-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JSREK7RYt+MqOnD4t8MrVOCc9/XG6cTHdKYMsmbs8Y8OqjzqMy/wQ+h7fvRqR6i+ AzqvtUfYoeoAkup05mI+1g== 0000909654-07-000165.txt : 20070130 0000909654-07-000165.hdr.sgml : 20070130 20070130140558 ACCESSION NUMBER: 0000909654-07-000165 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070129 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070130 DATE AS OF CHANGE: 20070130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BERKSHIRE HILLS BANCORP INC CENTRAL INDEX KEY: 0001108134 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 043510455 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51584 FILM NUMBER: 07563979 BUSINESS ADDRESS: STREET 1: 24 NORTH ST. CITY: PITTSFIELD STATE: MA ZIP: 01201 BUSINESS PHONE: 4134435601 MAIL ADDRESS: STREET 1: 24 NORTH ST CITY: PITTSFIELD STATE: MA ZIP: 01201 8-K 1 berkshire8kjan30-07.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) January 29, 2007 ---------------- BERKSHIRE HILLS BANCORP, INC. ----------------------------- (Exact name of registrant as specified in its charter) Delaware 0-51584 04-3510455 -------- -------- ---------- (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 24 North Street, Pittsfield, Massachusetts 01201 ------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (413) 443-5601 -------------- Not Applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. --------------------------------------------- On January 29, 2007, Berkshire Hills Bancorp, Inc. (the "Company"), the holding company for Berkshire Bank (the "Bank"), announced: (1) its financial results for the quarter and year ended December 31, 2006; (2) the declaration of a quarterly dividend of $0.14 per share; and (3) its annual meeting of stockholders will be held on May 3, 2007. The press release containing these announcements is filed as Exhibit 99.1 and incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. --------------------------------- (a) Financial Statements of Businesses Acquired: Not applicable (b) Pro Forma Financial Information: Not applicable (c) Shell Company Transactions: Not applicable (d) Exhibits Number Description ------ ----------- 99.1 Press Release Dated January 29, 2007 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BERKSHIRE HILLS BANCORP, INC. Dated: January 30, 2007 By: /s/ John S. Millet --------------------------------------- John S. Millet SENIOR VICE-PRESIDENT AND INTERIM CHIEF FINANCIAL OFFICER 3 EX-99.1 2 berkshire8kjan30-07ex99.txt EXHIBIT 99.1 BERKSHIRE HILLS BANCORP REPORTS 11% INCREASE IN ANNUAL CORE INCOME WITH 20% ANNUAL LOAN GROWTH AND FOURTH QUARTER CORE EARNINGS OF $0.48 PER SHARE DIVIDEND DECLARED, ANNUAL MEETING DATE SET PITTSFIELD, MA - January 29, 2007 - Berkshire Hills Bancorp, Inc. (the "Company") (NASDAQ: BHLB), the holding company for Berkshire Bank (the "Bank"), today reported a 37% increase in net income to $11.3 million in 2006 from $8.2 million in 2005. Net income per share increased by 17% to $1.29 in 2006 from $1.10 in 2005. Earnings growth included the benefit of organic growth and expansion, along with the acquisition of Woronoco Bancorp in June 2005. All earnings per share references are to diluted shares, and also reflect the additional shares issued for the Woronoco acquisition. The Company reported 2006 core income of $17.6 million ($2.00 per share), compared to $15.8 million ($2.11 per share) for the prior year. Core earnings in 2006 included charges totaling $0.14 per share for the de novo branch program and also were reduced by $0.11 per share due to compression of the net interest margin in 2006 (both stated on an after-tax basis). For the fourth quarter, the Company reported 2006 core income of $4.2 million ($0.48 per share), compared to $4.6 million ($0.52 per share) in 2005. This decrease was due to additional after-tax costs of the de novo branch program ($0.02 per share) and seasonal losses on newly acquired insurance operations ($0.02 per share). Fourth quarter 2006 GAAP net income was $4.1 million ($0.47 per share), compared to $4.8 million ($0.55 per share) in 2005. In addition to the above factors, GAAP results for the most recent quarter included non-core costs of $1.1 million ($0.09 per share after tax) primarily reflecting insurance agency integration costs and severance costs, together with net securities gains of $0.9 million. Annual financial highlights include: o 44% growth in fee income o 20% growth in total loans o 33% growth in total commercial loans o 11% growth in total deposits Momentum continued in the fourth quarter, including: o 46% growth in fee income compared to the linked quarter, due primarily to acquired insurance agencies o 26% annualized growth in total commercial loans o 16% annualized growth in total loans o 9% annualized growth in total deposits o 11% annualized growth in nonmaturity deposits o Completed acquisition of five insurance agencies according to plan o Completed restructuring of securities portfolio Michael P. Daly, President and Chief Executive Officer, stated, "We made major strides in 2006 in producing growth through our regional expansion, and strong organic growth momentum continued through the fourth quarter. We are expanding our branch locations, product offerings, and market share to build sustainable revenues despite the net interest margin pressures that we expect in the markets for the foreseeable future. We opened three new branches in New York, increasing our total branch count by 12% to a total of 27, and announced four new locations for 2007 to increase total branches by an additional 15% to 31. Our recent insurance agency acquisitions produced a 46% increase in total fourth quarter fee income, compared to the linked quarter." Mr. Daly continued, "We expect retail banking, commercial banking, and insurance to all be primary contributors to our growth in 2007, and we have expanded our management team to facilitate this growth. We continue to maintain a strong emphasis on asset quality, and our net loan charge-offs were a modest 0.07% of average loans in 2006. We also took steps in 2006 to improve our balance sheet with a securities restructuring. We have initiatives in process to continue to propel our