Earnings Release Schedule - Berkshire Hills Bancorp, Inc. is set to release its first quarter 2025 earnings on April 24, 2025, at approximately 7:30 a.m. (Eastern) [1] - A conference call will follow the earnings release on the same day at 9:00 a.m. (Eastern) [1] - Participants can register for the webcast or join via a toll-free dial-in number [1][2] Company Overview - Berkshire Hills Bancorp, Inc. is the parent company of Berkshire Bank, which focuses on relationship-driven and community-oriented banking [3] - The company has $12.3 billion in assets and operates 83 financial centers across New England and New York [3] - Berkshire Bank offers a range of services including commercial, retail, private banking, and wealth solutions [3]

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. One company to watch right now is Berkshire Hills Bancorp (BHLB) . BHLB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.27. This ...

Market Overview - The U.S. share market experienced volatility on March 7, 2025, with most stock indices closing slightly positive despite concerns over President Trump's tariff policies and a weaker-than-expected jobs report [1] - Federal Reserve Chair Jerome Powell's statement about the economy being in good shape provided some optimism among investors [1] Investment Recommendations - In the current volatile market, it is suggested that investors consider low-leverage stocks as safer investment options [2] - Recommended stocks include BioLife Solutions (BLFS), Berkshire Hills Corporation (BHLB), NVIDIA (NVDA), The Greenbrier Companies (GBX), and EZCORP (EZPW) due to their low leverage [2] Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [7] - Companies with high debt-to-equity ratios may face challenges during economic downturns, despite strong earnings growth [8] Stock Selection Criteria - Stocks should have a debt-to-equity ratio lower than the industry median, a current price of at least $10, and an average 20-day trading volume of at least 50,000 [11] - Additional criteria include earnings growth expectations, a VGM Score of A or B, and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [12] Company Performance Highlights - **BioLife Solutions (BLFS)**: Reported a 31% year-over-year revenue increase in Q4 2024, with an adjusted operating loss narrowing to $746 million [13] - **Berkshire Hills Bancorp (BHLB)**: Achieved a 28% year-over-year increase in operating EPS and a 37.7% growth in total net revenues [14] - **NVIDIA (NVDA)**: Experienced a 78% year-over-year revenue increase and a 71% rise in adjusted EPS [15] - **The Greenbrier Companies (GBX)**: Reported net earnings of $55 million on revenues of $876 million, with an operating margin of 12.8% [17] - **EZCORP**: Announced a 14% year-over-year increase in adjusted net income and a 7% rise in revenues [19]

Loan Portfolio Growth - The total loan portfolio increased to $9,385 million in 2024, up from $9,039 million in 2023, representing a growth of 3.8%[22] - Commercial real estate non-owner occupied loans accounted for 29.5% of the total loan portfolio, totaling $2,770 million in 2024, compared to $2,607 million in 2023[22] - Residential real estate loans also represented 29.5% of the total loan portfolio, amounting to $2,772 million in 2024, slightly up from $2,760 million in 2023[22] - Construction loans grew to $726 million in 2024, a significant increase of 13.4% from $640 million in 2023[22] - Commercial and industrial loans totaled $1,439 million in 2024, reflecting a 5.9% increase from $1,359 million in 2023[22] Credit Losses and Risk Management - The allowance for credit losses increased to $115 million in 2024 from $105 million in 2023, indicating a rise in potential credit risk[22] - The allowance for credit losses on loans to total loans ratio increased to 1.22% in 2024 from 1.17% in 2023[48] - Nonaccrual loans as a percentage of total loans rose to 0.26% in 2024, compared to 0.24% in 2023[48] - The allowance for credit losses on nonaccruing loans was 469.18% in 2024, down from 492.47% in 2023[48] - Net charge-offs to average loans decreased to 0.16% in 2024 from 0.26% in 2023[48] - Total allowance for credit losses on loans was $114.7 million in 2024, consistent at 1.2% of total loans[50] - The Bank's management reported that it prefers to work with borrowers to resolve problems rather than proceeding to foreclosure[43] Interest Rate Risk Management - The effective management of interest rate risk is essential for achieving the Company's financial objectives, with the Asset Liability Committee overseeing this[346] - The estimated percent change in Net Interest Income for a +200 basis points shock is projected at 2.2% for December 31, 2024[350] - The Company's Economic Value of Equity sensitivity profile indicates a modest liability sensitivity at December 31, 2024, decreasing compared to December 31, 2023[355] Specialized Lending Operations - The Bank's commercial loan participations and interest rate swaps are part of its strategy to manage risk in commercial real estate lending[23] - The Bank's Asset Based Lending Group targets credit needs ranging from $2 million to $25 million, focusing on manufacturers and distributors[28] - The remaining portfolio of Firestone Financial LLC, which originated loans secured by business-essential equipment, totaled $41 million as of December 31, 2024[29] - The Bank's residential mortgage operations include fixed-rate and adjustable-rate loans with maturities of up to 30 years, primarily for investment purposes[31] Regulatory Measures - The supervisory measure of commercial real estate loans to total bank regulatory capital was 292% at period-end, up from 286% at year-end 2023[42]

