Beacon Financial Corp 8-K, filed May 5, 2020

Beacon Financial Corp (BBT)

8-K 2020-05-05 For: 2020-05-04

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Added on April 07, 2026

About this 8-K

Beacon Financial Corp filed this 8-K on May 5, 2020, reporting on events of May 4, 2020.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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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)

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

		Berkshire Hills Bancorp, Inc.


DATE: May 5, 2020	By:	/s/ Richard M. Marotta
		Richard M. Marotta President and Chief Executive Officer

TABLE INDEX	CONSOLIDATED UNAUDITED FINANCIAL SCHEDULES
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 Yields and Costs
F-7	Average Balances
F-8	Asset Quality Analysis
F-9	Reconciliation of Non-GAAP Financial Measures and Supplementary Data (Five Quarter Trend)

BERKSHIRE HILLS BANCORP, INC.
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
			At or for the Quarters Ended ⁽¹⁾
			March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
			2020		2019		2019		2019⁽²⁾		2019

	PER SHARE DATA
		Net (loss)/earnings per common share, diluted	$ (0.40)		$ 0.51		$ 0.44		$ 0.52		$ 0.51
		Core (loss)/earnings per common share, diluted ⁽³⁾	(0.07)		0.70		0.46		0.65		0.60
		Total book value per common share	33.72		34.65		34.36		34.05		33.75
		Tangible book value per common share ⁽³⁾	21.82		22.56		22.42		22.25		21.66
		Market price at period end	14.86		32.88		29.29		31.39		27.24
		Dividends per common share	0.24		0.23		0.23		0.23		0.23
		Dividends per preferred share	0.48		0.46		0.46		0.46		0.46

	PERFORMANCE RATIOS⁽⁴⁾
		Return on assets	(0.62)	%	0.78	%	0.67	%	0.79	%	0.78	%
		Core return on assets⁽³⁾	(0.11)		1.08		0.71		1.01		0.92
		Return on equity	(4.61)		5.90		5.12		6.07		5.97
		Core return on equity⁽³⁾	(0.85)		8.09		5.35		7.67		7.00
		Core return on tangible common equity⁽³⁾	(0.95)		13.12		8.74		12.21		11.44
		Net interest margin, fully taxable equivalent (FTE)⁽⁵⁾⁽⁶⁾	3.02		3.11		3.22		3.19		3.17
		Fee income/Net interest and fee income from continuing operations	15.46		18.11		17.61		16.20		17.56
		Efficiency ratio ⁽³⁾	66.92		53.66		53.37		56.41		59.54

	CHANGE (Year-to-date)
		Total commercial loans (organic, annualized)	(5)	%	(7)	%	(9)	%	(10)	%	(3)	%
		Total loans (organic, annualized)	(8)		(9)		(9)		(9)		(4)
		Total deposits (organic, annualized)	(10)		0		2		6		8
		Total net revenues from continuing operations (compared to prior year)	(14)		4		4		1		3
		(Loss)/earnings per common share (compared to prior year)	(178)		(14)		(26)		(20)		(7)
		Core (loss)/earnings per common share (compared to prior year)⁽³⁾	(112)		(14)		(18)		(9)		(8)

	FINANCIAL DATA (in millions)
		Total assets	$ 13,221		$ 13,216		$ 13,532		$ 13,653		$ 12,173
		Total earning assets	11,894		11,916		12,174		12,343		11,039
		Total securities	1,837		1,770		1,861		1,905		1,881
		Total loans	9,303		9,502		9,719		9,942		8,947
		Allowance for credit losses	114		64		62		62		62
		Total intangible assets	598		599		602		603		551
		Total deposits	10,072		10,336		10,423		10,566		9,166
		Total shareholders' equity	1,713		1,759		1,772		1,779		1,577
		Net (loss)/income	(19.9)		25.8		22.6		25.4		23.6
		Core (loss)/income ⁽³⁾	(3.6)		35.3		23.7		32.1		27.7
		Purchase accounting accretion	3.1		5.1		4.8		3.2		1.3

	ASSET QUALITY AND CONDITION RATIOS
		Net charge-offs (current quarter annualized)/average loans	0.45	%	0.17	%	0.92	%	0.14	%	0.15	%
		Total non-performing assets/total assets	0.40		0.31		0.28		0.27		0.26
		Allowance for credit losses/total loans	1.22		0.67		0.64		0.63		0.69
		Loans/deposits	92		92		93		94		98
		Shareholders' equity to total assets	12.96		13.31		13.10		13.03		12.95
		Tangible shareholders' equity to tangible assets⁽³⁾	8.84		9.19		9.05		9.01		8.83


