Berkshire Hills Reports Third Quarter Net Income of $20 Million, or $0.45 Earnings per Share
- Average loan growth of 2%
- Maintained strong asset quality, liquidity, and capital levels
- Modest balance sheet growth
- Attractive new business and improved market position
- Net interest income decreased $2.4 million
- Higher funding costs outpaced loan yield expansion
- Operating earnings decreased $2.4 million linked quarter
Operating Income of
- Average loan growth of
2% linked quarter; average deposit growth of1% - Operating expense flat linked quarter
- Net loan charge-offs decreased
$0.3 million - TCE ratio of
7.7% and CET1 ratio of12.1% ; stock repurchases were$4 million
($ in millions, except per share data) | Three Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | ||||
Net income | $ | 19.5 | $ | 23.9 | $ | |
Per share | 0.45 | 0.55 | 0.42 | |||
Operating earnings1 | 21.5 | 23.9 | 27.9 | |||
Per share | 0.50 | 0.55 | 0.62 | |||
Net interest income, non FTE | $ | 90.3 | $ | 92.8 | $ | 92.1 |
Net interest income, FTE | 92.3 | 94.7 | 93.8 | |||
Net interest margin, FTE | 3.18 % | 3.24 % | 3.48 % | |||
Non-interest income | 17.5 | 17.1 | 16.3 | |||
Operating non-interest income1 | 17.5 | 17.1 | 16.7 | |||
Non-interest expense | $ | 76.5 | $ | 74.0 | $ | 81.7 |
Operating non-interest expense1 | 73.9 | 74.0 | 70.2 | |||
Efficiency ratio1 | 65.1 % | 63.6 % | 62.0 % | |||
Average balances | ||||||
Loans | $ | 8,952 | $ | 8,791 | $ | 7,888 |
Deposits | 9,630 | 9,568 | 9,669 | |||
Period-end balances | ||||||
Loans | 8,984 | 8,882 | 7,943 | |||
Deposits | 9,981 | 10,068 | 9,988 | |||
1. See non-GAAP financial measures and reconciliation to GAAP measures beginning on page 12. | ||||||
Berkshire CEO Nitin Mhatre stated, "We continue to make steady progress in a challenging interest rate environment. We posted modest balance sheet growth in the quarter and recorded higher year-to-date net income and operating earnings compared to last year. Economic activity continues to expand in our markets albeit at a slower pace, and our teams are generating attractive new business and improving the Bank's market position. We maintained strong asset quality, liquidity and capital levels, and continued expense optimization initiatives. During the quarter, we continued to recruit experienced talent following the industry disruption, and we also welcomed Mary Anne Callahan to our Board of Directors. Mary Anne brings a deep industry knowledge and has close familiarity with our markets."
CFO David Rosato added, "Third quarter operating earnings were
As of and For the Three Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |||||
Asset Quality | |||||||
Net loan charge-offs to average loans | 0.24 % | 0.26 % | 0.30 % | ||||
Non-performing loans to total loans | 0.30 % | 0.32 % | 0.48 % | ||||
Returns | |||||||
Return on average assets | 0.66 % | 0.79 % | 0.67 % | ||||
Return on tangible common equity, including unrealized losses on AFS securities 1 | 8.45 % | 10.09 % | 7.88 % | ||||
Return on tangible common equity, excluding unrealized losses on AFS securities 1 | 6.76 % | 8.26 % | 6.76 % | ||||
Capital Ratios2 | |||||||
Tangible common equity/tangible assets1 | 7.7 % | 7.9 % | 8.1 % | ||||
Tier 1 leverage | 9.8 % | 9.6 % | 10.1 % | ||||
Common equity Tier 1 | 12.1 % | 12.1 % | 12.7 % | ||||
Tier 1 risk-based | 12.4 % | 12.3 % | 13.0 % | ||||
Total risk-based | 14.4 % | 14.4 % | 15.1 % | ||||
1. See non-GAAP measures and reconciliation to GAAP beginning on beginning on page 12. | |||||||
Headquartered in
3Q 2023 Financial Highlights
Income Statement
- GAAP earnings totaled
$19.5 million , or$0.45 - Operating earnings totaled
$21.5 million $0.50
- Operating earnings totaled
- Net interest income totaled
$90.3 $92.8 million in 2Q23.- One additional calendar day in 3Q23 (
1% increase in net interest income).
- One additional calendar day in 3Q23 (
- Net interest margin decreased 6 basis points from 2Q23 to
3.18% reflecting:- Higher cost of funds (increase of 21 basis points).
- Includes higher deposit costs (increase of 30 basis points).
- Higher yields on the loan portfolio (increase of 11 basis points).
- Provision for credit losses on loans totaled
$8.0 million .- Allowance for credit losses on loans increased
$2.6 million - Net loan charge-offs totaled
$5.4 million - Net annualized loan charge-off ratio of
0.24% .
- Allowance for credit losses on loans increased
- Non-interest income totaled
$17.5 million in 3Q23 compared to$17.1 million in 2Q23.- Deposit related fee revenue increased
$221 thousand - Loan related non-interest revenue decreased
$310 thousand - Gain on SBA loan sales decreased
$362 thousand - Wealth management revenue decreased
$102 thousand $1.4 billion - Other non-interest income increased
$1.4 million
- Deposit related fee revenue increased
- Non-interest expense in 3Q23 totaled
$76.5 million on a GAAP basis and$73.9 million $74.0 million - Non-operating expense totaled
$2.6 million Massachusetts branches. - Compensation and benefits expense increased
$195 thousand - Occupancy and equipment expense decreased
$154 thousand - Technology and communications expense increased
$151 thousand - Professional services expense decreased
$103 thousand - The efficiency ratio was
65.1% for 3Q23 compared to63.6% for 2Q23.
