PITTSFIELD, Mass., July 23, 2014 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) reported a 5% increase in core earnings per share to $0.44 in the second quarter of 2014 from $0.42 in the prior quarter. Core earnings growth reflected the benefits of the first quarter branch acquisition combined with strong second quarter loan growth.
Second quarter GAAP EPS totaled $0.46 per share, reflecting the benefit of the lower GAAP tax rate. The first quarter branch purchase contributed to net non-core charges totaling $0.46 per share in that period, resulting in a $0.04 per share first quarter GAAP loss. There were no material non-core adjustments to operating revenue and expense in the second quarter.
SECOND QUARTER FINANCIAL HIGHLIGHTS (income related comparisons are to prior quarter):
- 4% increase in net interest income
- 10% increase in fee income
- 5% increase in total loans, including 7% increase in commercial loans
- 6% increase in deposits
- 3.26% net interest margin
- Flat core non-interest expense; 13% decrease in GAAP expense
- 0.45% non-performing assets/total assets
- 0.31% net loan charge-offs/average loans
CEO Michael Daly stated, "Core EPS grew by 5% in each of the last two quarters, and is now up 10% compared to the fourth quarter of 2013. We are benefiting from the increased core deposits and market presence following our New York branch purchase. Our teams produced strong and balanced growth in loans and fee income across our franchise, while our restructured base of core operating expenses was held flat. Core earnings growth was clean and solid, with less contribution from purchased loan accretion. The benefits of our franchise investment are accumulating and our momentum is good as we pursue further market share and profit growth in the second half of the year."
Mr. Daly continued, "We recently welcomed Bill Ryan to our Board as independent Chairman, following Larry Bossidy in that position. Under Bill's leadership, Banknorth built a high performing regional franchise which was recognized in 2004 by Forbes Magazine as one of 'America's Best Managed Companies'. Bill and I share a vision of the market and investment opportunity for a high-performance locally based bank to serve our New England and New York markets. We are pleased and excited that he has joined our team. We appreciate the many years of distinguished service that Larry Bossidy provided as Chairman, and we look forward to continuing to enjoy his company as an investor and friend of our organization."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of $0.18 per share to shareholders of record at the close of business on August 7, 2014, payable on August 21, 2014. This dividend equates to a 3.1% annualized yield based on the $23.57 average closing price of Berkshire's common stock during the second quarter of 2014.
FINANCIAL CONDITION
Berkshire increased its total assets by $301 million, or 5%, in the most recent quarter, with loan growth funded by deposit growth. At quarter-end, measures of asset quality, liquidity, interest rate sensitivity, and capital remained solid. Tangible book value per share increased by 4% to $16.40 in the second quarter and was up from the start of the year, more than offsetting the dilution from the branch purchase in the first quarter. Total book value per share increased by 2% to $27.49 during the quarter.
Total loans increased by $208 million, or 5%, during the second quarter. This included 8% growth in commercial real estate loans, 4% growth in commercial and industrial loans, 5% growth in consumer loans, and 1% growth in residential mortgages. Commercial real estate loan growth was especially strong and originations accelerated following delays in the winter quarter. C&I loans continue to grow at a double digit annualized rate. Commercial loan growth was recorded across the footprint. Consumer loan growth continued to be concentrated in automobile loans. Residential growth was net of secondary market sales, as these revenues accelerated in the second quarter. Loan growth continues to include the benefit of indirect originations and participations from relationships within the bank's regions. In addition to the loan growth, investment securities increased by $53 million, or 5%, during the quarter due primarily to the purchase of mortgage-backed securities.
Asset quality metrics remained favorable. Annualized net loan charge-offs measured 0.31% of average loans. Quarter-end non-performing assets decreased to 0.45% of total assets and accruing delinquent loans decreased to 0.55% of total loans. The loan loss allowance measured 0.77% of total loans; approximately 20% of quarter-end loans were balances recorded at fair value in recent bank acquisitions.
Total deposits increased by $260 million, or 6%, in the second quarter due to growth in time deposits. This resulted from increased utilization of brokered deposits as a cost efficient alternative to borrowings in order to fund the unusually strong loan growth during the quarter. The cost of funds decreased by 0.05% to 0.51% due to the Company's funding strategies. At midyear, the ratio of loans/deposits stood at 99%, equity/assets measured 10.9%, and tangible equity/assets measured 6.8%.
RESULTS OF OPERATIONS
Second quarter 2014 core earnings totaled $10.9 million or $0.44 per share. Core EPS increased by $0.02, or 5%, from the prior quarter, despite a $0.04 per share decrease in core purchased loan accretion. Earnings growth reflected the combined benefit of the first quarter acquisition of core deposits and the strong loan growth in the second quarter. GAAP earnings totaled $11.5 million or $0.46 per share and included the benefit of the lower GAAP tax rate. The core return on tangible equity improved to 11.3% in the second quarter, while the GAAP return on equity improved to 6.6%.
Total net interest and fee revenue increased by 5% to $58.2 million in the second quarter, from $55.4 million in the prior quarter. Net interest income increased by 4% due primarily to balance sheet growth. Net interest income included purchased loan accretion totaling $1.0 million in the second quarter due to recoveries of purchased impaired loans. The net interest margin before accretion decreased to 3.19% from 3.24% for these periods due to loan yield compression in the ongoing low interest rate environment. Including accretion, the net interest margin decreased from 3.35% to 3.26%. Fee income increased by 10% over the prior quarter, with strong growth in banking fees offsetting seasonal declines in insurance and wealth management fees.
The provision for loan losses increased to $4.0 million in the second quarter from $3.4 million in the prior quarter due to a $0.8 million increase in the loan loss allowance related to growth in total loans.
Core non-interest expense was flat at $39.1 million in the second quarter compared to the first quarter. A seasonal decline in benefits and maintenance expense was offset by costs related to increased business volume. The efficiency ratio improved to 62.96% from 64.42% for these periods due to the positive operating leverage generated by revenue growth. GAAP non-interest expense was $39.3 million and $45.4 million in these respective quarters. The higher GAAP expenses in the first quarter included $6.3 million in merger, restructuring, and conversion expenses primarily related to the branch acquisition. Due to these non-operating costs, the GAAP tax rate was 26% in the second quarter and first half of 2014. The core tax rate was 30% for these periods.
