Berkshire Hills Reports Higher Third Quarter Net Income of $37.5 million, or $0.88 Per Share
Berkshire Hills Bancorp (NYSE: BHLB) reported strong Q3 2024 results with net income of $37.5 million, or $0.88 per share, including a $16 million non-operating gain from branch sales. Operating EPS reached $0.58, up 5% quarter-over-quarter and 16% year-over-year. The company completed the sale of ten branch offices, reducing total branches by 14% to 83 offices. Operating revenue grew 1% linked quarter, while net interest margin slightly decreased to 3.16%. The company's balance sheet was strengthened through the sale of $46.5 million in consumer loans, and capital position improved with tangible common equity ratio rising to 9.1% from 8.2%.
Berkshire Hills Bancorp (NYSE: BHLB) ha riportato risultati solidi per il terzo trimestre 2024, con un utile netto di 37,5 milioni di dollari, ovvero 0,88 dollari per azione, inclusi un guadagno non operativo di 16 milioni di dollari derivante dalla vendita di filiali. L'utile per azione operativo ha raggiunto 0,58 dollari, con un aumento del 5% rispetto al trimestre precedente e del 16% rispetto all'anno precedente. L’azienda ha completato la vendita di dieci uffici filiali, riducendo il totale delle filiali del 14% a 83 uffici. I ricavi operativi sono aumentati dell'1% rispetto al trimestre collegato, mentre il margine d'interesse netto è leggermente diminuito al 3,16%. Il bilancio dell'azienda è stato rafforzato attraverso la vendita di 46,5 milioni di dollari in prestiti al consumo, e la posizione patrimoniale è migliorata con il rapporto di equity comune tangibile che è salito al 9,1% dal 8,2%.
Berkshire Hills Bancorp (NYSE: BHLB) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 37.5 millones de dólares, o 0.88 dólares por acción, incluyendo una ganancia no operativa de 16 millones de dólares por la venta de sucursales. El BPA operativo alcanzó 0.58 dólares, un aumento del 5% respecto al trimestre anterior y del 16% en comparación con el año anterior. La compañía completó la venta de diez oficinas, reduciendo el total de sucursales en un 14% a 83 oficinas. Los ingresos operativos crecieron un 1% en comparación con el trimestre anterior, mientras que el margen de interés neto disminuyó ligeramente al 3.16%. El balance de la compañía se fortaleció mediante la venta de 46.5 millones de dólares en préstamos al consumidor, y la posición de capital mejoró con la relación de capital común tangible aumentando al 9.1% desde el 8.2%.
버크셔 힐스 뱅코프 (NYSE: BHLB)는 2024년 3분기 실적을 발표했으며, 순이익은 3750만 달러로 주당 0.88달러를 기록했습니다. 여기에는 지점 판매로 인한 비운영 이익 1600만 달러가 포함됩니다. 운영 EPS는 0.58달러로, 전 분기 대비 5%, 전년 대비 16% 증가했습니다. 회사는 열 개의 지점 사무소 판매를 완료하였고, 총 지점을 14% 줄여 83사무소로 감소했습니다. 운영 수익은 이전 분기 대비 1% 증가했으며, 순이자 마진은 3.16%로 약간 감소했습니다. 회사의 재무제표는 4650만 달러의 소비자 대출 매각을 통해 강화되었고, 유동자산 비율은 8.2%에서 9.1%로 향상되었습니다.
Berkshire Hills Bancorp (NYSE: BHLB) a annoncé des résultats solides pour le troisième trimestre 2024, avec un bénéfice net de 37,5 millions de dollars, soit 0,88 dollar par action, y compris un gain non opérationnel de 16 millions de dollars provenant de la vente d'agences. Le BPA opérationnel a atteint 0,58 dollar, en hausse de 5 % par rapport au trimestre précédent et de 16 % par rapport à l'année précédente. L'entreprise a complété la vente de dix bureaux d'agences, réduisant ainsi le nombre total d'agences de 14 % à 83. Le revenu opérationnel a augmenté de 1 % par rapport au trimestre précédent, tandis que la marge d'intérêt nette a légèrement diminué à 3,16 %. Le bilan de l'entreprise a été renforcé grâce à la vente de 46,5 millions de dollars de prêts à la consommation, et la position de capital s'est améliorée avec le ratio de capitaux propres tangibles passant de 8,2 % à 9,1 %.