	(1)	Reconciliations of non-GAAP financial measures, including all references to core and tangible amounts, appear on page F-9.
	(2)	The Company acquired SI Financial Group, Inc. on May 17, 2019.
	(3)	Non-GAAP financial measure. Core measurements are non-GAAP financial measures that are adjusted to exclude net non-core charges primarily
		related to acquisitions and restructuring activities. See page F-9 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)	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 most recent quarter and ending with the earliest quarter: 0.11%, 0.17%, 0.16%, 0.11%, 0.05%.

BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED BALANCE SHEETS - UNAUDITED
	March 31,	December 31,
(in thousands)	2020	2019
Assets
Cash and due from banks	$ 90,280	$ 105,447
Short-term investments	624,064	474,382
Total cash and short-term investments	714,344	579,829

Trading security	9,829	10,769
Marketable equity securities, at fair value	32,283	41,556
Securities available for sale, at fair value	1,403,858	1,311,555
Securities held to maturity, at amortized cost	336,802	357,979
Federal Home Loan Bank stock and other restricted securities	54,306	48,019
Total securities	1,837,078	1,769,878
Less: Allowance for credit losses on investment securities	(141)	—
Net securities	1,836,937	1,769,878

Loans held for sale	4,252	36,664

Commercial real estate loans	3,985,856	4,034,269
Commercial and industrial loans	1,812,445	1,840,508
Residential mortgages	2,604,390	2,685,472
Consumer loans	900,486	942,179
Total loans	9,303,177	9,502,428
Less: Allowance for credit losses on loans	(113,510)	(63,575)
Net loans	9,189,667	9,438,853

Premises and equipment, net	120,667	120,398
Other real estate owned	224	—
Goodwill	553,762	553,762
Other intangible assets	44,035	45,615
Cash surrender value of bank-owned life insurance	228,447	227,894
Deferred tax asset, net	44,575	51,017
Other assets	344,470	239,872
Assets from discontinued operations	140,064	152,188
Total assets	$ 13,221,444	$ 13,215,970

Liabilities and shareholders' equity
Demand deposits	$ 1,922,490	$ 1,884,100
NOW and other deposits	1,546,626	1,492,569
Money market deposits	2,391,835	2,528,656
Savings deposits	867,024	841,283
Time deposits	3,343,700	3,589,369
Total deposits	10,071,675	10,335,977

Senior borrowings	944,053	730,501
Subordinated borrowings	97,107	97,049
Total borrowings	1,041,160	827,550

Other liabilities	364,770	267,398
Liabilities from discontinued operations	30,554	26,481
Total liabilities	11,508,159	11,457,406

Preferred shareholders' equity	20,325	40,633
Common shareholders' equity	1,692,960	1,717,931
Total shareholders' equity	1,713,285	1,758,564
Total liabilities and shareholders' equity	$ 13,221,444	$ 13,215,970

Net common shares outstanding	50,199	49,585

BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS


				Annualized Growth %
(in millions)	March 31, 2020 Balance	December 31, 2019 Balance		Quarter ended March 31, 2020

Total commercial real estate	$ 3,986	$ 4,034		(5)	%
Commercial and industrial loans	1,812	1,841		(6)
Total commercial loans	5,798	5,875		(5)

Total residential mortgages	2,604	2,685		(12)

Home equity	378	381		(3)
Auto and other	523	561		(27)
Total consumer loans	901	942		(16)
Total loans	$ 9,303	$ 9,502		(8)	%






DEPOSIT ANALYSIS

			Annualized Growth %
(in millions)	March 31, 2020 Balance	December 31, 2019 Balance		Quarter ended March 31, 2020
Demand	$ 1,922	$ 1,884		8	%
NOW and other	1,547	1,493		14
Money market	2,392	2,529		(22)
Savings	867	841		12
Time deposits	3,344	3,589		(27)
Total deposits	$ 10,072	$ 10,336		(10)	%

