BOSTON,
April 20, 2022
/PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today
reported that first quarter earnings per share (EPS)
increased year-over-year by 62% to $0.42 in 2022 from $0.26 in 2021. The non-GAAP measure of adjusted
EPS increased by 37% to $0.43 from
$0.32. Earnings benefited from loan
growth in 2022 together with a release of the allowance for credit
losses, reflecting improved loan performance expectations. Compared
to the fourth quarter of 2021, first quarter EPS was unchanged at
$0.42 and adjusted EPS increased by
4% to $0.43 from $0.42.
FIRST QUARTER FINANCIAL HIGHLIGHTS (Non-GAAP measures are
reconciled on page F-9).
- 62% year-over-year increase in EPS
- 6% increase in total loans quarter-over-quarter
- 2.61% net interest margin, stable over the last five
quarters
- $4 million benefit to the credit
loss provision due to a release of the credit loss allowance
- 0.26% non-performing assets/assets – fifth sequential quarterly
improvement
- 6% reduction in period-end shares outstanding year-over-year
reflecting stock buybacks
CEO Nitin Mhatre stated, "Our
strong growth in loan balances was driven by a significant increase
in new loan originations that benefited from higher productivity of
our existing bankers, recruitment of experienced frontline bankers
and new partnership channels in the second half of 2021. Our credit
metrics remained strong and our earnings benefited from a release
of the credit loss allowance, which continues to provide
comparatively strong coverage of the loan portfolio."
"We remain well positioned to benefit from the expected rising
rate environment. During the first quarter, Berkshire announced the approval of a new
program to repurchase approximately $140
million in common shares and correspondingly total
outstanding shares decreased by 2% during the quarter."
Mr. Mhatre concluded, "Berkshire Bank recently announced an
expanded partnership with fintech Narmi to create a best-in-class
digital banking experience for consumers and small
businesses. We continue to promote employees from within the
organization and bring on board knowledgeable bankers to deepen
long-term relationships with our customers. I'm also pleased that
our collective efforts to support our customers and communities
continue to gain recognition as we were recently named by Newsweek
as one of America's Most Trustworthy Companies and placed among the
top 10 banks nationally. Our team has gotten off to a strong start
in 2022 as we execute on our BEST plan in pursuit of our vision to
be a high-performing, leading socially responsible community bank
in New England and beyond."
RESULTS OF OPERATIONS
Earnings: First quarter GAAP earnings per share
totaled $0.42, unchanged from the
prior quarter and increased year-over-year by 62% from $0.26. The non-GAAP measure of adjusted EPS
totaled $0.43, increasing
quarter-over-quarter by 4% from $0.42
and year-over-year by 37% from $0.32
per share. First quarter adjustments to earnings consisted
primarily of branch restructuring expenses in 2021 and unrealized
equity securities losses in 2022. Year-over-year earnings
improvement also resulted from a benefit in 2022 to the provision
for credit losses on loans and as well as from share repurchases.
The first quarter 2022 return on tangible common equity measured
7.3% and the non-GAAP measure of adjusted return on tangible common
equity measured 7.5%.
Revenue: Net interest income was essentially
unchanged quarter-over quarter. Loan growth was weighted
towards the end of the quarter, with full benefit expected
beginning in the second quarter. Net interest income decreased by
8% year-over-year due primarily to lower loan balances during the
year 2021. The Company's net interest income is modeled to be
positively sensitive to the market forecast scenario of rising
interest rates.
Non-interest income excluding securities losses increased 5%
quarter-over-quarter including seasonal components. It decreased
18% year-over-year primarily due to the sale of insurance and
branch operations in the third quarter of 2021, and PPP loan
referral fees recorded in the first quarter of 2021.
Provision for Credit Losses on Loans: Berkshire recorded a $4
million benefit to the first quarter 2022 provision,
compared to a $3 million benefit in
the linked quarter and a $6.5 million
charge in the first quarter of 2021. The $4
million benefit resulted from a $7
million release of the credit loss allowance net of
$3 million in net loan charge-offs.
The Company also utilizes the non-GAAP financial measure of Pre-tax
Pre-Provision Net Revenue ("PPNR") to evaluate the results of
operations before the impact of the provision and tax expense. PPNR
measured $21 million in the most
recent quarter, and $22 million on a
non-GAAP adjusted basis.
Expense: First quarter 2022 non-interest expense was
down 1% quarter-over quarter and down 12% year-over-year including
the impact of operations sold in 2021. Full time equivalent staff
totaled 1,333 positions at period-end, compared to 1,319 positions
at the start of the year. The effective tax rate was 20% in the
most recent quarter, which was unchanged from the tax rate for the
year 2021.
BALANCE SHEET (references are to period-end balances
unless otherwise stated)
Summary: Total assets increased
quarter-over-quarter by $0.5 billion,
or 5%, to $12.1 billion reflecting
loan growth. Total shareholders' equity decreased
quarter-over-quarter by $89 million,
or 7%, due primarily to a $75 million
reduction in accumulated other comprehensive income reflecting
lower bond valuations as a result of the increase in interest rates
during the quarter. We anticipate that the Company's
strong capital and liquidity will position it for future targeted
loan growth and capital distributions which are integral elements
of its BEST strategic plan.
Loans: Total loans increased quarter-over-quarter
by $441 million, or 6% to
$7.27 billion at March 31, 2022. The largest increases were in
commercial real estate, asset based lending, and residential
mortgages. The Company has expanded its commercial and business
banking teams and is developing new sourcing channels for
residential mortgages and consumer loans in its markets to support
planned loan growth in 2022. Loans were down 5% year-over-year due
to the impact of refinancings and targeted runoff.
Asset Quality: Asset quality metrics remained
favorable and improving in the most recent quarter. Non-accruing
loans decreased by 16%, measuring 0.41% of period-end total loans.
