Berkshire Hills Reports a Solid Second Quarter Net Income of $24.0 million, or $0.57 Per Share

Core Insights - Berkshire Hills Bancorp reported a net income of $24.0 million, or $0.57 per share, for the second quarter of 2024, marking a recovery from a loss in the previous quarter [10][15] - Operating earnings increased to $23.2 million, or $0.55 per share, reflecting a 12% improvement linked quarter due to loan growth, higher fee income, and lower operating expenses [10][15] - The company achieved a net interest margin of 3.20%, up 5 basis points from the prior quarter, driven by loan growth and securities sales [10][15] Financial Performance - Total loans increased by $143 million to $9.23 billion, primarily due to growth in commercial loans [10][15] - Net interest income for the quarter was $88.5 million, slightly up from $88.1 million in the previous quarter [10][15] - Non-interest income totaled $20.1 million, with an increase of $2.8 million linked quarter, largely from gains on SBA loans [10][15] Expense Management - Operating non-interest expenses decreased by $1.1 million to $71.3 million, with reductions in compensation and occupancy costs [10][15] - The efficiency ratio improved to 63.4% from 66.3% in the prior quarter, indicating better cost management [10][15] Asset Quality - The allowance for credit losses on loans increased to 1.22% of total loans, up from 1.18% in the previous quarter [10][15] - Net loan charge-offs were $1.7 million, resulting in an annualized charge-off ratio of 0.07%, down from 0.18% in the prior quarter [10][15] Capital Position - Total shareholders' equity rose by $3 million to $1.01 billion, with tangible book value per share increasing to $23.18 from $22.84 [10][15] - Capital ratios remained strong, with the tangible common equity ratio unchanged at 8.2% [10][15] Corporate Responsibility - Berkshire expanded its Down Payment Assistance Program and engaged over 1,000 employees in volunteer projects, contributing more than 4,600 hours of service [10][15] - The company was recognized by TIME as one of America's Best Mid-Size Companies for 2024, highlighting its commitment to financial performance and sustainability [10][15]