PR Newswire | Oct 21, 2021 07:31AM EDT

10/21 06:30 CDT

Berkshire Hills Reports Earnings Per Share Growth BOSTON, Oct. 21, 2021

BOSTON, Oct. 21, 2021 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE: BHLB) today reported that third quarter 2021 earnings per share increased year-over-year by 212% to $1.31 compared to $0.42 in 2020, and compared to $0.43 in the prior quarter. Results in the most recent quarter included $0.78 per share in net non-operating income, consisting primarily of net gains on the sales of the assets and operations of the Company's insurance subsidiary and Berkshire Bank's Mid-Atlantic branches. Excluding these amounts, Berkshire's non-GAAP measure of third quarter adjusted net income totaled $0.53 per share, which was unchanged from the prior year and up 20% from $0.44 in the prior quarter. Results in the most recent quarter included a $4 million benefit ($0.06 per share after-tax) to the provision for credit losses. Per share earnings also benefited in the most recent quarter from the completion of the 2.5 million share repurchase program that was approved by the Board in April 2021.

THIRD QUARTER FINANCIAL HIGHLIGHTS (Comparisons are to the prior year unless otherwise stated; non-GAAP measures are reconciled on pages F-9 and F-10).

* $52 million net gain on the sale of insurance and Mid-Atlantic branch operations * 4% increase in total non-interest income excluding gains/(losses) * 66% decrease in net loan charge-offs to $2 million * $4 million benefit to credit loss provision expense due to a release of credit loss allowance * 72% reduction in wholesale funding to 4% of assets, including prepayment of most Federal Home Loan Bank borrowings (period-end balance) * Deposit costs down year-over-year to 0.22% from 0.61% * Stock repurchases of 1,755,058 shares (3.5% of outstanding stock) * Returned $54 million of capital to shareholders through buybacks and dividends amounting to 211% of adjusted net income

CEO Nitin Mhatre stated, "These solid results reflect the growing momentum associated with the second-quarter rollout of Berkshire's Exciting Strategic Transformation (BEST). This comprehensive transformation plan, designed to enhance value for all our stakeholders, has already led to improved focus on our long-term efficiency, our customers, and our communities."

"Exiting our Mid-Atlantic and insurance operations was a step in optimizing our operations and produced $52 million in net sale gains which bolstered third-quarter income. We completed our 2.5 million share repurchase program far ahead of the authorized time, returning a total of nearly $75 million in excess capital to shareholders through the repurchase of approximately 5% of our shares. We're well positioned to support other BEST initiatives in development including our recently announced consumer lending partnership with the fin-tech Upstart. We also announced our BEST Community Comeback initiative that will lend and invest to strengthen the economic health of our communities, an industry-leading commitment given the relative size of the program and our organization. We continued to record strong deposit growth during the quarter and our expanded banking teams are focused on building loan origination volumes."

Mr. Mhatre concluded: "Key measures of asset quality improved as our markets continue to recover from pandemic conditions and we are prepared to profitably serve that recovery. We announced further refreshment of our board of directors, welcoming David Brunelle into the position of Board Chair and Jeffrey Kip as a new director. And we're experiencing continued strong interest from customers and added several experienced, market-facing professionals to our team, demonstrating the value of our focus on social responsibility and strategy as other institutions focus on mergers."

RESULTS OF OPERATIONS

Earnings: Third quarter GAAP earnings per share (EPS) increased in 2021 to $1.31 from $0.42 in 2020, and from $0.43 in the second quarter of 2021. The increase in EPS was primarily due to the gains recorded on the sale in the most recent quarter of insurance operations and the Mid-Atlantic branches. Adjusted EPS, a non-GAAP measure which excludes these gains, totaled $0.53 in the third quarter of 2021, which was stable year-over-year and a 20% increase quarter-over-quarter from $0.44. This included a $4 million benefit ($0.06 per share after-tax) to the provision for credit losses on loans in the most recent quarter. For the most recent quarter, GAAP return on equity measured 22.2% and the GAAP return on assets was 2.14%. The non-GAAP measure of adjusted return on equity measured 8.9% and the adjusted return on assets measured 0.86%.

Revenue: Third quarter net interest income decreased year-over-year by $6 million, or 7%, and by $4 million, or 5%, compared to the linked quarter. The year-over-year change reflected lower loan balances. The quarter-over-quarter change was primarily due to a $3 million decrease in deferred fee income recognized on Paycheck Protection Program ("PPP") loans due to the completion of most loan forgiveness under the SBA guarantee program. It also reflected the 4% quarter-over-quarter decrease in average earning assets, including the impact of the branch sale.

The net interest margin decreased to 2.56% from 2.61% in the third quarter of 2020 and from 2.62% in the linked quarter. The Company further reduced deposits costs, which declined to 0.22% from 0.61% and 0.25% for the above respective periods. For these periods, the cost of funds decreased to 0.31% from 0.73% and 0.36%.

Total third quarter non-interest income excluding gains/(losses) on sales of securities and business operations increased year-over-year by $936 thousand, or 4%, and decreased quarter-over-quarter by $579 thousand, or 3%. In the most recent quarter, Berkshire's SBA lending revenue of $5 million exceeded the record result in the prior quarter due to continued strong volume and margins, and increased from $3 million in the third quarter of 2020. Wealth management fees increased by 15% year-over-year, and 5% quarter-over-quarter. The Company has recently announced the recruitment of seasoned bankers to support ongoing growth in both of these business lines. Insurance revenue decreased by $711 thousand quarter-over-quarter following the sale of insurance operations.

Other non-interest revenue declined due to $1.6 million in higher amortization expense related to new tax credit investment projects initiated during the most recent quarter. This was more than offset by the $2.2 million increase in investment tax credit benefits included as a component of income tax expense.

Credit Loss Provision:Berkshire recorded a $4 million benefit to the third quarter provision, compared to a charge of $1 million in the third quarter of 2020 and no provision in the linked quarter. This resulted from a $4 million release of the credit loss allowance due to stronger expected economic conditions and a reduction in loans and net charge-offs.

Expense:Third quarter non-interest expense decreased by $3.4 million, or 5%, year-over-year and increased quarter-over-quarter by $588 thousand, or 1%, to $69.5 million. These changes were primarily due to changes in merger, restructuring and other non-operating expenses which totaled $1.4 million in the most recent quarter. These charges are excluded from the Company's non-GAAP measure of adjusted non-interest expense. In the third quarter, these charges included $0.9 million related to the prepayment of Federal Home Loan Bank borrowings and $0.5 million of restructuring charges including reclassifying certain real estate premises to held for sale as part of the Company's consolidation of its operations. These initiatives are components of Berkshire's BEST strategic plan for optimizing profitability.

