|
9,427
|
|
Residential
mortgages
|
9,840
|
|
7,928
|
|
8,347
|
|
10,674
|
|
9,238
|
|
Consumer
loans
|
7,513
|
|
9,650
|
|
8,099
|
|
7,447
|
|
6,141
|
|
Total non-accruing
loans
|
44,884
|
|
47,390
|
|
64,948
|
|
55,817
|
|
47,605
|
|
Other real estate
owned
|
517
|
|
401
|
|
149
|
|
149
|
|
85
|
|
Repossessed
assets
|
1,581
|
|
1,646
|
|
1,932
|
|
1,701
|
|
1,666
|
|
Total non-performing
assets
|
$
46,982
|
|
$
49,437
|
|
$
67,029
|
|
$
57,667
|
|
$
49,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
0.48%
|
|
0.53%
|
|
0.80%
|
|
0.73%
|
|
0.66%
|
|
Total non-accruing
loans/total loans excluding PPP loans
|
0.52%
|
|
0.57%
|
|
0.87%
|
|
0.77%
|
|
0.67%
|
|
Total non-performing
assets/total assets
|
0.36%
|
|
0.39%
|
|
0.52%
|
|
0.45%
|
|
0.40%
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$ 113,510
|
|
$ 139,394
|
|
$ 134,414
|
|
$ 127,302
|
|
$ 123,800
|
|
Charged-off
loans
|
(7,274)
|
|
(7,776)
|
|
(18,314)
|
|
(11,460)
|
|
(7,248)
|
|
Recoveries on
charged-off loans
|
3,259
|
|
1,580
|
|
1,209
|
|
1,465
|
|
2,492
|
|
Net loans
charged-off
|
(4,015)
|
|
(6,196)
|
|
(17,105)
|
|
(9,995)
|
|
(4,756)
|
|
Provision for loan
credit losses
|
29,899
|
|
1,216
|
|
9,993
|
|
6,493
|
|
-
|
|
Balance at end of
period
|
$ 139,394
|
|
$ 134,414
|
|
$ 127,302
|
|
$ 123,800
|
|
$ 119,044
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.49%
|
|
1.50%
|
|
1.58%
|
|
1.62%
|
|
1.65%
|
|
Allowance for credit
losses/total loans excluding PPP loans
|
1.61%
|
|
1.62%
|
|
1.71%
|
|
1.72%
|
|
1.69%
|
|
Allowance for credit
losses/non-accruing loans
|
311%
|
|
284%
|
|
196%
|
|
222%
|
|
250%
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
(1,679)
|
|
$
(635)
|
|
$ (11,862)
|
|
$
(6,959)
|
|
$
(2,325)
|
|
Commercial and
industrial loans
|
(1,059)
|
|
(5,551)
|
|
(5,089)
|
|
(2,662)
|
|
(2,331)
|
|
Residential
mortgages
|
(966)
|
|
517
|
|
250
|
|
80
|
|
176
|
|
Home
equity
|
(10)
|
|
(57)
|
|
141
|
|
(42)
|
|
(136)
|
|
Auto and other
consumer
|
(301)
|
|
(470)
|
|
(545)
|
|
(412)
|
|
(140)
|
|
Total, net
|
$
(4,015)
|
|
$
(6,196)
|
|
$ (17,105)
|
|
$
(9,995)
|
|
$
(4,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.17%
|
|
0.27%
|
|
0.80%
|
|
0.51%
|
|
0.26%
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.31%
|
|
0.29%
|
|
0.41%
|
|
0.51%
|
|
0.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED (F-8)
|
|
|
|
|
June 30,
2020
|
|
September 30,
2020
|
|
December 31,
2020
|
|
March 31,
2021
|
|
June 30,
2021
|
|
(in
thousands)
|
|
Balance
|
|
Percent of Total
Loans
|
|
Balance
|
|
Percent of Total
Loans
|
|
Balance
|
|
Percent of Total
Loans
|
|
Balance
|
|
Percent of Total
Loans
|
|
Balance
|
|
Percent of Total
Loans
|
|
30-89 Days
delinquent
|
|
$
35,128
|
|
0.37%
|
|
$
27,626
|
|
0.31%
|
|
$
16,310
|
|
0.20%
|
|
$
28,565
|
|
0.37%
|
|
$
15,483
|
|
0.22%
|
|
90+ Days delinquent
and still accruing
|
|
13,056
|
|
0.14%
|
|
12,876
|
|
0.14%
|
|
11,450
|
|
0.14%
|
|
6,124
|
|
0.08%
|
|
3,129
|
|
0.04%
|
|
Total accruing
delinquent loans
|
|
48,184
|
|
0.51%
|
|
40,502
|
|
0.45%
|
|
27,760
|
|
0.34%
|
|
34,689
|
|
0.45%
|
|
18,612
|
|
0.26%
|
|
Non-accruing
loans
|
|
44,884
|
|
0.48%
