New: Introducing the Finviz Crypto Map

Learn More

Berkshire Hills Reports Strong Earnings Growth

By PR Newswire | July 24, 2025, 7:30 AM

Second Quarter 2025 GAAP EPS $0.66; Operating EPS $0.69

  • 15% increase in operating EPS linked quarter; 25% increase year-over-year
  • 3% increase in operating revenue linked quarter, 2% decrease in operating non-interest expense
  • 3.27% net interest margin, 3 bps increase linked quarter and 7 bps year-over-year
  • 56.7% efficiency ratio; improved from 59.5% linked quarter
  • 0.48% delinquent and non-performing loans to total loans

BOSTON, July 24, 2025 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported results for the second quarter of 2025. These results along with comparison periods are summarized below:

($ in millions, except per share data)



Three Months Ended







June 30,

2025



Mar. 31,

2025



June 30,

2024



















Net income

$

30.4

$

25.7

$

24.0



        Per share



0.66



0.56



0.57



Operating earnings1



31.6



27.6



23.2



         Per share



0.69



0.60



0.55



















Net interest income, non FTE

$

91.9

$

89.8

$

88.5



Net interest income, FTE



93.8



91.7



90.5



         Net interest margin, FTE



3.27 %



3.24 %



3.20 %



Non-interest income

$

21.8

$

20.7

$

20.1



Operating non-interest income1



21.8



20.7



20.1



















Non-interest expense



68.1



70.4



70.9



Operating non-interest expense1



66.7



67.9



71.3



Efficiency ratio1



56.7 %



59.5 %



63.4 %



















Average balances















Loans

$

9,484

$

9,389

$

9,157



Deposits



9,817



9,847



9,296



















Period-end balances















Loans



9,499



9,429



9,229



Deposits



9,979



9,880



9,621







1. See non-GAAP financial measures and reconciliation to GAAP measures beginning on page 12.



Berkshire CEO Nitin Mhatre stated, "Second quarter operating earnings grew 36% year-over-year due to revenue growth and lower expenses. Loans, deposits and the net interest margin increased over the linked quarter, boosting net interest income, and were accompanied by solid non-interest income growth. Quarterly operating revenue has increased sequentially over the last six quarters, growing 8% over this period, including 3% growth linked quarter. Quarterly operating income, operating EPS, and efficiency were the strongest since 2019. Second quarter 2025 operating return on tangible common equity advanced to 10.8%. TIME and Newsweek have once again honored Berkshire with national awards, the former for being one of the top-performing U.S. companies of our size and the latter for being one of the best workplaces in the financial services sector. Following months of preparation among our teams, we look forward to completing our transformative merger of equals with Brookline Bancorp and creating a powerful financial institution serving the Northeast."

"As I reflect on our progress since we began our transformation program in early 2021, I want to express my deepest gratitude to every member of the Berkshire team, our clients and our board of directors. Our bankers' dedication, resilience, and commitment to our clients have been the driving force behind our improved operating and financial performance. Together, we've navigated challenges, embraced change, and delivered results for our clients, shareholders and communities. I'm incredibly proud of what we've accomplished and excited to see what the combined company will achieve next," added Mhatre. 

Berkshire CFO Brett Brbovic stated, "Second quarter net interest income increased 2% linked quarter and the net interest margin increased 3 basis points to 3.27%, benefiting from loan growth and lower deposit cost. Operating non-interest income increased $1.1 million linked quarter. Operating non-interest expense decreased $1.3 million linked quarter and $4.7 million year-over-year. The provision for credit losses decreased $1.5 million linked quarter and the allowance for credit losses on loans was unchanged at 1.24%. Quarterly results were very solid across the board."



As of and For the Three Months Ended



June 30, 2025



Mar. 31, 2025



June 30, 2024

Asset Quality











Net loan charge-offs to average loans

0.14 %



0.15 %



0.07 %

Non-performing loans to total loans

0.27 %



0.25 %



0.23 %













Returns10











Return on average assets

1.03 %



0.88 %



0.82 %

Operating return on average assets

1.07 %



0.94 %



0.79 %

Return on tangible common equity

10.35 %



9.02 %



9.99 %

Operating return on tangible common equity

10.76 %



9.66 %



9.65 %













Capital1











Tangible common equity/tangible assets

10.1 %



9.9 %



8.2 %

Book value per share

$26.40



$25.81



$23.58

Tangible book value per share

$26.12



$25.50



$23.18







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.

