The non-GAAP measure of adjusted non-interest expense increased by 1% year-over-year and decreased by 1% quarter-over-quarter, measuring $68 million in the most recent quarter. These changes were primarily due to changes in professional services during these periods. Total branches have been reduced to 107 offices from 130 at the start of the year. Full time equivalent staff totaled 1,333 positions at period-end, compared to 1,507 positions at the start of the year. The effective income tax rate decreased quarter-over-quarter to 20% from 24% due to the increase in tax credit investments during the quarter. Tax credit investments provided $0.01 in EPS benefit in the most recent quarter, net of the related amortization recorded to non-interest income.

BALANCE SHEET (references are to period-end balances unless otherwise stated)

Assets:Total assets decreased during the third quarter by $0.4 billion, or 3%, to $11.8 billion due primarily to the sale of the Mid-Atlantic branch operations. The balances for these operations which were reported as held for sale at midyear 2021 included $253 million in loan balances and $633 million in deposit balances. At the third quarter-end, higher period-end payroll deposit balances were invested in short-term investments. Proceeds from third quarter loan runoff helped fund payoffs of borrowings, including prepayments of Federal Home Loan Bank borrowings. The ratio of loans/deposits decreased to 66% from 73% at the start of the quarter. Reflecting the sale gains recorded in the quarter, the ratio of equity/assets increased to 9.9% from 9.6% at the start of the quarter. Common stock repurchases distributed excess capital released by the reduction in assets. Per share measures of book value and the non-GAAP measure of tangible book value both increased by 4% compared to the start of the quarter.

Loans: Total period-end loans decreased in the third quarter by $396 million, or 5%, to $6.84 billion. The $246 million decrease in commercial loans was primarily due to a $127 million reduction in PPP loans and an $88 million reduction in loans outstanding to COVID sensitive commercial borrowers. The PPP loan balance decreased to $46 million from $173 million at the start of the quarter due to payoffs through forgiveness under the SBA guarantee program. Berkshire announced the recruitment of experienced bankers during the quarter as it positions to gain share based on its strong positioning to attract customers as current markets are impacted by merger activities of competitors. Consumer loans decreased by $35 million due primarily to ongoing targeted runoff of indirect auto loans. Residential mortgages decreased by $116 million. The Company is expanding its mortgage lending team and developing correspondent bank sources.

Asset Quality:Asset quality metrics continued to improve toward pre-pandemic levels during the third quarter. Total delinquent and non-accruing loans decreased year-over-year by 33% to $59 million, measuring 0.87% of total loans. Non-accruing loans decreased year-over-year by 22% to $37 million, measuring 0.54% of total loans, due primarily to $10 million in resolutions in the most recent quarter. Total COVID-19 related loan modifications decreased by 34% during the quarter to $65 million, measuring under 1% of period-end loans. The allowance for credit losses on loans decreased by $6 million during the quarter to $113 million, measuring 1.65% of total loans, which was unchanged from midyear.

Deposits and Borrowings: Total deposits increased in the third quarter by $452 million, or 5%, to $10.4 billion due primarily to a $369 million increase in period-end payroll deposit balances. Non-interest bearing demand deposit account balances increased by 7%, while higher cost time deposit balances decreased by 6%. Higher cost senior borrowings decreased by $204 million to $13 million, as most Federal Home Loan Bank borrowings were prepaid near the end of the quarter. Total higher cost wholesale funds decreased year-over-year to 4% of total assets from 12%. Quarter-over-quarter, the cost of deposits decreased to 0.22% from 0.25%, and the cost of funds decreased to 0.31% from 0.36%.

Equity: During the third quarter, Berkshire repurchased 1.755 million shares, completing the 2.5 million repurchase authorization approved by the Board in April, which totaled approximately 5% of outstanding shares for the full authorization. The third quarter repurchases were made at an average price of $27.33, totaling $48 million. The common equity tier 1 capital ratio increased to an estimated 15.3% from 14.3% in the prior quarter. During the most recent quarter, book value per share increased by 4% to $24.21 and the non-GAAP measure of tangible book value per share increased by 4% to $23.58.

ESG & CORPORATE RESPONSIBILITY UPDATE

Berkshire Bank is committed to purpose-driven, community-centered banking that enhances value for all stakeholders as it pursues its vision of being the leading socially responsible community bank. Learn more about the steps Berkshire is taking at berkshirebank.com/csr and in its most recent Corporate Responsibility Report.

Key developments in the quarter include:

* Launch of the BEST Community Comeback: Berkshire announced its "BEST Community Comeback" a $5 billion multi-year ESG and community commitment to fuel resilience and strengthen local communities. The multi-year plan focuses on four key areas: fueling small businesses, community financing and philanthropy, financial access and empowerment, and funding environmental sustainability. Additional information can be found at berkshirebank.com/comeback.

* Xtraordinary Day: As a kickoff to the Bank's "BEST Community Comeback," Berkshire Bank hosted its 5th annual "Xtraordinary Day of Service." Berkshire Bank employees were deployed in a virtual setting, volunteering for causes that support the small business ecosystem, equity and inclusion and basic community needs. More than 75% of Berkshire's workforce participated in the day.

* Current ESG Performance: The Company continued to improve its Environmental, Social and Governance (ESG) ratings, generally outperforming peers. As of September 30, 2021 the Company received ratings of: MSCI ESG- BBB; ISS ESG Quality Score - Environment: 2, Social: 1, Governance: 2; and Bloomberg ESG Disclosure- 47.81. The Company is also rated by Sustainalytics.

INVESTOR CONFERENCE CALL AND INVESTOR PRESENTATION

Berkshire will post an investor presentation at its website at ir.berkshirebank.com with additional financial information and other information about the quarter.

Berkshire will conduct a conference call/webcast at 10:00 a.m. Eastern Time on Thursday, October 21, 2021 to discuss 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:

https://www.incommglobalevents.com/registration/q4inc/8879/berkshire-hills-bancorp-q3-earnings-release-conference-call/

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. Additionally, participants may reach the registration link and access the webcast by logging in through the investor relations section of Berkshire's website at 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 844-200-6205 and using participant access code: 066744. Participants are requested to dial-in a few minutes before the scheduled start of the call. A telephone replay of the call will be available for one week by dialing 866-813-9403 and using access code: 331614. The webcast will be available on Berkshire's website for an extended period of time.

