Operating EPS of $0.58 increased 5% linked quarter and 16% year-over-year
- $16 million non-operating gain on branch sale ($0.30 per share after tax)
- Operating revenue up 1% linked quarter and 2% year-over-year
- 14.8% return on tangible common equity; 9.9% operating return on tangible common equity
- Branch sale and loan sale are expected to further improve long-term profitability
BOSTON, Oct. 24, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported results for the third quarter of 2024. These results along with comparison periods are summarized below:
($ in millions, except per share data) |
Three Months Ended |
|||||
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
||||
Net income |
$ |
37.5 |
$ |
24.0 |
$ |
19.5 |
Per share |
0.88 |
0.57 |
0.45 |
|||
Operating earnings1 |
24.8 |
23.2 |
21.5 |
|||
Per share |
0.58 |
0.55 |
0.50 |
|||
Net interest income, non FTE |
$ |
88.1 |
$ |
88.5 |
$ |
90.3 |
Net interest income, FTE |
90.1 |
90.5 |
92.3 |
|||
Net interest margin, FTE |
3.16 % |
3.20 % |
3.18 % |
|||
Non-interest income |
37.6 |
20.1 |
17.5 |
|||
Operating non-interest income1 |
21.5 |
20.1 |
17.5 |
|||
Non-interest expense |
$ |
72.0 |
$ |
70.9 |
$ |
76.5 |
Operating non-interest expense1 |
72.3 |
71.3 |
73.9 |
|||
Efficiency ratio1 |
63.7 % |
63.4 % |
65.1 % |
|||
Average balances2 |
||||||
Loans |
$ |
9,233 |
$ |
9,157 |
$ |
8,952 |
Deposits |
9,360 |
9,296 |
9,630 |
|||
Period-end balances2 |
||||||
Loans |
9,212 |
9,229 |
8,984 |
|||
Deposits |
9,577 |
9,621 |
9,981 |
|||
1. See non-GAAP financial measures and reconciliation to GAAP measures beginning on page 12. 2. Loans and deposits in 2Q24 exclude balances held for sale in branch transaction of $57 million and $483 million respectively (average), and $55 million and $474 million (end of period). The branch sale was |
Berkshire CEO Nitin Mhatre stated, "We are pleased to report a robust quarter reflecting accelerating momentum across key business drivers. Quarterly operating income has increased sequentially throughout this year driven by calibrated loan growth, improving credit quality and continued expense management. Third quarter operating income per share increased 16% year over year. This quarter also saw approximately 1% growth in average deposit balances. During the quarter, we completed the sale of ten branch offices. Including branch consolidations, the total branch count has been reduced by 14% this year to 83 offices. Also, after quarter-end, the Company's balance sheet was further strengthened through the sale of $46.5 million in consumer loans."
Berkshire CFO Brett Brbovic added, "Operating revenue grew 1% linked quarter and benefited from loan growth and increased loan related fees. The net interest margin decreased modestly to 3.16% from 3.20% linked quarter and 3.18% year-over-year. The provision for credit losses decreased $1.0 million reflecting lower recent loss trends. Operating expense increased $0.9 million, with lower occupancy and technology costs offset by higher miscellaneous expenses. The allowance for credit losses on loans remained steady at 1.22% of total loans. Capital strength improved, with the tangible common equity ratio improving to 9.1% from 8.2%."
As of and For the Three Months Ended |
|||||||
Sept. 30, 2024 |
June 30, 2024 |
Sept. 30, 2023 |
|||||
Asset Quality |
|||||||
Net loan charge-offs to average loans |
0.24 % |
0.07 % |
0.24 % |
||||
Non-performing loans to total loans |
0.26 % |
0.23 % |
0.30 % |
||||
Returns |
|||||||
Return on average assets |
1.28 % |
0.82 % |
0.66 % |
||||
Operating return on average assets1 |
0.85 % |
0.79 % |
0.73 % |
||||
Return on tangible common equity1 |
14.83 % |
9.99 % |
8.45 % |
||||
Operating return on tangible common equity1 |
9.91 % |
9.65 % |
9.27 % |
||||
Capital Ratios2 |
|||||||
Tangible common equity/tangible assets1 |
9.1 % |
8.2 % |
7.7 % |
||||
Tier 1 leverage |
9.9 % |
9.6 % |
9.8 % |
||||
Common equity Tier 1 |
11.9 % |
11.6 % |
12.1 % |
||||
Tier 1 risk-based |
12.2 % |
11.9 % |
12.3 % |
||||
Total risk-based |
14.4 % |
14.1 % |
14.4 % |
||||
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 estimated for September 30, 2024 and actual for the remaining periods. |
Berkshire Hills Bancorp, Inc. (NYSE: BHLB) is the parent company of Berkshire Bank, a relationship-driven, community-focused bank with $11.6 billion in assets and 83 financial centers in New England and New York. Berkshire is headquartered in Boston and offers commercial, retail, wealth, and private banking solutions.
3Q 2024 Financial Highlights (comparisons are to the prior quarter unless otherwise noted).
Income Statement. GAAP income was $37.5 million, or $0.88 per share. Operating earnings totaled $24.8 million, or $0.58 per share. GAAP results included the gain on the completion of the sale of ten New York branches. Operating income advanced 7% linked quarter including the benefit of higher operating revenue and a lower provision for credit losses.
- Net interest income totaled $88.1 million in 3Q24 compared to $88.5 million in 2Q24.
- Net interest margin decreased 4 basis points linked quarter to 3.16%.
- The earning asset yield increased 5 basis points.
- The loan yield increased 6 basis points.
- The cost of funds increased 11 basis points.
- The cost of deposits increased 7 basis points.
- The earning asset yield increased 5 basis points.
- Provision for credit losses totaled $5.5 million, a decrease of $1.0 million linked quarter.
- Net loan charge-offs totaling $5.6 million included $3.9 million in consumer losses which included a $1.9 million charge-off recorded for the Upstart-related consumer loan sale.
