10% EPS Growth Year-over-Year
- Period-end loan growth of 2%; total deposits unchanged
- Net loan charge-offs decreased $1.1
million; credit loss allowance increased $2.2 million commensurate with loan growth
- TCE ratio of 7.9 percent and CET1 ratio of 12.1 percent
- Repurchased $12 million of stock
in 2Q23
BOSTON, July 20,
2023 /PRNewswire/ -- Berkshire Hills Bancorp, Inc.
(NYSE: BHLB) today reported results for the second quarter of 2023.
These results along with comparison periods are summarized
below:
($ in millions, except
per share data)
|
|
June 30,
2023
|
|
Mar. 31,
2023
|
|
June 30,
2022
|
|
|
|
|
|
|
|
Net income
|
$
|
23.9
|
$
|
27.6
|
$
|
$23.1
|
Per
share
|
|
0.55
|
|
0.63
|
|
0.50
|
Operating
earnings1
|
|
23.9
|
|
27.6
|
|
23.6
|
Per share
|
|
0.55
|
|
0.63
|
|
0.51
|
|
|
|
|
|
|
|
Net interest income,
non FTE
|
$
|
92.8
|
$
|
97.5
|
$
|
81.4
|
Net interest income,
FTE
|
|
94.7
|
|
99.4
|
|
82.9
|
Net interest margin, FTE
|
|
3.24 %
|
|
3.58 %
|
|
3.11 %
|
Non-interest
income
|
|
17.1
|
|
16.6
|
|
16.4
|
Operating non-interest
income1
|
|
17.1
|
|
16.6
|
|
17.3
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
|
74.0
|
$
|
72.0
|
$
|
68.5
|
Operating non-interest
expense1
|
|
74.0
|
|
72.0
|
|
68.4
|
Efficiency
ratio1
|
|
63.6 %
|
|
59.5 %
|
|
66.6 %
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
Loans
|
$
|
8,791
|
$
|
8,515
|
$
|
7,492
|
Deposits
|
|
9,568
|
|
9,676
|
|
9,755
|
|
|
|
|
|
|
|
Period-end
balances
|
|
|
|
|
|
|
Loans
|
|
8,882
|
|
8,682
|
|
7,803
|
Deposits
|
|
10,068
|
|
10,068
|
|
10,115
|
|
1. See non-GAAP
financial measures and reconciliation to GAAP measures on page
12.
|
Berkshire CEO Nitin Mhatre stated, "I'm pleased with our
progress, as we continue to grow the company strategically while
posting higher earnings per share year-over-year. In this dynamic
banking environment, Berkshire's
teams are serving clients and communities with focus and
discipline. Reflecting the quality of our underwriting and business
model, credit performance remains strong and deposits have been
resilient. In the second quarter, we allocated our $100 million sustainability bond issuance to
targeted social and environmental projects. We're proud to be a
leader promoting strong support to the communities in our
footprint"
CFO David Rosato added, "Second
quarter GAAP net income of $23.9
million increased 3% year-over-year, generating an 8.3
percent return on average tangible common equity. The cumulative
impact of Federal Reserve Bank interest rate hikes has resulted in
higher funding costs for Berkshire Bank and the industry,
compressing net interest margins and operating profitability. Net
income decreased 14 percent linked quarter, primarily reflecting
lower net interest income. Net interest margin of 3.24 percent
improved 13 basis points from a year ago, but declined 34 basis
points linked-quarter. Further expansion of average loan yields was
more than offset by higher deposit and borrowing costs. Period-end
loan balances grew 2 percent while deposits were unchanged. The
period-end loan to deposit ratio measured 88 percent and the ratio
of tangible common equity to tangible assets stood at 7.9 percent.
Common stock repurchases totaled $12
million for the quarter."
_
__ As of and For the Three Months Ended______
|
|
June 30,
2023
|
|
Mar. 31,
2023
|
|
June 30,
2022
|
Asset
Quality
|
|
|
|
|
|
Net loan charge-offs to
average loans
|
0.26 %
|
|
0.32 %
|
|
0.02 %
|
Non-performing loans to
total loans
|
0.32 %
|
|
0.31 %
|
|
0.34 %
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
Return on average
assets1
|
0.78 %
|
|
0.94 %
|
|
0.82 %
|
Return on average
tangible common equity1
|
8.26 %
|
|
9.59 %
|
|
8.33 %
|
|
|
|
|
|
|
Capital
Ratios2
|
|
|
|
|
|
Tangible common
equity/tangible assets1
|
7.9 %
|
|
7.9 %
|
|
8.5 %
|
Tier 1
leverage
|
9.6 %
|
|
9.9 %
|
|
10.2 %
|
Common equity Tier
1
|
12.1 %
|
|
12.1 %
|
|
12.9 %
|
Tier 1
risk-based
|
12.3 %
|
|
12.4 %
|
|
13.2 %
|
Total
risk-based
|
14.4 %
|
|
14.4 %
|
|
16.1 %
|
|
|
|
1. See non-GAAP
measures and reconciliation to GAAP beginning on page 12. All
performance ratios are annualized and are
based on average balance sheet amounts, where applicable. 2.
Presented as projected for June 30, 2023 and actual for the
remaining periods.
|
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 $12.1 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.
2Q 2023 Financial Highlights
Income Statement
- GAAP and operating earnings totaled $23.9 million, or
$0.55 per share.
- Net interest income totaled $92.8 million in 2Q23
compared to $97.5 million in 1Q23.
-
- One additional calendar day in 2Q23 (1% increase in net
interest income).
- Net interest margin decreased 34 basis points from 1Q23 to
3.24% reflecting:
-
- Higher cost of funds (increase of 58 basis points).
-
- Includes higher deposit costs (increase of 41 basis
points).
- Includes $600 million increase in
higher cost average borrowings.
- Higher yields on the loan portfolio (increase of 20 basis
points).
