Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Berkshire Hills Bancorp Inc	NYSE:BHLB	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.04	0.15%	27.00	28.92	26.69	26.69	214,384	20:05:02

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 18, 2024

BERKSHIRE HILLS BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

001-15781

04-3510455

(State or Other Jurisdiction)

of Incorporation)

(Commission File No.)

(I.R.S. Employer

Identification No.)

60 State Street, Boston, Massachusetts		02109
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (800) 773-5601, ext. 133773

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common stock, par value $0.01 per share		BHLB		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02

Results of Operations and Financial Condition

On July 18, 2024, Berkshire Hills Bancorp, Inc. (the “Company”), the holding company for Berkshire Bank (the “Bank”), announced its financial results for the second quarter ended June 30, 2024. The news release containing the financial results is included as Exhibit 99.1 and shall not be deemed “filed” for any purpose.

The Company conducted a conference call/webcast on July 18, 2024, to discuss the financial results for the quarter and provide guidance about expected future results. A telephone replay of the call will be available through July 25, 2024. The webcast will be available on the Company’s website at ir.berkshirebank.com for an extended period of time.

Item 7.01

Regulation FD Disclosure

The Company made available slides for a presentation that the Company utilized in connection with its conference call. A copy of the presentation can be found on the Company’s website at ir.berkshirebank.com.

Item 9.01	Financial Statements and Exhibits

(a)	Financial Statements of Businesses Acquired. Not applicable.
(b)	Pro Forma Financial Information. Not applicable.
(c)	Shell Company Transactions. Not applicable.
(d)	Exhibits.

	Exhibit No.	Description

	99.1	News Release dated July 18, 2024
	104.1	Cover Page for this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		Berkshire Hills Bancorp, Inc.


DATE: July 18, 2024	By:	/s/ Nitin J. Mhatre
		Nitin J. Mhatre President and Chief Executive Officer

Exhibit 99.1

Berkshire Hills Reports a Solid Second Quarter Net Income of $24.0 million,

or $0.57 Per Share

Operating EPS of $0.55 increased 12% linked quarter

Operating revenue increased 3% linked quarter

Operating expense decreased 2% linked quarter

Net interest margin 3.20%, increased 5 basis points linked quarter

Net loan charge-offs were 7 basis points annualized

BOSTON, July 18, 2024 - Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported results for the second quarter of 2024. These results along with comparison periods are summarized below:

($ in millions, except per share data)	Three Months Ended
	June 30, 2024			Mar. 31, 2024			June 30, 2023
Net income (loss)	$	24.0		$	(20.2	)	$	23.9
Per share		0.57			(0.47	)		0.55
Operating earnings¹		23.2			20.9			23.9
Per share		0.55			0.49			0.55

Net interest income, non FTE	$	88.5		$	88.1		$	92.8
Net interest income, FTE		90.5			90.1			94.7
Net interest margin, FTE		3.20	%		3.15	%		3.24	%
Non-interest income		20.1			(32.6	)		17.1
Operating non-interest income¹		20.1			17.3			17.1

Non-interest expense	$	70.9		$	76.0		$	74.0
Operating non-interest expense¹		71.3			72.4			74.0
Efficiency ratio¹		63.4	%		66.3	%		63.6	%

Average balances²
Loans	$	9,214		$	9,059		$	8,791
Deposits		9,779			9,978			9,568

Period-end balances²
Loans		9,284			9,144			8,882
Deposits		10,095			10,368			10,068

1. See non-GAAP financial measures and reconciliation to GAAP measures beginning on page 12.

2. Loans and deposits in 2Q24 include balances held for sale in branch transaction of $57 million and $483 million respectively (average), and $55 million and $474 million (end of period). These balances in 1Q24 were $18 million and $149 million respectively (average), and $58 million and $485 million (end of period).

Berkshire CEO Nitin Mhatre stated, “Operating income advanced for the second consecutive quarter and we benefited from loan growth, credit quality, and expense management. The consolidation of three branch offices was completed, bringing our branch count to 93, and we remain on target to conclude the pending sale of ten offices in the second half of the year. Berkshire bolstered its cash management and government banking capabilities through promotions and new hires, and Brett Brbovic was promoted to CFO from his position as Chief Accounting Officer. Brett will continue our forward momentum supported by the strong team that he has built over his many years at Berkshire. Finally, I’m proud that TIME named us one of America’s Best Mid-Size Companies 2024 recognizing our progress on financial performance, employee satisfaction and commitment to sustainability.”

Mr. Brbovic added, “The margin increase benefited from loan growth and impacts from prior quarter securities sales. Net interest income increased $392 thousand linked quarter, following several quarters of decreases. Operating non-interest income increased $2.8 million, primarily due to higher gain on SBA loans. The loan loss provision increased by approximately $500 thousand, supporting loan growth and increasing the credit loss allowance to 1.22% of total loans. Linked quarter operating expenses decreased $1.1 million due primarily to lower compensation and occupancy expense. The efficiency ratio improved to 63.4% from 66.3%. Capital ratios remained strong, with the tangible common equity ratio remaining unchanged at 8.2%.”