Annualized net loan charge-offs measured 0.15% of average
loans, down from 0.29% for the year 2021. Accruing delinquent loans
declined to a near five quarter low of 0.28% of total loans. The
allowance for credit losses on loans decreased quarter-over-quarter
by $7 million to $99 million, measuring 1.37% of total loans,
which was a decrease from 1.55% at the start of the year.
Deposits and Borrowings: Period-end total deposits
increased by 6% quarter-over-quarter and 4% year-over-year. These
increases were concentrated in payroll deposits, which fluctuate
daily. Shifts in balances between the NOW and money market
categories also relate to payroll deposits. Total average deposits
increased 1% both compared to the linked quarter and compared to
the first quarter of 2021. The Company has been reducing higher
cost time deposits, including brokered deposits, which declined by
7% quarter-over-quarter and 28% year-over-year based on average
balances. Total average non-maturity deposits increased by 3%
quarter-over-quarter and 10% year-over-year. The first quarter
total cost of deposits decreased to 0.17%, compared to 0.19% in the
linked quarter and 0.36% in the prior year.
Equity: Shareholders' equity decreased by 7%
quarter-over-quarter and year-over-year. This reflected the
impact of share repurchases and a $75
million reduction in the most recent quarter reflecting the
lower fair value of the bond portfolio as a result of higher
interest rates. The ratio of equity/assets decreased
quarter-over- quarter to 9.0% from 10.2%. At quarter-end, book
value per share was $22.89 and the
non-GAAP measure of tangible book value per share was $22.30. These values decreased
quarter-over-quarter, but were not significantly changed
year-over-year.
ESG & CORPORATE RESPONSIBILITY
UPDATE
Berkshire Bank is committed to purpose-driven,
community-centered banking that enhances value for all stakeholders
as it pursues its vision of being a high-performing, leading
socially responsible community bank in New England and beyond.
Learn more about the steps Berkshire is taking
at berkshirebank.com/csr and in its most
recent Corporate Responsibility Report.
Key developments in the quarter include:
- Corporate Responsibility Report - Earlier this month,
the Company released its 2021 Corporate Responsibility Report,
Empowering Community Comebacks. The report highlights
Berkshire's performance on
environmental, social, and governance matters along with its
progress on its BEST Community Comeback. Detailed on the pages of
the report are examples of how the simple decision of where you
bank can have an outsized impact in your community.
- Standing with Ukraine:
Berkshire took several actions
along with its employees and customers in response to the ongoing
humanitarian crisis in Ukraine
including making a $50,000
contribution, through its Foundation, to the Ukrainian Federation
of America. In addition, Berkshire
is refunding outgoing wire transfer fees to individuals who are
sending money to family and non-profit organizations in
Ukraine; matching employee
contributions to non-profits working to aid in relief efforts; and
activating a virtual supply drive to provide critical supplies to
organizations working to assist in Ukraine and neighboring countries.
- Awards & Recognition: The Company was named to
Newsweek's list of America's Most Trusted Companies 2022 and ranked
#9 for banks. Earlier in the quarter Berkshire was also listed in Bloomberg's
Gender Equality Index and named a Best Place to Work for LGBTQ+
Equality by the Human Rights Campaign. Finally, Berkshire received a 2022 Communitas Award for
Leadership in Corporate Responsibility for its BEST Community
Comeback program recognizing its early progress on the multi-year
commitment.
- Current ESG Performance: The Company moved into the top
22% of leading ESG indexes in the U.S. for its Environmental,
Social and Governance (ESG) ratings. As of March 31, 2022 the Company received ratings of:
MSCI ESG- BBB; ISS ESG Quality Score - Environment: 3, Social: 1,
Governance: 3; and Bloomberg ESG Disclosure- 47.81. The Company is
also rated by Sustainalytics.
INVESTOR CONFERENCE CALL AND INVESTOR PRESENTATION
Berkshire will conduct a conference
call/webcast at 10:00 a.m. eastern
time on Wednesday, April 20, 2022 to discuss results for
the quarter and provide guidance about expected future
results. The Company will also place an investor presentation
at its website at ir.berkshirebank.com with additional
financial information and other information about the quarter.
Participants are encouraged to pre-register for the conference
call using the following link:
https://www.incommglobalevents.com/registration/q4inc/10475/berkshire-hills-bancorp-q1-earnings-release-conference-call/.
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 relations
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
844-200-6205 and using participant access code: 647451.
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 866-813-9403 and using access
code: 478827. 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 a leading socially responsible omni-channel
community bank in New England and beyond. Berkshire Bank provides
business and consumer banking, mortgage, wealth management, and
investment services. Headquartered in Boston, Berkshire has approximately $12.1 billion in assets and operates 105 branch
offices in New England and New
York, and is a member of the Bloomberg Gender-Equality
Index. To learn more, call 800-773-5601 or follow us on Facebook,
Twitter, Instagram, and LinkedIn.
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. 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 page F-9 in the
accompanying financial tables. In all cases, it should be
understood that non-GAAP per share measures do not depict amounts
that accrue directly to the benefit of shareholders.
The Company utilizes the non-GAAP measure of 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, other gains/losses,
merger costs, restructuring costs, goodwill impairment, and
discontinued operations. In 2021, the Company recorded a third
quarter net gain of $52 million on
the sale of the Company's insurance subsidiary and the Mid-Atlantic
branch operations. Expense adjustments in the first quarter 2021
were primarily related to branch consolidations. Third quarter 2021
adjustments included Federal Home Loan Bank borrowings prepayment
costs. They also included other restructuring charges for
efficiency initiatives in operations areas including write-downs on
real estate moved to held for sale and severance related to staff
reductions. The fourth quarter 2021 revenue adjustment was
primarily related to trailing revenue on a previously reported
sale, and the expense adjustment was due primarily to branch
restructuring costs. The revenue adjustment in the first quarter of
2022 was due to an unrealized loss in equity mutual funds.
