- Diversified 5 percent growth in average loans; relatively flat
(-1%) average deposits
- Cash and borrowing capacity at 117% of uninsured deposits
- Tangible book value per share +4 percent to $21.89
- TCE ratio of 7.9 percent and CET1 ratio of 12.1 percent
- Added two prominent and well-respected board members –
Karyn Polito and Eric Rosengren
BOSTON, April 20,
2023 /PRNewswire/ -- Berkshire Hills Bancorp, Inc.
(NYSE: BHLB) today reported results for the first quarter of 2023.
These results along with comparison periods are summarized
below:
|
|
Three Months
Ended
|
($ in millions, except
per share data)
|
|
Mar. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Mar. 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
27.6
|
|
$
|
30.5
|
|
$
|
$20.2
|
|
Per
share
|
|
0.63
|
|
|
0.69
|
|
|
0.42
|
|
Operating
earnings1
|
|
27.6
|
|
|
28.3
|
|
|
20.8
|
|
Per share
|
|
0.63
|
|
|
0.64
|
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
non FTE
|
$
|
97.5
|
|
$
|
102.1
|
|
$
|
69.1
|
|
Net interest income,
FTE
|
|
99.4
|
|
|
103.9
|
|
|
70.6
|
|
Net interest margin, FTE
|
|
3.58
|
%
|
|
3.84
|
%
|
|
2.61
|
%
|
Non-interest
income
|
|
16.6
|
|
|
15.7
|
|
|
20.7
|
|
Operating non-interest
income1
|
|
16.6
|
|
|
15.5
|
|
|
21.4
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
|
72.0
|
|
$
|
70.0
|
|
$
|
68.6
|
|
Operating non-interest
expense1
|
|
72.0
|
|
|
72.6
|
|
|
68.5
|
|
Efficiency
ratio1
|
|
59.5
|
%
|
|
58.3
|
%
|
|
72.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,515
|
|
$
|
8,082
|
|
$
|
6,974
|
|
Deposits
|
|
9,676
|
|
|
9,731
|
|
|
10,036
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
balances
|
|
|
|
|
|
|
|
|
|
Loans
|
|
8,682
|
|
|
8,335
|
|
|
7,267
|
|
Deposits
|
|
10,068
|
|
|
10,327
|
|
|
10,699
|
|
|
|
|
|
|
|
|
|
|
|
1. See non-GAAP
financial measures and reconciliation to GAAP measures on page
11
|
Berkshire CEO Nitin Mhatre stated
"We continued to make steady progress on our BEST plan, while
responding prudently to recent market turbulence in the quarter.
Our teams continued to provide exceptional service to our
clients, generating diversified loan growth and managing shifting
deposit demand. Key financial metrics improved year-over-year
driven by ongoing execution of BEST strategic initiatives. We
welcomed new executives – David
Rosato as Chief Financial Officer, James Brown as Head of Commercial Banking and
Philip Jurgeleit as Chief Credit
Officer in first quarter. We also bolstered our board further
through addition of two prominent, well-respected board directors -
Karyn Polito, former Massachusetts
Lieutenant Governor, and Eric
Rosengren, retired President of the Federal Reserve Bank of
Boston. During the quarter, we
were recognized as "America's Best Mid-sized Employers in 2023" by
Forbes, and "America's Most Trustworthy Companies" in 2023 by
Newsweek."
"We are pleased with our financial performance in the first
quarter," stated CFO David Rosato. "Operating income
of $27.6 million decreased by two percent linked-quarter and
generated an operating return on average tangible common equity of
9.6 percent. These results included modestly higher
non-interest income and a lower provision for credit losses on
loans, which mostly offset lower net interest income. Net
interest margin of 3.58 percent was 26 basis points lower than the
fourth quarter due to higher funding costs which were only
partially offset by higher loan yields. The loan-to-deposit
ratio ended the quarter at 86 percent as loans increased
$347 million or four percent
from December 31, while deposits declined by $260 million or three percent at period-end,
quarter-over-quarter. The increase in period-end loans was largely
driven by $216 million in higher commercial balances and
$153 million in higher residential
mortgage balances. The reduction in deposits reflected a
$179 million decrease in payroll
deposits and an $81 million decrease
in all other deposit balances. Capital generation supported
both organic growth and four percent growth in tangible book value
per share. Cash and equivalents increased $321 million to support more on-balance sheet
liquidity in the current environment."
|
As of and For the
Three Months Ended
|
|
Mar. 31,
2023
|
|
Dec. 31,
2022
|
|
Mar. 31,
2022
|
Asset
Quality
|
|
|
|
|
|
Net loan charge-offs to
average loans
|
0.32 %
|
|
0.58 %
|
|
0.15 %
|
Non-performing loans as
a percentage of total loans
|
0.31 %
|
|
0.37 %
|
|
0.41 %
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
Return on average
assets1
|
0.94 %
|
|
1.08 %
|
|
0.70 %
|
Return on average
tangible common equity1
|
9.59 %
|
|
10.59 %
|
|
7.29 %
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
Tangible common
equity/tangible assets
|
7.9 %
|
|
8.0 %
|
|
8.8 %
|
Tier 1
leverage
|
9.9 %
|
|
10.2 %
|
|
10.3 %
|
Common equity Tier
1
|
12.1 %
|
|
12.4 %
|
|
13.9 %
|
Tier 1
risk-based
|
12.4 %
|
|
12.6 %
|
|
14.1 %
|
Total
risk-based
|
14.4 %
|
|
14.6 %
|
|
16.1 %
|
|
|
|
1. See non-GAAP
measures and reconciliation to GAAP beginning on page 11. All
performance ratios
are annualized and are based on average balance sheet amounts,
where applicable.
|
|
|
|
|
|
|
|
|
Headquartered in Boston,
Berkshire Hills Bancorp is the parent of Berkshire Bank.