Berkshire Hills Bancorp, Inc. (NYSE: BHLB) is the parent company of Berkshire Bank, a relationship-driven, community-focused bank with $12.0 billion in assets and 83 financial centers in New England and New York. Berkshire is headquartered in Boston and offers commercial, retail, wealth, and private banking solutions. Berkshire has a pending agreement to merge with Brookline Bancorp, Inc., a multi-bank holding company with $11.6 billion in assets and branches in Massachusetts, Rhode Island, and New York.

2Q 2025 Financial Highlights (comparisons are to the linked quarter unless otherwise noted).

Income Statement. Second quarter GAAP income was $30 million, or $0.66 per share. Operating earnings totaled $32 million, or $0.69 per share. GAAP results included $1.5 million in primarily merger-related non-operating expenses. Operating earnings increased $4.0 million, or 14%, linked quarter and 36% year-over-year, with ongoing positive operating leverage from operating revenue growth and expense reduction. Reflecting the merger-related share issuance in December 2024, quarterly operating EPS was up 25% year-over-year. The efficiency ratio was 56.7% in the second quarter, improving to the best quarterly result since 2019. 

Quarterly net interest income increased linked quarter by $2.2 million to $92 million in 2Q25.

  • The net interest margin increased 3 basis points to 3.27%.
    • The earning asset yield increased 3 basis points to 5.38%.
      • The loan yield increased 2 basis points to 5.82%.
    • The cost of funds decreased 1 basis point to 2.29%
      • The cost of deposits decreased 3 basis points to 2.15%.
  • Provision for credit losses totaled $4.0 million, decreasing 1.5 million linked quarter.
    • Net loan charge-offs totaled $3.3 million, compared to $3.5 million linked quarter.
    • The annualized loan net charge-off ratio was 0.14% for the quarter and 0.15% year-to-date.
  • GAAP and operating non-interest income was $22 million, increasing $1.1 million linked quarter primarily due to higher loan related fee income.
  • Non-interest expense totaled $68 million on a GAAP basis and $67 million on an operating basis. The operating measure decreased $1.3 million linked quarter and $4.7 million year-over-year.
    • Compensation and occupancy expense decreased $1.8 million from seasonally higher levels in the linked quarter.
  • The effective tax rate was 27% in 2Q25 compared to 26% in the linked quarter.

Loans. Compared to the linked quarter, total loans increased $70 million, or 1%, to $9.5 billion. Growth was primarily in commercial and industrial loans which increased $56 million, or 4%.

  • The quarter-end allowance for credit losses on loans was unchanged at 1.24% of total loans.
    • The period-end allowance was 462% of non-performing loans.
  • Non-performing loans were 0.27% of total loans at period-end.
  • Delinquent and non-performing loans were 0.48% of total loans at period-end.

Deposits. Compared to the linked quarter, total end of period deposits increased $99 million, or 1%, to $10.0 billion. Total end of period deposits excluding payroll and brokered deposits increased $66 million, or 1%, linked quarter, and increased $541 million, or 7%, year-over year.

Equity. Total shareholders' equity increased $26 million, or 2%, linked quarter to $1.2 billion. The ratio of tangible common equity to tangible assets measured 10.1%, increasing from 9.9% linked quarter. Tangible book value per share grew 13% year-over-year to $26.12 at period-end.

Proposed Transaction with Brookline Bancorp, Inc. On December 16, 2024, Berkshire Hills Bancorp, Inc., Commerce Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Berkshire formed solely to facilitate the merger ("Merger Sub") and Brookline Bancorp, Inc., a Delaware corporation ("Brookline"), entered into an Agreement and Plan of Merger (the "Merger Agreement"). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Brookline, with Brookline as the surviving entity, and immediately thereafter, Brookline will merge with and into Berkshire, with Berkshire as the surviving entity (collectively, the "Merger"). As a result of the Merger, the separate corporate existence of Brookline will cease, and Berkshire will continue as the surviving corporation. Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of Brookline common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. Holders of Brookline common stock will receive cash in lieu of fractional shares of Berkshire common stock. As a result of the proposed transaction and a $100 million common stock offering completed by Berkshire to support the proposed transaction, Berkshire stockholders will own approximately 55% and Brookline stockholders will own approximately 45% of the outstanding shares of the combined company. The proposed transaction is expected to close in 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals. Shareholders of both companies approved merger-related proposals in May 2025.

