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30.01.2017 22:10:00
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Berkshire Hills Reports Record Annual Earnings; Dividend Increased
PITTSFIELD, Mass., Jan. 30, 2017 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) reported record earnings of $59 million in 2016, an increase of 18% over the prior year. Earnings grew due to positive operating leverage from business expansion and improved efficiency. Fourth quarter 2016 results included the operations of First Choice Bank from the date of its acquisition on December 2.
Fourth quarter 2016 GAAP earnings per share totaled $0.32 and were net of non-core charges (after-tax) totaling $0.24 per share, which were primarily related to merger- related costs. Core earnings per share totaled $0.56 during the quarter. Core earnings is a non-GAAP measure excluding non-core items viewed as not related to normalized operations. EPS results included the impact of 4.4 million shares issued as merger consideration to First Choice Bank shareholders.
FOURTH QUARTER FINANCIAL HIGHLIGHTS (comparisons are to prior quarter unless otherwise stated).
- $9.2 billion in total period-end assets, including $1.1 billion added with the First Choice acquisition
- 8% increase in total loans
- 15% increase in total deposits
- 17% increase in equity
- 9% increase in fee income
- 0.24% non-performing assets/assets
- 0.21% net loan charge-offs/average loans
CEO Michael Daly stated, "The final quarter of the year was very strong and included the addition of $1.1 billion in assets from the acquisition of First Choice Bank in the Princeton, New Jersey area on December 2. This acquisition was completed on time and on plan, and positions Berkshire for higher revenue and earnings in 2017. Ongoing business activity remained solid. Our fourth quarter momentum contributed to a year of record earnings."
Mr. Daly continued, "Berkshire is entering 2017 well-positioned for the expanded business opportunities before us. We continue to pursue our goals of enhancing profitability and strengthening our franchise. Our announcement of a 5% dividend increase at this time reflects our positive outlook for future operations. We improved our balance sheet fundamentals and overall infrastructure and controls in 2016. This supports current operations and provides a strong foundation to support future opportunities."
DIVIDEND INCREASED
The Board of Directors voted to increase the quarterly cash dividend by 5% to $0.21 per share, effective with the next payment to shareholders of record at the close of business on February 16, 2017 and payable on March 2, 2017. The dividend equates to a 2.6% annualized yield based on the $32.16 average closing price of Berkshire's common stock during the fourth quarter of 2016.
FINANCIAL CONDITION
Total assets increased in the most recent quarter by $1.2 billion, or 16%, to $9.2 billion including $1.1 billion in assets related to the acquisition of First Choice Bank. Most categories of assets and liabilities increased as a result of the merger, including 8% loan growth and 15% deposit growth. Excluding acquired First Choice loans, organic loan growth was 5% annualized for the quarter and was spread among most major loan categories, including 17% in commercial and industrial loans. The Company adjusted its loan and deposit mix strategies during the quarter while integrating the acquired First Choice balances. Organic growth of transaction accounts measured 7% for the quarter. The organic decrease in total deposits included the planned run-off of certain higher costing First Choice balances after the merger date. With the benefit of the acquired First Choice deposits, the ratio of loans/deposits improved to 99% at year-end. The ratio of equity/assets improved to 11.9% and the ratio of tangible equity/assets remained unchanged at 7.7%. Book value per share increased to $30.65 and tangible book value per share increased to $18.81. Tangible equity/assets and tangible book value are non-GAAP financial measures. Including the impact of purchase accounting, the ratio of problem assets/assets improved to 0.24% and the ratio of charge-offs to average loans improved to 0.21% for the quarter.
RESULTS OF OPERATIONS
GAAP earnings decreased in the most recent quarter compared to the linked quarter and the fourth quarter of the prior year due primarily to the merger-related charges recorded for the First Choice acquisition. GAAP earnings per share were $0.32 in the most recent quarter. Core earnings measured $0.56 per share. Total revenue and expense included the impact of the acquired First Choice operations beginning on December 2. Most categories of revenue and expense increased including these acquired operations.
Fourth quarter net interest income increased by 2% over the prior quarter. The fourth quarter 2016 net interest margin measured 3.19%. Purchased loan accretion totaled $1.9 million in the most recent quarter, compared to $2.2 million in the prior quarter. Excluding the impact of purchased loan accretion, the margin measured 3.09% compared to 3.13% in the prior quarter. The change in the margin included the impact of the lower margin First Choice balances.
Total fee income increased by 9% compared to the prior quarter. Non-interest income is net of charges for the amortization of tax credit related investments. These charges totaled $4.4 million in the most recent quarter, compared to $1.5 million in the prior quarter. These charges are more than offset by credits to net income tax expense. Tax credit related investments contributed $0.02 in net earnings per share in the fourth quarter, compared to $0.01 in the prior quarter and $0.04 in the fourth quarter of 2015.
Fourth quarter non-interest expense increased over the prior quarter due primarily to the non-core charges related to the First Choice Bank acquisition. Merger and restructuring charges totaled $11.6 million and $2.2 million in these two periods respectively. Non-core expense is a non-GAAP measure that excludes costs not viewed as related to normalized operations. Core non-interest expense increased by 5% between these two periods including the new First Choice operations. Full time equivalent staff increased to 1,731 positions at quarter-end, compared to 1,208 positions at the start of the quarter, including 505 positions added with the First Choice operations. The efficiency ratio (a non-GAAP financial measure) increased to 59.1% due to the change in business mix with First Choice operations. The effective tax rate decreased to 3% due to the lower pretax income resulting from the merger charges. The effective tax rate on core income decreased to 21% in the most recent quarter from 30% in the prior quarter due to additional tax credit related investments that became operational during the period.