Core Viewpoint - The U.S. equities market experienced a decline due to concerns over recent tariff impositions by Trump, which may impact the profitability of many U.S. companies engaged in global trade [1] Group 1: Investment Recommendations - In the current market environment, it is suggested that investors consider low-leverage stocks as safer investment options to mitigate potential losses [2] - Recommended stocks include Berkshire Hills Bancorp (BHLB), Sportradar Group (SRAD), Nextracker (NXT), The Greenbrier Companies (GBX), and Fox Corp. (FOX), all of which exhibit low leverage [2] Group 2: Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing, which can be riskier than equity financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] Group 3: Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [7] - During economic downturns, companies with high debt-to-equity ratios may face challenges despite previously strong earnings [8] Group 4: Screening Criteria for Stocks - A prudent investment strategy involves selecting stocks with a debt-to-equity ratio lower than the industry median, a current price of at least $10, and an average 20-day trading volume of 50,000 or more [10][11] - Additional criteria include a percentage change in earnings per share (EPS) greater than the industry median, a VGM Score of A or B, and a Zacks Rank of 1 or 2 [12] Group 5: Company Highlights - **Berkshire Hills Bancorp (BHLB)**: Reported a 28% year-over-year growth in operating EPS and a projected 30% increase in 2025 sales [13][14] - **Sportradar Group (SRAD)**: Achieved a long-term earnings growth rate of 49.8% and a 15.5% expected sales increase for 2025 [15][16] - **Nextracker (NXT)**: Recorded a backlog exceeding $4.5 billion and a 57.44% average earnings surprise over four quarters [17][18] - **The Greenbrier Companies (GBX)**: Reported net earnings of $55 million with a long-term earnings growth rate of 11.7% [19][20] - **Fox Corp. (FOX)**: Achieved a long-term earnings growth rate of 7.1% and a significant earnings surprise of 31.82% in the last quarter [20][21]