Conference Call and Investor Presentation. Berkshire will conduct a conference call/webcast at 9:00 a.m. Eastern time on Thursday, July 24, 2025 to discuss results for the quarter and the Company's outlook. 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. These factors include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of Berkshire or Brookline to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Brookline; delays in completing the proposed transaction with Brookline; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction), or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and Brookline to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties' ability to pursue certain business opportunities and strategic transactions; diversion of management's attention from ongoing business operations and opportunities; and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction. You should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this document. Berkshire does not undertake any obligation to update forward-looking statements.

INVESTOR CONTACT

Kevin Conn

Investor Relations

617.641.9206

[email protected] 

MEDIA CONTACT

Gary Levante

Corporate Communications

413.447.1737

[email protected]

 



Berkshire Hills Bancorp



SELECTED FINANCIAL HIGHLIGHTS (1)







At or for the Quarters Ended







June 30,



March 31,



Dec. 31,



Sept. 30,



June 30,









2025



2025



2024



2024



2024





























NOMINAL AND PER SHARE DATA























Net earnings/(loss) per common share, diluted

$         0.66



$          0.56



$          0.46



$         0.88



$          0.57





Operating earnings per common share, diluted (2)(3)

0.69



0.60



0.60



0.58



0.55





Net income/(loss), (thousands)

30,366



25,719



19,657



37,509



24,025





Operating net income, (thousands) (2)(3)

31,587



27,621



25,982



24,789



23,168





Net interest income, (thousands) non FTE

91,921



89,771



86,855



88,059



88,532





Net interest income, FTE (5)

93,761



91,655



88,798



90,082



90,545





Total common shares outstanding, end of period (thousands) 

46,303



46,377



46,424



42,982



42,959





Average diluted shares, (thousands)

46,007



46,061



43,064



42,454



42,508





Total book value per common share, end of period

26.40



25.81



25.15



24.90



23.58





Tangible book value per common share, end of period (2)(3)

26.12



25.50



24.82



24.53



23.18





Dividends declared per common share

0.18



0.18



0.18



0.18



0.18





Dividend payout ratio (6)

27.54

%

32.52

%

39.40

%

20.63

%

32.74

%



























PERFORMANCE RATIOS (4)























Return on equity

9.97

%

8.63

%

7.18

%

14.29

%

9.49

%



Operating return on equity (2)(3)

10.37



9.28



9.49



9.44



9.15





Return on tangible common equity (2)(3)

10.35



9.02



7.59



14.83



9.99





Operating return on tangible common equity (2)(3)

10.76



9.66



9.93



9.91



9.65





Return on assets

1.03



0.88



0.68



1.28



0.82





Operating return on assets (2)(3)

1.07



0.94



0.90



0.85



0.79





Net interest margin, FTE (5)

3.27



3.24



3.14



3.16



3.20





Efficiency ratio (3)

56.73



59.45



62.43



63.74



63.40





























FINANCIAL DATA (in millions, end of period)























Total assets



$     12,035



$      12,013



$      12,273



$     11,605



$      12,219





Total earning assets

11,346



11,334



11,523



10,922



11,510





Total loans



9,499



9,429



9,385



9,212



9,229





Total funding liabilities

10,565



10,564



10,813



10,285



10,907





Total deposits



9,979



9,880



10,375



9,577



9,621





Loans/deposits (%)

95

%

95

%

90

%

96

%

96

%



Total accumulated other comprehensive (loss) net of tax, end of period

$           (91)



$           (95)



$         (106)



$           (89)



$         (115)





Total shareholders' equity

1,222



1,197



1,167



1,070



1,013





























ASSET QUALITY























Allowance for credit losses, (millions)

$          117



$           117



$           115



$          112



$           112





Net charge-offs, (millions)

(3)



(4)



(3)



(6)



(2)





Net charge-offs (QTD annualized)/average loans

0.14

%

0.15

%

0.14

%

0.24

%

0.07

%



Provision (benefit)/expense, (millions)

$              4



$               6



$               6



$              6



$               6





Non-performing assets, (millions)

28



26



27



27



24





Non-performing loans/total loans

0.27

%

0.25

%

0.26

%

0.26

%

0.23

%



Allowance for credit losses/non-performing loans

462



501



469



467



525





Allowance for credit losses/total loans

1.24



1.24



1.22



1.22



1.22





























CAPITAL RATIO























Tangible common shareholders' equity/tangible assets (3)

10.1



9.9



9.4



9.1



8.2























































(1)

All financial tables presented are unaudited. 





















(2)

Reconciliation of non-GAAP financial measures, including all references to operating and tangible amounts, appear on page 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 page 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)

Dividend payout ratio is based on dividends declared. 





