CONFERENCE CALL
Berkshire will conduct a conference call/webcast at 10:00 a.m. eastern time on Thursday, July 24, 2014 to discuss the results for the quarter and provide guidance about expected future results. Participants should dial-in to the call a few minutes before it begins. Information about the conference call follows:
Dial-in: |
888-317-6003 |
Elite Entry Number: |
2985835 |
Webcast: |
berkshirebank.com (investor relations link) |
A PDF version of this earnings release is available at the above link. A telephone replay of the call will be available through Friday, August 1, 2014 by calling 877-344-7529 and entering conference number: 10048732. The webcast will be available at Berkshire's website above for an extended period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank – America's Most Exciting Bank®. The Company has $6.3 billion in assets and 90 full-service branch offices in Massachusetts, New York, Connecticut, and Vermont providing personal and business banking, insurance, and wealth management services.
FORWARD LOOKING STATEMENTS
This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several 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. 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 in the accompanying financial tables. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including securities gains/losses, losses recorded for hedge terminations, merger costs, restructuring costs, systems conversion costs, and out-of-period adjustments. Non-core adjustments are presented net of an adjustment for income tax expense. This adjustment in 2013 was based on the marginal tax rate applied to the net non-core pre-tax adjustments. In 2014, due to the comparative magnitude of the non-core items, this adjustment was determined as the difference between the GAAP tax rate and the effective tax rate applicable to core income. Accordingly, GAAP income exceeded core income in the most recent quarter due to the higher effective full year tax rate on core income before the net non-core charges. The efficiency ratio is adjusted for non-core revenue and expense items and for tax preference items. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community. Charges related to merger and acquisition activity consist primarily of severance/benefit related expenses, contract termination costs, and professional fees. Systems conversion costs relate primarily to the Company's core systems conversion and related systems conversions costs. Restructuring costs primarily consist of employee severance costs and costs and losses associated with the disposition of assets which were undertaken as a project to right-size expenses following a decline in revenue in 2013. Out-of-period accounting adjustments for interest income on acquired loans were recorded following systems conversions and merger related accounting activity and were deemed non-core. Non-core expenses include variable rate compensation related to non-core items.
CONTACTS
Investor Relations Contact
Allison O'Rourke, Vice President - Investor Relations; 413-236-3149
Media Contact
Ray Smith, Assistant Vice President - Marketing; 413-236-3756
BERKSHIRE HILLS BANCORP, INC. |
||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED - (F-1) |
||||||
June 30, |
March 31, |
December 31, |
||||
(In thousands) |
2014 |
2014 |
2013 |
|||
Assets |
||||||
Cash and due from banks |
$ 81,642 |
$ 60,023 |
$ 56,841 |
|||
Short-term investments |
31,236 |
12,650 |
18,698 |
|||
Total cash and short-term investments |
112,878 |
72,673 |
75,539 |
|||
Trading security |
14,971 |
14,923 |
14,840 |
|||
Securities available for sale, at fair value |
1,080,668 |
1,033,637 |
760,048 |
|||
Securities held to maturity, at amortized cost |
43,178 |
43,159 |
44,921 |
|||
Federal Home Loan Bank stock and other restricted securities |
59,479 |
53,124 |
50,282 |
|||
Total securities |
1,198,296 |
1,144,843 |
870,091 |
|||
Loans held for sale, at fair value |
20,185 |
7,669 |
15,840 |
|||
Residential mortgages |
1,397,231 |
1,377,771 |
1,384,274 |
|||
Commercial real estate |
1,579,500 |
1,456,976 |
1,417,120 |
|||
Commercial and industrial loans |
727,959 |
696,895 |
687,293 |
|||
Consumer loans |
745,613 |
710,985 |
691,836 |
|||
Total loans |
4,450,303 |
4,242,627 |
4,180,523 |
|||
Less: Allowance for loan losses |
(34,353) |
(33,602) |
(33,323) |
|||
Net loans |
4,415,950 |
4,209,025 |
4,147,200 |
|||
Premises and equipment, net |
86,936 |
87,805 |
84,459 |
|||
Other real estate owned |
2,445 |
2,418 |
2,758 |
|||
Goodwill |
264,770 |
264,770 |
256,871 |
|||
Other intangible assets |
13,761 |
15,035 |
13,791 |
|||
Cash surrender value of bank-owned life insurance |
102,988 |
102,343 |
101,530 |
|||
Deferred tax asset, net |
37,911 |
40,202 |
