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Berkshire Hills Bancorp(BHLB) - 2024 Q3 - Quarterly Report
BHLBBerkshire Hills Bancorp(BHLB)2024-11-12 21:03
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Financial Performance - Net earnings per common share increased to 0.88forthethreemonthsendedSeptember30,2024,comparedto0.88 for the three months ended September 30, 2024, compared to 0.45 for the same period in 2023, representing a 95.6% increase[213]. - Operating net income for the three months ended September 30, 2024, was 24,789thousand,upfrom24,789 thousand, up from 21,516 thousand in the same period last year, reflecting a 10.5% increase[213]. - GAAP total revenue for Q3 2024 was 125.614million,comparedto125.614 million, compared to 107.799 million in Q3 2023, reflecting a year-over-year increase of approximately 16.5%[223]. - Total operating income (non-GAAP) for Q3 2024 was 24.789million,upfrom24.789 million, up from 21.516 million in Q3 2023, marking an increase of about 10.5%[223]. - Net income for Q3 2024 increased by 18million,or9218 million, or 92%, to 38 million, primarily due to a non-operating gain of 16millionfromthesaleoftenbranches[240].−Non−GAAPoperatingearningspersharerose1616 million from the sale of ten branches[240]. - Non-GAAP operating earnings per share rose 16% to 0.58 from 0.50,drivenbyfeeincomegrowth,reducedoperatingexpenses,andlowercreditlossprovisionexpense[230].AssetandLiabilityManagement−Totalassetsdecreasedto0.50, driven by fee income growth, reduced operating expenses, and lower credit loss provision expense[230]. Asset and Liability Management - Total assets decreased to 11,605 million as of September 30, 2024, down from 12,140millionayearearlier,indicatingadeclineof4.412,140 million a year earlier, indicating a decline of 4.4%[213]. - Total liabilities were 10,645 million, down from 10,872millionyear−over−year[216].−TotalaverageassetsasofQ32024were10,872 million year-over-year[216]. - Total average assets as of Q3 2024 were 11.695 billion, slightly down from 11.860billioninthepreviousyear[223].−Totaldepositsdecreasedto11.860 billion in the previous year[223]. - Total deposits decreased to 9,360 million with a net interest margin of 2.42%, compared to 9,630millionand1.819,630 million and 1.81% last year[216]. - Total assets decreased 7% to 11.6 billion from 12.4billionatyear−end2023,reflectinglowercashandequivalentsduetobranchsale[233].EquityandShareholderReturns−Totalshareholders′equityincreasedto12.4 billion at year-end 2023, reflecting lower cash and equivalents due to branch sale[233]. Equity and Shareholder Returns - Total shareholders' equity increased to 1,070 million as of September 30, 2024, compared to 951millionayearearlier,representingagrowthof12.5951 million a year earlier, representing a growth of 12.5%[213]. - The dividend payout ratio was 20.63% for the three months ended September 30, 2024, down from 40.56% in the same period last year, indicating a more conservative approach to dividend distribution[213]. - Book value per share increased by 1.63, or 7%, to 24.90,whiletangiblebookvaluepershareincreasedby24.90, while tangible book value per share increased by 1.71, or 7%, to 24.53[271].LoanandCreditQuality−Totalloansincreasedto24.53[271]. Loan and Credit Quality - Total loans increased to 9,212 million as of September 30, 2024, compared to 8,984millionayearearlier,reflectingagrowthof2.58,984 million a year earlier, reflecting a growth of 2.5%[213]. - The allowance for credit losses was 112 million as of September 30, 2024, up from 103millioninthesameperiodlastyear,indicatingan8.7103 million in the same period last year, indicating an 8.7% increase in provisions for potential loan losses[213]. - Total delinquent and non-performing loans measured 0.53% of loans, the lowest quarterly level in over 15 years[262]. - The yield on total loans was 6.11% in Q3 2024, compared to 5.97% in the final quarter of 2023[258]. Operational Efficiency - The efficiency ratio for Q3 2024 improved to 63.74% from 65.05% in the same quarter last year[223]. - Non-interest expense decreased year-over-year by 5 million, or 6%, for Q3 and by 4million,or24 million, or 2%, for the first nine months[252]. - The efficiency ratio for the first nine months was 64.45% in 2024 compared to 62.65% in 2023, improving to 63.74% in the most recent quarter[242]. Market Strategy and Growth - The company plans to continue focusing on market expansion and new product development to enhance growth opportunities[218]. - Berkshire Hills Bancorp is focusing on expanding its market presence in the Northeast region, targeting a market share increase of EE%[101]. - The company is investing in new technology development, with a budget allocation of FF million for innovative banking solutions[101]. - The company plans to launch a new product line in Q1 2025, aiming to capture a market segment worth $II billion[101]. Risk Management and Compliance - The Company has not reported any material changes in internal control over financial reporting during the last fiscal quarter[303]. - As of September 30, 2024, there were no pending legal proceedings believed to be material to the Company's financial condition[305]. - The Company’s interest rate risk management includes key assumptions such as loan prepayment projections and deposit pricing assumptions, which are subject to periodic review[292].