CONFERENCE CALL
Berkshire will conduct a conference call/webcast at 10:00 a.m. eastern time on Tuesday, January 31, 2017 to discuss the results for the quarter and provide guidance about expected future results. Participants are encouraged to pre-register for the conference call using the following link: http://dpregister.com/10098880. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the call. Participants may pre-register at any time prior to the call, and will immediately receive simple instructions via email. Interested persons may reach the registration link and access the webcast by logging in through the investor section of Berkshire's website at http://ir.berkshirebank.com. Those parties who do not have internet access or are otherwise unable to pre-register for this event may still participate at the above time by dialing 1-844-792-3726 and asking to join the Berkshire Hills Bancorp (BHLB) earnings call. A telephone replay of the call will be available through Tuesday, February 7, 2017 by dialing 877-344-7529 and entering access number 10098880. The webcast will be available on Berkshire's website for an extended period of time.
BACKGROUND
Berkshire Hills Bancorp is the parent of Berkshire Bank – America's Most Exciting Bank®. Berkshire has approximately $9.2 billion in assets and 97 full-service branch offices in Massachusetts, New York, Connecticut, Vermont, Pennsylvania and New Jersey providing personal and business banking, insurance, and wealth management services. For more information, visit www.berkshirebank.com.
FORWARD LOOKING STATEMENTS
This document contains 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.
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 on pages F-9 and F-10 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 items which the Company does not view as related to its normalized operations. These items include securities gains/losses, merger costs, restructuring costs, and systems conversion costs. Non-core adjustments are presented net of an adjustment for income tax expense. This adjustment is determined as the difference between the GAAP tax rate and the effective tax rate applicable to core income. The efficiency ratio is adjusted for non-core revenue and expense items and for tax preference items. The Company also calculates measures related to tangible equity, which adjust equity (and assets where applicable) to exclude intangible assets due to the importance of these measures to the investment community. Charges related to merger and acquisition activity consist primarily of severance/benefit related expenses, contract termination costs, systems conversion costs, variable compensation expenses, and professional fees. These charges are related to the following business combinations: First Choice Bank, 44 Business Capital, Hampden Bancorp, and Firestone Financial. Restructuring costs generally consist of costs and losses associated with the disposition of assets and liabilities and lease terminations, including costs related to branch sales. The Company's disclosures of organic growth of loans and deposits in 2016 are adjusted for the business combinations with 44 Business Capital and First Choice Bank.
CONTACTS
Investor Relations Contact
Allison O'Rourke; Executive Vice President, Finance; 413-236-3149
Media Contact
Elizabeth Mach; First Vice President, Marketing Officer; 413-445-8390
TABLE INDEX |
CONSOLIDATED UNAUDITED FINANCIAL SCHEDULES |
F-1 | Selected Financial Highlights |
F-2 | Balance Sheets |
F-3 | Loan and Deposit Analysis |
F-4 | Statements of Income |
F-5 | Statements of Income (Five Quarter Trend) |
F-6 | Average Yields and Costs |
F-7 | Average Balances |
F-8 | Asset Quality Analysis |
F-9 | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
F-10 | Reconciliation of Non-GAAP Financial Measures (Year-to-Date) and Supplementary Data |
BERKSHIRE HILLS BANCORP, INC. | |||||||||||||
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED - (F-1) | |||||||||||||
At or for the Quarters Ended (1)(2) | |||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |||||||||
2016 (3) | 2016 | 2016 (4) | 2016 | 2015 | |||||||||
PER SHARE DATA | |||||||||||||
Net earnings, diluted | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 0.52 | ||||||||
Core earnings, diluted (5) | 0.56 | 0.57 | 0.54 | 0.54 | 0.54 | ||||||||
Total book value | 30.65 | 29.97 | 29.64 | 29.18 | 28.64 | ||||||||
Tangible book value (5) | 18.81 | 18.78 | 18.44 | 18.44 | 17.84 | ||||||||
Market price at period end | 36.85 | 27.71 | 26.92 | 26.89 | 29.11 | ||||||||
Dividends | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | ||||||||
PERFORMANCE RATIOS (6) | |||||||||||||
Return on assets | 0.50 | % | 0.82 | % | 0.82 | % | 0.82 | % | 0.82 | % | |||
Core return on assets (5) | 0.87 | 0.88 | 0.85 | 0.85 | 0.85 | ||||||||
Return on equity | 4.29 | 7.29 | 7.17 | 7.19 | 7.34 | ||||||||
Core return on equity (5) | 7.49 | 7.75 | 7.42 | 7.40 | 7.58 | ||||||||
Core return on tangible equity (5) | 12.23 | 12.99 | 12.45 | 12.20 | 12.68 | ||||||||
