Berkshire Hills Bancorp(BHLB) - 2024 Q2 - Quarterly Results

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]