Providing a wide range of financial solutions through its consumer
banking, commercial banking and wealth management divisions, the
Bank has approximately $12.3 billion
in assets and a community-based footprint of 100 financial centers
in Massachusetts, New York, Vermont, Connecticut and Rhode Island. Access more information about
Berkshire Hills Bancorp at ir.berkshirebank.com.
1Q 2023 Financial Highlights
Income Statement
- GAAP and operating earnings totaled $27.6 million, or
$0.63 per share.
- Net interest income totaled $97.5 million in 1Q23
compared to $102.1 million in 4Q22.
-
- Two fewer calendar days in 1Q23 (2% reduction in net interest
income).
- Net interest margin decreased 26 basis points from 4Q22 to
3.58% reflecting:
-
- Higher cost of funds (increase of 59 basis points).
-
- Includes higher deposit costs (increase of 40 basis
points).
- Includes $519 million increase in
higher cost average borrowings.
- Higher yields on the loan portfolio (increase of 29 basis
points).
- Provision for credit losses on loans totaled $9.0
million.
-
- Allowance for credit losses on loans increased $1.7 million.
- Net loan charge-offs totaled $6.9
million.
- Net loan charge-off ratio of 0.32%.
- Non-interest income totaled $16.6 million in 1Q23
compared to $15.7 million in 4Q22.
-
- Wealth management revenue increased $484
thousand. At March 31, 2023, wealth assets under
supervision totaled $1.9 billion,
including $1.4 billion under
management.
- Gain on SBA loan sales decreased $485
thousand.
- Non-interest expense totaled $72.0 million in 1Q23,
compared to $70.0 million in 4Q22.
-
- Operating non-interest expense totaled $72.0
million in 1Q23 and $72.6 million in 4Q22.
- Compensation and benefits expense increased $1.1 million, primarily reflecting seasonally
higher payroll and benefit-related costs in 1Q23.
- Technology and communications expense decreased $258 thousand.
- Non-interest expense includes non-operating amounts
totaling ($36) thousand in 1Q23 and ($2.6)
million in 4Q22.
- The efficiency ratio was 59.5% for 1Q23 compared to 58.3% for
4Q22 and 72.6% for 1Q22.
- The effective income tax rate was 16.7% for 1Q23 compared to
14.6% in 4Q22 and 18.7% for the full-year of 2022.
Loans
- Commercial real estate loans totaled $4.2 billion
at March 31, 2023, a $136 million increase
from December 31, 2022.
-
- Average commercial real estate loans totaled $4.2 billion in 1Q23, a $232 million increase from 4Q22.
- Commercial and industrial loans totaled $1.6 billion at March 31,
2023, an $80 million increase
from December 31, 2022.
-
- Average commercial and industrial loans totaled $1.5 billion in 1Q23, a $56 million increase from 4Q22.
- Residential mortgage loans totaled $2.4
billion at March 31, 2023, a
$153 million increase from
December 31, 2022.
-
- Average residential mortgage loans totaled $2.3 billion in 1Q23, a $169 million increase from 4Q22.
- Consumer loans totaled $528
million at March 31, 2023, a
$23 million decrease from
December 31, 2022.
-
- Average consumer loans totaled $539
million in 1Q23, a $24 million
decrease from 4Q22.
Deposits
- Non-interest bearing deposits totaled $2.7 billion at March 31,
2023, a $201 million decrease
from December 31, 2022.
-
- Average non-interest bearing deposits totaled $2.7 billion in 1Q23, a $170 million decrease from December 31, 2022.
- Time deposits totaled $2.1
billion at March 31, 2023, a
$479 million increase from
December 31, 2022.
-
- Average time deposits totaled $1.8
billion in 1Q23, a $253
million increase from December 31,
2022.
ESG & CORPORATE RESPONSIBILITY UPDATE
Berkshire is a purpose-driven,
values-guided, community-centered bank. Berkshire's ESG activities are central to its
strategy. Key highlights in the quarter include:
- The Company released its 2022 ESG Report, Purpose &
Performance that Matters which highlights Berkshire's environmental, social, and
governance dimensions of its business.
- Berkshire was again listed in
the Bloomberg Gender Equality Index, named by Newsweek as one of
America's Most Trustworthy Companies, and Forbes' America's Best
Midsize Employers. Berkshire also
received a 2023 Communitas Award for Leadership in Corporate
Responsibility, and the Company maintained its top quartile ESG
rating performance.
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," "remain," "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.