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
	Three Months Ended
	March 31,	March 31,
(in thousands, except per share data)	2020	2019
Interest and dividend income from continuing operations
Loans	$ 101,695	$ 105,651
Securities and other	14,500	15,458
Total interest and dividend income	116,195	121,109
Interest expense from continuing operations
Deposits	23,838	26,622
Borrowings	5,929	9,028
Total interest expense	29,767	35,650
Net interest income from continuing operations	86,428	85,459
Non-interest income from continuing operations
Mortgage banking originations	959	46
Loan related income	1,302	6,003
Deposit related fees	7,947	6,858
Insurance commissions and fees	3,024	2,853
Wealth management fees	2,570	2,441
Total fee income	15,802	18,201
Other	(436)	970
Securities (losses)/gains, net	(9,730)	2,551
Total non-interest income	5,636	21,722
Total net revenue from continuing operations	92,064	107,181
Provision for credit losses	34,807	4,001
Non-interest expense from continuing operations
Compensation and benefits	36,909	33,500
Occupancy and equipment	11,132	9,446
Technology and communications	8,081	6,257
Marketing and promotion	1,165	1,267
Professional services	2,720	2,275
FDIC premiums and assessments	1,482	1,639
Other real estate owned and foreclosures	27	2
Amortization of intangible assets	1,580	1,200
Merger, restructuring and other expense	—	7,015
Other	8,229	9,390
Total non-interest expense	71,325	71,991

(Loss)/income from continuing operations before income taxes	$ (14,068)	$ 31,189
Income tax (benefit)/expense	(1,996)	6,917
Net (loss)/income from continuing operations	$ (12,072)	$ 24,272

(Loss)/income from discontinued operations before income taxes	$ (10,629)	$ (854)
Income tax (benefit)/expense	(2,831)	(217)
Net (loss)/income from discontinued operations	$ (7,798)	$ (637)

Net (loss)/income	$ (19,870)	$ 23,635
Preferred stock dividend	125	240
(Loss)/income available to common shareholders	$ (19,995)	$ 23,395

Basic (loss)/earnings per common share:
Continuing Operations	$ (0.24)	$ 0.52
Discontinued Operations	(0.16)	(0.01)
Total	$ (0.40)	$ 0.51

Diluted (loss)/earnings per common share:
Continuing Operations	$ (0.24)	$ 0.52
Discontinued Operations	(0.16)	(0.01)
Total	$ (0.40)	$ 0.51

Weighted average shares outstanding:
Basic	50,204	46,113
Diluted	50,204	46,261

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (5 Quarter Trend) - UNAUDITED

	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
(in thousands, except per share data)	2020	2019	2019	2019	2019
Interest and dividend income from continuing operations
Loans	$ 101,695	$ 110,915	$ 118,371	$ 113,990	$ 105,651
Securities and other	14,500	14,526	15,354	15,248	15,458
Total interest and dividend income	116,195	125,441	133,725	129,238	121,109
Interest expense from continuing operations
Deposits	23,838	28,797	31,501	28,273	26,622
Borrowings	5,929	5,311	5,353	9,370	9,028
Total interest expense	29,767	34,108	36,854	37,643	35,650
Net interest income from continuing operations	86,428	91,333	96,871	91,595	85,459
Non-interest income from continuing operations
Mortgage banking originations	959	172	292	278	46
Loan related income	1,302	7,056	6,493	4,822	6,003
Deposit related fees	7,947	8,264	8,705	7,525	6,858
Insurance commissions and fees	3,024	2,471	2,895	2,738	2,853
Wealth management fees	2,570	2,239	2,325	2,348	2,441
Total fee income	15,802	20,202	20,710	17,711	18,201
Other	(436)	75	609	(216)	970
Securities (losses)/gains, net	(9,730)	1,734	87	17	2,551
Gain on sale of business operations and assets, net	—	1,351	—	—	—
Total non-interest income	5,636	23,362	21,406	17,512	21,722
Total net revenue from continuing operations	92,064	114,695	118,277	109,107	107,181
Provision for credit losses	34,807	5,351	22,600	3,467	4,001
Non-interest expense from continuing operations
Compensation and benefits	36,909	35,355	37,272	34,779	33,500
Occupancy and equipment	11,132	10,798	9,893	9,449	9,446
Technology and communications	8,081	6,702	6,849	6,715	6,257
Marketing and promotion	1,165	1,046	1,006	1,155	1,267
Professional services	2,720	2,288	2,282	3,953	2,275
FDIC premiums and assessments	1,482	471	-	1,751	1,639
Other real estate owned and foreclosures	27	4	150	(2)	2
Amortization of intangible assets	1,580	1,582	1,526	1,475	1,200
Merger, restructuring and other expense	-	5,713	4,163	11,155	7,015
Other	8,229	6,328	7,870	6,138	9,390
Total non-interest expense	71,325	70,287	71,011	76,568	71,991