ABOUT BERKSHIRE HILLS BANCORP

Berkshire Hills Bancorp is the parent of Berkshire Bank, which is transforming what it means to bank its neighbors socially, humanly, and digitally to empower the financial potential of people, families, and businesses in its communities as it pursues its vision of being the leading socially responsible omni-channel community bank in the markets it serves. Berkshire Bank provides business and consumer banking, mortgage, wealth management, and investment services. Headquartered in Boston, Berkshire has approximately $11.8 billion in assets and operates 107 branch offices in New England and New York, and is a member of the Bloomberg Gender-Equality Index. To learn more, call 800-773-5601 or follow us on Facebook, Twitter, Instagram, and LinkedIn.

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," "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.

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 adjusted earnings in evaluating operating trends, including components for adjusted revenue and expense. These measures exclude items which the Company does not view as related to its normalized operations. These items primarily include securities gains/losses, other gains/losses, merger costs, restructuring costs, goodwill impairment, and discontinued operations. In 2020, the Company recorded a full impairment of its goodwill and exited its discontinued national mortgage banking operations. Other adjusted expense in 2020 was primarily related to costs of the separation with the former CEO, as well as consulting for the CEO succession process. A 2020 adjusted gain was recognized on the sale of a specialty commercial insurance business line. In 2021, the Company recorded a net gain of $52 million on the sale of the insurance subsidiary and the Mid-Atlantic branch operations. Expense adjustments in the first quarter were primarily related to branch consolidations. Adjustments of $1.4 million in the third quarter Federal Home Loan Bank borrowings prepayment costs. They also included other restructuring charges for efficiency initiatives in operations areas including writedowns on real estate moved to held for sale and severance related to staff reductions.

The Company utilizes Adjusted Pre-Provision Net Revenue ("Adjusted PPNR") which measures adjusted income before credit loss provision and tax expense. PPNR is used by the investment community due to the volatility and variability across banks related to credit loss provision expense under the Current Expected Credit Loss accounting standard. The Company also calculates Adjusted PPNR/assets in order to utilize the PPNR measure in assessing its comparative operating profitability.

Non-GAAP 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 adjusted income. The efficiency ratio is adjusted for adjusted 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.

CONTACTS

Investor Relations Contacts

Kevin Conn, SVP, Investor Relations & Corporate DevelopmentEmail: KAConn@berkshirebank.comTel: (617) 641-9206

David Gonci, Capital Markets DirectorEmail: dgonci@berkshirebank.comTel: (413) 281-1973

Media Contact:

Gary Levante, SVP, Corporate Responsibility & CultureEmail: glevante@berkshirebank.comTel: (413) 447-1737

TABLE CONSOLIDATED UNAUDITED FINANCIAL SCHEDULES INDEX

F-1 Selected Financial Highlights

F-2 Balance Sheets

F-3 Loan and Deposit Analysis

F-4 Statements of Operations

F-5 Statements of Operations (Five Quarter Trend)

F-6 Average Balances and Average Yields and Costs

F-7 Asset Quality Analysis

F-8 Asset Quality Analysis (continued)

F-9 Reconciliation of Non-GAAP Financial Measures

and Supplementary Data (Five Quarter Trend)

F-10 Reconciliation of Non-GAAP Financial Measures

and Supplementary Data (Year-to-Date)

BERKSHIRE HILLS BANCORP, INC.

SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED - (F-1)

Sept. 30, Dec. 31, March 31, June 30, Sept. 30,

2020 2020 2021 2021 2021

NOMINAL AND PER SHARE DATA

Net earnings per common $ 0.42 $ 0.30 $ 0.26 $ 0.43 $ 1.31 share, diluted

Adjusted earnings per 0.53 0.28 0.32 0.44 0.53 common share, diluted (2)

Net income, 21,225 15,009 13,031 21,636 63,749 (thousands)

Adjusted net income, 26,424 14,062 16,015 22,104 25,695 (thousands)(2)

Total common shares outstanding, 50,306 50,833 50,988 50,453 48,657 period-end (thousands)

Average diluted 50,329 50,355 50,565 50,608 48,744 shares, (thousands)

Total book value per common share, 23.03 23.37 23.05 23.30 24.21 (end of period)

Tangible book value per common share, 22.22 22.68 22.39 22.66 23.58 (end of period) (2)

Dividends per 0.12 0.12 0.12 0.12 0.12 common share

Full-time equivalent staff, 1,507 1,505 1,467 1,417 1,333 continuing operations

PERFORMANCE RATIOS (3)

Return on 7.50 % 5.22 % 4.50 % 7.37 % 22.18 % equity

Adjusted return on 9.33 4.89 5.53 7.53 8.94 equity (2)

Return on tangible 8.32 5.85 4.98 7.92 23.14 common equity (2)

Adjusted return on tangible 10.27 5.50 6.04 8.08 9.53 common equity (2)

Return on 0.67 0.48 0.42 0.70 2.14 assets

Adjusted return on 0.84 0.45 0.51 0.71 0.86 assets (2)

Net interest margin, fully taxable 2.61 2.61 2.62 2.62 2.56 equivalent (FTE) (4)(5)

Efficiency 65.39 71.03 71.32 67.82 68.76 ratio (2)

FINANCIAL DATA (in millions, end of period)

Total assets $ 12,614 $ 12,838 $ 12,757 $ 12,273 $ 11,846

Total earning 11,832 12,090 12,071 11,571 11,145 assets

Total loans 8,982 8,082 7,659 7,233 6,836

Total deposits 10,467 10,216 10,244 9,914 10,365

Loans/deposits 86 % 79 % 75 % 73 % 66 % (%)

Total shareholders' $ 1,179 $ 1,188 $ 1,175 $ 1,175 $ 1,178 equity

ASSET QUALITY

Allowance for credit losses, $ 134 $ 127 $ 124 $ 119 $ 113 (millions)

Net charge-offs, (6) (17) (10) (5) (2) (millions)

Net charge-offs (QTD 0.27 % 0.80 % 0.51 % 0.26 % 0.12 % annualized)/ average loans

Provision expense/ $ 1 $ 10 $ 7 $ - $ (4) (income), (millions)

Non-performing assets, 49 67 58 49 39 (millions)

Non-performing loans/total 0.53 % 0.80 % 0.73 % 0.66 % 0.54 % loans

Allowance for credit losses/ 284 196 222 250 304 non-performing loans

Allowance for credit losses/ 1.50 1.58 1.62 1.65 1.65 total loans

CAPITAL RATIOS

Common equity tier 1 capital to risk 13.2 % 13.8 % 14.2 % 14.3 % 15.3 % weighted assets(6)

Tier 1 capital leverage ratio 9.2 9.4 9.5 9.5 9.9 (6)

Tangible common shareholders' 8.9 9.0 9.0 9.3 9.7 equity/ tangible assets(2)

(1) Reconciliations of non-GAAP financial measures, including all references to adjusted and tangible amounts, appear on pages F-9 and F-10.