 

Berkshire Hills Bancorp

CONSOLIDATED BALANCE SHEETS



June 30,

March 31,

December 31,

June 30,

(in thousands)

2025

2025

2024

2024

Assets









Cash and due from banks

$               131,970

$                 121,137

$             182,776

$             112,085

Short-term investments

670,761

705,199

945,633

988,207

Total cash and cash equivalents

802,731

826,336

1,128,409

1,100,292











Trading securities, at fair value

4,835

5,010

5,258

5,699

Equity securities, at fair value

647

647

655

12,736

Securities available for sale, at fair value

664,713

669,182

655,723

611,711

Securities held to maturity, at amortized cost

476,756

494,242

507,658

520,239

Federal Home Loan Bank stock 

25,579

29,688

19,565

35,010

Total securities

1,172,530

1,198,769

1,188,859

1,185,395

Less: Allowance for credit losses on investment securities

(63)

(63)

(64)

(65)

Net securities

1,172,467

1,198,706

1,188,795

1,185,330











Loans held for sale

4,014

1,322

3,076

52,072











Commercial real estate loans

4,898,078

4,882,927

4,848,824

4,706,810

Commercial and industrial loans

1,511,362

1,455,847

1,461,341

1,421,921

Residential mortgages

2,720,363

2,721,885

2,701,227

2,674,611

Consumer loans

369,046

368,226

373,602

425,184

Total loans

9,498,849

9,428,885

9,384,994

9,228,526

Less: Allowance for credit losses on loans 

(117,344)

(116,678)

(114,700)

(112,167)

Net loans

9,381,505

9,312,207

9,270,294

9,116,359











Premises and equipment, net

58,439

57,680

56,609

55,893

Other real estate owned

124

-

-

-

Other intangible assets

12,809

13,936

15,064

17,319

Other assets

596,140

596,082

604,231

615,882

Assets held for sale 

6,519

6,930

6,930

76,307

Total assets

$         12,034,748

$            12,013,199

$        12,273,408

$        12,219,454











Liabilities and shareholders' equity









Non-interest bearing deposits

$           2,296,268

$             2,295,040

$          2,324,879

$          2,222,012

NOW and other deposits

814,600

789,418

841,406

766,641

Money market deposits

3,153,241

3,197,331

3,610,521

3,278,753

Savings deposits

1,105,009

1,065,530

1,021,716

1,004,320

Time deposits

2,609,913

2,532,558

2,576,682

2,349,733

Total deposits

9,979,031

9,879,877

10,375,204

9,621,459











Federal Home Loan Bank advances

463,861

562,921

316,482

689,606

Subordinated borrowings

121,736

121,674

121,612

121,487

Total borrowings

585,597

684,595

438,094

811,093











Other liabilities 

247,809

251,967

292,686

287,312

Liabilities held for sale 

-

-

-

486,648

Total liabilities

10,812,437

10,816,439

11,105,984

11,206,512











Common shareholders' equity

1,222,311

1,196,760

1,167,424

1,012,942

Total shareholders' equity

1,222,311

1,196,760

1,167,424

1,012,942

Total liabilities and shareholders' equity

$        12,034,748

$           12,013,199

$        12,273,408

$        12,219,454

 

Berkshire Hills Bancorp

CONSOLIDATED STATEMENTS OF OPERATIONS



Three Months Ended



Six Months Ended



June 30,



June 30,

(in thousands, except per share data)

2025



2024



2025



2024

Interest income    

$       151,469



$        154,109



$       299,799



$        306,115

Interest expense    

59,548



65,577



118,107



129,443

Net interest income, non FTE

91,921



88,532



181,692



176,672

Non-interest income















Deposit related fees

8,193



8,561



16,142



16,866

Loan related fees

5,100



2,364



8,887



5,027

Gain on SBA loans

2,288



3,294



5,564



4,993

Wealth management fees    

2,657



2,613



5,612



5,497

Fair value adjustments on securities

46



(42)



(6)



(157)

Other

3,468



3,343



6,225



5,217

Total non-interest income excluding gains and losses

21,752



20,133



42,424



37,443

(Loss) on sale of securities 

-



-



-



(49,909)

Total non-interest income      

21,752



20,133



42,424



(12,466)

Total net revenue

113,673



108,665



224,116



164,206

















Provision expense for credit losses   

4,000



6,499



9,500



12,499

















Non-interest expense 















Compensation and benefits

39,303



40,126



79,938



80,861

Occupancy and equipment     

7,203



8,064



14,869



16,762

Technology

9,756



10,236



19,821



20,140

Professional services

961



2,757



2,675



5,433

Regulatory expenses

1,648



1,848



3,275



3,693

Amortization of intangible assets     

1,128



1,140



2,256



2,345

Marketing

1,541



532



2,808



1,648

Merger, restructuring and other non-operating expenses

1,491



(384)



