10% EPS Growth Year-over-Year
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- Period-end loan growth of 2%; total deposits unchanged
- Net loan charge-offs decreased $1.1 million; credit loss allowance increased $2.2 million commensurate with loan growth
- TCE ratio of 7.9 percent and CET1 ratio of 12.1 percent
- Repurchased $12 million of stock in 2Q23
BOSTON, July 20, 2023 /PRNewswire/ — Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported results for the second quarter of 2023. These results along with comparison periods are summarized below:
|
($ in millions, except per share data) |
June 30, 2023 |
Mar. 31, 2023 |
June 30, 2022 |
|||
|
Net income |
$ |
23.9 |
$ |
27.6 |
$ |
$23.1 |
|
Per share |
0.55 |
0.63 |
0.50 |
|||
|
Operating earnings1 |
23.9 |
27.6 |
23.6 |
|||
|
Per share |
0.55 |
0.63 |
0.51 |
|||
|
Net interest income, non FTE |
$ |
92.8 |
$ |
97.5 |
$ |
81.4 |
|
Net interest income, FTE |
94.7 |
99.4 |
82.9 |
|||
|
Net interest margin, FTE |
3.24 % |
3.58 % |
3.11 % |
|||
|
Non-interest income |
17.1 |
16.6 |
16.4 |
|||
|
Operating non-interest income1 |
17.1 |
16.6 |
17.3 |
|||
|
Non-interest expense |
$ |
74.0 |
$ |
72.0 |
$ |
68.5 |
|
Operating non-interest expense1 |
74.0 |
72.0 |
68.4 |
|||
|
Efficiency ratio1 |
63.6 % |
59.5 % |
66.6 % |
|||
|
Average balances |
||||||
|
Loans |
$ |
8,791 |
$ |
8,515 |
$ |
7,492 |
|
Deposits |
9,568 |
9,676 |
9,755 |
|||
|
Period-end balances |
||||||
|
Loans |
8,882 |
8,682 |
7,803 |
|||
|
Deposits |
10,068 |
10,068 |
10,115 |
|||
|
1. See non-GAAP financial measures and reconciliation to GAAP measures on page 12. |
||||||
Berkshire CEO Nitin Mhatre stated, “I’m pleased with our progress, as we continue to grow the company strategically while posting higher earnings per share year-over-year. In this dynamic banking environment, Berkshire’s teams are serving clients and communities with focus and discipline. Reflecting the quality of our underwriting and business model, credit performance remains strong and deposits have been resilient. In the second quarter, we allocated our $100 million sustainability bond issuance to targeted social and environmental projects. We’re proud to be a leader promoting strong support to the communities in our footprint”
CFO David Rosato added, “Second quarter GAAP net income of $23.9 million increased 3% year-over-year, generating an 8.3 percent return on average tangible common equity. The cumulative impact of Federal Reserve Bank interest rate hikes has resulted in higher funding costs for Berkshire Bank and the industry, compressing net interest margins and operating profitability. Net income decreased 14 percent linked quarter, primarily reflecting lower net interest income. Net interest margin of 3.24 percent improved 13 basis points from a year ago, but declined 34 basis points linked-quarter. Further expansion of average loan yields was more than offset by higher deposit and borrowing costs. Period-end loan balances grew 2 percent while deposits were unchanged. The period-end loan to deposit ratio measured 88 percent and the ratio of tangible common equity to tangible assets stood at 7.9 percent. Common stock repurchases totaled $12 million for the quarter.”
|
_ __ As of and For the Three Months Ended______ |
|||||||
|
June 30, 2023 |
Mar. 31, 2023 |
June 30, 2022 |
|||||
|
Asset Quality |
|||||||
|
Net loan charge-offs to average loans |
0.26 % |
0.32 % |
0.02 % |
||||
|
Non-performing loans to total loans |
0.32 % |
0.31 % |
0.34 % |
||||
|
Returns |
|||||||
|
Return on average assets1 |
0.78 % |
0.94 % |
0.82 % |
||||
|
Return on average tangible common equity1 |
8.26 % |
9.59 % |
8.33 % |
||||
|
Capital Ratios2 |
|||||||
|
Tangible common equity/tangible assets1 |
7.9 % |
7.9 % |
8.5 % |
||||
|
Tier 1 leverage |
9.6 % |
9.9 % |
10.2 % |
||||
|
Common equity Tier 1 |
12.1 % |
12.1 % |
12.9 % |
||||
|
Tier 1 risk-based |
12.3 % |
12.4 % |
13.2 % |
||||
|
Total risk-based |
14.4 % |
14.4 % |
16.1 % |
||||
|
1. See non-GAAP measures and reconciliation to GAAP beginning on page 12. All performance ratios are annualized and are |
|||||||
Headquartered in Boston, Berkshire Hills Bancorp is the parent of Berkshire Bank. Providing a wide range of financial solutions through its consumer banking, commercial banking and wealth management divisions, the Bank has approximately $12.1 billion in assets and a community-based footprint of 100 financial centers in Massachusetts, New York, Vermont, Connecticut and Rhode Island. Access more information about Berkshire Hills Bancorp at ir.berkshirebank.com.
2Q 2023 Financial Highlights
Income Statement
- GAAP and operating earnings totaled $23.9 million, or $0.55 per share.
- Net interest income totaled $92.8 million in 2Q23 compared to $97.5 million in 1Q23.
- One additional calendar day in 2Q23 (1% increase in net interest income).
- Net interest margin decreased 34 basis points from 1Q23 to 3.24% reflecting:
- Higher cost of funds (increase of 58 basis points).
- Includes higher deposit costs (increase of 41 basis points).
- Includes $600 million increase in higher cost average borrowings.
- Higher yields on the loan portfolio (increase of 20 basis points).
- Provision for credit losses on loans totaled $8.0 million.
- Allowance for credit losses on loans increased $2.2 million.
- Net loan charge-offs totaled $5.8 million.
- Net annualized loan charge-off ratio of 0.26%.
- Non-interest income totaled $17.1 million in 2Q23 compared to $16.6 million in 1Q23.
- Deposit related fees included $215 thousand in higher commercial cash management fees.
- Loan related non-interest revenue included $754 thousand in higher interest rate swap income.