Net interest margin, fully taxable equivalent (FTE) (7) | 3.19 | 3.25 | 3.31 | 3.33 | 3.35 | ||||||||
Net interest margin (FTE), excluding purchased loan accretion (5) | 3.09 | 3.13 | 3.20 | 3.21 | 3.22 | ||||||||
Fee income/Net interest and fee income | 24.99 | 23.81 | 21.16 | 21.04 | 19.62 | ||||||||
Efficiency ratio (5) | 59.06 | 57.90 | 58.71 | 59.86 | 60.56 | ||||||||
GROWTH (Year-to-date) | |||||||||||||
Total commercial loans, (annualized) | 18 | % | 9 | % | 11 | % | 6 | % | 29 | % | |||
Total loans, (annualized) | 14 | 7 | 10 | 0 | 22 | ||||||||
Total deposits, (annualized) | 18 | 4 | 2 | 0 | 20 | ||||||||
Total net revenues, (compared to prior year) | 11 | 13 | 14 | 26 | 18 | ||||||||
Earnings per share, (compared to prior year) | 9 | 31 | 48 | 49 | 27 | ||||||||
Core earnings per share, (compared to prior year) | 4 | 6 | 5 | 8 | 16 | ||||||||
FINANCIAL DATA (In millions) | |||||||||||||
Total assets | $ 9,163 | $ 7,931 | $ 8,044 | $ 7,808 | $ 7,832 | ||||||||
Total earning assets | 8,340 | 7,229 | 7,327 | 7,142 | 7,140 | ||||||||
Total investments | 1,670 | 1,162 | 1,304 | 1,399 | 1,402 | ||||||||
Total loans | 6,550 | 6,047 | 6,000 | 5,727 | 5,725 | ||||||||
Allowance for loan losses | 44 | 43 | 41 | 40 | 39 | ||||||||
Total intangible assets | 422 | 348 | 349 | 334 | 335 | ||||||||
Total deposits | 6,622 | 5,750 | 5,657 | 5,584 | 5,589 | ||||||||
Total shareholders' equity | 1,093 | 933 | 923 | 906 | 887 | ||||||||
Net income | 10.3 | 16.4 | 16.0 | 16.0 | 16.0 | ||||||||
Core income (5) | 18.0 | 17.4 | 16.5 | 16.5 | 16.5 | ||||||||
ASSET QUALITY AND CONDITION RATIOS | |||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.21 | % | 0.20 | % | 0.22 | % | 0.23 | % | 0.25 | % | |||
Allowance for loan losses/total loans | 0.67 | 0.71 | 0.69 | 0.70 | 0.69 | ||||||||
Loans/deposits | 99 | 105 | 106 | 103 | 102 | ||||||||
Shareholders' equity to total assets | 11.93 | 11.76 | 11.48 | 11.60 | 11.33 | ||||||||
Tangible shareholders' equity to tangible assets (5) | 7.68 | 7.70 | 7.46 | 7.66 | 7.37 | ||||||||
(1) | Core measurements are non-GAAP financial measures that are adjusted to exclude net non-core charges primarily related to acquisitions and restructuring activities | ||||||||||||
(2) | Reconciliations of non-GAAP financial measures, including all references to core and tangible amounts, appear on pages F-9 and F-10. | ||||||||||||
(3) | The Company acquired First Choice Bank on December 2, 2016. | ||||||||||||
(4) | The Company acquired certain assets and operations related to 44 Business Capital on April 29, 2016. | ||||||||||||
(5) | Non-GAAP financial measure. See F-9 and F-10 for reconciliations of non-GAAP financial measures. | ||||||||||||
(6) | All performance ratios are annualized and are based on average balance sheet amounts, where applicable. | ||||||||||||
(7) | Fully taxable equivalent considers the impact of tax advantaged investment securities and loans. | ||||||||||||
BERKSHIRE HILLS BANCORP, INC. | ||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED - (F-2) | ||||||
December 31, | September 30, | December 31, | ||||
(In thousands) | 2016 (1) | 2016 | 2015 | |||
Assets | ||||||
Cash and due from banks | $ 71,494 | $ 61,107 | $ 72,918 | |||
Short-term investments | 41,581 | 8,178 | 30,644 | |||
Total cash and short-term investments | 113,075 | 69,285 | 103,562 | |||
Trading security | 13,229 | 14,149 | 14,189 | |||
Securities available for sale, at fair value | 1,209,537 | 946,853 | 1,154,457 | |||
Securities held to maturity, at amortized cost | 334,368 | 131,467 | 131,652 | |||
Federal Home Loan Bank stock and other restricted securities | 71,112 | 61,277 | 71,018 | |||
Total securities | 1,628,246 | 1,153,746 | 1,371,316 | |||
Loans held for sale, at fair value | 120,673 | 20,471 | 13,191 | |||
Commercial real estate | 2,616,438 | 2,327,044 | 2,059,767 | |||
Commercial and industrial loans | 1,062,038 | 994,874 | 1,048,263 | |||
Residential mortgages | 1,893,131 | 1,818,111 | 1,815,035 | |||
Consumer loans | 978,180 | 906,975 | 802,171 | |||
Total loans | 6,549,787 | 6,047,004 | 5,725,236 | |||
Less: Allowance for loan losses | (43,998) | (43,105) | (39,308) | |||
Net loans | 6,505,789 | 6,003,899 | 5,685,928 | |||
Premises and equipment, net | 93,215 | 85,794 | 88,072 | |||
Other real estate owned | 151 | 80 | 1,725 | |||
Goodwill | 402,871 | 339,975 | 323,943 | |||
Other intangible assets | 19,445 | 8,308 | 10,664 | |||
Cash surrender value of bank-owned life insurance | 139,257 | 127,880 | 125,233 | |||
Deferred tax asset, net | 43,817 | 34,616 | 42,526 | |||
Other assets | 96,003 | 87,107 | 64,926 | |||
Total assets | $ 9,162,542 | $ 7,931,161 | $ 7,831,086 | |||
Liabilities and shareholders' equity | ||||||
Demand deposits | $ 1,278,875 | $ 1,113,733 | $ 1,081,860 | |||
NOW deposits | 570,583 | 476,189 | 510,807 | |||
Money market deposits | 1,781,605 | 1,469,075 | 1,408,107 | |||
Savings deposits | 657,486 | 607,868 | 601,761 | |||
Time deposits | 2,333,543 | 2,082,889 | 1,986,600 | |||