(Loss)/income from continuing operations before income taxes	$ (14,068)	$ 39,057	$ 24,666	$ 29,072	$ 31,189
Income tax (benefit)/expense	(1,996)	6,421	4,007	5,118	6,917
Net (loss)/ income from continuing operations	$ (12,072)	$ 32,636	$ 20,659	$ 23,954	$ 24,272

(Loss)/income from discontinued operations before income taxes	$ (10,629)	$ (9,514)	$ 2,747	$ 2,082	$ (854)
Income tax (benefit)/expense	(2,831)	(2,629)	790	588	(217)
Net (loss)/income from discontinued operations	$ (7,798)	$ (6,885)	$ 1,957	$ 1,494	$ (637)

Net (loss)/income	$ (19,870)	$ 25,751	$ 22,616	$ 25,448	$ 23,635
Preferred stock dividend	125	240	240	240	240
(Loss)/income available to common shareholders	$ (19,995)	$ 25,511	$ 22,376	$ 25,208	$ 23,395


Basic (loss)/earnings per common share:
Continuing Operations	$ (0.24)	$ 0.65	$ 0.40	$ 0.49	$ 0.52
Discontinued Operations	(0.16)	(0.14)	0.04	0.03	(0.01)
Total	$ (0.40)	$ 0.51	$ 0.44	$ 0.52	$ 0.51

Diluted (loss)/earnings per common share:
Continuing Operations	$ (0.24)	$ 0.65	$ 0.40	$ 0.49	$ 0.52
Discontinued Operations	(0.16)	(0.14)	0.04	0.03	(0.01)
Total	$ (0.40)	$ 0.51	$ 0.44	$ 0.52	$ 0.51

Weighted average shares outstanding:
Basic	50,204	50,494	51,422	48,961	46,113
Diluted	50,204	50,702	51,545	49,114	46,261

BERKSHIRE HILLS BANCORP, INC. AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
	Quarters Ended
	March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
	2020		2019		2019		2019		2019

Earning assets
Loans:
Commercial real estate	4.41	%	4.80	%	4.92	%	5.01	%	4.91	%
Commercial and industrial loans	5.03		5.35		5.58		5.79		5.83
Residential mortgages	3.77		3.61		3.73		3.74		3.74
Consumer loans	4.28		4.38		4.55		4.52		4.45
Total loans	4.33		4.52		4.67		4.76		4.73
Securities	3.32		3.31		3.41		3.38		3.46
Short-term investments and loans held for sale	1.52		3.15		4.11		3.37		3.59
Total earning assets	4.05		4.27		4.45		4.51		4.49

Funding liabilities
Deposits:
NOW and other	0.46		0.54		0.61		0.66		0.65
Money market	0.98		1.18		1.27		1.27		1.23
Savings	0.13		0.14		0.13		0.15		0.18
Time	1.87		1.97		2.02		2.06		2.07
Total interest-bearing deposits	1.18		1.35		1.43		1.44		1.44
Borrowings	2.60		2.77		3.12		2.92		2.85
Total interest-bearing liabilities	1.33		1.48		1.57		1.66		1.65

Net interest spread	2.72		2.79		2.88		2.85		2.84
Net interest margin	3.02		3.11		3.22		3.19		3.17

Cost of funds (1)	1.11		1.23		1.32		1.41		1.41
Cost of deposits	0.96		1.11		1.18		1.18		1.19

(1) Cost of funds includes all deposits and borrowings.