- The net annualized loan charge-off ratio was 0.24%. Excluding the impact of consumer loans sold, annualized net loan charge-offs were 0.16% of average third quarter loans.
- GAAP non-interest income of $37.6 million included a $16.0 million non-operating gain on the New York branch sale. Operating non-interest income totaled $21.5 million, an increase of 7% linked quarter.
- Linked quarter growth was primarily in loan related fees which increased 36% including higher interest rate swap income and commercial loan servicing fees.
- All other fee income categories increased except gains on SBA sales, which remained strong following a recent high in the linked quarter.
- Non-interest expense totaled $72.0 million on a GAAP basis and $72.3 million on an operating basis. Operating non-interest expense increased 1% linked quarter and decreased 2% year-over-year.
- Compensation and benefits expense increased $0.5 million linked quarter.
- Occupancy, equipment, and technology expense decreased $0.9 million.
- The category of other expense increased $1.6 million primarily due to one commercial check fraud.
- The efficiency ratio was 63.7% compared to 63.4% linked quarter.
- The effective tax rate was 22% for the quarter and the year-to-date.
Loans. Total loans decreased $16 million linked quarter to $9.21 billion due to the $46.5 million transfer of Upstart-related consumer loans to held for sale. Adjusted for this transfer, total loans increased by $30 million.
- Commercial real estate loans increased $35 million to $4.74 billion.
- Commercial and industrial loans decreased $12 million to $1.41 billion.
- Residential mortgage loans increased $14 million to $2.69 billion.
- Consumer loans decreased $53 million to $372 million due to the pending Upstart loan sale. This sale was completed on October 16, 2024. The remaining balance of Upstart-related loans was $10 million at quarter-end.
- The allowance for credit losses on loans to total loans was 1.22% at September 30, 2024, unchanged from the prior quarter-end.
- Non-performing loans to total loans was 0.26% at September 30, 2024, compared to 0.23% at prior quarter-end.
Deposits. Total deposits decreased $44 million to $9.58 billion. Total average deposits increased $64 million, or 1%, to $9.36 billion. Deposits decreased year-over-year due to the branch sale.
- Non-interest bearing deposits increased $46 million to $2.26 billion, increasing to 24% of total deposits from 23%.
- Non-maturity interest bearing deposits decreased $260 million to $4.79 billion.
- Time deposits increased $170 million to $2.52 billion.
Equity. Total shareholders' equity increased $58 million to $1.07 billion. Book value per share increased 6% to $24.90 and tangible book value per share increased 6% to $24.53. Accumulated other comprehensive income increased $25 million, reflecting lower market interest rates at period-end.
3Q 2024 Corporate Responsibility and Sustainability Highlights
- Berkshire was recognized as a Top Charitable Contributor by the Boston Business Journal for the 12th consecutive year and named to Newsweek's list of America's Greatest Workplaces.
- Berkshire maintained its top quartile environmental, social and governance performance in the banking sector and was listed as an "Outperformer" in the R-Factor™ rating as of October 2024.
- The Bank achieved targets for lending in low-moderate income communities, increasing minority homeownership, and support for green projects through its multi-year Community Comeback program.
Conference Call and Investor Presentation. Berkshire will conduct a conference call/webcast at 9:00 a.m. eastern time on Thursday, October 24, 2024 to discuss results for the quarter and provide guidance about expected future results. Instructions for listening to the call may be found at the Company's website at ir.berkshirebank.com. Additional materials relating to the call may also be accessed at this website. The call will be archived at the website and will be available for an extended period of time.
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 the sections titled "Forward-Looking Statements" and "Risk Factors" in 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
[email protected]
MEDIA CONTACT
Gary Levante
Corporate Communications
413.447.1737
[email protected]
BERKSHIRE HILLS BANCORP, INC. SELECTED FINANCIAL HIGHLIGHTS (1) |
||||||||||||
At or for the Quarters Ended |
||||||||||||
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
||||||||
2024 |
2024 |
2024 |
2023 |
2023 |
||||||||
NOMINAL AND PER SHARE DATA |
||||||||||||