	As of and For the Three Months Ended
	June 30, 2024			Mar. 31, 2024			June 30, 2023
Asset Quality
Net loan charge-offs to average loans		0.07	%		0.18	%		0.26	%
Non-performing loans to total loans		0.23	%		0.24	%		0.32	%

Returns
Return on average assets		0.82	%		(0.69	)%		0.79	%
Operating return on average assets¹		0.79	%		0.71	%		0.79	%
Return on tangible common equity¹		9.99	%		(7.73	)%		10.09	%
Operating return on tangible common equity¹		9.65	%		8.73	%		10.09	%


Capital Ratios²
Tangible common equity/tangible assets¹		8.2	%		8.2	%		7.9	%
Tier 1 leverage		9.6	%		9.5	%		9.6	%
Common equity Tier 1		11.6	%		11.6	%		12.1	%
Tier 1 risk-based		11.8	%		11.8	%		12.3	%
Total risk-based		14.1	%		14.0	%		14.4	%

1. See non-GAAP measures and reconciliation to GAAP beginning on page 12. All performance ratios are annualized and are based on average balance sheet amounts, where applicable.

2. Presented as estimated for June 30, 2024 and actual for the remaining periods.

Berkshire Hills Bancorp, Inc. (NYSE: BHLB) is the parent company of Berkshire Bank, a relationship-driven, community-focused bank with $12.2 billion in assets and 93 financial centers in New England and New York. Berkshire is headquartered in Boston and offers commercial, retail, wealth, and private banking solutions.

2Q 2024 Financial Highlights (comparisons are to the prior quarter unless otherwise noted).

Income Statement. GAAP income was $24.0 million, or $0.57 per share. Operating earnings totaled $23.2 million, or $0.55 per share. GAAP results improved from a loss in the prior quarter which included a non-operating loss on the sale of securities. Operating EPS improved 12% due to loan growth, higher fee income, and lower operating expenses.

Net interest income totaled $88.5 million in 2Q24 compared to $88.1 million in 1Q24.

Net interest margin increased 5 basis points linked quarter to 3.20% reflecting the benefit of loan growth and securities sales.

The earning asset yield increased 13 basis points.

The loan yield increased 5 basis points.

The cost of funds increased 8 basis points.

The cost of deposits increased 6 basis points.

Provision for credit losses on loans totaled $6.5 million.

Allowance for credit losses on loans increased $4.8 million.

Net loan charge-offs totaled $1.7 million.

Net annualized loan charge-off ratio of 0.07%, down sequentially for last six quarters.

GAAP and operating non-interest income totaled $20.1 million. Operating non-interest income increased $2.8 million linked quarter.

Gain on SBA loan sales increased $1.6 million to a five quarter high of $3.3 million

Non-interest expense totaled $70.9 million on a GAAP basis and $71.3 million on an operating basis. Operating non-interest expense decreased $1.1 million linked quarter.

Compensation and benefits expense decreased $609 thousand.

Occupancy and equipment expense decreased $634 thousand.

The efficiency ratio was 63.4% compared to 66.3% linked quarter.

Income tax expense was $7.2 million and the effective tax rate was 23.1%.

Loans. Total loans increased $143 million to $9.23 billion due to commercial loan growth. Problem loans decreased and the allowance for credit losses increased.

Commercial real estate loans increased $113 million to $4.71 billion.

Commercial and industrial loans increased $37 million to $1.42 billion.

Residential mortgage loans decreased $2 million to $2.67 billion. Loans held for sale included $47 million of seasoned mortgages pending sale (not related to the pending NY branch sale).

Consumer loans decreased $5 million to $425 million.

Included in assets held for sale were loans related to the branch sale totaling $55 million at period-end.

The allowance for credit losses to total loans was 1.22% at June 30, 2024, compared to 1.18% at prior quarter-end. Annualized net charge-offs were 0.07% of loans in the quarter.

Non-performing loans to total loans was 0.23% at June 30, 2024, down from 0.24% at prior quarter-end.

Deposits. Total deposits decreased $262 million to $9.62 billion.

Non-interest bearing deposits decreased $40 million to $2.22 billion.

Non-maturity interest bearing deposits decreased $166 million to $5.05 billion.

Time deposits decreased $56 million to $2.35 billion.

Excluded from total deposits were branch sale deposits totaling $474 million at period-end, which were included in liabilities held for sale.

Equity. Total shareholders’ equity increased by $3 million to $1.01 billion. The Company repurchased approximately 612 thousand shares totaling $13 million during the second quarter. Tangible book value per share advanced to $23.18 from $22.84.

2Q 2024 Corporate Responsibility and Sustainability Highlights

Berkshire expanded its Down Payment Assistance Program to help qualifying buyers achieve their dream of homeownership.

More than 1,000 Berkshire employees participated in 50 volunteer projects contributing more than 4,600 hours of service as part of Xtraordinary Day, the bank’s annual day of service.

