BOSTON, Feb. 12, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today announced that its Annual Meeting of Shareholders will be held at 10:00 am on Thursday, May 16, 2024 at Berkshire Bank's offices at 99 North Street, Pittsfield, Massachusetts.  The date of March 21, 2024 has been established as the record date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting. The agenda for the Annual Meeting will include proposals related to director electio ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Berkshire Hills Bancorp, Inc. (BHLB) is a bank holding company. The Zacks Consensus Estimate for its current year earnings has been revised 3.4% downward over the last 60 days.Blackstone Inc. (BX) is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions. The Zacks Consensus Estimate for its current year earnings has been revised 7.5% downward over the last 60 days.CNX Resources Corporat ...

Financial Data and Key Metrics Changes - Operating net income for Q4 2023 was $20.2 million, with operating EPS of $0.47, a decline of 6% linked quarter primarily due to a decrease in net interest income [8][31] - Full year 2023 EPS was $2.14, down 2% year-over-year [8] - Net interest margin decreased to 3.11%, down 7 basis points linked quarter, and net interest income declined by $1.9 million or 2% [13][32] - Average loan balances increased by 11% year-over-year but were up less than 1% linked quarter due to lower loan demand [3][14] Business Line Data and Key Metrics Changes - Average deposits increased by $306 million or 3% linked quarter, driven by growth in money market and time deposits [18] - Operating non-interest income was $16.7 million, down 5% linked quarter, with several fee line items below historic quarterly run rates [13][19] - Average loans increased by $38 million linked quarter, with growth in commercial real estate and residential loans, while C&I and consumer loans declined [16] Market Data and Key Metrics Changes - The liquidity position remains robust, with available liquidity coverage of core uninsured deposits at 146% [3] - Non-interest-bearing deposits as a percentage of total deposits decreased to 25% in Q4 from 26% in Q3 [18] - Cumulative total deposit beta was 37% through 525 basis points of Fed tightening [18] Company Strategy and Development Direction - The company aims for expense optimization, deposit growth, and credit management as top priorities for 2024 [2] - Strategic focus includes optimizing the real estate and branch network, with plans to consolidate branches and exit non-strategic office spaces [30] - The company is committed to self-funding investments that support its vision of being a high-performing, relationship-focused community bank [2][30] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a challenging operating environment due to historic increases in interest rates but remains focused on controlling internal factors [35][36] - There is optimism about future deposit growth and the potential for a more normalized banking environment in 2024 and 2025 [36] - The management emphasizes the importance of maintaining revenue generation capabilities while managing expenses [51][66] Other Important Information - The company incurred a severance charge of $3.7 million related to workforce reduction [2][144] - The Board has authorized a new share repurchase program of $40 million for 2024, with plans to continue opportunistic repurchases [24][44] - The company’s ESG score remains in the top quartile nationally, and it was recognized as one of the best regional banks [11] Q&A Session Summary Question: Can you elaborate on the impact of the repositioning on NII and margin? - The security sale occurred late in December and had no significant impact on Q4 margin, which was reported at 3.11% [51] Question: Are there any additional efficiency actions assumed in the expense guidance? - The company had a modest workforce reduction and is focused on targeted expense management as the year progresses [63][66] Question: What is the intrinsic value of the company? - The management believes the stock is undervalued and sees significant growth potential in the Eastern Massachusetts market [76] Question: How do you view the branch rationalization process? - The company plans to continue consolidating branches and optimizing its footprint based on customer service needs [112] Question: What are the plans for cannabis-related services? - Currently, the company is only providing deposit services related to cannabis, with deposit balances under $10 million [117]

Rate environment weighed on earnings1 3 4,385 4,469 1,436 84 38 1,367 2,618 2,656 513 498 3Q23 CRE C&I Resi Consumer 4Q23 8,952 -69 -15 8,990 +38 (+0.4%) CRE C&I Resi Consumer QoQ Accordingly, 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. | --- | --- | --- | --- | |----------------|--------------------------------------------------------- ...

Berkshire Hills Bancorp (BHLB) reported $125.48 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 6.6%. EPS of $0.47 for the same period compares to $0.64 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $109.05 million, representing a surprise of +15.07%. The company delivered an EPS surprise of -6.00%, with the consensus EPS estimate being $0.50.While investors closely watch year-over-year changes in headline numbers -- revenue and ...