Core Insights - Berkshire Hills Bancorp (BHLB) reported revenue of $110.02 million for the quarter ended December 2024, a decrease of 12.3% year-over-year, but exceeded the Zacks Consensus Estimate of $104.59 million by 5.19% [1] - The company's EPS was $0.60, an increase from $0.47 in the same quarter last year, surpassing the consensus estimate of $0.54 by 11.11% [1] Financial Performance Metrics - Efficiency Ratio was reported at 62.4%, better than the estimated 65.9% by analysts [4] - Net interest margin (FTE) was 3.1%, slightly below the average estimate of 3.2% [4] - Average balance of total earning assets was $11.08 billion, compared to the estimated $11.18 billion [4] - Total non-interest income reached $23.33 million, exceeding the average estimate of $20.41 million [4] - Net interest income was reported at $86.86 million, slightly above the estimated $86.74 million [4] Stock Performance - Shares of Berkshire Hills have returned +0.5% over the past month, while the Zacks S&P 500 composite increased by +1.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Earnings and Profitability - Fourth quarter operating EPS increased by 3% quarter-over-quarter and 28% year-over-year, reaching $0.60, while full year 2024 operating EPS was $2.22, up 4% from 2023[3][4][10] - Net income for the quarter ended December 31, 2024, was $19,657,000, a decrease of 47.5% from $37,509,000 in the previous quarter[20] - Operating net income increased to $25,982,000, up from $24,789,000 in the previous quarter, reflecting a growth of 4.8%[20] - The dividend declared per common share remained stable at $0.18, with a dividend payout ratio of 39.40%[20] - Return on equity for the quarter was 7.18%, down from 14.29% in the previous quarter[20] - The company reported a net income of $19,657 for Q4 2024, a turnaround from a loss of $1,445 in Q4 2023, with annual net income decreasing to $61,003 from $69,598[26] - Basic earnings per share for Q4 2024 was $0.46, compared to a loss of $0.03 in Q4 2023, while diluted earnings per share also improved to $0.46 from a loss of $0.03[26] - Net income for 2024 was $61.003 million, down 12.5% from $69.598 million in 2023[45] - Earnings per common share, diluted, decreased to $1.43 in 2024 from $1.60 in 2023[45] Revenue and Income Sources - Total net revenue for Q4 2024 was $110,180, up from $80,038 in Q4 2023, with annual revenue slightly decreasing to $400,000 from $411,829[26] - Total non-interest income for Q4 2024 was $23,325, a significant recovery from a loss of $8,383 in Q4 2023, contributing to an annual total of $48,414 compared to $42,782[26] - Total non-interest income increased to $82.110 million in 2024, up 21.0% from $67.839 million in 2023[45] - Total operating revenue for 2024 was $433.696 million, slightly down from $436.886 million in 2023[45] Assets and Liabilities - Total assets reached $12,273 million, an increase of 5.8% from $11,605 million in the previous quarter[20] - Total assets as of December 31, 2024, were $11,596 million, a decrease from $11,862 million on December 31, 2023[30] - Total deposits increased to $10,375 million, a significant increase of 8.3% from $9,577 million in the previous quarter[20] - Total deposits increased to $9,659 million, with a total funding liabilities of $10,261 million[30] - Total shareholders' equity increased by $97 million, or 9%, to $1.2 billion, supported by a successful $100 million common stock issuance[15] - The company’s common shareholders' equity stood at $1,095 million, up from $966 million a year ago[30] Loans and Credit Quality - Average deposits grew by 3% and average loans increased by 0.4% quarter-over-quarter, with total loans rising by $173 million, or 2%, to $9.4 billion[3][13] - Total loans increased to $9,385 million, up 1.9% from $9,212 million in the previous quarter[20] - Non-performing loans to total loans remained stable at 0.26%, with delinquent and non-performing loans at 0.52%, the lowest level in nearly two decades[3][17] - The allowance for credit losses increased to $115 million, up from $112 million in the previous quarter, reflecting a cautious approach to asset quality[20] - Non-performing loans as a percentage of total loans remained stable at 0.26% for both the current and previous quarters[20] - The provision for loan credit losses was $6,000 thousand for the quarter, with an ending balance of $114,700 thousand in the allowance for credit losses[33] - The company reported net loans charged-off of $3,347 thousand for the quarter, with a net charge-off rate of 0.14%[33] Operational Efficiency - The efficiency ratio improved to 62.4%, reflecting better operational efficiency compared to prior periods[4][11] - The efficiency ratio improved to 62.43%, compared to 63.74% in the previous quarter, indicating better cost management[20] - The efficiency ratio for 2024 was 63.94%, slightly up from 63.88% in 2023[45] Mergers and Acquisitions - The company announced a merger agreement with Brookline Bancorp, Inc., aiming to create a leading Northeast banking franchise[4][7] Tax and Regulatory - The effective tax rate for Q4 was 26%, with an operating income tax rate of 21%[12] - The effective tax rate for the quarter ending March 31, 2024, was 26.1%[41] Other Financial Metrics - The return on tangible common equity was 9.9% for Q4 2024, with a common equity Tier 1 ratio of 13.0%[3][4] - Total average shareholders' equity increased to $1,044 million in 2024 from $984 million in 2023[45] - Total tangible shareholders' equity at the end of the period rose to $1,152 million, compared to $993 million in 2023[45]

