PITTSFIELD, Mass., July 24, 2012 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NASDAQ: BHLB) reported $0.47 in second quarter core earnings per share,
a 34% increase over second quarter 2011 core earnings of
$0.35 per share. For the first
half of the year, Berkshire
reported $0.92 in core earnings per
share in 2012, which was a 40% increase over 2011 first half core
results of $0.66 per share.
This growth resulted from positive operating leverage related to
ongoing business expansion. Earnings in both years were also
affected by net non-core charges which were primarily merger
related. Including non-core charges, second quarter GAAP
earnings per share totaled $0.37 in
2012, compared to $0.11 in
2011. For the first half of the year, GAAP earnings per share
totaled $0.65 in 2012, compared to
$0.31 in 2011.
(Logo:
http://photos.prnewswire.com/prnh/20120131/NE44966LOGO )
SECOND QUARTER FINANCIAL HIGHLIGHTS
- 34% increase in core earnings per share, compared to second
quarter of 2011
- 4% increase in core earnings per share, compared to the prior
quarter
- 12% increase in total assets
- 16% revenue growth, compared to the prior quarter
- 9% annualized organic commercial loan growth
- 5% annualized organic growth in non-maturity deposits
- 3.70% net interest margin
- 0.60% non-performing assets/total assets
- 0.25% annualized net loan charge-offs/average loans
- 0.94% core ROA (0.73% GAAP ROA)
- 59% efficiency ratio
Berkshire President and CEO, Michael P.
Daly, stated, "Our earnings momentum remains strong due to
our growth initiatives and financial disciplines. This has
generated positive operating leverage from higher revenue and
controlled expense management. We produced 14% organic loan
growth and 6% organic deposit growth in the first half of the year,
which contributed to the 16% increase in our second quarter
revenue. We carefully managed our business mix to improve our
profitability as reflected in our key metrics. We are
generating tangible equity from core operations at a $2.12 annualized per share pace as we generate
capital to provide shareholder return and to support ongoing growth
and expansion. We are on plan to achieve the earnings and
profitability growth that we have targeted for the year."
Mr. Daly continued, "During the second quarter, we completed the
acquisition of CBT – The Connecticut Bank and Trust Company and
added the operations of Greenpark Mortgage. These
partnerships were completed on time and on plan, and we are moving
forward with our integration plans. On May 31, we announced our agreement to acquire
Beacon Federal Bancorp headquartered in East Syracuse, New York. We expect to
complete this merger in the fourth quarter of this year. This
acquisition is expected to produce $0.22 in core EPS accretion in 2013. It
complements our growing business volumes from the teams we have
recruited in Central and Eastern
Massachusetts and from our new branches in the Albany area, including new offices in
Colonie and North Greenbush, and a relocation in
Delmar. Berkshire was
recently named among the Globe 100 list of the top-performing
companies in Massachusetts
published by the Boston Globe. We were also named among the
U.S. Top 100 in the 2012 Investor Perception Survey published by IR
Magazine in association with Bloomberg. We're proud that our
active community involvement included nearly $700 thousand in philanthropic contributions from
our foundations in the first half of 2012. Our team is
delivering solid results for all of our constituencies as we
strengthen our franchise in our four state market area."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of
$0.17 per share to shareholders of
record at the close of business on August 9,
2012, payable on August 23,
2012. This dividend provides a 3.1% yield based on the
$22.06 average closing price of
Berkshire's common stock during
the second quarter of 2012.
FINANCIAL CONDITION
Berkshire maintained positive
organic growth momentum in targeted business lines in the second
quarter, while managing other balances in connection with the
acquisitions of CBT – The Connecticut Bank and Trust Company on
April 20, 2012 and the operations of
Greenpark Mortgage on April 30,
2012. Total assets increased by 12% to $4.5 billion from $4.0
billion during the quarter, including approximately
$0.3 billion related to CBT and
$0.1 billion related to
Greenpark. Most major categories of assets, liabilities, and
equity increased as a result of these acquisitions. Including
the acquired balances, overall measures of asset quality, capital,
and liquidity remained strong.
Total loans increased by $327
million (11%) during the second quarter, including
$207 million acquired with CBT.
Organic commercial loan growth was $37
million (9% annualized) primarily due to growth in
commercial business loans, including asset based loans.
Berkshire continues to build
business volume in Central
Massachusetts and New York
where it has been expanding its lending offices and branches.
Including the new Greenpark operations, residential mortgage
originations increased and secondary market mortgage sales also
grew. The Bank added a managed volume to the mortgage
portfolio while continuing to maintain an asset sensitive interest
rate risk profile. Total loans increased at a 14% organic
growth rate for the first half of the year.
Second quarter asset quality metrics remained favorable.
At midyear, non-performing assets were 0.60% of total assets,
compared to 0.65% at the start of the year. Annualized net
loan charge-offs measured 0.25% of average loans for the second
quarter and 0.24% for the first half of the year. Accruing
delinquent loans were 0.90% of total loans at midyear, compared to
0.89% at the start of the year. Under accounting standards
for business combinations, the CBT loan loss allowance was not
transferred to Berkshire along
with the CBT loans. Estimated losses inherent in CBT's loan
portfolio were recorded as charges against the fair value of CBT
loans on the merger date. As a result, the ratio of the
allowance to total loans decreased to 0.98% from 1.07% during the
most recent quarter. The ratio of the allowance to
nonperforming loans measured 126% at quarter-end.
Berkshire managed its funding
sources to lessen the interest costs related to acquisitions, while
also continuing ongoing promotions related to organic expansion.
Total deposits increased by $226
million (7%) during the second quarter, including
$211 million acquired with
CBT. Berkshire posted
5% annualized organic growth in non-maturity account balances in
the most recent quarter, with 9% annualized growth for the first
half of the year. Berkshire
continues to promote lower cost relationship oriented accounts in
all of its markets, along with commercial deposits associated with
its increased originations of commercial business loans and small
business loans. The Company managed an organic decrease in
time accounts in the most recent quarter as higher cost certificate
accounts rolled off. Low cost overnight borrowings were
utilized to fund organic loan growth and the increase in mortgage
loans held for sale related to the acquired Greenpark
operations.
Berkshire issued 965 thousand
shares for the CBT acquisition at an average value of $22.80 based on the closing price of Berkshire's stock prior to the
acquisition. Total shareholders' equity increased by
$26 million primarily due to the
benefit of this stock issuance. Total intangible assets
increased by $18 million as a result
of the accounting for business combinations related to CBT and
Greenpark. Tangible book value per share was $15.49 at midyear compared to $15.60 at the start of the year, including the
merger related impacts. From its second quarter core
operations, Berkshire generated
$2.12 per share annualized in
tangible common equity based on its core earnings and the
amortization of intangible assets. Total book value per
share was $26.31 at midyear, compared
to $26.17 at the start of the
year. The ratio of tangible equity/assets decreased to 8.0%
from 8.8% during the first half of the year including the impact of
the CBT and Greenpark acquisitions. The ratio of total
equity/assets was 12.9% and 13.9% at midyear and the start of the
year, respectively.