Berkshire Hills Bancorp (NYSE: BHLB) hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit einem Nettogewinn von 37,5 Millionen Dollar, oder 0,88 Dollar pro Aktie, einschließlich eines nicht operativen Gewinns von 16 Millionen Dollar aus dem Verkauf von Filialen. Das operative EPS erreichte 0,58 Dollar, was einem Anstieg von 5% im Vergleich zum Vorquartal und 16% im Vergleich zum Vorjahr entspricht. Das Unternehmen hat den Verkauf von zehn Filialbüros abgeschlossen, wodurch die Gesamtanzahl der Filialen um 14% auf 83 gesenkt wurde. Der operative Umsatz wuchs im Vergleich zum vorherigen Quartal um 1%, während die Nettozinsmarge leicht auf 3,16% sank. Die Bilanz des Unternehmens wurde durch den Verkauf von 46,5 Millionen Dollar in Verbraucherkrediten gestärkt, und die Kapitalposition verbesserte sich, da das Verhältnis des bilanzierbaren Eigenkapitals von 8,2% auf 9,1% stieg.
- Net income increased to $37.5 million ($0.88/share) from $24.0 million previous quarter
- Operating EPS grew 16% year-over-year to $0.58
- Operating revenue up 1% linked quarter and 2% year-over-year
- Tangible common equity ratio improved to 9.1% from 8.2%
- Average deposit balances grew 1% quarter-over-quarter
- Net interest margin decreased to 3.16% from 3.20% quarter-over-quarter
- Net loan charge-offs increased to 0.24% from 0.07% in previous quarter
- Non-performing loans increased to 0.26% from 0.23% quarter-over-quarter
- Operating expenses increased $0.9 million linked quarter
Insights
Q3 results demonstrate solid financial performance with notable improvements. Operating EPS of
Key positives include improved capital ratios (tangible common equity ratio up to
The reduction in branch count by
The strategic repositioning through branch optimization and portfolio cleanup is well-timed given the current banking environment. The sale of 10 New York branches and exit from higher-risk consumer loans demonstrates management's focus on efficiency and risk management.
Deposit stability is particularly noteworthy, with
The bank's strong ESG performance and community engagement enhance its competitive position in the New England market, supporting sustainable growth potential.
Operating EPS of
non-operating gain on branch sale ($16 million per share after tax)$0.30 - Operating revenue up
1% linked quarter and2% year-over-year 14.8% return on tangible common equity;9.9% operating return on tangible common equity- Branch sale and loan sale are expected to further improve long-term profitability
($ 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 million respectively (average), and |
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
Berkshire CFO Brett Brbovic added, "Operating revenue grew
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
3Q 2024 Financial Highlights (comparisons are to the prior quarter unless otherwise noted).
Income Statement. GAAP income was
- Net interest income totaled
in 3Q24 compared to$88.1 million in 2Q24.$88.5 million - 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
, a decrease of$5.5 million linked quarter.$1.0 million - Net loan charge-offs totaling
included$5.6 million in consumer losses which included a$3.9 million charge-off recorded for the Upstart-related consumer loan sale.$1.9 million - The net annualized loan charge-off ratio was
0.24% . Excluding the impact of consumer loans sold, annualized net loan charge-offs were0.16% of average third quarter loans.
- Net loan charge-offs totaling
- GAAP non-interest income of
included a$37.6 million non-operating gain on the$16.0 million New York branch sale. Operating non-interest income totaled , an increase of$21.5 million 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.
- Linked quarter growth was primarily in loan related fees which increased
- Non-interest expense totaled
on a GAAP basis and$72.0 million on an operating basis. Operating non-interest expense increased$72.3 million 1% linked quarter and decreased2% year-over-year.- Compensation and benefits expense increased
linked quarter.$0.5 million - Occupancy, equipment, and technology expense decreased
.$0.9 million - The category of other expense increased
primarily due to one commercial check fraud.$1.6 million - The efficiency ratio was
63.7% compared to63.4% linked quarter.
- Compensation and benefits expense increased
- The effective tax rate was
22% for the quarter and the year-to-date.
Loans. Total loans decreased
- Commercial real estate loans increased
to$35 million .$4.74 billion - Commercial and industrial loans decreased
to$12 million .$1.41 billion - Residential mortgage loans increased
to$14 million .$2.69 billion - Consumer loans decreased
to$53 million due to the pending Upstart loan sale. This sale was completed on October 16, 2024. The remaining balance of Upstart-related loans was$372 million at quarter-end.$10 million - 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 to0.23% at prior quarter-end.
Deposits. Total deposits decreased
- Non-interest bearing deposits increased
to$46 million , increasing to$2.26 billion 24% of total deposits from23% . - Non-maturity interest bearing deposits decreased
to$260 million .$4.79 billion - Time deposits increased
to$170 million .$2.52 billion
Equity. Total shareholders' equity increased
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
kaconn@berkshirebank.com
MEDIA CONTACT
Gary Levante
Corporate Communications
413.447.1737
glevante@berkshirebank.com
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 | ||||||
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 | ||||||
51 | - | - | 97 | - | - | - | - | - | |||||||
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) (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 (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 (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 |
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SOURCE Berkshire Hills Bancorp, Inc.
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