The Company utilizes 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 & Communications
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
Income
|
F-5
|
Statements of Income
(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)
|
BERKSHIRE HILLS
BANCORP, INC.
|
SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED - (F-1)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March
31,
|
|
|
|
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
common share, diluted
|
$
0.26
|
|
$
0.43
|
|
$
1.31
|
|
$
0.42
|
|
$
0.42
|
|
|
|
Adjusted earnings per
common share, diluted (2)
|
0.32
|
|
0.44
|
|
0.53
|
|
0.42
|
|
0.43
|
|
|
|
Net income,
(thousands)
|
13,031
|
|
21,636
|
|
63,749
|
|
20,248
|
|
20,196
|
|
|
|
Adjusted net
income,(thousands)(2)
|
16,015
|
|
22,104
|
|
25,695
|
|
20,172
|
|
20,789
|
|
|
|
Total common shares
outstanding, period-end (thousands)
|
50,988
|
|
50,453
|
|
48,657
|
|
48,667
|
|
47,792
|
|
|
|
Average diluted
shares, (thousands)
|
50,565
|
|
50,608
|
|
48,744
|
|
48,340
|
|
48,067
|
|
|
|
Total book value per
common share, (end of period)
|
23.05
|
|
23.30
|
|
24.21
|
|
24.30
|
|
22.89
|
|
|
|
Tangible book value
per common share, (end of period) (2)
|
22.39
|
|
22.66
|
|
23.58
|
|
23.69
|
|
22.30
|
|
|
|
Dividends per common
share
|
0.12
|
|
0.12
|
|
0.12
|
|
0.12
|
|
0.12
|
|
|
|
Full-time equivalent
staff
|
1,467
|
|
1,417
|
|
1,333
|
|
1,319
|
|
1,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
4.50
|
%
|
7.37
|
%
|
22.18
|
%
|
6.86
|
%
|
6.79
|
%
|
|
|
Adjusted return on
equity (2)
|
5.53
|
|
7.53
|
|
8.94
|
|
6.83
|
|
6.99
|
|
|
|
Return on tangible
common equity (2)
|
4.98
|
|
7.92
|
|
23.14
|
|
7.37
|
|
7.29
|
|
|
|
Adjusted return on
tangible common equity (2)
|
6.04
|
|
8.08
|
|
9.53
|
|
7.34
|
|
7.49
|
|
|
|
Return on
assets
|
0.42
|
|
0.70
|
|
2.14
|
|
0.71
|
|
0.70
|
|
|
|
Adjusted return on
assets (2)
|
0.51
|
|
0.71
|
|
0.86
|
|
0.71
|
|
0.72
|
|
|
|
Net interest margin,
fully taxable equivalent (FTE) (4)(5)
|
2.62
|
|
2.62
|
|
2.56
|
|
2.60
|
|
2.61
|
|
|
|
Efficiency ratio
(2)
|
71.32
|
|
67.82
|
|
68.76
|
|
71.98
|
|
72.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(in millions, end of period)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
12,757
|
|
$
12,273
|
|
$
11,846
|
|
$
11,555
|
|
$
12,097
|
|
|
|
Total earning
assets
|
12,071
|
|
11,571
|
|
11,145
|
|
10,899
|
|
11,401
|
|
|
|
Total
loans
|
|
7,659
|
|
7,233
|
|
6,836
|
|
6,826
|
|
7,267
|
|
|
|
Total
deposits
|
|
10,244
|
|
9,914
|
|
10,365
|
|
10,069
|
|
10,699
|
|
|
|
Loans/deposits
(%)
|
75
|
%
|
73
|
%
|
66
|
%
|
68
|
%
|
68
|
%
|
|
|
Total shareholders'
equity
|
$
1,175
|
|
$
1,175
|
|
$
1,178
|
|
$
1,182
|
|
$
1,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
124
|
|
$
119
|
|
$
113
|
|
$
106
|
|
$
99
|
|
|
|
Net charge-offs,
(millions)
|
(10)
|
|
(5)
|
|
(2)
|
|
(4)
|
|
(3)
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.51
|
%
|
0.26
|
%
|
0.12
|
%
|
0.23
|
%
|
0.15
|
%
|
|
|
Provision
expense/(income), (millions)
|
$
7
|
|
$
-
|
|
$
(4)
|
|
$
(3)
|
|
$
(4)
|
|
|
|
Non-performing
assets, (millions)
|
58
|
|
49
|
|
39
|
|
37
|
|
32
|
|
|
|
Non-performing
loans/total loans
|
0.73
|
%
|
0.66
|
%
|
0.54
|
%
|
0.52
|
%
|
0.41
|
%
|
|
|
Allowance for credit
losses/non-performing loans
|
222
|
|
250
|
|
304
|
|
300
|
|
335
|
|
|
|
Allowance for credit
losses/total loans
|
1.62
|
|
1.65
|
|
1.65
|
|
1.55
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital to risk weighted assets(6)
|
14.2
|
%
|
14.3
|
%
|
15.3
|
%
|
15.0
|
%
|
14.0
|
%
|
|
|
Tier 1 capital
leverage ratio(6)
|
9.5
|
|
9.5
|
|
9.9
|
|
10.5
|
|
10.3
|
|
|
|
Tangible common
shareholders' equity/tangible assets(2)
|
9.0
|
|
9.3
|
|
9.7
|
|
10.0
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliations of
non-GAAP financial measures, including all references to adjusted
and tangible amounts, appear on page F-9.
|
|
|
(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 page F-9 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: 0.05%, 0.08%, 0.06%,
0.05%, 0.03%.
|
|
|
(6)
|
Presented as
projected for March 31, 2022 and actual for the remaining
periods.