- Gain on SBA loan sales increased $416 thousand.
- Wealth management revenue seasonally decreased $156 thousand. At June 30, 2023, wealth assets under management were $1.4 billion.
- Non-interest expense totaled $74.0 million in 2Q23, compared to $72.0 million in 1Q23.
- Compensation and benefits expense increased $889 thousand.
- Occupancy and equipment expense decreased $409 thousand.
- Technology and communications expense increased $994 thousand.
- The efficiency ratio was 63.6% for 2Q23 compared to 59.5% for 1Q23.
- The effective income tax rate was 14.2% for 2Q23 and 15.6% for the first six months of 2023 compared to 18.7% for the full year of 2022.
Loans
- Commercial real estate loans totaled $4.3 billion at June 30, 2023, an $84 million increase from March 31, 2023.
- Average commercial real estate loans totaled $4.3 billion in 2Q23, a $117 million increase from 1Q23.
- Commercial and industrial loans totaled $1.5 billion at June 30, 2023, an $88 million decrease from March 31, 2023.
- Average commercial and industrial loans totaled $1.5 billion in 2Q23, a $31 million decrease from 1Q23.
- Residential mortgage loans totaled $2.6 billion at June 30, 2023, a $215 million increase from March 31, 2023.
- Average residential mortgage loans totaled $2.5 billion in 2Q23, a $205 million increase from 1Q23.
- Consumer loans totaled $517 million at June 30, 2023, a $10 million decrease from March 31, 2023.
- Average consumer loans totaled $524 million in 2Q23, a $15 million decrease from 1Q23.
- Total non-performing loans to total loans was 0.32% at June 30, 2023 compared to 0.31% at March 31, 2023.
- The allowance for credit losses to total loans was 1.13% at June 30, 2023, unchanged from March 31, 2023.
Deposits
- Non-interest bearing deposits totaled $2.6 billion at June 30, 2023, a $56 million decrease from March 31, 2023.
- Average non-interest bearing deposits totaled $2.6 billion in 2Q23, a $112 million decrease from 1Q23.
- Time deposits totaled $2.4 billion at June 30, 2023, $323 million increase from March 31, 2023.
- Average time deposits totaled $2.3 billion in 2Q23, a $479 million increase from 1Q23.
2Q 2023 ESG & CORPORATE RESPONSIBILITY HIGHLIGHTS
Berkshire is a performance and purpose-driven, values-guided, community-centered bank. Berkshire’s ESG activities are central to its strategy. Key highlights in the quarter include:
- The Company announced the allocation of its inaugural $100 million sustainability bond which helped create 330 units of affordable and workforce housing along with more than 200,000 square feet of green building development. Further details can be found in Berkshire’s Sustainability Bond Report which highlights how proceeds were allocated to support affordable housing, workforce housing, green building and financial access and inclusion projects in communities across New England and New York.
- Berkshire maintained its top quartile ESG rating performance and was named the recipient of the LGBT Corporate Ally Award from the Boston Business Journal.
Forward Looking Statements: This document contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “remain,” “target” and similar expressions. There are many factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a discussion of such factors, please see Berkshire’s most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission and available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this document. Berkshire does not undertake any obligation to update forward-looking statements.
|
INVESTOR CONTACT Kevin Conn Investor Relations 617.641.9206 |
MEDIA CONTACT Gary Levante Corporate Communications 413.447.1737 |
|
BERKSHIRE HILLS BANCORP, INC. |
|||||||||||||||
|
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
|||||||||||
|
2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||
|
NOMINAL AND PER SHARE DATA |
|||||||||||||||
|
Net earnings per common share, diluted |
nbsp; 0.55 |
nbsp; 0.63 |
nbsp; 0.69 |
nbsp; 0.42 |
nbsp; 0.50 |
||||||||||
|
Operating earnings per common share, diluted (2)(3) |
0.55 |
0.63 |
0.64 |
0.62 |
0.51 |
||||||||||
|
Net income, (thousands) |
23,861 |
27,637 |
30,505 |
18,717 |
23,115 |
||||||||||
|
Operating net income, (thousands) (2)(3) |
23,878 |
27,608 |
28,254 |
27,928 |
23,562 |
||||||||||
|
Net interest income, (thousands) non FTE |
92,759 |
97,533 |
102,092 |
92,084 |
81,358 |
||||||||||
|
Net interest income, FTE (5) |
94,721 |
99,441 |
103,937 |
93,799 |
82,918 |
||||||||||
|
Total common shares outstanding, end of period (thousands) |