Core Viewpoint - Berkshire Hills Bancorp (BHLB) reported quarterly earnings of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing an increase from $0.47 per share a year ago, indicating a positive earnings surprise of 11.11% [1] Financial Performance - The company achieved revenues of $110.02 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.19%, although this represents a decline from year-ago revenues of $125.48 million [2] - Over the last four quarters, Berkshire Hills has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Berkshire Hills shares have increased by approximately 0.5% since the beginning of the year, underperforming compared to the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for Berkshire Hills is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $105.93 million, and for the current fiscal year, it is $2.47 on revenues of $552.54 million [7] Industry Context - The Financial - Savings and Loan industry, to which Berkshire Hills belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Core Points - Berkshire Hills Bancorp, Inc. is scheduled to release its fourth quarter 2024 earnings on January 30, 2025, at approximately 7:30 a.m. Eastern Time [1] - A conference call will follow the earnings release on the same day at 9:00 a.m. Eastern Time, with options for both a live webcast and a dial-in number [1][2] - The company has $11.6 billion in assets and operates 83 financial centers across New England and New York, focusing on community-driven banking solutions [3] Earnings Release Details - Earnings Release Date: January 30, 2025, at 7:30 a.m. Eastern [1] - Conference Call Time: January 30, 2025, at 9:00 a.m. Eastern [1] - Webcast Registration Link: https://events.q4inc.com/attendee/539841607 [1] - Dial-in Number: Toll Free: (800) 715-9871; Conference ID 6567963 [1] - Webcast Replay Link: https://ir.berkshirebank.com [1] Company Overview - Berkshire Hills Bancorp, Inc. is the parent company of Berkshire Bank, which is community-focused and relationship-driven [3] - The bank offers a range of services including commercial, retail, private banking, and wealth solutions [3] - Headquarters located in Boston, Massachusetts [3]

Core Viewpoint - Berkshire Hills Bancorp, Inc. (BHLB) has agreed to acquire Brookline Bancorp, Inc. (BRKL) in an all-stock transaction valued at approximately $1.14 billion, expected to close by September 30, 2025, pending regulatory and shareholder approvals [1][2][3] Transaction Details - Upon closure, Brookline will merge into Berkshire, and Brookline Bank will merge into Berkshire Bank, with a new name and ticker symbol to be announced [2] - Berkshire will pay 0.42 shares of its common stock for each share of Brookline [3] - Berkshire plans to issue $100 million of its common stock at $29 per share to support the pro forma bank's balance sheet and regulatory capital ratios [4] Financial Metrics - Brookline Bancorp has approximately $11.7 billion in assets, $9.8 billion in total loans, and $8.7 billion in deposits as of September 30, 2024 [4] - The combined entity is expected to have around $24 billion in total assets, $19 billion in total loans, and $18.3 billion in total deposits [5] - Berkshire anticipates a 14% and 40% accretion to its earnings per share for 2025 and 2026, respectively, assuming successful execution of cost savings [9] Strategic Rationale - The merger is expected to enhance BHLB's deposit mix and expand its footprint, with a top 10 deposit market share in 14 out of 19 Metropolitan Statistical Areas [7] - Cost savings of 12.6% of combined non-interest expenses are anticipated, with one-time pre-tax merger expenses estimated at $93 million [8] - The transaction aligns with Berkshire's long-term inorganic growth strategy, emphasizing strategic buyouts for revenue and cost benefits [12] Governance and Future Outlook - The board of the combined entity will consist of eight directors from each company [6] - Berkshire expects to increase its dividend to $1.29 per share annually post-closure [6] - The tangible book value is projected to dilute by 16.7%, with an earn-back period of approximately 2.9 years [10]