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 ...

Loan and Deposit Performance - Total loans increased by $143 million to $9.23 billion, driven by commercial loan growth[4] - Total loans increased to $9,157 million with an interest income of $140 million, reflecting a yield of 6.05%[12] - Non-performing loans totaled $21,348 million, representing 0.23% of total loans, a slight decrease from 0.24% in the previous quarter[14] - Total deposits decreased to $9.62 billion, down from $9.88 billion[9] - Non-interest bearing deposits decreased by $40 million to $2.22 billion[5] - Total deposits decreased by $262 million to $9.62 billion[60] - Average loans increased to $9.214 billion, up from $9.059 billion in the prior quarter[38] - Non-performing loans to total loans decreased to 0.23% from 0.24% in the previous quarter[39] Income and Revenue - Net interest income rose by $392 thousand linked quarter, marking a positive shift after several quarters of decline[2] - Interest income for the three months ended June 30, 2024, was $154,109, an increase from $145,425 for the same period in 2023, representing a growth of 4.6%[10] - Net interest income, non-FTE, decreased to $88,532 for the three months ended June 30, 2024, compared to $92,759 for the same period in 2023, a decline of 4.9%[10] - Total non-interest income for the three months ended June 30, 2024, was $20,133, up from $17,094 in the same period last year, reflecting a growth of 11.9%[10] - Total net revenue for the three months ended June 30, 2024, was $108,665, slightly down from $109,853 in the same period last year, a decrease of 1.1%[10] - Total revenue for the period was $164.2 million, down from $224.0 million year-over-year[18] - Total operating revenue was $214.1 million, compared to $223.9 million in the previous year[18] - Total revenue for the quarter ended June 30, 2024, was $108.665 million, an increase from $55.541 million in the previous quarter[33] Expenses and Efficiency - Operating non-interest income increased by $2.8 million, primarily due to higher gains on SBA loans[2] - Total non-interest expense for the three months ended June 30, 2024, was $70,931, a decrease from $74,048 for the same period in 2023, a decline of 4.3%[10] - Total non-interest expense decreased to $70.931 million from $76.020 million in the prior quarter[33] - The efficiency ratio improved to 63.4%, down from 66.3%[2] - The efficiency ratio improved to 63.4% from 66.3% linked quarter[59] - Efficiency ratio increased to 64.81%, compared to 61.50% in the prior year[18] Profitability and Earnings - Net income for the three months ended June 30, 2024, was $7,210, compared to $3,944 for the same period in 2023, an increase of 82.5%[10] - Basic earnings per common share for the three months ended June 30, 2024, was $0.57, up from $0.55 in the same period last year, an increase of 3.6%[10] - Diluted earnings per common share for the three months ended June 30, 2024, was $0.57, consistent with the same period in 2023, indicating stable performance[10] - Net income for the second quarter was $24.0 million, or $0.57 per share, with operating earnings totaling $23.2 million, or $0.55 per share[21] - Operating EPS increased by 12% linked quarter, driven by loan growth, higher fee income, and lower operating expenses[21] - Net income for the quarter was $24.025 million, compared to a net loss of $20.188 million in the prior quarter[33] - Return on equity was 0.76%, a decrease from 10.39% in the previous year[18] - Return on average assets was 0.82%, improving from (0.69)% in the previous quarter[39] - Return on equity was 9.49%, up from 9.15% in the previous quarter[72] Credit Quality and Provisions - The loan loss provision increased by approximately $500 thousand, raising the credit loss allowance to 1.22% of total loans[2] - Provision expense for credit losses was $6,499 for the three months ended June 30, 2024, down from $8,000 for the same period in 2023, a decrease of 18.8%[10] - The allowance for credit losses increased to $112,167 million, with a ratio of 1.22% to total loans[14] - The provision for loan credit losses was $6,499 million, reflecting ongoing risk management efforts[14] - Allowance for credit losses was $112 million, an increase from $107 million in the previous quarter[63] Capital and Assets - Common equity Tier 1 capital ratio remained stable at 11.6%[8] - Total assets increased to $12.22 billion from $12.15 billion[9] - Total assets decreased to $11,692 million from $12,057 million year-over-year[12] - Total assets at the end of the period were $12,219 million, up from $12,147 million in the previous quarter[63] - Tangible common equity to tangible assets ratio was 8.2%, consistent with the prior quarter[39] - Total shareholders' equity increased by $3 million to $1.01 billion[42] Strategic Initiatives - The company is focusing on restructuring costs related to branch consolidations as part of its operational strategy[15] - Berkshire completed the consolidation of three branch offices, bringing the total branch count to 93[57] - Berkshire expanded its Down Payment Assistance Program to help qualifying buyers achieve homeownership[61]

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 ...

Core Insights - Berkshire Hills Bancorp reported a net income of $24.0 million, or $0.57 per share, for the second quarter of 2024, marking a recovery from a loss in the previous quarter [10][15] - Operating earnings increased to $23.2 million, or $0.55 per share, reflecting a 12% improvement linked quarter due to loan growth, higher fee income, and lower operating expenses [10][15] - The company achieved a net interest margin of 3.20%, up 5 basis points from the prior quarter, driven by loan growth and securities sales [10][15] Financial Performance - Total loans increased by $143 million to $9.23 billion, primarily due to growth in commercial loans [10][15] - Net interest income for the quarter was $88.5 million, slightly up from $88.1 million in the previous quarter [10][15] - Non-interest income totaled $20.1 million, with an increase of $2.8 million linked quarter, largely from gains on SBA loans [10][15] Expense Management - Operating non-interest expenses decreased by $1.1 million to $71.3 million, with reductions in compensation and occupancy costs [10][15] - The efficiency ratio improved to 63.4% from 66.3% in the prior quarter, indicating better cost management [10][15] Asset Quality - The allowance for credit losses on loans increased to 1.22% of total loans, up from 1.18% in the previous quarter [10][15] - Net loan charge-offs were $1.7 million, resulting in an annualized charge-off ratio of 0.07%, down from 0.18% in the prior quarter [10][15] Capital Position - Total shareholders' equity rose by $3 million to $1.01 billion, with tangible book value per share increasing to $23.18 from $22.84 [10][15] - Capital ratios remained strong, with the tangible common equity ratio unchanged at 8.2% [10][15] Corporate Responsibility - Berkshire expanded its Down Payment Assistance Program and engaged over 1,000 employees in volunteer projects, contributing more than 4,600 hours of service [10][15] - The company was recognized by TIME as one of America's Best Mid-Size Companies for 2024, highlighting its commitment to financial performance and sustainability [10][15]

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 ...

Table of Contents Table of Contents 5 BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (CONCLUDED) 8 The Consolidated Financial Statements (the "financial statements") of Berkshire Hills Bancorp, Inc. and its subsidiaries (the "Company" or "Berkshire") have been prepared in conformity with accounting principles generally accepted in t ...