Berkshire Hills Bancorp(US:BHLB)2024-02-27 16:00Loan Portfolio - The total loan portfolio amounts to $9,039.686 million, with significant segments including Commercial Real Estate Non-Owner Occupied at $2,606.409 million and Residential Real Estate at $2,760.312 million [167]. - The Bank's allowance for credit losses on loans is $105.357 million, with the highest allocation to Commercial Real Estate Non-Owner Occupied at $38.221 million, representing 28.8% of that loan category [175]. - The Bank's construction loans have a maximum loan-to-value limit of 85%, with a focus on mitigating credit risk through presale or preleasing requirements [161]. Credit Risk Management - The Bank's commercial real estate portfolio is under close monitoring, particularly for loans maturing in the next five years, focusing on debt service coverage and lease expirations [169]. - The Company has heightened monitoring of its 25 largest borrower relationships, particularly in the commercial real estate sector, adhering to federal regulatory guidelines [170]. - In 2023, the net charge-offs to average loans for Commercial and Industrial loans was 0.17%, while for Consumer Other loans it was 0.10% [173]. Interest Rate Sensitivity - The Company aims to support net interest margin and net interest income over entire interest rate cycles, managing interest rate risk through simulations of net interest income and equity at risk [865]. - The Bank's commercial and industrial loans are commonly structured as variable rate loans, making them sensitive to the rising interest rate environment [163]. Mortgage Originations - The majority of residential mortgages originated in 2022 were jumbo mortgages, exceeding government-sponsored enterprise guidelines [165]. - The Bank is a preferred SBA lender, with its 44 Business Capital team being one of the top 20 bank originators of SBA 7A loans in the U.S. [164].