Announces $40 Million Share Repurchase Authorization Fourth quarter loss of $1 million, ($0.03) per share; operating income of $20 million, $0.47 per share $267 million securities sale resulting in $25.1 million pre-tax non-operating loss Net loan charge-offs and non-performing assets decreased 18% linked quarter TCE ratio of 8.0% and CET1 ratio of 12.0% Tangible book value per share of $22.82, up $1.57, or 7%, in the quarter BOSTON, Jan. 25, 2024 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) ...

In its upcoming report, Berkshire Hills Bancorp (BHLB) is predicted by Wall Street analysts to post quarterly earnings of $0.50 per share, reflecting a decline of 21.9% compared to the same period last year. Revenues are forecasted to be $109.05 million, representing a year-over-year decrease of 7.4%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead o ...

BOSTON, Jan. 12, 2024 /PRNewswire/ -- The Berkshire Hills Bancorp, Inc. (NYSE: BHLB) fourth quarter 2023 earnings release and conference call are scheduled as follows:Earnings Release: Thursday, January 25, 2024, at approximately 7:30 a.m. (Eastern)Conference Call: Thursday, January 25, 2024, at 9:00 a.m. (Eastern)Webcast (listen-only): Register at: https://events.q4inc.com/attendee/627795005Dial-in Number: Toll Free: 888-259-6580; Conference ID: 33077376Webcast Replay: https://ir.berkshirebank.com (for the ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) The unaudited consolidated financial statements present the company's financial position, operations, and cash flows, with total assets increasing to **$12.14 billion** and nine-month net income rising to **$71.0 million** Consolidated Balance Sheet Highlights (in thousands) | Metric | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $12,139,953 | $11,662,864 | | Net Loans | $8,881,585 | $8,239,039 | | Total Deposits | $9,980,544 | $10,327,269 | | Total Liabilities | $11,188,944 | $10,708,802 | | Total Shareholders' Equity | $951,009 | $954,062 | Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $90,334 | $92,084 | $280,626 | $242,505 | | Provision for Credit Losses | $8,000 | $3,000 | $24,999 | ($1,000) | | Net Income | $19,545 | $18,717 | $71,043 | $62,028 | | Diluted EPS | $0.45 | $0.42 | $1.63 | $1.34 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended, in thousands) | Cash Flow Category | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $104,706 | $88,227 | | Net Cash (Used) by Investing Activities | ($497,083) | ($922,467) | | Net Cash Provided by (Used in) Financing Activities | $412,262 | ($98,654) | | Net Change in Cash and Cash Equivalents | ($21,885) | ($932,894) | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial statement breakdowns, revealing significant unrealized losses in the securities portfolio, growth in loans, increased credit loss allowance, a shift to higher-cost deposits, substantial FHLB borrowings, and capital ratios above regulatory minimums - The company adopted ASU No. 2022-02 regarding Troubled Debt Restructurings and Vintage Disclosures, which did not have a material impact on the financial statements[78](index=78&type=chunk)[107](index=107&type=chunk) Securities Portfolio Summary (Amortized Cost, in thousands) | Security Type | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Securities available for sale | $1,538,851 | $1,661,196 | | Securities held to maturity | $552,981 | $583,453 | - The company holds significant unrealized losses in its AFS and HTM portfolios but expects to recover the amortized cost basis and does not intend to sell these securities before recovery[119](index=119&type=chunk)[140](index=140&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Commercial (CRE, C&I, Construction) | $5,791,594 | $5,521,502 | | Residential real estate | $2,729,411 | $2,312,447 | | Consumer (Home equity, other) | $463,372 | $501,360 | | **Total Loans** | **$8,984,377** | **$8,335,309** | - The Allowance for Credit Losses on Loans (ACLL) increased to **$102.8 million** at September 30, 2023, from **$96.3 million** at year-end 2022, with the allowance as a percentage of total loans at **1.14%**[412](index=412&type=chunk)[471](index=471&type=chunk) - Total borrowings increased significantly to **$925.6 million** from **$125.5 million** at year-end 2022, primarily due to a **$670 million** increase in short-term FHLB advances[210](index=210&type=chunk)[237](index=237&type=chunk) Regulatory Capital Ratios (Company, Consolidated) | Ratio | September 30, 2023 | Minimum Requirement | | :--- | :--- | :--- | | Common equity tier 1 capital | 12.1% | 4.5% | | Tier 1 capital | 12.3% | 6.0% | | Total capital | 14.4% | 8.0% | | Tier 1 leverage | 9.8% | 4.0% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=64&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(MD%26A)) Management attributes Q3 2023 results to a challenging interest rate environment, with declining net interest income and margin due to rising funding costs, strong loan growth funded by increased borrowings, higher provision for credit losses, and rising operating expenses, while maintaining strong capital and liquidity Q3 2023 vs Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Net Income (GAAP) | $19.5M | $18.7M | +4.3% | | Diluted EPS (GAAP) | $0.45 | $0.42 | +7.1% | | Operating Income (Non-GAAP) | $21.5M | $27.9M | -22.9% | | FTE Net Interest Income | $92.3M | $93.8M | -1.6% | | Net Interest Margin (FTE) | 3.18% | 3.48% | -30 bps | - The decrease in net interest margin was driven by a **149 basis point** increase in the cost of funding liabilities, which outpaced the **128 basis point** increase in the yield on earning assets[42](index=42&type=chunk)[434](index=434&type=chunk) - Total assets grew by **$477 million** since