Net earnings/(loss) per common share, diluted |
$ 0.88 |
$ 0.57 |
$ (0.47) |
$ (0.03) |
$ 0.45 |
|||||||
Operating earnings per common share, diluted (2)(3) |
0.58 |
0.55 |
0.49 |
0.47 |
0.50 |
|||||||
Net income/(loss), (thousands) |
37,509 |
24,025 |
(20,188) |
(1,445) |
19,545 |
|||||||
Operating net income, (thousands) (2)(3) |
24,789 |
23,168 |
20,934 |
20,190 |
21,516 |
|||||||
Net interest income, (thousands) non FTE |
88,059 |
88,532 |
88,140 |
88,421 |
90,334 |
|||||||
Net interest income, FTE (5) |
90,082 |
90,545 |
90,146 |
90,442 |
92,314 |
|||||||
Total common shares outstanding, end of period (thousands) |
42,982 |
42,959 |
43,415 |
43,501 |
43,822 |
|||||||
Average diluted shares, (thousands) |
42,454 |
42,508 |
43,028 |
43,101 |
43,347 |
|||||||
Total book value per common share, end of period |
24.90 |
23.58 |
23.26 |
23.27 |
21.70 |
|||||||
Tangible book value per common share, end of period (2)(3) |
24.53 |
23.18 |
22.84 |
22.82 |
21.23 |
|||||||
Dividends declared per common share |
0.18 |
0.18 |
0.18 |
0.18 |
0.18 |
|||||||
Dividend payout ratio (7) |
20.63 |
% |
32.74 |
% |
N/M |
% |
N/M |
% |
40.56 |
% |
||
PERFORMANCE RATIOS (4) |
||||||||||||
Return on equity |
14.29 |
% |
9.49 |
% |
(7.93) |
% |
(0.60) |
% |
7.91 |
% |
||
Operating return on equity (2)(3) |
9.44 |
9.15 |
8.23 |
8.36 |
8.71 |
|||||||
Return on tangible common equity (2)(3) |
14.83 |
9.99 |
(7.73) |
(0.24) |
8.45 |
|||||||
Operating return on tangible common equity (2)(3) |
9.91 |
9.65 |
8.73 |
8.90 |
9.27 |
|||||||
Return on assets |
1.28 |
0.82 |
(0.69) |
(0.05) |
0.66 |
|||||||
Operating return on assets (2)(3) |
0.85 |
0.79 |
0.71 |
0.68 |
0.73 |
|||||||
Net interest margin, FTE (5) |
3.16 |
3.20 |
3.15 |
3.11 |
3.18 |
|||||||
Efficiency ratio (3) |
63.74 |
63.40 |
66.26 |
67.77 |
65.05 |
|||||||
FINANCIAL DATA (in millions, end of period) |
||||||||||||
Total assets |
$ 11,605 |
$ 12,219 |
$ 12,147 |
$ 12,431 |
$ 12,140 |
|||||||
Total earning assets |
10,922 |
11,510 |
11,430 |
11,705 |
11,400 |
|||||||
Total loans |
9,212 |
9,229 |
9,086 |
9,040 |
8,984 |
|||||||
Total funding liabilities |
10,285 |
10,907 |
10,826 |
11,140 |
10,906 |
|||||||
Total deposits |
9,577 |
9,621 |
9,883 |
10,633 |
9,981 |
|||||||
Loans/deposits (%) |
96 |
% |
96 |
% |
92 |
% |
85 |
% |
90 |
% |
||
Total accumulated other comprehensive (loss) net of tax, end of period |
$ (89) |
$ (115) |
$ (114) |
$ (143) |
$ (218) |
|||||||
Total shareholders' equity |
1,070 |
1,013 |
1,010 |
1,012 |
951 |
|||||||
ASSET QUALITY |
||||||||||||
Allowance for credit losses, (millions) |
$ 112 |
$ 112 |
$ 107 |
$ 105 |
$ 103 |
|||||||
Net charge-offs, (millions) |
(6) |
(2) |
(4) |
(4) |
(5) |
|||||||
Net charge-offs (QTD annualized)/average loans |
0.24 |
% |
0.07 |
% |
0.18 |
% |
0.20 |
% |
0.24 |
% |
||
Provision (benefit)/expense, (millions) |
$ 6 |
$ 6 |
$ 6 |
$ 7 |
$ 8 |
|||||||
Non-performing assets, (millions) |
27 |
24 |
24 |
24 |
29 |
|||||||
Non-performing loans/total loans |
0.26 |
% |
0.23 |
% |
0.24 |
% |
0.24 |
% |
0.30 |
% |
||
Allowance for credit losses/non-performing loans |
467 |
525 |
500 |
492 |
386 |
|||||||
Allowance for credit losses/total loans |
1.22 |
1.22 |
1.18 |
1.17 |
1.14 |
|||||||
CAPITAL RATIOS |
||||||||||||
Risk weighted assets, (millions)(6) |
$ 9,638 |
$ 9,604 |
$ 9,615 |
$ 9,552 |
$ 9,594 |
|||||||
Common equity Tier 1 capital to risk weighted assets (6) |
11.9 |
% |
11.6 |
% |
11.6 |
% |
12.0 |
% |
12.1 |
% |
||
Tier 1 capital leverage ratio (6) |
9.9 |
9.6 |
9.5 |
9.6 |
9.8 |
|||||||
Tangible common shareholders' equity/tangible assets (3) |
9.1 |
8.2 |
8.2 |
8.0 |
7.7 |
|||||||
(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 13 and 14. (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 13 and 14 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 September 30, 2024 and actual for the remaining periods. (7) Dividend payout ratio is based on dividends declared. |
CONSOLIDATED BALANCE SHEETS |
||||
September 30, |
June 30, |
December 31, |
September 30, |
|
(in thousands) |
2024 |
2024 |
2023 |
2023 |
Assets |
||||
Cash and due from banks |
$ 134,056 |
$ 112,085 |
$ 148,148 |
$ 120,634 |
Short-term investments |
435,911 |
988,207 |
1,055,096 |
542,836 |
Total cash and cash equivalents |
569,967 |
1,100,292 |
1,203,244 |
663,470 |
Trading securities, at fair value |
5,560 |
5,699 |
6,142 |
6,171 |
Equity securities, at fair value |
13,278 |
12,736 |
13,029 |
12,325 |
Securities available for sale, at fair value |
661,740 |
611,711 |
1,022,285 |
1,260,391 |
Securities held to maturity, at amortized cost |
512,277 |
520,239 |
543,351 |
