Berkshire Hills Bancorp-Berkshire Hills (BHLB) Q1 2025 Earnings Call

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]