INVESTOR
CONTACT
Kevin Conn
Investor
Relations
617.641.9206
kaconn@berkshirebank.com
|
MEDIA
CONTACT
Gary Levante
Corporate
Communications
413.447.1737
glevante@berkshirebank.com
|
BERKSHIRE HILLS
BANCORP, INC.
|
|
SELECTED FINANCIAL HIGHLIGHTS
(1)
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common
share, diluted
|
$
0.63
|
|
$
0.69
|
|
$
0.42
|
|
$
0.50
|
|
$
0.42
|
|
|
|
|
Operating earnings per
common share, diluted (2)(3)
|
0.63
|
|
0.64
|
|
0.62
|
|
0.51
|
|
0.43
|
|
|
|
|
Net income,
(thousands)
|
27,637
|
|
30,505
|
|
18,717
|
|
23,115
|
|
20,196
|
|
|
|
|
Operating net income,
(thousands) (2)(3)
|
27,608
|
|
28,254
|
|
27,928
|
|
23,562
|
|
20,789
|
|
|
|
|
Net interest income,
non FTE
|
97,533
|
|
102,092
|
|
92,084
|
|
81,358
|
|
69,063
|
|
|
|
|
Net interest income,
FTE (5)
|
99,441
|
|
103,937
|
|
93,799
|
|
82,918
|
|
70,587
|
|
|
|
|
Total common shares
outstanding, end of period (thousands)
|
44,411
|
|
44,361
|
|
45,040
|
|
45,788
|
|
47,792
|
|
|
|
|
Average diluted shares,
(thousands)
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
48,067
|
|
|
|
|
Total book value per
common share, end of period
|
22.42
|
|
21.51
|
|
20.93
|
|
22.15
|
|
22.89
|
|
|
|
|
Tangible book value per
common share, end of period (2)(3)
|
21.89
|
|
20.95
|
|
20.36
|
|
21.56
|
|
22.30
|
|
|
|
|
Dividends per common
share
|
0.18
|
|
0.18
|
|
0.12
|
|
0.12
|
|
0.12
|
|
|
|
|
Dividend payout
ratio
|
28.98
|
%
|
26.59
|
%
|
29.35
|
%
|
25.24
|
%
|
30.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
9.11
|
%
|
10.06
|
%
|
6.30
|
%
|
7.82
|
%
|
6.79
|
%
|
|
|
Operating return on
equity (2)(3)
|
9.10
|
|
9.32
|
|
9.40
|
|
7.97
|
|
6.99
|
|
|
|
|
Return on tangible
common equity (2)(3)
|
9.59
|
|
10.59
|
|
6.76
|
|
8.33
|
|
7.29
|
|
|
|
|
Operating return on
tangible common equity (2)(3)
|
9.59
|
|
9.83
|
|
9.92
|
|
8.48
|
|
7.49
|
|
|
|
|
Return on
assets
|
0.94
|
|
1.08
|
|
0.66
|
|
0.82
|
|
0.70
|
|
|
|
|
Operating return on
assets (2)(3)
|
0.94
|
|
1.00
|
|
0.99
|
|
0.84
|
|
0.72
|
|
|
|
|
Net interest margin,
FTE (5)
|
3.58
|
|
3.84
|
|
3.48
|
|
3.11
|
|
2.61
|
|
|
|
|
Efficiency ratio
(3)
|
59.51
|
|
58.25
|
|
62.01
|
|
66.60
|
|
72.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (in millions, end of
period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
12,320
|
|
$ 11,663
|
|
$ 11,317
|
|
$ 11,579
|
|
$ 12,097
|
|
|
|
|
Total earning
assets
|
11,615
|
|
10,913
|
|
10,604
|
|
10,849
|
|
11,401
|
|
|
|
|
Total loans
|
8,682
|
|
8,335
|
|
7,943
|
|
7,803
|
|
7,267
|
|
|
|
|
Total
deposits
|
10,068
|
|
10,327
|
|
9,988
|
|
10,115
|
|
10,699
|
|
|
|
|
Loans/deposits
(%)
|
86
|
%
|
81
|
%
|
80
|
%
|
77
|
%
|
68
|
%
|
|
|
Total shareholders'
equity
|
$
995
|
|
$
954
|
|
$
943
|
|
$
1,014
|
|
$
1,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
98
|
|
$
96
|
|
$
96
|
|
$
99
|
|
$
99
|
|
|
|
|
Net charge-offs,
(millions)
|
(7)
|
|
(12)
|
|
(6)
|
|
(0)
|
|
(3)
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.32
|
%
|
0.58
|
%
|
0.30
|
%
|
0.02
|
%
|
0.15
|
%
|
|
|
Provision
(benefit)/expense, (millions)
|
$
9
|
|
$
12
|
|
$
3
|
|
$
-
|
|
$
(4)
|
|
|
|
|
Non-performing assets,
(millions)
|
29
|
|
33
|
|
40
|
|
29
|
|
32
|
|
|
|
|
Non-performing
loans/total loans
|
0.31
|
%
|
0.37
|
%
|
0.48
|
%
|
0.34
|
%
|
0.41
|
%
|
|
|
Allowance for credit
losses/non-performing loans
|
363
|
|
309
|
|
254
|
|
368
|
|
335
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.13
|
|
1.15
|
|
1.21
|
|
1.27
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets,
(millions)(6)
|
$
9,447
|
|
$
9,151
|
|
$
8,823
|
|
$
8,718
|
|
$
8,386
|
|
|
|
|
Common equity Tier 1
capital to risk weighted assets (6)
|
12.1
|
%
|
12.4
|
%
|
12.7
|
%
|
13.0
|
%
|
13.9
|
%
|
|
|
Tier 1 capital leverage
ratio(6)
|
9.9
|
|
10.2
|
|
10.1
|
|
10.2
|
|
10.3
|
|
|
|
|
Tangible common
shareholders' equity/tangible assets (3)
|
7.9
|
|
8.0
|
|
8.1
|
|
8.5
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
All financial tables
presented are unaudited.