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED - (F-2)
|
|
March 31,
|
December
31,
|
March
31,
|
|
(in
thousands)
|
2021
|
2021
|
2022
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
81,285
|
$
109,350
|
$
151,814
|
|
Short-term
investments
|
1,818,323
|
1,518,457
|
1,455,437
|
|
Total cash and cash
equivalents
|
1,899,608
|
1,627,807
|
1,607,251
|
|
|
|
|
|
|
Trading
security
|
9,350
|
8,354
|
7,798
|
|
Marketable equity
securities, at fair value
|
15,801
|
15,453
|
14,719
|
|
Securities available
for sale, at fair value
|
1,627,330
|
1,877,585
|
2,032,575
|
|
Securities held to
maturity, at amortized cost
|
610,637
|
636,503
|
612,174
|
|
Federal Home Loan
Bank stock and other restricted securities
|
28,680
|
10,800
|
10,829
|
|
Total
securities
|
2,291,798
|
2,548,695
|
2,678,095
|
|
Less: Allowance for
credit losses on investment securities
|
(111)
|
(105)
|
(99)
|
|
Net
securities
|
2,291,687
|
2,548,590
|
2,677,996
|
|
|
|
|
|
|
Loans held for
sale
|
18,377
|
6,110
|
300
|
|
|
|
|
|
|
Total
loans
|
7,658,778
|
6,825,847
|
7,267,323
|
|
Less: Allowance for
credit losses on loans
|
(123,800)
|
(106,094)
|
(99,475)
|
|
Net loans
|
7,534,978
|
6,719,753
|
7,167,848
|
|
|
|
|
|
|
Premises and
equipment, net
|
108,538
|
94,383
|
92,971
|
|
Other real estate
owned
|
149
|
-
|
-
|
|
Goodwill and other
intangible assets
|
33,500
|
29,619
|
28,332
|
|
Other
assets
|
566,809
|
524,074
|
518,322
|
|
Assets held for sale
(1)
|
303,697
|
4,577
|
3,988
|
|
Total
assets
|
$
12,757,343
|
$
11,554,913
|
$
12,097,008
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Demand
deposits
|
$
2,750,393
|
$
3,008,461
|
$
3,020,568
|
|
NOW and other
deposits
|
1,856,988
|
976,401
|
2,546,799
|
|
Money market
deposits
|
2,486,261
|
3,293,526
|
2,469,042
|
|
Savings
deposits
|
1,047,506
|
1,111,625
|
1,133,877
|
|
Time
deposits
|
2,103,222
|
1,678,940
|
1,528,922
|
|
Total
deposits
|
10,244,370
|
10,068,953
|
10,699,208
|
|
|
|
|
|
|
Senior
borrowings
|
351,354
|
13,331
|
14,563
|
|
Subordinated
borrowings
|
97,338
|
97,513
|
97,569
|
|
Total
borrowings
|
448,692
|
110,844
|
112,132
|
|
|
|
|
|
|
Other
liabilities
|
229,832
|
192,681
|
191,807
|
|
Liabilities held for
sale (1)
|
659,310
|
-
|
-
|
|
Total
liabilities
|
11,582,204
|
10,372,478
|
11,003,147
|
|
|
|
|
|
|
Preferred
shareholders' equity
|
-
|
-
|
-
|
|
Common shareholders'
equity
|
1,175,139
|
1,182,435
|
1,093,861
|
|
Total shareholders'
equity
|
1,175,139
|
1,182,435
|
1,093,861
|
|
Total liabilities and
shareholders' equity
|
$
12,757,343
|
$
11,554,913
|
$
12,097,008
|
|
(1) For March 31,
2021, balance includes loans and deposits held for sale relating to
the Mid-Atlantic region branch sale that closed in the third quarter of 2021.
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED LOAN
& DEPOSIT ANALYSIS - UNAUDITED - (F-3)
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth %
|
(in
millions)
|
December 31, 2021
Balance
|
March 31, 2022
Balance
|
Quarter ended
March 31, 2022
|
|
|
|
|
|
Total commercial real
estate
|
$
3,598
|
$
3,764
|
5
|
%
|
Commercial and
industrial loans
|
1,300
|
1,381
|
6
|
|
Paycheck Protection
Program (PPP) Loans
|
30
|
16
|
(47)
|
|
Total commercial
loans
|
4,928
|
5,161
|
5
|
|
|
|
|
|
|
Total residential
mortgages
|
1,392
|
1,567
|
13
|
|
|
|
|
|
|
Home
equity
|
253
|
245
|
(3)
|
|
Auto and
other
|
253
|
294
|
16
|
|
Total consumer
loans
|
506
|
539
|
7
|
|
Total
loans
|
$
6,826
|
$
7,267
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
Growth %
|
(in
millions)
|
December 31, 2021
Balance
|
March 31, 2022
Balance
|
Quarter ended
March 31, 2022
|
Non-interest
bearing
|
$
3,008
|
$
3,020
|
-
|
%
|
NOW and
other
|
976
|
2,547
|
161
|
|
Money
market
|
3,294
|
2,469
|
(25)
|
|
Savings
|
1,112
|
1,134
|
2
|
|
Time
deposits
|
1,679
|
1,529
|
(9)
|
|
Total deposits
(1)
|
$
10,069
|
$
10,699
|
6
|
%
|
(1) Included in total
deposits are brokered deposits of $164.8 million and $228.1 million
at March 31,2022 and December 31,
2021, respectively.