Total deposits | 6,622,092 | 5,749,754 | 5,589,135 | |||
Senior borrowings | 1,224,836 | 1,048,914 | 1,174,335 | |||
Subordinated borrowings | 89,161 | 89,116 | 88,983 | |||
Total borrowings | 1,313,997 | 1,138,030 | 1,263,318 | |||
Other liabilities | 133,155 | 110,784 | 91,444 | |||
Total liabilities | 8,069,244 | 6,998,568 | 6,943,897 | |||
Total common shareholders' equity | 1,093,298 | 932,593 | 887,189 | |||
Total liabilities and shareholders' equity | $ 9,162,542 | $ 7,931,161 | $ 7,831,086 | |||
Net shares outstanding | 35,673 | 31,122 | 30,974 | |||
(1) The Company acquired First Choice Bank on December 2, 2016. | ||||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED - (F-3) | |||||||||||||
LOAN ANALYSIS | |||||||||||||
Organic Annualized Growth % (1) | |||||||||||||
(in millions) | December 31, 2016 | Acquired First Choice | September 30, 2016 | December 31, 2015 | Quarter ended | Year to Date | |||||||
Commercial real estate - construction | $ 288 | $ 11 | $ 242 | $ 254 | 57 | % | 9 | % | |||||
Commercial real estate - other | 2,329 | 315 | 2,085 | 1,806 | (14) | 9 | |||||||
Total commercial real estate (3) | 2,617 | 326 | 2,327 | 2,060 | (6) | 9 | |||||||
Commercial and industrial loans | 1,062 | 24 | 995 | 1,048 | 17 | (1) | |||||||
Total commercial loans | 3,679 | 350 | 3,322 | 3,108 | 1 | 6 | |||||||
Total residential mortgages | 1,893 | 26 | 1,818 | 1,815 | 11 | 3 | |||||||
Home equity | 394 | 37 | 358 | 361 | (2) | (1) | |||||||
Auto and other | 584 | 13 | 549 | 441 | 17 | 30 | |||||||
Total consumer loans | 978 | 50 | 907 | 802 | 9 | 16 | |||||||
Total loans | $ 6,550 | $ 426 | $ 6,047 | $ 5,725 | 5 | % | 6 | % | |||||
(1) Non-GAAP financial measure. | |||||||||||||
(2) Acquired First Choice Bank loans are as of December 2, 2016. | |||||||||||||
(3) Total commercial real estate loans include $37 million in loans acquired as part of the acquisition of certain assets and operations related to 44 Business Capital; however, the year | |||||||||||||
to date organic annualized growth excludes these acquired loans. | |||||||||||||
DEPOSIT ANALYSIS | |||||||||||||
Organic Annualized Growth % (1) | |||||||||||||
(in millions) | December 31, 2016 | Acquired First Choice | September 30, 2016 | December 31, 2015 | Quarter ended | Year to Date | |||||||
Demand | $ 1,279 | $ 89 | $ 1,114 | $ 1,082 | 27 | % | 10 | % | |||||
NOW | 571 | 67 | 476 | 511 | 24 | (1) | |||||||
Money market | 1,782 | 337 | 1,469 | 1,408 | (7) | 3 | |||||||
Savings | 657 | 51 | 608 | 601 | (1) | 1 | |||||||
Total non-maturity deposits | 4,289 | 544 | 3,667 | 3,602 | 8 | 4 | |||||||
Total time deposits | 2,333 | 349 | 2,083 | 1,987 | (19) | (0) | |||||||
Total deposits | $ 6,622 | $ 893 | $ 5,750 | $ 5,589 | (1) | % | 3 | % | |||||
(1) Non-GAAP financial measure. | |||||||||||||
(2) Acquired First Choice Bank deposits are as of December 2, 2016. | |||||||||||||
BERKSHIRE HILLS BANCORP, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - (F-4) | |||||||
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
(In thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||
Interest and dividend income | |||||||
Loans | $ 62,884 | $ 59,055 | $ 242,600 | $ 211,347 | |||
Securities and other | 9,550 | 9,369 | 37,839 | 35,683 | |||
Total interest and dividend income | 72,434 | 68,424 | 280,439 | 247,030 | |||
Interest expense | |||||||
Deposits | 8,556 | 6,661 | 30,883 | 22,948 | |||
Borrowings | 4,720 | 3,015 | 17,289 | 10,233 | |||
Total interest expense | 13,276 | 9,676 | 48,172 | 33,181 | |||
Net interest income | 59,158 | 58,748 | 232,267 | 213,849 | |||
Non-interest income | |||||||
Loan related income | 5,648 | 2,707 | 16,694 | 8,310 | |||
Mortgage banking income | 3,537 | 641 | 7,555 | 4,133 | |||
Deposit related fees | 6,285 | 6,416 | 24,963 | 25,084 | |||
Insurance commissions and fees | 2,323 | 2,254 | 10,477 | 10,251 | |||
Wealth management fees | 1,911 | 2,326 | 8,917 | 9,702 | |||
Total fee income | 19,704 | 14,344 | 68,606 | 57,480 | |||
Other | (2,849) | (1,739) | (3,289) | (5,302) | |||
Securities (losses) gains, net | (652) | (357) | (551) | 2,110 | |||
Gain on sale of business operations, net | 522 | - | 1,085 | - | |||
Total non-interest income | 16,725 | 12,248 | 65,851 | 54,288 | |||
Total net revenue | 75,883 | 70,996 | 298,118 | 268,137 | |||
Provision for loan losses | 4,100 | 4,431 | 17,362 | 16,726 | |||
Non-interest expense | |||||||
Compensation and benefits | 28,103 | 25,819 | 104,600 | 97,370 | |||
Occupancy and equipment | 7,320 | 7,308 | 27,220 | 28,486 | |||
Technology and communications | 5,310 | 4,553 | 19,883 | 16,881 | |||
Marketing and promotion | 1,080 | 1,012 | 3,161 | 3,306 | |||
Professional services | 1,666 | 1,472 | 6,199 | 5,172 | |||
FDIC premiums and assessments | 1,422 | 1,220 | 5,066 | 4,649 | |||
Other real estate owned and foreclosures | (11) | 33 | 691 | 833 | |||
Amortization of intangible assets | 572 | 841 | 2,927 | 3,563 | |||
Merger, restructuring and conversion expense | 11,633 | 1,118 | 15,461 | 17,611 | |||
