Berkshire Hills Bancorp (BHLB) Tops Q1 EPS by 4c

Berkshire Hills Bancorp (NYSE: BHLB) reported Q1 EPS of $0.26, $0.04 better than the analyst estimate of $0.22.

• 33% increase in total non-interest income excluding gains/(losses)
• 13% decrease in GAAP income; 14% increase in adjusted income (non-GAAP measure)
• 2.62% net interest margin, stable for last four quarters
• 35% reduction in provision for credit losses on loans
• 42% reduction in annualized net loan charge-offs to 0.51% of loans from 0.80%
• 86% decrease in COVID-19 loan modifications compared to June 30, 2020
• 26% reduction in wholesale funding to 7% of assets
• $23.05 book value per share; $22.39 tangible book value per share (non-GAAP measure)

CEO Nitin Mhatre stated, "Berkshire's operating results improved in the first quarter, driven primarily by higher loan-related fees and revenues. The quarter also benefited from growth in demand deposits and the paydown of higher cost wholesale funding. This increase in our lending and deposit activities reflected the benefit of our engagement with our customers in processing government lending and fiscal relief to support further economic recovery in our markets from pandemic conditions. We also consolidated nine of our branch offices during the quarter as part of our branch optimization plan. This resulted in restructuring charges which reduced our GAAP results."

Mr. Mhatre continued, "Public health and the economic outlook improved in our footprint during the quarter. Key measures of loan performance improved, resulting in reductions in net loan charge-offs, nonperforming loans, and loans with COVID-19 related modifications. Our loan loss provision decreased quarter-over-quarter, contributing to our improved operating results."

Mr. Mhatre concluded, "During the quarter we announced key appointments to further strengthen the Company, including welcoming Subhadeep Basu to the position of SEVP/Chief Financial Officer, and Kevin Conn, as SVP/Investor Relations and Corporate Development. We announced other senior hires supporting our financial planning and our diversity, equity, and inclusion program. We also recently recruited new senior hires in our growing asset based lending and private banking business lines and added to our business banking team. Consistent with our longstanding emphasis on diversity and replenishment, we are nominating two new directors to our board. Our management team and board are focused on the development of our transformational strategic plan, which we plan to announce on May 18, 2021. This plan will make our purpose-driven community-dedicated bank better and stronger, faster; with the goal of enhancing results for all stakeholders."

For earnings history and earnings-related data on Berkshire Hills Bancorp (BHLB) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Outlook Therapeutics (OTLK) Misses Q3 EPS by 9c
• SanDisk upgraded at JPMorgan after investor day; shares climb