Berkshire Hills Bancorp Reports $61 Million Net Income, Announces Merger with Brookline Bancorp

Berkshire Hills Bancorp, Inc. reported a net income of $61 million, or $1.43 per share, for the fiscal year ending December 31, 2024, a decrease from $70 million, or $1.60 per share, in 2023. The decline in profitability was primarily attributed to a $25 million increase in non-operating losses related to the sale of securities. However, the company’s non-GAAP operating income rose to $95 million, or $2.22 per share, reflecting a 2% increase from the previous year, driven by lower credit loss provisions and reduced non-interest expenses.

Total assets for Berkshire decreased by $157 million, or 1%, to $12.3 billion, largely due to a $419 million reduction in investment securities, which was primarily a result of strategic sales to improve liquidity and fund branch sales. The company’s total loans increased by $345 million, or 4%, to $9.4 billion, with commercial loans growing by 7%. The loan-to-deposit ratio rose to 90% from 85% in the prior year, indicating a tighter funding environment.

In terms of operational developments, Berkshire announced a merger agreement with Brookline Bancorp, Inc., valued at approximately $1.1 billion, which is expected to close in the second half of 2025. This merger is anticipated to enhance the combined company's market position and operational efficiencies. Additionally, Berkshire has been optimizing its branch network, consolidating several locations and selling ten branches, which has contributed to a reduction in overall expenses.

The company’s employee headcount decreased to 1,216 full-time equivalent staff, down from 1,340 in 2023, as part of its workforce realignment strategy. Despite these reductions, Berkshire has focused on enhancing its digital banking capabilities, launching the Berkshire One suite of digital-first banking solutions to improve customer engagement and operational efficiency.

Looking ahead, Berkshire remains cautious about the economic environment, particularly regarding interest rate fluctuations and their impact on loan performance. The company’s management has indicated that while they expect continued growth in commercial lending, they are also closely monitoring credit quality and market conditions to mitigate potential risks associated with rising interest rates and economic uncertainties.