|
|
47,390
|
|
0.53%
|
|
64,948
|
|
0.80%
|
|
55,817
|
|
0.73%
|
|
47,605
|
|
0.66%
|
|
Total delinquent and
non-accruing loans
|
|
$
93,068
|
|
0.99%
|
|
$
87,892
|
|
0.98%
|
|
$
92,708
|
|
1.14%
|
|
$
90,506
|
|
1.18%
|
|
$
66,217
|
|
0.92%
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED -
(F-9)
|
|
|
|
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March 31,
|
|
June 30,
|
|
(in
thousands)
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
Total revenue from
continuing operations
|
(A)
|
$
94,971
|
|
$
97,018
|
|
$
99,036
|
|
$
101,286
|
|
$
97,404
|
|
Adj: Net securities
losses/(gains) (1)
|
|
(822)
|
|
1,017
|
|
(2,405)
|
|
31
|
|
484
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
-
|
|
-
|
|
(1,240)
|
|
-
|
|
-
|
|
Total adjusted
revenue (2)
|
(B)
|
$
94,149
|
|
$
98,035
|
|
$
95,391
|
|
$
101,317
|
|
$
97,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense from continuing operations
|
(C)
|
$
624,275
|
|
$
72,843
|
|
$
71,796
|
|
$
78,154
|
|
$
68,872
|
|
Less: Merger,
restructuring and other expense
|
|
-
|
|
(5,316)
|
|
(523)
|
|
(3,486)
|
|
(6)
|
|
Less: Goodwill
impairment
|
|
(553,762)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adjusted non-interest
expense (2)
|
(D)
|
$
70,513
|
|
$
67,527
|
|
$
71,273
|
|
$
74,668
|
|
$
68,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax,
pre-provision net revenue (PPNR) from continuing
operations
|
(A-C)
|
$
(529,304)
|
|
$
24,175
|
|
$
27,240
|
|
$
23,132
|
|
$
28,532
|
|
Adjusted pre-tax,
pre-provision net revenue (PPNR) (2)
|
(B-D)
|
23,636
|
|
30,508
|
|
24,118
|
|
26,649
|
|
29,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
(549,381)
|
|
$
21,225
|
|
$
15,009
|
|
$
13,031
|
|
$
21,636
|
|
Adj: Net securities
losses/(gains) (1)
|
|
(822)
|
|
1,017
|
|
(2,405)
|
|
31
|
|
484
|
|
Adj: Goodwill
impairment
|
|
553,762
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
-
|
|
-
|
|
(1,240)
|
|
-
|
|
-
|
|
Adj: Restructuring
expense and other expense
|
|
-
|
|
5,316
|
|
523
|
|
3,486
|
|
6
|
|
Adj: Loss from
discontinued operations before income taxes
|
|
8,635
|
|
2,477
|
|
5,114
|
|
-
|
|
-
|
|
Adj: Income taxes
benefit/(expense)
|
|
(18,658)
|
|
(3,611)
|
|
(2,939)
|
|
(533)
|
|
(22)
|
|
Total adjusted
income/(loss) (2)
|
(E)
|
$
(6,464)
|
|
$
26,424
|
|
$
14,062
|
|
$
16,015
|
|
$
22,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
$
13,419
|
|
$
12,660
|
|
$
12,446
|
|
$
12,468
|
|
$
12,417
|
|
Total average
shareholders'
equity
|
(G)
|
1,675
|
|
1,133
|
|
1,150
|
|
1,159
|
|
1,174
|
|
Total average
tangible shareholders' equity
(2)(3)
|
(H)
|
1,085
|
|
1,091
|
|
1,110
|
|
1,125
|
|
1,141
|
|
Total average
tangible common shareholders' equity
(2)(3)
|
(I)
|
1,064
|
|
1,071
|
|
1,103
|
|
1,125
|
|
1,141
|
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(J)
|
1,122
|
|
1,138
|
|
1,153
|
|
1,142
|
|
1,143
|
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(K)
|
1,101
|
|
1,118
|
|
1,153
|
|
1,142
|
|
1,143
|
|
Total tangible
assets, period-end (2)(3)
|
(L)
|
13,021
|
|
12,574
|
|
12,803
|
|
12,724
|
|
12,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(M)
|
50,192
|
|