44,033 |
44,411 |
44,361 |
45,040 |
45,788 |
||||||||||
|
Average diluted shares, (thousands) |
43,532 |
44,036 |
44,484 |
45,034 |
46,102 |
||||||||||
|
Total book value per common share, end of period |
22.11 |
22.42 |
21.51 |
20.93 |
22.15 |
||||||||||
|
Tangible book value per common share, end of period (2)(3) |
21.60 |
21.89 |
20.95 |
20.36 |
21.56 |
||||||||||
|
Dividends per common share |
0.18 |
0.18 |
0.18 |
0.12 |
0.12 |
||||||||||
|
Dividend payout ratio |
33.47 |
% |
28.98 |
% |
26.59 |
% |
29.35 |
% |
25.24 |
% |
|||||
|
PERFORMANCE RATIOS (4) |
|||||||||||||||
|
Return on equity |
7.82 |
% |
9.11 |
% |
10.06 |
% |
6.30 |
% |
7.82 |
% |
|||||
|
Operating return on equity (2)(3) |
7.82 |
9.10 |
9.32 |
9.40 |
7.97 |
||||||||||
|
Return on tangible common equity (2)(3) |
8.26 |
9.59 |
10.59 |
6.76 |
8.33 |
||||||||||
|
Operating return on tangible common equity (2)(3) |
8.27 |
9.59 |
9.83 |
9.92 |
8.48 |
||||||||||
|
Return on assets |
0.78 |
0.94 |
1.08 |
0.66 |
0.82 |
||||||||||
|
Operating return on assets (2)(3) |
0.78 |
0.94 |
1.00 |
0.99 |
0.84 |
||||||||||
|
Net interest margin, FTE (5) |
3.24 |
3.58 |
3.84 |
3.48 |
3.11 |
||||||||||
|
Efficiency ratio (3) |
63.57 |
59.51 |
58.25 |
62.01 |
66.60 |
||||||||||
|
FINANCIAL DATA (in millions, end of period) |
|||||||||||||||
|
Total assets |
nbsp; 12,090 |
nbsp; 12,320 |
nbsp; 11,663 |
nbsp; 11,317 |
nbsp; 11,579 |
||||||||||
|
Total earning assets |
11,370 |
11,615 |
10,913 |
10,604 |
10,849 |
||||||||||
|
Total loans |
8,882 |
8,682 |
8,335 |
7,943 |
7,803 |
||||||||||
|
Total deposits |
10,068 |
10,068 |
10,327 |
9,988 |
10,115 |
||||||||||
|
Loans/deposits (%) |
88 |
% |
86 |
% |
81 |
% |
80 |
% |
77 |
% |
|||||
|
Total accumulated other comprehensive (loss) net of tax, end of period |
nbsp; (186) |
nbsp; (159) |
nbsp; (181) |
nbsp; (188) |
nbsp; (123) |
||||||||||
|
Total shareholders’ equity |
973 |
995 |
954 |
943 |
1,014 |
||||||||||
|
ASSET QUALITY |
|||||||||||||||
|
Allowance for credit losses, (millions) |
nbsp; 100 |
nbsp; 98 |
nbsp; 96 |
nbsp; 96 |
nbsp; 99 |
||||||||||
|
Net charge-offs, (millions) |
(6) |
(7) |
(12) |
(6) |
(0) |
||||||||||
|
Net charge-offs (QTD annualized)/average loans |
0.26 |
% |
0.32 |
% |
0.58 |
% |
0.30 |
% |
0.02 |
% |
|||||
|
Provision (benefit)/expense, (millions) |
nbsp; 8 |
nbsp; 9 |
nbsp; 12 |
nbsp; 3 |
nbsp; – |
||||||||||
|
Non-performing assets, (millions) |
31 |
29 |
33 |
40 |
29 |
||||||||||
|
Non-performing loans/total loans |
0.32 |
% |
0.31 |
% |
0.37 |
% |
0.48 |
% |
0.34 |
% |
|||||
|
Allowance for credit losses/non-performing loans |
353 |
363 |
309 |
254 |
368 |
||||||||||
|
Allowance for credit losses/total loans |
1.13 |
1.13 |
1.15 |
1.21 |
1.27 |
||||||||||
|
CAPITAL RATIOS |
|||||||||||||||
|
Risk weighted assets, (millions)(6) |
nbsp; 9,518 |
nbsp; 9,454 |
nbsp; 9,151 |
nbsp; 8,823 |
nbsp; 8,718 |
||||||||||
|
Common equity Tier 1 capital to risk weighted assets (6) |
12.1 |
% |
12.1 |
% |
12.4 |
% |
12.7 |
% |
13.0 |
% |
|||||
|
Tier 1 capital leverage ratio (6) |
9.6 |
9.9 |
10.2 |
10.1 |
10.2 |
||||||||||
|
Tangible common shareholders’ equity/tangible assets (3) |
7.9 |
7.9 |
8.0 |
8.1 |
8.5 |
||||||||||
|
(1) |
All financial tables presented are unaudited. |
||||||||||||||
|
(2) |
Reconciliations of non-GAAP financial measures, including all references to operating and tangible amounts, appear on pages 12 and 13. |
||||||||||||||
|
(3) |
Non-GAAP financial measure. Operating measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges primarily related to acquisitions and restructuring activities. See pages 12 and 13 for reconciliations of non-GAAP financial measures. |
||||||||||||||
|
(4) |
All performance ratios are annualized and are based on average balance sheet amounts, where applicable. |
||||||||||||||
|
(5) |
Fully taxable equivalent considers the impact of tax advantaged investment securities and loans. |
||||||||||||||
|
(6) |
Presented as projected for June 30, 2023 and actual for the remaining periods. |
||||||||||||||
|
BERKSHIRE HILLS BANCORP, INC. |
||||
|
June 30, |
March 31, |
December 31, |
June 30, |
|
|
(in thousands) |
2023 |
2023 |
2022 |
2022 |
|
Assets |
||||
|
Cash and due from banks |
nbsp; 120,285 |
nbsp; 121,589 |
nbsp; 145,342 |
nbsp; 156,470 |
|
Short-term investments |
520,315 |
884,973 |
540,013 |
714,547 |
|
Total cash and cash equivalents |
640,600 |
1,006,562 |
685,355 |
871,017 |
|
Trading securities, at fair value |
6,405 |
6,584 |
6,708 |
7,040 |
|
Equity securities, at fair value |