RESULTS OF OPERATIONS
Berkshire posted strong core
growth in revenue, earnings, and earnings per share for the second
quarter and first half of the year. Most core profitability
measures also increased as a result of the positive operating
leverage produced by the revenue growth. Core return on
assets was 0.94% in the second quarter, while the core return on
equity improved to 7.1%. Net income reflected non-core
charges which were primarily merger related. Including
non-core items, the second quarter return on assets and return on
equity were 0.73% and 5.6% respectively.
Second quarter results in 2012 included the operations of CBT
and Greenpark since the dates of their acquisitions, together with
the per share impact of shares issued in the CBT acquisition.
Most categories of income and expense increased due to these
acquisitions, and year-to-year increases include the impact of the
Rome and Legacy acquisitions in
2011. As a result, the following discussion primarily
compares the second quarter of 2012 to the prior quarter.
Total net revenue increased by $6.4
million (16%) in the second quarter of 2012, compared to the
prior quarter. Revenue included the contribution from CBT,
which produced $2.1 million in
revenue for a comparable period in the prior quarter. Revenue
also included $2.4 million in revenue
related to the acquired Greenpark operations. Total revenue
per share increased by 12% to $8.68
annualized. Revenue growth included 13% growth in net
interest income and 25% growth in non-interest income. The
growth in net interest income included the benefit of higher
average earning assets and an increase in the net interest margin
to 3.70% from 3.62% in the prior quarter. As previously
noted, Berkshire managed its
funding to reduce interest costs; the cost of funds decreased to
0.82% in the second quarter from 0.89% in the prior quarter.
The yield on earning assets included the benefit of prepayments on
accretable commercial loan yield. Non-interest income
included a $2.2 million increase in
loan related revenue due to the contribution of the new Greenpark
operations, which are stated net of direct costs of loan
originations. Non-interest income contributed 26% of total
net revenue in the most recent quarter, compared to 24% in the
prior quarter. Berkshire is
pursuing the development of fee income sources to diversify
revenues and increase wallet share in its markets. The second
quarter provision for loan losses increased to $2.3 million from $2.0
million in the prior quarter. Net loan charge-offs
totaled $2.0 million and $1.8 million in these periods,
respectively.
Second quarter non-interest expense totaled $34.2 million, including $4.1 million in non-core charges. Core
non-interest expense totaled $30.1
million, which was an increase of $3.8 million (14%) over the prior quarter.
This includes the impact of the core CBT operating expenses, which
totaled $2.0 million for a comparable
period in the prior quarter, along with expenses related to the
Greenpark operations. Berkshire is proceeding with its plans to
achieve 35% cost savings related to the CBT merger, which are
expected to be fully realized in upcoming quarters. The
efficiency ratio remained unchanged at 59% during the most recent
quarter, while the Company absorbed the costs of infrastructure
development, de novo branches opened in New York, and other costs related to its
strategic initiatives. The second quarter non-core expenses
totaled $2.2 million after tax and
were primarily due to transaction costs and other charges related
to the CBT merger. The income tax rate for continuing
operations was 27% in the second quarter, compared to 26% in the
prior quarter.
CONFERENCE CALL
Berkshire will conduct a
conference call/webcast at 10:00 A.M.
eastern time on Wednesday, July 25,
2012 to discuss the results for the quarter and guidance
about expected future results. Participants should dial-in to the
call a few minutes before it begins. Information about the
conference call follows:
Dial-in: 866-843-0890
Elite Entry Number: 5288558
Webcast: www.berkshirebank.com (investor relations
link)
A telephone replay of the call will be available through
August 1, 2012 by calling
877-344-7529 and entering access code: 10015785. The webcast and a
podcast will be available at Berkshire's website above for an extended
period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank -
America's Most Exciting Bank(SM). Berkshire has $4.5
billion in assets and 68 full service branch offices in
Massachusetts, New York, Connecticut, and Vermont providing personal and business
banking, insurance, and wealth management services. Berkshire
Bank provides 100% deposit insurance protection for all deposit
accounts, regardless of amount, based on a combination of FDIC
insurance and the Depositors Insurance Fund (DIF). For more
information, visit www.berkshirebank.com or call
800-773-5601.
Berkshire has a pending
agreement to acquire Beacon Federal Bancorp which, through its bank
subsidiary, Beacon Federal, offers banking and related financial
services to both individual and commercial customers. Beacon is
headquartered with a full-service branch in East Syracuse, New York, along with six other
full-service branches in East
Syracuse, Marcy and
Rome, New York, Smartt and
Smyrna, Tennessee, and
Chelmsford, Massachusetts.
Beacon's stock trades under the symbol "BFED" and, at March 31, 2012, Beacon reported assets totaling
$1.0 billion. For more
information, visit www.beaconfederal.com or call 888-256-3800.
FORWARD LOOKING STATEMENTS
This document may contain forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995.
There are several factors that could cause actual results to differ
significantly from expectations described in the forward-looking
statements. For a discussion of such factors, please see
Berkshire's most recent reports on
Forms 10-K and 10-Q filed with the Securities and Exchange
Commission and available on the SEC's website at www.sec.gov.
Berkshire does not undertake any
obligation to update forward-looking statements made in this
document.
ADDITIONAL INFORMATION FOR STOCKHOLDERS
In connection with the proposed merger, Berkshire has filed with the Securities and
Exchange Commission ("SEC") a Registration Statement on Form S-4
that includes a Proxy Statement of Beacon and a Prospectus of
Berkshire, as well as other
relevant documents concerning the proposed transaction.
Stockholders are urged to read the Registration Statement and the
Proxy Statement/Prospectus regarding the merger, as well as any
amendments or supplements to those documents, because they will
contain important information. A free copy of the Proxy
Statement/Prospectus, as well as other filings containing
information about Berkshire Hills and Beacon, may be obtained at
the SEC's Internet site (http://www.sec.gov). You will also be able
to obtain these documents, free of charge, from Berkshire Hills
Bancorp at www.berkshirebank.com under the tab "Investor
Relations" or from Beacon Federal Bancorp by accessing Beacon's
website at www.beaconfederal.com and selecting the "Investor
Relations" link.
Berkshire and Beacon and
certain of their directors and executive officers may be deemed to
be participants in the solicitation of proxies from the
stockholders of Beacon Bancorp in connection with the proposed
merger. Information about the directors and executive officers of
Berkshire Hills Bancorp is set forth in the proxy statement for
Berkshire Hills Bancorp's 2012 annual meeting of stockholders, as
filed with the SEC on Schedule 14A on March
30, 2012. Information about the directors and executive
officers of Beacon is set forth in the proxy statement for Beacon
Federal Bancorp's 2012 annual meeting of stockholders, as filed
with the SEC on Schedule 14A on April 16,
2012. Additional information regarding the interests of
those participants and other persons who may be deemed participants
in the transaction may be obtained by reading the Proxy
Statement/Prospectus regarding the proposed merger when it becomes
available. Free copies of this document may be obtained as
described in the preceding paragraph.
NON-GAAP FINANCIAL MEASURES
This document contains certain non-GAAP financial measures in
addition to results presented in accordance with Generally Accepted
Accounting Principles ("GAAP"). These non-GAAP measures
provide supplemental perspectives on operating results, performance
trends, and financial condition. They are not a substitute
for GAAP measures; they should be read and used in conjunction with
the Company's GAAP financial information. A reconciliation of
non-GAAP financial measures to GAAP measures is included in the
accompanying financial tables. In all cases, it should be
understood that non-GAAP per share measures do not depict amounts
that accrue directly to the benefit of shareholders. The
Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude amounts which the Company
views as unrelated to its normalized operations, including merger
costs, restructuring costs, and systems conversion costs.