50,306
|
|
50,833
|
|
50,988
|
|
50,453
|
|
Average diluted
shares outstanding (thousands)
|
(N)
|
50,246
|
|
50,329
|
|
50,355
|
|
50,565
|
|
50,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings/(loss)
per common share, diluted(2)
|
|
$
(10.93)
|
|
$
0.42
|
|
$
0.30
|
|
$
0.26
|
|
$
0.43
|
|
Adjusted
earnings/(loss) per common share, diluted (2)
|
(E/N)
|
(0.13)
|
|
0.53
|
|
0.28
|
|
0.32
|
|
0.44
|
|
Tangible book value
per common share, period-end (2)
|
(K/M)
|
21.94
|
|
22.22
|
|
22.68
|
|
22.39
|
|
22.66
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
8.61
|
|
9.05
|
|
9.01
|
|
8.98
|
|
9.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
equity
|
|
(131.17)
|
%
|
7.50
|
%
|
5.22
|
%
|
4.50
|
%
|
7.37
|
%
|
Adjusted return on
equity (2)
|
(E/G)
|
(1.54)
|
|
9.33
|
|
4.89
|
|
5.53
|
|
7.53
|
|
Return on tangible
common equity (2)(5)
|
|
(206.08)
|
|
8.32
|
|
5.85
|
|
4.98
|
|
7.92
|
|
Adjusted return on
tangible common equity (2)(5)
|
(E+Q)/(I)
|
(2.05)
|
|
10.27
|
|
5.50
|
|
6.04
|
|
8.08
|
|
GAAP return on
assets
|
|
(16.38)
|
|
0.67
|
|
0.48
|
|
0.42
|
|
0.70
|
|
Adjusted return on
assets(2)
|
|
(0.19)
|
|
0.84
|
|
0.45
|
|
0.51
|
|
0.71
|
|
PPNR from continuing
operations/assets (2)
|
|
(15.78)
|
|
0.76
|
|
0.88
|
|
0.74
|
|
0.92
|
|
Adjusted PPNR/assets
(2)
|
|
0.71
|
|
0.97
|
|
0.78
|
|
0.85
|
|
0.93
|
|
Efficiency ratio
(2)(6)
|
(D-Q)/(B+O+R)
|
71.01
|
|
65.39
|
|
71.03
|
|
71.32
|
|
67.82
|
|
Net interest margin,
FTE
|
|
2.62
|
|
2.61
|
|
2.61
|
|
2.62
|
|
2.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(O)
|
$
1,379
|
|
$
1,377
|
|
$
1,334
|
|
$
41
|
|
$
79
|
|
Non-interest income
charge on tax-credit investments (8)
|
(P)
|
(1,097)
|
|
(1,090)
|
|
(971)
|
|
(33)
|
|
(175)
|
|
Net income on
tax-credit investments
|
(O+P)
|
282
|
|
287
|
|
363
|
|
9
|
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
$
1,558
|
|
$
1,530
|
|
$
1,513
|
|
$
1,319
|
|
$
1,297
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
1,580
|
|
1,512
|
|
1,485
|
|
1,494
|
|
1,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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) Adjusted return
on tangible equity is computed by dividing the total adjusted
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 adjusted tangible non-interest
expense by the sum of total net interest income on a fully taxable
equivalent basis and total adjusted 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 Six
Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
(in
thousands)
|
|
|
2020
|
|
2021
|
|
Total revenue from
continuing operations
|
(A)
|
|
$
187,035
|
|
$
198,690
|
|
Adj: Net securities
losses (1)
|
|
|
8,908
|
|
515
|
|
Total adjusted
revenue (2)
|
(B)
|
|
$
195,943
|
|
$
199,205
|
|
|
|
|
|
|
|
|
Total non-interest
expense from continuing operations
|
(C)
|
|
$
695,600
|
|
$
147,026
|
|
Less: Merger,
restructuring and other expense
|
|
|
-
|
|
(3,492)
|
|
Less: Goodwill
impairment
|
|
|
(553,762)
|
|
-
|
|
Adjusted non-interest
expense (2)
|
(D)
|
|
$
141,838
|
|
$
143,534
|
|
|
|
|
|
|
|
|
Pre-tax,
pre-provision net revenue (PPNR) from continuing
operations
|
(A-C)
|
|
$
(508,565)