(2) Non-GAAP financial measure. adjusted measurements are non-GAAP financial measures that are adjusted to exclude net non-adjusted charges primarily related to acquisitions and restructuring activities. See pages F-9 and F-10 for reconciliations of non-GAAP financial measures.

(3) All performance ratios are annualized and are based on average balance sheet amounts, where applicable.

(4) Fully taxable equivalent considers the impact of tax advantaged investment securities and loans.

(5) The effect of purchase accounting accretion for loans, time deposits, and borrowings on the quarterly net interest margin was an increase in all quarters, which is shown sequentially as follows beginning with the earliest quarter and ending with the most recent quarter: 0.08%, 0.07%, 0.05%, 0.08%, 0.06%.

(6) Presented as projected for September 30, 2021 and actual for the remaining periods.

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED BALANCE SHEETS - UNAUDITED - (F-2)

September 30, December 31, June 30, September 30,

(in 2020 2020 2021 2021thousands)

Assets

Cash and due $ 90,537 $ 91,219 $ 98,262 $ 153,185from banks

Short-term 844,755 1,466,656 1,728,419 1,971,345investments

Total cashand 935,292 1,557,875 1,826,681 2,124,530short-terminvestments

Trading 9,525 9,708 8,853 8,574security

Marketableequity 31,993 18,513 15,709 15,601securities,at fair value

Securitiesavailable for 1,575,289 1,695,232 1,640,512 1,643,965sale, at fairvalue

Securitiesheld tomaturity, at 330,197 465,091 665,786 651,863amortizedcost

Federal HomeLoan Bankstock and 40,520 34,873 19,638 12,041otherrestrictedsecurities

Total 1,987,524 2,223,417 2,350,498 2,332,044securities

Less:Allowance forcredit losses (96) (104) (130) (125)on investmentsecurities

Net 1,987,428 2,223,313 2,350,368 2,331,919securities

Loans held 15,854 17,748 6,494 5,176for sale

Total loans 8,982,336 8,081,519 7,232,591 6,836,235

Less:Allowance for (134,414) (127,302) (119,044) (112,916)credit losseson loans

Net loans 8,847,922 7,954,217 7,113,547 6,723,319

Premises andequipment, 117,116 112,663 104,680 99,233net

Other real 40 149 85 -estate owned

Goodwill andother 40,947 34,819 32,203 30,907intangibleassets

Other assets 656,892 619,925 562,691 527,049

Assets held - 317,304 276,576 3,743for sale (1)

Assets fromdiscontinued 12,966 - - -operations

Total assets $ 12,614,457 $ 12,838,013 $ 12,273,325 $ 11,845,876

Liabilitiesandshareholders'equity

Demand $ 2,585,173 $ 2,484,249 $ 2,819,012 $ 3,022,821deposits

NOW and other 1,522,289 1,003,005 1,696,762 1,982,089deposits

Money market 2,516,168 3,371,353 2,398,256 2,438,832deposits

Savings 952,836 972,116 1,065,428 1,095,959deposits

Time deposits 2,890,093 2,385,085 1,934,442 1,825,714

Total 10,466,559 10,215,808 9,913,900 10,365,415deposits

Senior 605,483 474,357 217,847 13,369borrowings

Subordinated 97,223 97,280 97,396 97,454borrowings

Total 702,706 571,637 315,243 110,823borrowings

Other 251,220 232,730 222,105 191,563liabilities

Liabilitiesheld for sale - 630,065 646,688 -(1)

Liabilitiesfrom 14,947 - - -discontinuedoperations

Total 11,435,432 11,650,240 11,097,936 10,667,801liabilities

Preferredshareholders' 20,325 - - -equity

Commonshareholders' 1,158,700 1,187,773 1,175,389 1,178,075equity

Totalshareholders' 1,179,025 1,187,773 1,175,389 1,178,075equity

Totalliabilitiesand $ 12,614,457 $ 12,838,013 $ 12,273,325 $ 11,845,876shareholders'equity

(1) For June 30, 2021 and December 31, 2020, balance includes loans anddeposits from branch sales in the Mid-Atlantic region.



BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED - (F-3)

LOAN ANALYSIS

Growth %

Quarter Year(in December 31, 2020 June 30, 2021 September 30, 2021 ended tomillions) Balance Balance Balance September Date 30, 2021

Totalcommercial $ 3,647 $ 3,652 $ 3,565 (2) % (2) %real estate

Commercialand 1,326 1,286 1,254 (2) (5)industrialloans

PaycheckProtection 633 173 46 (73) (93)Program (PPP)Loans

Totalcommercial 5,606 5,111 4,865 (5) (13)loans

Totalresidential 1,813 1,559 1,443 (7) (20)mortgages

Home equity 295 270 264 (2) (11)

Auto and 368 293 264 (10) (28)other

Totalconsumer 663 563 528 (6) (20)loans

Total loans $ 8,082 $ 7,233 $ 6,836 (5) % (15) %

DEPOSIT ANALYSIS

Growth %

Quarter Year(in December 31, 2020 June 30, 2021 September 30, 2021 ended tomillions) Balance Balance Balance September Date 30, 2021

Non-interest $ 2,484 $ 2,819 $ 3,023 7 % 22 %bearing

NOW and 1,003 1,697 1,982 17 98other

Money market 3,372 2,398 2,439 2 (28)

Savings 972 1,065 1,096 3 13

Time 2,385 1,935 1,825 (6) (23)deposits

Total $ 10,216 $ 9,914 $ 10,365 5 % 1 %deposits (1)

(1) Included in total deposits are brokered deposits of $317.1 million, $358.4million and $610.6 million at September 30, 2021, June 30, 2021, and December31, 2020, respectively.