|
|
|
|
|
|
(2)
|
Reconciliations of
non-GAAP financial measures, including all references to operating
and tangible amounts, appear on page 11.
|
|
|
|
(3)
|
Non-GAAP financial
measure. Operating measurements are non-GAAP financial measures
that are adjusted to exclude net
non-operating charges primarily related to acquisitions and
restructuring activities. See page 11 for reconciliations of
non-GAAP
|
|
|
|
|
financial
measures.
|
|
|
|
(4)
|
All performance ratios
are annualized and are based on average balance sheet amounts,
where applicable.
|
|
|
|
(5)
|
Fully taxable
equivalent considers the impact of tax advantaged investment
securities and loans.
|
|
|
|
(6)
|
Presented as projected
for March 31, 2023 and actual for the remaining periods.
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
|
|
March 31,
|
December
31,
|
March 31,
|
|
(in thousands)
|
2023
|
2022
|
2022
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
121,589
|
$
145,342
|
$
151,814
|
|
Short-term
investments
|
884,973
|
540,013
|
1,455,437
|
|
Total cash and cash
equivalents
|
1,006,562
|
685,355
|
1,607,251
|
|
|
|
|
|
|
Trading securities, at
fair value
|
6,584
|
6,708
|
7,798
|
|
Equity securities, at
fair value
|
13,072
|
12,856
|
14,719
|
|
Securities available
for sale, at fair value
|
1,407,271
|
1,423,200
|
2,032,575
|
|
Securities held to
maturity, at amortized cost
|
574,606
|
583,453
|
612,174
|
|
Federal Home Loan Bank
stock
|
44,245
|
7,219
|
10,829
|
|
Total
securities
|
2,045,778
|
2,033,436
|
2,678,095
|
|
Less: Allowance for
credit losses on investment securities
|
(71)
|
(91)
|
(99)
|
|
Net
securities
|
2,045,707
|
2,033,345
|
2,677,996
|
|
|
|
|
|
|
Loans held for
sale
|
1,906
|
4,311
|
300
|
|
|
|
|
|
|
Commercial real estate
loans
|
4,231,510
|
4,095,079
|
3,763,951
|
|
Commercial and
industrial loans
|
1,553,340
|
1,473,316
|
1,397,193
|
|
Residential
mortgages
|
2,369,614
|
2,216,410
|
1,567,299
|
|
Consumer
loans
|
527,503
|
550,504
|
538,880
|
|
Total loans
|
8,681,967
|
8,335,309
|
7,267,323
|
|
Less: Allowance for
credit losses on loans
|
(97,991)
|
(96,270)
|
(99,475)
|
|
Net loans
|
8,583,976
|
8,239,039
|
7,167,848
|
|
|
|
|
|
|
Premises and equipment,
net
|
78,710
|
85,217
|
92,971
|
|
Other intangible
assets
|
23,279
|
24,483
|
28,332
|
|
Other assets
|
571,616
|
587,854
|
518,322
|
|
Assets held for
sale
|
8,220
|
3,260
|
3,988
|
|
Total assets
|
$
12,319,976
|
$
11,662,864
|
$
12,097,008
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
Non-interest bearing
deposits
|
$
2,650,937
|
$
2,852,127
|
$
3,020,568
|
|
NOW and other
deposits
|
959,417
|
1,054,596
|
2,546,799
|
|
Money market
deposits
|
3,274,630
|
3,723,570
|
2,469,042
|
|
Savings
deposits
|
1,069,915
|
1,063,269
|
1,133,877
|
|
Time
deposits
|
2,112,646
|
1,633,707
|
1,528,922
|
|
Total
deposits
|
10,067,545
|
10,327,269
|
10,699,208
|
|
|
|
|
|
|
Federal Home Loan Bank
advances
|
904,395
|
4,445
|
14,563
|
|
Subordinated
borrowings
|
121,176
|
121,064
|
97,569
|
|
Total
borrowings
|
1,025,571
|
125,509
|
112,132
|
|
|
|
|
|
|
Other
liabilities
|
231,380
|
256,024
|
191,807
|
|
Total
liabilities
|
11,324,496
|
10,708,802
|
11,003,147
|
|
|
|
|
|
|
Common shareholders'
equity
|
995,480
|
954,062
|
1,093,861
|
|
Total shareholders'
equity
|
995,480
|
954,062
|
1,093,861
|
|
Total liabilities and
shareholders' equity
|
$
12,319,976
|
$
11,662,864
|
$
12,097,008
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
(in thousands, except per share
data)
|
2023
|
|
2022
|
|
Interest
income
|
$
132,316
|
|
$
74,823
|
|
Interest
expense
|
34,783
|
|
5,760
|
|
Net interest income,
non FTE
|
97,533
|
|
69,063
|
|
Non-interest income
|
|
|
|
|
Deposit related
fees
|
8,311
|
|
7,351
|
|
Loan fees and
other
|
2,469
|
|
4,939
|
|
Gain on SBA loan
sales
|
2,494
|
|
3,345
|
|
Wealth management
fees
|
2,739
|
|
2,625
|
|
Other
|
359
|
|
3,166
|
|
Total non-interest
income excluding gains/(losses)
|
16,372
|
|
21,426
|
|
Securities
gains/(losses), net
|
234
|
|
(745)
|
|
Total non-interest
income
|
16,606
|
|
20,681
|
|
