Berkshire Hills Bancorp(BHLB) - 2024 Q4 - Annual Results

Earnings and Profitability - Fourth quarter operating EPS increased by 3% quarter-over-quarter and 28% year-over-year, reaching $0.60, 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, a decrease of 47.5% from $37,509,000 in the previous quarter[20] - Operating net income increased to $25,982,000, 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, 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 $1,445 in Q4 2023, with annual net income decreasing to $61,003 from $69,598[26] - Basic earnings per share for Q4 2024 was $0.46, compared to a loss of $0.03 in Q4 2023, while diluted earnings per share also improved to $0.46 from a loss of $0.03[26] - Net income for 2024 was $61.003 million, down 12.5% from $69.598 million in 2023[45] - Earnings per common share, diluted, decreased to $1.43 in 2024 from $1.60 in 2023[45] Revenue and Income Sources - Total net revenue for Q4 2024 was $110,180, up from $80,038 in Q4 2023, with annual revenue slightly decreasing to $400,000 from $411,829[26] - Total non-interest income for Q4 2024 was $23,325, a significant recovery from a loss of $8,383 in Q4 2023, contributing to an annual total of $48,414 compared to $42,782[26] - Total non-interest income increased to $82.110 million in 2024, up 21.0% from $67.839 million in 2023[45] - Total operating revenue for 2024 was $433.696 million, slightly down from $436.886 million in 2023[45] Assets and Liabilities - Total assets reached $12,273 million, an increase of 5.8% from $11,605 million in the previous quarter[20] - Total assets as of December 31, 2024, were $11,596 million, a decrease from $11,862 million on December 31, 2023[30] - Total deposits increased to $10,375 million, a significant increase of 8.3% from $9,577 million in the previous quarter[20] - Total deposits increased to $9,659 million, with a total funding liabilities of $10,261 million[30] - Total shareholders' equity increased by $97 million, or 9%, to $1.2 billion, supported by a successful $100 million common stock issuance[15] - The company’s common shareholders' equity stood at $1,095 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 $173 million, or 2%, to $9.4 billion[3][13] - Total loans increased to $9,385 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 $115 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 $6,000 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 $3,347 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 $984 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]