Berkshire maintained its top quartile environmental, social and governance performance in the banking sector and was recognized among TIME’s America’s Best Mid-Size Companies 2024.

Conference Call and Investor Presentation. Berkshire will conduct a conference call/webcast at 9:00 a.m. eastern time on Thursday, July 18, 2024 to discuss results for the quarter and provide guidance about expected future results. Instructions for listening to the call may be found at the Company’s website at ir.berkshirebank.com. Additional materials relating to the call may also be accessed at this website. The call will be archived at the website and will be available for an extended period of time.

Forward Looking Statements: This document contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “remain,” “target” and similar expressions. There are many 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. You should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this document. Berkshire does not undertake any obligation to update forward-looking statements.

###

INVESTOR CONTACT

Kevin Conn

Investor Relations

617.641.9206

kaconn@berkshirebank.com

MEDIA CONTACT

Gary Levante

Corporate Communications

413.447.1737

glevante@berkshirebank.com

SELECTED FINANCIAL HIGHLIGHTS (1)

	At or for the Quarters Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,
	2024			2024			2023			2023			2023
NOMINAL AND PER SHARE DATA
Net earnings/(loss) per common share, diluted	$	0.57		$	(0.47	)	$	(0.03	)	$	0.45		$	0.55
Operating earnings per common share, diluted (2)(3)		0.55			0.49			0.47			0.50			0.55
Net income/(loss), (thousands)		24,025			(20,188	)		(1,445	)		19,545			23,861
Operating net income, (thousands) (2)(3)		23,168			20,934			20,190			21,516			23,878
Net interest income, (thousands) non FTE		88,532			88,140			88,421			90,334			92,759
Net interest income, FTE (5)		90,545			90,146			90,442			92,314			94,721
Total common shares outstanding, end of period (thousands)		42,959			43,415			43,501			43,822			44,033
Average diluted shares, (thousands)		42,508			43,028			43,101			43,347			43,532
Total book value per common share, end of period		23.58			23.26			23.27			21.70			22.11
Tangible book value per common share, end of period (2)(3)		23.18			22.84			22.82			21.23			21.60
Dividends per common share		0.18			0.18			0.18			0.18			0.18
Dividend payout ratio		32.74	%		N/M%			N/M %			40.56	%		33.47	%

PERFORMANCE RATIOS (4)
Return on equity		9.49	%		(7.93	)%		(0.60	)%		7.91	%		9.51	%
Operating return on equity (2)(3)		9.15			8.23			8.36			8.71			9.51
Return on tangible common equity (2)(3)		9.99			(7.73	)		(0.24	)		8.45			10.09
Operating return on tangible common equity (2)(3)		9.65			8.73			8.90			9.27			10.09
Return on assets		0.82			(0.69	)		(0.05	)		0.66			0.79
Operating return on assets (2)(3)		0.79			0.71			0.68			0.73			0.79
Net interest margin, FTE (5)		3.20			3.15			3.11			3.18			3.24
Efficiency ratio (3)		63.40			66.26			67.77			65.05			63.57

FINANCIAL DATA (in millions, end of period)
Total assets	$	12,219		$	12,147		$	12,431		$	12,140		$	12,090
Total earning assets		11,510			11,430			11,705			11,400			11,370
Total loans		9,229			9,086			9,040			8,984			8,882
Total funding liabilities		10,907			10,826			11,140			10,906			10,864
Total deposits		9,621			9,883			10,633			9,981			10,068
Loans/deposits (%)		96	%		92	%		85	%		90	%		88	%
Total accumulated other comprehensive (loss) net of tax, end of period	$	(115	)	$	(114	)	$	(143	)	$	(218	)	$	(186	)
Total shareholders' equity		1,013			1,010			1,012			951			973

ASSET QUALITY
Allowance for credit losses, (millions)	$	112		$	107		$	105		$	103		$	100
Net charge-offs, (millions)		(2	)		(4	)		(4	)		(5	)		(6	)
Net charge-offs (QTD annualized)/average loans		0.07	%		0.18	%		0.20	%		0.24	%		0.26	%
Provision (benefit)/expense, (millions)	$	6		$	6		$	7		$	8		$	8
Non-performing assets, (millions)		24			24			24			29			31
Non-performing loans/total loans		0.23	%		0.24	%		0.24	%		0.30	%		0.32	%
Allowance for credit losses/non-performing loans		525			500			492			386			353
Allowance for credit losses/total loans		1.22			1.18			1.17			1.14			1.13

CAPITAL RATIOS
Risk weighted assets, (millions)(6)	$	9,602		$	9,615		$	9,552		$	9,594		$	9,523
Common equity Tier 1 capital to risk weighted assets (6)		11.6	%		11.6	%		12.0	%		12.1	%		12.1	%
Tier 1 capital leverage ratio (6)		9.6			9.5			9.6			9.8			9.6
Tangible common shareholders' equity/tangible assets (3)		8.2			8.2			8.0			7.7			7.9

(1)	All financial tables presented are unaudited.
(2)	Reconciliations of non-GAAP financial measures, including all references to operating and tangible amounts, appear on pages 13 and 14.
(3)	Non-GAAP financial measure. Operating measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges
	primarily related to acquisitions and restructuring activities. See pages 13 and 14 for reconciliations of non-GAAP financial measures.
(4)	All performance ratios are annualized and are based on average balance sheet amounts, where applicable.
(5)	Fully taxable equivalent considers the impact of tax advantaged investment securities and loans.
(6)	Presented as projected for June 30, 2024 and actual for the remaining periods.