50,711 |
|||
Other assets |
55,254 |
63,548 |
54,009 |
|||
Total assets |
$ 6,311,374 |
$ 6,010,331 |
$ 5,672,799 |
|||
Liabilities and stockholders' equity |
||||||
Demand deposits |
$ 794,574 |
$ 770,841 |
$ 677,917 |
|||
NOW deposits |
416,879 |
434,833 |
353,612 |
|||
Money market deposits |
1,425,348 |
1,459,062 |
1,383,856 |
|||
Savings deposits |
478,770 |
478,107 |
431,496 |
|||
Time deposits |
1,362,992 |
1,075,740 |
1,001,648 |
|||
Total deposits |
4,478,563 |
4,218,583 |
3,848,529 |
|||
Senior borrowings |
964,179 |
936,747 |
974,428 |
|||
Subordinated borrowings |
89,713 |
89,696 |
89,679 |
|||
Total borrowings |
1,053,892 |
1,026,443 |
1,064,107 |
|||
Other liabilities |
88,456 |
87,715 |
82,101 |
|||
Total liabilities |
5,620,911 |
5,332,741 |
4,994,737 |
|||
Total stockholders' equity |
690,463 |
677,590 |
678,062 |
|||
Total liabilities and stockholders' equity |
$ 6,311,374 |
$ 6,010,331 |
$ 5,672,799 |
|||
(1) The Company acquired 20 branches in Central New York on January 17, 2014, including $440 million in deposits and $4 million in loans. |
||||||
BERKSHIRE HILLS BANCORP, INC. |
|||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED - (F-2) |
|||||||||||||
LOAN ANALYSIS |
|||||||||||||
Annualized growth % |
|||||||||||||
(Dollars in millions) |
June 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Quarter ended |
Year to date |
||||||||
Total residential mortgages |
$ 1,397 |
$ 1,378 |
$ 1,384 |
6 |
% |
2 |
% |
||||||
Commercial real estate |
1,579 |
1,457 |
1,417 |
33 |
23 |
||||||||
Commercial and industrial loans |
728 |
697 |
688 |
18 |
12 |
||||||||
Total commercial loans |
2,307 |
2,154 |
2,105 |
29 |
19 |
||||||||
Home equity |
310 |
305 |
307 |
7 |
2 |
||||||||
Auto and other |
436 |
406 |
385 |
29 |
26 |
||||||||
Total consumer loans |
746 |
711 |
692 |
19 |
16 |
||||||||
Total loans |
$ 4,450 |
$ 4,243 |
$ 4,181 |
20 |
% |
13 |
% |
||||||
DEPOSIT ANALYSIS |
|||||||||||||
Annualized growth % |
|||||||||||||
(Dollars in millions) |
June 30, 2014 |
Mar. 31, 2014 |
Acquired Balance (1) |
Dec. 31, 2013 |
Quarter ended June 30, 2014 |
||||||||
Demand |
$ 795 |
$ 771 |
$ 110 |
$ 678 |
12 |
% |
|||||||
NOW |
417 |
435 |
80 |
354 |
(17) |
||||||||
Money market |
1,425 |
1,459 |
124 |
1,384 |
(9) |
||||||||
Savings |
479 |
478 |
36 |
431 |
1 |
||||||||
Total non-maturity deposits |
3,116 |
3,143 |
350 |
2,847 |
(3) |
||||||||
Total time deposits |
1,363 |
1,076 |
90 |
1,002 |
107 |
||||||||
Total deposits |
$ 4,479 |
$ 4,219 |
$ 440 |
$ 3,849 |
25 |
% |
|||||||
(1) The Company acquired 20 branches in Central New York on January 17, 2014, including $440 million in deposits, as shown above, and $4 million in loans. Annualized year to date deposit growth not displayed following Q1 deposit acquisition. |
|||||||||||||
BERKSHIRE HILLS BANCORP, INC. |
|||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - (F-3) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
June 30, |
June 30, |
||||||
(In thousands, except per share data) |
2014 |
2013 |
2014 |
2013 |
|||
Interest and dividend income |
|||||||
Loans |
$ 42,309 |
$ 45,443 |
$ 84,803 |
$ 92,524 |
|||
Securities and other |
8,866 |
4,254 |
16,167 |
8,054 |
|||
Total interest and dividend income |
51,175 |
49,697 |
100,970 |
100,578 |
|||
Interest expense |
|||||||
Deposits |
4,478 |
5,052 |
9,199 |
10,415 |
|||
Borrowings |
2,368 |
3,541 |
4,676 |
7,122 |
|||
Total interest expense |
6,846 |
8,593 |
13,875 |
17,537 |
|||
Net interest income |
44,329 |
41,104 |
87,095 |
83,041 |
|||
Non-interest income |
|||||||
Loan related income |
1,846 |
2,644 |
3,094 |
5,361 |
|||
Mortgage banking income |
691 |
2,129 |
1,063 |
4,346 |
|||
Deposit related fees |
6,610 |
4,805 |
12,049 |
9,064 |
|||
Insurance commissions and fees |
2,460 |
2,407 |
5,509 |
5,404 |
|||
Wealth management fees |
2,294 |
2,070 |
4,843 |
4,334 |
|||
Total fee income |
13,901 |
14,055 |
26,558 |
28,509 |
|||
Other |
402 |
546 |
926 |
890 |
|||
Gain on sale of securities, net |
203 |
1,005 |
237 |
1,005 |
|||
Loss on termination of hedges |
- |
- |
(8,792) |
- |
|||
Total non-interest income |
14,506 |
15,606 |
18,929 |
30,404 |
|||
Total net revenue |
58,835 |
56,710 |
106,024 |
113,445 |
|||
Provision for loan losses |
3,989 |
2,700 |
7,385 |
5,100 |
|||
Non-interest expense |
|||||||
Compensation and benefits |
20,279 |
18,151 |
40,138 |
35,892 |
|||
Occupancy and equipment |
6,656 |
5,737 |
13,470 |
11,505 |
|||
Technology and communications |
3,800 |
3,480 |
7,578 |
6,471 |
|||
Marketing and promotion |
621 |
603 |
1,142 |
1,241 |
|||
Professional services |
1,024 |
1,764 |
2,176 |
3,254 |
|||
FDIC premiums and assessments |
1,029 |
890 |
2,038 |
1,718 |
|||
Other real estate owned and foreclosures |
33 |
284 |
556 |
307 |
|||