Similarly, the efficiency ratio is also adjusted for these non-core
items and for tax preference items. The Company also adjusts
certain equity related measures to exclude intangible assets due to
the importance of these measures to the investment community.
Non-GAAP expense adjustments are primarily related to charges
related to merger and acquisition activity. These charges
consist primarily of severance/benefit related expenses, contract
termination costs, and professional fees. There are
additionally non-GAAP adjustments related to non-recurring
securities gains, discontinued operations, the disposition of
excess properties, and core systems conversion costs. Tax
adjustments are based on an analysis of tax accruals for core
income and for GAAP income, with the net difference included with
non-core items and reflecting the timing impacts of tax expense
estimates.
BERKSHIRE HILLS BANCORP, INC.
|
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED -
(F-1)
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
|
|
(In
thousands)
|
2012
|
2012
|
2011
|
|
|
Assets
|
|
|
|
|
|
Cash and
due from banks
|
$
44,696
|
$
34,117
|
$
46,713
|
|
|
Short-term
investments
|
21,790
|
11,186
|
28,646
|
|
|
|
|
|
|
|
|
Trading
security
|
17,365
|
16,847
|
17,395
|
|
|
Securities
available for sale, at fair value
|
471,368
|
423,580
|
419,756
|
|
|
Securities
held to maturity, at amortized cost
|
41,822
|
59,533
|
58,912
|
|
|
Federal
Home Loan Bank stock and other restricted securities
|
37,174
|
35,282
|
37,118
|
|
|
Total
securities
|
567,729
|
535,242
|
533,181
|
|
|
|
|
|
|
|
|
Loans held
for sale
|
59,280
|
-
|
1,455
|
|
|
|
|
|
|
|
|
Residential mortgages
|
1,193,447
|
1,100,663
|
1,020,435
|
|
|
Commercial
mortgages
|
1,281,058
|
1,147,455
|
1,156,241
|
|
|
Commercial
business loans
|
519,684
|
429,627
|
410,292
|
|
|
Consumer
loans
|
371,430
|
361,255
|
369,602
|
|
|
Total
loans
|
3,365,619
|
3,039,000
|
2,956,570
|
|
|
Less:
Allowance for loan losses
|
(32,868)
|
(32,657)
|
(32,444)
|
|
|
Net
loans
|
3,332,751
|
3,006,343
|
2,924,126
|
|
|
|
|
|
|
|
|
Premises
and equipment, net
|
68,569
|
61,661
|
60,139
|
|
|
Other real
estate owned
|
827
|
439
|
1,900
|
|
|
Goodwill
|
220,360
|
202,397
|
202,391
|
|
|
Other
intangible assets
|
19,505
|
19,662
|
20,973
|
|
|
Cash
surrender value of bank-owned life insurance
|
76,290
|
75,652
|
75,009
|
|
|
Other
assets
|
95,926
|
82,628
|
91,309
|
|
|
Assets
from discontinued operations
|
-
|
-
|
5,362
|
|
|
Total
assets
|
$
4,507,723
|
$
4,029,327
|
$
3,991,204
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
Demand
deposits
|
$
535,472
|
$
450,497
|
$
447,414
|
|
|
NOW
deposits
|
298,236
|
294,411
|
272,204
|
|
|
Money
market deposits
|
1,158,562
|
1,089,742
|
1,055,306
|
|
|
Savings
deposits
|
371,668
|
365,289
|
350,517
|
|
|
Total
non-maturity deposits
|
2,363,938
|
2,199,939
|
2,125,441
|
|
|
Time
deposits
|
1,045,767
|
984,228
|
975,734
|
|
|
Total
deposits
|
3,409,705
|
3,184,167
|
3,101,175
|
|
|
|
|
|
|
|
|
Borrowings
|
452,527
|
236,240
|
221,938
|
|
|
Junior
subordinated debentures
|
15,464
|
15,464
|
15,464
|
|
|
Total
borrowings
|
467,991
|
251,704
|
237,402
|
|
|
|
|
|
|
|
|
Other
liabilities
|
46,757
|
36,622
|
43,758
|
|
|
Liabilities from discontinued operations
|
-
|
-
|
55,504
|
|
|
Total
liabilities
|
3,924,453
|
3,472,493
|
3,437,839
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
583,270
|
556,834
|
553,365
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
4,507,723
|
$
4,029,327
|
$
3,991,204
|
|
|
|
|
|
|
|
|
(1) At
year end 2011, four branches were held for sale as discontinued
operations and sold as of January 20, 2012.
|
(2) The
Company acquired The Connecticut Bank and Trust Company ("CBT") on
April 20, 2012 with total assets of $0.3 billion.
|
(3) The
Company purchased certain assets and assumed certain limited
liabilities of Greenpark Mortgage Corporation
("Greenpark") on
April 30, 2012 with total assets of $0.1 billion.
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
CONSOLIDATED LOAN & DEPOSIT ANALYSIS -
UNAUDITED - (F-2)
|
|
LOAN
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic annualized growth %
|
(Dollars in millions)
|
|
June 30,
2012
Balance
|
|
Impact of CBT
Merger Balance
|
|
March 31,
2012
Balance
|
|
December 31,
2011
Balance
|
|
Quarter ended
June 30, 2012
|
Year to date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
residential mortgages
|
|
$
1,194
|
|
$
7
|
|
$
1,101
|
|
$
1,020
|
|
31
|
%
|
33
|
%
|
Total
commercial loans
|
|
1,801
|
|
187
|
|
1,577
|
|
1,567
|
|
9
|
|
6
|
|
Total
consumer loans
|
|
371
|
|
13
|
|
361
|
|
370
|
|
(3)
|
|
(6)
|
|
Total
loans
|
|
$
3,366
|
|
$
207
|
|
$
3,039
|
|
$
2,957
|
|
16
|
%
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
annualized growth %
|
(Dollars in millions)
|
|
June
30,
2012
Balance
|
|
Impact of
CBT Merger Balance
|
|
March
31,
2012
Balance
|
|
December
31,
2011
Balance
|
|
Quarter
ended
June 30, 2012
|
Year to
date
|
|
Demand/NOW
|
|
$
834
|
|
$
77
|
|
$
745
|
|
$
719
|
|
6
|
%
|
11
|
%
|
Money
market
|
|
1,158
|
|
60
|
|
1,090
|
|
1,055
|
|
3
|
|
8
|
|
Savings
|
|
372
|
|
2
|
|
365
|
|
351
|
|
5
|
|
11
|
|
Total
non-maturity deposits
|
|
2,364
|
|
139
|
|
2,200
|
|
2,125
|
|
5
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
deposits
|
|
1,046
|
|
72
|
|
984
|
|
976
|
|
(4)
|
|
(0)
|
|
Total
deposits
|
|
$
3,410
|
|
$
211
|
|
$
3,184
|
|
$
3,101
|
|
2
|
%
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Organic annualized growth rates are calculated on organic growth
only, which excludes the impact of mergers and
divestitures.