- Provision for credit losses on loans totaled $8.0
million.
-
- Allowance for credit losses on loans increased $2.2 million.
- Net loan charge-offs totaled $5.8
million.
- Net annualized loan charge-off ratio of 0.26%.
- Non-interest income totaled $17.1 million in 2Q23
compared to $16.6 million in 1Q23.
-
- Deposit related fees included $215
thousand in higher commercial cash management fees.
- Loan related non-interest revenue included $754 thousand in higher interest rate swap
income.
- Gain on SBA loan sales increased $416
thousand.
- Wealth management revenue seasonally decreased $156 thousand. At June 30, 2023, wealth
assets under management were $1.4
billion.
- Non-interest expense totaled $74.0 million in 2Q23,
compared to $72.0 million in 1Q23.
-
- Compensation and benefits expense increased $889 thousand.
- Occupancy and equipment expense decreased $409 thousand.
- Technology and communications expense increased $994 thousand.
- The efficiency ratio was 63.6% for 2Q23 compared to 59.5% for
1Q23.
- The effective income tax rate was 14.2% for 2Q23 and 15.6% for
the first six months of 2023 compared to 18.7% for the full year of
2022.
Loans
- Commercial real estate loans totaled $4.3 billion
at June 30, 2023, an $84
million increase from March 31, 2023.
-
- Average commercial real estate loans totaled $4.3 billion in 2Q23, a $117 million increase from 1Q23.
- Commercial and industrial loans totaled $1.5 billion at June 30,
2023, an $88 million decrease
from March 31, 2023.
-
- Average commercial and industrial loans totaled $1.5 billion in 2Q23, a $31 million decrease from 1Q23.
- Residential mortgage loans totaled $2.6
billion at June 30, 2023, a
$215 million increase from
March 31, 2023.
-
- Average residential mortgage loans totaled $2.5 billion in 2Q23, a $205 million increase from 1Q23.
- Consumer loans totaled $517
million at June 30, 2023, a
$10 million decrease from
March 31, 2023.
-
- Average consumer loans totaled $524
million in 2Q23, a $15 million
decrease from 1Q23.
- Total non-performing loans to total loans was 0.32% at
June 30, 2023 compared to 0.31% at
March 31, 2023.
- The allowance for credit losses to total loans was 1.13% at
June 30, 2023, unchanged from
March 31, 2023.
Deposits
- Non-interest bearing deposits totaled $2.6 billion at June 30,
2023, a $56 million decrease
from March 31, 2023.
-
- Average non-interest bearing deposits totaled $2.6 billion in 2Q23, a $112 million decrease from 1Q23.
- Time deposits totaled $2.4
billion at June 30, 2023,
$323 million increase from
March 31, 2023.
-
- Average time deposits totaled $2.3
billion in 2Q23, a $479
million increase from 1Q23.
2Q 2023 ESG & CORPORATE RESPONSIBILITY
HIGHLIGHTS
Berkshire is a performance and
purpose-driven, values-guided, community-centered bank.
Berkshire's ESG activities are
central to its strategy. Key highlights in the quarter
include:
- The Company announced the allocation of its inaugural
$100 million sustainability
bond which helped create 330 units of affordable and workforce
housing along with more than 200,000 square feet of green building
development. Further details can be found in Berkshire's Sustainability Bond
Report which highlights how proceeds were allocated to support
affordable housing, workforce housing, green building and financial
access and inclusion projects in communities across New England and
New York.
- Berkshire maintained its top
quartile ESG rating performance and was named the recipient of
the LGBT Corporate Ally Award from the Boston Business
Journal.
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)
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOMINAL AND PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common
share, diluted
|
$
0.55
|
|
$ 0.63
|
|
$
0.69
|
|
$
0.42
|
|
$
0.50
|
|
|
|
Operating earnings per
common share, diluted (2)(3)
|
0.55
|
|
0.63
|
|
0.64
|
|
0.62
|
|
0.51
|
|
|
|
Net income,
(thousands)
|
23,861
|
|
27,637
|
|
30,505
|
|
18,717
|
|
23,115
|
|
|
|
Operating net income,
(thousands) (2)(3)
|
23,878
|
|
27,608
|
|
28,254
|
|
27,928
|
|
23,562
|
|
|
|
Net interest income,
(thousands) non FTE
|
92,759
|
|
97,533
|
|
102,092
|
|
92,084
|
|
81,358
|
|
|
|
Net interest income,
FTE (5)
|
94,721
|
|
99,441
|
|
103,937
|
|
93,799
|
|
82,918
|
|
|
|
Total common shares
outstanding, end of period (thousands)
|
44,033
|
|