12,868 |
13,072 |
12,856 |
14,154 |
|
Securities available for sale, at fair value |
1,340,331 |
1,407,271 |
1,423,200 |
1,697,019 |
|
Securities held to maturity, at amortized cost |
563,765 |
574,606 |
583,453 |
602,611 |
|
Federal Home Loan Bank stock |
34,714 |
44,245 |
7,219 |
9,365 |
|
Total securities |
1,958,083 |
2,045,778 |
2,033,436 |
2,330,189 |
|
Less: Allowance for credit losses on investment securities |
(71) |
(71) |
(91) |
(94) |
|
Net securities |
1,958,012 |
2,045,707 |
2,033,345 |
2,330,095 |
|
Loans held for sale |
8,708 |
1,906 |
4,311 |
1,062 |
|
Commercial real estate loans |
4,315,202 |
4,231,510 |
4,095,079 |
3,919,678 |
|
Commercial and industrial loans |
1,464,922 |
1,553,340 |
1,473,316 |
1,471,446 |
|
Residential mortgages |
2,584,959 |
2,369,614 |
2,216,410 |
1,819,341 |
|
Consumer loans |
517,319 |
527,503 |
550,504 |
592,986 |
|
Total loans |
8,882,402 |
8,681,967 |
8,335,309 |
7,803,451 |
|
Less: Allowance for credit losses on loans |
(100,219) |
(97,991) |
(96,270) |
(99,021) |
|
Net loans |
8,782,183 |
8,583,976 |
8,239,039 |
7,704,430 |
|
Premises and equipment, net |
76,903 |
78,710 |
85,217 |
89,657 |
|
Other intangible assets |
22,074 |
23,279 |
24,483 |
27,046 |
|
Other assets |
593,621 |
571,616 |
587,854 |
550,275 |
|
Assets held for sale |
8,220 |
8,220 |
3,260 |
5,386 |
|
Total assets |
nbsp; 12,090,321 |
nbsp; 12,319,976 |
nbsp; 11,662,864 |
nbsp; 11,578,968 |
|
Liabilities and shareholders’ equity |
||||
|
Non-interest bearing deposits |
nbsp; 2,594,528 |
nbsp; 2,650,937 |
nbsp; 2,852,127 |
nbsp; 2,921,347 |
|
NOW and other deposits |
944,775 |
959,417 |
1,054,596 |
2,247,544 |
|
Money market deposits |
3,005,081 |
3,274,630 |
3,723,570 |
2,327,004 |
|
Savings deposits |
1,088,405 |
1,069,915 |
1,063,269 |
1,143,352 |
|
Time deposits |
2,435,618 |
2,112,646 |
1,633,707 |
1,475,417 |
|
Total deposits |
10,068,407 |
10,067,545 |
10,327,269 |
10,114,664 |
|
Federal Home Loan Bank advances |
674,345 |
904,395 |
4,445 |
58,542 |
|
Subordinated borrowings |
121,238 |
121,176 |
121,064 |
195,659 |
|
Total borrowings |
795,583 |
1,025,571 |
125,509 |
254,201 |
|
Other liabilities |
252,950 |
231,380 |
256,024 |
196,053 |
|
Total liabilities |
11,116,940 |
11,324,496 |
10,708,802 |
10,564,918 |
|
Common shareholders’ equity |
973,381 |
995,480 |
954,062 |
1,014,050 |
|
Total shareholders’ equity |
973,381 |
995,480 |
954,062 |
1,014,050 |
|
Total liabilities and shareholders’ equity |
nbsp; 12,090,321 |
nbsp; 12,319,976 |
nbsp; 11,662,864 |
nbsp; 11,578,968 |
|
BERKSHIRE HILLS BANCORP, INC. |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
June 30, |
||||||
|
(in thousands, except per share data) |
2023 |
2022 |
2023 |
2022 |
|||
|
Interest income |
nbsp; 145,425 |
nbsp; 87,379 |
nbsp; 277,741 |
nbsp; 162,202 |
|||
|
Interest expense |
52,666 |
6,021 |
87,449 |
11,781 |
|||
|
Net interest income, non FTE |
92,759 |
81,358 |
190,292 |
150,421 |
|||
|
Non-interest income |
|||||||
|
Deposit related fees |
8,571 |
8,005 |
16,882 |
15,356 |
|||
|
Loan fees and other |
3,189 |
1,113 |
5,658 |
6,052 |
|||
|
Gain on SBA loan sales |
2,910 |
3,619 |
5,404 |
6,964 |
|||
|
Wealth management fees |
2,583 |
2,775 |
5,322 |
5,400 |
|||
|
Other |
(137) |
1,812 |
222 |
4,978 |
|||
|
Total non-interest income excluding (losses)/gains |
17,116 |
17,324 |
33,488 |
38,750 |
|||
|
Fair value adjustments on securities |
(22) |
(973) |
212 |
(1,718) |
|||
|
Total non-interest income |
17,094 |
16,351 |
33,700 |
37,032 |
|||
|
Total net revenue |
109,853 |
97,709 |
223,992 |
187,453 |
|||
|
Provision expense/(benefit) for credit losses |
8,000 |
– |
16,999 |
(4,000) |
|||
|
Non-interest expense |
|||||||
|
Compensation and benefits |
39,960 |
37,830 |
79,031 |
75,351 |
|||
|
Occupancy and equipment |
8,970 |
9,438 |
18,349 |
19,505 |
|||
|
Technology and communications |
10,465 |
8,611 |
19,936 |
17,138 |
|||
|
Professional services |
2,526 |
2,913 |
5,803 |
5,605 |
|||
|
Other expenses |
12,106 |
9,648 |
22,899 |
19,373 |
|||
|
Merger, restructuring and other non-operating expenses |
21 |
35 |
(15) |
53 |
|||
|
Total non-interest expense |
74,048 |
68,475 |
146,003 |
137,025 |
|||
|
Total non-interest expense excluding merger, restructuring and other |
74,027 |
68,440 |
146,018 |
136,972 |
|||
|
Income before income taxes |
nbsp; 27,805 |
nbsp; 29,234 |
nbsp; 60,990 |
nbsp; 54,428 |
|||
|
Income tax expense |
3,944 |
6,119 |
9,492 |
11,117 |
|||
|
Net income |
nbsp; 23,861 |
nbsp; 23,115 |
nbsp; 51,498 |
nbsp; 43,311 |
|||
|
Basic earnings per common share |