3,945



3,233

Other expenses

5,113



6,612



8,923



12,836

Total non-interest expense     

68,144



70,931



138,510



146,951

Total non-interest expense excluding non-operating expenses

66,653



71,315



134,565



143,718

















Income before income taxes       

41,529



31,235



76,106



4,756

Income tax expense

11,163



7,210



20,021



919

Net income

30,366



24,025



56,085



3,837

















Basic earnings per common share

$              0.66



$              0.57



$              1.23



$              0.09

Diluted earnings per common share

$              0.66



$              0.57



$              1.22



$              0.09

















Weighted average shares outstanding:      















Basic

45,764



42,437



45,731



42,602

Diluted

46,007



42,508



46,042



42,763

















 

Berkshire Hills Bancorp

CONSOLIDATED STATEMENTS OF OPERATIONS (5 Quarter Trend) 





June 30,



March 31,



Dec. 31,



Sept. 30,



June 30,

(in thousands, except per share data)



2025



2025



2024



2024



2024

Interest income    



$    151,469



$      148,330



$      150,555



$      157,268



$      154,109

Interest expense    



59,548



58,559



63,700



69,209



65,577

Net interest income, non FTE



91,921



89,771



86,855



88,059



88,532

Non-interest income 





















Deposit related fees



8,193



7,949



8,237



8,656



8,561

Loan related fees



5,100



3,787



3,039



3,214



2,364

Gain on SBA loans



2,288



3,276



4,635



3,020



3,294

Wealth management fees    



2,657



2,955



2,658



2,685



2,613

Fair value adjustments on securities



46



(52)



(352)



516



(42)

Other



3,468



2,757



4,943



3,416



3,343

Total non-interest income excluding gains and losses



21,752



20,672



23,160



21,507



20,133

Gain on sale of business operations and assets, net



-



-



193



16,048



-

Loss on sale of securities 



-



-



(28)



-



-

Total non-interest income      



21,752



20,672



23,325



37,555



20,133

Total net revenue 



113,673



110,443



110,180



125,614



108,665























Provision expense for credit losses   



4,000



5,500



6,000



5,500



6,499

Non-interest expense





















Compensation and benefits



39,303



40,635



38,929



40,663



40,126

Occupancy and equipment     



7,203



7,666



7,334



7,373



8,064

Technology



9,756



10,065



10,241



10,014



10,236

Professional services



961



1,714



2,765



2,109



2,757

Regulatory expenses



1,648



1,627



1,851



1,851



1,848

Amortization of intangible assets     



1,128



1,128



1,128



1,128



1,140

Marketing



1,541



1,267



2,013



861



532

Merger, restructuring and other non-operating expenses



1,491



2,454



6,557



(297)



(384)

Other expenses



5,113



3,810



6,757



8,258



6,612

Total non-interest expense     



68,144



70,366



77,575



71,960



70,931

Total non-interest expense excluding non-operating expenses



66,653



67,912



71,018



72,257



71,315













































Income/(loss) before income taxes



$      41,529



$        34,577



$        26,605



$        48,154



$        31,235

Income tax expense/(benefit)



11,163



8,858



6,948



10,645



7,210

Net income/(loss)



$      30,366



$        25,719



$        19,657



$        37,509



$        24,025













































Diluted earnings/(loss) per common share



$           0.66



$            0.56



$            0.46



$            0.88



$            0.57























Weighted average shares outstanding:





















Basic



45,764



45,684



42,661



42,170



42,437

Diluted



46,007



46,061



43,064



42,454



42,508













































 

Berkshire Hills Bancorp

AVERAGE BALANCES AND AVERAGE YIELDS AND COSTS 



Quarters Ended





June 30, 2025



March 31, 2025



June 30, 2024

(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



$          4,903

76

6.19

%



$         4,865

$         75

6.19

%



4,649

77

6.52

%

Commercial and industrial loans



1,501

27

6.99





1,446

25

7.00





1,384

27

7.62



Residential mortgages



2,711

30

4.39





2,708

30

4.35





2,694

28

4.21



Consumer loans



369

5

6.58





370

6

6.57





430

8

7.47



Total loans 



9,484

138

5.82





9,389

136

5.80





9,157

140

6.05



Securities (2)