Amortization of intangible assets |
1,274 |
1,345 |
2,580 |
2,722 |
|||
Merger, restructuring and conversion expenses |
190 |
775 |
6,491 |
5,839 |
|||
Other |
4,357 |
4,906 |
8,454 |
8,469 |
|||
Total non-interest expense |
39,263 |
37,935 |
84,623 |
77,418 |
|||
Income before income taxes |
15,583 |
16,075 |
14,016 |
30,927 |
|||
Income tax expense |
4,119 |
4,038 |
3,658 |
8,425 |
|||
Net income |
$ 11,464 |
$ 12,037 |
$ 10,358 |
$ 22,502 |
|||
Earnings per share: |
|||||||
Basic |
$ 0.46 |
$ 0.49 |
$ 0.42 |
$ 0.91 |
|||
Diluted |
$ 0.46 |
$ 0.48 |
$ 0.42 |
$ 0.90 |
|||
Weighted average shares outstanding: |
|||||||
Basic |
24,715 |
24,779 |
24,707 |
24,863 |
|||
Diluted |
24,809 |
24,956 |
24,821 |
25,049 |
|||
(1) The Company acquired 20 branches in Central New York on January 17, 2014. The income statement for the three months ended March 31, 2014 includes operations of the branch acquisition beginning on that date. |
|||||||
(2) Merger, restructuring and conversion expenses include branch acquisition related expenses. |
|||||||
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - (F-4) |
||||||||||
Quarters Ended |
||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||
(In thousands, except per share data) |
2014 |
2014 |
2013 |
2013 |
2013 |
|||||
Interest and dividend income |
||||||||||
Loans |
$ 42,309 |
$ 42,494 |
$ 43,566 |
$ 50,025 |
$ 45,443 |
|||||
Securities and other |
8,866 |
7,301 |
5,093 |
4,479 |
4,254 |
|||||
Total interest and dividend income |
51,175 |
49,795 |
48,659 |
54,504 |
49,697 |
|||||
Interest expense |
||||||||||
Deposits |
4,478 |
4,721 |
5,166 |
5,278 |
5,052 |
|||||
Borrowings |
2,368 |
2,308 |
3,651 |
3,357 |
3,541 |
|||||
Total interest expense |
6,846 |
7,029 |
8,817 |
8,635 |
8,593 |
|||||
Net interest income |
44,329 |
42,766 |
39,842 |
45,869 |
41,104 |
|||||
Non-interest income |
||||||||||
Loan related income |
1,846 |
1,248 |
1,578 |
1,308 |
2,644 |
|||||
Mortgage banking income |
691 |
372 |
445 |
444 |
2,129 |
|||||
Deposit related fees |
6,610 |
5,439 |
4,717 |
4,559 |
4,805 |
|||||
Insurance commissions and fees |
2,460 |
3,049 |
2,143 |
2,473 |
2,407 |
|||||
Wealth management fees |
2,294 |
2,549 |
2,212 |
2,137 |
2,070 |
|||||
Total fee income |
13,901 |
12,657 |
11,095 |
10,921 |
14,055 |
|||||
Other |
402 |
524 |
1,227 |
832 |
546 |
|||||
Gain on sale of securities, net |
203 |
34 |
3,392 |
361 |
1,005 |
|||||
Loss on termination of hedges |
- |
(8,792) |
- |
- |
- |
|||||
Total non-interest income |
14,506 |
4,423 |
15,714 |
12,114 |
15,606 |
|||||
Total net revenue |
58,835 |
47,189 |
55,556 |
57,983 |
56,710 |
|||||
Provision for loan losses |
3,989 |
3,396 |
3,100 |
3,178 |
2,700 |
|||||
Non-interest expense |
||||||||||
Compensation and benefits |
20,279 |
19,859 |
16,736 |
18,506 |
18,151 |
|||||
Occupancy and equipment |
6,656 |
6,814 |
5,421 |
5,614 |
5,737 |
|||||
Technology and communications |
3,800 |
3,778 |
3,169 |
3,304 |
3,480 |
|||||
Marketing and promotion |
621 |
521 |
765 |
590 |
603 |
|||||
Professional services |
1,024 |
1,152 |
1,558 |
1,757 |
1,764 |
|||||
FDIC premiums and assessments |
1,029 |
1,009 |
899 |
856 |
890 |
|||||
Other real estate owned and foreclosures |
33 |
523 |
255 |
138 |
284 |
|||||
Amortization of intangible assets |
1,274 |
1,306 |
1,239 |
1,307 |
1,345 |
|||||
Merger, restructuring and conversion expenses |
190 |
6,301 |
2,493 |
6,516 |
775 |
|||||
Other |
4,357 |
4,097 |
4,622 |
4,196 |
4,906 |
|||||
Total non-interest expense |
39,263 |
45,360 |
37,157 |
42,784 |
37,935 |
|||||
Income (loss) before income taxes |
15,583 |
(1,567) |
15,299 |
12,021 |
16,075 |
|||||
Income tax expense (benefit) |
4,119 |
(461) |
4,762 |
3,917 |
4,038 |
|||||
Net income (loss) |
$ 11,464 |
$ (1,106) |
$ 10,537 |
$ 8,104 |
$ 12,037 |
|||||
Earnings (losses) per share: |
||||||||||
Basic |
$ 0.46 |
$ (0.04) |
$ 0.43 |
$ 0.33 |
$ 0.49 |
|||||
Diluted |
$ 0.46 |
$ (0.04) |
$ 0.42 |
$ 0.33 |
$ 0.48 |
|||||
Weighted average shares outstanding: |
||||||||||
Basic |
24,715 |
24,698 |
24,701 |
24,748 |
24,779 |
|||||
Diluted |
24,809 |
24,698 |
24,857 |
24,873 |
24,956 |
|||||
(1) See notes on Page F-3 |
||||||||||
BERKSHIRE HILLS BANCORP, INC. |
||||||||||||
ASSET QUALITY ANALYSIS - UNAUDITED - (F-5) |
||||||||||||
At or for the Quarters Ended |
||||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||||
(Dollars in thousands) |
2014 |
2014 |
2013 |
2013 |
2013 |
|||||||
NON-PERFORMING ASSETS |
||||||||||||
Non-accruing loans: |
||||||||||||
Residential mortgages |
$ 5,295 |
$ 6,071 |
$ 7,867 |
$ 8,487 |
$ 5,945 |
|||||||
Commercial real estate |
12,583 |
13,036 |
13,739 |
13,800 |
14,948 |
|||||||
Commercial and industrial loans |
4,821 |
2,411 |
2,356 |
2,753 |
3,481 |
|||||||
Consumer loans |
3,359 |
3,846 |