year-end 2022, primarily from a **$649 million** increase in loans, funded by an **$800 million** increase in borrowings offsetting a **$347 million** decrease in deposits[439](index=439&type=chunk)[452](index=452&type=chunk) - The provision for credit losses was **$8.0 million** in Q3 2023, up from **$3.0 million** in Q3 2022, mainly reflecting growth in the loan portfolio[412](index=412&type=chunk)[435](index=435&type=chunk) - The company's effective tax rate for Q3 2023 was **16.1%**, down from **20.9%** in Q3 2022, due to increased benefits from tax credit investments[450](index=450&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is Interest Rate Risk, with its profile shifting to modestly liability sensitive as of September 30, 2023, where a 100 basis point upward rate shift would decrease net interest income by **1.5%** and economic value of equity by **2.9%** - The company has shifted from a modestly asset-sensitive position at year-end 2022 to a modestly liability-sensitive position as of September 30, 2023[496](index=496&type=chunk) Net Interest Income (NII) Sensitivity Analysis | Parallel Interest Rate Shock (bps) | Estimated % Change in NII (Sep 30, 2023) | Estimated % Change in NII (Dec 31, 2022) | | :--- | :--- | :--- | | +200 | (3.1)% | 1.8% | | +100 | (1.5)% | 0.8% | | -100 | 1.2% | (1.6)% | Economic Value of Equity (EVE) Sensitivity Analysis | Parallel Rate Shock (bps) | Estimated % Change in EVE (Sep 30, 2023) | Estimated % Change in EVE (Dec 31, 2022) | | :--- | :--- | :--- | | +200 | (6.0)% | 0.0% | | +100 | (2.9)% | 0.0% | | -100 | 2.6% | (1.5)% | [Item 4. Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The principal executive and financial officers concluded that the Company's disclosure controls and procedures were effective as of September 30, 2023[13](index=13&type=chunk) - No material changes to the Company's internal control over financial reporting occurred during the third quarter of 2023[489](index=489&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material pending legal proceedings, though two non-material cases are disclosed: a wrongful termination suit proceeding to arbitration and a **$16.0 million** complaint against Pioneer Bank for alleged breaches of loan participation agreements - Management does not believe any pending legal proceedings are material to the Company's financial condition or results of operations[499](index=499&type=chunk) - A wrongful termination complaint by a former employee of subsidiary FCLS was dismissed by the court in favor of compelling arbitration, which is expected in the second half of 2023[9](index=9&type=chunk) - The Bank is in litigation with Pioneer Bank, seeking damages of approximately **$16.0 million** related to alleged breaches of loan participation agreements, with the Company writing down the credit loss in 2019 but recognizing a partial recovery of **$1.7 million** in 2020[14](index=14&type=chunk) [Item 1A. Risk Factors](index=84&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed in this report, with the company referring to those previously detailed in its 2022 Annual Report on Form 10-K and subsequent 10-Q filings - The report directs readers to the risk factors detailed in the Company's 2022 Annual Report on Form 10-K and subsequent 10-Q filings, indicating no material changes or additions in this period[15](index=15&type=chunk)[500](index=500&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q3 2023, the company had no unregistered security sales and repurchased **178,747** shares at an average price of **$20.02**, with **1,687,014** shares remaining available under the **$50 million** repurchase program - No unregistered securities were sold during the three months ended September 30, 2023[10](index=10&type=chunk) Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | July 1-31, 2023 | 7,821 | $20.36 | 1,857,940 | | August 1-31, 2023 | — | — | 1,857,940 | | September 1-30, 2023 | 170,926 | $20.00 | 1,687,014 | | **Total** | **178,747** | **$20.02** | **1,687,014** | - On January 25, 2023, the Board of Directors approved a stock repurchase program authorizing up to **$50 million** in share repurchases through December 31, 2023[17](index=17&type=chunk) [Item 3. Defaults Upon Senior Securities](index=85&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[19](index=19&type=chunk) [Item 4. Mine Safety Disclosures](index=85&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[20](index=20&type=chunk) [Item 5. Other Information](index=85&type=section&id=Item%205.%20Other%20Information) During the third quarter of 2023, none of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or any non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated any Rule 10b5-1(c) trading plans or other non-Rule 10b5-1 trading arrangements during the third quarter of 2023[18](index=18&type=chunk) [Item 6. Exhibits](index=86&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Certificate of Incorporation, Bylaws, CEO and CFO certifications pursuant to the Sarbanes-Oxley Act, and financial statements formatted in Inline XBRL - The exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial statements formatted in Inline XBRL[21](index=21&type=chunk)[24](index=24&type=chunk) [Signatures](index=87&type=section&id=Signatures) The report was duly signed on November 9, 2023, by Nitin J. Mhatre, President and Chief Executive Officer, and R. David Rosato, Senior Executive Vice President and Chief Financial Officer - The report was duly signed on November 9, 2023, by Nitin J. Mhatre, President and Chief Executive Officer, and R. David Rosato, Senior Executive Vice President and Chief Financial Officer[23](index=23&type=chunk)[34](index=34&type=chunk)[504](index=504&type=chunk)

