Berkshire Hills Bancorp, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets decreased to $11.6 billion from $12.4 billion at the end of 2023, primarily due to a reduction in cash and cash equivalents, which fell to $570 million from $1.2 billion. Total deposits also declined to $9.6 billion, down from $10.6 billion, reflecting the sale of ten bank branches in New York, which included $383 million in deposits. This strategic divestiture resulted in a pre-tax gain of $16 million.

For the three months ended September 30, 2024, the company reported net income of $37.5 million, a substantial increase from $19.5 million in the same period of 2023. This growth was driven by a non-operating gain from the branch sale, which contributed $0.30 per share after tax. Total revenue for the quarter rose to $125.6 million, compared to $107.8 million a year earlier. Non-interest income surged by 115% year-over-year, largely due to the aforementioned branch sale gain.

Net interest income for the third quarter was $88.1 million, a slight decrease from $90.3 million in the prior year, attributed to a decrease in average earning assets and a reduced net interest margin. The provision for credit losses also decreased to $5.5 million from $8 million, reflecting improved credit quality, with delinquent and non-performing loans at historically low levels of 0.53% of total loans.

For the nine months ended September 30, 2024, net income totaled $41.3 million, down from $71 million in the same period of 2023, primarily due to a $50 million loss on the sale of securities in the first quarter. Year-to-date operating income, excluding this loss and the branch sale gain, was $69 million, a decrease of 6% year-over-year.

The company’s total loans increased by 2% year-to-date to $9.2 billion, with growth in commercial loans offsetting a targeted runoff in consumer loans. The efficiency ratio for the first nine months of 2024 was 64.45%, compared to 62.65% in 2023, indicating a need for continued focus on cost management.

Berkshire Hills Bancorp's capital ratios remained strong, with a total capital to risk-weighted assets ratio of 13.7% and a Tier 1 capital ratio of 12.5%, both exceeding regulatory requirements. The company also maintained a robust liquidity position, with liquid assets totaling $1.2 billion.

Overall, the financial results reflect a mix of strategic divestitures, improved profitability in the third quarter, and ongoing challenges in the first nine months of the year, particularly related to securities losses.