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Dec 31, 2024
Berkshire Hills Bancorp Q4 2024 Earnings Report
Berkshire Hills Bancorp reported strong fourth quarter operating results with $0.46 GAAP EPS and $0.60 Operating EPS.
Key Takeaways
Berkshire Hills Bancorp reported a 28% year-over-year increase in fourth quarter operating EPS and a 4% increase for full year operating EPS, driven by growth initiatives, strategic optimization, strong credit discipline, and expense management. The company achieved a 9.9% operating return on tangible common equity in the fourth quarter. A definitive agreement with Brookline Bancorp, Inc. for a merger of equals was announced in December.
Fourth quarter GAAP income was $20 million, or $0.46 per share.
Operating earnings totaled $26 million, or $0.60 per share.
Total loans increased $173 million, or 2% to $9.4 billion compared to the linked quarter.
Total deposits increased $798 million to $10.4 billion compared to the linked quarter.
Berkshire Hills Bancorp
Berkshire Hills Bancorp
Forward Guidance
Berkshire Hills Bancorp has a pending agreement to merge with Brookline Bancorp, Inc. to create a preeminent Northeast banking franchise positioned to deliver an exceptional client experience and create greater value for shareholders.
Positive Outlook
- Merger to create a preeminent Northeast banking franchise.
- Exceptional client experience expected post-merger.
- Greater value for shareholders anticipated.
- Successful capital raise of $100 million to support the merger.
- Strong investor confidence in plans and accomplishments.
Challenges Ahead
- Merger involves non-operating expenses of $6.6 million related primarily to the pending merger.
- Full year 2024 GAAP income was $61 million, or $1.43 per share, compared to $70 million, or $1.60 per share, in 2023.
- Quarterly net interest income decreased linked quarter by $1.2 million to $87 million.
- Impact of a lower net interest margin.
- Many factors could cause actual results to differ significantly from expectations.