552,981 |
Federal Home Loan Bank stock |
30,685 |
35,010 |
22,689 |
38,912 |
Total securities |
1,223,540 |
1,185,395 |
1,607,496 |
1,870,780 |
Less: Allowance for credit losses on investment securities |
(65) |
(65) |
(68) |
(69) |
Net securities |
1,223,475 |
1,185,330 |
1,607,428 |
1,870,711 |
Loans held for sale |
50,634 |
52,072 |
2,237 |
2,342 |
Commercial real estate loans |
4,741,689 |
4,706,810 |
4,527,012 |
4,453,573 |
Commercial and industrial loans |
1,409,538 |
1,421,921 |
1,352,834 |
1,384,038 |
Residential mortgages |
2,688,709 |
2,674,611 |
2,672,677 |
2,640,210 |
Consumer loans |
372,386 |
425,184 |
487,163 |
506,556 |
Total loans |
9,212,322 |
9,228,526 |
9,039,686 |
8,984,377 |
Less: Allowance for credit losses on loans |
(112,047) |
(112,167) |
(105,357) |
(102,792) |
Net loans |
9,100,275 |
9,116,359 |
8,934,329 |
8,881,585 |
Premises and equipment, net |
54,667 |
55,893 |
68,915 |
70,042 |
Other intangible assets |
16,192 |
17,319 |
19,664 |
20,869 |
Other assets |
582,422 |
615,882 |
584,066 |
619,777 |
Assets held for sale |
6,930 |
76,307 |
10,938 |
11,157 |
Total assets |
$ 11,604,562 |
$ 12,219,454 |
$ 12,430,821 |
$ 12,139,953 |
Liabilities and shareholders' equity |
||||
Non-interest bearing deposits |
$ 2,267,595 |
$ 2,222,012 |
$ 2,469,164 |
$ 2,530,441 |
NOW and other deposits |
748,737 |
766,641 |
858,644 |
843,032 |
Money market deposits |
3,042,712 |
3,278,753 |
3,565,516 |
3,075,307 |
Savings deposits |
998,549 |
1,004,320 |
1,053,810 |
1,086,329 |
Time deposits |
2,519,896 |
2,349,733 |
2,686,250 |
2,445,435 |
Total deposits |
9,577,489 |
9,621,459 |
10,633,384 |
9,980,544 |
Federal Home Loan Bank advances |
585,542 |
689,606 |
385,223 |
804,295 |
Subordinated borrowings |
121,549 |
121,487 |
121,363 |
121,300 |
Total borrowings |
707,091 |
811,093 |
506,586 |
925,595 |
Other liabilities |
249,531 |
287,312 |
278,630 |
282,805 |
Liabilities held for sale |
- |
486,648 |
- |
- |
Total liabilities |
10,534,111 |
11,206,512 |
11,418,600 |
11,188,944 |
Common shareholders' equity |
1,070,451 |
1,012,942 |
1,012,221 |
951,009 |
Total shareholders' equity |
1,070,451 |
1,012,942 |
1,012,221 |
951,009 |
Total liabilities and shareholders' equity |
$ 11,604,562 |
$ 12,219,454 |
$ 12,430,821 |
$ 12,139,953 |
BERKSHIRE HILLS BANCORP, INC. |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
(in thousands, except per share data) |
2024 |
2023 |
2024 |
2023 |
|||
Interest income |
$ 157,268 |
$ 148,021 |
$ 463,383 |
$ 425,762 |
|||
Interest expense |
69,209 |
57,687 |
198,652 |
145,136 |
|||
Net interest income, non FTE |
88,059 |
90,334 |
264,731 |
280,626 |
|||
Non-interest income |
|||||||
Deposit related fees |
8,656 |
8,792 |
25,522 |
25,674 |
|||
Loan related fees |
3,214 |
2,879 |
8,241 |
8,537 |
|||
Gain on SBA loans |
3,020 |
2,548 |
8,013 |
7,952 |
|||
Wealth management fees |
2,685 |
2,481 |
8,182 |
7,803 |
|||
Fair value adjustments on securities |
516 |
(467) |
359 |
(255) |
|||
Other |
3,416 |
1,232 |
8,633 |
1,454 |
|||
Total non-interest income excluding gains and losses |
21,507 |
17,465 |
58,950 |
51,165 |
|||
Gain on sale of business operations and assets, net |
16,048 |
- |
16,048 |
- |
|||
(Loss) on sale of AFS securities |
- |
- |
(49,909) |
- |
|||
Total non-interest income |
37,555 |
17,465 |
25,089 |
51,165 |
|||
Total net revenue |
125,614 |
107,799 |
289,820 |
331,791 |
|||
Provision expense for credit losses |
5,500 |
8,000 |
17,999 |
24,999 |
|||
Non-interest expense |
|||||||
Compensation and benefits |
40,663 |
40,155 |
121,524 |
119,186 |
|||
Occupancy and equipment |
7,373 |
8,816 |
24,135 |
27,165 |
|||
Technology |
10,014 |
10,616 |
30,154 |
30,552 |
|||
Professional services |
2,109 |
2,423 |
7,542 |
8,226 |
|||
Regulatory expenses |
1,851 |
1,905 |
5,544 |
5,165 |
|||
Amortization of intangible assets |
1,128 |
1,205 |
3,473 |
3,615 |
|||
Marketing |
861 |
1,552 |
2,509 |
4,270 |
|||
Merger, restructuring and other non-operating expenses |
(297) |
2,607 |
2,936 |
2,592 |
|||
Other expenses |
8,258 |
7,234 |
21,094 |
21,745 |
|||
Total non-interest expense |
71,960 |
76,513 |
218,911 |
222,516 |
|||
Total non-interest expense excluding non-operating expenses |
72,257 |
73,906 |
215,975 |
219,924 |
|||
Income before income taxes |
$ 48,154 |
$ 23,286 |
$ 52,910 |
$ 84,276 |
|||
Income tax expense |
10,645 |
3,741 |
11,564 |
13,233 |
|||
Net income |
$ 37,509 |
$ 19,545 |
$ 41,346 |
$ 71,043 |
|||
Basic earnings per common share |
$ 0.89 |
$ 0.45 |
$ 0.97 |
$ 1.64 |
|||
Diluted earnings per common share |
$ 0.88 |
$ 0.45 |
$ 0.97 |
$ 1.63 |
|||