|
|
|
(2)
Quarterly data may not sum to annualized data due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED -
(F-3)
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands, except per share data)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Interest and dividend
income
|
|
|
|
|
|
|
|
Loans
|
$
38,787
|
|
$
28,607
|
|
$
73,838
|
|
$
53,213
|
Securities
and other
|
3,869
|
|
3,446
|
|
7,490
|
|
6,753
|
Total
interest and dividend income
|
42,656
|
|
32,053
|
|
81,328
|
|
59,966
|
Interest expense
|
|
|
|
|
|
|
|
Deposits
|
5,482
|
|
5,768
|
|
10,984
|
|
11,483
|
Borrowings
and junior subordinated debentures
|
2,121
|
|
2,084
|
|
4,146
|
|
4,136
|
Total
interest expense
|
7,603
|
|
7,852
|
|
15,130
|
|
15,619
|
Net
interest income
|
35,053
|
|
24,201
|
|
66,198
|
|
44,347
|
Non-interest income
|
|
|
|
|
|
|
|
Loan
related fees
|
3,524
|
|
780
|
|
4,897
|
|
1,371
|
Deposit
related fees
|
3,963
|
|
3,366
|
|
7,463
|
|
5,907
|
Insurance
commissions and fees
|
2,768
|
|
2,782
|
|
5,514
|
|
6,512
|
Wealth
management fees
|
1,757
|
|
1,389
|
|
3,657
|
|
2,581
|
Total fee
income
|
12,012
|
|
8,317
|
|
21,531
|
|
16,371
|
Other
|
269
|
|
(277)
|
|
510
|
|
(197)
|
Gain on
sale of securities, net
|
7
|
|
6
|
|
7
|
|
6
|
Non-recurring gain
|
-
|
|
124
|
|
42
|
|
124
|
Total
non-interest income
|
12,288
|
|
8,170
|
|
22,090
|
|
16,304
|
Total
net revenue
|
47,341
|
|
32,371
|
|
88,288
|
|
60,651
|
Provision for loan
losses
|
2,250
|
|
1,500
|
|
4,250
|
|
3,100
|
Non-interest expense
|
|
|
|
|
|
|
|
Compensation and benefits
|
15,638
|
|
12,027
|
|
29,227
|
|
23,178
|
Occupancy
and equipment
|
4,490
|
|
3,546
|
|
8,885
|
|
6,981
|
Technology
and communications
|
2,258
|
|
1,531
|
|
4,216
|
|
2,997
|
Marketing
and promotion
|
778
|
|
341
|
|
1,129
|
|
622
|
Professional services
|
1,493
|
|
1,216
|
|
2,858
|
|
2,148
|
FDIC
premiums and assessments
|
870
|
|
741
|
|
1,551
|
|
1,768
|
Other real
estate owned and foreclosures
|
(6)
|
|
700
|
|
173
|
|
1,309
|
Amortization of intangible
assets
|
1,357
|
|
935
|
|
2,668
|
|
1,651
|
Nonrecurring and merger related
expenses
|
4,085
|
|
5,451
|
|
8,308
|
|
7,159
|
Other
|
3,221
|
|
2,135
|
|
5,363
|
|
3,999
|
Total
non-interest expense
|
34,184
|
|
28,623
|
|
64,378
|
|
51,812
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income
taxes
|
10,907
|
|
2,248
|
|
19,660
|
|
5,739
|
Income tax
expense
|
2,921
|
|
371
|
|
5,193
|
|
1,027
|
Net
income from continuing operations
|
7,986
|
|
1,877
|
|
14,467
|
|
4,712
|
Loss from
discontinued operations before income taxes
|
|
|
|
|
|
|
|
(including gain on disposal
of $63)
|
-
|
|
-
|
|
(261)
|
|
-
|
Income tax
expense
|
-
|
|
-
|
|
376
|
|
-
|
Net
loss from discontinued operations
|
-
|
|
-
|
|
(637)
|
|
-
|
Net
income
|
$
7,986
|
|
$
1,877
|
|
$
13,830
|
|
$
4,712
|
|
|
|
|
|
|
|
|
Basic
and diluted earnings per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.37
|
|
$
0.11
|
|
$
0.68
|
|
$
0.31
|
Discontinued operations
|
-
|
|
-
|
|
(0.03)
|
|
-
|
Total
basic and diluted earnings per share
|
$
0.37
|
|
$
0.11
|
|
$
0.65
|
|
$
0.31
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
21,742
|
|
16,580
|
|
21,349
|
|
15,269
|
Diluted
|
21,806
|
|
16,601
|
|
21,434
|
|
15,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
Company acquired Rome Bancorp on April 1, 2011. The income
statement includes operations from that date.
|
(2) The
Company acquired Legacy Bancorp on July 21, 2011. The income
statement includes operations from that date.
|
(3) The
Company acquired CBT on April 20, 2012. The income statement
includes operations from that date.
|
|
(4) The
Company purchased certain assets and assumed certain limited
liabilities of Greenpark on April 30, 2012. The income
statement includes operations
from that date.
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED -
(F-4)
|
|
|
|
Quarters
Ended
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(In
thousands, except per share data)
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
Interest and dividend
income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
38,787
|
|
$
35,051
|
|
$
35,466
|
|
$
35,719
|
|
$
28,607
|
|
Securities
and other
|
3,869
|
|
3,621
|
|
3,562
|
|
3,547
|
|
3,446
|
|
Total
interest and dividend income
|
42,656
|
|
38,672
|
|
39,028
|
|
39,266
|
|
32,053
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
5,482
|
|
5,502
|
|
5,792
|
|
6,097
|
|
5,768
|
|
Borrowings
and junior subordinated debentures
|
2,121
|
|
2,025
|
|
2,101
|
|
2,131
|
|
2,084
|
|
Total
interest expense
|
7,603
|
|
7,527
|
|
7,893
|
|
8,228
|
|
7,852
|
|
Net
interest income
|
35,053
|
|
31,145
|
|
31,135
|
|
31,038
|
|
24,201
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
Loan
related fees
|
3,524
|
|
1,373
|
|
856
|
|
934
|
|
780
|
|
Deposit
related fees
|
3,963
|
|
3,500
|
|
3,848
|
|
3,885
|
|
3,366
|
|
Insurance
commissions and fees
|
2,768
|
|
2,746
|
|
2,145
|
|
2,431
|
|
2,782
|
|
Wealth
management fees
|
1,757
|
|
1,900
|
|
1,650
|
|
1,607
|
|
1,389
|
|
Total fee
income
|
12,012
|
|
9,519
|
|
8,499
|
|
8,857
|
|
8,317
|
|
Other
|
269
|
|
241
|
|
318
|
|
(158)
|
|
(277)
|
|
Gain on
sale of securities, net
|
7
|
|
-
|
|
8
|
|
-
|
|
6
|
|
Non-recurring gain
|
-
|
|
42
|
|
-
|
|
1,975
|
|
124
|
|
Total
non-interest income
|
12,288
|
|
9,802
|
|
8,825
|
|
10,674
|
|
8,170
|
|
Total
net revenue
|
47,341
|
|
40,947
|
|
39,960
|
|
41,712
|
|
32,371
|
|
Provision for loan
losses
|
2,250
|
|
2,000
|
|
2,263