1,299

8

2.59





1,312

9

2.62





1,332

8

2.44



Short-term investments and loans held for sale



540

5

4.31





534

6

4.19





597

8

5.07



New York branch loans held for sale (3)



-

-

-





-

-

-





57

1

5.86



Total earning assets



11,323

151

5.38





11,235

151

5.35





11,143

157

5.57



Goodwill and other intangible assets



13









14









18







Other assets



513









505









531







Total assets



11,849









$         11,754









11,692







































































Non-interest-bearing demand deposits



2,281

$            -

-

%



$         2,262

$            -

-

%



2,244

$            -

-

%

NOW and other



800

3

1.48





758

2

1.32





763

3

1.44



Money market



3,095

23

2.92





3,247

23

2.87





2,909

24

3.32



Savings



1,081

3

1.24





1,038

3

1.13





1,004

3

1.06



Time



2,560

24

3.73





2,542

25

3.91





2,376

25

4.22



Total deposits



9,817

53

2.15





9,847

53

2.18





9,296

55

2.35



Borrowings (4)



590

7

4.65





463

6

4.90





610

9

5.55



New York branch non-interest-bearing deposits held for sale (3)

-

-

-





-

-

-





97

-

-



New York branch interest-bearing deposits held for sale (3)



-

-

-





-

-

-





386

3

2.80



Total funding liabilities



10,407

60

2.29





10,310

59

2.30





10,389

67

2.53



































Other liabilities



224









253









290







Total liabilities



10,631









10,563









10,679







































Common shareholders' equity (5)



1,218









1,191









1,013







Total shareholders' equity



1,218









1,191









1,013







Total liabilities and shareholders' equity



11,849









$         11,754









11,692







Net interest margin, FTE







3.27









3.24









3.20



































Supplementary data































Net Interest Income, non FTE



91,921









89,771









88,532







FTE income adjustment



1,840









1,884









2,013







Net Interest Income, FTE



93,761









91,655









90,545









(1) Interest income and expense presented on a fully taxable equivalent basis. 

(2) Average balances for securities available-for-sale are based on amortized cost.

(3) New York branch loans and deposits moved to held for sale on March 4, 2024. 

(4) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet. 

(5) Unrealized gains and losses, net of tax, are included in average equity. 

 

Berkshire Hills Bancorp

ASSET QUALITY ANALYSIS 



At or for the Quarters Ended



June 30,

March 31,

December 31,

September 30,

June 30,

(in thousands)

2025

2025

2024

2024

2024

NON-PERFORMING ASSETS





















Commercial real estate 

$             9,869



$               9,742



$             10,393



$            10,270



$              5,976



Commercial and industrial loans

11,512



8,998



9,156



8,227



8,489



Residential mortgages

3,289



3,684



3,830



4,348



5,491



Consumer loans

734



856



1,068



1,124



1,392



Total non-performing loans

25,404



23,280



24,447



23,969



21,348



Repossessed assets

2,384



2,288



2,280



2,563



2,549



Total non-performing assets

$          27,788



$             25,568



$             26,727



$            26,532



$            23,897

























Total non-performing loans/total loans

0.27 %



0.25 %



0.26 %



0.26 %



0.23 %



Total non-performing assets/total assets

0.23 %



0.21 %



0.22 %



0.23 %



0.20 %

























PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS



















Balance at beginning of period

$        116,678



$           114,700



$           112,047



$          112,167



$          107,331



Charged-off loans

(4,348)



(6,256)



(4,553)



(7,091)



(3,246)



Recoveries on charged-off loans

1,014



2,734



1,206



1,471



1,583



Net loans charged-off

(3,334)



(3,522)



(3,347)



(5,620)



(1,663)



Provision expense for loan credit losses

4,000



5,500



6,000



5,500



6,499



Balance at end of period

$        117,344



$           116,678



$           114,700



$          112,047



$          112,167

























Allowance for credit losses/total loans

1.24 %



1.24 %



1.22 %



1.22 %



1.22 %



Allowance for credit losses/non-performing loans

462 %



501 %



469 %



467 %



525 %

























NET LOAN CHARGE-OFFS





















Commercial real estate

$              (338)



$                (991)



$                (121)



$                (999)



$                   22



Commercial and industrial loans

(3,232)



(1,518)



(2,309)



(1,009)



(711)



Residential mortgages

48



161



552



273



316



Home equity 

(13)



102



1



3



8



Other consumer loans

205



(1,276)



(1,470)



(3,888)



(1,298)



Total, net

$           (3,330)



$             (3,522)



$             (3,347)



$             (5,620)



$             (1,663)

