Total net revenue
|
114,139
|
|
89,744
|
|
|
|
|
|
|
Provision
expense/(benefit) for credit losses
|
8,999
|
|
(4,000)
|
|
Non-interest expense
|
|
|
|
|
Compensation and
benefits
|
39,071
|
|
37,521
|
|
Occupancy and
equipment
|
9,379
|
|
10,067
|
|
Technology and
communications
|
9,471
|
|
8,527
|
|
Professional
services
|
3,277
|
|
2,692
|
|
Other
expenses
|
10,793
|
|
9,725
|
|
Merger, restructuring
and other non-operating expenses
|
(36)
|
|
18
|
|
Total non-interest
expense
|
71,955
|
|
68,550
|
|
Total non-interest
expense excluding merger, restructuring and other
|
71,991
|
|
68,532
|
|
|
|
|
|
|
Income before income
taxes
|
$
33,185
|
|
$
25,194
|
|
Income tax
expense
|
5,548
|
|
4,998
|
|
Net income
|
$
27,637
|
|
$
20,196
|
|
|
|
|
|
|
Basic earnings per common share
|
$
0.63
|
|
$
0.42
|
|
Diluted earnings per common
share
|
$
0.63
|
|
$
0.42
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic
|
43,693
|
|
47,668
|
|
Diluted
|
44,036
|
|
48,067
|
|
|
|
|
|
|
BERKSHIRE
HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter
Trend)
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in thousands, except per share
data)
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
Interest
income
|
|
$
132,316
|
|
$ 121,384
|
|
$
103,671
|
|
$
87,379
|
|
$
74,823
|
Interest
expense
|
|
34,783
|
|
19,292
|
|
11,587
|
|
6,021
|
|
5,760
|
Net interest income,
non FTE
|
|
97,533
|
|
102,092
|
|
92,084
|
|
81,358
|
|
69,063
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
|
8,311
|
|
8,293
|
|
8,377
|
|
8,005
|
|
7,351
|
Loan fees and
other
|
|
2,469
|
|
2,123
|
|
1,292
|
|
1,113
|
|
4,939
|
Gain on SBA loan
sales
|
|
2,494
|
|
2,979
|
|
2,551
|
|
3,619
|
|
3,345
|
Wealth management
fees
|
|
2,739
|
|
2,255
|
|
2,353
|
|
2,775
|
|
2,625
|
Other
|
|
359
|
|
(159)
|
|
2,154
|
|
1,812
|
|
3,166
|
Total non-interest
income excluding gains/(losses)
|
|
16,372
|
|
15,491
|
|
16,727
|
|
17,324
|
|
21,426
|
Securities
gains/(losses), net
|
|
234
|
|
163
|
|
(476)
|
|
(973)
|
|
(745)
|
Total non-interest
income
|
|
16,606
|
|
15,654
|
|
16,251
|
|
16,351
|
|
20,681
|
Total net revenue
|
|
114,139
|
|
117,746
|
|
108,335
|
|
97,709
|
|
89,744
|
|
|
|
|
|
|
|
|
|
|
|
Provision
expense/(benefit) for credit losses
|
|
8,999
|
|
12,000
|
|
3,000
|
|
-
|
|
(4,000)
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
39,071
|
|
37,968
|
|
39,422
|
|
37,830
|
|
37,521
|
Occupancy and
equipment
|
|
9,379
|
|
9,431
|
|
8,702
|
|
9,438
|
|
10,067
|
Technology and
communications
|
|
9,471
|
|
9,729
|
|
8,719
|
|
8,611
|
|
8,527
|
Professional
services
|
|
3,277
|
|
3,153
|
|
3,285
|
|
2,913
|
|
2,692
|
Other
expenses
|
|
10,793
|
|
12,350
|
|
10,076
|
|
9,648
|
|
9,725
|
Merger, restructuring
and other non-operating expenses
|
|
(36)
|
|
(2,617)
|
|
11,473
|
|
35
|
|
18
|
Total non-interest
expense
|
|
71,955
|
|
70,014
|
|
81,677
|
|
68,475
|
|
68,550
|
Total non-interest
expense excluding merger, restructuring and other
|
|
71,991
|
|
72,631
|
|
70,204
|
|
68,440
|
|
68,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
$
33,185
|
|
$
35,732
|
|
$
23,658
|
|
$
29,234
|
|
$
25,194
|
Income tax
expense
|
|
5,548
|
|
5,227
|
|
4,941
|
|
6,119
|
|
4,998
|
Net income
|
|
$
27,637
|
|
$
30,505
|
|
$
18,717
|
|
$
23,115
|
|
$
20,196
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
0.63
|
|
$
0.69
|
|
$
0.42
|
|
$
0.50
|
|
$
0.42
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
43,693
|
|
44,105
|
|
44,700
|
|
45,818
|
|
47,668
|
Diluted
|
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
48,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
AVERAGE BALANCES AND AVERAGE YIELDS AND
COSTS
|
|
|
Quarters
Ended
|
|
|
|
March 31, 2023
|
|
Dec. 31,
2022
|
|
March 31,
2022
|
|
|
|
|
|
|
(in millions)
|
|
Average
Balance
|
Interest (1)
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Interest
(1)
|
Average
Yield/Rate
|
|
|
Average
Balance
|
Interest
(1)
|
Average
Yield/Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
4,166
|
61
|
5.88
|
%
|
3,934
|
55
|
5.46
|
%
|
3,651
|
31
|
3.35
|
%
|