Financial Data and Key Metrics Changes - Operating earnings for Q3 2023 were $21.5 million or $0.50 per fully diluted share, down $0.05 linked quarter and down $0.12 year-over-year [10] - Average loans increased by $161 million or 2% linked quarter, while average deposits increased by $62 million or 1% [11] - Net interest margin (NIM) was 3.18%, down 6 basis points linked quarter and down 30 basis points year-over-year [34] - Net interest income declined by $2.4 million or 3% linked quarter and was down $1.8 million or 2% year-over-year [34] Business Line Data and Key Metrics Changes - Average loan balances showed balanced growth across commercial and consumer loans [7] - Operating noninterest income was up 2% in the quarter and up 7% year-over-year [11] - Deposit-related fees increased by $221,000, while loan and other fees decreased by $310,000 [37] Market Data and Key Metrics Changes - Deposits were stable, up 1% linked quarter on an average balance basis, but down 1% on an end-of-period basis [4] - Noninterest-bearing deposits as a percentage of total average deposits decreased to 26% in Q3 from 27% in Q2 [13] - The deposit cost was 181 basis points, up 30 basis points from the second quarter [36] Company Strategy and Development Direction - The company is focused on rationalizing its real estate footprint, including the consolidation of four branches and the sale of one office building [31] - The company is committed to managing expenses with discipline and transparency, instituting biweekly meetings to review vendor expenses and hiring requests [16] - The company aims to improve its medium-term performance despite the current operating environment presenting headwinds [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the Northeast markets and acknowledged typical banking industry cyclicality issues such as NIM compression [20] - The company is focused on controlling its operational environment through opportunistic hiring and rigorous expense management [21] - Management expects credit costs to increase modestly but significantly lower than during the Global Financial Crisis [43] Other Important Information - The company repurchased $3.9 million of stock at an average cost of $20.01, believing its stock is undervalued [42] - The company’s ESG score remains in the top quartile at the 19th percentile nationally [9] - The company has added a new ROTCE calculation to align its reporting with peers [32] Q&A Session Summary Question: Should we expect more branch consolidations and restructuring charges in coming quarters? - Yes, the company is constantly evaluating opportunities for consolidation while retaining clients and bankers [45] Question: Where would you expect the effective rate to settle out? - The company anticipates a mid single-digit decline in NIM due to competitive pressures around deposits [26] Question: What are your thoughts on growing or shrinking tax credit investments over time? - The company is still working through tax credit investments and will provide more clarity in January [47] Question: What is your outlook on loan growth for the second half of the year? - The company expects to be on the lower end of the $9.2 billion to $9.4 billion target due to a slowdown in pipelines [71] Question: Can you provide updates on the overall office portfolio and market conditions? - The company has not seen early signs of weakness in the office portfolio and is monitoring credit quality closely [110]