3,493 |
3,227 |
2,405 |
|||||||
Total non-accruing loans |
26,058 |
25,364 |
27,455 |
28,267 |
26,779 |
|||||||
Other real estate owned |
2,445 |
2,418 |
2,758 |
3,561 |
2,713 |
|||||||
Total non-performing assets |
$ 28,503 |
$ 27,782 |
$ 30,213 |
$ 31,828 |
$ 29,492 |
|||||||
Total non-accruing loans/total loans |
0.59% |
0.60% |
0.66% |
0.70% |
0.69% |
|||||||
Total non-performing assets/total assets |
0.45% |
0.46% |
0.53% |
0.58% |
0.56% |
|||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES |
||||||||||||
Balance at beginning of period |
$ 33,602 |
$ 33,323 |
$ 33,248 |
$ 33,248 |
$ 33,263 |
|||||||
Charged-off loans |
(3,516) |
(3,317) |
(3,462) |
(3,417) |
(3,457) |
|||||||
Recoveries on charged-off loans |
278 |
200 |
437 |
239 |
742 |
|||||||
Net loans charged-off |
(3,238) |
(3,117) |
(3,025) |
(3,178) |
(2,715) |
|||||||
Provision for loan losses |
3,989 |
3,396 |
3,100 |
3,178 |
2,700 |
|||||||
Balance at end of period |
$ 34,353 |
$ 33,602 |
$ 33,323 |
$ 33,248 |
$ 33,248 |
|||||||
Allowance for loan losses/total loans |
0.77% |
0.79% |
0.80% |
0.83% |
0.86% |
|||||||
Allowance for loan losses/non-accruing loans |
132% |
132% |
121% |
118% |
124% |
|||||||
NET LOAN CHARGE-OFFS |
||||||||||||
Residential mortgages |
$ (602) |
$ (1,055) |
$ (564) |
$ (351) |
$ (852) |
|||||||
Commercial real estate |
(1,028) |
(1,105) |
(763) |
(1,480) |
(1,283) |
|||||||
Commercial and industrial loans |
(1,341) |
(215) |
(1,042) |
(940) |
(93) |
|||||||
Home equity |
(51) |
(458) |
45 |
(174) |
(121) |
|||||||
Auto and other consumer |
(216) |
(284) |
(701) |
(233) |
(366) |
|||||||
Total, net |
$ (3,238) |
$ (3,117) |
$ (3,025) |
$ (3,178) |
$ (2,715) |
|||||||
Net charge-offs (QTD annualized)/average loans |
0.31% |
0.30% |
0.31% |
0.32% |
0.27% |
|||||||
Net charge-offs (YTD annualized)/average loans |
0.30% |
0.30% |
0.29% |
0.28% |
0.26% |
|||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS |
||||||||||||
30-89 Days delinquent |
0.34% |
0.37% |
0.51% |
0.42% |
0.70% |
|||||||
90+ Days delinquent and still accruing |
0.21% |
0.22% |
0.22% |
0.29% |
0.40% |
|||||||
Total accruing delinquent loans |
0.55% |
0.59% |
0.73% |
0.71% |
1.10% |
|||||||
Non-accruing loans |
0.59% |
0.60% |
0.66% |
0.70% |
0.69% |
|||||||
Total delinquent and non-accruing loans |
1.14% |
1.19% |
1.39% |
1.41% |
1.79% |
|||||||
BERKSHIRE HILLS BANCORP, INC. |
|||||||||||||
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED - (F-6) |
|||||||||||||
At or for the Quarters Ended |
|||||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
|||||||||
2014 |
2014 |
2013 |
2013 |
2013 |
|||||||||
PER SHARE DATA |
|||||||||||||
Core earnings, diluted |
$ 0.44 |
$ 0.42 |
$ 0.40 |
$ 0.43 |
$ 0.48 |
||||||||
Net earnings, diluted |
0.46 |
(0.04) |
0.42 |
0.33 |
0.48 |
||||||||
Tangible book value |
16.40 |
15.84 |
16.27 |
16.08 |
15.96 |
||||||||
Total book value |
27.49 |
26.99 |
27.08 |
26.98 |
26.82 |
||||||||
Market price at period end |
23.22 |
25.88 |
27.27 |
25.11 |
27.76 |
||||||||
Dividends |
0.18 |
0.18 |
0.18 |
0.18 |
0.18 |
||||||||
PERFORMANCE RATIOS |
|||||||||||||
Core return on assets |
0.71 |
% |
0.71 |
% |
0.73 |
% |
0.81 |
% |
0.92 |
% |
|||
Return on assets |
0.75 |
(0.08) |
0.77 |
0.61 |
0.93 |
||||||||
Core return on equity |
6.32 |
6.02 |
5.87 |
6.29 |
7.13 |
||||||||
Core return on tangible equity |
11.34 |
10.84 |
10.47 |
11.18 |
12.84 |
||||||||
Return on equity |
6.64 |
(0.64) |
6.18 |
4.74 |
7.21 |
||||||||
Net interest margin, fully taxable equivalent |
3.26 |
3.35 |
3.26 |
3.93 |
3.63 |
||||||||
Fee income/Net interest and fee income |
23.87 |
22.84 |
21.78 |
19.23 |
25.48 |
||||||||
Efficiency ratio |
62.96 |
64.42 |
63.21 |
60.98 |
63.05 |
||||||||
GROWTH |
|||||||||||||
Total commercial loans, year-to-date (annualized) |
14 |
% |
9 |
% |
5 |
% |
1 |
% |
(2) |
% |
|||
Total loans, year-to-date (annualized) |
10 |
6 |
5 |
1 |
(6) |
||||||||
Total deposits, year-to-date (annualized) |
12 |
38 |
(6) |
(7) |
(14) |
||||||||
Total net revenues, year-to-date, compared to prior year |
(7) |
(17) |
15 |
24 |
28 |
||||||||
Earnings per share, year-to-date, compared to prior year |
(54) |
(110) |
11 |
11 |
40 |
||||||||
Core earnings per share, year-to-date, compared to prior year |
(15) |
(22) |
(6) |
3 |
11 |
||||||||
FINANCIAL DATA (In millions) |
|||||||||||||
Total assets |
$ 6,311 |
$ 6,010 |
$ 5,673 |
$ 5,450 |
$ 5,224 |
||||||||
Total earning assets |
5,700 |
5,408 |
5,085 |
4,856 |
4,629 |
||||||||
Total loans |
4,450 |
4,243 |
4,181 |
4,024 |
3,871 |
||||||||
Allowance for loan losses |
34 |
34 |
33 |
33 |
33 |
||||||||
Total intangible assets |
279 |
280 |
271 |
272 |
272 |
||||||||
Total deposits |
4,479 |
4,219 |
3,849 |
3,882 |
3,815 |
||||||||
Total stockholders' equity |