|
|
2,200
|
|
1,500
|
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
15,638
|
|
13,589
|
|
13,172
|
|
13,195
|
|
12,027
|
|
Occupancy
and equipment
|
4,490
|
|
4,395
|
|
4,063
|
|
3,883
|
|
3,546
|
|
Technology
and communications
|
2,258
|
|
1,958
|
|
2,464
|
|
1,996
|
|
1,531
|
|
Marketing
and promotion
|
778
|
|
351
|
|
419
|
|
498
|
|
341
|
|
Professional services
|
1,493
|
|
1,365
|
|
1,146
|
|
1,375
|
|
1,216
|
|
FDIC
premiums and assessments
|
870
|
|
681
|
|
542
|
|
923
|
|
741
|
|
Other real
estate owned and foreclosures
|
(6)
|
|
179
|
|
153
|
|
541
|
|
700
|
|
Amortization of intangible
assets
|
1,357
|
|
1,311
|
|
1,314
|
|
1,271
|
|
935
|
|
Nonrecurring and merger related
expenses
|
4,085
|
|
4,223
|
|
3,678
|
|
9,091
|
|
5,451
|
|
Other
|
3,221
|
|
2,142
|
|
2,579
|
|
1,937
|
|
2,135
|
|
Total
non-interest expense
|
34,184
|
|
30,194
|
|
29,530
|
|
34,710
|
|
28,623
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income
taxes
|
10,907
|
|
8,753
|
|
8,167
|
|
4,802
|
|
2,248
|
|
Income tax
expense
|
2,921
|
|
2,272
|
|
609
|
|
405
|
|
371
|
|
Net
income from continuing operations
|
7,986
|
|
6,481
|
|
7,558
|
|
4,397
|
|
1,877
|
|
(Loss)
gain from discontinued operations before income
taxes
|
|
|
|
|
|
|
|
|
|
|
(including gain
on disposals)
|
-
|
|
(261)
|
|
4,692
|
|
(8)
|
|
-
|
|
Income tax
expense (benefit)
|
-
|
|
376
|
|
3,773
|
|
(3)
|
|
-
|
|
Net
(loss) gain from discontinued operations
|
-
|
|
(637)
|
|
919
|
|
(5)
|
|
-
|
|
Net
income
|
$
7,986
|
|
$
5,844
|
|
$
8,477
|
|
$
4,392
|
|
$
1,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.37
|
|
$
0.31
|
|
$
0.36
|
|
$
0.22
|
|
$
0.11
|
|
Discontinued operations
|
-
|
|
(0.03)
|
|
0.04
|
|
-
|
|
-
|
|
Total
basic and diluted earnings per share
|
$
0.37
|
|
$
0.28
|
|
$
0.40
|
|
$
0.22
|
|
$
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
21,742
|
|
20,955
|
|
20,930
|
|
20,009
|
|
16,580
|
|
Diluted
|
21,806
|
|
21,062
|
|
21,043
|
|
20,105
|
|
16,601
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
notes on pages F-1 and F-3 regarding merger, acquisitions and
divestiture.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
ASSET
QUALITY ANALYSIS - (F-5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for
the Quarters Ended
|
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
(Dollars in thousands)
|
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages
|
|
|
$
8,525
|
|
$
8,281
|
|
$
7,010
|
|
$
4,750
|
|
$
2,811
|
|
Commercial
mortgages
|
|
|
15,336
|
|
12,151
|
|
14,280
|
|
13,721
|
|
9,600
|
|
Commercial
business loans
|
|
|
1,047
|
|
1,029
|
|
990
|
|
1,399
|
|
1,764
|
|
Consumer
loans
|
|
|
1,209
|
|
1,411
|
|
1,954
|
|
1,834
|
|
862
|
|
Total
non-accruing loans
|
|
|
26,117
|
|
22,872
|
|
24,234
|
|
21,704
|
|
15,037
|
|
Other real
estate owned
|
|
|
827
|
|
439
|
|
1,900
|
|
2,200
|
|
1,700
|
|
Total
non-performing assets
|
|
|
$
26,944
|
|
$
23,311
|
|
$
26,134
|
|
$
23,904
|
|
$
16,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-accruing loans/total loans
|
|
|
0.78%
|
|
0.75%
|
|
0.82%
|
|
0.72%
|
|
0.61%
|
|
Total
non-performing assets/total assets
|
|
|
0.60%
|
|
0.58%
|
|
0.65%
|
|
0.58%
|
|
0.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
|
$
32,657
|
|
$
32,444
|
|
$
32,181
|
|
$
31,919
|
|
$
31,898
|
|
Charged-off loans
|
|
|
(2,102)
|
|
(1,923)
|
|
(2,313)
|
|
(2,061)
|
|
(1,564)
|
|
Recoveries
on charged-off loans
|
|
|
63
|
|
136
|
|
313
|
|
123
|
|
85
|
|
Net loans
charged-off
|
|
|
(2,039)
|
|
(1,787)
|
|
(2,000)
|
|
(1,938)
|
|
(1,479)
|
|
Provision
for loan losses
|
|
|
2,250
|
|
2,000
|
|
2,263
|
|
2,200
|
|
1,500
|
|
Balance at
end of period
|
|
|
$
32,868
|
|
$
32,657
|
|
$
32,444
|
|
$
32,181
|
|
$
31,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses/total loans
|
|
|
0.98%
|
|
1.07%
|
|
1.10%
|
|
1.07%
|
|
1.30%
|
|
Allowance
for loan losses/non-accruing loans
|
|
|
126%
|
|
143%
|
|
134%
|
|
148%
|
|
212%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages
|
|
|
$
(886)
|
|
$
(381)
|
|
$
(449)
|
|
$
(292)
|
|
$
(225)
|
|
Commercial
mortgages
|
|
|
(378)
|
|
(1,116)
|
|
(1,198)
|
|
(1,099)
|
|
(597)
|
|
Commercial
business loans
|
|
|
(2)
|
|
(3)
|
|
(244)
|
|
(463)
|
|
(435)
|
|
Home
equity
|
|
|
(707)
|
|
(247)
|
|
(90)
|
|
7
|
|
(68)
|
|
Other
consumer
|
|
|
(66)
|
|
(40)
|
|
(19)
|
|
(91)
|
|
(154)
|
|
Total,
net
|
|
|
$
(2,039)
|
|
$
(1,787)
|
|
$
(2,000)
|
|
$
(1,938)
|
|
$
(1,479)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (QTD annualized)/average loans
|
|
0.25%
|
|
0.24%
|
|
0.27%
|
|
0.27%
|
|
0.24%
|
|
Net
charge-offs (YTD annualized)/average loans
|
|
0.24%
|
|
0.24%
|
|
0.27%
|
|
0.27%
|
|
0.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND NON-ACCRUING LOANS/TOTAL
LOANS
|
|
|
|
|
|
|
|
|
|
30-89 Days
delinquent
|
|
|
0.41%
|
|
0.55%
|
|
0.55%
|
|
0.79%
|
|
0.50%
|
|
90+ Days
delinquent and still accruing
|
|
|
0.49%
|
|
0.40%
|
|
0.34%
|
|
0.22%
|
|
0.12%
|
|
Total
accruing delinquent loans
|
|
|
0.90%
|
|
0.95%
|
|
0.89%
|
|
1.01%
|
|
0.62%
|
|
Non-accruing loans
|
|
|
0.78%
|
|
0.75%
|
|
0.82%
|
|
0.72%
|
|
0.61%
|
|
Total
delinquent and non-accruing loans
|
|
|
1.68%
|
|
1.70%
|
|
1.71%
|
|
1.73%
|
|
1.23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amounts related to loans and deposits of discontinued operations
have not been reclassified on the above schedule,
|
|
|
|
|
although they are
reclassified out of loans and deposits on the balance sheet and
income statement.