BERKSHIRE HILLS BANCORP, INC. AVERAGE BALANCES - UNAUDITED
	Quarters Ended
	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
(in thousands)	2020	2019	2019	2019	2019
Assets
Loans
Commercial real estate	$ 4,000,461	$ 4,056,244	$ 3,998,144	$ 3,716,130	$ 3,377,902
Commercial and industrial loans	1,795,813	1,768,039	1,951,205	2,056,384	1,986,792
Residential mortgages	2,654,224	2,758,676	2,849,216	2,711,348	2,556,299
Consumer loans	921,810	974,889	1,035,893	1,064,579	1,079,583
Total loans (1)	9,372,308	9,557,848	9,834,458	9,548,441	9,000,576
Securities (2)	1,744,635	1,752,968	1,846,985	1,893,298	1,895,768
Short-term investments and loans held for sale	450,197	444,622	309,897	117,029	67,367
Total earning assets (3)	11,567,140	11,755,438	11,991,340	11,558,768	10,963,711
Goodwill and other intangible assets	598,347	601,192	603,762	555,606	550,966
Other assets	654,063	737,396	668,218	593,917	557,442
Assets from discontinued operations	98,528	176,251	204,339	192,466	115,721
Total assets	$ 12,918,078	$ 13,270,277	$ 13,467,659	$ 12,900,757	$ 12,187,840

Liabilities and shareholders' equity
Deposits
NOW and other	$ 1,159,388	$ 1,085,485	$ 1,111,637	$ 1,053,335	$ 963,043
Money market	2,752,465	2,688,766	2,624,639	2,474,071	2,378,496
Savings	846,942	835,209	838,445	780,797	736,707
Time	3,333,070	3,827,175	4,158,688	3,593,022	3,429,375
Total interest-bearing deposits	8,091,865	8,436,635	8,733,409	7,901,225	7,507,621
Borrowings	949,316	853,911	805,035	1,415,614	1,351,834
Total interest-bearing liabilities	9,041,181	9,290,546	9,538,444	9,316,839	8,859,455
Non-interest-bearing demand deposits	1,849,295	1,898,045	1,864,964	1,673,560	1,538,767
Other liabilities	279,100	304,504	267,922	215,704	192,119
Liabilities from discontinued operations	23,799	30,446	28,206	18,434	13,962
Total liabilities	11,193,375	11,523,541	11,699,536	11,224,537	10,604,303

Preferred shareholders' equity	20,548	40,633	40,633	40,633	40,633
Common shareholders' equity	1,704,155	1,706,103	1,727,490	1,635,587	1,542,904
Total shareholders' equity	1,724,703	1,746,736	1,768,123	1,676,220	1,583,537
Total liabilities and shareholders' equity	$ 12,918,078	$ 13,270,277	$ 13,467,659	$ 12,900,757	$ 12,187,840


Supplementary data
Total average non-maturity deposits	$ 6,608,090	$ 6,507,505	$ 6,439,685	$ 5,981,763	$ 5,617,013
Total average deposits	9,941,160	10,334,680	10,598,373	9,574,785	9,046,388
Fully taxable equivalent income adjustment	1,824	1,934	1,826	1,882	1,809
Total average tangible equity (4)	1,126,356	1,145,544	1,164,361	1,120,614	1,032,571

(1) Total loans include non-accruing loans.
(2) Average balances for securities available-for-sale are based on amortized cost.
(3) Excludes discontinued operations for presentation purposes. Performance ratios are calculated including the impact of discontinued operations.
(4) See page F-9 for details on the calculation of total average tangible equity.

BERKSHIRE HILLS BANCORP, INC. ASSET QUALITY ANALYSIS - UNAUDITED
	At or for the Quarters Ended
	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
(in thousands)	2020	2019	2019	2019	2019
NON-PERFORMING ASSETS
Non-accruing loans:
Commercial real estate	$ 16,938	$ 20,119	$ 15,829	$ 19,366	$ 18,513
Commercial and industrial loans	18,370	11,373	12,224	9,256	5,614
Residential mortgages	9,636	3,343	3,062	3,579	2,341
Consumer loans	6,172	4,805	5,191	3,570	4,038
Total non-accruing loans	51,116	39,640	36,306	35,771	30,506
Other real estate owned	224	-	-	154	-
Repossessed assets	1,316	858	1,003	874	742
Total non-performing assets	$ 52,656	$ 40,498	$ 37,309	$ 36,799	$ 31,248