CONSOLIDATED BALANCE SHEETS

	June 30,			March 31,			December 31,			June 30,
(in thousands)	2024			2024			2023			2023
Assets
Cash and due from banks	$	112,085		$	111,676		$	148,148		$	120,285
Short-term investments		988,207			1,082,019			1,055,096			520,315
Total cash and cash equivalents		1,100,292			1,193,695			1,203,244			640,600

Trading securities, at fair value		5,699			5,909			6,142			6,405
Equity securities, at fair value		12,736			12,823			13,029			12,868
Securities available for sale, at fair value		611,711			625,857			1,022,285			1,340,331
Securities held to maturity, at amortized cost		520,239			531,820			543,351			563,765
Federal Home Loan Bank stock		35,010			20,522			22,689			34,714
Total securities		1,185,395			1,196,931			1,607,496			1,958,083
Less: Allowance for credit losses on investment securities		(65	)		(61	)		(68	)		(71	)
Net securities		1,185,330			1,196,870			1,607,428			1,958,012

Loans held for sale		52,072			6,345			2,237			8,708

Commercial real estate loans		4,706,810			4,593,692			4,527,012			4,315,202
Commercial and industrial loans		1,421,921			1,384,591			1,352,834			1,464,922
Residential mortgages		2,674,611			2,677,046			2,672,677			2,584,959
Consumer loans		425,184			430,424			487,163			517,319
Total loans		9,228,526			9,085,753			9,039,686			8,882,402
Less: Allowance for credit losses on loans		(112,167	)		(107,331	)		(105,357	)		(100,219	)
Net loans		9,116,359			8,978,422			8,934,329			8,782,183

Premises and equipment, net		55,893			57,832			68,915			76,903
Other intangible assets		17,319			18,460			19,664			22,074
Other assets		615,882			611,967			584,066			593,621
Assets held for sale		76,307			83,020			10,938			8,220
Total assets	$	12,219,454		$	12,146,611		$	12,430,821		$	12,090,321

Liabilities and shareholders' equity
Non-interest bearing deposits	$	2,222,012		$	2,261,794		$	2,469,164		$	2,594,528
NOW and other deposits		766,641			793,492			858,644			944,775
Money market deposits		3,278,753			3,411,672			3,565,516			3,005,081
Savings deposits		1,004,320			1,010,630			1,053,810			1,088,405
Time deposits		2,349,733			2,405,384			2,686,250			2,435,618
Total deposits		9,621,459			9,882,972			10,633,384			10,068,407

Federal Home Loan Bank advances		689,606			337,169			385,223			674,345
Subordinated borrowings		121,487			121,425			121,363			121,238
Total borrowings		811,093			458,594			506,586			795,583

Other liabilities		287,312			297,663			278,630			252,950
Liabilities held for sale		486,648			497,459			-			-
Total liabilities		11,206,512			11,136,688			11,418,600			11,116,940

Common shareholders' equity		1,012,942			1,009,923			1,012,221			973,381
Total shareholders' equity		1,012,942			1,009,923			1,012,221			973,381
Total liabilities and shareholders' equity	$	12,219,454		$	12,146,611		$	12,430,821		$	12,090,321

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Years Ended
	June 30,						June 30,
(in thousands, except per share data)	2024			2023			2024			2023
Interest income	$	154,109		$	145,425		$	306,115		$	277,741
Interest expense		65,577			52,666			129,443			87,449
Net interest income, non FTE		88,532			92,759			176,672			190,292
Non-interest income
Deposit related fees		8,561			8,571			16,866			16,882
Loan related fees		2,364			3,189			5,027			5,658
Gain on SBA loans		3,294			2,910			4,993			5,404
Wealth management fees		2,613			2,583			5,497			5,322
Fair value adjustments on securities		(42	)		(22	)		(157	)		212
Other		3,343			(137	)		5,217			222
Total non-interest income excluding sales of AFS securities		20,133			17,094			37,443			33,700
(Loss) on sale of AFS securities		-			-			(49,909	)		-
Total non-interest income		20,133			17,094			(12,466	)		33,700
Total net revenue		108,665			109,853			164,206			223,992