- Non-operating expense totaled
- The effective income tax rate was
16.1% for 3Q23 and15.7% for the first nine months of 2023 compared to18.7% for the full year of 2022.
Loans
- Commercial real estate loans totaled
$4.5 billion at September 30, 2023, a$138 - Average commercial real estate loans totaled
$4.4 billion $102 million
- Average commercial real estate loans totaled
- Commercial and industrial loans totaled
$1.4 billion $81 million - Average commercial and industrial loans totaled
$1.4 billion $60 million
- Average commercial and industrial loans totaled
- Residential mortgage loans totaled
$2.6 billion at September 30, 2023, a$55 million increase from June 30, 2023.- Average residential mortgage loans totaled
$2.6 billion $129 million
- Average residential mortgage loans totaled
- Consumer loans totaled
$507 million at September 30, 2023, an$11 - Average consumer loans totaled
$513 million in 3Q23, an$11 million decrease from 2Q23.
- Average consumer loans totaled
- Non-performing loans to total loans was
0.30% at September 30, 2023 compared to0.32% at June 30, 2023. - The allowance for credit losses to total loans was
1.14% at September 30, 2023, compared to1.13% at June 30, 2023
Deposits
- Non-interest bearing deposits totaled
$2.5 billion $64 million - Average non-interest bearing deposits totaled
$2.6 billion $41 million - Time deposits totaled
$2.4 billion $10 million - Average time deposits totaled
$2.4 billion $154 million
3Q 2023 ESG & Corporate Responsibility Highlights
Berkshire is a performance and purpose-driven, values-guided, community-centered bank. Berkshire's corporate responsibility and sustainability activities are integral to its mission.
- Berkshire launched a new Down Payment Assistance Program to increase homeownership amongst low-to-moderate income and first-time homebuyers.
- Berkshire's annual Xtraordinary Day of Service featured 47 volunteer events in which more than 1,000 employees contributed 4,000 hours of service to lift-up local communities.
- Berkshire maintained its top quartile ESG rating performance and was named a Top Charitable Contributor by the Boston Business Journal for the 11th consecutive year.
Conference Call and Investor Presentation. Berkshire will conduct a conference call/webcast at 9:00 a.m. eastern time on Friday, October 20, 2023 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 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) | ||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||
NOMINAL AND PER SHARE DATA | ||||||||||||||
Net earnings per common share, diluted | $ 0.45 | $ 0.55 | $ 0.63 | $ 0.69 | $ 0.42 | |||||||||
Operating earnings per common share, diluted (2)(3) | 0.50 | 0.55 | 0.63 | 0.64 | 0.62 | |||||||||
Net income, (thousands) | 19,545 | 23,861 | 27,637 | 30,505 | 18,717 | |||||||||
Operating net income, (thousands) (2)(3) | 21,516 | 23,878 | 27,608 | 28,254 | 27,928 | |||||||||
Net interest income, (thousands) non FTE | 90,334 | 92,759 | 97,533 | 102,092 | 92,084 | |||||||||
Net interest income, FTE (5) | 92,314 | 94,721 | 99,441 | 103,937 | 93,799 | |||||||||
Total common shares outstanding, end of period (thousands) | 43,822 | 44,033 | 44,411 | 44,361 | 45,040 | |||||||||
Average diluted shares, (thousands) | 43,347 | 43,532 | 44,036 | 44,484 | 45,034 | |||||||||
Total book value per common share, end of period | 21.70 | 22.11 | 22.42 | 21.51 | 20.93 | |||||||||
Tangible book value per common share, end of period (2)(3) | 21.23 | 21.60 | 21.89 | 20.95 | 20.36 | |||||||||
Dividends per common share | 0.18 | 0.18 | 0.18 | 0.18 | 0.12 | |||||||||
Dividend payout ratio | 40.56 | % | 33.47 | % | 28.98 | % | 26.59 | % | 29.35 | % | ||||
PERFORMANCE RATIOS (4) | ||||||||||||||
Return on equity, including unrealized losses on AFS securities | 7.91 | % | 9.51 | % | 11.31 | % | 12.63 | % | 7.31 | % | ||||
Return on equity, excluding unrealized losses on AFS securities | 6.35 | 7.82 | 9.11 | 10.06 | 6.30 | |||||||||
Operating return on equity, including unrealized losses on AFS securities (2)(3) | 8.71 | 9.51 | 11.30 | 11.70 | 10.92 | |||||||||
Operating return on equity, excluding unrealized losses on AFS securities (2)(3) | 6.99 | 7.82 | 9.10 | 9.32 | 9.40 | |||||||||
Return on tangible common equity, including unrealized losses on AFS securities (2)(3) | 8.45 | 10.09 | 11.96 | 13.36 | 7.88 | |||||||||
Return on tangible common equity, excluding unrealized losses on AFS securities (2)(3) | 6.76 | 8.26 | 9.59 | 10.59 | 6.76 | |||||||||