44,411
|
|
44,361
|
|
45,040
|
|
45,788
|
|
|
|
Average diluted shares,
(thousands)
|
43,532
|
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
|
|
Total book value per
common share, end of period
|
22.11
|
|
22.42
|
|
21.51
|
|
20.93
|
|
22.15
|
|
|
|
Tangible book value per
common share, end of period (2)(3)
|
21.60
|
|
21.89
|
|
20.95
|
|
20.36
|
|
21.56
|
|
|
|
Dividends per common
share
|
0.18
|
|
0.18
|
|
0.18
|
|
0.12
|
|
0.12
|
|
|
|
Dividend payout
ratio
|
33.47
|
%
|
28.98
|
%
|
26.59
|
%
|
29.35
|
%
|
25.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
7.82
|
%
|
9.11
|
%
|
10.06
|
%
|
6.30
|
%
|
7.82
|
%
|
|
|
Operating return on
equity (2)(3)
|
7.82
|
|
9.10
|
|
9.32
|
|
9.40
|
|
7.97
|
|
|
|
Return on tangible
common equity (2)(3)
|
8.26
|
|
9.59
|
|
10.59
|
|
6.76
|
|
8.33
|
|
|
|
Operating return on
tangible common equity (2)(3)
|
8.27
|
|
9.59
|
|
9.83
|
|
9.92
|
|
8.48
|
|
|
|
Return on
assets
|
0.78
|
|
0.94
|
|
1.08
|
|
0.66
|
|
0.82
|
|
|
|
Operating return on
assets (2)(3)
|
0.78
|
|
0.94
|
|
1.00
|
|
0.99
|
|
0.84
|
|
|
|
Net interest margin,
FTE (5)
|
3.24
|
|
3.58
|
|
3.84
|
|
3.48
|
|
3.11
|
|
|
|
Efficiency ratio
(3)
|
63.57
|
|
59.51
|
|
58.25
|
|
62.01
|
|
66.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (in millions, end of
period)
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
12,090
|
|
$
12,320
|
|
$
11,663
|
|
$
11,317
|
|
$
11,579
|
|
|
|
Total earning
assets
|
11,370
|
|
11,615
|
|
10,913
|
|
10,604
|
|
10,849
|
|
|
|
Total loans
|
8,882
|
|
8,682
|
|
8,335
|
|
7,943
|
|
7,803
|
|
|
|
Total
deposits
|
10,068
|
|
10,068
|
|
10,327
|
|
9,988
|
|
10,115
|
|
|
|
Loans/deposits
(%)
|
88
|
%
|
86
|
%
|
81
|
%
|
80
|
%
|
77
|
%
|
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
$
(186)
|
|
$ (159)
|
|
$
(181)
|
|
$
(188)
|
|
$
(123)
|
|
|
|
Total shareholders'
equity
|
973
|
|
995
|
|
954
|
|
943
|
|
1,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses, (millions)
|
$
100
|
|
$
98
|
|
$
96
|
|
$
96
|
|
$
99
|
|
|
|
Net charge-offs,
(millions)
|
(6)
|
|
(7)
|
|
(12)
|
|
(6)
|
|
(0)
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.26
|
%
|
0.32
|
%
|
0.58
|
%
|
0.30
|
%
|
0.02
|
%
|
|
|
Provision
(benefit)/expense, (millions)
|
$
8
|
|
$
9
|
|
$
12
|
|
$
3
|
|
$
-
|
|
|
|
Non-performing assets,
(millions)
|
31
|
|
29
|
|
33
|
|
40
|
|
29
|
|
|
|
Non-performing
loans/total loans
|
0.32
|
%
|
0.31
|
%
|
0.37
|
%
|
0.48
|
%
|
0.34
|
%
|
|
|
Allowance for credit
losses/non-performing loans
|
353
|
|
363
|
|
309
|
|
254
|
|
368
|
|
|
|
Allowance for credit
losses/total loans
|
1.13
|
|
1.13
|
|
1.15
|
|
1.21
|
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets,
(millions)(6)
|
$ 9,518
|
|
$ 9,454
|
|
$ 9,151
|
|
$ 8,823
|
|
$ 8,718
|
|
|
|
Common equity Tier 1
capital to risk weighted assets (6)
|
12.1
|
%
|
12.1
|
%
|
12.4
|
%
|
12.7
|
%
|
13.0
|
%
|
|
|
Tier 1 capital leverage
ratio (6)
|
9.6
|
|
9.9
|
|
10.2
|
|
10.1
|
|
10.2
|
|
|
|
Tangible common
shareholders' equity/tangible assets (3)
|
7.9
|
|
7.9
|
|
8.0
|
|
8.1
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
All financial tables
presented are unaudited.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Reconciliations of
non-GAAP financial measures, including all references to operating
and tangible amounts, appear on pages 12 and 13.
|
|
(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 pages 12
and 13 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 June 30, 2023 and actual for the remaining periods.
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
|
|
June 30,
|
March 31,
|
December
31,
|
June 30,
|
(in thousands)
|
2023
|
2023
|
2022
|
2022
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
120,285
|
$
121,589
|
$
145,342
|
$
156,470
|
Short-term
investments
|
520,315
|
884,973
|
540,013
|
714,547
|
Total cash and cash
equivalents
|
640,600
|
1,006,562
|
685,355
|
871,017
|
|
|
|
|
|
Trading securities, at
fair value
|
6,405
|
6,584
|
6,708
|
7,040
|
Equity securities, at
fair value
|
12,868
|
13,072
|
12,856
|
14,154
|
Securities available
for sale, at fair value
|
1,340,331
|
1,407,271
|
1,423,200
|
1,697,019
|
Securities held to
maturity, at amortized cost
|
563,765
|
574,606
|
583,453
|
602,611
|
Federal Home Loan Bank
stock
|
34,714
|
44,245
|
7,219
|
9,365
|
Total
securities
|
1,958,083
|
2,045,778
|
2,033,436
|
2,330,189