Provision expense for credit losses		6,499			8,000			12,499			16,999
Non-interest expense
Compensation and benefits		40,126			39,960			80,861			79,031
Occupancy and equipment		8,064			8,970			16,762			18,349
Technology		10,236			10,465			20,140			19,936
Professional services		2,757			2,526			5,433			5,803
Regulatory expenses		1,848			1,834			3,693			3,260
Amortization of intangible assets		1,140			1,205			2,345			2,410
Marketing		532			1,510			1,648			2,718
Merger, restructuring and other non-operating expenses		(384	)		21			3,233			(15	)
Other expenses		6,612			7,557			12,836			14,511
Total non-interest expense		70,931			74,048			146,951			146,003
Total non-interest expense excluding non-operating expenses		71,315			74,027			143,718			146,018

Income before income taxes	$	31,235		$	27,805		$	4,756		$	60,990
Income tax expense		7,210			3,944			919			9,492
Net income	$	24,025		$	23,861		$	3,837		$	51,498

Basic earnings per common share	$	0.57		$	0.55		$	0.09		$	1.18
Diluted earnings per common share	$	0.57		$	0.55		$	0.09		$	1.18

Weighted average shares outstanding:
Basic		42,437			43,443			42,602			43,564
Diluted		42,508			43,532			42,763			43,780

CONSOLIDATED STATEMENTS OF OPERATIONS (5 Quarter Trend)

	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,
(in thousands, except per share data)	2024			2024			2023			2023			2023
Interest income	$	154,109		$	152,006		$	150,537		$	148,021		$	145,425
Interest expense		65,577			63,866			62,116			57,687			52,666
Net interest income, non FTE		88,532			88,140			88,421			90,334			92,759
Non-interest income
Deposit related fees		8,561			8,305			8,481			8,792			8,571
Loan related fees		2,364			2,663			2,058			2,879			3,189
Gain on SBA loans		3,294			1,699			2,382			2,548			2,910
Wealth management fees		2,613			2,884			2,394			2,481			2,583
Fair value adjustments on securities		(42	)		(115	)		768			(467	)		(22	)
Other		3,343			1,874			591			1,232			(137	)
Total non-interest income excluding sales of AFS securities		20,133			17,310			16,674			17,465			17,094
Loss on sale of AFS securities		-			(49,909	)		(25,057	)		-			-
Total non-interest income		20,133			(32,599	)		(8,383	)		17,465			17,094
Total net revenue		108,665			55,541			80,038			107,799			109,853

Provision expense for credit losses		6,499			6,000			7,000			8,000			8,000
Non-interest expense
Compensation and benefits		40,126			40,735			40,095			40,155			39,960
Occupancy and equipment		8,064			8,698			8,553			8,816			8,970
Technology		10,236			9,904			11,326			10,616			10,465
Professional services		2,757			2,676			3,417			2,423			2,526
Regulatory expenses		1,848			1,845			1,854			1,905			1,834
Amortization of intangible assets		1,140			1,205			1,205			1,205			1,205
Marketing		532			1,116			1,107			1,552			1,510
Merger, restructuring and other non-operating expenses		(384	)		3,617			3,669			2,607			21
Other expenses		6,612			6,224			7,766			7,234			7,557
Total non-interest expense		70,931			76,020			78,992			76,513			74,048
Total non-interest expense excluding non-operating expenses		71,315			72,403			75,323			73,906			74,027


Income/(loss) before income taxes	$	31,235		$	(26,479	)	$	(5,954	)	$	23,286		$	27,805
Income tax expense/(benefit)		7,210			(6,291	)		(4,509	)		3,741			3,944
Net income/(loss)	$	24,025		$	(20,188	)	$	(1,445	)	$	19,545		$	23,861

Diluted earnings/(loss) per common share	$	0.57		$	(0.47	)	$	(0.03	)	$	0.45		$	0.55

Weighted average shares outstanding:
Basic		42,437			42,777			42,852			43,164			43,443
Diluted		42,508			43,028			43,101			43,347			43,532

AVERAGE BALANCES AND AVERAGE YIELDS AND COSTS

	Quarters Ended
	June 30, 2024							March 31, 2024							June 30, 2023
(in millions)	Average Balance		Interest (1)		Average Yield/Rate			Average Balance		Interest (1)		Average Yield/Rate			Average Balance		Interest (1)		Average Yield/Rate
Assets
Commercial real estate	$	4,649	$	77		6.52	%	$	4,553	$	75		6.53	%	$	4,283	$	67		6.16	%
Commercial and industrial loans		1,384		27		7.62			1,355		26		7.64			1,496		27		7.27
Residential mortgages		2,694		28		4.21			2,668		29		4.15			2,488		24		3.87
Consumer loans		430		8		7.47			465		8		7.24			524		9		7.28
Total loans		9,157		140		6.05			9,041		138		6.04			8,791		127		5.77
Securities (2)		1,332		8		2.44			1,726		10		2.38			2,236		13		2.27
Short-term investments and loans held for sale		597		8		5.07			489		6		5.07			560		7		4.94
New York branch loans held for sale (3)		57		1		5.86			18		-		5.72			-		-		-
Total earning assets		11,143		157		5.57			11,274		154		5.44			11,587		147		5.05
Goodwill and other intangible assets		18							19							22
Other assets		531							462							448
Total assets	$	11,692						$	11,755						$	12,057