690 |
678 |
678 |
673 |
673 |
||||||||
Total core income |
10.9 |
10.4 |
10.0 |
10.7 |
11.9 |
||||||||
Total net income |
11.5 |
(1.1) |
10.5 |
8.1 |
12.0 |
||||||||
ASSET QUALITY RATIOS |
|||||||||||||
Net charge-offs (current quarter annualized)/average loans |
0.31 |
% |
0.30 |
% |
0.31 |
% |
0.32 |
% |
0.27 |
% |
|||
Allowance for loan losses/total loans |
0.77 |
0.79 |
0.80 |
0.83 |
0.86 |
||||||||
CONDITION RATIOS |
|||||||||||||
Stockholders' equity to total assets |
10.94 |
% |
11.27 |
% |
11.95 |
% |
12.35 |
% |
12.88 |
% |
|||
Tangible stockholders' equity to tangible assets |
6.81 |
6.94 |
7.54 |
7.74 |
8.10 |
||||||||
Investments to total assets |
18.99 |
19.05 |
15.34 |
14.48 |
12.85 |
||||||||
Loans/deposits |
99 |
101 |
109 |
104 |
101 |
||||||||
(1) |
Reconciliation of Non-GAAP financial measures, including all references to core and tangible amounts, appear on pages F-9 & F-10. Tangible assets are total assets less total intangible assets. |
||||||||||||
(2) |
All performance ratios are annualized and are based on average balance sheet amounts, where applicable. |
||||||||||||
(3) |
See note on tangible equity on pages F-9 & F-10. |
||||||||||||
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
AVERAGE BALANCES - UNAUDITED - (F-7) |
||||||||||
Quarters Ended |
||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||
(In thousands) |
2014 |
2014 |
2013 |
2013 |
2013 |
|||||
Assets |
||||||||||
Loans: |
||||||||||
Residential mortgages |
$ 1,379,625 |
$ 1,379,266 |
$ 1,330,674 |
$ 1,247,661 |
$ 1,218,192 |
|||||
Commercial real estate |
1,488,462 |
1,420,382 |
1,381,628 |
1,353,923 |
1,381,755 |
|||||
Commercial and industrial loans |
703,798 |
684,776 |
673,292 |
647,939 |
627,591 |
|||||
Consumer loans |
729,654 |
699,598 |
687,540 |
651,565 |
634,715 |
|||||
Total loans |
4,301,539 |
4,184,022 |
4,073,134 |
3,901,088 |
3,862,253 |
|||||
Securities |
1,225,646 |
1,047,658 |
813,417 |
735,307 |
655,396 |
|||||
Short-term investments and loans held for sale |
28,426 |
28,631 |
35,438 |
60,820 |
90,680 |
|||||
Total earning assets |
5,555,611 |
5,260,311 |
4,921,989 |
4,697,215 |
4,608,329 |
|||||
Goodwill and other intangible assets |
279,024 |
278,386 |
271,147 |
271,670 |
272,421 |
|||||
Other assets |
311,176 |
312,145 |
305,617 |
317,722 |
317,856 |
|||||
Total assets |
$ 6,145,811 |
$ 5,850,842 |
$ 5,498,753 |
$ 5,286,607 |
$ 5,198,606 |
|||||
Liabilities and stockholders' equity |
||||||||||
Deposits: |
||||||||||
NOW |
$ 425,824 |
$ 409,631 |
$ 348,600 |
$ 345,682 |
$ 358,255 |
|||||
Money market |
1,448,624 |
1,490,408 |
1,392,570 |
1,329,591 |
1,358,590 |
|||||
Savings |
481,790 |
463,615 |
435,766 |
442,408 |
449,296 |
|||||
Time |
1,152,651 |
1,069,987 |
1,044,850 |
1,064,199 |
1,087,357 |
|||||
Total interest-bearing deposits |
3,508,889 |
3,433,641 |
3,221,786 |
3,181,880 |
3,253,498 |
|||||
Borrowings |
1,113,431 |
899,458 |
857,848 |
708,798 |
574,822 |
|||||
Total interest-bearing liabilities |
4,622,320 |
4,333,099 |
4,079,634 |
3,890,678 |
3,828,320 |
|||||
Non-interest-bearing demand deposits |
779,775 |
749,982 |
681,368 |
658,568 |
636,469 |
|||||
Other liabilities |
52,712 |
76,258 |
56,261 |
52,874 |
65,568 |
|||||
Total liabilities |
5,454,807 |
5,159,339 |
4,817,263 |
4,602,120 |
4,530,357 |
|||||
Total stockholders' equity |
691,004 |
691,503 |
681,490 |
684,487 |
668,249 |
|||||
Total liabilities and stockholders' equity |
$ 6,145,811 |
$ 5,850,842 |
$ 5,498,753 |
$ 5,286,607 |
$ 5,198,606 |
|||||
Supplementary data |
||||||||||
Total non-maturity deposits |
$ 3,136,013 |
$ 3,113,636 |
$ 2,858,304 |
$ 2,776,249 |
$ 2,802,610 |
|||||
Total deposits |
4,288,664 |
4,183,623 |
3,903,154 |
3,840,448 |
3,889,967 |
|||||
Fully taxable equivalent income adjustment |
852 |
718 |
639 |
652 |
644 |
|||||
Total average tangible equity |
411,980 |
413,117 |
410,343 |
412,817 |
395,828 |
|||||
(1) Average balances for securities available-for-sale are based on amortized cost. Total loans include non-accruing loans. |
||||||||||
(2) Total average tangible equity results from the subtraction of average goodwill and other intangible assets from total average |
||||||||||
stockholders' equity. |
||||||||||
(3) The average balances of deposits include the deposits held for sale presented under other liabilities on the consolidated balance sheet. |
||||||||||
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
AVERAGE YIELDS (Fully Taxable Equivalent - Annualized) - UNAUDITED - (F-8) |
||||||||||
Quarters Ended |
||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||
2014 |
2014 |
2013 |
2013 |
2013 |
||||||
Earning assets |
||||||||||
Loans: |
||||||||||
Residential mortgages |
3.99 |
% |
4.12 |
% |
3.98 |
% |
3.99 |
% |
4.19 |
% |
Commercial real estate |