Weighted average shares outstanding: |
|||||||
Basic |
42,170 |
43,164 |
42,456 |
43,435 |
|||
Diluted |
42,454 |
43,347 |
42,658 |
43,640 |
|||
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
||||||
(in thousands, except per share data) |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||
Interest income |
$ 157,268 |
$ 154,109 |
$ 152,006 |
$ 150,537 |
$ 148,021 |
|||||
Interest expense |
69,209 |
65,577 |
63,866 |
62,116 |
57,687 |
|||||
Net interest income, non FTE |
88,059 |
88,532 |
88,140 |
88,421 |
90,334 |
|||||
Non-interest income |
||||||||||
Deposit related fees |
8,656 |
8,561 |
8,305 |
8,481 |
8,792 |
|||||
Loan related fees |
3,214 |
2,364 |
2,663 |
2,058 |
2,879 |
|||||
Gain on SBA loans |
3,020 |
3,294 |
1,699 |
2,382 |
2,548 |
|||||
Wealth management fees |
2,685 |
2,613 |
2,884 |
2,394 |
2,481 |
|||||
Fair value adjustments on securities |
516 |
(42) |
(115) |
768 |
(467) |
|||||
Other |
3,416 |
3,343 |
1,874 |
591 |
1,232 |
|||||
Total non-interest income excluding gains and losses |
21,507 |
20,133 |
17,310 |
16,674 |
17,465 |
|||||
Gain on sale of business operations and assets, net |
16,048 |
- |
- |
- |
- |
|||||
Loss on sale of AFS securities |
- |
- |
(49,909) |
(25,057) |
- |
|||||
Total non-interest income |
37,555 |
20,133 |
(32,599) |
(8,383) |
17,465 |
|||||
Total net revenue |
125,614 |
108,665 |
55,541 |
80,038 |
107,799 |
|||||
Provision expense for credit losses |
5,500 |
6,499 |
6,000 |
7,000 |
8,000 |
|||||
Non-interest expense |
||||||||||
Compensation and benefits |
40,663 |
40,126 |
40,735 |
40,095 |
40,155 |
|||||
Occupancy and equipment |
7,373 |
8,064 |
8,698 |
8,553 |
8,816 |
|||||
Technology |
10,014 |
10,236 |
9,904 |
11,326 |
10,616 |
|||||
Professional services |
2,109 |
2,757 |
2,676 |
3,417 |
2,423 |
|||||
Regulatory expenses |
1,851 |
1,848 |
1,845 |
1,854 |
1,905 |
|||||
Amortization of intangible assets |
1,128 |
1,140 |
1,205 |
1,205 |
1,205 |
|||||
Marketing |
861 |
532 |
1,116 |
1,107 |
1,552 |
|||||
Merger, restructuring and other non-operating expenses |
(297) |
(384) |
3,617 |
3,669 |
2,607 |
|||||
Other expenses |
8,258 |
6,612 |
6,224 |
7,766 |
7,234 |
|||||
Total non-interest expense |
71,960 |
70,931 |
76,020 |
78,992 |
76,513 |
|||||
Total non-interest expense excluding non-operating expenses |
72,257 |
71,315 |
72,403 |
75,323 |
73,906 |
|||||
Income/(loss) before income taxes |
$ 48,154 |
$ 31,235 |
$ (26,479) |
$ (5,954) |
$ 23,286 |
|||||
Income tax expense/(benefit) |
10,645 |
7,210 |
(6,291) |
(4,509) |
3,741 |
|||||
Net income/(loss) |
$ 37,509 |
$ 24,025 |
$ (20,188) |
$ (1,445) |
$ 19,545 |
|||||
Diluted earnings/(loss) per common share |
$ 0.88 |
$ 0.57 |
$ (0.47) |
$ (0.03) |
$ 0.45 |
|||||
Weighted average shares outstanding: |
||||||||||
Basic |
42,170 |
42,437 |
42,777 |
42,852 |
43,164 |
|||||
Diluted |
42,454 |
42,508 |
43,028 |
43,101 |
43,347 |
|||||
BERKSHIRE HILLS BANCORP, INC. |
|||||||||||||||
Quarters Ended |
|||||||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||||||
(in millions) |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
||||||
Assets |
|||||||||||||||
Commercial real estate |
$ 4,717 |
$ 79 |
6.54 |
% |
$ 4,649 |
$ 77 |
6.52 |
% |
$ 4,385 |
$ 71 |
6.32 |
% |
|||
Commercial and industrial loans |
1,380 |
27 |
7.79 |
1,384 |
27 |
7.62 |
1,436 |
27 |
7.48 |
||||||
Residential mortgages |
2,712 |
30 |
4.31 |
2,694 |
28 |
4.21 |
2,618 |
26 |
3.97 |
||||||
Consumer loans |
424 |
8 |
7.43 |
430 |
8 |
7.47 |
513 |
9 |
7.33 |
||||||
Total loans |
9,233 |
144 |
6.11 |
9,157 |
140 |
6.05 |
8,952 |
133 |
5.88 |
||||||
Securities (2) |
1,340 |
8 |
2.49 |
1,332 |
8 |
2.44 |
2,171 |
13 |
2.40 |
||||||
Short-term investments and loans held for sale |
563 |
7 |
4.98 |
597 |
8 |
5.07 |
267 |
3 |
4.76 |
||||||
New York branch loans held for sale (3) |
31 |
0 |
5.44 |
57 |
1 |
5.86 |
- |
- |
- |
||||||
Total earning assets |
11,167 |
159 |
5.62 |
11,143 |
157 |
5.57 |
11,390 |
149 |
5.19 |
||||||
Goodwill and other intangible assets |
17 |
18 |
21 |
||||||||||||
Other assets |
511 |
531 |
449 |
||||||||||||
Total assets |
$ 11,695 |
$ 11,692 |
$ 11,860 |
||||||||||||
Liabilities and shareholders' equity |
|||||||||||||||
Non-interest-bearing demand deposits |
$ 2,250 |
$ - |
- |
% |
$ 2,244 |
$ - |
- |
% |
$ 2,553 |
$ 0 |
- |
% |
|||
NOW and other |
743 |
3 |
1.54 |
763 |
3 |
1.44 |
858 |
2 |
1.15 |
||||||
Money market |
2,935 |
25 |
3.35 |
2,909 |
24 |
3.32 |
2,697 |
18 |
2.69 |
||||||
Savings |
1,002 |
3 |
1.17 |
1,004 |
3 |
1.06 |
1,082 |
2 |
0.77 |
||||||
Time |
2,430 |
26 |
4.31 |
2,376 |
25 |
4.22 |
2,440 |
22 |
3.43 |
||||||