|
Less: Allowance for
credit losses on investment securities
|
(71)
|
(71)
|
(91)
|
(94)
|
Net
securities
|
1,958,012
|
2,045,707
|
2,033,345
|
2,330,095
|
|
|
|
|
|
Loans held for
sale
|
8,708
|
1,906
|
4,311
|
1,062
|
|
|
|
|
|
Commercial real estate
loans
|
4,315,202
|
4,231,510
|
4,095,079
|
3,919,678
|
Commercial and
industrial loans
|
1,464,922
|
1,553,340
|
1,473,316
|
1,471,446
|
Residential
mortgages
|
2,584,959
|
2,369,614
|
2,216,410
|
1,819,341
|
Consumer
loans
|
517,319
|
527,503
|
550,504
|
592,986
|
Total loans
|
8,882,402
|
8,681,967
|
8,335,309
|
7,803,451
|
Less: Allowance for
credit losses on loans
|
(100,219)
|
(97,991)
|
(96,270)
|
(99,021)
|
Net loans
|
8,782,183
|
8,583,976
|
8,239,039
|
7,704,430
|
|
|
|
|
|
Premises and equipment,
net
|
76,903
|
78,710
|
85,217
|
89,657
|
Other intangible
assets
|
22,074
|
23,279
|
24,483
|
27,046
|
Other assets
|
593,621
|
571,616
|
587,854
|
550,275
|
Assets held for
sale
|
8,220
|
8,220
|
3,260
|
5,386
|
Total assets
|
$
12,090,321
|
$
12,319,976
|
$
11,662,864
|
$
11,578,968
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
Non-interest bearing
deposits
|
$
2,594,528
|
$
2,650,937
|
$
2,852,127
|
$
2,921,347
|
NOW and other
deposits
|
944,775
|
959,417
|
1,054,596
|
2,247,544
|
Money market
deposits
|
3,005,081
|
3,274,630
|
3,723,570
|
2,327,004
|
Savings
deposits
|
1,088,405
|
1,069,915
|
1,063,269
|
1,143,352
|
Time
deposits
|
2,435,618
|
2,112,646
|
1,633,707
|
1,475,417
|
Total
deposits
|
10,068,407
|
10,067,545
|
10,327,269
|
10,114,664
|
|
|
|
|
|
Federal Home Loan Bank
advances
|
674,345
|
904,395
|
4,445
|
58,542
|
Subordinated
borrowings
|
121,238
|
121,176
|
121,064
|
195,659
|
Total
borrowings
|
795,583
|
1,025,571
|
125,509
|
254,201
|
|
|
|
|
|
Other
liabilities
|
252,950
|
231,380
|
256,024
|
196,053
|
Total
liabilities
|
11,116,940
|
11,324,496
|
10,708,802
|
10,564,918
|
|
|
|
|
|
Common shareholders'
equity
|
973,381
|
995,480
|
954,062
|
1,014,050
|
Total shareholders'
equity
|
973,381
|
995,480
|
954,062
|
1,014,050
|
Total liabilities and
shareholders' equity
|
$
12,090,321
|
$
12,319,976
|
$
11,662,864
|
$
11,578,968
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
(in thousands, except per share
data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Interest
income
|
$
145,425
|
|
$
87,379
|
|
$
277,741
|
|
$
162,202
|
Interest
expense
|
52,666
|
|
6,021
|
|
87,449
|
|
11,781
|
Net interest income,
non FTE
|
92,759
|
|
81,358
|
|
190,292
|
|
150,421
|
Non-interest income
|
|
|
|
|
|
|
|
Deposit related
fees
|
8,571
|
|
8,005
|
|
16,882
|
|
15,356
|
Loan fees and
other
|
3,189
|
|
1,113
|
|
5,658
|
|
6,052
|
Gain on SBA loan
sales
|
2,910
|
|
3,619
|
|
5,404
|
|
6,964
|
Wealth management
fees
|
2,583
|
|
2,775
|
|
5,322
|
|
5,400
|
Other
|
(137)
|
|
1,812
|
|
222
|
|
4,978
|
Total non-interest
income excluding (losses)/gains
|
17,116
|
|
17,324
|
|
33,488
|
|
38,750
|
Fair value adjustments
on securities
|
(22)
|
|
(973)
|
|
212
|
|
(1,718)
|
Total non-interest
income
|
17,094
|
|
16,351
|
|
33,700
|
|
37,032
|
Total net revenue
|
109,853
|
|
97,709
|
|
223,992
|
|
187,453
|
|
|
|
|
|
|
|
|
Provision
expense/(benefit) for credit losses
|
8,000
|
|
-
|
|
16,999
|
|
(4,000)
|
Non-interest expense
|
|
|
|
|
|
|
|
Compensation and
benefits
|
39,960
|
|
37,830
|
|
79,031
|
|
75,351
|
Occupancy and
equipment
|
8,970
|
|
9,438
|
|
18,349
|
|
19,505
|
Technology and
communications
|
10,465
|
|
8,611
|
|
19,936
|
|
17,138
|
Professional
services
|
2,526
|
|
2,913
|
|
5,803
|
|
5,605
|
Other
expenses
|
12,106
|
|
9,648
|
|
22,899
|
|
19,373
|
Merger, restructuring
and other non-operating expenses
|
21
|
|
35
|
|
(15)
|
|
53
|
Total non-interest
expense
|
74,048
|
|
68,475
|
|
146,003
|
|
137,025
|
Total non-interest
expense excluding merger, restructuring and other
|
74,027
|
|
68,440
|
|
146,018
|
|
136,972
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
27,805
|
|
$
29,234
|
|
$
60,990
|
|
$
54,428
|
Income tax
expense
|
3,944
|
|
6,119
|
|
9,492
|
|
11,117
|
Net income
|
$
23,861
|
|
$
23,115
|
|
$
51,498
|
|
$
43,311
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
$
0.55
|
|
$
0.50
|
|
$
1.18
|
|
$
0.93
|
Diluted earnings per common
share
|
$
0.55
|
|
$
0.50
|
|
$
1.18
|
|
$
0.92
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
43,443
|
|
45,818
|
|
43,564
|
|
46,733
|