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
|
|
|
SELECTED FINANCIAL HIGHLIGHTS -
(F-6)
|
|
|
|
At or for
the Quarters Ended
|
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
|
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER
SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
Core
earnings, diluted
|
$
0.47
|
|
$
0.45
|
|
$
0.44
|
|
$
0.43
|
|
$
0.35
|
|
|
Net
earnings, diluted
|
0.37
|
|
0.28
|
|
0.40
|
|
0.22
|
|
0.11
|
|
|
Tangible
book value
|
15.49
|
|
15.81
|
|
15.60
|
|
14.86
|
|
15.07
|
|
|
Total book
value
|
26.31
|
|
26.28
|
|
26.17
|
|
25.87
|
|
26.61
|
|
|
Market
price at period end
|
22.00
|
|
22.92
|
|
22.19
|
|
18.47
|
|
22.39
|
|
|
Dividends
|
0.17
|
|
0.17
|
|
0.17
|
|
0.16
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Core
return on assets
|
0.94
|
%
|
0.94
|
%
|
0.93
|
%
|
0.89
|
%
|
0.72
|
%
|
|
Return on
assets
|
0.73
|
|
0.59
|
|
0.85
|
|
0.45
|
|
0.23
|
|
|
Core
return on equity
|
7.13
|
|
6.80
|
|
6.74
|
|
6.50
|
|
5.15
|
|
|
Return on
equity
|
5.58
|
|
4.23
|
|
6.16
|
|
3.31
|
|
1.67
|
|
|
Net
interest margin, fully taxable equivalent
|
3.70
|
|
3.62
|
|
3.61
|
|
3.74
|
|
3.52
|
|
|
Fee
income/Net interest and fee income
|
25.52
|
|
23.44
|
|
21.44
|
|
22.20
|
|
25.58
|
|
|
Efficiency
ratio
|
59.29
|
|
59.27
|
|
59.44
|
|
59.62
|
|
66.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH
|
|
|
|
|
|
|
|
|
|
|
|
Total
commercial loans, year-to-date (annualized)
|
30
|
%
|
3
|
%
|
29
|
%
|
38
|
%
|
20
|
%
|
|
Total
loans, year-to-date (annualized)
|
27
|
|
11
|
|
38
|
|
54
|
|
29
|
|
|
Total
deposits, year-to-date (annualized)
|
16
|
|
11
|
|
41
|
|
63
|
|
26
|
|
|
Total net
revenues, year-to-date, compared to prior year
|
45
|
|
43
|
|
33
|
|
28
|
|
15
|
|
|
Earnings
per share, year-to-date, compared to prior year
|
110
|
|
40
|
|
(2)
|
|
(26)
|
|
(37)
|
|
|
Core
earnings per share, year-to-date, compared to prior year
|
39
|
|
50
|
|
53
|
|
50
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
4,508
|
|
$
4,029
|
|
$
3,991
|
|
$
4,087
|
|
$
3,226
|
|
|
Total
loans
|
3,366
|
|
3,039
|
|
2,957
|
|
3,003
|
|
2,452
|
|
|
Allowance
for loan losses
|
33
|
|
33
|
|
32
|
|
32
|
|
32
|
|
|
Total
intangible assets
|
240
|
|
222
|
|
223
|
|
233
|
|
193
|
|
|
Total
deposits
|
3,410
|
|
3,184
|
|
3,101
|
|
3,249
|
|
2,486
|
|
|
Total
stockholders' equity
|
583
|
|
557
|
|
553
|
|
547
|
|
445
|
|
|
Total core
income
|
10.2
|
|
9.4
|
|
9.3
|
|
8.6
|
|
5.8
|
|
|
Total net
income
|
8.0
|
|
5.8
|
|
8.5
|
|
4.4
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (current quarter annualized)/average loans
|
0.25
|
%
|
0.24
|
%
|
0.27
|
%
|
0.27
|
%
|
0.24
|
%
|
|
Non-performing assets/total assets
|
0.60
|
|
0.58
|
|
0.65
|
|
0.58
|
|
0.52
|
|
|
Allowance
for loan losses/total loans
|
0.98
|
|
1.07
|
|
1.10
|
|
1.07
|
|
1.30
|
|
|
Allowance
for loan losses/non-accruing loans
|
126
|
|
143
|
|
134
|
|
148
|
|
212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to total assets
|
12.94
|
%
|
13.82
|
%
|
13.86
|
%
|
13.38
|
%
|
13.80
|
%
|
|
Tangible
stockholders' equity to tangible assets
|
8.04
|
|
8.80
|
|
8.76
|
|
8.15
|
|
8.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reconciliation of Non-GAAP financial measures,
including all references to core and tangible amounts, appear on
pages F-9 and F-10.
|
|
|
Tangible
assets are total assets less total intangible assets.
|
|
|
|
|
|
|
|
|
|
|
(2)
|
All
performance ratios are annualized and are based on average balance
sheet amounts, where applicable.
|
|
|
|
|
|
(3)
|
Amounts
related to loans and deposits of discontinued operations have not
been reclassified on the above schedule,
|
|
|
|
|
although
they are reclassified out of loans and deposits on the balance
sheet and income statement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
AVERAGE
BALANCES - (F-7)
|
|
|
|
Quarters
Ended
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
(In
thousands)
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
Assets
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
Residential mortgages
|
$
1,167,007
|
|
$
1,057,903
|
|
$
1,039,025
|
|
$
1,004,950
|
|
$
802,460
|
Commercial
mortgages
|
1,250,741
|
|
1,153,690
|
|
1,166,989
|
|
1,140,691
|
|
973,557
|
Commercial
business loans
|
490,983
|
|
412,237
|
|
392,542
|
|
383,059
|
|
333,700
|
Consumer
loans
|
375,179
|
|
366,035
|
|
376,385
|
|
376,754
|
|
311,057
|
Total
loans
|
3,283,910
|
|
2,989,865
|
|
2,974,941
|
|
2,905,454
|
|
2,420,774
|
Securities
|
549,479
|
|
525,109
|
|
515,128
|
|
474,435
|
|
405,670
|
Short-term
investments and loans held for sale
|
47,302
|
|
15,107
|
|
20,748
|
|
34,293
|
|
4,688
|
Total
earning assets
|
3,880,691
|
|
3,530,081
|
|
3,510,817
|
|
3,414,182
|
|
2,831,132
|
Goodwill
and other intangible assets
|
235,961
|
|
223,930
|
|
230,864
|
|
229,594
|
|
196,292
|
Other
assets
|
235,623
|
|
235,909
|
|
247,376
|
|
226,757
|
|
186,785
|
Total
assets
|
$
4,352,275
|
|
$
3,989,920
|
|
$
3,989,057
|
|
$
3,870,533
|
|
$
3,214,209
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
NOW
|
$
297,431
|
|
$
272,239
|
|
$
274,041
|
|
$
256,662
|
|
$
229,980
|
Money
market
|
1,136,161
|
|
1,084,948
|
|
953,162
|
|
853,128
|
|
778,055
|
Savings
|
370,182
|
|
359,859
|
|
446,672
|
|
476,230
|
|
317,232
|
Time
|
1,038,662
|
|
983,696
|
|
1,028,817
|
|
1,029,555
|
|
809,768
|
Total
interest-bearing deposits
|
2,842,436
|
|
2,700,742
|
|
2,702,692
|
|
2,615,575
|
|
2,135,035
|
Borrowings
and debentures
|
398,650
|
|
257,389
|
|
248,611
|
|
253,018
|
|
269,665
|
Total
interest-bearing liabilities
|
3,241,086
|
|
2,958,131
|
|
2,951,303
|
|
2,868,593
|
|
2,404,700
|
Non-interest-bearing demand deposits
|
498,972
|
|
439,015
|
|
448,952
|
|
432,381
|
|
334,171
|
Other
liabilities
|
39,665
|
|
40,039
|
|
38,110
|
|
38,431
|
|
25,268
|
Total
liabilities
|
3,779,723
|
|
3,437,185
|
|
3,438,365
|
|
3,339,405
|
|
2,764,139
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
572,552
|
|
552,735
|
|
550,692
|
|
531,128
|
|
450,070
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
4,352,275
|
|
$
3,989,920
|
|
$
3,989,057
|
|
$
3,870,533
|
|
$
3,214,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
|
|
|
|
|
|
|
|
|
|
Total
non-maturity deposits
|
$
2,302,746
|
|
$
2,156,061
|
|
$
2,122,827
|
|
$
2,018,401
|
|
$
1,659,438
|
Total
deposits
|
3,341,408
|
|
3,139,757
|
|
3,151,644
|
|
3,047,956
|
|
2,469,206
|
Fully
taxable equivalent income adj.