Total deposits |
9,360 |
57 |
2.42 |
9,296 |
55 |
2.35 |
9,630 |
44 |
1.81 |
||||||
Borrowings (4) |
782 |
11 |
5.44 |
610 |
9 |
5.55 |
1,010 |
14 |
5.32 |
||||||
New York branch non-interest-bearing deposits held for sale (3) |
51 |
- |
- |
97 |
- |
- |
- |
- |
- |
||||||
New York branch interest-bearing deposits held for sale (3) |
207 |
1 |
2.87 |
386 |
3 |
2.80 |
- |
- |
- |
||||||
Total funding liabilities |
10,400 |
69 |
2.64 |
10,389 |
67 |
2.53 |
10,640 |
58 |
2.15 |
||||||
Other liabilities |
245 |
290 |
232 |
||||||||||||
Total liabilities |
10,645 |
10,679 |
10,872 |
||||||||||||
Common shareholders' equity (5) |
1,050 |
1,013 |
988 |
||||||||||||
Total shareholders' equity |
1,050 |
1,013 |
988 |
||||||||||||
Total liabilities and shareholders' equity |
$ 11,695 |
$ 11,692 |
$ 11,860 |
||||||||||||
Net interest margin, FTE |
3.16 |
3.20 |
3.18 |
||||||||||||
Supplementary data |
|||||||||||||||
Net Interest Income, non FTE |
88.059 |
88.532 |
90.334 |
||||||||||||
FTE income adjustment |
2.023 |
2.013 |
1.980 |
||||||||||||
Net Interest Income, FTE |
90.082 |
90.545 |
92.314 |
||||||||||||
(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) New York branch loans and deposits moved to held for sale on March 4, 2024. (4) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet. (5) Unrealized gains and losses, net of tax, are included in average equity. Prior period balances and financial metrics have been updated to reflect the current presentation. |
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
At or for the Quarters Ended |
||||||||||
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
||||||
(in thousands) |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||
NON-PERFORMING ASSETS |
||||||||||
Commercial real estate |
$ 10,270 |
$ 5,976 |
$ 4,762 |
$ 4,453 |
$ 5,288 |
|||||
Commercial and industrial loans |
8,227 |
8,489 |
9,174 |
8,712 |
11,028 |
|||||
Residential mortgages |
4,348 |
5,491 |
5,992 |
6,404 |
8,060 |
|||||
Consumer loans |
1,124 |
1,392 |
1,526 |
1,838 |
2,260 |
|||||
Total non-performing loans |
23,969 |
21,348 |
21,454 |
21,407 |
26,636 |
|||||
Repossessed assets |
2,563 |
2,549 |
2,689 |
2,601 |
2,548 |
|||||
Total non-performing assets |
$ 26,532 |
$ 23,897 |
$ 24,143 |
$ 24,008 |
$ 29,184 |
|||||
Total non-performing loans/total loans |
0.26 % |
0.23 % |
0.24 % |
0.24 % |
0.30 % |
|||||
Total non-performing assets/total assets |
0.23 % |
0.20 % |
0.20 % |
0.19 % |
0.24 % |
|||||
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS |
||||||||||
Balance at beginning of period |
$ 112,167 |
$ 107,331 |
$ 105,357 |
$ 102,792 |
$ 100,219 |
|||||
Charged-off loans |
(7,091) |
(3,246) |
(5,636) |
(6,891) |
(6,744) |
|||||
Recoveries on charged-off loans |
1,471 |
1,583 |
1,610 |
2,456 |
1,317 |
|||||
Net loans charged-off |
(5,620) |
(1,663) |
(4,026) |
(4,435) |
(5,427) |
|||||
Provision (benefit)/expense for loan credit losses |
5,500 |
6,499 |
6,000 |
7,000 |
8,000 |
|||||
Balance at end of period |
$ 112,047 |
$ 112,167 |
$ 107,331 |
$ 105,357 |
$ 102,792 |
|||||
Allowance for credit losses/total loans |
1.22 % |
1.22 % |
1.18 % |
1.17 % |
1.14 % |
|||||
Allowance for credit losses/non-performing loans |
467 % |
525 % |
500 % |
492 % |
386 % |
|||||
NET LOAN CHARGE-OFFS |
||||||||||
Commercial real estate |
$ (999) |
$ 22 |
$ 292 |
$ 316 |
$ 97 |
|||||
Commercial and industrial loans |
(1,009) |
(711) |
(1,772) |
(2,309) |
(3,345) |
|||||
Residential mortgages |
273 |
316 |
98 |
55 |
23 |
|||||
Home equity |
3 |
8 |
193 |
83 |
208 |
|||||
Other consumer loans |
(3,888) |
(1,298) |
(2,837) |
(2,580) |
(2,410) |
|||||
Total, net |
$ (5,620) |
$ (1,663) |
$ (4,026) |
$ (4,435) |
$ (5,427) |
|||||
Net charge-offs (QTD annualized)/average loans |
0.24 % |
0.07 % |
0.18 % |
0.20 % |
0.24 % |
|||||
Net charge-offs (YTD annualized)/average loans |
0.16 % |
0.13 % |
0.18 % |
0.26 % |
0.28 % |
|||||
DELINQUENT AND NON-PERFORMING LOANS |
Balance |
Percent |
Balance |
Percent of |
Balance |
Percent of |
Balance |
Percent of |
Balance |
Percent of |
30-89 Days delinquent |
$ 18,526 |
0.20 % |
$ 18,494 |
0.20 % |
$ 27,682 |
0.30 % |
$ 22,140 |
0.24 % |
$ 18,700 |
0.21 % |
90+ Days delinquent and still accruing |
6,280 |
0.07 % |
11,672 |
0.13 % |
5,882 |
0.06 % |
5,537 |
0.06 % |
5,744 |
0.06 % |
Total accruing delinquent loans |
24,806 |
0.27 % |
30,166 |
0.33 % |
33,564 |
0.36 % |
27,677 |
0.30 % |
24,444 |
0.27 % |
Non-performing loans |
23,969 |
0.26 % |
21,348 |
0.23 % |
21,454 |
0.24 % |
21,407 |
0.24 % |
26,636 |
0.30 % |
Total delinquent and non-performing loans |
$ 48,775 |
0.53 % |