Operating return on tangible common equity, including unrealized losses on AFS securities (2)(3) | 9.27 | 10.09 | 11.96 | 12.40 | 11.57 | |||||||||
Operating return on tangible common equity, excluding unrealized losses on AFS securities (2)(3) | 7.41 | 8.27 | 9.59 | 9.83 | 9.92 | |||||||||
Return on assets | 0.66 | 0.79 | 0.96 | 1.10 | 0.67 | |||||||||
Operating return on assets (2)(3) | 0.73 | 0.79 | 0.95 | 1.02 | 1.00 | |||||||||
Net interest margin, FTE (5) | 3.18 | 3.24 | 3.58 | 3.84 | 3.48 | |||||||||
Efficiency ratio (3) | 65.05 | 63.57 | 59.51 | 58.25 | 62.01 | |||||||||
FINANCIAL DATA (in millions, end of period) | ||||||||||||||
Total assets | $ 12,140 | $ 12,090 | $ 12,320 | $ 11,663 | $ 11,317 | |||||||||
Total earning assets | 11,400 | 11,370 | 11,615 | 10,913 | 10,604 | |||||||||
Total loans | 8,984 | 8,882 | 8,682 | 8,335 | 7,943 | |||||||||
Total deposits | 9,981 | 10,068 | 10,068 | 10,327 | 9,988 | |||||||||
Loans/deposits (%) | 90 | % | 88 | % | 86 | % | 81 | % | 80 | % | ||||
Total accumulated other comprehensive (loss) net of tax, end of period | $ (218) | $ (186) | $ (159) | $ (181) | $ (188) | |||||||||
Total shareholders' equity | 951 | 973 | 995 | 954 | 943 | |||||||||
ASSET QUALITY | ||||||||||||||
Allowance for credit losses, (millions) | $ 103 | $ 100 | $ 98 | $ 96 | $ 96 | |||||||||
Net charge-offs, (millions) | (5) | (6) | (7) | (12) | (6) | |||||||||
Net charge-offs (QTD annualized)/average loans | 0.24 | % | 0.26 | % | 0.32 | % | 0.58 | % | 0.30 | % | ||||
Provision expense, (millions) | $ 8 | $ 8 | $ 9 | $ 12 | $ 3 | |||||||||
Non-performing assets, (millions) | 29 | 31 | 29 | 33 | 40 | |||||||||
Non-performing loans/total loans | 0.30 | % | 0.32 | % | 0.31 | % | 0.37 | % | 0.48 | % | ||||
Allowance for credit losses/non-performing loans | 386 | 353 | 363 | 309 | 254 | |||||||||
Allowance for credit losses/total loans | 1.14 | 1.13 | 1.13 | 1.15 | 1.21 | |||||||||
CAPITAL RATIOS | ||||||||||||||
Risk weighted assets, (millions)(6) | $ 9,581 | $ 9,523 | $ 9,454 | $ 9,151 | $ 8,823 | |||||||||
Common equity Tier 1 capital to risk weighted assets (6) | 12.1 | % | 12.1 | % | 12.1 | % | 12.4 | % | 12.7 | % | ||||
Tier 1 capital leverage ratio (6) | 9.8 | 9.6 | 9.9 | 10.2 | 10.1 | |||||||||
Tangible common shareholders' equity/tangible assets (3) | 7.7 | 7.9 | 7.9 | 8.0 | 8.1 | |||||||||
(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, 2023 and actual for the remaining periods. | |||||||||||||||||||||||||||||||
BERKSHIRE HILLS BANCORP, INC. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
September 30, | June 30, | December 31, | September 30, | |
(in thousands) | 2023 | 2023 | 2022 | 2022 |
Assets | ||||
Cash and due from banks | $ 120,634 | $ 120,285 | $ 145,342 | $ 128,509 |
Short-term investments | 542,836 | 520,315 | 540,013 | 566,404 |
Total cash and cash equivalents | 663,470 | 640,600 | 685,355 | 694,913 |
Trading securities, at fair value | 6,171 | 6,405 | 6,708 | 6,812 |
Equity securities, at fair value | 12,325 | 12,868 | 12,856 | 12,790 |
Securities available for sale, at fair value | 1,260,391 | 1,340,331 | 1,423,200 | 1,470,949 |
Securities held to maturity, at amortized cost | 552,981 | 563,765 | 583,453 | 592,503 |
Federal Home Loan Bank stock | 38,912 | 34,714 | 7,219 | 7,264 |
Total securities | 1,870,780 | 1,958,083 | 2,033,436 | 2,090,318 |
Less: Allowance for credit losses on investment securities | (69) | (71) | (91) | (95) |
Net securities | 1,870,711 | 1,958,012 | 2,033,345 | 2,090,223 |
Loans held for sale | 2,342 | 8,708 | 4,311 | 4,124 |
Commercial real estate loans | 4,453,573 | 4,315,202 | 4,095,079 | 3,902,422 |
Commercial and industrial loans | 1,384,038 | 1,464,922 | 1,473,316 | 1,435,070 |
Residential mortgages | 2,640,210 | 2,584,959 | 2,216,410 | 2,032,899 |
Consumer loans | 506,556 | 517,319 | 550,504 | 573,090 |
Total loans | 8,984,377 | 8,882,402 | 8,335,309 | 7,943,481 |
Less: Allowance for credit losses on loans | (102,792) | (100,219) | (96,270) | (96,013) |
Net loans | 8,881,585 | 8,782,183 | 8,239,039 | 7,847,468 |
Premises and equipment, net | 70,042 | 76,903 | 85,217 | 86,809 |
Other intangible assets | 20,869 | 22,074 | 24,483 | 25,761 |
Other assets | 619,777 | 593,621 | 587,854 | 563,946 |
Assets held for sale | 11,157 | 8,220 | 3,260 | 3,830 |
Total assets | $ 12,139,953 | $ 12,090,321 | $ 11,662,864 | $ 11,317,074 |