nbsp; 0.55 |
nbsp; 0.50 |
nbsp; 1.18 |
nbsp; 0.93 |
|||
|
Diluted earnings per common share |
nbsp; 0.55 |
nbsp; 0.50 |
nbsp; 1.18 |
nbsp; 0.92 |
|||
|
Weighted average shares outstanding: |
|||||||
|
Basic |
43,443 |
45,818 |
43,564 |
46,733 |
|||
|
Diluted |
43,532 |
46,102 |
43,780 |
47,074 |
|||
|
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
|
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||
|
(in thousands, except per share data) |
2023 |
2023 |
2022 |
2022 |
2022 |
|||||
|
Interest income |
nbsp; 145,425 |
nbsp; 132,316 |
nbsp; 121,384 |
nbsp; 103,671 |
nbsp; 87,379 |
|||||
|
Interest expense |
52,666 |
34,783 |
19,292 |
11,587 |
6,021 |
|||||
|
Net interest income, non FTE |
92,759 |
97,533 |
102,092 |
92,084 |
81,358 |
|||||
|
Non-interest income |
||||||||||
|
Deposit related fees |
8,571 |
8,311 |
8,293 |
8,377 |
8,005 |
|||||
|
Loan fees and other |
3,189 |
2,469 |
2,123 |
1,292 |
1,113 |
|||||
|
Gain on SBA loan sales |
2,910 |
2,494 |
2,979 |
2,551 |
3,619 |
|||||
|
Wealth management fees |
2,583 |
2,739 |
2,255 |
2,353 |
2,775 |
|||||
|
Other |
(137) |
359 |
(159) |
2,154 |
1,812 |
|||||
|
Total non-interest income excluding (losses)/gains |
17,116 |
16,372 |
15,491 |
16,727 |
17,324 |
|||||
|
Fair value adjustments on securities |
(22) |
234 |
163 |
(476) |
(973) |
|||||
|
Total non-interest income |
17,094 |
16,606 |
15,654 |
16,251 |
16,351 |
|||||
|
Total net revenue |
109,853 |
114,139 |
117,746 |
108,335 |
97,709 |
|||||
|
Provision expense/(benefit) for credit losses |
8,000 |
8,999 |
12,000 |
3,000 |
– |
|||||
|
Non-interest expense |
||||||||||
|
Compensation and benefits |
39,960 |
39,071 |
37,968 |
39,422 |
37,830 |
|||||
|
Occupancy and equipment |
8,970 |
9,379 |
9,431 |
8,702 |
9,438 |
|||||
|
Technology and communications |
10,465 |
9,471 |
9,729 |
8,719 |
8,611 |
|||||
|
Professional services |
2,526 |
3,277 |
3,153 |
3,285 |
2,913 |
|||||
|
Other expenses |
12,106 |
10,793 |
12,350 |
10,076 |
9,648 |
|||||
|
Merger, restructuring and other non-operating expenses |
21 |
(36) |
(2,617) |
11,473 |
35 |
|||||
|
Total non-interest expense |
74,048 |
71,955 |
70,014 |
81,677 |
68,475 |
|||||
|
Total non-interest expense excluding merger, restructuring and other |
74,027 |
71,991 |
72,631 |
70,204 |
68,440 |
|||||
|
Income before income taxes |
nbsp; 27,805 |
nbsp; 33,185 |
nbsp; 35,732 |
nbsp; 23,658 |
nbsp; 29,234 |
|||||
|
Income tax expense |
3,944 |
5,548 |
5,227 |
4,941 |
6,119 |
|||||
|
Net income |
nbsp; 23,861 |
nbsp; 27,637 |
nbsp; 30,505 |
nbsp; 18,717 |
nbsp; 23,115 |
|||||
|
Diluted earnings per common share |
nbsp; 0.55 |
nbsp; 0.63 |
nbsp; 0.69 |
nbsp; 0.42 |
nbsp; 0.50 |
|||||
|
Weighted average shares outstanding: |
||||||||||
|
Basic |
43,443 |
43,693 |
44,105 |
44,700 |
45,818 |
|||||
|
Diluted |
43,532 |
44,036 |
44,484 |
45,034 |
46,102 |
|||||
|
BERKSHIRE HILLS BANCORP, INC. |
||||||||||||||||
|
Quarters Ended |
||||||||||||||||
|
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
||||||||||||||
|
(in $ millions) |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
|||||||
|
Assets |
||||||||||||||||
|
Commercial real estate |
4,283 |
67 |
6.16 |
% |
4,166 |
61 |
5.88 |
% |
3,831 |
37 |
3.79 |
% |
||||
|
Commercial and industrial loans |
1,496 |
27 |
7.27 |
1,527 |
26 |
6.92 |
1,447 |
16 |
4.46 |
|||||||
|
Residential mortgages |
2,488 |
24 |
3.87 |
2,283 |
21 |
3.70 |
1,652 |
15 |
3.57 |
|||||||
|
Consumer loans |
524 |
9 |
7.28 |
539 |
10 |
7.24 |
562 |
8 |
5.41 |
|||||||
|
Total loans |
8,791 |
127 |
5.77 |
8,515 |
118 |
5.57 |
7,492 |
75 |
3.99 |
|||||||
|
Securities (2) |
2,236 |
13 |
2.27 |
2,261 |
13 |
2.23 |
2,621 |
13 |
1.97 |
|||||||
|
Short-term investments and loans HFS |
560 |
7 |
4.94 |
313 |
3 |
4.24 |
476 |
1 |
0.57 |
|||||||
|
Total earning assets |
11,587 |
147 |
5.05 |
11,089 |
134 |
4.85 |
10,589 |
89 |
3.34 |
|||||||
|
Goodwill and other intangible assets |
22 |
24 |
27 |
|||||||||||||
|
Other assets |
665 |
692 |
644 |
|||||||||||||
|
Total assets |
12,274 |
11,805 |
11,260 |
|||||||||||||
|
Liabilities and shareholders’ equity |
||||||||||||||||
|
Non-interest-bearing demand deposits |
2,594 |
– |
– |
% |
2,706 |
– |
– |
% |
2,903 |
– |
– |
% |
||||
|
NOW and other |
1,055 |
4 |
1.35 |
1,456 |
6 |
1.64 |
1,454 |
– |
0.12 |
|||||||
|
Money market |
2,555 |
14 |
2.13 |
2,659 |
10 |
1.59 |
2,811 |
2 |
0.19 |
|||||||
|
Savings |
1,077 |
– |
0.50 |
1,047 |
– |
0.10 |
1,127 |
– |
0.03 |
|||||||
|
Time |
2,287 |
18 |
3.07 |
1,808 |
10 |
2.13 |
1,460 |
2 |
0.64 |