|
638
|
|
669
|
|
674
|
|
673
|
|
675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Average balances for securities available-for-sale are based on
amortized cost. Total loans include non-accruing
loans.
|
|
|
|
(2)
Amounts related to loans and deposits of discontinued operations
have not been reclassified on the above schedule,
|
|
|
although they are
reclassified out of loans and deposits on the balance sheet and
income statement.
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
|
AVERAGE
YIELDS (Fully Taxable Equivalent - Annualized) -
(F-8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages
|
4.64
|
%
|
4.63
|
%
|
4.68
|
%
|
4.82
|
%
|
4.97
|
%
|
|
Commercial
loans
|
5.00
|
|
4.89
|
|
4.98
|
|
5.27
|
|
4.78
|
|
|
Consumer
loans
|
3.93
|
|
3.98
|
|
4.03
|
|
4.17
|
|
3.97
|
|
|
Total
loans
|
4.75
|
|
4.72
|
|
4.74
|
|
4.97
|
|
4.74
|
|
|
Securities
|
3.30
|
|
3.29
|
|
3.26
|
|
3.53
|
|
4.07
|
|
|
Short-term
investments and loans held for sale
|
0.06
|
|
0.07
|
|
0.14
|
|
0.03
|
|
0.19
|
|
|
Total
earning assets
|
4.49
|
|
4.48
|
|
4.49
|
|
4.72
|
|
4.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
0.30
|
|
0.26
|
|
0.39
|
|
0.49
|
|
0.31
|
|
|
Money
Market
|
0.49
|
|
0.55
|
|
0.62
|
|
0.66
|
|
0.69
|
|
|
Savings
|
0.18
|
|
0.20
|
|
0.19
|
|
0.18
|
|
0.26
|
|
|
Time
|
1.44
|
|
1.51
|
|
1.52
|
|
1.67
|
|
2.00
|
|
|
Total
interest-bearing deposits
|
0.78
|
|
0.82
|
|
0.87
|
|
0.95
|
|
1.08
|
|
|
Borrowings
and debentures
|
2.14
|
|
3.16
|
|
3.35
|
|
3.34
|
|
3.10
|
|
|
Total
interest-bearing liabilities
|
0.95
|
|
1.02
|
|
1.06
|
|
1.16
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest spread
|
3.54
|
|
3.46
|
|
3.43
|
|
3.56
|
|
3.33
|
|
|
Net
interest margin
|
3.70
|
|
3.62
|
|
3.61
|
|
3.74
|
|
3.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
funds
|
0.82
|
|
0.89
|
|
0.92
|
|
1.01
|
|
1.15
|
|
|
Cost of
deposits
|
0.66
|
|
0.71
|
|
0.73
|
|
0.82
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost
of funds includes all deposits and borrowings.
|
|
|
|
|
|
|
|
(2)
Amounts related to loans and deposits of discontinued operations
have not been reclassified on the above schedule,
|
|
|
although they are
reclassified out of loans and deposits on the balance sheet and
income statement.
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES -
(F-9)
|
|
|
|
|
|
|
|
|
|
At or for
the Quarters Ended
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(Dollars in thousands)
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
Net
income
|
|
$
7,986
|
|
$
5,844
|
|
$
8,477
|
|
$
4,392
|
|
$
1,877
|
|
Adj: Gain
on sale of securities, net
|
|
(7)
|
|
-
|
|
(8)
|
|
-
|
|
(6)
|
|
Adj:
Other non-recurring gain
|
|
-
|
|
(42)
|
|
-
|
|
(1,975)
|
|
(124)
|
|
Plus:
Nonrecurring and merger related expense
|
|
4,085
|
|
4,223
|
|
3,678
|
|
9,091
|
|
5,451
|
|
Adj:
Income taxes
|
|
(1,853)
|
|
(1,255)
|
|
(1,947)
|
|
(2,884)
|
|
(1,400)
|
|
Adj: Net
income (loss) from discontinued operations
|
-
|
|
637
|
|
(919)
|
|
5
|
|
-
|
|
Total core
income
|
(A)
|
$
10,211
|
|
$
9,407
|
|
$
9,281
|
|
$
8,629
|
|
$
5,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest income
|
|
$
12,288
|
|
$
9,878
|
|
$
8,825
|
|
$
10,766
|
|
$
8,170
|
|
Adj: Gain
on sale of securities, net
|
|
(7)
|
|
-
|
|
(8)
|
|
-
|
|
(6)
|
|
Adj:
Other non-recurring gain
|
|
-
|
|
(42)
|
|
-
|
|
(1,975)
|
|
(124)
|
|
Total core
non-interest
income
|
|
12,281
|
|
9,836
|
|
8,817
|
|
8,791
|
|
8,040
|
|
Net
interest income
|
|
35,053
|
|
31,138
|
|
31,135
|
|
31,551
|
|
24,201
|
|
Total core
revenue
|
|
$
47,334
|
|
$
40,974
|
|
$
39,952
|
|
$
40,342
|
|
$
32,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest expense
|
|
$
34,184
|
|
$
30,524
|
|
$
29,533
|
|
$
35,320
|
|
$
28,623
|
|
Less:
Merger related expense
|
|
(4,085)
|
|
(4,223)
|
|
(3,678)
|
|
(9,091)
|
|
(5,451)
|
|
Core
non-interest
expense
|
|
30,099
|
|
26,301
|
|
25,855
|
|
26,229
|
|
23,172
|
|
Less:
Amortization of intangible assets
|
|
(1,357)
|
|
(1,318)
|
|
(1,314)
|
|
(1,382)
|
|
(935)
|
|
Total core
tangible non-interest
expense
|
|
$
28,742
|
|
$
24,983
|
|
$
24,541
|
|
$
24,847
|
|
$
22,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Total
average
assets
|
(B)
|
$
4,352
|
|
$
3,990
|
|
$
3,989
|
|
$
3,871
|
|
$
3,214
|
|
Total
average stockholders'
equity
|
(C)
|
573
|
|
553
|
|
551
|
|
531
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity, period-end
|
|
583
|
|
557
|
|
553
|
|
547
|
|
445
|
|
Less: Intangible assets, period-end
|
|
(240)
|
|
(222)
|
|
(223)
|
|
(233)
|
|
(193)
|
|
Total
tangible stockholders' equity,
period-end
|
(D)
|
$
343
|
|
$
335
|
|
$
330
|
|
$
314
|
|
$
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
shares outstanding, period-end
(thousands)
|
(E)
|
22,169
|
|
21,191
|
|
21,147
|
|
21,134
|
|
16,721
|
|
Average
diluted shares outstanding (thousands)
|
(F)
|
21,806
|
|
21,062
|
|
21,043
|
|
20,105
|
|
16,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
earnings per share, diluted
|
(A/F)
|
$
0.47
|
|
$