Liabilities and shareholders' equity | ||||
Non-interest bearing deposits | $ 2,530,441 | $ 2,594,528 | $ 2,852,127 | $ 2,896,659 |
NOW and other deposits | 843,032 | 944,775 | 1,054,596 | 1,045,970 |
Money market deposits | 3,075,307 | 3,005,081 | 3,723,570 | 3,388,932 |
Savings deposits | 1,086,329 | 1,088,405 | 1,063,269 | 1,111,304 |
Time deposits | 2,445,435 | 2,435,618 | 1,633,707 | 1,545,256 |
Total deposits | 9,980,544 | 10,068,407 | 10,327,269 | 9,988,121 |
Federal Home Loan Bank advances | 804,295 | 674,345 | 4,445 | 4,494 |
Subordinated borrowings | 121,300 | 121,238 | 121,064 | 121,001 |
Total borrowings | 925,595 | 795,583 | 125,509 | 125,495 |
Other liabilities | 282,805 | 252,950 | 256,024 | 260,896 |
Total liabilities | 11,188,944 | 11,116,940 | 10,708,802 | 10,374,512 |
Common shareholders' equity | 951,009 | 973,381 | 954,062 | 942,562 |
Total shareholders' equity | 951,009 | 973,381 | 954,062 | 942,562 |
Total liabilities and shareholders' equity | $ 12,139,953 | $ 12,090,321 | $ 11,662,864 | $ 11,317,074 |
BERKSHIRE HILLS BANCORP, INC. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
(in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||
Interest income | $ 148,021 | $ 103,671 | $ 425,762 | $ 265,873 | ||||
Interest expense | 57,687 | 11,587 | 145,136 | 23,368 | ||||
Net interest income, non FTE | 90,334 | 92,084 | 280,626 | 242,505 | ||||
Non-interest income | ||||||||
Deposit related fees | 8,792 | 8,377 | 25,674 | 23,733 | ||||
Loan fees and other | 2,879 | 1,292 | 8,537 | 7,344 | ||||
Gain on SBA loan sales | 2,548 | 2,551 | 7,952 | 9,515 | ||||
Wealth management fees | 2,481 | 2,353 | 7,803 | 7,753 | ||||
Other | 1,232 | 2,154 | 1,454 | 7,132 | ||||
Total non-interest income excluding (losses)/gains | 17,932 | 16,727 | 51,420 | 55,477 | ||||
Fair value adjustments on securities | (467) | (476) | (255) | (2,194) | ||||
Total non-interest income | 17,465 | 16,251 | 51,165 | 53,283 | ||||
Total net revenue | 107,799 | 108,335 | 331,791 | 295,788 | ||||
Provision expense/(benefit) for credit losses | 8,000 | 3,000 | 24,999 | (1,000) | ||||
Non-interest expense | ||||||||
Compensation and benefits | 40,155 | 39,422 | 119,186 | 114,773 | ||||
Occupancy and equipment | 8,816 | 8,702 | 27,165 | 28,207 | ||||
Technology and communications | 10,616 | 8,719 | 30,552 | 25,857 | ||||
Professional services | 2,423 | 3,285 | 8,226 | 8,890 | ||||
Other expenses | 11,896 | 10,076 | 34,795 | 29,449 | ||||
Merger, restructuring and other non-operating expenses | 2,607 | 11,473 | 2,592 | 11,526 | ||||
Total non-interest expense | 76,513 | 81,677 | 222,516 | 218,702 | ||||
Total non-interest expense excluding merger, restructuring and other | 73,906 | 70,204 | 219,924 | 207,176 | ||||
Income before income taxes | $ 23,286 | $ 23,658 | $ 84,276 | $ 78,086 | ||||
Income tax expense | 3,741 | 4,941 | 13,233 | 16,058 | ||||
Net income | $ 19,545 | $ 18,717 | $ 71,043 | $ 62,028 | ||||
Basic earnings per common share | $ 0.45 | $ 0.42 | $ 1.64 | $ 1.35 | ||||
Diluted earnings per common share | $ 0.45 | $ 0.42 | $ 1.63 | $ 1.34 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 43,164 | 44,700 | 43,435 | 46,056 | ||||
Diluted | 43,347 | 45,034 | 43,640 | 46,396 | ||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) | |||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | |||||||
(in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||
Interest income | $ 148,021 | $ 145,425 | $ 132,316 | $ 121,384 | $ 103,671 | ||||||
Interest expense | 57,687 | 52,666 | 34,783 | 19,292 | 11,587 | ||||||
Net interest income, non FTE | 90,334 | 92,759 | 97,533 | 102,092 | 92,084 | ||||||
Non-interest income | |||||||||||
Deposit related fees | 8,792 | 8,571 | 8,311 | 8,293 | 8,377 | ||||||
Loan fees and other | 2,879 | 3,189 | 2,469 | 2,123 | 1,292 | ||||||
Gain on SBA loan sales | 2,548 | 2,910 | 2,494 | 2,979 | 2,551 | ||||||
Wealth management fees | 2,481 | 2,583 | 2,739 | 2,255 | 2,353 | ||||||
Other | 1,232 | (137) | 359 | (159) | 2,154 | ||||||
Total non-interest income excluding (losses)/gains | 17,932 | 17,116 | 16,372 | 15,491 | 16,727 | ||||||
Fair value adjustments on securities | (467) | (22) | 234 | 163 | (476) | ||||||
Total non-interest income | 17,465 | 17,094 | 16,606 | 15,654 | 16,251 | ||||||
Total net revenue | 107,799 | 109,853 | 114,139 | 117,746 | 108,335 | ||||||
Provision expense for credit losses | 8,000 | 8,000 | 8,999 | 12,000 | 3,000 | ||||||