Diluted
|
43,532
|
|
46,102
|
|
43,780
|
|
47,074
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter
Trend)
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
(in thousands, except per share
data)
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
Interest
income
|
|
$
145,425
|
|
$
132,316
|
|
$
121,384
|
|
$
103,671
|
|
$ 87,379
|
Interest
expense
|
|
52,666
|
|
34,783
|
|
19,292
|
|
11,587
|
|
6,021
|
Net interest income,
non FTE
|
|
92,759
|
|
97,533
|
|
102,092
|
|
92,084
|
|
81,358
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
Deposit related
fees
|
|
8,571
|
|
8,311
|
|
8,293
|
|
8,377
|
|
8,005
|
Loan fees and
other
|
|
3,189
|
|
2,469
|
|
2,123
|
|
1,292
|
|
1,113
|
Gain on SBA loan
sales
|
|
2,910
|
|
2,494
|
|
2,979
|
|
2,551
|
|
3,619
|
Wealth management
fees
|
|
2,583
|
|
2,739
|
|
2,255
|
|
2,353
|
|
2,775
|
Other
|
|
(137)
|
|
359
|
|
(159)
|
|
2,154
|
|
1,812
|
Total non-interest
income excluding (losses)/gains
|
17,116
|
|
16,372
|
|
15,491
|
|
16,727
|
|
17,324
|
Fair value adjustments
on securities
|
|
(22)
|
|
234
|
|
163
|
|
(476)
|
|
(973)
|
Total non-interest
income
|
|
17,094
|
|
16,606
|
|
15,654
|
|
16,251
|
|
16,351
|
Total net revenue
|
|
109,853
|
|
114,139
|
|
117,746
|
|
108,335
|
|
97,709
|
|
|
|
|
|
|
|
|
|
|
|
Provision
expense/(benefit) for credit losses
|
|
8,000
|
|
8,999
|
|
12,000
|
|
3,000
|
|
-
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
39,960
|
|
39,071
|
|
37,968
|
|
39,422
|
|
37,830
|
Occupancy and
equipment
|
|
8,970
|
|
9,379
|
|
9,431
|
|
8,702
|
|
9,438
|
Technology and
communications
|
|
10,465
|
|
9,471
|
|
9,729
|
|
8,719
|
|
8,611
|
Professional
services
|
|
2,526
|
|
3,277
|
|
3,153
|
|
3,285
|
|
2,913
|
Other
expenses
|
|
12,106
|
|
10,793
|
|
12,350
|
|
10,076
|
|
9,648
|
Merger, restructuring
and other non-operating expenses
|
21
|
|
(36)
|
|
(2,617)
|
|
11,473
|
|
35
|
Total non-interest
expense
|
|
74,048
|
|
71,955
|
|
70,014
|
|
81,677
|
|
68,475
|
Total non-interest
expense excluding merger, restructuring and other
|
74,027
|
|
71,991
|
|
72,631
|
|
70,204
|
|
68,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
$
27,805
|
|
$ 33,185
|
|
$ 35,732
|
|
$ 23,658
|
|
$ 29,234
|
Income tax
expense
|
|
3,944
|
|
5,548
|
|
5,227
|
|
4,941
|
|
6,119
|
Net income
|
|
$
23,861
|
|
$ 27,637
|
|
$ 30,505
|
|
$ 18,717
|
|
$
23,115
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share
|
|
$
0.55
|
|
$
0.63
|
|
$
0.69
|
|
$
0.42
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
43,443
|
|
43,693
|
|
44,105
|
|
44,700
|
|
45,818
|
Diluted
|
|
43,532
|
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS
BANCORP, INC.
AVERAGE BALANCES AND AVERAGE YIELDS AND
COSTS
|
|
Quarters
Ended
|
|
|
June 30, 2023
|
|
March 31,
2023
|
|
June 30,
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
|
|
4,283
|
67
|
6.16
|
%
|
4,166
|
61
|
5.88
|
%
|
3,831
|
37
|
3.79
|
%
|
Commercial and
industrial loans
|
1,496
|
27
|
7.27
|
|
|
1,527
|
26
|
6.92
|
|
|
1,447
|
16
|
4.46
|
|
|
Residential
mortgages
|
|
2,488
|
24
|
3.87
|
|
|
2,283
|
21
|
3.70
|
|
|
1,652
|
15
|
3.57
|
|
|
Consumer
loans
|
|
524
|
9
|
7.28
|
|
|
539
|
10
|
7.24
|
|
|
562
|
8
|
5.41
|
|
|
Total loans
|
|
8,791
|
127
|
5.77
|
|
|
8,515
|
118
|
5.57
|
|
|
7,492
|
75
|
3.99
|
|
|
Securities
(2)
|
|
2,236
|
13
|
2.27
|
|
|
2,261
|
13
|
2.23
|
|
|
2,621
|
13
|
1.97
|
|
|
Short-term investments
and loans HFS
|
560
|
7
|
4.94
|
|
|
313
|
3
|
4.24
|
|
|
476
|
1
|
0.57
|
|
|
Total earning assets
|
|
11,587
|
147
|
5.05
|
|
|
11,089
|
134
|
4.85
|
|
|
10,589
|
89
|
3.34
|
|
|
Goodwill and other
intangible assets
|
22
|
|
|
|
|
24
|
|
|
|
|
27
|
|
|
|
|
Other assets
|
|
665
|
|
|
|
|
692
|
|
|
|
|
644
|
|
|
|
|
Total assets
|
|
12,274
|
|
|
|
|
11,805
|
|
|
|
|
11,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
2,594
|
-
|
-
|
%
|
2,706
|
-
|
-
|
%
|
2,903
|
-
|
-
|
%
|
NOW and
other
|
|
1,055
|
4
|
1.35
|
|
|
1,456
|
6
|
1.64
|
|
|
1,454
|
-
|
0.12
|
|
|
Money market
|
|
2,555
|
14
|
2.13
|
|
|
2,659
|
10
|
1.59
|
|
|
2,811
|
2
|
0.19
|
|
|
Savings
|
|
1,077
|
-
|
0.50
|
|
|
1,047
|
-
|
0.10
|
|
|
1,127
|
-
|
0.03
|
|
|
Time
|
|
2,287
|
18
|
3.07
|
|
|
1,808
|
10
|
2.13
|
|
|
1,460
|
2
|
0.64
|
|
|
Total cost deposits
|
|
9,568
|
36
|
1.51
|
|
|
9,676
|
26
|
1.09
|
|
|
9,755
|
4
|
0.17
|
|
|
Borrowings
(3)
|
|
1,288
|
17
|
5.14
|
|
|
688
|
9
|