|
|
$
51,664
|
|
Adjusted pre-tax,
pre-provision net revenue (PPNR) (2)
|
(B-D)
|
|
54,105
|
|
55,671
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
|
$
(569,251)
|
|
$
34,667
|
|
Adj: Net securities
losses (1)
|
|
|
8,908
|
|
515
|
|
Adj: Goodwill
impairment
|
|
|
553,762
|
|
-
|
|
Adj: Restructuring
expense and other expense
|
|
|
-
|
|
3,492
|
|
Adj: Loss from
discontinued operations before income taxes
|
|
|
19,264
|
|
-
|
|
Adj: Income taxes
benefit/(expense)
|
|
|
(22,792)
|
|
(555)
|
|
Total adjusted
income/(loss) (2)
|
(E)
|
|
$
(10,109)
|
|
$
38,119
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$
13,173
|
|
$
12,442
|
|
Total average
shareholders'
equity
|
(G)
|
|
1,705
|
|
1,166
|
|
Total average
tangible shareholders' equity
(2)(3)
|
(H)
|
|
1,110
|
|
1,133
|
|
Total average
tangible common shareholders' equity
(2)(3)
|
(I)
|
|
1,090
|
|
1,133
|
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(J)
|
|
1,122
|
|
1,143
|
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(K)
|
|
1,101
|
|
1,143
|
|
Total tangible
assets, period-end (2)(3)
|
(L)
|
|
13,021
|
|
12,241
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(M)
|
|
50,192
|
|
50,453
|
|
Average diluted
shares outstanding (thousands)
|
(N)
|
|
50,228
|
|
50,588
|
|
|
|
|
|
|
|
|
GAAP earnings/(loss)
per common share, diluted(2)
|
|
|
$
(11.33)
|
|
$
0.69
|
|
Adjusted
earnings/(loss) per common share, diluted (2)
|
(E/N)
|
|
(0.20)
|
|
0.75
|
|
Tangible book value
per common share, period-end (2)
|
(K/M)
|
|
21.94
|
|
22.66
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
|
8.61
|
|
9.34
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
GAAP return on
equity
|
|
|
(66.79)
|
%
|
5.95
|
%
|
Adjusted return on
equity (2)
|
(E/G)
|
|
(1.19)
|
|
6.54
|
|
Return on tangible
common equity (2)(5)
|
|
|
(104.08)
|
|
6.46
|
|
Adjusted return on
tangible common equity (2)(5)
|
(E+Q)/(I)
|
|
(1.48)
|
|
7.07
|
|
GAAP return on
assets
|
|
|
(8.67)
|
|
0.56
|
|
Adjusted return on
assets(2)
|
|
|
(0.15)
|
|
0.61
|
|
PPNR from continuing
operations/assets (2)
|
|
|
(7.72)
|
|
0.83
|
|
Adjusted PPNR/assets
(2)
|
|
|
0.82
|
|
0.89
|
|
Efficiency ratio
(2)(6)
|
(D-Q)/(B+O+R)
|
|
68.89
|
|
69.60
|
|
Net interest margin,
FTE
|
|
|
2.82
|
|
2.62
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(O)
|
|
$
1,987
|
|
$
120
|
|
Non-interest income
charge on tax-credit investments (8)
|
(P)
|
|
(1,583)
|
|
(208)
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
404
|
|
(88)
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
3,138
|
|
$
2,616
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
3,404
|
|
3,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net securities
(gains)/losses 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 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) Adjusted return
on tangible equity is computed by dividing the total adjusted
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 adjusted tangible non-interest
expense by the sum of total net interest income on a fully taxable
equivalent basis and total adjusted 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.