Other | 3,995 | 4,903 | 18,094 | 18,958 | |||
Total non-interest expense | 61,090 | 48,279 | 203,302 | 196,829 | |||
Income before income taxes | 10,693 | 18,286 | 77,454 | 54,582 | |||
Income tax expense | 362 | 2,273 | 18,784 | 5,064 | |||
Net income | $ 10,331 | $ 16,013 | $ 58,670 | $ 49,518 | |||
Earnings per share: | |||||||
Basic | $ 0.32 | $ 0.53 | $ 1.89 | $ 1.74 | |||
Diluted | $ 0.32 | $ 0.52 | $ 1.88 | $ 1.73 | |||
Weighted average shares outstanding: | |||||||
Basic | 32,185 | 30,500 | 30,988 | 28,393 | |||
Diluted | 32,381 | 30,694 | 31,167 | 28,564 | |||
BERKSHIRE HILLS BANCORP, INC. | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED - (F-5) | ||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||
(In thousands, except per share data) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||
Interest and dividend income | ||||||||||
Loans | $ 62,884 | $ 61,571 | $ 59,703 | $ 58,442 | $ 59,055 | |||||
Securities and other | 9,550 | 8,940 | 9,315 | 10,034 | 9,369 | |||||
Total interest and dividend income | 72,434 | 70,511 | 69,018 | 68,476 | 68,424 | |||||
Interest expense | ||||||||||
Deposits | 8,556 | 7,790 | 7,378 | 7,159 | 6,661 | |||||
Borrowings | 4,720 | 4,750 | 4,199 | 3,620 | 3,015 | |||||
Total interest expense | 13,276 | 12,540 | 11,577 | 10,779 | 9,676 | |||||
Net interest income | 59,158 | 57,971 | 57,441 | 57,697 | 58,748 | |||||
Non-interest income | ||||||||||
Loan related income | 5,648 | 5,102 | 2,898 | 3,046 | 2,707 | |||||
Mortgage banking income | 3,537 | 1,862 | 1,335 | 821 | 641 | |||||
Deposit related fees | 6,285 | 6,278 | 6,291 | 6,109 | 6,416 | |||||
Insurance commissions and fees | 2,323 | 2,601 | 2,660 | 2,893 | 2,254 | |||||
Wealth management fees | 1,911 | 2,269 | 2,235 | 2,502 | 2,326 | |||||
Total fee income | 19,704 | 18,112 | 15,419 | 15,371 | 14,344 | |||||
Other | (2,849) | 188 | (851) | 223 | (1,739) | |||||
Securities (losses) gains, net | (652) | 78 | (13) | 36 | (357) | |||||
Gain on sale of business operations, net | 522 | 563 | - | - | - | |||||
Total non-interest income | 16,725 | 18,941 | 14,555 | 15,630 | 12,248 | |||||
Total net revenue | 75,883 | 76,912 | 71,996 | 73,327 | 70,996 | |||||
Provision for loan losses | 4,100 | 4,734 | 4,522 | 4,006 | 4,431 | |||||
Non-interest expense | ||||||||||
Compensation and benefits | 28,103 | 26,119 | 24,664 | 25,714 | 25,819 | |||||
Occupancy and equipment | 7,320 | 6,650 | 6,560 | 6,690 | 7,308 | |||||
Technology and communications | 5,310 | 4,902 | 4,814 | 4,857 | 4,553 | |||||
Marketing and promotion | 1,080 | 671 | 737 | 673 | 1,012 | |||||
Professional services | 1,666 | 1,744 | 1,509 | 1,280 | 1,472 | |||||
FDIC premiums and assessments | 1,422 | 1,208 | 1,203 | 1,233 | 1,220 | |||||
Other real estate owned and foreclosures | (11) | 46 | 393 | 263 | 33 | |||||
Amortization of intangible assets | 572 | 749 | 787 | 819 | 841 | |||||
Merger, restructuring and conversion expense | 11,633 | 2,170 | 878 | 780 | 1,118 | |||||
Other | 3,995 | 4,585 | 4,723 | 4,791 | 4,903 | |||||
Total non-interest expense | 61,090 | 48,844 | 46,268 | 47,100 | 48,279 | |||||
Income before income taxes | 10,693 | 23,334 | 21,206 | 22,221 | 18,286 | |||||
Income tax expense | 362 | 6,953 | 5,249 | 6,220 | 2,273 | |||||
Net income | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 16,013 | |||||
Earnings per share: | ||||||||||
Basic | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 0.53 | |||||
Diluted | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 0.52 | |||||
Weighted average shares outstanding: | ||||||||||
Basic | 32,185 | 30,621 | 30,605 | 30,511 | 30,500 | |||||
Diluted | 32,381 | 30,811 | 30,765 | 30,688 | 30,694 | |||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED - (F-6) | |||||||||||
Quarters Ended | |||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||
Earning assets | |||||||||||
Loans: | |||||||||||
Commercial real estate | 4.21 | % | 4.28 | % | 4.45 | % | 4.18 | % | 4.17 | % | |
Commercial and industrial loans | 4.96 | 5.15 | 4.93 | 5.04 | 5.51 | ||||||
Residential mortgages | 3.56 | 3.60 | 3.63 | 3.86 | 3.72 | ||||||
Consumer loans | 3.45 | 3.41 | 3.40 | 3.44 | 3.30 | ||||||
Total loans | 4.05 | 4.10 | 4.14 | 4.13 | 4.15 | ||||||
Securities | 3.35 | 3.26 | 3.28 | 3.26 | 2.96 | ||||||
Short-term investments and loans held for sale | 2.13 | 1.69 | 1.29 | 0.91 | 0.89 | ||||||
Total earning assets | 3.89 | 3.94 | 3.97 | 3.93 | 3.89 | ||||||
Funding liabilities | |||||||||||
Deposits: | |||||||||||
NOW | 0.16 | 0.12 | 0.13 | 0.13 | 0.14 | ||||||
Money market | 0.48 | 0.46 | 0.47 | 0.49 | 0.45 | ||||||
Savings | 0.12 | 0.12 | 0.11 | 0.13 | 0.14 | ||||||
Time | 1.14 | 1.10 | 1.06 | 0.99 | 0.93 | ||||||
Total interest-bearing deposits | 0.69 | 0.67 | 0.65 | 0.63 | 0.59 | ||||||
Borrowings | 1.64 | 1.53 | 1.38 | 1.19 | 0.96 | ||||||
Total interest-bearing liabilities | 0.87 | 0.85 | 0.81 | 0.75 | 0.67 | ||||||
Net interest spread | 3.02 | 3.09 | 3.16 | 3.18 | 3.22 | ||||||
Net interest margin | 3.19 | 3.25 | 3.31 | 3.33 | 3.35 | ||||||