Total non-accruing loans/total loans	0.55%	0.42%	0.37%	0.36%	0.34%
Total non-performing assets/total assets	0.40%	0.31%	0.28%	0.27%	0.26%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period	$ 63,575	$ 62,230	$ 62,156	$ 62,038	$ 61,469
Adoption of ASU No. 2016-13 (1)	25,434	-	-	-	-
Balance after adoption of ASU No. 2016-13	89,009	62,230	62,156	62,038	61,469
Charged-off loans	(12,432)	(4,485)	(23,524)	(3,966)	(4,579)
Recoveries on charged-off loans	1,958	479	998	617	1,147
Net loans charged-off	(10,474)	(4,006)	(22,526)	(3,349)	(3,432)
Provision for loan credit losses	34,975	5,351	22,600	3,467	4,001
Balance at end of period	$ 113,510	$ 63,575	$ 62,230	$ 62,156	$ 62,038

Allowance for credit losses/total loans	1.22%	0.67%	0.64%	0.63%	0.69%
Allowance for credit losses/non-accruing loans	222%	160%	171%	174%	203%

NET LOAN CHARGE-OFFS
Commercial real estate	$ (5,990)	$ (1,419)	$ (2,759)	$ (1,235)	$ (752)
Commercial and industrial loans	(3,728)	(1,495)	(18,850)	(995)	(1,580)
Residential mortgages	(19)	(351)	(140)	(139)	(95)
Home equity	(107)	(67)	(71)	(300)	(257)
Auto and other consumer	(630)	(674)	(706)	(680)	(748)
Total, net	$ (10,474)	$ (4,006)	$ (22,526)	$ (3,349)	$ (3,432)

Net charge-offs (QTD annualized)/average loans	0.45%	0.17%	0.92%	0.14%	0.15%
Net charge-offs (YTD annualized)/average loans	0.45%	0.35%	0.41%	0.15%	0.15%

DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS
30-89 Days delinquent	0.43%	0.25%	0.26%	0.20%	0.22%
90+ Days delinquent and still accruing	0.05%	0.29%	0.29%	0.28%	0.23%
Total accruing delinquent loans	0.48%	0.54%	0.55%	0.48%	0.45%
Non-accruing loans	0.55%	0.42%	0.37%	0.36%	0.34%
Total delinquent and non-accruing loans	1.03%	0.96%	0.92%	0.84%	0.79%
(1) This balance includes $12 million of PCD confirmed losses as of January 1, 2020.

BERKSHIRE HILLS BANCORP, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED
				At or for the Quarters Ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
(in thousands)		2020		2019		2019		2019		2019
Net (loss)/income		$ (19,870)		$ 25,751		$ 22,616		$ 25,448		$ 23,635
Adj: Net securities losses/(gains) (1)		9,730		(1,734)		(87)		(17)		(2,551)
Adj: Merger and acquisition expense		-		3,611		3,802		9,711		1,609
Adj: Restructuring expense and other expense		-		2,102		361		1,444		5,406
Adj: Loss/(income) from discontinued operations before income taxes		10,629		9,514		(2,747)		(2,082)		854
Adj: Income taxes		(4,134)		(3,910)		(281)		(2,385)		(1,223)
Total core (loss)/income (2)	(A)	$ (3,645)		$ 35,334		$ 23,664		$ 32,119		$ 27,730

Total revenue from continuing operations		$ 92,064		$ 114,695		$ 118,277		$ 109,107		$ 107,181
Adj: Net securities losses/(gains) (1)		9,730		(1,734)		(87)		(17)		(2,551)
Total core revenue (2)	(B)	$ 101,794		$ 112,961		$ 118,190		$ 109,090		$ 104,630

Total non-interest expense from continuing operations		$ 71,325		$ 70,287		$ 71,011		$ 76,568		$ 71,991
Less: Merger, restructuring and other expense (see above)		-		(5,713)		(4,163)		(11,155)		(7,015)
Core non-interest expense (2)	(C)	$ 71,325		$ 64,574		$ 66,848		$ 65,413		$ 64,976

Total revenue		$ 93,869		$ 116,860		$ 134,067		$ 123,109		$ 116,454
Total non-interest expense		83,759		81,966		84,054		88,488		82,118
Pre-tax, pre-provision net revenue		$ 10,110		$ 34,894		$ 50,013		$ 34,621		$ 34,336

Total revenue from continuing operations		$ 92,064		$ 114,695		$ 118,277		$ 109,107		$ 107,181
Total non-interest expense from continuing operations		71,325		70,287		71,011		76,568		71,991
Pre-tax, pre-provision net revenue from continuing operations		$ 20,739		$ 44,408		$ 47,266		$ 32,539		$ 35,190