|||||||
|
Total cost deposits |
9,568 |
36 |
1.51 |
9,676 |
26 |
1.09 |
9,755 |
4 |
0.17 |
|||||||
|
Borrowings (3) |
1,288 |
17 |
5.14 |
688 |
9 |
5.06 |
160 |
2 |
4.61 |
|||||||
|
Total funding liabilities |
10,856 |
53 |
1.94 |
10,364 |
35 |
1.36 |
9,915 |
6 |
0.24 |
|||||||
|
Other liabilities |
197 |
227 |
163 |
|||||||||||||
|
Total liabilities |
11,053 |
10,591 |
10,078 |
|||||||||||||
|
Common shareholders’ equity |
1,221 |
1,214 |
1,182 |
|||||||||||||
|
Total shareholders’ equity |
1,221 |
1,214 |
1,182 |
|||||||||||||
|
Total liabilities and shareholders’ equity |
12,274 |
11,805 |
11,260 |
|||||||||||||
|
Net interest margin, FTE |
3.24 |
3.58 |
3.11 |
|||||||||||||
|
Total average non-maturity deposits |
7,281 |
7,868 |
8,295 |
|||||||||||||
|
Supplementary data |
||||||||||||||||
|
Net Interest Income, non FTE |
92.759 |
97.533 |
81.358 |
|||||||||||||
|
FTE income adjustment |
1.962 |
1.908 |
1.560 |
|||||||||||||
|
Net Interest Income, FTE |
94.721 |
99.441 |
82.918 |
|||||||||||||
|
(1) Interest income and expense presented on a fully taxable equivalent basis. |
||||||||||||||||
|
(2) Average balances for securities available-for-sale are based on amortized cost. |
||||||||||||||||
|
(3) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet. |
||||||||||||||||
|
BERKSHIRE HILLS BANCORP, INC. |
||||||||||
|
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||
|
(in thousands) |
2023 |
2023 |
2022 |
2022 |
2022 |
|||||
|
NON-PERFORMING ASSETS |
||||||||||
|
Commercial real estate |
nbsp; 1,509 |
nbsp; 2,546 |
nbsp; 2,434 |
nbsp; 2,976 |
nbsp; 8,277 |
|||||
|
Commercial and industrial loans |
15,597 |
12,155 |
17,023 |
21,008 |
4,891 |
|||||
|
Residential mortgages |
8,728 |
9,442 |
8,612 |
10,407 |
10,331 |
|||||
|
Consumer loans |
2,565 |
2,848 |
3,045 |
3,463 |
3,385 |
|||||
|
Total non-performing loans |
28,399 |
26,991 |
31,114 |
37,854 |
26,884 |
|||||
|
Repossessed assets |
2,549 |
2,462 |
2,209 |
2,175 |
2,004 |
|||||
|
Total non-performing assets |
nbsp; 30,948 |
nbsp; 29,453 |
nbsp; 33,323 |
nbsp; 40,029 |
nbsp; 28,888 |
|||||
|
Total non-performing loans/total loans |
0.32 % |
0.31 % |
0.37 % |
0.48 % |
0.34 % |
|||||
|
Total non-performing assets/total assets |
0.26 % |
0.24 % |
0.29 % |
0.35 % |
0.25 % |
|||||
|
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS |
||||||||||
|
Balance at beginning of period |
nbsp; 97,991 |
nbsp; 96,270 |
nbsp; 96,013 |
nbsp; 99,021 |
nbsp; 99,475 |
|||||
|
Adoption of ASU No. 2022-02 |
– |
(401) |
– |
– |
– |
|||||
|
Balance after adoption of ASU No. 2022-02 |
97,991 |
95,869 |
96,013 |
99,021 |
99,475 |
|||||
|
Charged-off loans |
(7,686) |
(7,936) |
(12,995) |
(7,424) |
(1,593) |
|||||
|
Recoveries on charged-off loans |
1,914 |
1,059 |
1,252 |
1,416 |
1,139 |
|||||
|
Net loans charged-off |
(5,772) |
(6,877) |
(11,743) |
(6,008) |
(454) |
|||||
|
Provision (benefit)/expense for loan credit losses |
8,000 |
8,999 |
12,000 |
3,000 |
– |
|||||
|
Balance at end of period |
nbsp; 100,219 |
nbsp; 97,991 |
nbsp; 96,270 |
nbsp; 96,013 |
nbsp; 99,021 |
|||||
|
Allowance for credit losses/total loans |
1.13 % |
1.13 % |
1.15 % |
1.21 % |
1.27 % |
|||||
|
Allowance for credit losses/non-performing loans |
353 % |
363 % |
309 % |
254 % |
368 % |
|||||
|
NET LOAN CHARGE-OFFS |
||||||||||
|
Commercial real estate |
nbsp; 664 |
nbsp; 122 |
nbsp; 187 |
nbsp; (854) |
nbsp; (76) |
|||||
|
Commercial and industrial loans |
(4,146) |
(5,695) |
(10,914) |
(4,931) |
(237) |
|||||
|
Residential mortgages |
(143) |
305 |
192 |
122 |
(30) |
|||||
|
Home equity |
126 |
16 |
(128) |
1 |
33 |
|||||
|
Auto and other consumer |
(2,273) |
(1,625) |
(1,080) |
(346) |
(144) |
|||||
|
Total, net |
nbsp; (5,772) |
nbsp; (6,877) |
nbsp; (11,743) |
nbsp; (6,008) |
nbsp; (454) |
|||||
|
Net charge-offs (QTD annualized)/average loans |
0.26 % |
0.32 % |
0.58 % |
0.30 % |
0.02 % |
|||||
|
Net charge-offs (YTD annualized)/average loans |
0.29 % |
0.32 % |
0.27 % |
0.16 % |
0.08 % |
|||||
|
DELINQUENT AND NON-PERFORMING LOANS |
Balance |
Percent |
Balance |
Percent |
Balance |
Percent |
Balance |
Percent |
Balance |
Percent |
|
30-89 Days delinquent |
nbsp; 15,147 |
0.17 % |
nbsp; 14,210 |
0.16 % |
nbsp; 12,162 |
0.15 % |
nbsp; 14,662 |
0.18 % |
nbsp; 36,184 |
0.46 % |
|
90+ Days delinquent and still accruing |
7,812 |
0.09 % |
6,937 |
0.08 % |
7,038 |
0.08 % |
6,285 |
0.08 % |
6,760 |
0.09 % |
|
Total accruing delinquent loans |
22,959 |
0.26 % |
21,147 |
0.24 % |
19,200 |
0.23 % |
20,947 |
0.26 % |
42,944 |
0.55 % |
|
Non-performing loans |