$ 51,514 |
0.56 % |
$ 55,018 |
0.60 % |
$ 49,084 |
0.54 % |
$ 51,080 |
0.57 % |
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 are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures 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 provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP operating earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP operating earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. |
BERKSHIRE HILLS BANCORP, INC. |
||||||||||||
At or for the Quarters Ended |
||||||||||||
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
||||||||
(in thousands) |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||
Total non-interest income |
$ 37,555 |
$ 20,133 |
$ (32,599) |
$ (8,383) |
$ 17,465 |
|||||||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
|||||||||||
Adj: Loss on sale of AFS securities |
- |
- |
49,909 |
25,057 |
- |
|||||||
Total operating non-interest income (1) |
$ 21,507 |
$ 20,133 |
$ 17,310 |
$ 16,674 |
$ 17,465 |
|||||||
Total revenue |
(A) |
$ 125,614 |
$ 108,665 |
$ 55,541 |
$ 80,038 |
$ 107,799 |
||||||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
- |
- |
- |
- |
|||||||
Adj: Loss on sale of AFS securities |
- |
- |
49,909 |
25,057 |
- |
|||||||
Total operating revenue (1) |
(B) |
$ 109,566 |
$ 108,665 |
$ 105,450 |
$ 105,095 |
$ 107,799 |
||||||
Total non-interest expense |
(C) |
$ 71,960 |
$ 70,931 |
$ 76,020 |
$ 78,992 |
$ 76,513 |
||||||
Adj: Merger, restructuring and other non-operating expenses |
297 |
384 |
(3,617) |
(3,669) |
(2,607) |
|||||||
Operating non-interest expense (1) |
(D) |
$ 72,257 |
$ 71,315 |
$ 72,403 |
$ 75,323 |
$ 73,906 |
||||||
Pre-tax, pre-provision net revenue (PPNR) |
(A-C) |
$ 53,654 |
$ 37,734 |
$ (20,479) |
$ 1,046 |
$ 31,286 |
||||||
Operating pre-tax, pre-provision net revenue (PPNR) (1) |
(B-D) |
37,309 |
37,350 |
33,047 |
29,772 |
33,893 |
||||||
Net income/(loss) |
$ 37,509 |
$ 24,025 |
$ (20,188) |
$ (1,445) |
$ 19,545 |
|||||||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
- |
- |
- |
- |
|||||||
Adj: Loss on sale of AFS securities |
- |
- |
49,909 |
25,057 |
- |
|||||||
Adj: Restructuring expense and other non-operating expenses |
(297) |
(384) |
3,617 |
3,669 |
2,607 |
|||||||
Adj: Income taxes (expense)/benefit |
3,625 |
(473) |
(12,404) |
(7,091) |
(636) |
|||||||
Total operating income (1) |
(E) |
$ 24,789 |
$ 23,168 |
$ 20,934 |
$ 20,190 |
$ 21,516 |
||||||
(in millions, except per share data) |
||||||||||||
Total average assets |
(F) |
$ 11,695 |
$ 11,692 |
$ 11,755 |
$ 11,862 |
$ 11,860 |
||||||
Total average shareholders' equity |
(G) |
1,050 |
1,013 |
1,018 |
966 |
988 |
||||||
Total average tangible shareholders' equity (1) |
(I) |
1,034 |
995 |
999 |
946 |
967 |
||||||
Total accumulated other comprehensive (loss) net of tax, end of period |
(89) |
(115) |
(114) |
(143) |
(218) |
|||||||
Total tangible shareholders' equity, end of period (1) |
(K) |
1,054 |
996 |
991 |
993 |
930 |
||||||
Total tangible assets, end of period (1) |
(L) |
11,588 |
12,202 |
12,128 |
12,411 |
12,119 |
||||||
Total common shares outstanding, end of period (thousands) |
(M) |
42,982 |
42,959 |
43,415 |
43,501 |
43,822 |
||||||
Average diluted shares outstanding (thousands) |
(N) |
42,454 |
42,508 |
43,028 |
43,101 |
43,347 |
||||||
Earnings/(loss) per common share, diluted (1) |
$ 0.88 |
$ 0.57 |
$ (0.47) |
$ (0.03) |
$ 0.45 |
|||||||
Operating earnings per common share, diluted (1) |
(E/N) |
0.58 |
0.55 |
0.49 |
0.47 |
0.50 |
||||||
Tangible book value per common share, end of period (1) |
(K/M) |
24.53 |
23.18 |
22.84 |
22.82 |
21.23 |
||||||
Total tangible shareholders' equity/total tangible assets (1) |
(K/L) |
9.10 |
8.16 |
8.17 |
8.00 |
7.68 |
||||||
Performance ratios (2) |
||||||||||||
Return on equity |
14.29 |
% |
9.49 |
% |
(7.93) |
% |
(0.60) |
% |
7.91 |
% |
||
Operating return on equity (1) |
(E/G) |
9.44 |
9.15 |
8.23 |
8.36 |
8.71 |
||||||
Return on tangible common equity (1)(3) |
14.83 |
9.99 |
(7.73) |
(0.24) |
8.45 |
|||||||
Operating return on tangible common equity (1)(3) |
(E+Q)/(I) |
9.91 |
9.65 |
8.73 |
8.90 |
9.27 |
||||||
Return on assets |
1.28 |
0.82 |
(0.69) |
(0.05) |
0.66 |
|||||||
Operating return on assets (1) |
(E/F) |
0.85 |
0.79 |
0.71 |
0.68 |
0.73 |
||||||
Efficiency ratio (1)(6) |
(D-Q)/(B+O+R) |
63.74 |
63.40 |
66.26 |
67.77 |
65.05 |
||||||
Supplementary data (in thousands) |
||||||||||||
Tax benefit on tax-credit investments (4) |
(O) |
N/M |
N/M |
N/M |
$ 2,252 |
$ 1,979 |
||||||
Non-interest income tax-credit investments amortization (5) |
(P) |
N/M |
N/M |