Commercial and
industrial loans
|
|
1,527
|
26
|
6.92
|
|
|
1,471
|
25
|
6.62
|
|
|
1,373
|
14
|
4.14
|
|
|
Residential
mortgages
|
|
2,283
|
21
|
3.70
|
|
|
2,114
|
19
|
3.56
|
|
|
1,436
|
13
|
3.56
|
|
|
Consumer
loans
|
|
539
|
10
|
7.24
|
|
|
563
|
10
|
7.00
|
|
|
514
|
5
|
4.24
|
|
|
Total loans
|
|
8,515
|
118
|
5.57
|
|
|
8,082
|
109
|
5.28
|
|
|
6,974
|
63
|
3.61
|
|
|
Securities
(2)
|
|
2,261
|
13
|
2.23
|
|
|
2,294
|
13
|
2.20
|
|
|
2,649
|
13
|
1.95
|
|
|
Short-term investments
and loans HFS
|
|
313
|
3
|
4.24
|
|
|
267
|
2
|
3.05
|
|
|
1,202
|
-
|
0.17
|
|
|
Total earning assets
|
|
11,089
|
134
|
4.85
|
|
|
10,643
|
123
|
4.56
|
|
|
10,825
|
76
|
2.82
|
|
|
Goodwill and other
intangible assets
|
|
24
|
|
|
|
|
25
|
|
|
|
|
29
|
|
|
|
|
Other assets
|
|
692
|
|
|
|
|
653
|
|
|
|
|
639
|
|
|
|
|
Total assets
|
|
11,805
|
|
|
|
|
11,321
|
|
|
|
|
11,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
2,706
|
-
|
-
|
%
|
2,876
|
-
|
-
|
%
|
2,968
|
-
|
-
|
%
|
NOW and
other
|
|
1,456
|
6
|
1.64
|
|
|
1,395
|
4
|
1.11
|
|
|
1,456
|
-
|
0.04
|
|
|
Money market
|
|
2,659
|
10
|
1.59
|
|
|
2,819
|
8
|
1.16
|
|
|
2,871
|
1
|
0.16
|
|
|
Savings
|
|
1,047
|
-
|
0.10
|
|
|
1,086
|
-
|
0.03
|
|
|
1,117
|
-
|
0.03
|
|
|
Time
|
|
1,808
|
10
|
2.13
|
|
|
1,555
|
5
|
1.21
|
|
|
1,624
|
3
|
0.71
|
|
|
Total cost deposits
|
|
9,676
|
26
|
1.09
|
|
|
9,731
|
17
|
0.69
|
|
|
10,036
|
4
|
0.17
|
|
|
Borrowings
(3)
|
|
688
|
9
|
5.06
|
|
|
169
|
2
|
5.56
|
|
|
122
|
2
|
5.21
|
|
|
Total funding liabilities
|
|
10,364
|
35
|
1.36
|
|
|
9,900
|
19
|
0.77
|
|
|
10,158
|
6
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
227
|
|
|
|
|
208
|
|
|
|
|
146
|
|
|
|
|
Total liabilities
|
|
10,591
|
|
|
|
|
10,108
|
|
|
|
|
10,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
|
1,214
|
|
|
|
|
1,213
|
|
|
|
|
1,189
|
|
|
|
|
Total shareholders' equity
|
|
1,214
|
|
|
|
|
1,213
|
|
|
|
|
1,189
|
|
|
|
|
Total liabilities and shareholders'
equity
|
|
11,805
|
|
|
|
|
11,321
|
|
|
|
|
11,493
|
|
|
|
|
Net interest margin, FTE
|
|
|
|
3.58
|
|
|
|
|
3.84
|
|
|
|
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
|
7,868
|
|
|
|
|
8,176
|
|
|
|
|
8,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
non FTE
|
|
97.533
|
|
|
|
|
102.092
|
|
|
|
|
69.063
|
|
|
|
|
FTE income
adjustment
|
|
1.908
|
|
|
|
|
1.845
|
|
|
|
|
1.524
|
|
|
|
|
Net Interest Income, FTE
|
|
99.441
|
|
|
|
|
103.937
|
|
|
|
|
70.587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest
income and expense presented on a fully taxable equivalent
basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Average balances
for securities available-for-sale are based on amortized
cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Average balances
for borrowings includes the financing lease obligation which is
presented under other liabilities on the consolidated balance
sheet.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
ASSET QUALITY ANALYSIS
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(in thousands)
|
2023
|
2022
|
2022
|
2022
|
2022
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
2,546
|
|
$
2,434
|
|
$
2,976
|
|
$
8,277
|
|
$
8,984
|
|
Commercial and
industrial loans
|
12,155
|
|
17,023
|
|
21,008
|
|
4,891
|
|
5,618
|
|
Residential
mortgages
|
9,442
|
|
8,612
|
|
10,407
|
|
10,331
|
|
11,079
|
|
Consumer
loans
|
2,848
|
|
3,045
|
|
3,463
|
|
3,385
|
|
4,000
|
|
Total non-performing
loans
|
26,991
|
|
31,114
|
|
37,854
|
|
26,884
|
|
29,681
|
|
Repossessed
assets
|
2,462
|
|
2,209
|
|
2,175
|
|
2,004
|
|
2,004
|
|
Total non-performing
assets
|
$
29,453
|
|
$
33,323
|
|
$ 40,029
|
|
$ 28,888
|
|
$
31,685
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans/total loans
|
0.31 %
|
|
0.37 %
|
|
0.48 %
|
|
0.34 %
|
|
0.41 %
|
|
Total non-performing
assets/total assets
|
0.24 %
|
|
0.29 %
|
|
0.35 %
|
|
0.25 %
|
|
0.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON
LOANS
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
96,270
|
|
$
96,013
|
|
$ 99,021
|
|
$ 99,475
|
|
$
106,094
|
|
Adoption of ASU No.
