Berkshire Hills Bancorp(US:BHLB)2025-07-24 13:00Financial Performance - Berkshire Hills Bancorp reported operating net income of $31.6 million, a 14% increase quarter-over-quarter (QoQ) and a 36% increase year-over-year (YoY)[7] - Operating earnings per share (EPS) reached $0.69, up 15% QoQ and 25% YoY[7] - Operating non-interest expenses decreased to $66.7 million, a 2% decrease QoQ and a 7% decrease YoY; the efficiency ratio improved to 56.7%[7] - The company achieved positive operating leverage, with a 5% increase QoQ and an 11% increase YoY[7] - Return on tangible common equity (ROTCE) was 10.76%, an increase of 110 basis points (bps) QoQ and 111 bps YoY[7] Balance Sheet Strength - The ratio of tangible common equity to tangible assets (TCE/TA) stood at 10.1%, up 24 bps QoQ and 194 bps YoY[7] - Average deposits decreased slightly by 0.3% QoQ but increased by 6% YoY, while end-of-period (EoP) deposits increased by 1% QoQ and 4% YoY[7] - Average loans increased by 1% QoQ and 4% YoY, with EoP loan growth of 1% QoQ and 3% YoY; the average loan-to-deposit ratio was 97%[7] Strategic Initiatives & Merger - Digital deposits have gained traction, exceeding $100 million program-to-date[7] - Berkshire Bank was recognized as one of America's Best Mid-Size Companies 2025 by TIME magazine[7] - The merger with Brookline Bancorp is progressing, with shareholder approval obtained in May 2025 and an anticipated closing in the second half of 2025; the partnership aims to create a $24 billion Northeast franchise[7, 8] - The merger is expected to yield cost savings of 12.6% of the combined company's expense base and significant earnings per share accretion (40% GAAP | 23% cash in 2026)[9]