Net charge-offs (QTD annualized)/average loans 

0.14 %



0.15 %



0.14 %



0.24 %



0.07 %



Net charge-offs (YTD annualized)/average loans 

0.15 %



0.15 %



0.16 %



0.16 %



0.13 %















































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

$          15,263

0.16 %

$               9,783

0.10 %

$             17,591

0.19 %

$            18,526

0.20 %

$            18,494

0.20 %

90+ Days delinquent and still accruing

4,675

0.05 %

6,858

0.07 %

6,417

0.07 %

6,280

0.07 %

11,672

0.13 %

Total accruing delinquent loans

19,938

0.21 %

16,641

0.17 %

24,008

0.26 %

24,806

0.27 %

30,166

0.33 %

Non-performing loans

25,404

0.27 %

23,280

0.25 %

24,447

0.26 %

23,969

0.26 %

21,348

0.23 %

Total delinquent and non-performing loans

$          45,342

0.48 %

$             39,921

0.42 %

$             48,455

0.52 %

$            48,775

0.53 %

$            51,514

0.56 %

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. Adjustments in 2025 were primarily related to the pending merger. Adjustments in 2024 were primarily related to the pending merger, branch sales and consolidations, and loss on sale of securities. 

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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA





At or for the Quarters Ended







June 30,



March 31,



Dec. 31,



Sept. 30,



June 30,



(in thousands)





2025



2025



2024



2024



2024



Total non-interest income





$     21,752



$       20,672



$       23,325



$       37,555



$       20,133



Adj: Net (gains) on sale of business operations and assets





-



-



(193)



(16,048)



-



Adj: Loss on sale of securities





-



-



28



-



-



Total operating non-interest income (1)





$     21,752



$       20,672



$       23,160



$       21,507



$       20,133





























Total revenue

(A)



$   113,673



$     110,443



$     110,180



$     125,614



$     108,665



Adj: Net (gains) on sale of business operations and assets





-



-



(193)



(16,048)



-



Adj: Loss on sale of securities





-



-



28



-



-



Total operating revenue (1)

(B)



$   113,673



$     110,443



$     110,015



$     109,566



$     108,665





























Total non-interest expense

(C)



$     68,144



$       70,366



$       77,575



$       71,960



$       70,931



Adj: Merger, restructuring and other non-operating expenses





(1,491)



(2,454)



(6,557)



297



384



Operating non-interest expense (1) 

(D)



$     66,653



$       67,912



$       71,018



$       72,257



$       71,315





























Pre-tax, pre-provision net revenue (PPNR)

(A-C)



$     45,529



$       40,077



$       32,605



$       53,654



$       37,734



Operating pre-tax, pre-provision net revenue (PPNR) (1)

(B-D)



47,020



42,531



38,997



37,309



37,350





























Net income/(loss)





$     30,366



$       25,719



$       19,657



$       37,509



$       24,025



Adj: Net (gains) on sale of business operations and assets





-



-



(193)



(16,048)



-



Adj: Loss on sale of securities





-



-



28



-



-



Adj: Merger, restructuring expense and other non-operating expenses





1,491



2,454



6,557



(297)



(384)



Adj: Income taxes (expense)/benefit





(270)



(552)



(67)



3,625



(473)



Total operating income (1)

(E)



$     31,587



$       27,621



$       25,982



$       24,789



$       23,168





























(in millions, except per share data)

























Total average assets

(F)



$     11,849



$       11,754



$       11,596



$       11,695



$       11,692



Total average shareholders' equity

(G)



1,218



1,191



1,095



1,050



1,013



Total average tangible shareholders' equity (1) 

(I)



1,205



1,177



1,080



1,034



995



Total accumulated other comprehensive (loss) net of tax, end of period





(91)



(95)



(106)



(89)



(115)



Total tangible shareholders' equity, end of period (1)

(K)



1,210



1,183



1,152



1,054



996



Total tangible assets, end of period (1)

(L)



12,022



11,999



12,258



11,588



12,202





























Total common shares outstanding, end of period (thousands

(M)



46,303



46,377



46,424



42,982



42,959



Average diluted shares outstanding (thousands)

(N)



46,007



46,061



43,064



42,454



42,508





























Earnings/(loss) per common share, diluted (1)





$          0.66



$           0.56



$           0.46



$           0.88



$           0.57



Operating earnings per common share, diluted (1)

(E/N)



0.69



0.60



0.60



0.58



0.55



Tangible book value per common share, end of period (1)

(K/M)



26.12



25.50



24.82



24.53



23.18



Total tangible shareholders' equity/total tangible assets (1)