Cost of funds (1) | 0.73 | 0.72 | 0.68 | 0.64 | 0.56 | ||||||
Cost of deposits (2) | 0.56 | 0.54 | 0.53 | 0.51 | 0.48 | ||||||
(1) Cost of funds includes all deposits and borrowings. | |||||||||||
(2) The average cost of deposits includes the deposits held for sale. | |||||||||||
BERKSHIRE HILLS BANCORP, INC. | ||||||||||
AVERAGE BALANCES - UNAUDITED - (F-7) | ||||||||||
Quarters Ended | ||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||
(In thousands) | 2016 | 2016 (2)(4) | 2016 (2)(4) | 2016 (2)(4) | 2015 | |||||
Assets | ||||||||||
Loans | ||||||||||
Commercial real estate | $ 2,442,515 | $ 2,260,482 | $ 2,173,539 | $ 2,079,001 | $ 2,034,917 | |||||
Commercial and industrial loans | 998,543 | 1,009,581 | 1,047,866 | 1,027,257 | 1,033,081 | |||||
Residential mortgages | 1,833,530 | 1,839,364 | 1,759,193 | 1,798,034 | 1,790,334 | |||||
Consumer loans | 936,957 | 900,432 | 844,759 | 807,888 | 807,768 | |||||
Total loans (1) | 6,211,545 | 6,009,859 | 5,825,357 | 5,712,180 | 5,666,100 | |||||
Securities (3) | 1,255,207 | 1,197,760 | 1,247,357 | 1,342,590 | 1,368,505 | |||||
Short-term investments and loans held for sale | 83,057 | 40,259 | 41,449 | 56,042 | 51,241 | |||||
Total earning assets | 7,549,809 | 7,247,878 | 7,114,163 | 7,110,812 | 7,085,846 | |||||
Goodwill and other intangible assets | 362,567 | 349,059 | 344,832 | 333,948 | 335,440 | |||||
Other assets | 363,322 | 360,182 | 349,816 | 346,327 | 342,902 | |||||
Total assets | $ 8,275,698 | $ 7,957,119 | $ 7,808,811 | $ 7,791,087 | $ 7,764,188 | |||||
Liabilities and shareholders' equity | ||||||||||
Deposits | ||||||||||
NOW | $ 499,852 | $ 474,650 | $ 492,901 | $ 484,334 | $ 491,445 | |||||
Money market | 1,612,160 | 1,448,108 | 1,403,629 | 1,417,068 | 1,455,267 | |||||
Savings | 620,092 | 608,365 | 612,261 | 602,414 | 604,215 | |||||
Time | 2,171,325 | 2,095,269 | 2,047,020 | 2,063,712 | 1,958,394 | |||||
Total interest-bearing deposits | 4,903,429 | 4,626,392 | 4,555,811 | 4,567,528 | 4,509,321 | |||||
Borrowings | 1,144,846 | 1,235,065 | 1,223,629 | 1,222,288 | 1,256,287 | |||||
Total interest-bearing liabilities | 6,048,275 | 5,861,457 | 5,779,440 | 5,789,816 | 5,765,608 | |||||
Non-interest-bearing demand deposits | 1,178,308 | 1,084,786 | 1,032,951 | 1,026,447 | 1,033,844 | |||||
Other liabilities | 85,951 | 111,743 | 105,948 | 84,042 | 91,877 | |||||
Total liabilities | 7,312,534 | 7,057,986 | 6,918,339 | 6,900,305 | 6,891,329 | |||||
Total shareholders' equity | 963,164 | 899,133 | 890,472 | 890,782 | 872,859 | |||||
Total liabilities and shareholders' equity | $ 8,275,698 | $ 7,957,119 | $ 7,808,811 | $ 7,791,087 | $ 7,764,188 | |||||
Supplementary data | ||||||||||
Total non-maturity deposits | $ 3,910,412 | $ 3,615,909 | $ 3,541,742 | $ 3,530,263 | $ 3,584,771 | |||||
Total deposits | 6,081,737 | 5,711,178 | 5,588,762 | 5,593,975 | 5,543,165 | |||||
Fully taxable equivalent income adjustment | 1,339 | 1,200 | 1,180 | 1,134 | 1,108 | |||||
Total average tangible equity (5) | 600,597 | 550,074 | 545,640 | 556,834 | 537,419 | |||||
(1) Total loans include non-accruing loans. | ||||||||||
(2) The average balances of loans include loans associated with branch sales, which are presented under loans held for sale on the consolidated balance sheet. | ||||||||||
(3) Average balances for securities available-for-sale are based on amortized cost. | ||||||||||
(4) The average balances of deposits include the deposits held for sale presented under other liabilities on the consolidated balance sheet. | ||||||||||
(5) See page F-9. | ||||||||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||
ASSET QUALITY ANALYSIS - UNAUDITED - (F-8) | |||||||||||
At or for the Quarters Ended | |||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |||||||
(in thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||
NON-PERFORMING ASSETS | |||||||||||
Non-accruing loans: | |||||||||||
Commercial real estate | $ 5,883 | $ 6,295 | $ 4,808 | $ 5,001 | $ 4,882 | ||||||
Commercial and industrial loans | 7,523 | 6,714 | 7,590 | 7,480 | 8,259 | ||||||
Residential mortgages | 3,795 | 4,374 | 4,882 | 4,732 | 3,966 | ||||||
Consumer loans | 4,833 | 3,281 | 3,376 | 3,588 | 3,768 | ||||||
Total non-accruing loans | 22,034 | 20,664 | 20,656 | 20,801 | 20,875 | ||||||
Other real estate owned | 151 | 80 | 595 | 1,440 | 1,725 | ||||||
Total non-performing assets | $ 22,185 | $ 20,744 | $ 21,251 | $ 22,241 | $ 22,600 | ||||||
Total non-accruing loans/total loans | 0.34% | 0.34% | 0.34% | 0.36% | 0.36% | ||||||
Total non-performing assets/total assets | 0.24% | 0.26% | 0.26% | 0.28% | 0.29% | ||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | |||||||||||
Balance at beginning of period | $ 43,105 | $ 41,397 | $ 40,055 | $ 39,308 | $ 38,180 | ||||||
Charged-off loans | (3,488) | (3,441) | (3,393) | (3,704) | (3,538) | ||||||
Recoveries on charged-off loans | 281 | 415 | 213 | 445 | 235 | ||||||
Net loans charged-off | (3,207) | (3,026) | (3,180) | (3,259) | (3,303) | ||||||