Liabilities and shareholders' equity
Non-interest-bearing demand deposits	$	2,244	$	-		-	%	$	2,348	$	-		-	%	$	2,594	$	-		-	%
NOW and other		763		3		1.44			799		3		1.37			1,055		4		1.35
Money market		2,909		24		3.32			3,083		25		3.25			2,555		14		2.13
Savings		1,004		3		1.06			1,038		3		0.97			1,077		-		0.50
Time		2,376		25		4.22			2,561		26		4.07			2,287		18		3.07
Total deposits		9,296		55		2.35			9,829		57		2.29			9,568		36		1.51
Borrowings (4)		610		9		5.55			504		7		5.52			1,288		17		5.14
New York branch non-interest-bearing deposits held for sale (3)		97		-		-			30		-		-			-		-		-
New York branch interest-bearing deposits held for sale (3)		386		3		2.80			119		1		2.75			-		-		-
Total funding liabilities		10,389		67		2.53			10,482		65		2.45			10,856		53		1.94

Other liabilities		290							255							197
Total liabilities		10,679							10,737							11,053

Common shareholders' equity (5)		1,013							1,018							1,004
Total shareholders' equity		1,013							1,018							1,004
Total liabilities and shareholders' equity	$	11,692						$	11,755						$	12,057
Net interest margin, FTE						3.20							3.15							3.24

Supplementary data
Net Interest Income, non FTE		88.532							88.140							92.759
FTE income adjustment		2.013							2.006							1.962
Net Interest Income, FTE		90.545							90.146							94.721

(1)	Interest income and expense presented on a fully taxable equivalent basis.
(2)	Average balances for securities available-for-sale are based on amortized cost.
(3)	New York branch loans and deposits moved to held for sale on March 4, 2024.
(4)	Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet.
(5)	Unrealized gains and losses, net of tax, are included in average equity. Prior period balances and financial metrics have been updated to reflect the current presentation.

ASSET QUALITY ANALYSIS

	At or for the Quarters Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,
(in thousands)	2024			2024			2023			2023			2023
NON-PERFORMING ASSETS
Commercial real estate	$	5,976		$	4,762		$	4,453		$	5,288		$	1,509
Commercial and industrial loans		8,489			9,174			8,712			11,028			15,597
Residential mortgages		5,491			5,992			6,404			8,060			8,722
Consumer loans		1,392			1,526			1,838			2,260			2,560
Total non-performing loans		21,348			21,454			21,407			26,636			28,388
Repossessed assets		2,549			2,689			2,601			2,548			2,549
Total non-performing assets	$	23,897		$	24,143		$	24,008		$	29,184		$	30,937

Total non-performing loans/total loans		0.23	%		0.24	%		0.24	%		0.30	%		0.32	%
Total non-performing assets/total assets		0.20	%		0.20	%		0.19	%		0.24	%		0.26	%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$	107,331		$	105,357		$	102,792		$	100,219		$	97,991
Charged-off loans		(3,246	)		(5,636	)		(6,891	)		(6,744	)		(7,686	)
Recoveries on charged-off loans		1,583			1,610			2,456			1,317			1,914
Net loans charged-off		(1,663	)		(4,026	)		(4,435	)		(5,427	)		(5,772	)
Provision (benefit)/expense for loan credit losses		6,499			6,000			7,000			8,000			8,000
Balance at end of period	$	112,167		$	107,331		$	105,357		$	102,792		$	100,219

Allowance for credit losses/total loans		1.22	%		1.18	%		1.17	%		1.14	%		1.13	%
Allowance for credit losses/non-performing loans		525	%		500	%		492	%		386	%		353	%

NET LOAN CHARGE-OFFS
Commercial real estate	$	22		$	292		$	316		$	97		$	664
Commercial and industrial loans		(711	)		(1,772	)		(2,309	)		(3,345	)		(4,146	)
Residential mortgages		316			98			55			23			(143	)
Home equity		8			193			83			208			126
Other consumer loans		(1,298	)		(2,837	)		(2,580	)		(2,410	)		(2,273	)
Total, net	$	(1,663	)	$	(4,026	)	$	(4,435	)	$	(5,427	)	$	(5,772	)

Net charge-offs (QTD annualized)/average loans		0.07	%		0.18	%		0.20	%		0.24	%		0.26	%
Net charge-offs (YTD annualized)/average loans		0.13	%		0.18	%		0.26	%		0.28	%		0.29	%

DELINQUENT AND NON-PERFORMING LOANS	Balance		Percent of Total Loans			Balance		Percent of Total Loans			Balance		Percent of Total Loans			Balance		Percent of Total Loans			Balance		Percent of Total Loans
30-89 Days delinquent	$	18,494		0.20	%	$	27,682		0.30	%	$	22,140		0.24	%	$	18,700		0.21	%	$	15,147		0.17	%
90+ Days delinquent and still accruing		11,672		0.13	%		5,882		0.06	%		5,537		0.06	%		5,744		0.06	%		7,812		0.09	%
Total accruing delinquent loans		30,166		0.33	%		33,564		0.36	%		27,677		0.30	%		24,444		0.27	%		22,959		0.26	%
Non-performing loans		21,348		0.23	%		21,454		0.24	%		21,407		0.24	%		26,636		0.30	%		28,399		0.32	%
Total delinquent and non-performing loans	$	51,514		0.56	%	$	55,018		0.60	%	$	49,084		0.54	%	$	51,080		0.57	%	$	51,358		0.58	%

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 are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures 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 provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP operating earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP operating earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company’s GAAP financial information.