Total core revenue (2)		$ 101,794		$ 112,961		$ 118,190		$ 109,090		$ 104,630
Core non-interest expense (2)		71,325		64,574		66,848		65,413		64,976
Core pre-tax, pre-provision net revenue		$ 30,469		$ 48,387		$ 51,342		$ 43,677		$ 39,654

(in millions, except per share data)
Total average assets	(D)	$ 12,918		$ 13,270		$ 13,468		$ 12,901		$ 12,188
Total average shareholders' equity	(E)	1,725		1,747		1,768		1,676		1,584
Total average tangible shareholders' equity (2)	(F)	1,126		1,146		1,164		1,121		1,033
Total average tangible common shareholders' equity (2)	(G)	1,106		1,105		1,124		1,080		992
Total tangible shareholders' equity, period-end (2)(3)	(H)	1,115		1,159		1,170		1,176		1,026
Total tangible common shareholders' equity, period-end (2)(3)	(I)	1,095		1,119		1,130		1,136		986
Total tangible assets, period-end (2)(3)	(J)	12,624		12,617		12,930		13,051		11,623

Total common shares outstanding, period-end (thousands)	(K)	50,199		49,585		50,394		51,045		45,522
Average diluted shares outstanding (thousands)	(L)	50,204		50,702		51,545		49,114		46,261

Core (loss)/earnings per common share, diluted (2)	(A/L)	$ (0.07)		$ 0.70		$ 0.46		$ 0.65		$ 0.60

Pre-tax, pre-provision net revenue per common share, diluted (2)		0.20		0.69		0.97		0.70		0.74
Core pre-tax, pre-provision net revenue per common share, diluted (2)		0.61		0.95		1.00		0.89		0.86

Tangible book value per common share, period-end (2)	(I/K)	21.82		22.56		22.42		22.25		21.66
Total tangible shareholders' equity/total tangible assets (2)	(H)/(J)	8.84		9.19		9.05		9.01		8.83

Performance ratios (4)
GAAP return on assets		(0.62)	%	0.78	%	0.67	%	0.79	%	0.78	%
Core return on assets (2)		(0.11)		1.08		0.71		1.01		0.92
GAAP return on equity		(4.61)		5.90		5.12		6.07		5.97
Core return on equity (2)	(A/E)	(0.85)		8.09		5.35		7.67		7.00
Core return on tangible common equity (2)(5)	(A+O)/(G)	(0.95)		13.12		8.74		12.21		11.44
Pre-tax, pre-provision net revenue to average assets (2)		0.08		0.26		0.37		0.27		0.28
Core pre-tax, pre-provision net revenue to average assets (2)		0.24		0.36		0.38		0.34		0.33
Efficiency ratio (2)(6)	(C-O)/(B+M+P)	66.92		53.66		53.37		56.41		59.54
Net interest margin		3.02		3.11		3.22		3.19		3.17

Supplementary data (in thousands)
Tax benefit on tax-credit investments (7)	(M)	$ 608		$ 2,503		$ 2,382		$ 2,381		$ 684
Non-interest income charge on tax-credit investments (8)	(N)	(486)		(1,996)		(1,942)		(1,938)		(579)
Net income on tax-credit investments	(M+N)	122		507		440		443		105

Intangible amortization	(O)	$ 1,580		$ 1,582		$ 1,526		$ 1,475		$ 1,200
Fully taxable equivalent income adjustment	(P)	1,824		1,934		1,826		1,882		1,809



(1) Net securities losses/(gains) include the change in fair value of the Company's equity securities in compliance with the Company's adoption of ASU 2016-01.
(2) Non-GAAP financial measure.
(3) Total tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end.
Total tangible assets is computed by taking total assets less the intangible assets at period-end.
(4) 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.
(5) Core return on tangible equity is computed by dividing the total core (loss)/income adjusted for the tax-effected amortization of intangible assets,
assuming a 27% marginal rate, by tangible equity.
(6) Efficiency ratio is computed by dividing total core tangible non-interest expense by the sum of total net interest income on a fully
taxable equivalent basis and total core non-interest income adjusted to include tax credit benefit of tax shelter investments. The
Company uses this non-GAAP measure to provide important information regarding its operational efficiency.
(7) The tax benefit is the direct reduction to the income tax provision due to tax 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-advantaged investments, which are incurred as the tax credits are generated.