5.06
|
|
|
160
|
2
|
4.61
|
|
|
Total funding liabilities
|
|
10,856
|
53
|
1.94
|
|
|
10,364
|
35
|
1.36
|
|
|
9,915
|
6
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
197
|
|
|
|
|
227
|
|
|
|
|
163
|
|
|
|
|
Total liabilities
|
|
11,053
|
|
|
|
|
10,591
|
|
|
|
|
10,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
1,221
|
|
|
|
|
1,214
|
|
|
|
|
1,182
|
|
|
|
|
Total shareholders' equity
|
1,221
|
|
|
|
|
1,214
|
|
|
|
|
1,182
|
|
|
|
|
Total liabilities and shareholders'
equity
|
12,274
|
|
|
|
|
11,805
|
|
|
|
|
11,260
|
|
|
|
|
Net interest margin, FTE
|
|
|
3.24
|
|
|
|
|
3.58
|
|
|
|
|
3.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
non-maturity deposits
|
7,281
|
|
|
|
|
7,868
|
|
|
|
|
8,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income,
non FTE
|
92.759
|
|
|
|
|
97.533
|
|
|
|
|
81.358
|
|
|
|
|
FTE income
adjustment
|
|
1.962
|
|
|
|
|
1.908
|
|
|
|
|
1.560
|
|
|
|
|
Net Interest Income, FTE
|
94.721
|
|
|
|
|
99.441
|
|
|
|
|
82.918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
(in thousands)
|
2023
|
2023
|
2022
|
2022
|
2022
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
1,509
|
|
$
2,546
|
|
$
2,434
|
|
$
2,976
|
|
$
8,277
|
|
Commercial and
industrial loans
|
15,597
|
|
12,155
|
|
17,023
|
|
21,008
|
|
4,891
|
|
Residential
mortgages
|
8,728
|
|
9,442
|
|
8,612
|
|
10,407
|
|
10,331
|
|
Consumer
loans
|
2,565
|
|
2,848
|
|
3,045
|
|
3,463
|
|
3,385
|
|
Total non-performing
loans
|
28,399
|
|
26,991
|
|
31,114
|
|
37,854
|
|
26,884
|
|
Repossessed
assets
|
2,549
|
|
2,462
|
|
2,209
|
|
2,175
|
|
2,004
|
|
Total non-performing
assets
|
$
30,948
|
|
$
29,453
|
|
$
33,323
|
|
$
40,029
|
|
$
28,888
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans/total loans
|
0.32 %
|
|
0.31 %
|
|
0.37 %
|
|
0.48 %
|
|
0.34 %
|
|
Total non-performing
assets/total assets
|
0.26 %
|
|
0.24 %
|
|
0.29 %
|
|
0.35 %
|
|
0.25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON
LOANS
|
|
|
|
|
|
Balance at beginning of
period
|
$
97,991
|
|
$
96,270
|
|
$
96,013
|
|
$
99,021
|
|
$
99,475
|
|
Adoption of ASU No.
2022-02
|
-
|
|
(401)
|
|
-
|
|
-
|
|
-
|
|
Balance after adoption
of ASU No. 2022-02
|
97,991
|
|
95,869
|
|
96,013
|
|
99,021
|
|
99,475
|
|
Charged-off
loans
|
(7,686)
|
|
(7,936)
|
|
(12,995)
|
|
(7,424)
|
|
(1,593)
|
|
Recoveries on
charged-off loans
|
1,914
|
|
1,059
|
|
1,252
|
|
1,416
|
|
1,139
|
|
Net loans
charged-off
|
(5,772)
|
|
(6,877)
|
|
(11,743)
|
|
(6,008)
|
|
(454)
|
|
Provision
(benefit)/expense for loan credit losses
|
8,000
|
|
8,999
|
|
12,000
|
|
3,000
|
|
-
|
|
Balance at end of
period
|
$
100,219
|
|
$
97,991
|
|
$
96,270
|
|
$
96,013
|
|
$
99,021
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses/total loans
|
1.13 %
|
|
1.13 %
|
|
1.15 %
|
|
1.21 %
|
|
1.27 %
|
|
Allowance for credit
losses/non-performing loans
|
353 %
|
|
363 %
|
|
309 %
|
|
254 %
|
|
368 %
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
664
|
|
$
122
|
|
$
187
|
|
$
(854)
|
|
$
(76)
|
|
Commercial and
industrial loans
|
(4,146)
|
|
(5,695)
|
|
(10,914)
|
|
(4,931)
|
|
(237)
|
|
Residential
mortgages
|
(143)
|
|
305
|
|
192
|
|
122
|
|
(30)
|
|
Home equity
|
126
|
|
16
|
|
(128)
|
|
1
|
|
33
|
|
Auto and other
consumer
|
(2,273)
|
|
(1,625)
|
|
(1,080)
|
|
(346)
|
|
(144)
|
|
Total, net
|
$
(5,772)
|
|
$
(6,877)
|
|
$
(11,743)
|
|
$
(6,008)
|
|
$
(454)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD
annualized)/average loans
|
0.26 %
|
|
0.32 %
|
|
0.58 %
|
|
0.30 %
|
|
0.02 %
|
|
Net charge-offs (YTD
annualized)/average loans
|
0.29 %
|
|
0.32 %
|
|
0.27 %
|
|
0.16 %
|
|
0.08 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
15,147
|
0.17 %
|
$
14,210
|
0.16 %
|
$
12,162
|
0.15 %
|
$
14,662
|
0.18 %
|
$
36,184
|
0.46 %
|
90+ Days delinquent and
still accruing
|
7,812
|
0.09 %
|
6,937
|
0.08 %
|
7,038
|
0.08 %
|
6,285
|
0.08 %
|
6,760
|
0.09 %
|
Total accruing
delinquent loans
|
22,959
|
0.26 %
|
21,147
|
0.24 %
|
19,200
|
0.23 %
|
20,947
|
0.26 %
|
42,944
|
0.55 %
|
Non-performing
loans
|
28,399
|
0.32 %
|
26,991
|
0.31 %
|
31,114
|
0.37 %
|
37,854
|
0.48 %
|
26,884
|
0.34 %
|
Total delinquent and
non-performing loans
|
$
51,358
|
0.58 %
|
$
48,138
|
0.55 %
|
$
50,314
|
0.60 %
|
$
58,801
|
0.74 %
|
$
69,828
|
0.89 %
|
BERKSHIRE HILLS
BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(in thousands)