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - (F-4)

Three Months Ended Nine Months Ended

September 30, September 30,

(in thousands,except per share 2021 2020 2021 2020data)

Interest 79,688 97,768 253,205 317,651income

Interest 8,320 20,713 31,351 76,578expense

Net interestincome fromcontinuing 71,368 77,055 221,854 241,073operations, notFTE

Non-interestincome fromcontinuingoperations

Deposit related 7,657 7,062 22,291 20,382fees

Loan fees and 8,285 4,988 25,962 12,007revenue

Insurancecommissions and 1,581 2,660 7,003 8,451fees

Wealth management 2,653 2,299 7,944 6,926fees

Mortgage banking 461 2,044 1,797 4,647originations

Other 1,279 1,927 5,638 492

Total non-interestincome excluding 21,916 20,980 70,635 52,905gains/(losses)

Securities(losses)/gains, (166) (1,017) (681) (9,925)net

Gain on sale ofbusiness 51,885 - 51,885 -operations andassets, net

Total non-interest 73,635 19,963 121,839 42,980income

Total net revenuefrom continuing 145,003 97,018 343,693 284,053operations

Total net revenuefrom continuingoperations 93,284 98,035 292,489 293,978excluding (losses)/gains

Provision for (4,000) 1,200 2,500 65,878credit losses

Non-interestexpense fromcontinuingoperations

Compensation and 37,068 34,809 112,773 111,121benefits

Occupancy and 10,421 11,084 32,044 32,411equipment

Technology and 8,397 8,540 25,204 24,376communications

Professional 3,180 2,567 13,495 7,852services

Other expenses 8,969 10,527 28,053 33,605

Merger,restructuring andother 1,425 5,316 4,917 559,078non-operatingexpenses

Total non-interest 69,460 72,843 216,486 768,443expense

Total non-interestexpense excludingmerger, 68,035 67,527 211,569 209,365restructuring andother

Income/(loss) fromcontinuingoperations before $ 79,543 $ 22,975 $ 124,707 $ (550,268)incometaxes

Income tax expense 15,794 (68) 26,291 (18,194)/(benefit)

Net income/(loss)from continuing $ 63,749 $ 23,043 $ 98,416 $ (532,074)operations

(Loss) fromdiscontinued $ - $ (2,477) $ - $ (21,741)operations beforeincome taxes

Income tax - (659) - (5,789)(benefit)

Net (loss) fromdiscontinued $ - $ (1,818) $ - $ (15,952)operations

Net income/(loss) $ 63,749 $ 21,225 $ 98,416 $ (548,026)

Preferred stock - 58 - 313dividend

Income/(loss)available to $ 63,749 $ 21,167 $ 98,416 $ (548,339)commonshareholders

Basic earnings/(loss) per commonshare:

Continuing $ 1.32 $ $ 1.98 $ Operations 0.46 (10.58)

Discontinued - (0.04) - (0.32)Operations

Total $ 1.32 $ $ 1.98 $ 0.42 (10.90)

Diluted earnings/(loss) per commonshare:

Continuing $ 1.31 $ 0.46 $ 1.97 $ (10.58)Operations

Discontinued - (0.04) - (0.32)Operations

Total $ 1.31 $ $ 1.97 $ 0.42 (10.90)

Weighted averagesharesoutstanding:

Basic 48,395 50,329 49,672 50,256

Diluted 48,744 50,329 49,963 50,256

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (5 Quarter Trend) - UNAUDITED - (F-5)

Sept. 30, Dec. 31, March 31, June 30, Sept. 30,

(in thousands,except per share 2020 2020 2021 2021 2021data)

Interest 97,768 92,131 88,153 85,364 79,688income

Interest 20,713 16,422 13,060 9,971 8,320expense

Net interest incomefrom continuing 77,055 75,709 75,093 75,393 71,368operations, not FTE

Non-interestincome fromcontinuingoperations

Deposit related 7,062 7,523 7,126 7,508 7,657fees

Loan fees and 4,988 4,833 10,246 7,431 8,285revenue

Insurancecommissions and 2,660 2,319 3,130 2,292 1,581fees

Wealth management 2,299 2,359 2,772 2,519 2,653fees

Mortgage banking 2,044 543 802 534 461originations

Other 1,927 2,105 2,148 2,211 1,279

Total non-interestincome excluding 20,980 19,682 26,224 22,495 21,916(losses)/gains

Securities(losses)/gains, (1,017) 2,405 (31) (484) (166)net

Gain on sale ofbusiness - 1,240 - - 51,885operations andassets, net

Total non-interest 19,963 23,327 26,193 22,011 73,635income

Total net revenuefrom continuing 97,018 99,036 101,286 97,404 145,003operations

Total net revenuefrom continuing 98,035 95,391 101,317 97,888 93,284operations excluding(losses)/gains

Provision for 1,200 10,000 6,500 - (4,000)credit losses

Non-interestexpense fromcontinuingoperations

Compensation and 34,809 36,719 38,735 36,970 37,068benefits

Occupancy and 11,084 10,948 11,024 10,599 10,421equipment

Technology and 8,540 7,988 8,593 8,214 8,397communications

Professional 2,567 4,055 6,614 3,701 3,180services

Other expenses 10,527 11,563 9,702 9,382 8,969

Merger,restructuring andother 5,316 523 3,486 6 1,425non-operatingexpenses

Total non-interest 72,843 71,796 78,154 68,872 69,460expense

Total non-interestexpense excludingmerger, 67,527 71,273 74,668 68,866 68,035restructuring andother

Income fromcontinuing $ 22,975 $ 17,240 $ 16,632 $ 28,532 $ 79,543operations beforeincome taxes

Income tax expense (68) (1,659) 3,601 6,896 15,794/(benefit)

Net income fromcontinuing $ 23,043 $ 18,899 $ 13,031 $ 21,636 $ 63,749operations

(Loss) fromdiscontinued $ (2,477) $ (5,114) $ $ - $ -operations before -income taxes

Income tax (659) (1,224) - - -(benefit)

Net (loss) from $ discontinued $ (1,818) $ (3,890) - $ - $ -operations

Net income $ 21,225 $ 15,009 $ 13,031 $ 21,636 $ 63,749

Preferred stock 58 - - - -dividend

Income availableto common $ 21,167 $ 15,009 $ 13,031 $ 21,636 $ 63,749shareholders

Diluted earnings/(loss) per commonshare:

Continuing $ 0.46 $ 0.38 $ 0.26 $ 0.43 $ 1.31Operations

Discontinued (0.04) (0.08) - - -Operations

Total $ 0.42 $ $ 0.26 $ 0.43 $ 1.31 0.30

Weighted averagesharesoutstanding:

Basic 50,329 50,308 50,330 50,321 48,395

Diluted 50,329 50,355 50,565 50,608 48,744

BERKSHIRE HILLS BANCORP, INC.