The Company utilizes the non-GAAP measure of operating earnings in evaluating operating trends, including components for operating revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations. These items primarily include restructuring costs. Restructuring costs generally consist of costs and losses associated with the disposition of assets and liabilities and lease terminations, including costs related to branch consolidations.

The Company also calculates operating earnings per share based on its measure of operating earnings and diluted common shares. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to merger and acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company’s performance. Adjustments in 2024 were primarily related to branch consolidations and loss on sale of AFS securities. Adjustments in 2023 were primarily related to branch consolidations, severance charges related to a workforce reduction, and loss on sale of AFS securities.

Management believes that the computation of non-GAAP operating earnings and operating earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA

		At or for the Quarters Ended
		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,
(in thousands)		2024			2024			2023			2023			2023
Total non-interest income		$	20,133		$	(32,599	)	$	(8,383	)	$	17,465		$	17,094
Adj: Loss on sale of AFS securities			-			49,909			25,057			-			-
Total operating non-interest income (1)		$	20,133		$	17,310		$	16,674		$	17,465		$	17,094

Total revenue	(A)	$	108,665		$	55,541		$	80,038		$	107,799		$	109,853
Adj: Loss on sale of AFS securities			-			49,909			25,057			-			-
Total operating revenue (1)	(B)	$	108,665		$	105,450		$	105,095		$	107,799		$	109,853

Total non-interest expense	(C)	$	70,931		$	76,020		$	78,992		$	76,513		$	74,048
Adj: Merger, restructuring and other non-operating expenses			384			(3,617	)		(3,669	)		(2,607	)		(21	)
Operating non-interest expense (1)	(D)	$	71,315		$	72,403		$	75,323		$	73,906		$	74,027

Pre-tax, pre-provision net revenue (PPNR)	(A-C)	$	37,734		$	(20,479	)	$	1,046		$	31,286		$	35,805
Operating pre-tax, pre-provision net revenue (PPNR) (1)	(B-D)		37,350			33,047			29,772			33,893			35,826

Net income/(loss)		$	24,025		$	(20,188	)	$	(1,445	)	$	19,545		$	23,861
Adj: Loss on sale of AFS securities			-			49,909			25,057			-			-
Adj: Restructuring expense and other non-operating expenses			(384	)		3,617			3,669			2,607			21
Adj: Income taxes (expense)/benefit			(473	)		(12,404	)		(7,091	)		(636	)		(4	)
Total operating income (1)	(E)	$	23,168		$	20,934		$	20,190		$	21,516		$	23,878

(in millions, except per share data)
Total average assets	(F)	$	11,692		$	11,755		$	11,862		$	11,860		$	12,057
Total average shareholders' equity	(G)		1,013			1,018			966			988			1,004
Total average tangible shareholders' equity (1)	(I)		995			999			946			967			981
Total accumulated other comprehensive (loss) net of tax, end of period			(115	)		(114	)		(143	)		(218	)		(186	)
Total tangible shareholders' equity, end of period (1)	(K)		996			991			993			930			951
Total tangible assets, end of period (1)	(L)		12,202			12,128			12,411			12,119			12,068

Total common shares outstanding, end of period (thousands)	(M)		42,959			43,415			43,501			43,822			44,033
Average diluted shares outstanding (thousands)	(N)		42,508			43,028			43,101			43,347			43,532

Earnings/(loss) per common share, diluted (1)		$	0.57		$	(0.47	)	$	(0.03	)	$	0.45		$	0.55
Operating earnings per common share, diluted (1)	(E/N)		0.55			0.49			0.47			0.50			0.55
Tangible book value per common share, end of period (1)	(K/M)		23.18			22.84			22.82			21.23			21.60
Total tangible shareholders' equity/total tangible assets (1)	(K/L)		8.16			8.17			8.00			7.68			7.88

Performance ratios (2)
Return on equity			9.49	%		(7.93	)%		(0.60	)		7.91	%		9.51	%
Operating return on equity (1)	(E/G)		9.15			8.23			8.36			8.71			9.51
Return on tangible common equity (1)(3)			9.99			(7.73	)		(0.24	)		8.45			10.09
Operating return on tangible common equity (1)(3)	(E+Q)/(I)		9.65			8.73			8.90			9.27			10.09
Return on assets			0.82			(0.69	)		(0.05	)		0.66			0.79
Operating return on assets (1)	(E/F)		0.79			0.71			0.68			0.73			0.79
Efficiency ratio (1)(6)	(D-Q)/(B+O+R)		63.40			66.26			67.77			65.05			63.57


