Core Insights - Berkshire Hills Bancorp reported strong Q1 2025 results, with operating net income increasing by 6% quarter-over-quarter and 32% year-over-year, reaching $27.6 million [4][8] - Earnings per share remained flat at $0.60 quarter-over-quarter but increased by 22% year-over-year [2][4] - The company achieved a net interest margin of 3.24%, up 10 basis points from the previous quarter [2][9] Financial Performance - Operating expenses decreased to $68 million, down 4% quarter-over-quarter and 6% year-over-year, reflecting effective expense optimization efforts [2][4][9] - The loan-to-deposit ratio decreased to 5%, down 1% quarter-over-quarter, indicating improved liquidity management [2][9] - Asset quality remained strong, with net charge-offs accounting for 15 basis points of loans and total delinquencies at 42 basis points, the lowest level in about twenty years [4][9] Strategic Initiatives - The digital deposit initiative generated approximately $75 million in new deposits, with one out of five new client relationships originating through digital channels [5][6][10] - The merger with Brookline Bancorp is progressing, with regulatory applications filed and shareholder proxy submitted, aiming for stockholder approvals by May 21 [5][10] - The company sold the remaining $7 million in Upstart loans for net proceeds of $5.3 million, further de-risking the balance sheet [5][9] Capital and Ratios - The CET1 ratio stood at 13.3% and the TCE ratio at 9.9%, indicating strong capital levels [3][9] - The operating ROTCE was 9.66%, reflecting a year-over-year increase of 93 basis points despite a linked quarter decrease [2][4]

Berkshire Hills Bancorp, Inc (NYSE:BHLB) Q1 2025 Results Conference Call April 24, 2025 9:00 AM ET Company Participants Kevin Conn - Investor Relations Nitin Mhatre - Chief Executive Officer Brett Brbovic - Chief Financial Officer Sean Gray - Chief Operating Officer Conference Call Participants Chris O'Connell - KBW Gregory Zingone - Piper Sandler Operator Good morning, ladies and gentlemen, and welcome to the Berkshire Hills Bancorp First Quarter 2025 Earnings Conference Call. This call is being recorded o ...

The reported revenue represents a surprise of -0.61% over the Zacks Consensus Estimate of $111.12 million. With the consensus EPS estimate being $0.54, the EPS surprise was +11.11%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in drivin ...

Exhibit 99.1 Berkshire Hills Reports Strong First Quarter 2025 Results Mr. Mhatre continued, "Berkshire Bank's multi-year Community Comeback program concluded by exceeding its $5 billion goal to lend and invest across the company's markets, a testament to the impact we were able to create alongside our clients. Our impact is further highlighted in our latest Sustainability Report. We continue to be recognized for our efforts, most recently by Newsweek magazine for the fourth consecutive year as one of the m ...

Earnings Release Schedule - Berkshire Hills Bancorp, Inc. is set to release its first quarter 2025 earnings on April 24, 2025, at approximately 7:30 a.m. (Eastern) [1] - A conference call will follow the earnings release on the same day at 9:00 a.m. (Eastern) [1] - Participants can register for the webcast or join via a toll-free dial-in number [1][2] Company Overview - Berkshire Hills Bancorp, Inc. is the parent company of Berkshire Bank, which focuses on relationship-driven and community-oriented banking [3] - The company has $12.3 billion in assets and operates 83 financial centers across New England and New York [3] - Berkshire Bank offers a range of services including commercial, retail, private banking, and wealth solutions [3]

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. One company to watch right now is Berkshire Hills Bancorp (BHLB) . BHLB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.27. This ...

Market Overview - The U.S. share market experienced volatility on March 7, 2025, with most stock indices closing slightly positive despite concerns over President Trump's tariff policies and a weaker-than-expected jobs report [1] - Federal Reserve Chair Jerome Powell's statement about the economy being in good shape provided some optimism among investors [1] Investment Recommendations - In the current volatile market, it is suggested that investors consider low-leverage stocks as safer investment options [2] - Recommended stocks include BioLife Solutions (BLFS), Berkshire Hills Corporation (BHLB), NVIDIA (NVDA), The Greenbrier Companies (GBX), and EZCORP (EZPW) due to their low leverage [2] Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [7] - Companies with high debt-to-equity ratios may face challenges during economic downturns, despite strong earnings growth [8] Stock Selection Criteria - Stocks should have a debt-to-equity ratio lower than the industry median, a current price of at least $10, and an average 20-day trading volume of at least 50,000 [11] - Additional criteria include earnings growth expectations, a VGM Score of A or B, and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [12] Company Performance Highlights - **BioLife Solutions (BLFS)**: Reported a 31% year-over-year revenue increase in Q4 2024, with an adjusted operating loss narrowing to $746 million [13] - **Berkshire Hills Bancorp (BHLB)**: Achieved a 28% year-over-year increase in operating EPS and a 37.7% growth in total net revenues [14] - **NVIDIA (NVDA)**: Experienced a 78% year-over-year revenue increase and a 71% rise in adjusted EPS [15] - **The Greenbrier Companies (GBX)**: Reported net earnings of $55 million on revenues of $876 million, with an operating margin of 12.8% [17] - **EZCORP**: Announced a 14% year-over-year increase in adjusted net income and a 7% rise in revenues [19]