AVERAGE BALANCES AND AVERAGE YIELDS AND COSTS - UNAUDITED - (F-6)

Dec. 31, 2020 March 31, 2021 June 30, 2021 Sept. 30, 2021 Sept. 30, 2020

Average Average Average Average Average Average Average Average Average Average(in millions) Balance Yield/ Balance Yield/ Balance Yield/ Balance Yield/ Balance Yield/ Rate Rate Rate Rate Rate

Assets

Commercial real 3,986 3.52 % 3,843 3.34 % 3,630 3.27 % 3,625 3.46 % 3,577 3.40 %estate

Commercial and 2,192 3.88 2,056 4.05 1,865 4.62 1,605 4.74 1,370 4.78industrial loans

Residential 2,224 3.78 1,971 3.78 1,740 3.71 1,604 3.79 1,499 3.65mortgages

Consumer loans 801 3.59 726 3.41 634 3.79 582 3.80 545 3.95

Total loans (1) 9,203 3.68 8,596 3.62 7,869 3.73 7,416 3.84 6,991 3.77

Securities (2) 1,874 2.78 1,968 2.69 2,195 2.36 2,259 2.17 2,312 2.09

Short-terminvestments and loans 766 0.21 977 0.14 1,351 0.13 1,750 0.10 1,762 0.17held for sale

Mid-Atlantic region - - 101 4.27 295 4.09 269 3.96 155 3.82loans held for sale

Total earning assets 11,843 3.31 11,642 3.17 11,710 3.07 11,694 2.96 11,220 2.86(3)

Goodwill and other 41 40 34 33 31intangible assets

Other assets 760 752 724 690 674

Assets fromdiscontinued 16 12 - - -operations

Total assets 12,660 12,446 12,468 12,417 11,925

Liabilities andshareholders' equity

NOW and other 1,244 0.24 % 1,279 0.17 % 1,325 0.15 % 1,389 0.07 % 1,316 0.05 %

Money market 2,674 0.38 2,756 0.32 2,802 0.27 2,751 0.18 2,716 0.16

Savings 940 0.10 967 0.08 1,003 0.08 1,054 0.05 1,112 0.04

Time 3,056 1.63 2,629 1.35 2,266 1.12 2,013 0.94 1,893 0.86

Totalinterest-bearing 7,914 0.81 7,631 0.62 7,396 0.48 7,207 0.35 7,037 0.31deposits

Borrowings 777 2.36 658 2.50 500 2.78 381 3.12 253 3.89

Mid-Atlantic regioninterest-bearing - - 180 0.80 518 0.60 517 0.51 306 0.51deposits

Totalinterest-bearing 8,691 0.95 8,469 0.77 8,414 0.63 8,105 0.49 7,596 0.43liabilities

Non-interest-bearing 2,559 2,542 2,537 2,787 2,901demand deposits

Other liabilities 254 279 358 351 279(4)

Liabilities fromdiscontinued 23 6 - - -operations

Total liabilities 11,527 11,296 11,309 11,243 10,776

Preferred 20 7 - - -shareholders' equity

Common shareholders' 1,113 1,143 1,159 1,174 1,149equity

Total shareholders' 1,133 1,150 1,159 1,174 1,149equity

Total liabilities and 12,660 12,446 12,468 12,417 11,925shareholders' equity

Net interest spread 2.36 % 2.40 % 2.44 % 2.47 % 2.43 %

Net interest margin, 2.61 2.61 2.62 2.62 2.56FTE (5)

Cost of funds 0.73 0.60 0.48 0.36 0.31

Cost of deposits 0.61 0.47 0.36 0.25 0.22

Supplementary data

Net Interest Income, 77 76 75 75 71not FTE

Fully taxableequivalent income 2 1 1 2 2adjustment

Net Interest Income, 79 77 77 77 73FTE

Average PPP loans 707 685 546 321 90

Average loans 8,496 7,911 7,323 7,095 6,901excluding PPP loans

Total PPP loans, end 708 633 444 173 46of period

Total loans excludingPPP loans, end of 8,274 7,448 7,215 7,059 6,790period

PPP interest income 4 6 7 5 2

Total averagenon-maturity 7,417 7,544 7,666 7,981 8,045deposits

Total average 10,473 10,173 9,932 9,994 9,938deposits

Purchased loan 3 2 1 2 2accretion

Total average 1,091 1,110 1,125 1,141 1,118tangible equity (6)

(1) Total loans include non-accruing loans.

(2) Average balances for securities available-for-sale are based on amortizedcost.

(3) Excludes discontinued operations for presentation purposes. Performanceratios are calculated including the impact of discontinued operations.

(4) Includes the Mid-Atlantic region non-interesting bearing deposits. As ofSeptember 30, 2021 and December 31, 2020, the Mid-Atlantic region averagenon-interest bearing deposits were $78 million and $37 million, respectively.

(5) The effect of PPP loans on the quarterly net interest margin is shownsequentially as follows beginning with the earliest quarter and ending with themost recent quarter: (0.01%), 0.05%, 0.11%, 0.11%, 0.05%. This calculationexcludes gross interest income on PPP loans and average PPP loan balances.

(6) See page F-9 for details on the calculation of total average tangibleequity.

BERKSHIRE HILLS BANCORP, INC.

ASSET QUALITY ANALYSIS - UNAUDITED - (F-7)

Sept. 30, Dec. 31, March 31, June 30, Sept. 30,

(in thousands) 2020 2020 2021 2021 2021

NON-PERFORMINGASSETS

Non-accruingloans:

Commercial $ 14,777 $ 35,581 $ 28,325 $ 22,799 $ 14,845real estate

Commercial andindustrial 15,035 12,921 9,371 9,427 7,140loans

Residential 7,928 8,347 10,674 9,238 9,763mortgages

Consumer loans 9,650 8,099 7,447 6,141 5,399

Totalnon-accruing 47,390 64,948 55,817 47,605 37,147loans

Other real 401 149 149 85 -estate owned

Repossessed 1,646 1,932 1,701 1,666 1,664assets

Totalnon-performing $ 49,437 $ 67,029 $ 57,667 $ 49,356 $ 38,811assets

Totalnon-accruing 0.53% 0.80% 0.73% 0.66% 0.54%loans/totalloans

Totalnon-accruingloans/total 0.57% 0.87% 0.77% 0.67% 0.55%loans excludingPPP loans

Totalnon-performing 0.39% 0.52% 0.45% 0.40% 0.33%assets/totalassets

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

Balance atbeginning of $ 139,394 $ 134,414 $ 127,302 $ 123,800 $ 119,044period

Charged-off (7,776) (18,314) (11,460) (7,248) (4,334)loans

Recoveries oncharged-off 1,580 1,209 1,465 2,492 2,206loans

Net loans (6,196) (17,105) (9,995) (4,756) (2,128)charged-off

Provision forloan credit 1,216 9,993 6,493 - (4,000)losses

Balance at end $ 134,414 $ 127,302 $ 123,800 $ 119,044 $ 112,916of period

Allowance forcredit losses/ 1.50% 1.58% 1.62% 1.65% 1.65%total loans

Allowance forcredit losses/total loans 1.62% 1.71% 1.72% 1.69% 1.66%excluding PPPloans