(K/L)



10.06



9.86



9.40



9.10



8.16





























Performance ratios (2)

























Return on equity





9.97

%

8.63

%

7.18

%

14.29

%

9.49

%

Operating return on equity (1)

(E/G)



10.37



9.28



9.49



9.44



9.15



Return on tangible common equity (1)(3)





10.35



9.02



7.59



14.83



9.99



Operating return on tangible common equity (1)(3)

(E+Q)/(I)



10.76



9.66



9.93



9.91



9.65



Return on assets





1.03



0.88



0.68



1.28



0.82



Operating return on assets (1)

(E/F)



1.07



0.94



0.90



0.85



0.79



Efficiency ratio (1) 

(D-Q)/(B+R)



56.73



59.45



62.43



63.74



63.40























































Supplementary data (in thousands)

























Effective tax rate





26.9

%

25.6

%

26.1

%

22.1

%

23.1

%

Intangible amortization

(Q)



$       1,128



$         1,128



$         1,128



$         1,128



$         1,140



Fully taxable equivalent income adjustment 

(R)



1,840



1,884



1,943



2,023



2,013























































(1) Non-GAAP financial measure.

























(2) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding.

(3) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. 

























 

Berkshire Hills Bancorp



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED







At or for the Six Months Ended









June 30,

June 30,

(in thousands)





2025

2024

Total non-interest income





$     42,424



$     (12,466)



Adj: Loss on sale of securities





-



49,909



Total operating non-interest income (1)





$     42,424



$       37,443

















Total revenue

(A)



$   224,116



$     164,206



Adj: Net (gains) on sale of business operations and assets





-



-



Adj: Loss on sale of securities





-



49,909



Total operating revenue (1)

(B)



$   224,116



$     214,115

















Total non-interest expense

(C)



$   138,510



$     146,951



Less: Merger, restructuring and other non-operating expenses





(3,945)



(3,233)



Operating non-interest expense (1)                                    

(D)



$   134,565



$     143,718

















Pre-tax, pre-provision net revenue (PPNR)

(A-C)



$     85,606



$       17,255



Operating pre-tax, pre-provision net revenue (PPNR) (1)

(B-D)



89,551



70,397

















Net income





$     56,085



$         3,837



Adj: Loss on sale of securities





-



49,909



Adj: Merger, restructuring expense and other non-operating expenses





3,945



3,233



Adj: Income taxes (expense)/benefit





(822)



(12,877)



Total operating income (1)

(E)



$     59,208



$       44,102

















(in millions, except per share data)













Total average assets                                                

(F)



$     11,802



$       11,723



Total average shareholders' equity

(G)



1,205



1,015



Total average tangible shareholders' equity (1)            

(I)



1,191



997



Total accumulated other comprehensive (loss) net of tax, end of period





(91)



(115)



Total tangible shareholders' equity, end of period (1)

(K)



1,210



996



Total tangible assets, end of period (1)

(L)



12,022



12,202

















Total common shares outstanding, end of period (thousands)               

(M)



46,303



42,959



Average diluted shares outstanding (thousands)

(N)



46,042



42,763

















Earnings/(loss) per common share, diluted (1)





$          1.22



$           0.09



Operating earnings per common share, diluted (1)

(E/N)



1.29



1.03



Tangible book value per common share, end of period (1)

(K/M)



26.12



23.18



Total tangible shareholders' equity/total tangible assets (1)

(K/L)



10.06



8.16

















Performance ratios (2)













Return on equity





9.31

%

0.76

%

Operating return on equity (1)

(E/G)



9.83



8.69



Return on tangible common equity (1)(3)





9.69



1.11



Operating return on tangible common equity (1)(3)

(E+Q)/(I)



10.22



9.19



Return on assets





0.95



0.07



Operating return on assets (1)

(E/F)



1.00



0.75



Efficiency ratio (1)                                                                 

(D-Q)/(B+R)



58.07



64.81



Net interest margin, FTE





3.26



3.18

















Supplementary data (in thousands)













Intangible amortization

(Q)



$       2,256



$         2,345



Fully taxable equivalent income adjustment 

(R)



3,724



4,019































(1) Non-GAAP financial measure.













(2) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding.

(3) Amortization of intangible assets is adjusted assuming a 27% marginal tax rate. 













 

View original content to download multimedia:https://www.prnewswire.com/news-releases/berkshire-hills-reports-strong-earnings-growth-302512671.html

SOURCE Berkshire Hills Bancorp, Inc.

Latest News