Provision for loan losses | 4,100 | 4,734 | 4,522 | 4,006 | 4,431 | ||||||
Balance at end of period | $ 43,998 | $ 43,105 | $ 41,397 | $ 40,055 | $ 39,308 | ||||||
Allowance for loan losses/total loans | 0.67% | 0.71% | 0.69% | 0.70% | 0.69% | ||||||
Allowance for loan losses/non-accruing loans | 200% | 209% | 200% | 193% | 188% | ||||||
NET LOAN CHARGE-OFFS | |||||||||||
Commercial real estate | $ (676) | $ (547) | $ (534) | $ (1,043) | $ (1,152) | ||||||
Commercial and industrial loans | (1,148) | (1,610) | (1,720) | (847) | (1,056) | ||||||
Residential mortgages | (768) | (452) | (568) | (774) | (633) | ||||||
Home equity | (47) | (65) | (164) | (221) | (118) | ||||||
Auto and other consumer | (568) | (352) | (194) | (374) | (344) | ||||||
Total, net | $ (3,207) | $ (3,026) | $ (3,180) | $ (3,259) | $ (3,303) | ||||||
Net charge-offs (QTD annualized)/average loans | 0.21% | 0.20% | 0.22% | 0.23% | 0.25% | ||||||
Net charge-offs (YTD annualized)/average loans | 0.21% | 0.22% | 0.22% | 0.23% | 0.25% | ||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | |||||||||||
30-89 Days delinquent | 0.35% | 0.25% | 0.25% | 0.26% | 0.34% | ||||||
90+ Days delinquent and still accruing | 0.15% | 0.09% | 0.08% | 0.07% | 0.09% | ||||||
Total accruing delinquent loans | 0.50% | 0.34% | 0.33% | 0.33% | 0.43% | ||||||
Non-accruing loans | 0.34% | 0.34% | 0.34% | 0.36% | 0.36% | ||||||
Total delinquent and non-accruing loans | 0.84% | 0.68% | 0.67% | 0.69% | 0.79% | ||||||
BERKSHIRE HILLS BANCORP, INC. | |||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED - (F-9) | |||||||||||
At or for the Quarters Ended | |||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |||||||
(in thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||
Net income | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 16,013 | ||||||
Adj: Net securities losses (gains) | 652 | (78) | 13 | (36) | 357 | ||||||
Adj: Net (gains) on sale of business operations | (522) | (563) | - | - | - | ||||||
Adj: Merger and acquisition expense | 10,820 | 1,453 | 701 | 527 | 1,230 | ||||||
Adj: Restructuring expense and other | 1,113 | 717 | 177 | 253 | (112) | ||||||
Adj: Income taxes | (4,373) | (492) | (334) | (256) | (959) | ||||||
Total core income | (A) | $ 18,021 | $ 17,418 | $ 16,514 | $ 16,489 | $ 16,529 | |||||
Total revenue | $ 75,883 | $ 76,912 | $ 71,996 | $ 73,327 | $ 70,996 | ||||||
Adj: Net securities losses (gains) | 652 | (78) | 13 | (36) | 357 | ||||||
Adj: Net (gains) on sale of business operations | (522) | (563) | - | - | - | ||||||
Total core revenue | (B) | $ 76,013 | $ 76,271 | $ 72,009 | $ 73,291 | $ 71,353 | |||||
Total non-interest expense | $ 61,090 | $ 48,844 | $ 46,268 | $ 47,100 | $ 48,279 | ||||||
Less: Total non-core expense (see above) | (11,933) | (2,170) | (878) | (780) | (1,118) | ||||||
Core non-interest expense | (C) | $ 49,157 | $ 46,674 | $ 45,390 | $ 46,320 | $ 47,161 | |||||
(in millions, except per share data) | |||||||||||
Total average assets | (D) | $ 8,276 | $ 7,957 | $ 7,809 | $ 7,791 | $ 7,764 | |||||
Total average shareholders' equity | (E) | 963 | 899 | 890 | 891 | 873 | |||||
Total average tangible shareholders' equity | (F) | 601 | 550 | 546 | 557 | 537 | |||||
Total tangible shareholders' equity, period-end (1) | (G) | 671 | 584 | 574 | 572 | 553 | |||||
Total tangible assets, period-end (1) | (H) | 8,740 | 7,583 | 7,695 | 7,474 | 7,497 | |||||
Total common shares outstanding, period-end (thousands) | (I) | 35,673 | 31,122 | 31,156 | 31,039 | 30,974 | |||||
Average diluted shares outstanding (thousands) | (J) | 32,381 | 30,811 | 30,765 | 30,688 | 30,694 | |||||
Core earnings per share, diluted | (A/J) | $ 0.56 | $ 0.57 | $ 0.54 | $ 0.54 | $ 0.54 | |||||
Tangible book value per share, period-end | (G/I) | 18.81 | 18.78 | 18.44 | 18.44 | 17.84 | |||||
Total tangible shareholders' equity/total tangible assets | (G)/(H) | 7.68 | 7.70 | 7.46 | 7.66 | 7.37 | |||||
Performance ratios (2) | |||||||||||
GAAP return on assets | 0.50 | % | 0.82 | % | 0.82 | % | 0.82 | % | 0.82 | % | |
Core return on assets | (A/D) | 0.87 | 0.88 | 0.85 | 0.85 | 0.85 | |||||
GAAP return on equity | 4.29 | 7.29 | 7.17 | 7.19 | 7.34 | ||||||
Core return on equity | (A/E) | 7.49 | 7.75 | 7.42 | 7.40 | 7.58 | |||||
Core return on tangible equity (3) | (A/F) | 12.23 | 12.99 | 12.45 | 12.20 | 12.68 | |||||
Efficiency ratio (4)(5) (C-M)/(B+K+N) | 59.06 | 57.90 | 58.71 | 59.86 | 60.56 | ||||||
Net interest margin | 3.19 | 3.25 | 3.31 | 3.33 | 3.35 | ||||||
Supplementary data (in thousands) | |||||||||||
Tax benefit on tax-credit investments (6) | (K) | $ 4,918 | $ 1,852 | $ 2,777 | $ 1,588 | $ 4,029 | |||||
Non-interest income charge on tax-credit investments (7) | (L) | (4,428) | (1,525) | (1,938) | (1,101) | (2,851) | |||||
Net income on tax-credit investments | (K+L) | 490 | 327 | 839 | 487 | 1,178 | |||||
Intangible amortization | (M) | 572 | 749 | 787 | 819 | 841 | |||||
Fully taxable equivalent income adjustment | (N) | 1,339 | 1,200 | 1,180 | 1,134 | 1,108 | |||||