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED - (F-4)
|
|
Three Months
Ended
|
|
|
March 31,
|
|
(in thousands,
except per share data)
|
2022
|
2021
|
|
Interest
income
|
$ 74,823
|
$ 88,153
|
|
Interest
expense
|
5,760
|
13,060
|
|
Net interest income,
not FTE
|
69,063
|
75,093
|
|
Non-interest
income
|
|
|
|
Deposit related
fees
|
7,351
|
7,126
|
|
Loan fees and
revenue
|
8,265
|
10,246
|
|
Insurance commissions
and fees
|
-
|
3,130
|
|
Wealth management
fees
|
2,625
|
2,772
|
|
Mortgage banking
fees
|
19
|
802
|
|
Other
|
3,166
|
2,148
|
|
Total non-interest
income excluding (losses)
|
21,426
|
26,224
|
|
Securities (losses),
net
|
(745)
|
(31)
|
|
Total non-interest
income
|
20,681
|
26,193
|
|
Total net
revenue
|
89,744
|
101,286
|
|
Total net revenue
excluding (losses)
|
90,489
|
101,317
|
|
|
|
|
|
Provision (benefit)
for credit losses
|
(4,000)
|
6,500
|
|
Non-interest
expense
|
|
|
|
Compensation and
benefits
|
37,521
|
38,735
|
|
Occupancy and
equipment
|
10,067
|
11,024
|
|
Technology and
communications
|
8,527
|
8,593
|
|
Professional
services
|
2,692
|
6,614
|
|
Other
expenses
|
9,725
|
9,702
|
|
Merger, restructuring
and other non-operating expenses
|
18
|
3,486
|
|
Total non-interest
expense
|
68,550
|
78,154
|
|
Total non-interest
expense excluding merger, restructuring and other
|
68,532
|
74,668
|
|
|
|
|
|
Income before income
taxes
|
$ 25,194
|
$ 16,632
|
|
Income tax
expense
|
4,998
|
3,601
|
|
Net
income
|
$
20,196
|
$
13,031
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.42
|
$
0.26
|
|
Diluted earnings
per common share
|
$
0.42
|
$
0.26
|
|
|
|
|
|
Weighted average
shares
outstanding:
|
|
|
|
Basic
|
47,668
|
50,330
|
|
Diluted
|
48,067
|
50,565
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED -
(F-5)
|
|
|
|
|
|
|
|
March 31,
|
June 30,
|
Sept. 30,
|
Dec. 31,
|
March 31,
|
(in thousands,
except per share data)
|
2021
|
2021
|
2021
|
2021
|
2022
|
Interest
income
|
$ 88,153
|
$ 85,364
|
$ 79,688
|
$ 75,860
|
$ 74,823
|
Interest
expense
|
13,060
|
9,971
|
8,320
|
6,548
|
5,760
|
Net interest income,
not FTE
|
75,093
|
75,393
|
71,368
|
69,312
|
69,063
|
Non-interest
income
|
|
|
|
|
|
Deposit related
fees
|
7,126
|
7,508
|
7,657
|
7,522
|
7,351
|
Loan fees and
revenue
|
10,246
|
7,431
|
8,285
|
9,098
|
8,265
|
Insurance commissions
and fees
|
3,130
|
2,292
|
1,581
|
-
|
-
|
Wealth management
fees
|
2,772
|
2,519
|
2,653
|
2,586
|
2,625
|
Mortgage banking
fees
|
802
|
534
|
461
|
259
|
19
|
Other
|
2,148
|
2,211
|
1,279
|
993
|
3,166
|
Total non-interest
income excluding (losses)/gains
|
26,224
|
22,495
|
21,916
|
20,458
|
21,426
|
Securities (losses),
net
|
(31)
|
(484)
|
(166)
|
(106)
|
(745)
|
Gain on sale of
business operations and assets, net
|
-
|
-
|
51,885
|
1,057
|
-
|
Total non-interest
income
|
26,193
|
22,011
|
73,635
|
21,409
|
20,681
|
Total net
revenue
|
101,286
|
97,404
|
145,003
|
90,721
|
89,744
|
Total net revenue
excluding (losses)/gains
|
101,317
|
97,888
|
93,284
|
89,770
|
90,489
|
|
|
|
|
|
|
Provision (benefit)
for credit losses
|
6,500
|
-
|
(4,000)
|
(3,000)
|
(4,000)
|
Non-interest
expense
|
|
|
|
|
|
Compensation and
benefits
|
38,735
|
36,970
|
37,068
|
37,816
|
37,521
|
Occupancy and
equipment
|
11,024
|
10,599
|
10,421
|
9,738
|
10,067
|
Technology and
communications
|
8,593
|
8,214
|
8,397
|
8,599
|
8,527
|
Professional
services
|
6,614
|
3,701
|
3,180
|
2,365
|
2,692
|
Other
expenses
|
9,702
|
9,382
|
8,969
|
10,025
|
9,725
|
Merger, restructuring
and other non-operating expenses
|
3,486
|
6
|
1,425
|
864
|
18
|
Total non-interest
expense
|
78,154
|
68,872
|
69,460
|
69,407
|
68,550
|
Total non-interest
expense excluding merger, restructuring and other
|
74,668
|
68,866
|
68,035
|
68,543
|
68,532
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$ 16,632
|
$ 28,532
|
$ 79,543
|
$ 24,314
|
$ 25,194
|
Income tax
expense
|
3,601
|
6,896
|
15,794
|
4,066
|
4,998
|
Net
income
|
$
13,031
|
$
21,636
|
$
63,749
|
$
20,248
|
$
20,196
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
0.26
|
$
0.43
|
$
1.31
|
$
0.42
|
$
0.42
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
50,330
|
50,321
|
48,395
|
47,958
|
47,668
|
Diluted
|
50,565
|
50,608
|
48,744
|
48,340
|
48,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
AVERAGE BALANCES
AND AVERAGE YIELDS AND COSTS - UNAUDITED - (F-6)
|
|
|
|
March 31,
2021
|
June 30,
2021
|
Sept. 30,
2021
|
Dec. 31,
2021
|
March 31,
2022
|
|