4.16 |
4.44 |
4.73 |
5.80 |
5.27 |
|||||
Commercial and industrial loans |
3.82 |
3.97 |
3.91 |
6.09 |
4.04 |
|||||
Consumer loans |
3.49 |
3.56 |
4.01 |
4.39 |
4.78 |
|||||
Total loans |
3.96 |
4.13 |
4.26 |
5.02 |
4.67 |
|||||
Securities |
3.13 |
3.04 |
2.72 |
2.77 |
3.00 |
|||||
Short-term investments and loans held for sale |
1.40 |
1.51 |
1.92 |
4.05 |
2.02 |
|||||
Total earning assets |
3.76 |
3.89 |
3.97 |
4.66 |
4.38 |
|||||
Funding liabilities |
||||||||||
Deposits: |
||||||||||
NOW |
0.15 |
0.15 |
0.18 |
0.18 |
0.26 |
|||||
Money market |
0.36 |
0.37 |
0.44 |
0.44 |
0.39 |
|||||
Savings |
0.16 |
0.16 |
0.16 |
0.16 |
0.17 |
|||||
Time |
0.98 |
1.15 |
1.25 |
1.29 |
1.23 |
|||||
Total interest-bearing deposits |
0.51 |
0.56 |
0.64 |
0.66 |
0.62 |
|||||
Borrowings |
0.85 |
1.04 |
1.69 |
1.88 |
2.47 |
|||||
Total interest-bearing liabilities |
0.59 |
0.66 |
0.86 |
0.88 |
0.90 |
|||||
Net interest spread |
3.17 |
3.23 |
3.11 |
3.78 |
3.48 |
|||||
Net interest margin |
3.26 |
3.35 |
3.26 |
3.93 |
3.63 |
|||||
Cost of funds |
0.51 |
0.56 |
0.73 |
0.75 |
0.77 |
|||||
Cost of deposits |
0.42 |
0.46 |
0.53 |
0.55 |
0.52 |
|||||
(1) Cost of funds includes all deposits and borrowings. |
||||||||||
(2) The average yields of deposits include the deposits held for sale. |
||||||||||
BERKSHIRE HILLS BANCORP, INC. |
|||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-9) |
|||||||||||
At or for the Quarters Ended |
|||||||||||
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
|||||||
(Dollars in thousands) |
2014 |
2014 |
2013 |
2013 |
2013 |
||||||
Net income (loss) |
$ 11,464 |
$ (1,106) |
$ 10,537 |
$ 8,104 |
$ 12,037 |
||||||
Adj: Gain on sale of securities, net |
(203) |
(34) |
(3,392) |
(361) |
(1,005) |
||||||
Adj: Loss on termination of hedges |
- |
8,792 |
- |
- |
- |
||||||
Adj: Merger and acquisition expenses |
52 |
3,637 |
932 |
1,307 |
775 |
||||||
Adj: Restructuring, conversion and other expenses (5) |
138 |
2,665 |
1,561 |
5,709 |
- |
||||||
Adj: Out-of-period adjustment (6) |
- |
1,381 |
- |
(2,222) |
- |
||||||
Adj: Income taxes |
(536) |
(4,923) |
364 |
(1,788) |
93 |
||||||
Total core income |
(A) |
$ 10,915 |
$ 10,412 |
$ 10,002 |
$ 10,749 |
$ 11,900 |
|||||
Total revenue |
$ 58,835 |
$ 47,189 |
$ 55,556 |
$ 57,983 |
$ 56,710 |
||||||
Adj: Gain on sale of securities, net |
(203) |
(34) |
(3,392) |
(361) |
(1,005) |
||||||
Adj: Loss on termination of hedges |
- |
8,792 |
- |
- |
- |
||||||
Adj: Out-of-period adjustment (6) |
- |
1,381 |
- |
(2,222) |
- |
||||||
Total core revenue |
$ 58,632 |
$ 57,328 |
$ 52,164 |
$ 55,400 |
$ 55,705 |
||||||
Total non-interest expense |
$ 39,263 |
$ 45,360 |
$ 37,157 |
$ 42,784 |
$ 37,935 |
||||||
Less: Total non-core expense (see above) |
(190) |
(6,302) |
(2,493) |
(7,016) |
(775) |
||||||
Core non-interest expense |
$ 39,073 |
$ 39,058 |
$ 34,664 |
$ 35,768 |
$ 37,160 |
||||||
(Dollars in millions, except per share data) |
|||||||||||
Total average assets |
(B) |
$ 6,146 |
$ 5,851 |
$ 5,499 |
$ 5,287 |
$ 5,199 |
|||||
Total average stockholders' equity |
(C) |
691 |
692 |
681 |
684 |
668 |
|||||
Total average tangible stockholders' equity |
(D) |
412 |
413 |
410 |
413 |
396 |
|||||
Total tangible stockholders' equity, period-end (7) |
(E) |
411 |
398 |
407 |
401 |
401 |
|||||
Total common shares outstanding, period-end (thousands) |
(F) |
25,115 |
25,105 |
25,036 |
24,952 |
25,096 |
|||||
Average diluted shares outstanding (thousands) (8) |
(G) |
24,809 |
24,833 |
24,857 |
24,873 |
24,956 |
|||||
Core earnings per share, diluted |
(A/G) |
$ 0.44 |
$ 0.42 |
$ 0.40 |
$ 0.43 |
$ 0.48 |
|||||
Tangible book value per share, period-end |
(E/F) |
$ 16.40 |
$ 15.84 |
$ 16.27 |
$ 16.08 |
$ 15.96 |
|||||
Core return on assets |
(A/B) |
0.71 |
% |
0.71 |
% |
0.73 |
% |
0.81 |
% |
0.92 |
% |
Core return on equity |
(A/C) |
6.32 |
6.02 |
5.87 |
6.29 |
7.13 |
|||||
Core return on tangible equity (4) |
(A/D) |
11.34 |
10.84 |
10.47 |
11.18 |
12.84 |
|||||
Efficiency ratio (1) |
62.96 |
64.42 |
63.21 |
60.98 |
63.05 |
||||||
Supplementary data |
|||||||||||
Tax credit benefit of tax shelter investments |
$ 555 |
$ 555 |
$ 80 |
$ 458 |
$ 458 |
||||||
Intangible amortization |
$ 1,274 |
$ 1,306 |
$ 1,239 |
$ 1,307 |
$ 1,345 |
||||||
(1) Efficiency ratio is computed by dividing total core tangible non-interest expense by the sum of total net interest income on a fully taxable equivalent basis and total core non-interest income adjusted to include tax credit benefit of tax shelter investments. The Company uses this non-GAAP measure to provide important information regarding its operational efficiency. |
|||||||||||
(2) Ratios are annualized and based on average balance sheet amounts, where applicable. |