(1) Total tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. | |||||||||||
Total tangible assets is computed by taking total assets less the intangible assets at period-end. | |||||||||||
(2) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due | |||||||||||
to rounding. | |||||||||||
(3) Core return on tangible equity is computed by dividing the total core income adjusted for the tax-effected amortization of intangible assets, | |||||||||||
assuming a 40% marginal rate, by tangible equity. | |||||||||||
(4) Non-GAAP financial measure. | |||||||||||
(5) 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 to provide important information regarding its operational efficiency. | |||||||||||
(6) The tax benefit is the direct reduction to the income tax provision due to tax credits and deductions generated from investments in historic | |||||||||||
rehabilitation, low-income housing, new market projects, and renewable energy projects. | |||||||||||
(7) The non-interest income charge is the reduction to the tax-advantaged investments, which are incurred as the tax credits are generated. | |||||||||||
BERKSHIRE HILLS BANCORP, INC. | ||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED - (F-10) | ||||||
At or for the Years Ended | ||||||
Dec. 31, | Dec. 31, | |||||
(Dollars in thousands) | 2016 | 2015 | ||||
Net income | $ 58,670 | $ 49,518 | ||||
Adj: Net securities losses (gains) | 551 | (2,110) | ||||
Adj: Net (gains) on sale of business operations | (1,085) | - | ||||
Adj: Merger and acquisition expenses | 13,501 | 13,157 | ||||
Adj: Restructuring expense and other | 2,260 | 4,454 | ||||
Adj: Income taxes | (5,455) | (5,409) | ||||
Total core income | (A) | $ 68,442 | $ 59,610 | |||
Total revenue | $ 298,118 | $ 268,137 | ||||
Adj: Net securities losses (gains) | 551 | (2,110) | ||||
Adj: Net (gains) on sale of business operations | (1,085) | - | ||||
Total core revenue | (B) | $ 297,584 | $ 266,027 | |||
Total non-interest expense | $ 203,302 | $ 196,830 | ||||
Less: Total non-core expense (see above) | (15,761) | (17,611) | ||||
Core non-interest expense | (C) | $ 187,541 | $ 179,219 | |||
(Dollars in millions, except per share data) | ||||||
Total average assets | (D) | $ 7,958 | $ 7,249 | |||
Total average shareholders' equity | (E) | 911 | 805 | |||
Total average tangible shareholders' equity | (F) | 563 | 494 | |||
Total tangible shareholders' equity, period-end (1) | (G) | 671 | 553 | |||
Total tangible assets, period-end (1) | (H) | 8,740 | 7,496 | |||
Total common shares outstanding, period-end (thousands) | (I) | 35,673 | 30,974 | |||
Average diluted shares outstanding (thousands) | (J) | 31,167 | 28,564 | |||
Core earnings per common share, diluted | (A/J) | $ 2.20 | $ 2.09 | |||
Tangible book value per common share, period-end | (G/I) | 18.81 | 17.84 | |||
Total tangible shareholders' equity/total tangible assets | (G/H) | 7.68 | 7.37 | |||
Performance ratios (2) | ||||||
GAAP return on assets | 0.74 | % | 0.68 | % | ||
Core return on assets | (A/D) | 0.86 | 0.82 | |||
GAAP return on equity | 6.44 | 6.15 | ||||
Core return on equity | (A/E) | 7.51 | 7.40 | |||
Core return on tangible equity (3) | (A/F) | 12.47 | 12.49 | |||
Efficiency ratio (4)(5) | (C-M) / (B+K+N) | 58.87 | 61.34 | |||
Net interest margin | 3.27 | 3.31 | ||||
Supplementary data | ||||||
Tax benefit on tax-credit investments (6) | (K) | $ 11,134 | $ 16,127 | |||
Non-interest income charge on tax-credit investments (7) | (L) | (8,993) | (11,406) | |||
Net income on tax-credit investments | (K+L) | 2,143 | 4,721 | |||
Intangible amortization | (M) | 2,927 | 3,563 | |||
Fully taxable equivalent income adjustment | (N) | 4,853 | 4,196 | |||
(1) Total tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. | ||||||
Total tangible assets is computed by taking total assets less the intangible assets at period-end. | ||||||
(2) Ratios are annualized and based on average balance sheet amounts, where applicable. Quarterly data may not sum to year-to-date data due to rounding. | ||||||
(3) Core return on tangible equity is computed by dividing the total core income adjusted for the tax-effected amortization of | ||||||
intangible assets, assuming a 40% marginal rate, by tangible equity. | ||||||
(4) Non-GAAP financial measure. | ||||||
(5) 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 to provide important information regarding its operational efficiency. | ||||||
(6) The tax benefit is the direct reduction to the income tax provision due to tax credits and deductions generated from investments in | ||||||
historic rehabilitation, low-income housing, new market projects, and renewable energy. | ||||||
(7) The non-interest income charge is the reduction to the tax-advantaged investments, which are incurred as the tax credits are generated. | ||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/berkshire-hills-reports-record-annual-earnings-dividend-increased-300398859.html
SOURCE Berkshire Hills Bancorp, Inc.
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