28,399 |
0.32 % |
26,991 |
0.31 % |
31,114 |
0.37 % |
37,854 |
0.48 % |
26,884 |
0.34 % |
|
Total delinquent and non-performing loans |
nbsp; 51,358 |
0.58 % |
nbsp; 48,138 |
0.55 % |
nbsp; 50,314 |
0.60 % |
nbsp; 58,801 |
0.74 % |
nbsp; 69,828 |
0.89 % |
|
BERKSHIRE HILLS BANCORP, INC. |
||||||||||||
|
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||||
|
(in thousands) |
2023 |
2023 |
2022 |
2022 |
2022 |
|||||||
|
Total non-interest income |
nbsp; 17,094 |
nbsp; 16,606 |
nbsp; 15,654 |
nbsp; 16,251 |
nbsp; 16,351 |
|||||||
|
Adj: Fair value adjustments on securities (1) |
– |
– |
(163) |
476 |
973 |
|||||||
|
Total operating non-interest income (2) |
nbsp; 17,094 |
nbsp; 16,606 |
nbsp; 15,491 |
nbsp; 16,727 |
nbsp; 17,324 |
|||||||
|
Total revenue |
(A) |
nbsp; 109,853 |
nbsp; 114,139 |
nbsp; 117,746 |
$108,335 |
nbsp; 97,709 |
||||||
|
Adj: Fair value adjustments on securities (1) |
– |
– |
(163) |
476 |
973 |
|||||||
|
Total operating revenue (2) |
(B) |
nbsp; 109,853 |
nbsp; 114,139 |
nbsp; 117,583 |
$108,811 |
nbsp; 98,682 |
||||||
|
Total non-interest expense |
(C) |
nbsp; 74,048 |
nbsp; 71,955 |
nbsp; 70,014 |
nbsp; 81,677 |
nbsp; 68,475 |
||||||
|
Adj: Merger, restructuring and other non-operating expenses |
(21) |
36 |
2,617 |
(11,473) |
(35) |
|||||||
|
Operating non-interest expense (2) |
(D) |
nbsp; 74,027 |
nbsp; 71,991 |
nbsp; 72,631 |
nbsp; 70,204 |
nbsp; 68,440 |
||||||
|
Pre-tax, pre-provision net revenue (PPNR) |
(A-C) |
nbsp; 35,805 |
nbsp; 42,184 |
nbsp; 47,732 |
nbsp; 26,658 |
nbsp; 29,234 |
||||||
|
Operating pre-tax, pre-provision net revenue (PPNR) (2) |
(B-D) |
35,826 |
42,148 |
44,952 |
38,607 |
30,242 |
||||||
|
Net income |
nbsp; 23,861 |
nbsp; 27,637 |
nbsp; 30,505 |
nbsp; 18,717 |
nbsp; 23,115 |
|||||||
|
Adj: Fair value adjustments on securities (1) |
– |
– |
(163) |
476 |
973 |
|||||||
|
Adj: Restructuring expense and other non-operating expenses |
21 |
(36) |
(2,617) |
11,473 |
35 |
|||||||
|
Adj: Income taxes (expense)/benefit |
(4) |
7 |
529 |
(2,738) |
(561) |
|||||||
|
Total operating income (2) |
(E) |
nbsp; 23,878 |
nbsp; 27,608 |
nbsp; 28,254 |
nbsp; 27,928 |
nbsp; 23,562 |
||||||
|
(in millions, except per share data) |
||||||||||||
|
Total average assets |
(F) |
nbsp; 12,274 |
nbsp; 11,805 |
nbsp; 11,321 |
nbsp; 11,315 |
nbsp; 11,260 |
||||||
|
Total average shareholders’ equity |
(G) |
1,221 |
1,214 |
1,213 |
1,189 |
1,182 |
||||||
|
Total average tangible shareholders’ equity (2) |
(H) |
1,198 |
1,190 |
1,188 |
1,164 |
1,155 |
||||||
|
Total accumulated other comprehensive (loss) net of tax, end of period |
(186) |
(159) |
(181) |
(188) |
(123) |
|||||||
|
Total tangible shareholders’ equity, end of period (2) |
(J) |
951 |
972 |
930 |
917 |
987 |
||||||
|
Total tangible assets, end of period (2) |
(L) |
12,068 |
12,297 |
11,638 |
11,291 |
11,552 |
||||||
|
Total common shares outstanding, end of period (thousands) |
(M) |
44,033 |
44,411 |
44,361 |
45,040 |
45,788 |
||||||
|
Average diluted shares outstanding (thousands) |
(N) |
43,532 |
44,036 |
44,484 |
45,034 |
46,102 |
||||||
|
GAAP earnings per common share, diluted (2) |
nbsp; 0.55 |
nbsp; 0.63 |
nbsp; 0.69 |
nbsp; 0.42 |
nbsp; 0.50 |
|||||||
|
Operating earnings per common share, diluted (2) |
(E/N) |
0.55 |
0.63 |
0.64 |
0.62 |
0.51 |
||||||
|
Tangible book value per common share, end of period (2) |
(J/M) |
21.60 |
21.89 |
20.95 |
20.36 |
21.56 |
||||||
|
Total tangible shareholders’ equity/total tangible assets (2) |
(J/L) |
7.88 |
7.91 |
7.99 |
8.12 |
8.54 |
||||||
|
Performance ratios (3) |
||||||||||||
|
GAAP return on equity |
7.82 |
% |
9.11 |
% |
10.06 |
% |
6.30 |
7.82 |
% |
|||
|
Operating return on equity (2) |
(E/G) |
7.82 |
9.10 |
9.32 |
9.40 |
7.97 |
||||||
|
Return on tangible common equity (2)(4) |
8.26 |
9.59 |
10.59 |
6.76 |
8.33 |
|||||||
|
Operating return on tangible common equity (2)(4) |
(E+Q)/(H) |
8.27 |
9.59 |
9.83 |
9.92 |
8.48 |
||||||
|
GAAP return on assets |
0.78 |
0.94 |
1.08 |
0.66 |
0.82 |
|||||||
|
Operating return on assets (2) |
(E/F) |
0.78 |
0.94 |
1.00 |
0.99 |
0.84 |
||||||
|
Efficiency ratio (2) |
(D-Q)/(B+O+R) |
63.57 |
59.51 |
58.25 |
62.01 |
66.60 |
||||||
|
Supplementary data (in thousands) |
||||||||||||
|
Tax benefit on tax-credit investments (5) |
(O) |
nbsp; 2,735 |
nbsp; 2,897 |
nbsp; 3,068 |
nbsp; 620 |
nbsp; 595 |
||||||
|
Non-interest income tax-credit investments amortization (6) |
(P) |
(2,210) |
(2,285) |
(2,355) |
(445) |
(351) |
||||||
|
Net income on tax-credit investments |
(O+P) |