Non-interest expense | |||||||||||
Compensation and benefits | 40,155 | 39,960 | 39,071 | 37,968 | 39,422 | ||||||
Occupancy and equipment | 8,816 | 8,970 | 9,379 | 9,431 | 8,702 | ||||||
Technology and communications | 10,616 | 10,465 | 9,471 | 9,729 | 8,719 | ||||||
Professional services | 2,423 | 2,526 | 3,277 | 3,153 | 3,285 | ||||||
Other expenses | 11,896 | 12,106 | 10,793 | 12,350 | 10,076 | ||||||
Merger, restructuring and other non-operating expenses | 2,607 | 21 | (36) | (2,617) | 11,473 | ||||||
Total non-interest expense | 76,513 | 74,048 | 71,955 | 70,014 | 81,677 | ||||||
Total non-interest expense excluding merger, restructuring and other | 73,906 | 74,027 | 71,991 | 72,631 | 70,204 | ||||||
Income before income taxes | $ 23,286 | $ 27,805 | $ 33,185 | $ 35,732 | $ 23,658 | ||||||
Income tax expense | 3,741 | 3,944 | 5,548 | 5,227 | 4,941 | ||||||
Net income | $ 19,545 | $ 23,861 | $ 27,637 | $ 30,505 | $ 18,717 | ||||||
Diluted earnings per common share | $ 0.45 | $ 0.55 | $ 0.63 | $ 0.69 | $ 0.42 | ||||||
Weighted average shares outstanding: | |||||||||||
Basic | 43,164 | 43,443 | 43,693 | 44,105 | 44,700 | ||||||
Diluted | 43,347 | 43,532 | 44,036 | 44,484 | 45,034 | ||||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||||||||
AVERAGE BALANCES AND AVERAGE YIELDS AND COSTS | |||||||||||||||||
Quarters Ended | |||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | |||||||||||||||
(in millions) | Average Balance | Interest (1) | Average Yield/Rate | Average Balance | Interest (1) | Average Yield/Rate | Average Balance | Interest (1) | Average Yield/Rate | ||||||||
Assets | |||||||||||||||||
Commercial real estate | $ 4,385 | $ 71 | 6.32 | % | $ 4,283 | $ 67 | 6.16 | % | $ 3,926 | $ 46 | 4.53 | % | |||||
Commercial and industrial loans | 1,436 | 27 | 7.48 | 1,496 | 27 | 7.27 | 1,449 | 19 | 5.21 | ||||||||
Residential mortgages | 2,618 | 26 | 3.97 | 2,488 | 24 | 3.87 | 1,926 | 17 | 3.53 | ||||||||
Consumer loans | 513 | 9 | 7.33 | 524 | 9 | 7.28 | 587 | 9 | 6.24 | ||||||||
Total loans | 8,952 | 133 | 5.88 | 8,791 | 127 | 5.77 | 7,888 | 91 | 4.54 | ||||||||
Securities (2) | 2,171 | 13 | 2.40 | 2,236 | 13 | 2.27 | 2,400 | 13 | 2.13 | ||||||||
Short-term investments and loans HFS | 267 | 3 | 4.76 | 560 | 7 | 4.94 | 342 | 2 | 1.96 | ||||||||
Total earning assets | 11,390 | 149 | 5.19 | 11,587 | 147 | 5.05 | 10,630 | 106 | 3.91 | ||||||||
Goodwill and other intangible assets | 21 | 22 | 26 | ||||||||||||||
Other assets | 449 | 448 | 494 | ||||||||||||||
Total assets | $ 11,860 | $ 12,057 | $ 11,150 | ||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||
Non-interest-bearing demand deposits | $ 2,553 | $ 0 | - | % | $ 2,594 | $ 0 | - | % | $ 2,913 | $ 0 | - | % | |||||
NOW and other | 858 | 2 | 1.15 | 1,055 | 4 | 1.35 | 1,362 | 2 | 0.48 | ||||||||
Money market | 2,697 | 18 | 2.69 | 2,555 | 14 | 2.13 | 2,737 | 3 | 0.46 | ||||||||
Savings | 1,082 | 2 | 0.77 | 1,077 | - | 0.50 | 1,129 | 0 | 0.03 | ||||||||
Time | 2,440 | 22 | 3.43 | 2,287 | 18 | 3.07 | 1,528 | 3 | 0.85 | ||||||||
Total deposits | 9,630 | 44 | 1.81 | 9,568 | 36 | 1.51 | 9,669 | 8 | 0.48 | ||||||||
Borrowings (3) | 1,010 | 14 | 5.32 | 1,288 | 17 | 5.14 | 251 | 4 | 5.46 | ||||||||
Total funding liabilities | 10,640 | 58 | 2.15 | 10,856 | 53 | 1.94 | 9,920 | 12 | 0.66 | ||||||||
Other liabilities | 232 | 197 | 206 | ||||||||||||||
Total liabilities | 10,872 | 11,053 | 10,126 | ||||||||||||||
Common shareholders' equity (4) | 988 | 1,004 | 1,024 | ||||||||||||||
Total shareholders' equity | 988 | 1,004 | 1,024 | ||||||||||||||
Total liabilities and shareholders' equity | $ 11,860 | $ 12,057 | $ 11,150 | ||||||||||||||
Net interest margin, FTE | 3.18 | 3.24 | 3.48 | ||||||||||||||
Supplementary data | |||||||||||||||||
Net Interest Income, non FTE | 90.334 | 92.759 | 92.084 | ||||||||||||||
FTE income adjustment | 1.980 | 1.962 | 1.715 | ||||||||||||||
Net Interest Income, FTE | 92.314 | 94.721 | 93.799 | ||||||||||||||
(1) Interest income and expense presented on a fully taxable equivalent basis. | ||||||||||||||||||||||||
(2) Average balances for securities available-for-sale are based on amortized cost. | ||||||||||||||||||||||||
(3) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet. | ||||||||||||||||||||||||
(4) As of September 30, 2023 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. | |||||||||||