(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
|
3,630
|
3.27
|
%
|
3,625
|
3.46
|
%
|
3,577
|
3.40
|
%
|
3,569
|
3.49
|
%
|
3,651
|
3.35
|
%
|
Commercial and
industrial loans
|
1,865
|
4.62
|
|
1,605
|
4.74
|
|
1,370
|
4.78
|
|
1,278
|
4.37
|
|
1,373
|
4.14
|
|
Residential
mortgages
|
1,740
|
3.71
|
|
1,604
|
3.79
|
|
1,499
|
3.65
|
|
1,403
|
3.82
|
|
1,436
|
3.56
|
|
Consumer
loans
|
634
|
3.79
|
|
582
|
3.80
|
|
545
|
3.95
|
|
516
|
3.96
|
|
514
|
4.24
|
|
Total loans
(1)
|
7,869
|
3.73
|
|
7,416
|
3.84
|
|
6,991
|
3.77
|
|
6,766
|
3.76
|
|
6,974
|
3.61
|
|
Securities
(2)
|
2,195
|
2.36
|
|
2,259
|
2.17
|
|
2,312
|
2.09
|
|
2,367
|
2.04
|
|
2,649
|
1.95
|
|
Short-term
investments and loans held for sale
|
1,351
|
0.13
|
|
1,750
|
0.10
|
|
1,762
|
0.17
|
|
1,609
|
0.17
|
|
1,202
|
0.17
|
|
Mid-Atlantic region
loans held for sale
|
295
|
4.09
|
|
269
|
3.96
|
|
155
|
3.82
|
|
-
|
-
|
|
-
|
-
|
|
Total earning
assets
|
11,710
|
3.07
|
|
11,694
|
2.96
|
|
11,220
|
2.86
|
|
10,742
|
2.84
|
|
10,825
|
2.82
|
|
Goodwill and other
intangible assets
|
34
|
|
|
33
|
|
|
31
|
|
|
30
|
|
|
29
|
|
|
Other
assets
|
724
|
|
|
690
|
|
|
674
|
|
|
655
|
|
|
639
|
|
|
Total
assets
|
12,468
|
|
|
12,417
|
|
|
11,925
|
|
|
11,427
|
|
|
11,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
other
|
1,325
|
0.15
|
%
|
1,389
|
0.07
|
%
|
1,316
|
0.05
|
%
|
1,331
|
0.05
|
%
|
1,456
|
0.04
|
%
|
Money
market
|
2,802
|
0.27
|
|
2,751
|
0.18
|
|
2,716
|
0.16
|
|
2,731
|
0.16
|
|
2,871
|
0.16
|
|
Savings
|
1,003
|
0.08
|
|
1,054
|
0.05
|
|
1,112
|
0.04
|
|
1,100
|
0.04
|
|
1,117
|
0.03
|
|
Time
|
2,266
|
1.12
|
|
2,013
|
0.94
|
|
1,893
|
0.86
|
|
1,750
|
0.80
|
|
1,624
|
0.71
|
|
Total
interest-bearing deposits
|
7,396
|
0.48
|
|
7,207
|
0.35
|
|
7,037
|
0.31
|
|
6,912
|
0.28
|
|
7,068
|
0.24
|
|
Borrowings
(3)
|
511
|
2.78
|
|
392
|
3.12
|
|
263
|
3.89
|
|
121
|
5.68
|
|
122
|
5.21
|
|
Mid-Atlantic region
interest-bearing deposits
|
518
|
0.60
|
|
517
|
0.51
|
|
306
|
0.51
|
|
-
|
-
|
|
-
|
-
|
|
Total
interest-bearing liabilities
|
8,425
|
0.63
|
|
8,116
|
0.49
|
|
7,606
|
0.43
|
|
7,033
|
0.37
|
|
7,190
|
0.32
|
|
Non-interest-bearing
demand deposits
|
2,537
|
|
|
2,787
|
|
|
2,901
|
|
|
3,038
|
|
|
2,968
|
|
|
Other liabilities
(4)
|
347
|
|
|
340
|
|
|
269
|
|
|
175
|
|
|
146
|
|
|
Total
liabilities
|
11,309
|
|
|
11,243
|
|
|
10,776
|
|
|
10,246
|
|
|
10,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
1,159
|
|
|
1,174
|
|
|
1,149
|
|
|
1,181
|
|
|
1,189
|
|
|
Total shareholders'
equity
|
1,159
|
|
|
1,174
|
|
|
1,149
|
|
|
1,181
|
|
|
1,189
|
|
|
Total liabilities and
shareholders' equity
|
12,468
|
|
|
12,417
|
|
|
11,925
|
|
|
11,427
|
|
|
11,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
2.44
|
%
|
|
2.47
|
%
|
|
2.43
|
%
|
|
2.47
|
%
|
|
2.50
|
%
|
Net interest margin,
FTE (5)
|
|
2.62
|
|
|
2.62
|
|
|
2.56
|
|
|
2.60
|
|
|
2.61
|
|
Cost of
funds
|
|
0.48
|
|
|
0.36
|
|
|
0.31
|
|
|
0.26
|
|
|
0.23
|
|
Cost of
deposits
|
|
0.36
|
|
|
0.25
|
|
|
0.22
|
|
|
0.19
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
not FTE
|
75
|
|
|
75
|
|
|
71
|
|
|
69
|
|
|
69
|
|
|
Fully taxable
equivalent income adjustment
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Net Interest
Income, FTE
|
77
|
|
|
77
|
|
|
73
|
|
|
71
|
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average PPP
loans
|
546
|
|
|
321
|
|
|
90
|
|
|
37
|
|
|
27
|
|
|
Average loans
excluding PPP loans
|
7,323
|
|
|
7,095
|
|
|
6,901
|
|
|
6,729
|
|
|
6,947
|
|
|
Total PPP loans,
end of period
|
444
|
|
|
173
|
|
|
46
|
|
|
30
|
|
|
16
|
|
|
Total loans excluding
PPP loans, end of period
|
7,215
|
|
|
7,059
|
|
|
6,790
|
|
|
6,796
|
|
|
7,251
|
|
|
PPP interest
income
|
7
|
|
|
5
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
7,666
|
|
|
7,981
|
|
|
8,045
|
|
|
8,200
|
|
|
8,412
|
|
|
Total average
deposits
|
9,932
|
|
|
9,994
|
|
|
9,938
|
|
|
9,950
|
|
|
10,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased loan
accretion
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
Total average
tangible equity (6)
|
1,125
|
|
|
1,141
|
|
|
1,118
|
|
|
1,151
|
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total loans
include non-accruing loans.
|
(2) Average balances
for securities available-for-sale are based on amortized
cost.
|
(2) Average balances
for borrowings includes the financing lease obligation which is
presented under other liabilities on the consolidated balance
sheet.