525 |
612 |
713 |
175 |
244 |
||||||
|
Intangible amortization |
(Q) |
nbsp; 1,205 |
nbsp; 1,205 |
nbsp; 1,277 |
nbsp; 1,285 |
nbsp; 1,286 |
||||||
|
Fully taxable equivalent income adjustment |
(R) |
1,962 |
1,908 |
1,845 |
1,715 |
1,560 |
||||||
|
(1) Starting March 31, 2023, fair value adjustments on securities are included in operating income. |
||||||||||||
|
(2) Non-GAAP financial measure. |
||||||||||||
|
(3) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding. |
||||||||||||
|
(4) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. |
||||||||||||
|
(5) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. |
||||||||||||
|
(6) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. |
||||||||||||
|
BERKSHIRE HILLS BANCORP, INC. |
||||||
|
At or for the Six Months Ended |
||||||
|
June 30, |
June 30, |
|||||
|
(in thousands) |
2023 |
2022 |
||||
|
Total non-interest income |
nbsp; 33,700 |
nbsp; 37,032 |
||||
|
Adj: Fair value adjustments on securities (1) |
– |
1,718 |
||||
|
Total operating non-interest income (2) |
nbsp; 33,700 |
nbsp; 38,750 |
||||
|
Total revenue |
(A) |
nbsp; 223,992 |
nbsp; 187,453 |
|||
|
Adj: Fair value adjustments on securities (1) |
– |
1,718 |
||||
|
Total operating revenue (2) |
(B) |
nbsp; 223,992 |
nbsp; 189,171 |
|||
|
Total non-interest expense |
(C) |
nbsp; 146,003 |
nbsp; 137,025 |
|||
|
Less: Merger, restructuring and other non-operating expenses |
15 |
(53) |
||||
|
Operating non-interest expense (2) |
(D) |
nbsp; 146,018 |
nbsp; 136,972 |
|||
|
Pre-tax, pre-provision net revenue (PPNR) |
(A-C) |
nbsp; 77,989 |
nbsp; 50,428 |
|||
|
Operating pre-tax, pre-provision net revenue (PPNR) (2) |
(B-D) |
77,974 |
52,199 |
|||
|
Net income |
nbsp; 51,498 |
nbsp; 43,311 |
||||
|
Adj: Fair value adjustments on securities (1) |
– |
1,718 |
||||
|
Adj: Restructuring expense and other non-operating expenses |
(15) |
53 |
||||
|
Adj: Income taxes (expense)/benefit |
3 |
(731) |
||||
|
Total operating income (2) |
(E) |
nbsp; 51,486 |
nbsp; 44,351 |
|||
|
(in millions, except per share data) |
||||||
|
Total average assets |
(F) |
$ 12,040 |
nbsp; 11,376 |
|||
|
Total average shareholders’ equity |
(G) |
1,217 |
1,185 |
|||
|
Total average tangible shareholders’ equity (2) |
(H) |
1,194 |
1,157 |
|||
|
Total accumulated other comprehensive (loss) net of tax, end of period |
(186) |
(123) |
||||
|
Total tangible shareholders’ equity, end of period (2) |
(J) |
951 |
987 |
|||
|
Total tangible assets, end of period (2) |
(L) |
12,068 |
11,552 |
|||
|
Total common shares outstanding, end of period (thousands) |
(M) |
44,033 |
45,788 |
|||
|
Average diluted shares outstanding (thousands) |
(N) |
43,780 |
47,074 |
|||
|
GAAP earnings/(loss) per common share, diluted (2) |
nbsp; 1.18 |
nbsp; 0.92 |
||||
|
Operating earnings per common share, diluted (2) |
(E/N) |
1.18 |
0.94 |
|||
|
Tangible book value per common share, end of period (2) |
(J/M) |
21.60 |
21.56 |
|||
|
Total tangible shareholders’ equity/total tangible assets (2) |
(J/L) |
7.88 |
8.54 |
|||
|
Performance ratios (3) |
||||||
|
GAAP return on equity |
8.46 |
% |
7.31 |
% |
||
|
Operating return on equity (2) |
(E/G) |
8.46 |
7.49 |
|||
|
Return on tangible common equity (2)(4) |
8.92 |
7.81 |
||||
|
Operating return on tangible common equity (2)(4) |
(E+Q)/(H) |
8.92 |
7.99 |
|||
|
GAAP return on assets |
0.86 |
0.76 |
||||
|
Operating return on assets (2) |
(E/F) |
0.86 |
0.78 |
|||
|
Efficiency ratio (2) |
(D-Q)/(B+O+R) |
61.50 |
69.48 |
|||
|
Net interest margin, FTE |
3.40 |
2.86 |
||||
|
Supplementary data (in thousands) |
||||||
|
Tax benefit on tax-credit investments (5) |
(O) |
nbsp; 5,632 |
nbsp; 1,191 |
|||
|
Non-interest income charge on tax-credit investments (6) |
(P) |
(4,495) |
(708) |
|||
|
Net income on tax-credit investments |
(O+P) |
1,137 |
483 |
|||
|
Intangible amortization |
(Q) |
nbsp; 2,410 |
nbsp; 2,572 |
|||
|
Fully taxable equivalent income adjustment |
(R) |
3,869 |
3,084 |
|||
|
(1) Starting March 31, 2023, fair value adjustments on securities are included in operating income. |
||||||
|
(2) Non-GAAP financial measure. |
||||||
|
(3) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding. |
||||||
|
(4) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. |
||||||
|
(5) The tax benefit is the direct reduction to the income tax provision due to tax credit investments. |
||||||
|
(6) The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated. |
||||||
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SOURCE Berkshire Hills Bancorp, Inc.