ASSET QUALITY ANALYSIS | |||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | |||||||
(in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||
NON-PERFORMING ASSETS | |||||||||||
Commercial real estate | $ 5,288 | $ 1,509 | $ 2,546 | $ 2,434 | $ 2,976 | ||||||
Commercial and industrial loans | 11,028 | 15,597 | 12,155 | 17,023 | 21,008 | ||||||
Residential mortgages | 8,060 | 8,722 | 9,442 | 8,612 | 10,407 | ||||||
Consumer loans | 2,260 | 2,560 | 2,848 | 3,045 | 3,463 | ||||||
Total non-performing loans | 26,636 | 28,388 | 26,991 | 31,114 | 37,854 | ||||||
Repossessed assets | 2,548 | 2,549 | 2,462 | 2,209 | 2,175 | ||||||
Total non-performing assets | $ 29,184 | $ 30,937 | $ 29,453 | $ 33,323 | $ 40,029 | ||||||
Total non-performing loans/total loans | 0.30 % | 0.32 % | 0.31 % | 0.37 % | 0.48 % | ||||||
Total non-performing assets/total assets | 0.24 % | 0.26 % | 0.24 % | 0.29 % | 0.35 % | ||||||
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||
Balance at beginning of period | $ 100,219 | $ 97,991 | $ 96,270 | $ 96,013 | $ 99,021 | ||||||
Adoption of ASU No. 2022-02 | - | - | (401) | - | - | ||||||
Balance after adoption of ASU No. 2022-02 | 100,219 | 97,991 | 95,869 | 96,013 | 99,021 | ||||||
Charged-off loans | (6,744) | (7,686) | (7,936) | (12,995) | (7,424) | ||||||
Recoveries on charged-off loans | 1,317 | 1,914 | 1,059 | 1,252 | 1,416 | ||||||
Net loans charged-off | (5,427) | (5,772) | (6,877) | (11,743) | (6,008) | ||||||
Provision (benefit)/expense for loan credit losses | 8,000 | 8,000 | 8,999 | 12,000 | 3,000 | ||||||
Balance at end of period | $ 102,792 | $ 100,219 | $ 97,991 | $ 96,270 | $ 96,013 | ||||||
Allowance for credit losses/total loans | 1.14 % | 1.13 % | 1.13 % | 1.15 % | 1.21 % | ||||||
Allowance for credit losses/non-performing loans | 386 % | 353 % | 363 % | 309 % | 254 % | ||||||
NET LOAN CHARGE-OFFS | |||||||||||
Commercial real estate | $ 97 | $ 664 | $ 122 | $ 187 | $ (854) | ||||||
Commercial and industrial loans | (3,345) | (4,146) | (5,695) | (10,914) | (4,931) | ||||||
Residential mortgages | 23 | (143) | 305 | 192 | 122 | ||||||
Home equity | 208 | 126 | 16 | (128) | 1 | ||||||
Auto and other consumer | (2,410) | (2,273) | (1,625) | (1,080) | (346) | ||||||
Total, net | $ (5,427) | $ (5,772) | $ (6,877) | $ (11,743) | $ (6,008) | ||||||
Net charge-offs (QTD annualized)/average loans | 0.24 % | 0.26 % | 0.32 % | 0.58 % | 0.30 % | ||||||
Net charge-offs (YTD annualized)/average loans | 0.28 % | 0.29 % | 0.32 % | 0.27 % | 0.16 % | ||||||
DELINQUENT AND NON-PERFORMING LOANS | Balance | Percent of Total Loans | Balance | Percent of Total Loans | Balance | Percent of Total Loans | Balance | Percent of Total Loans | Balance | Percent of Total Loans | |
30-89 Days delinquent | $ 18,700 | 0.21 % | $ 15,147 | 0.17 % | $ 14,210 | 0.16 % | $ 12,162 | 0.15 % | $ 14,662 | 0.18 % | |
90+ Days delinquent and still accruing | 5,744 | 0.06 % | 7,812 | 0.09 % | 6,937 | 0.08 % | 7,038 | 0.08 % | 6,285 | 0.08 % | |
Total accruing delinquent loans | 24,444 | 0.27 % | 22,959 | 0.26 % | 21,147 | 0.24 % | 19,200 | 0.23 % | 20,947 | 0.26 % | |
Non-performing loans | 26,636 | 0.30 % | 28,399 | 0.32 % | 26,991 | 0.31 % | 31,114 | 0.37 % | 37,854 | 0.48 % | |
Total delinquent and non-performing loans | $ 51,080 | 0.57 % | $ 51,358 | 0.58 % | $ 48,138 | 0.55 % | $ 50,314 | 0.60 % | $ 58,801 | 0.74 % | |
BERKSHIRE HILLS BANCORP, INC.
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.
The Company utilizes the non-GAAP measure of operating earnings in evaluating operating trends, including components for operating revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations. These items primarily include restructuring costs. Restructuring costs generally consist of costs and losses associated with the disposition of assets and liabilities and lease terminations, including costs related to branch consolidations.
The Company also calculates operating earnings per share based on its measure of operating earnings and diluted common shares. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to merger and acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Expense adjustments in 2023 and 2022 were primarily related to branch consolidations. For 2022, fair value adjustments on securities were primarily due to unrealized equity securities losses due to changes in market conditions. Starting March 31, 2023 fair value adjustments on securities are included in operating income.