2022-02
|
(401)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Balance after adoption
of ASU No. 2022-02
|
95,869
|
|
96,013
|
|
99,021
|
|
99,475
|
|
106,094
|
|
Charged-off
loans
|
(7,936)
|
|
(12,995)
|
|
(7,424)
|
|
(1,593)
|
|
(6,048)
|
|
Recoveries on
charged-off loans
|
1,059
|
|
1,252
|
|
1,416
|
|
1,139
|
|
3,429
|
|
Net loans
charged-off
|
(6,877)
|
|
(11,743)
|
|
(6,008)
|
|
(454)
|
|
(2,619)
|
|
Provision
(benefit)/expense for loan credit losses
|
8,999
|
|
12,000
|
|
3,000
|
|
-
|
|
(4,000)
|
|
Balance at end of
period
|
$
97,991
|
|
$
96,270
|
|
$ 96,013
|
|
$ 99,021
|
|
$
99,475
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.13 %
|
|
1.15 %
|
|
1.21 %
|
|
1.27 %
|
|
1.37 %
|
|
Allowance for credit
losses/non-performing loans
|
363 %
|
|
309 %
|
|
254 %
|
|
368 %
|
|
335 %
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
122
|
|
$
187
|
|
$
(854)
|
|
$
(76)
|
|
$
(3,280)
|
|
Commercial and
industrial loans
|
(5,695)
|
|
(10,914)
|
|
(4,931)
|
|
(237)
|
|
653
|
|
Residential
mortgages
|
305
|
|
192
|
|
122
|
|
(30)
|
|
(50)
|
|
Home equity
|
16
|
|
(128)
|
|
1
|
|
33
|
|
135
|
|
Auto and other
consumer
|
(1,625)
|
|
(1,080)
|
|
(346)
|
|
(144)
|
|
(77)
|
|
Total, net
|
$
(6,877)
|
|
$
(11,743)
|
|
$ (6,008)
|
|
$
(454)
|
|
$
(2,619)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.32 %
|
|
0.58 %
|
|
0.30 %
|
|
0.02 %
|
|
0.15 %
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.32 %
|
|
0.27 %
|
|
0.16 %
|
|
0.08 %
|
|
0.15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND NON-PERFORMING
LOANS
|
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
|
$
14,210
|
0.16 %
|
$
12,162
|
0.15 %
|
$ 14,662
|
0.18 %
|
$ 36,184
|
0.46 %
|
$
13,517
|
0.19 %
|
90+ Days delinquent and
still accruing
|
6,937
|
0.08 %
|
7,038
|
0.08 %
|
6,285
|
0.08 %
|
6,760
|
0.09 %
|
6,613
|
0.09 %
|
Total accruing
delinquent loans
|
21,147
|
0.24 %
|
19,200
|
0.23 %
|
20,947
|
0.26 %
|
42,944
|
0.55 %
|
20,130
|
0.28 %
|
Non-performing
loans
|
26,991
|
0.31 %
|
31,114
|
0.37 %
|
37,854
|
0.48 %
|
26,884
|
0.34 %
|
29,681
|
0.41 %
|
Total delinquent and
non-performing loans
|
$
48,138
|
0.55 %
|
$
50,314
|
0.60 %
|
$ 58,801
|
0.74 %
|
$ 69,828
|
0.89 %
|
$
49,811
|
0.69 %
|
BERKSHIRE HILLS BANCORP, INC.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND
SUPPLEMENTARY DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(in thousands)
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Total non-interest
income
|
|
|
$ 16,606
|
|
$
15,654
|
|
$
16,251
|
|
$
16,351
|
|
$
20,681
|
|
Adj: Net securities
(gains)/losses (1)
|
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
745
|
|
Total operating
non-interest income (2)
|
|
|
$ 16,606
|
|
$
15,491
|
|
$
16,727
|
|
$
17,324
|
|
$
21,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
114,139
|
|
$ 117,746
|
|
$
108,335
|
|
$
97,709
|
|
$
89,744
|
|
Adj: Net securities
(gains)/losses (1)
|
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
745
|
|
Total operating
revenue (2)
|
(B)
|
|
$
114,139
|
|
$ 117,583
|
|
$
108,811
|
|
$
98,682
|
|
$
90,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$ 71,955
|
|
$
70,014
|
|
$
81,677
|
|
$
68,475
|
|
$
68,550
|
|
Adj: Merger,
restructuring and other expense
|
|
|
36
|
|
2,617
|
|
(11,473)
|
|
(35)
|
|
(18)
|
|
Operating non-interest
expense (2)
|
(D)
|
|
$ 71,991
|
|
$
72,631
|
|
$
70,204
|
|
$
68,440
|
|
$
68,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$ 42,184
|
|
$
47,732
|
|
$
26,658
|
|
$
29,234
|
|
$
21,194
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (2)
|
(B-D)
|
|
42,148
|
|
44,952
|
|
38,607
|
|
30,242
|
|
21,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$ 27,637
|
|
$
30,505
|
|
$
18,717
|
|
$
23,115
|
|
$
20,196
|
|
Adj: Net securities
(gains)/losses (1)
|
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
745
|
|
Adj: Restructuring
expense and other expense
|
|
|
(36)
|
|
(2,617)
|
|
11,473
|
|
35
|
|
18
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
7
|
|
529
|
|
(2,738)
|
|
(561)
|
|
(170)
|
|
Total operating
income (2)
|
(E)
|
|
$ 27,608
|
|
$
28,254
|
|
$
27,928
|
|
$
23,562
|
|
$
20,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$ 11,805
|
|
$
11,321
|
|
$
11,315
|
|
$
11,260
|
|
$
11,493
|
|
Total average
shareholders'
equity
|
(G)
|
|
1,214
|
|
1,213
|