0.45
|
|
$
0.44
|
|
$
0.43
|
|
$
0.35
|
|
Tangible
book value per share, period-end
|
(D/E)
|
$
15.49
|
|
$
15.81
|
|
$
15.60
|
|
$
14.86
|
|
$
15.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
return (annualized) on assets
|
(A/B)
|
0.94
|
%
|
0.94
|
%
|
0.93
|
%
|
0.89
|
%
|
0.72
|
%
|
Core
return (annualized) on equity
|
(A/C)
|
7.13
|
|
6.80
|
|
6.74
|
|
6.50
|
|
5.15
|
|
Efficiency
ratio (1)
|
|
59.29
|
|
59.27
|
|
59.44
|
|
59.62
|
|
66.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary data
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit
benefit of tax shelter investments
|
|
$
505
|
|
$
505
|
|
$
664
|
|
$
664
|
|
$
664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Efficiency ratio is computed by dividing total core tangible
non-interest expense by the sum of total net interest income on a
fully
|
|
taxable equivalent
basis and total core non-interest income adjusted to include tax
credit benefit of tax shelter investments.
The
|
|
Company uses this non-GAAP
measure, which is used widely in the banking industry, to provide
important information regarding
|
|
its operational
efficiency.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Ratios
are annualized and based on average balance sheet amounts, where
applicable.
|
|
|
|
(3)
Quarterly data may not sum to year-to-date data due to
rounding.
|
|
|
|
|
|
(4)
Amounts related to loans and deposits of discontinued operations
have not been reclassified on the above schedule,
|
|
|
although they are
reclassified out of loans and deposits on the balance sheet and
income statement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BERKSHIRE HILLS BANCORP, INC.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES -
(F-10)
|
|
|
|
|
|
|
|
|
|
At or for
the Six Months Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
(Dollars in thousands)
|
|
2012
|
|
2011
|
|
Net income
(loss)
|
|
$
13,830
|
|
$
4,712
|
|
Adj: Gain
on sale of securities, net
|
|
(7)
|
|
(6)
|
|
Adj:
Other non-recurring gain
|
|
(42)
|
|
(124)
|
|
Plus:
Nonrecurring and merger related expense
|
|
8,308
|
|
7,159
|
|
Adj:
Income taxes
|
|
(3,108)
|
|
(1,716)
|
|
Adj: Net
income (loss) from discontinued operations
|
|
637
|
|
-
|
|
Total core
income
|
(A)
|
$
19,618
|
|
$
10,025
|
|
Plus:
Amortization of intangible assets
|
|
2,675
|
|
1,651
|
|
Total
tangible core income
|
(B)
|
$
22,293
|
|
$
11,676
|
|
|
|
|
|
|
|
Total
non-interest income
|
|
$
22,166
|
|
$
16,501
|
|
Adj: Gain
on sale of securities, net
|
|
(7)
|
|
(6)
|
|
Adj:
Other non-recurring gain
|
|
(42)
|
|
(124)
|
|
Total core
non-interest
income
|
|
22,117
|
|
16,371
|
|
Net
interest income
|
|
66,191
|
|
44,347
|
|
Total core
revenue
|
|
$
88,308
|
|
$
60,718
|
|
|
|
|
|
|
|
Total
non-interest expense
|
|
$
64,708
|
|
$
51,812
|
|
Less:
Merger related expense
|
|
(8,308)
|
|
(7,159)
|
|
Core
non-interest
expense
|
|
56,400
|
|
44,653
|
|
Less:
Amortization of intangible assets
|
|
(2,675)
|
|
(1,651)
|
|
Total core
tangible non-interest
expense
|
|
$
53,725
|
|
$
43,002
|
|
|
|
|
|
|
|
(Dollars in millions, except per share
data)
|
|
|
|
|
|
Total
average
assets
|
(B)
|
$
4,352
|
|
$
3,045
|
|
Total
average stockholders'
equity
|
(C)
|
$
573
|
|
$
421
|
|
|
|
|
|
|
|
Total
stockholders' equity, period-end
|
|
$
583
|
|
$
445
|
|
Less:
Intangible assets, period-end
|
|
(240)
|
|
(193)
|
|
Total
tangible stockholders' equity,
period-end
|
(D)
|
$
343
|
|
$
252
|
|
|
|
|
|
|
|
Total
common shares outstanding, period-end
(thousands)
|
(E)
|
22,169
|
|
16,721
|
|
Average
diluted common shares outstanding (thousands)
|
(F)
|
21,434
|
|
15,299
|
|
|
|
|
|
|
|
Core
earnings per common share, diluted
|
(A/F)
|
$
0.92
|
|
$
0.66
|
|
Tangible
book value per common share, period-end
|
(D/E)
|
$
15.47
|
|
$
15.07
|
|
|
|
|
|
|
|
Core
return (annualized) on assets
|
(A/B)
|
1.02
|
%
|
0.77
|
%
|
Core
return (annualized) on equity
|
(A/C)
|
7.78
|
|
5.55
|
|
Efficiency
ratio (1)
|
|
59.28
|
|
68.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Efficiency ratio is computed by dividing total core tangible core
non-interest expense by the sum of total net interest income on a
fully taxable equivalent basis and total core
non-interest income adjusted to include tax credit benefit of tax
shelter investments. The Company uses this non-GAAP measure, which is
used widely in the banking industry, to provide important
information regarding its operational efficiency.
|
|
(2) Ratios
are annualized and based on average balance sheet amounts, where
applicable.
|
(3)
Quarterly data may not sum to year-to-date data due to
rounding.
|
|
(4)
Amounts related to loans and deposits of discontinued operations
have not been reclassified on the above
schedule, although they
are reclassified out of loans and deposits on the balance sheet and
income statement.
|
CONTACTS
Investor Relations Contact
David Gonci
Investor Relations Officer
413-281-1973
Media Contact
Elizabeth Mach
AVP, Marketing Officer
413-445-8390
SOURCE Berkshire Hills Bancorp