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Total non-interest
income
|
|
|
$ 17,094
|
|
$ 16,606
|
|
$ 15,654
|
|
$
16,251
|
|
$
16,351
|
|
Adj: Fair value
adjustments on securities (1)
|
|
-
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
Total operating
non-interest income (2)
|
|
|
$ 17,094
|
|
$ 16,606
|
|
$ 15,491
|
|
$
16,727
|
|
$
17,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
109,853
|
|
$
114,139
|
|
$
117,746
|
|
$108,335
|
|
$
97,709
|
|
Adj: Fair value
adjustments on securities (1)
|
|
-
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
Total operating
revenue (2)
|
(B)
|
|
$
109,853
|
|
$
114,139
|
|
$
117,583
|
|
$108,811
|
|
$
98,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$ 74,048
|
|
$ 71,955
|
|
$ 70,014
|
|
$
81,677
|
|
$
68,475
|
|
Adj: Merger,
restructuring and other non-operating expenses
|
(21)
|
|
36
|
|
2,617
|
|
(11,473)
|
|
(35)
|
|
Operating non-interest
expense (2)
|
(D)
|
|
$ 74,027
|
|
$ 71,991
|
|
$ 72,631
|
|
$
70,204
|
|
$
68,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$ 35,805
|
|
$ 42,184
|
|
$ 47,732
|
|
$
26,658
|
|
$
29,234
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (2)
|
(B-D)
|
|
35,826
|
|
42,148
|
|
44,952
|
|
38,607
|
|
30,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$ 23,861
|
|
$ 27,637
|
|
$ 30,505
|
|
$
18,717
|
|
$
23,115
|
|
Adj: Fair value
adjustments on securities (1)
|
|
-
|
|
-
|
|
(163)
|
|
476
|
|
973
|
|
Adj: Restructuring
expense and other non-operating expenses
|
21
|
|
(36)
|
|
(2,617)
|
|
11,473
|
|
35
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
(4)
|
|
7
|
|
529
|
|
(2,738)
|
|
(561)
|
|
Total operating
income (2)
|
(E)
|
|
$ 23,878
|
|
$ 27,608
|
|
$ 28,254
|
|
$
27,928
|
|
$
23,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$ 12,274
|
|
$ 11,805
|
|
$ 11,321
|
|
$
11,315
|
|
$
11,260
|
|
Total average
shareholders'
equity
|
(G)
|
|
1,221
|
|
1,214
|
|
1,213
|
|
1,189
|
|
1,182
|
|
Total average tangible
shareholders' equity (2)
|
(H)
|
|
1,198
|
|
1,190
|
|
1,188
|
|
1,164
|
|
1,155
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
(186)
|
|
(159)
|
|
(181)
|
|
(188)
|
|
(123)
|
|
Total tangible
shareholders' equity, end of period (2)
|
(J)
|
|
951
|
|
972
|
|
930
|
|
917
|
|
987
|
|
Total tangible assets,
end of period (2)
|
(L)
|
|
12,068
|
|
12,297
|
|
11,638
|
|
11,291
|
|
11,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
44,033
|
|
44,411
|
|
44,361
|
|
45,040
|
|
45,788
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
43,532
|
|
44,036
|
|
44,484
|
|
45,034
|
|
46,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per
common share, diluted (2)
|
|
$
0.55
|
|
$
0.63
|
|
$
0.69
|
|
$ 0.42
|
|
$ 0.50
|
|
Operating earnings per
common share, diluted (2)
|
(E/N)
|
|
0.55
|
|
0.63
|
|
0.64
|
|
0.62
|
|
0.51
|
|
Tangible book value per
common share, end of period (2)
|
(J/M)
|
|
21.60
|
|
21.89
|
|
20.95
|
|
20.36
|
|
21.56
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
|
7.88
|
|
7.91
|
|
7.99
|
|
8.12
|
|
8.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on
equity
|
|
|
7.82
|
%
|
9.11
|
%
|
10.06
|
%
|
6.30
|
|
7.82
|
%
|
Operating return on
equity (2)
|
(E/G)
|
|
7.82
|
|
9.10
|
|
9.32
|
|
9.40
|
|
7.97
|
|
Return on tangible
common equity (2)(4)
|
|
|
8.26
|
|
9.59
|
|
10.59
|
|
6.76
|
|
8.33
|
|
Operating return on
tangible common equity (2)(4)
|
(E+Q)/(H)
|
|
8.27
|
|
9.59
|
|
9.83
|
|
9.92
|
|
8.48
|
|
GAAP return on
assets
|
|
|
0.78
|
|
0.94
|
|
1.08
|
|
0.66
|
|
0.82
|
|
Operating return on
assets (2)
|
(E/F)
|
|
0.78
|
|
0.94
|
|
1.00
|
|
0.99
|
|
0.84
|
|
Efficiency ratio
(2)
|
(D-Q)/(B+O+R)
|
|
63.57
|
|
59.51
|
|
58.25
|
|
62.01
|
|
66.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (5)
|
(O)
|
|
$
2,735
|
|
$
2,897
|
|
$
3,068
|
|
$ 620
|
|
$ 595
|
|
Non-interest income
tax-credit investments amortization (6)
|
(P)
|
|
(2,210)
|
|
(2,285)
|
|
(2,355)
|
|
(445)
|
|
(351)
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
525
|
|
612
|
|
713
|
|
175
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
1,205
|
|
$
1,205
|
|
$
1,277
|
|
$
1,285
|
|
$
1,286
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
1,962
|
|
1,908
|
|
1,845
|
|
1,715
|
|
1,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Starting March 31,
2023, fair value adjustments on securities are included in
operating income.