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(3) Quarterly data may not sum to year-to-date data due to rounding. |
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(4) Core return on tangible equity is computed by dividing the total core income adjusted for the tax-affected amortization of intangible assets, assuming a 40% marginal rate, by tangible equity. |
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(5) Prior period variable compensation is shown above under restructuring, conversion and other expenses. |
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(6) The out of period adjustments shown above relate to interest income earned on loans acquired in bank acquisitions. |
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(7) Total tangible stockholders' equity is computed by taking total stockholders' equity less the intangible assets at period-end. |
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(8) Average diluted shares computed for core earnings per share differ from GAAP average diluted shares, in the first quarter of 2014, due to the GAAP net loss compared to core net income for the period. |
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BERKSHIRE HILLS BANCORP, INC. |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - UNAUDITED - (F-10) |
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At or for the Six Months Ended |
|||||
June 30, |
June 30, |
||||
(Dollars in thousands) |
2014 |
2013 |
|||
Net income |
$ 10,358 |
$ 22,502 |
|||
Adj: Gain on sale of securities, net |
(237) |
(1,005) |
|||
Adj: Loss on termination of hedges |
8,792 |
- |
|||
Adj: Merger and acquisition expenses |
3,689 |
5,759 |
|||
Adj: Restructuring, conversion and other expenses (5) |
2,803 |
80 |
|||
Adj: Out-of-period adjustment (6) |
1,381 |
- |
|||
Adj: Income taxes |
(5,459) |
(1,949) |
|||
Total core income |
(A) |
$ 21,327 |
$ 25,387 |
||
Total revenue |
$ 106,024 |
$ 113,445 |
|||
Adj: Gain on sale of securities and other non-recurring gain, net |
(237) |
(1,005) |
|||
Adj: Loss on termination of hedges |
8,792 |
- |
|||
Adj: Out-of-period adjustment (6) |
1,381 |
- |
|||
Total core revenue |
$ 115,960 |
$ 112,440 |
|||
Total non-interest expense |
$ 84,623 |
$ 77,418 |
|||
Less: Total non-core expense (see above) |
(6,492) |
(5,839) |
|||
Core non-interest expense |
$ 78,131 |
$ 71,579 |
|||
(Dollars in millions, except per share data) |
|||||
Total average assets |
(B) |
$ 5,999 |
$ 5,220 |
||
Total average stockholders' equity |
(C) |
692 |
667 |
||
Total average tangible stockholders' equity |
(D) |
413 |
395 |
||
Total tangible stockholders' equity, period-end (7) |
(E) |
411 |
401 |
||
Total common shares outstanding, period-end (thousands) |
(F) |
25,115 |
25,096 |
||
Average diluted common shares outstanding (thousands) |
(G) |
24,821 |
25,049 |
||
Core earnings per common share, diluted |
(A/G) |
$ 0.86 |
$ 1.01 |
||
Tangible book value per common share, period-end |
(E/F) |
$ 16.40 |
$ 15.96 |
||
Core return on assets |
(A/B) |
0.71 |
% |
0.97 |
% |
Core return on equity |
(A/C) |
6.17 |
7.61 |
||
Core return on tangible equity (4) |
(A/D) |
11.09 |
13.70 |
||
Efficiency ratio (1) |
63.68 |
60.07 |
|||
Supplementary data |
|||||
GAAP return on assets |
0.35 |
% |
0.86 |
% |
|
GAAP return on equity |
3.00 |
6.74 |
|||
Net interest margin |
3.31 |
3.68 |
|||
Tax credit benefit of tax shelter investments |
$ 1,110 |
$ 917 |
|||
Intangible amortization |
$ 2,580 |
$ 2,722 |
|||
(1) Efficiency ratio is computed by dividing total core tangible non-interest expense by the sum of total net interest income on a fully taxable equivalent basis and total core non-interest income adjusted to include tax credit benefit of tax shelter investments. The Company uses this non-GAAP measure to provide important information regarding its operational efficiency. |
|||||
(2) Ratios are annualized and based on average balance sheet amounts, where applicable. |
|||||
(3) Quarterly data may not sum to year-to-date data due to rounding. |
|||||
(4) Core return on tangible equity is computed by dividing the total core income adjusted for the tax-affected amortization of intangible assets, assuming a 40% marginal rate, by tangible equity. |
|||||
(5) Prior period variable compensation is shown above under restructuring, conversion and other expenses. |
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(6) The out of period adjustments shown above relate to interest income earned on loans acquired in bank acquisitions. |
|||||
(7) Total tangible stockholders' equity is computed by taking total stockholders' equity less the intangible assets at period-end. |
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SOURCE Berkshire Hills Bancorp, Inc.
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