|
(4) Includes the
Mid-Atlantic region non-interesting bearing deposits. As of March
31, 2022 and December 31, 2021 there were no Mid-Atlantic region
average non-interest bearing deposits.
|
(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: (0.11%, 0.11%, 0.05%, 0.00%,
0.00%) 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)
|
|
|
|
March 31,
|
June 30,
|
Sept. 30,
|
Dec. 31,
|
March 31,
|
(in
thousands)
|
2021
|
2021
|
2021
|
2021
|
2022
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
Non-accruing
loans:
|
|
|
|
|
|
Commercial real
estate
|
$
28,325
|
$
22,799
|
$
14,845
|
$
13,954
|
$
8,984
|
Commercial and
industrial loans
|
9,371
|
9,427
|
7,140
|
6,747
|
5,618
|
Residential
mortgages
|
10,674
|
9,238
|
9,763
|
9,825
|
11,079
|
Consumer
loans
|
7,447
|
6,141
|
5,399
|
4,800
|
4,000
|
Total non-accruing
loans
|
55,817
|
47,605
|
37,147
|
35,326
|
29,681
|
Other real estate
owned
|
149
|
85
|
-
|
-
|
-
|
Repossessed
assets
|
1,701
|
1,666
|
1,664
|
1,736
|
2,004
|
Total non-performing
assets
|
$
57,667
|
$
49,356
|
$
38,811
|
$
37,062
|
$
31,685
|
|
|
|
|
|
|
Total non-accruing
loans/total loans
|
0.73%
|
0.66%
|
0.54%
|
0.52%
|
0.41%
|
Total non-accruing
loans/total loans excluding PPP loans
|
0.77%
|
0.67%
|
0.55%
|
0.52%
|
0.42%
|
Total non-performing
assets/total assets
|
0.45%
|
0.40%
|
0.33%
|
0.32%
|
0.26%
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
Balance at beginning
of period
|
$ 127,302
|
$ 123,800
|
$ 119,044
|
$ 112,916
|
$ 106,094
|
Charged-off
loans
|
(11,460)
|
(7,248)
|
(4,334)
|
(7,976)
|
(6,048)
|
Recoveries on
charged-off loans
|
1,465
|
2,492
|
2,206
|
4,154
|
3,429
|
Net loans
charged-off
|
(9,995)
|
(4,756)
|
(2,128)
|
(3,822)
|
(2,619)
|
Provision (benefit)
for loan credit losses
|
6,493
|
-
|
(4,000)
|
(3,000)
|
(4,000)
|
Balance at end of
period
|
$ 123,800
|
$ 119,044
|
$ 112,916
|
$ 106,094
|
$
99,475
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.62%
|
1.65%
|
1.65%
|
1.55%
|
1.37%
|
Allowance for credit
losses/total loans excluding PPP loans
|
1.72%
|
1.69%
|
1.66%
|
1.56%
|
1.37%
|
Allowance for credit
losses/non-accruing loans
|
222%
|
250%
|
304%
|
300%
|
335%
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS
|
|
|
|
|
|
Commercial real
estate
|
$
(6,959)
|
$
(2,325)
|
$
(1,391)
|
$
(2,208)
|
$
(3,280)
|
Commercial and
industrial loans
|
(2,662)
|
(2,331)
|
110
|
(1,649)
|
653
|
Residential
mortgages
|
80
|
176
|
(677)
|
(2)
|
(50)
|
Home
equity
|
(42)
|
(136)
|
106
|
106
|
135
|
Auto and other
consumer
|
(412)
|
(140)
|
(276)
|
(69)
|
(77)
|
Total, net
|
$
(9,995)
|
$
(4,756)
|
$
(2,128)
|
$
(3,822)
|
$
(2,619)
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.51%
|
0.26%
|
0.12%
|
0.23%
|
0.15%
|
Net charge-offs (YTD
annualized)/average loans
|
0.51%
|
0.39%
|
0.30%
|
0.29%
|
0.15%
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
ASSET QUALITY
ANALYSIS - UNAUDITED (F-8)
|
|
|
|
March 31,
2021
|
June 30,
2021
|
September 30,
2021
|
December 31,
2021
|
March 31,
2022
|
(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
|
$ 28,565
|
0.37%
|
$ 15,483
|
0.22%
|
$ 18,365
|
0.27%
|
$ 39,863
|
0.58%
|
$ 13,517
|
0.19%
|
90+ Days delinquent
and still accruing
|
6,124
|
0.08%
|
3,129
|
0.04%
|
3,803
|
0.06%
|
3,270
|
0.05%
|
6,613
|
0.09%
|
Total accruing
delinquent loans
|
34,689
|
0.45%
|
18,612
|
0.26%
|
22,168
|
0.33%
|
43,133
|
0.63%
|
20,130
|
0.28%
|
Non-accruing
loans
|
55,817
|
0.73%
|
47,605
|
0.66%
|
37,147
|
0.54%
|
35,326
|
0.52%
|
29,681
|
0.41%
|
Total delinquent and
non-accruing loans
|
$ 90,506
|
1.18%
|
$ 66,217
|
0.92%
|
$ 59,315
|
0.87%
|
$ 78,459
|
1.15%
|
$ 49,811
|
0.69%
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED -
(F-9)
|
|
|
|
|
|
March 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
March 31,
|
|
(in
thousands)
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
Total
revenue
|
(A)
|
$ 101,286
|
|
$ 97,404
|
|
$ 145,003
|
|
$ 90,721
|
|
$ 89,744
|
|
Adj: Net securities
losses (1)
|
|
31
|
|
484
|
|
166
|
|
106
|
|
745
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
-
|
|
-
|
|
(51,885)
|
|
(1,057)
|
|
-
|
|
Total adjusted
revenue (2)
|
(B)
|
$ 101,317
|
|
$ 97,888
|
|
$
93,284
|
|
$ 89,770
|
|