Loan Portfolio Growth - The total loan portfolio increased to $9,385 million in 2024, up from $9,039 million in 2023, representing a growth of 3.8%[22] - Commercial real estate non-owner occupied loans accounted for 29.5% of the total loan portfolio, totaling $2,770 million in 2024, compared to $2,607 million in 2023[22] - Residential real estate loans also represented 29.5% of the total loan portfolio, amounting to $2,772 million in 2024, slightly up from $2,760 million in 2023[22] - Construction loans grew to $726 million in 2024, a significant increase of 13.4% from $640 million in 2023[22] - Commercial and industrial loans totaled $1,439 million in 2024, reflecting a 5.9% increase from $1,359 million in 2023[22] Credit Losses and Risk Management - The allowance for credit losses increased to $115 million in 2024 from $105 million in 2023, indicating a rise in potential credit risk[22] - The allowance for credit losses on loans to total loans ratio increased to 1.22% in 2024 from 1.17% in 2023[48] - Nonaccrual loans as a percentage of total loans rose to 0.26% in 2024, compared to 0.24% in 2023[48] - The allowance for credit losses on nonaccruing loans was 469.18% in 2024, down from 492.47% in 2023[48] - Net charge-offs to average loans decreased to 0.16% in 2024 from 0.26% in 2023[48] - Total allowance for credit losses on loans was $114.7 million in 2024, consistent at 1.2% of total loans[50] - The Bank's management reported that it prefers to work with borrowers to resolve problems rather than proceeding to foreclosure[43] Interest Rate Risk Management - The effective management of interest rate risk is essential for achieving the Company's financial objectives, with the Asset Liability Committee overseeing this[346] - The estimated percent change in Net Interest Income for a +200 basis points shock is projected at 2.2% for December 31, 2024[350] - The Company's Economic Value of Equity sensitivity profile indicates a modest liability sensitivity at December 31, 2024, decreasing compared to December 31, 2023[355] Specialized Lending Operations - The Bank's commercial loan participations and interest rate swaps are part of its strategy to manage risk in commercial real estate lending[23] - The Bank's Asset Based Lending Group targets credit needs ranging from $2 million to $25 million, focusing on manufacturers and distributors[28] - The remaining portfolio of Firestone Financial LLC, which originated loans secured by business-essential equipment, totaled $41 million as of December 31, 2024[29] - The Bank's residential mortgage operations include fixed-rate and adjustable-rate loans with maturities of up to 30 years, primarily for investment purposes[31] Regulatory Measures - The supervisory measure of commercial real estate loans to total bank regulatory capital was 292% at period-end, up from 286% at year-end 2023[42]

Core Viewpoint - The U.S. equities market experienced a decline due to concerns over recent tariff impositions by Trump, which may impact the profitability of many U.S. companies engaged in global trade [1] Group 1: Investment Recommendations - In the current market environment, it is suggested that investors consider low-leverage stocks as safer investment options to mitigate potential losses [2] - Recommended stocks include Berkshire Hills Bancorp (BHLB), Sportradar Group (SRAD), Nextracker (NXT), The Greenbrier Companies (GBX), and Fox Corp. (FOX), all of which exhibit low leverage [2] Group 2: Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing, which can be riskier than equity financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] Group 3: Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [7] - During economic downturns, companies with high debt-to-equity ratios may face challenges despite previously strong earnings [8] Group 4: Screening Criteria for Stocks - A prudent investment strategy involves selecting stocks with a debt-to-equity ratio lower than the industry median, a current price of at least $10, and an average 20-day trading volume of 50,000 or more [10][11] - Additional criteria include a percentage change in earnings per share (EPS) greater than the industry median, a VGM Score of A or B, and a Zacks Rank of 1 or 2 [12] Group 5: Company Highlights - **Berkshire Hills Bancorp (BHLB)**: Reported a 28% year-over-year growth in operating EPS and a projected 30% increase in 2025 sales [13][14] - **Sportradar Group (SRAD)**: Achieved a long-term earnings growth rate of 49.8% and a 15.5% expected sales increase for 2025 [15][16] - **Nextracker (NXT)**: Recorded a backlog exceeding $4.5 billion and a 57.44% average earnings surprise over four quarters [17][18] - **The Greenbrier Companies (GBX)**: Reported net earnings of $55 million with a long-term earnings growth rate of 11.7% [19][20] - **Fox Corp. (FOX)**: Achieved a long-term earnings growth rate of 7.1% and a significant earnings surprise of 31.82% in the last quarter [20][21]

Core Insights - Berkshire Hills Bancorp (BHLB) reported revenue of $110.02 million for the quarter ended December 2024, a decrease of 12.3% year-over-year, but exceeded the Zacks Consensus Estimate of $104.59 million by 5.19% [1] - The company's EPS was $0.60, an increase from $0.47 in the same quarter last year, surpassing the consensus estimate of $0.54 by 11.11% [1] Financial Performance Metrics - Efficiency Ratio was reported at 62.4%, better than the estimated 65.9% by analysts [4] - Net interest margin (FTE) was 3.1%, slightly below the average estimate of 3.2% [4] - Average balance of total earning assets was $11.08 billion, compared to the estimated $11.18 billion [4] - Total non-interest income reached $23.33 million, exceeding the average estimate of $20.41 million [4] - Net interest income was reported at $86.86 million, slightly above the estimated $86.74 million [4] Stock Performance - Shares of Berkshire Hills have returned +0.5% over the past month, while the Zacks S&P 500 composite increased by +1.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]