Allowance forcredit losses/ 284% 196% 222% 250% 304%non-accruingloans

NET LOANCHARGE-OFFS

Commercial $ (635) $ (11,862) $ (6,959) $ (2,325) $ (1,391)real estate

Commercial andindustrial (5,551) (5,089) (2,662) (2,331) 110loans

Residential 517 250 80 176 (677)mortgages

Home equity (57) 141 (42) (136) 106

Auto and other (470) (545) (412) (140) (276)consumer

Total, net $ (6,196) $ (17,105) $ (9,995) $ (4,756) $ (2,128)

Net charge-offs(QTD 0.27% 0.80% 0.51% 0.26% 0.12%annualized)/average loans

Net charge-offs(YTD 0.29% 0.41% 0.51% 0.39% 0.30%annualized)/average loans

BERKSHIRE HILLS BANCORP, INC.

ASSET QUALITY ANALYSIS - UNAUDITED (F-8)

September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021

Percent Percent Percent Percent Percent(in thousands) Balance of Balance of Balance of Balance of Balance of Total Total Total Total Total Loans Loans Loans Loans Loans

30-89 Days $ 27,626 0.31% $ 16,310 0.20% $ 28,565 0.37% $ 15,483 0.22% $ 18,365 0.27%delinquent

90+ Daysdelinquent and 12,876 0.14% 11,450 0.14% 6,124 0.08% 3,129 0.04% 3,803 0.06%still accruing

Total accruing 40,502 0.45% 27,760 0.34% 34,689 0.45% 18,612 0.26% 22,168 0.33%delinquent loans

Non-accruing loans 47,390 0.53% 64,948 0.80% 55,817 0.73% 47,605 0.66% 37,147 0.54%

Total delinquentand non-accruing $ 87,892 0.98% $ 92,708 1.14% $ 90,506 1.18% $ 66,217 0.92% $ 59,315 0.87%loans

BERKSHIRE HILLS BANCORP, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED- (F-9)

Sept. 30, Dec. 31, March 31, June 30, Sept. 30,

(in thousands) 2020 2020 2021 2021 2021

Total revenue from continuing operations (A) $ 97,018 $ 99,036 $ 101,286 $ 97,404 $ 145,003

Adj: Net securities losses/(gains) (1) 1,017 (2,405) 31 484 166

Adj: Net (gains) on sale of business operations and assets - (1,240) - - (51,885)

Total adjusted revenue (2) (B) $ 98,035 $ 95,391 $ 101,317 $ 97,888 $ 93,284

Total non-interest expense from continuing operations (C) $ 72,843 $ 71,796 $ 78,154 $ 68,872 $ 69,460

Less: Merger, restructuring and other expense (5,316) (523) (3,486) (6) (1,425)

Adjusted non-interest expense (2) (D) $ 67,527 $ 71,273 $ 74,668 $ 68,866 $ 68,035

Pre-tax, pre-provision net revenue (PPNR) from continuing operations (A-C) $ 24,175 $ 27,240 $ 23,132 $ 28,532 $ 75,543

Adjusted pre-tax, pre-provision net revenue (PPNR) (B-D) 30,508 24,118 26,649 29,022 25,249

Net income $ 21,225 $ 15,009 $ 13,031 $ 21,636 $ 63,749

Adj: Net securities losses/(gains) (1) 1,017 (2,405) 31 484 166

Adj: Net (gains) on sale of business operations and assets - (1,240) - - (51,885)

Adj: Restructuring expense and other expense 5,316 523 3,486 6 1,425

Adj: Loss from discontinued operations before income taxes 2,477 5,114 - - -

Adj: Income taxes benefit/(expense) (3,611) (2,939) (533) (22) 12,240

Total adjusted income (2) (E) $ 26,424 $ 14,062 $ 16,015 $ 22,104 $ 25,695

(in millions, except per share data)

Total average assets (F) $ 12,660 $ 12,446 $ 12,468 $ 12,417 $ 11,925

Total average shareholders' equity (G) 1,133 1,150 1,159 1,174 1,149

Total average tangible shareholders' equity (2)(3) (H) 1,091 1,110 1,125 1,141 1,118

Total average tangible common shareholders' equity (2)(3) (I) 1,071 1,103 1,125 1,141 1,118

Total tangible shareholders' equity, period-end (2)(3) (J) 1,138 1,153 1,142 1,143 1,147

Total tangible common shareholders' equity, period-end (2)(3) (K) 1,118 1,153 1,142 1,143 1,147

Total tangible assets, period-end (2)(3) (L) 12,574 12,803 12,724 12,241 11,815

Total common shares outstanding, period-end (thousands) (M) 50,306 50,833 50,988 50,453 48,657

Average diluted shares outstanding (thousands) (N) 50,329 50,355 50,565 50,608 48,744

GAAP earnings per common share, diluted(2) $ 0.42 $ $ $ $ 0.30 0.26 0.43 1.31

Adjusted earnings per common share, diluted (2) (E/N) 0.53 0.28 0.32 0.44 0.53

Tangible book value per common share, period-end (2) (K/M) 22.22 22.68 22.39 22.66 23.58

Total tangible shareholders' equity/total tangible assets (2) (J/L) 9.05 9.01 8.98 9.34 9.71

Performance ratios (4)

GAAP return on equity 7.50 % 5.22 % 4.50 % 7.37 22.18 %

Adjusted return on equity (2) (E/G) 9.33 4.89 5.53 7.53 8.94

Return on tangible common equity (2)(5) 8.32 5.85 4.98 7.92 23.14

Adjusted return on tangible common equity (2)(5) (E+Q)/(I) 10.27 5.50 6.04 8.08 9.53

GAAP return on assets 0.67 0.48 0.42 0.70 2.14

Adjusted return on assets(2) 0.84 0.45 0.51 0.71 0.86

PPNR from continuing operations/assets (2) 0.76 0.88 0.74 0.92 2.53

Adjusted PPNR/assets (2) 0.97 0.78 0.85 0.93 0.85

Efficiency ratio (2)(6) (D-Q)/ 65.39 71.03 71.32 67.82 68.76 (B+O+R)

Net interest margin, FTE 2.61 2.61 2.62 2.62 2.56

Supplementary data (in thousands)

Tax benefit on tax-credit investments (7) (O) $ 1,377 $ 1,334 $ $ $ 2,195 41 79

Non-interest income charge on tax-credit investments (8) (P) (1,090) (971) (33) (175) (1,789)

Net income on tax-credit investments (O+P) 287 363 9 (96) 406

Intangible amortization (Q) $ 1,530 $ 1,513 $ 1,319 $ 1,297 $ 1,296

Fully taxable equivalent income adjustment (R) 1,512 1,485 1,494 1,660 1,586

(1) Net securities losses/(gains) include the change in fair value of theCompany's equity securities in compliance with the Company's adoption of ASU2016-01.