$ 90,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
$
78,154
|
|
$ 68,872
|
|
$
69,460
|
|
$ 69,407
|
|
$ 68,550
|
|
Less: Merger,
restructuring and other expense
|
|
(3,486)
|
|
(6)
|
|
(1,425)
|
|
(864)
|
|
(18)
|
|
Adjusted non-interest
expense (2)
|
(D)
|
$
74,668
|
|
$ 68,866
|
|
$
68,035
|
|
$ 68,543
|
|
$ 68,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax,
pre-provision net revenue (PPNR)
|
(A-C)
|
$
23,132
|
|
$ 28,532
|
|
$
75,543
|
|
$ 21,314
|
|
$ 21,194
|
|
Adjusted pre-tax,
pre-provision net revenue (PPNR)
|
(B-D)
|
26,649
|
|
29,022
|
|
25,249
|
|
21,227
|
|
21,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
13,031
|
|
$ 21,636
|
|
$
63,749
|
|
$ 20,248
|
|
$ 20,196
|
|
Adj: Net securities
losses (1)
|
|
31
|
|
484
|
|
166
|
|
106
|
|
745
|
|
Adj: Net (gains) on
sale of business operations and assets
|
|
-
|
|
-
|
|
(51,885)
|
|
(1,057)
|
|
-
|
|
Adj: Restructuring
expense and other expense
|
|
3,486
|
|
6
|
|
1,425
|
|
864
|
|
18
|
|
Adj: Income taxes
(expense)/benefit
|
|
(533)
|
|
(22)
|
|
12,240
|
|
11
|
|
(170)
|
|
Total adjusted income
(2)
|
(E)
|
$
16,015
|
|
$ 22,104
|
|
$
25,695
|
|
$ 20,172
|
|
$ 20,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
$
12,468
|
|
$ 12,417
|
|
$
11,925
|
|
$ 11,427
|
|
$ 11,493
|
|
Total average
shareholders'
equity
|
(G)
|
1,159
|
|
1,174
|
|
1,149
|
|
1,181
|
|
1,189
|
|
Total average
tangible shareholders' equity
(2)(3)
|
(H)
|
1,125
|
|
1,141
|
|
1,118
|
|
1,151
|
|
1,160
|
|
Total average
tangible common shareholders' equity
(2)(3)
|
(I)
|
1,125
|
|
1,141
|
|
1,118
|
|
1,151
|
|
1,160
|
|
Total tangible
shareholders' equity, period-end (2)(3)
|
(J)
|
1,142
|
|
1,143
|
|
1,147
|
|
1,153
|
|
1,066
|
|
Total tangible common
shareholders' equity, period-end (2)(3)
|
(K)
|
1,142
|
|
1,143
|
|
1,147
|
|
1,153
|
|
1,066
|
|
Total tangible
assets, period-end (2)(3)
|
(L)
|
12,724
|
|
12,241
|
|
11,815
|
|
11,525
|
|
12,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, period-end
(thousands)
|
(M)
|
50,988
|
|
50,453
|
|
48,657
|
|
48,667
|
|
47,792
|
|
Average diluted
shares outstanding (thousands)
|
(N)
|
50,565
|
|
50,608
|
|
48,744
|
|
48,340
|
|
48,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per
common share, diluted(2)
|
|
$
0.26
|
|
$
0.43
|
|
$
1.31
|
|
$
0.42
|
|
$
0.42
|
|
Adjusted earnings per
common share, diluted (2)
|
(E/N)
|
0.32
|
|
0.44
|
|
0.53
|
|
0.42
|
|
0.43
|
|
Tangible book value
per common share, period-end (2)
|
(K/M)
|
22.39
|
|
22.66
|
|
23.58
|
|
23.69
|
|
22.30
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
8.98
|
|
9.34
|
|
9.71
|
|
10.00
|
|
8.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(4)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
equity
|
|
4.50
|
%
|
7.37
|
%
|
22.18
|
%
|
6.86
|
%
|
6.79
|
%
|
Adjusted return on
equity (2)
|
(E/G)
|
5.53
|
|
7.53
|
|
8.94
|
|
6.83
|
|
6.99
|
|
Return on tangible
common equity (2)(5)
|
|
4.98
|
|
7.92
|
|
23.14
|
|
7.37
|
|
7.29
|
|
Adjusted return on
tangible common equity (2)(5)
|
(E+Q)/(I)
|
6.04
|
|
8.08
|
|
9.53
|
|
7.34
|
|
7.49
|
|
GAAP return on
assets
|
|
0.42
|
|
0.70
|
|
2.14
|
|
0.71
|
|
0.70
|
|
Adjusted return on
assets(2)
|
|
0.51
|
|
0.71
|
|
0.86
|
|
0.71
|
|
0.72
|
|
PPNR from continuing
operations/assets (2)
|
|
0.74
|
|
0.92
|
|
2.53
|
|
0.75
|
|
0.74
|
|
Adjusted PPNR/assets
(2)
|
|
0.85
|
|
0.93
|
|
0.85
|
|
0.74
|
|
0.76
|
|
Efficiency ratio
(2)(6)
|
(D-Q)/(B+O+R)
|
71.32
|
|
67.82
|
|
68.76
|
|
71.98
|
|
72.61
|
|
Net interest margin,
FTE
|
|
2.62
|
|
2.62
|
|
2.56
|
|
2.60
|
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(O)
|
$
41
|
|
$
79
|
|
$
2,195
|
|
$
2,057
|
|
$
596
|
|
Non-interest income
charge on tax-credit investments (8)
|
(P)
|
(33)
|
|
(175)
|
|
(1,789)
|
|
(1,448)
|
|
(357)
|
|
Net income on
tax-credit investments
|
(O+P)
|
9
|
|
(96)
|
|
406
|
|
609
|
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
$
1,319
|
|
$
1,297
|
|
$
1,296
|
|
$
1,288
|
|
$
1,286
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
1,494
|
|
1,660
|
|
1,586
|
|
1,604
|
|
1,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net securities
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 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.