Berkshire Hills Bancorp(US:BHLB)2025-10-29 21:17Financial Performance - Beacon Financial Corporation reported a net loss of $(56.3) million, or $(0.64) per basic share, for Q3 2025, compared to net income of $22.0 million in Q2 2025[2]. - The net loss for Q3 2025 was $56,262,000, a decline from a net income of $20,142,000 in Q3 2024, reflecting a negative shift in profitability[33]. - Basic earnings per share for Q3 2025 was $(0.64), a decline from $0.25 in Q2 2025, indicating a negative trend in earnings performance[38]. - Reported pretax loss for Q3 2025 was $77,895,000 compared to a pretax income of $26,748,000 in Q3 2024[52]. - Return on average assets for Q3 2025 was (1.48)%, compared to 0.70% in Q3 2024[52]. Revenue and Income - Operating earnings (non-GAAP) for Q3 2025 were $38.5 million, or $0.44 per diluted share, excluding one-time merger costs of $129.8 million[3]. - Net interest income increased by $43.9 million to $132.6 million in Q3 2025, with a net interest margin of 3.72%[15]. - Non-interest income rose to $12.3 million in Q3 2025, up from $6.0 million in Q2 2025, driven by increased deposit and wealth management fees[16]. - Total interest and dividend income for Q3 2025 reached $216,161,000, a 40.3% increase from $154,072,000 in Q2 2025[38]. - Non-interest income totaled $12,345,000 in Q3 2025, up from $5,970,000 in Q2 2025, marking a 106.4% increase[38]. Assets and Liabilities - Total assets at September 30, 2025, were $22.8 billion, with $12.1 billion in assets assumed from the merger[7]. - Total loans and leases reached $18.2 billion, including $9.1 billion assumed from the merger, with a decrease of $419.4 million from Q2 2025[8]. - Total assets reached $22,821,439,000 in Q3 2025, up from $11,676,721,000 in Q3 2024, showing a growth of 95.1%[33]. - Total deposits rose to $18,904,063 thousand, compared to $8,961,202 thousand in the previous quarter, indicating a growth of 110.4%[36]. - Stockholders' equity reached $2,414,996 thousand, compared to $1,254,171 thousand in the previous quarter, representing an increase of 92.2%[36]. Expenses and Loss Provisions - The provision for credit losses was $87.5 million in Q3 2025, significantly higher than $7.0 million in Q2 2025, reflecting merger-related accounting adjustments[17]. - Non-interest expense increased to $135.3 million in Q3 2025, primarily due to one-time merger and restructuring expenses of $51.9 million[21]. - Total non-interest expense for Q3 2025 was $135,318,000, significantly higher than $58,061,000 in Q2 2025, reflecting a 133.3% increase[38]. - Provision for credit losses on loans surged to $87,496,000 in Q3 2025, compared to only $6,997,000 in Q2 2025, indicating increased risk management measures[38]. Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.45% in Q3 2025 from 0.62% in Q3 2024, indicating improved asset quality[33]. - Total nonperforming assets increased to $101,990,000 in Q3 2025, up from $63,596,000 in Q2 2025, representing a 60% increase[42]. - Nonperforming loans and leases as a percentage of total loans and leases decreased to 0.54% in Q3 2025 from 0.65% in Q2 2025[42]. - The allowance for loan and lease losses was $253,735,000, representing 1.39% of total loans and leases, compared to 1.31% in Q3 2024[33]. Stockholder Information - The Company declared a quarterly dividend of $0.3225 per share, payable on November 24, 2025[24]. - Book value per share increased to $28.78 in Q3 2025 from $13.81 in Q3 2024, reflecting a significant increase in shareholder equity[33]. - Stock price at the end of Q3 2025 was $23.71, up from $10.09 in Q3 2024, indicating strong market performance[33]. - Tangible book value per common share increased to $22.20 in Q3 2025 from $10.89 in Q3 2024, representing a growth of 103.5%[54].