Management believes that the computation of non-GAAP operating earnings and operating earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
BERKSHIRE HILLS BANCORP, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA | |||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | |||||||||
(in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||
Total non-interest income | $ 17,465 | $ 17,094 | $ 16,606 | $ 15,654 | $ 16,251 | ||||||||
Adj: Fair value adjustments on securities (1) | - | - | - | (163) | 476 | ||||||||
Total operating non-interest income (2) | $ 17,465 | $ 17,094 | $ 16,606 | $ 15,491 | $ 16,727 | ||||||||
Total revenue | (A) | $ 107,799 | $ 109,853 | $ 114,139 | $ 117,746 | ||||||||
Adj: Fair value adjustments on securities (1) | - | - | - | (163) | 476 | ||||||||
Total operating revenue (2) | (B) | $ 107,799 | $ 109,853 | $ 114,139 | $ 117,583 | ||||||||
Total non-interest expense | (C) | $ 76,513 | $ 74,048 | $ 71,955 | $ 70,014 | $ 81,677 | |||||||
Adj: Merger, restructuring and other non-operating expenses | (2,607) | (21) | 36 | 2,617 | (11,473) | ||||||||
Operating non-interest expense (2) | (D) | $ 73,906 | $ 74,027 | $ 71,991 | $ 72,631 | $ 70,204 | |||||||
Pre-tax, pre-provision net revenue (PPNR) | (A-C) | $ 31,286 | $ 35,805 | $ 42,184 | $ 47,732 | $ 26,658 | |||||||
Operating pre-tax, pre-provision net revenue (PPNR) (2) | (B-D) | 33,893 | 35,826 | 42,148 | 44,952 | 38,607 | |||||||
Net income | $ 19,545 | $ 23,861 | $ 27,637 | $ 30,505 | $ 18,717 | ||||||||
Adj: Fair value adjustments on securities (1) | - | - | - | (163) | 476 | ||||||||
Adj: Restructuring expense and other non-operating expenses | 2,607 | 21 | (36) | (2,617) | 11,473 | ||||||||
Adj: Income taxes (expense)/benefit | (636) | (4) | 7 | 529 | (2,738) | ||||||||
Total operating income (2) | (E) | $ 21,516 | $ 23,878 | $ 27,608 | $ 28,254 | $ 27,928 | |||||||
(in millions, except per share data) | |||||||||||||
Total average assets | (F) | $ 11,860 | $ 12,057 | $ 11,569 | $ 11,074 | $ 11,150 | |||||||
Total average shareholders' equity, including unrealized losses on AFS securities | (G) | 988 | 1,004 | 978 | 966 | 1,023 | |||||||
Total average shareholders' equity, excluding unrealized losses on AFS securities | (H) | 1,231 | 1,221 | 1,214 | 1,213 | 1,189 | |||||||
Total average tangible shareholders' equity, including unrealized losses on AFS securities (2) | (I) | 967 | 981 | 954 | 941 | 998 | |||||||
Total average tangible shareholders' equity, excluding unrealized losses on AFS securities (2) | (J) | 1,210 | 1,198 | 1,190 | 1,188 | 1,164 | |||||||
Total accumulated other comprehensive (loss) net of tax, end of period | (218) | (186) | (159) | (181) | (188) | ||||||||
Total tangible shareholders' equity, end of period (2) | (K) | 930 | 951 | 972 | 930 | 917 | |||||||
Total tangible assets, end of period (2) | (L) | 12,119 | 12,068 | 12,297 | 11,638 | 11,291 | |||||||
Total common shares outstanding, end of period (thousands) | (M) | 43,822 | 44,033 | 44,411 | 44,361 | 45,040 | |||||||
Average diluted shares outstanding (thousands) | (N) | 43,347 | 43,532 | 44,036 | 44,484 | 45,034 | |||||||
Earnings per common share, diluted (2) | $ 0.45 | $ 0.55 | $ 0.63 | $ 0.69 | $ 0.42 | ||||||||
Operating earnings per common share, diluted (2) | (E/N) | 0.50 | 0.55 | 0.63 | 0.64 | 0.62 | |||||||
Tangible book value per common share, end of period (2) | (K/M) | 21.23 | 21.60 | 21.89 | 20.95 | 20.36 | |||||||
Total tangible shareholders' equity/total tangible assets (2) | (K/L) | 7.68 | 7.88 | 7.91 | 7.99 | 8.12 | |||||||
Performance ratios (3) | |||||||||||||
Return on equity, including unrealized losses on AFS securities | 7.91 | % | 9.51 | % | 11.31 | % | 12.63 | % | 7.31 | % | |||
Return on equity, excluding unrealized losses on AFS securities | 6.35 | 7.82 | 9.11 | 10.06 | 6.30 | ||||||||
Operating return on equity, including unrealized losses on AFS securities (2) | (E/G) | 8.71 | 9.51 | 11.30 | 11.70 | 10.92 | |||||||
Operating return on equity, excluding unrealized losses on AFS securities | (E/H) | 6.99 | 7.82 | 9.10 | 9.32 | 9.40 | |||||||
Return on tangible common equity, including unrealized losses on AFS securities (2)(4) | 8.45 | 10.09 | 11.96 | 13.36 | 7.88 | ||||||||
Return on tangible common equity, excluding unrealized losses on AFS securities (2)(4) | 6.76 | 8.26 | 9.59 | 10.59 | 6.76 | ||||||||
Operating return on tangible common equity, including unrealized losses on AFS securities (2)(4) | (E+Q)/(I) | 9.27 | 10.09 | 11.96 | 12.40 | 11.57 | |||||||
Operating return on tangible common equity, excluding unrealized losses on AFS securities (2)(4) | (E+Q)/(J) | 7.41 | 8.27 | 9.59 | 9.83 | 9.92 | |||||||
Return on assets | 0.66 | 0.79 | 0.96 | 1.10 | 0.67 | ||||||||
Operating return on assets (2) | (E/F) | 0.73 | 0.79 | 0.95 | 1.02 | 1.00 | |||||||
Efficiency ratio (2) | (D-Q)/(B+O+R) | 65.05 | 63.57 | 59.51 | 58.25 | 62.01 | |||||||
Supplementary data (in thousands) | |||||||||||||
Tax benefit on tax-credit investments (5) | (O) | $ 1,979 | $ 2,735 | $ 2,897 | $ 3,068 | $ 620 | |||||||
Non-interest income tax-credit investments amortization (6) | (P) | (1,463) | (2,210) | (2,285) | (2,355) | (445) | |||||||
Net income on tax-credit investments | (O+P) | 516 | 525 | 612 | 713 | 175 | |||||||