(2) Non-GAAP financial measure.

(3) Total tangible shareholders' equity is computed by taking totalshareholders' equity less the intangible assets at period-end. Total tangibleassets is computed by taking intangible assets at period-end.

(4) Ratios are annualized and based on average balance sheet amounts, whereapplicable. Quarterly data may not sum to year-to-date data due to rounding.

(5) Adjusted return on tangible equity is computed by dividing the totaladjusted income/(loss) adjusted for the tax-effected amortization of intangibleassets, assuming a 27% marginal rate, by tangible equity.

(6) Efficiency ratio is computed by dividing total adjusted tangiblenon-interest expense by the sum of total net interest income on a fully taxableequivalent basis and total adjusted non-interest income adjusted to include taxcredit benefit of tax shelter investments. The Company uses this non-GAAPmeasure to provide important information regarding its operational efficiency.

(7) The tax benefit is the direct reduction to the income tax provision due totax credits and deductions generated from investments in historic rehabilitation and low-income housing.

(8) The non-interest income charge is the reduction to the tax-advantagedinvestments, 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 Nine Months Ended

Sept. 30, Sept. 30,

(in thousands) 2020 2021

Total revenue from continuing operations (A) $ 284,053 $ 343,693

Adj: Net securities losses (1) 9,925 681

Adj: Net (gains) on sale of business operations and assets - (51,885)

Total adjusted revenue (2) (B) $ 293,978 $ 292,489

Total non-interest expense from continuing operations (C) $ 768,443 $ 216,486

Less: Merger, restructuring and other expense (5,316) (4,917)

Less: Goodwill impairment (553,762) -

Adjusted non-interest expense (2) (D) $ 209,365 $ 211,569

Pre-tax, pre-provision net revenue (PPNR) from continuing operations (A-C) $ (484,390) $ 127,207

Adjusted pre-tax, pre-provision net revenue (PPNR) (B-D) 84,613 80,920

Net income/(loss) $ (548,026) $ 98,416

Adj: Net securities losses (1) 9,925 681

Adj: Goodwill impairment 553,762 -

Adj: Net (gains) on sale of business operations and assets - (51,885)

Adj: Restructuring expense and other expense 5,316 4,917

Adj: Loss from discontinued operations before income taxes 21,741 -

Adj: Income taxes benefit/(expense) (26,403) 11,685

Total adjusted income/(loss) (2) (E) $ 16,315 $ 63,814

(in millions, except per share data)

Total average assets (F) $ 13,001 $ 12,268

Total average shareholders' equity (G) 1,513 1,161

Total average tangible shareholders' equity (2)(3) (H) 1,104 1,128

Total average tangible common shareholders' equity (2)(3) (I) 1,083 1,128

Total tangible shareholders' equity, period-end (2)(3) (J) 1,138 1,147

Total tangible common shareholders' equity, period-end (2)(3) (K) 1,118 1,147

Total tangible assets, period-end (2)(3) (L) 12,574 11,815

Total common shares outstanding, period-end (thousands) (M) 50,306 48,657

Average diluted shares outstanding (thousands) (N) 50,290 49,963

GAAP earnings/(loss) per common share, diluted(2) $ (10.90) $ 1.97

Adjusted earnings per common share, diluted (2) (E/N) 0.32 1.28

Tangible book value per common share, period-end (2) (K/M) 22.22 23.58

Total tangible shareholders' equity/total tangible assets (2) (J/L) 9.05 9.71

Performance ratios (4)

GAAP return on equity (48.26) % 11.30 %

Adjusted return on equity (2) (E/G) 1.44 7.33

Return on tangible common equity (2)(5) (67.09) 11.97

Adjusted return on tangible common equity (2)(5) (E+Q)/ 2.39 7.88 (I)

GAAP return on assets (5.63) 1.07

Adjusted return on assets(2) 0.17 0.69

PPNR from continuing operations/assets (2) (4.97) 1.38

Adjusted PPNR/assets (2) 0.87 0.88

Efficiency ratio (2)(6) (D-Q)/ 67.72 69.32 (B+O+R)

Net interest margin, FTE 2.75 2.60

Supplementary data (in thousands)

Tax benefit on tax-credit investments (7) (O) $ 3,364 $ 2,315

Non-interest income charge on tax-credit investments (8) (P) (2,673) (1,996)

Net income on tax-credit investments (O+P) 691 319

Intangible amortization (Q) $ 4,668 $ 3,912

Fully taxable equivalent income adjustment (R) 4,917 4,739

(1) Net securities (gains)/losses include the change in fair value of theCompany's equity securities in compliance with the Company's adoption of ASU2016-01.

(2) Non-GAAP financial measure.

(3) Total tangible shareholders' equity is computed by taking totalshareholders' equity less the intangible assets at period-end. Total tangibleassets is computed by taking intangible assets at period-end.

(4) Ratios are annualized and based on average balance sheet amounts, whereapplicable. Quarterly data may not sum to year-to-date data due to rounding.

(5) Adjusted return on tangible equity is computed by dividing the totaladjusted income/(loss) adjusted for the tax-effected amortization of intangibleassets, assuming a 27% marginal rate, by tangible equity.

(6) Efficiency ratio is computed by dividing total adjusted tangiblenon-interest expense by the sum of total net interest income on a fully taxableequivalent basis and total adjusted non-interest income adjusted to include taxcredit benefit of tax shelter investments. The Company uses this non-GAAPmeasure to provide important information regarding its operational efficiency.

(7) The tax benefit is the direct reduction to the income tax provision due totax credits and deductions generated from investments in historic rehabilitation and low-income housing.

(8) The non-interest income charge is the reduction to the tax-advantagedinvestments, which are incurred as the tax credits are generated.

View original content to download multimedia: https://www.prnewswire.com/news-releases/berkshire-hills-reports-earnings-per-share-growth-301405529.html

SOURCE Berkshire Hills Bancorp, Inc.