Supplementary data (in thousands)
Tax benefit on tax-credit investments (4)	(O)		N/M			N/M		$	2,252		$	1,979		$	2,735
Non-interest income tax-credit investments amortization (5)	(P)		N/M			N/M			(2,060	)		(1,463	)		(2,210	)
Net income on tax-credit investments	(O+P)		N/M			N/M			193			516			525
Effective tax rate			23.1	%		23.8	%		75.7	%		16.1	%		14.2	%

Intangible amortization	(Q)	$	1,140		$	1,205		$	1,205		$	1,205		$	1,205
Fully taxable equivalent income adjustment	(R)		2,013			2,006			2,021			1,980			1,962

(1)	Non-GAAP financial measure.
(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)	Amortization of intangible assets is adjusted assuming a 27% marginal tax rate.
(4)	The tax benefit is the direct reduction to the income tax provision due to tax credit investments.
(5)	The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated.
(6)	As of January 1, 2024, the Company elected the proportional amortization method for certain tax credits eliminating the need to adjust the efficiency ratio for tax credit impacts.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED

		At or for the Six Months Ended
		June 30,			June 30,
(in thousands)		2024			2023
Total non-interest income		$	(12,466	)	$	33,700
Adj: Loss on sale of AFS securities			49,909			-
Total operating non-interest income (1)		$	37,443		$	33,700

Total revenue	(A)	$	164,206		$	223,992
Adj: Loss/(gain) on sale of AFS securities			49,909			-
Total operating revenue (1)	(B)	$	214,115		$	223,992

Total non-interest expense	(C)	$	146,951		$	146,003
Less: Merger, restructuring and other non-operating expenses			(3,233	)		15
Operating non-interest expense (1)	(D)	$	143,718		$	146,018

Pre-tax, pre-provision net revenue (PPNR)	(A-C)	$	17,255		$	77,989
Operating pre-tax, pre-provision net revenue (PPNR) (1)	(B-D)		70,397			77,974

Net income		$	3,837		$	51,498
Adj: Loss/(gain) on sale of AFS securities			49,909			-
Adj: Restructuring expense and other non-operating expenses			3,233			(15	)
Adj: Income taxes (expense)/benefit			(12,877	)		3
Total operating income (1)	(E)	$	44,102		$	51,486

(in millions, except per share data)
Total average assets	(F)	$	11,723		$	11,814
Total average shareholders' equity	(G)		1,015			991
Total average tangible shareholders' equity (1)	(I)		997			968
Total accumulated other comprehensive (loss) net of tax, end of period			(115	)		(186	)
Total tangible shareholders' equity, end of period (1)	(K)		996			951
Total tangible assets, end of period (1)	(L)		12,202			12,068

Total common shares outstanding, end of period (thousands)	(M)		42,959			44,033
Average diluted shares outstanding (thousands)	(N)		42,763			43,780

Earnings per common share, diluted (1)		$	0.09		$	1.18
Operating earnings per common share, diluted (1)	(E/N)		1.03			1.18
Tangible book value per common share, end of period (1)	(K/M)		23.18			21.60
Total tangible shareholders' equity/total tangible assets (1)	(K/L)		8.16			7.88

Performance ratios (2)
Return on equity			0.76	%		10.39	%
Operating return on equity (1)	(E/G)		8.69			10.39
Return on tangible common equity (1)(3)			1.11			11.01
Operating return on tangible common equity (1)(3)	(E+Q)/(I)		9.19			11.01
Return on assets			0.07			0.87
Operating return on assets (1)	(E/F)		0.75			0.87
Efficiency ratio (1)(6)	(D-Q)/(B+O+R)		64.81			61.50
Net interest margin, FTE			3.18			3.40


Supplementary data (in thousands)
Tax benefit on tax-credit investments (4)	(O)		N/M		$	5,632
Non-interest income charge on tax-credit investments (5)	(P)		N/M			(4,495	)
Net income on tax-credit investments	(O+P)		N/M			1,137

Intangible amortization	(Q)	$	2,345		$	2,410
Fully taxable equivalent income adjustment	(R)		4,019			3,869

(1)	Non-GAAP financial measure.
(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)	Amortization of intangible assets is adjusted assuming a 27% marginal tax rate.
(4)	The tax benefit is the direct reduction to the income tax provision due to tax credit investments.
(5)	The non-interest income amortization is the reduction to the tax-advantaged investments and are incurred as the tax credits are generated.
(6)	As of January 1, 2024, the Company elected the proportional amortization method for certain tax credits eliminating the need to adjust the efficiency ratio for tax credit impacts.

Cover	Jul. 18, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 18, 2024
Entity File Number	001-15781
Entity Registrant Name	BERKSHIRE HILLS BANCORP, INC.
Entity Central Index Key	0001108134
Entity Tax Identification Number	04-3510455
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	60 State Street
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	800
Local Phone Number	773-5601
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BHLB
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

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BHLB Berkshire Hills Bancorp Inc