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Berkshire Hills Bancorp(BHLB) - 2024 Q4 - Annual Results
BHLBBerkshire Hills Bancorp(BHLB)2025-01-30 16:27

Earnings and Profitability - Fourth quarter operating EPS increased by 3% quarter-over-quarter and 28% year-over-year, reaching 0.60,whilefullyear2024operatingEPSwas0.60, 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,adecreaseof47.519,657,000, a decrease of 47.5% from 37,509,000 in the previous quarter[20] - Operating net income increased to 25,982,000,upfrom25,982,000, 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,withadividendpayoutratioof39.400.18, 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 1,445inQ42023,withannualnetincomedecreasingto1,445 in Q4 2023, with annual net income decreasing to 61,003 from 69,598[26]−BasicearningspershareforQ42024was69,598[26] - Basic earnings per share for Q4 2024 was 0.46, compared to a loss of 0.03inQ42023,whiledilutedearningspersharealsoimprovedto0.03 in Q4 2023, while diluted earnings per share also improved to 0.46 from a loss of 0.03[26]−Netincomefor2024was0.03[26] - Net income for 2024 was 61.003 million, down 12.5% from 69.598millionin2023[45]−Earningspercommonshare,diluted,decreasedto69.598 million in 2023[45] - Earnings per common share, diluted, decreased to 1.43 in 2024 from 1.60in2023[45]RevenueandIncomeSources−TotalnetrevenueforQ42024was1.60 in 2023[45] Revenue and Income Sources - Total net revenue for Q4 2024 was 110,180, up from 80,038inQ42023,withannualrevenueslightlydecreasingto80,038 in Q4 2023, with annual revenue slightly decreasing to 400,000 from 411,829[26]−Totalnon−interestincomeforQ42024was411,829[26] - Total non-interest income for Q4 2024 was 23,325, a significant recovery from a loss of 8,383inQ42023,contributingtoanannualtotalof8,383 in Q4 2023, contributing to an annual total of 48,414 compared to 42,782[26]−Totalnon−interestincomeincreasedto42,782[26] - Total non-interest income increased to 82.110 million in 2024, up 21.0% from 67.839millionin2023[45]−Totaloperatingrevenuefor2024was67.839 million in 2023[45] - Total operating revenue for 2024 was 433.696 million, slightly down from 436.886millionin2023[45]AssetsandLiabilities−Totalassetsreached436.886 million in 2023[45] Assets and Liabilities - Total assets reached 12,273 million, an increase of 5.8% from 11,605millioninthepreviousquarter[20]−TotalassetsasofDecember31,2024,were11,605 million in the previous quarter[20] - Total assets as of December 31, 2024, were 11,596 million, a decrease from 11,862milliononDecember31,2023[30]−Totaldepositsincreasedto11,862 million on December 31, 2023[30] - Total deposits increased to 10,375 million, a significant increase of 8.3% from 9,577millioninthepreviousquarter[20]−Totaldepositsincreasedto9,577 million in the previous quarter[20] - Total deposits increased to 9,659 million, with a total funding liabilities of 10,261million[30]−Totalshareholders′equityincreasedby10,261 million[30] - Total shareholders' equity increased by 97 million, or 9%, to 1.2billion,supportedbyasuccessful1.2 billion, supported by a successful 100 million common stock issuance[15] - The company’s common shareholders' equity stood at 1,095million,upfrom1,095 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 173million,or2173 million, or 2%, to 9.4 billion[3][13] - Total loans increased to 9,385million,up1.99,385 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 115million,upfrom115 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 6,000thousandforthequarter,withanendingbalanceof6,000 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 3,347thousandforthequarter,withanetcharge−offrateof0.143,347 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 984millionin2023[45]−Totaltangibleshareholders′equityattheendoftheperiodroseto984 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]