Intangible amortization | (Q) | $ 1,205 | $ 1,205 | $ 1,205 | $ 1,277 | $ 1,285 | |||||||
Fully taxable equivalent income adjustment | (R) | 1,980 | 1,962 | 1,908 | 1,845 | 1,715 | |||||||
(1) Starting March 31, 2023, fair value adjustments on securities are included in operating income. | |||||||||||||||||||||
(2) Non-GAAP financial measure. | |||||||||||||||||||||
(3) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding. | |||||||||||||||||||||
(4) Amortization of intangible assets is adjusted assuming a | |||||||||||||||||||||
(5) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. | |||||||||||||||||||||
(6) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. | |||||||||||||||||||||
BERKSHIRE HILLS BANCORP, INC. | ||||||
At or for the Nine Months Ended | ||||||
Sept. 30, | Sept. 30, | |||||
(in thousands) | 2023 | 2022 | ||||
Total non-interest income | $ 51,165 | $ 53,283 | ||||
Adj: Fair value adjustments on securities (1) | - | 2,194 | ||||
Total operating non-interest income (2) | $ 51,165 | $ 55,477 | ||||
Total revenue | (A) | $ 331,791 | $ 295,788 | |||
Adj: Fair value adjustments on securities (1) | - | 2,194 | ||||
Total operating revenue (2) | (B) | $ 331,791 | $ 297,982 | |||
Total non-interest expense | (C) | $ 222,516 | $ 218,702 | |||
Less: Merger, restructuring and other non-operating expenses | (2,592) | (11,526) | ||||
Operating non-interest expense (2) | (D) | $ 219,924 | $ 207,176 | |||
Pre-tax, pre-provision net revenue (PPNR) | (A-C) | $ 109,275 | $ 77,086 | |||
Operating pre-tax, pre-provision net revenue (PPNR) (2) | (B-D) | 111,867 | 90,806 | |||
Net income | $ 71,043 | $ 62,028 | ||||
Adj: Fair value adjustments on securities (1) | - | 2,194 | ||||
Adj: Restructuring expense and other non-operating expenses | 2,592 | 11,526 | ||||
Adj: Income taxes (expense)/benefit | (633) | (3,469) | ||||
Total operating income (2) | (E) | $ 73,002 | $ 72,279 | |||
(in millions, except per share data) | ||||||
Total average assets | (F) | $ 11,830 | $ 11,264 | |||
Total average shareholders' equity, including unrealized losses on AFS securities | (G) | 990 | 1,096 | |||
Total average shareholders' equity, excluding unrealized losses on AFS securities | (H) | 1,222 | 1,187 | |||
Total average tangible shareholders' equity, including unrealized losses on AFS securities (2) | (I) | 967 | 1,068 | |||
Total average tangible shareholders' equity, excluding unrealized losses on AFS securities (2) | (J) | 1,199 | 1,159 | |||
Total accumulated other comprehensive (loss) net of tax, end of period | (218) | (188) | ||||
Total tangible shareholders' equity, end of period (2) | (K) | 930 | 917 | |||
Total tangible assets, end of period (2) | (L) | 12,119 | 11,291 | |||
Total common shares outstanding, end of period (thousands) | (M) | 43,822 | 45,040 | |||
Average diluted shares outstanding (thousands) | (N) | 43,640 | 46,396 | |||
Earnings/(loss) per common share, diluted (2) | $ 1.63 | $ 1.34 | ||||
Operating earnings per common share, diluted (2) | (E/N) | 1.67 | 1.56 | |||
Tangible book value per common share, end of period (2) | (K/M) | 21.22 | 20.36 | |||
Total tangible shareholders' equity/total tangible assets (2) | (K/L) | 7.67 | 8.12 | |||
Performance ratios (3) | ||||||
Return on equity, including unrealized losses on AFS securities | 9.57 | % | 7.55 | % | ||
Return on equity, excluding unrealized losses on AFS securities | 7.75 | 6.97 | ||||
Operating return on equity, including unrealized losses on AFS securities (2) | (E/G) | 9.83 | 8.80 | |||
Operating return on equity, excluding unrealized losses on AFS securities (2) | (E/H) | 7.97 | 8.12 | |||
Return on tangible common equity, including unrealized losses on AFS securities (2)(4) | 10.16 | 8.10 | ||||
Return on tangible common equity, excluding unrealized losses on AFS securities (2)(4) | 8.19 | 7.46 | ||||
Operating return on tangible common equity, including unrealized losses on AFS securities (2)(4) | (E+Q)/(I) | 10.43 | 9.37 | |||
Operating return on tangible common equity, excluding unrealized losses on AFS securities (2)(4) | (E+Q)/(J) | 8.41 | 8.64 | |||
Return on assets | 0.80 | 0.73 | ||||
Operating return on assets (2) | (E/F) | 0.82 | 0.86 | |||
Efficiency ratio (2) | (D-Q)/(B+O+R) | 62.65 | 66.75 | |||
Net interest margin, FTE | 3.33 | 3.05 | ||||
Supplementary data (in thousands) | ||||||
Tax benefit on tax-credit investments (5) | (O) | $ 7,611 | $ 1,811 | |||
Non-interest income charge on tax-credit investments (6) | (P) | (5,959) | (1,153) | |||
Net income on tax-credit investments | (O+P) | 1,652 | 658 | |||
Intangible amortization | (Q) | $ 3,615 | $ 3,857 | |||
Fully taxable equivalent income adjustment | (R) | 5,850 | 4,799 | |||
(1) Starting March 31, 2023, fair value adjustments on securities are included in operating income. | |||||||
(2) Non-GAAP financial measure. | |||||||
(3) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding. | |||||||
(4) Amortization of intangible assets is adjusted assuming a | |||||||
(5) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. | |||||||
(6) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. | |||||||
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SOURCE Berkshire Hills Bancorp, Inc.
FAQ
What was the operating income for Q3 2023?
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