|
1,189
|
|
1,182
|
|
1,189
|
|
Total average tangible
shareholders' equity (2)(3)
|
(H)
|
|
1,190
|
|
1,188
|
|
1,164
|
|
1,155
|
|
1,160
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
|
(159)
|
|
(181)
|
|
(188)
|
|
(123)
|
|
(78)
|
|
Total tangible
shareholders' equity, end of period (2)(3)
|
(J)
|
|
972
|
|
930
|
|
917
|
|
987
|
|
1,066
|
|
Total tangible assets,
end of period (2)(3)
|
(L)
|
|
12,297
|
|
11,638
|
|
11,291
|
|
11,552
|
|
12,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
44,411
|
|
44,361
|
|
45,040
|
|
45,788
|
|
47,792
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
48,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per
common share, diluted (2)
|
|
|
$
0.63
|
|
$
0.69
|
|
$
0.42
|
|
$
0.50
|
|
$
0.42
|
|
Operating earnings per
common share, diluted (2)
|
(E/N)
|
|
0.63
|
|
0.64
|
|
0.62
|
|
0.51
|
|
0.43
|
|
Tangible book value per
common share, end of period (2)
|
(K/M)
|
|
21.89
|
|
20.95
|
|
20.36
|
|
21.56
|
|
22.30
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
|
7.91
|
|
7.99
|
|
8.12
|
|
8.54
|
|
8.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
equity
|
|
|
9.11
|
%
|
10.06
|
%
|
6.30
|
|
7.82
|
%
|
6.79
|
%
|
Operating return on
equity (2)
|
(E/G)
|
|
9.10
|
|
9.32
|
|
9.40
|
|
7.97
|
|
6.99
|
|
Return on tangible
common equity (2)(5)
|
|
|
9.59
|
|
10.59
|
|
6.76
|
|
8.33
|
|
7.29
|
|
Operating return on
tangible common equity (2)(5)
|
(E+Q)/(I)
|
|
9.59
|
|
9.83
|
|
9.92
|
|
8.48
|
|
7.49
|
|
GAAP return on
assets
|
|
|
0.94
|
|
1.08
|
|
0.66
|
|
0.82
|
|
0.70
|
|
Operating return on
assets (2)
|
|
|
0.94
|
|
1.00
|
|
0.99
|
|
0.84
|
|
0.72
|
|
Efficiency ratio
(2)(6)
|
(D-Q)/(B+O+R)
|
|
59.51
|
|
58.25
|
|
62.01
|
|
66.60
|
|
72.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (7)
|
(O)
|
|
$
2,897
|
|
$
3,068
|
|
$
620
|
|
$
595
|
|
$
596
|
|
Non-interest income
tax-credit investments amortization (8)
|
(P)
|
|
(2,285)
|
|
(2,355)
|
|
(445)
|
|
(351)
|
|
(357)
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
612
|
|
713
|
|
175
|
|
244
|
|
239
|
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Intangible
amortization
|
(Q)
|
|
$
1,205
|
|
$
1,277
|
|
$ 1,285
|
|
$ 1,286
|
|
$ 1,286
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
1,908
|
|
1,845
|
|
1,715
|
|
1,560
|
|
1,524
|
|
|
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(1) As of March 31,
2023, securities gains/(losses) are included in operating income.
Net securities (gains)/losses for prior periods include the change
in fair value of the
|
Company's equity
securities in compliance with the Company's adoption of ASU
2016-01.
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(2) Non-GAAP financial
measure.
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(3) Total tangible
shareholders' equity is computed by taking total shareholders'
equity less the intangible assets at end of period. Total tangible
assets is computed by
|
taking
intangible assets at end of period.
|
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(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.
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(5) Operating return on
tangible equity is computed by dividing the total operating
income/(loss) adjusted for the tax-effected amortization of
intangible assets,
|
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assuming a 27%
marginal rate, by tangible equity.
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(6) Efficiency ratio is
computed by dividing total operating tangible non-interest expense
by the sum of total net interest income on a fully taxable
equivalent basis and
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total operating
non-interest income adjusted to include tax credit benefit of tax
shelter investments. The Company uses this non-GAAP measure to
provide
|
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important information
regarding its operational efficiency.
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(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,
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low-income housing,
new markets and solar.
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(8) The non-interest
income amortization 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.