|
|
(2) Non-GAAP financial
measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) 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.
|
(4) Amortization of
intangible assets is adjusted assuming a 27% marginal tax
rate.
|
|
|
|
|
|
(5) The tax benefit is
the direct reduction to the income tax provision due to tax credit
investments.
|
|
(6) The non-interest
income amortization is the reduction to the tax-advantaged
investments and are incurred as the tax credits are
generated.
|
BERKSHIRE HILLS
BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA- UNAUDITED
|
|
|
At or for the Six
Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
(in thousands)
|
|
|
2023
|
|
2022
|
|
Total non-interest
income
|
|
|
$
33,700
|
|
$
37,032
|
|
Adj: Fair value
adjustments on securities (1)
|
|
|
-
|
|
1,718
|
|
Total operating
non-interest income (2)
|
|
|
$
33,700
|
|
$
38,750
|
|
|
|
|
|
|
|
|
Total
revenue
|
(A)
|
|
$
223,992
|
|
$
187,453
|
|
Adj: Fair value
adjustments on securities (1)
|
|
|
-
|
|
1,718
|
|
Total operating
revenue (2)
|
(B)
|
|
$
223,992
|
|
$
189,171
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
(C)
|
|
$
146,003
|
|
$
137,025
|
|
Less: Merger,
restructuring and other non-operating expenses
|
15
|
|
(53)
|
|
Operating non-interest
expense (2)
|
(D)
|
|
$
146,018
|
|
$
136,972
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue (PPNR)
|
(A-C)
|
|
$
77,989
|
|
$
50,428
|
|
Operating pre-tax,
pre-provision net revenue (PPNR) (2)
|
(B-D)
|
|
77,974
|
|
52,199
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
51,498
|
|
$
43,311
|
|
Adj: Fair value
adjustments on securities (1)
|
|
|
-
|
|
1,718
|
|
Adj: Restructuring
expense and other non-operating expenses
|
(15)
|
|
53
|
|
Adj: Income taxes
(expense)/benefit
|
|
|
3
|
|
(731)
|
|
Total operating
income (2)
|
(E)
|
|
$
51,486
|
|
$
44,351
|
|
|
|
|
|
|
|
|
(in millions, except per share
data)
|
|
|
|
|
|
|
Total average
assets
|
(F)
|
|
$
12,040
|
|
$
11,376
|
|
Total average
shareholders'
equity
|
(G)
|
|
1,217
|
|
1,185
|
|
Total average tangible
shareholders' equity (2)
|
(H)
|
|
1,194
|
|
1,157
|
|
Total accumulated other
comprehensive (loss) net of tax, end of period
|
(186)
|
|
(123)
|
|
Total tangible
shareholders' equity, end of period (2)
|
(J)
|
|
951
|
|
987
|
|
Total tangible assets,
end of period (2)
|
(L)
|
|
12,068
|
|
11,552
|
|
|
|
|
|
|
|
|
Total common shares
outstanding, end of period
(thousands)
|
(M)
|
|
44,033
|
|
45,788
|
|
Average diluted shares
outstanding (thousands)
|
(N)
|
|
43,780
|
|
47,074
|
|
|
|
|
|
|
|
|
GAAP earnings/(loss)
per common share, diluted (2)
|
|
$
1.18
|
|
$
0.92
|
|
Operating earnings per
common share, diluted (2)
|
(E/N)
|
|
1.18
|
|
0.94
|
|
Tangible book value per
common share, end of period (2)
|
(J/M)
|
|
21.60
|
|
21.56
|
|
Total tangible
shareholders' equity/total tangible assets (2)
|
(J/L)
|
|
7.88
|
|
8.54
|
|
|
|
|
|
|
|
|
Performance ratios (3)
|
|
|
|
|
|
|
GAAP return on
equity
|
|
|
8.46
|
%
|
7.31
|
%
|
Operating return on
equity (2)
|
(E/G)
|
|
8.46
|
|
7.49
|
|
Return on tangible
common equity (2)(4)
|
|
|
8.92
|
|
7.81
|
|
Operating return on
tangible common equity (2)(4)
|
(E+Q)/(H)
|
|
8.92
|
|
7.99
|
|
GAAP return on
assets
|
|
|
0.86
|
|
0.76
|
|
Operating return on
assets (2)
|
(E/F)
|
|
0.86
|
|
0.78
|
|
Efficiency ratio
(2)
|
(D-Q)/(B+O+R)
|
|
61.50
|
|
69.48
|
|
Net interest margin,
FTE
|
|
|
3.40
|
|
2.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data (in thousands)
|
|
|
|
|
|
|
Tax benefit on
tax-credit investments (5)
|
(O)
|
|
$
5,632
|
|
$
1,191
|
|
Non-interest income
charge on tax-credit investments (6)
|
(P)
|
|
(4,495)
|
|
(708)
|
|
Net income on
tax-credit investments
|
(O+P)
|
|
1,137
|
|
483
|
|
|
|
|
|
|
|
|
Intangible
amortization
|
(Q)
|
|
$
2,410
|
|
$
2,572
|
|
Fully taxable
equivalent income adjustment
|
(R)
|
|
3,869
|
|
3,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Starting March 31,
2023, fair value adjustments on securities are included in
operating income.
|
|
(2) Non-GAAP financial
measure.
|
|
|
|
|
|
|
(3) 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.
|
(4) Amortization of
intangible assets is adjusted assuming a 27% marginal tax
rate.
|
|
(5) The tax benefit is
the direct reduction to the income tax provision due to tax credit
investments.
|
(6) The non-interest
income amortization is the reduction to the tax-advantaged
investments and are incurred as the tax credits are
generated.
|
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SOURCE Berkshire Hills Bancorp, Inc.