N/M |
(2,060) |
(1,463) |
||||||
Net income on tax-credit investments |
(O+P) |
N/M |
N/M |
N/M |
193 |
516 |
||||||
Effective tax rate |
22.1 |
% |
23.1 |
% |
23.8 |
% |
75.7 |
% |
16.1 |
% |
||
Intangible amortization |
(Q) |
$ 1,128 |
$ 1,140 |
$ 1,205 |
$ 1,205 |
$ 1,205 |
||||||
Fully taxable equivalent income adjustment |
(R) |
2,023 |
2,013 |
2,006 |
2,021 |
1,980 |
||||||
(1) Non-GAAP financial measure. (2) 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. (3) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. (4) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. (5) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. (6) As of January 1, 2024, the Company elected the proportional amortization method for certain tax credits eliminating the need to adjust the efficiency ratio for tax credit impacts. |
BERKSHIRE HILLS BANCORP, INC. |
||||||
At or for the Nine Months Ended |
||||||
September 30, |
September 30, |
|||||
(in thousands) |
2024 |
2023 |
||||
Total non-interest income |
$ 25,089 |
$ 51,165 |
||||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
|||||
Adj: Loss on sale of AFS securities |
49,909 |
- |
||||
Total operating non-interest income (1) |
$ 58,950 |
$ 51,165 |
||||
Total revenue |
(A) |
$ 289,820 |
$ 331,791 |
|||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
- |
||||
Adj: Loss on sale of AFS securities |
49,909 |
- |
||||
Total operating revenue (1) |
(B) |
$ 323,681 |
$ 331,791 |
|||
Total non-interest expense |
(C) |
$ 218,911 |
$ 222,516 |
|||
Less: Merger, restructuring and other non-operating expenses |
(2,936) |
(2,592) |
||||
Operating non-interest expense (1) |
(D) |
$ 215,975 |
$ 219,924 |
|||
Pre-tax, pre-provision net revenue (PPNR) |
(A-C) |
$ 70,909 |
$ 109,275 |
|||
Operating pre-tax, pre-provision net revenue (PPNR) (1) |
(B-D) |
107,706 |
111,867 |
|||
Net income |
$ 41,346 |
$ 71,043 |
||||
Adj: Net (gains) on sale of business operations and assets |
(16,048) |
- |
||||
Adj: Loss on sale of AFS securities |
49,909 |
- |
||||
Adj: Restructuring expense and other non-operating expenses |
2,936 |
2,592 |
||||
Adj: Income taxes (expense) |
(9,252) |
(633) |
||||
Total operating income (1) |
(E) |
$ 68,891 |
$ 73,002 |
|||
(in millions, except per share data) |
||||||
Total average assets |
(F) |
$ 11,713 |
$ 11,830 |
|||
Total average shareholders' equity |
(G) |
1,027 |
990 |
|||
Total average tangible shareholders' equity (1) |
(I) |
1,009 |
967 |
|||
Total accumulated other comprehensive (loss) net of tax, end of period |
(89) |
(218) |
||||
Total tangible shareholders' equity, end of period (1) |
(K) |
1,054 |
930 |
|||
Total tangible assets, end of period (1) |
(L) |
11,588 |
12,119 |
|||
Total common shares outstanding, end of period (thousands) |
(M) |
42,982 |
43,822 |
|||
Average diluted shares outstanding (thousands) |
(N) |
42,658 |
43,640 |
|||
Earnings per common share, diluted (1) |
$ 0.97 |
$ 1.63 |
||||
Operating earnings per common share, diluted (1) |
(E/N) |
1.61 |
1.67 |
|||
Tangible book value per common share, end of period (1) |
(K/M) |
24.53 |
21.22 |
|||
Total tangible shareholders' equity/total tangible assets (1) |
(K/L) |
9.10 |
7.67 |
|||
Performance ratios (2) |
||||||
Return on equity |
5.37 |
% |
9.57 |
% |
||
Operating return on equity (1) |
(E/G) |
8.94 |
9.83 |
|||
Return on tangible common equity (1)(3) |
5.80 |
10.16 |
||||
Operating return on tangible common equity (1)(3) |
(E+Q)/(I) |
9.43 |
10.43 |
|||
Return on assets |
0.47 |
0.80 |
||||
Operating return on assets (1) |
(E/F) |
0.78 |
0.82 |
|||
Efficiency ratio (1)(6) |
(D-Q)/(B+O+R) |
64.45 |
62.65 |
|||
Net interest margin, FTE |
3.17 |
3.33 |
||||
Supplementary data (in thousands) |
||||||
Tax benefit on tax-credit investments (4) |
(O) |
N/M |
$ 7,611 |
|||
Non-interest income charge on tax-credit investments (5) |
(P) |
N/M |
(5,959) |
|||
Net income on tax-credit investments |
(O+P) |
N/M |
1,652 |
|||
Intangible amortization |
(Q) |
$ 3,473 |
$ 3,615 |
|||
Fully taxable equivalent income adjustment |
(R) |
6,042 |
5,850 |
|||
(1) Non-GAAP financial measure. (2) 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. (3) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. (4) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. (5) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. (6) As of January 1, 2024, the Company elected the proportional amortization method for certain tax credits eliminating the need to adjust the efficiency ratio for tax credit impacts |
SOURCE Berkshire Hills Bancorp, Inc.
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