Berkshire Hills Bancorp (BHLB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analyst ...

Financial Data and Key Metrics - Operating net income increased by 11% linked quarter to $23.2 million, with operating EPS up 12% to $0.55 [23] - Net interest income rose modestly by $400,000 linked quarter to $88.5 million, while net interest margin increased by 5 basis points to 3.20% [28][42] - Net charge-offs were $1.7 million or 7 basis points of average loans, marking the sixth consecutive quarter of declining net charge-offs [23][29] - Provision expense increased by $0.5 million linked quarter to $6.5 million, with a coverage ratio of 122 basis points of loans [29] - Operating expenses decreased by 2% linked quarter to $71.3 million, reflecting lower compensation, occupancy, and equipment expenses [24][43] Business Line Performance - Average loan balances increased by 2% linked quarter and 5% year-over-year, driven by growth in CRE and C&I loans [25][40] - Operating non-interest income rose by 16% linked quarter to $20.1 million, primarily due to gains on SBA loan sales and the reversal of tax credit amortization [4][39] - Wealth management fees declined linked quarter due to seasonal tax prep fees recognized in the first quarter [4] - The Upstart and Firestone portfolios combined are down to $124 million or 1.3% of total loans, performing as expected [40] Market and Regional Data - Average deposits decreased by 2% linked quarter, primarily due to lower payroll deposits, but were up 2% year-over-year [30][35] - Deposit costs increased by 6 basis points linked quarter to 235 basis points, with a cumulative deposit beta of 42% through 525 basis points of Fed tightening [57] - The company consolidated three additional branches in Q2, reducing the total branch count to 93, with a projection to reach 83 by the end of Q3 [36] Strategic Direction and Industry Competition - The company is focused on accelerating deposit growth, managing expenses and credit tightly, and expanding digital banking offerings [47] - The sale of 10 branches in New York is on track to close in Q3, enhancing the efficiency and profitability of the branch network [25] - The company aims to maintain a stable net interest margin around 3.20% and expects loan growth to be at the low end of the range provided in January [45] Management Commentary on Operating Environment and Outlook - The operating environment remains challenging due to historic increases in interest rates and the longest period of yield curve inversion in recorded history [47] - The company expects net interest income to be down modestly between $352 million and $354 million, with non-interest income projected between $75 million and $77 million [5] - The company anticipates provision expense to be between $25 million and $27 million and operating expenses between $287 million and $290 million [5] Other Important Information - The company repurchased 600,000 shares in Q2 for $13 million, with year-to-date repurchases totaling $17.4 million at an average cost of $21.94 [24][64] - The company expects to book a $19 million non-operating gain on the New York branch sale in Q3, with an after-tax impact of approximately $15 million to $16 million [45][108] Q&A Session Summary Question: Breakdown of CRE growth and average rates - The company grew commercial real estate by $113 million in Q2, with a focus on quality sponsors and relationship-driven lending [88][87] Question: Impact of rate cuts on NIM - The company expects to maintain a stable NIM around 3.20%, with tailwinds from fixed-rate assets repricing higher and fixed hedges rolling off [96] Question: Office portfolio maturities and vacancies - 8% of the office portfolio is maturing in 2024, with $21 million in Class A and $19 million in Class B properties, and vacancies consistent with the portfolio average of 90% occupancy [77][80] Question: Wealth management fees and SBA loan sales - Wealth management fees declined due to seasonal tax prep fees, while SBA loan sales were above the eight-quarter average, with strong momentum expected [50][72] Question: Tax rate guidance - The tax rate is expected to drop to the high end of the guidance range (20%-22%) due to a tax credit coming in later in the year [75]

72,403 332 81 71,315 1Q24 Compensation and Benefits Occupancy and Equipment Technology Professional Services Other 2Q24 -609-634 -258 -1,088 (-2%) YoY 74,027 71,315 166231 -906 -229 -1,974 -2,712 (-4%) 2Q23 Compensation and Benefits Occupancy and Equipment Technology Professional Services Other 2Q24 ＸBerkshireHillsBancorp Note: See Appendix for discussion and reconciliation of non-GAAP financial measures. "Other" includes Regulatory Expenses, Amortization of Intangibles, Marketing, and other expenses – plea ...

BOSTON, July 18, 2024 - Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported results for the second quarter of 2024. These results along with comparison periods are summarized below: Mr. Brbovic added, "The margin increase benefited from loan growth and impacts from prior quarter securities sales. Net interest income increased $392 thousand linked quarter, following several quarters of decreases. Operating non-interest income increased $2.8 million, primarily due to higher gain on SBA loans. The loan l ...

Berkshire Hills, which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $108.67 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $111.82 million. The company has topped consensus revenue estimates three times over the last four quarters. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this ...

Operating EPS of $0.55 increased 12% linked quarter million respectively (average), and $55 million and $474 million (end of period). These balances in 1Q24 were $18 million and $149 million respectively (average), and $58 million and $485 million (end of period). Berkshire CEO Nitin Mhatre stated, "Operating income advanced for the second consecutive quarter and we benefited from loan growth, credit quality, and expense management. The consolidation of three branch offices was completed, bringing our branc ...

Participants are requested to join the webcast or call a few minutes before the scheduled start of the call. Persons who are listen-only are requested to use the webcast link where practical. Webcast (listen-only): Register at: https://events.q4inc.com/attendee/633018241 Earnings Release: July 18, 2024, at approximately 7:30 a.m. (Eastern) Dial-in Number: Toll Free: 800-549-8228; Conference ID: 27778 Telephone Replay: Toll Free: 888-660-6264; Passcode: 27778 # ABOUT BERKSHIRE HILLS BANCORP INVESTOR RELATION ...

BOSTON, June 7, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today announced that its Board of Directors has approved a quarterly cash dividend of $0.18 per common share to shareholders of record at the close of business on June 20, 2024, payable on June 28, 2024. Headquartered in Boston, Berkshire Hills Bancorp is the parent of Berkshire Bank. With $12.1 billion in assets and 96 branches in New England and New York, the Bank provides Commercial Banking, Retail Banking, Consumer Lending, ...

BOSTON, May 17, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB), the parent company of Berkshire Bank, a relationship-driven, community-focused bank with financial centers in New England and New York, announced today that all three proposals were approved at its Annual Meeting of Shareholders on May 16, 2024, with a quorum of approximately 91% of outstanding shares voted in person or by proxy at the meeting. All measures were unanimously recommended by the Board. All measures requesting shar ...

BOSTON, May 14, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (the "Company", NYSE: BHLB) and Berkshire Bank (the "Bank") announced today that R. David Rosato, Chief Financial Officer, has decided to step down to pursue other interests. Mr. Rosato will remain with the company through June 14, 2024, as the Company transitions his responsibilities to Brett Brbovic. Brett Brbovic The Company and the Bank have appointed Chief Accounting Officer Brett Brbovic as Executive Vice President and Chief Financial ...