organic growth by double digits in all major areas and to continue to expand our regional footprint." DIVIDEND DECLARATION - -------------------- The Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on February 22, 2007, to stockholders of record at the close of business on February 8, 2007. ANNUAL MEETING - -------------- The 2007 annual meeting of stockholders will be held on May 3, 2007 at the Crowne Plaza Hotel, One West Street, Pittsfield, Massachusetts at 10:00 A.M. (ET). The voting record date has been set as March 15, 2007. FINANCIAL CONDITION - ------------------- Total assets were $2.15 billion at December 31, 2006 increasing by 6% for the year. Total loans increased at a 16% annualized rate in the fourth quarter and at a 20% rate for the year, totaling $1.70 billion at year-end. Most major categories of loans increased during the year. Total commercial loans increased by 26% annualized in the fourth quarter and by 33% for the year due to strong originations in all regions. Auto loans increased by 24% annualized in the quarter and by 29% for the year, and also benefited from market share growth of indirect lending in Pioneer Valley and New York. Securities available for sale decreased by 50% for the year due to the deleveraging and restructuring initiated at the end of the third quarter. Total goodwill and other intangible assets increased by $22 million in 2006 due to the acquisition of the insurance agencies in the fourth quarter. Net loan charge-offs were 0.07% of total average loans for 2006. Quarter-end delinquencies (30-90 days) measured 0.26% of total loans at year-end 2006, compared to 0.29% at the beginning of the quarter. Non-performing assets were 0.24% of total assets at the beginning of the quarter; the majority of these assets were resolved during the quarter. An additional commercial relationship totaling $6.0 million (0.28% of assets) became non-accruing during the fourth quarter. A specific reserve of $0.5 million was assigned to this relationship at year-end. Total year-end non-performing assets measured 0.35% of total assets, and there was no other real estate owned. Total deposits increased at a 9% annualized rate in the most recent quarter and by 11% for the year, totaling $1.52 billion at year-end. Excluding run-off of brokered time deposits, deposit growth measured 11% and 13% for these periods, respectively. Growth was concentrated in money market accounts, which grew by 21% for both the fourth quarter annualized and for the year, and in time deposits, which grew by 7% and 20% for these same periods. Balances related to new account growth for lower costing transactions and savings accounts were more than offset by migrations of balances from these accounts into higher yielding money market and time deposit accounts. Total borrowings decreased by 13% during the year to $345 million at year-end due to the deleveraging with securities sales proceeds in the fourth quarter. Stockholders' equity increased by 5% during the year to $258 million at year-end due primarily to growth in retained earnings. Book value per share increased in 2006 to $29.63 from $28.81. Tangible book value per share decreased to $15.70 from $17.15 due to the goodwill and intangibles associated with the insurance agency acquisitions which are expected to be accretive to earnings beginning in 2007. The ratio of stockholders' equity to total assets decreased slightly during the year to 12.0% from 12.1%. The ratio of tangible stockholders' equity to total assets decreased to 6.7% from 7.6% due to the aforementioned goodwill and intangible assets. Treasury stock repurchases totaled 76,000 shares ($2.6 million) in 2006 and 15,000 shares ($0.5 million) in the fourth quarter. RESULTS OF OPERATIONS - --------------------- Most major categories of income and expense increased in 2006 compared to 2005, primarily due to the acquisition of Woronoco Bancorp in June 2005, plus the benefit of organic growth and branch expansion in New York. Net income in 2005 was affected by non-core charges of $8.8 million related to the termination of the Employee Stock Ownership Plan ("ESOP"), and $2.1 million in merger and systems conversion expenses primarily related to the Woronoco acquisition. Net income in 2006 was affected by non-core charges of $5.5 million related to a loan loss allowance adjustment, $5.6 million related to the investment portfolio restructuring, and $1.5 million in other non-core charges. The Company recorded non-core securities gains in both years. Net interest income increased by $8.6 million (17%) for the year and by $0.5 million (4%) for the fourth quarter compared to the prior year fourth quarter. Growth in average earning assets was partially offset by a decrease in the net interest margin due to the inverted yield curve and to competitive market conditions. The net interest margin rose to 3.31% in the most recent quarter due to the benefit of the securities restructuring at the beginning of the quarter, rebounding from 3.16% in the second quarter and compared to 3.36% in the fourth quarter of 2005. Total fee income increased by $4.2 million (44%) in 2006 compared to 2005, and year-to-year fourth quarter fee income increased by $1.4 million (47%). Growth for the year included the benefit of organic growth and acquisitions. Fourth quarter growth was primarily in insurance fees due mostly to the insurance agency acquisitions in the most recent quarter. Year-to-year fourth quarter deposit fees increased by $0.3 million (24%) due to the initiation of new checking account convenience services in the most recent quarter. Gains on the sale of securities and loans declined in 2006 and the Company substantially completed the liquidation of its marketable equity securities portfolio in the most recent quarter, which had been the primary source of securities gains in both years. Net securities gains in the most recent quarter also included net losses of about $250 thousand related to the completion of the securities restructuring program. The loan loss provision totaled $7.9 million for the year 2006 and $0.8 million for the most recent quarter. The year's provision included $5.5 million related to pool reserve changes in conjunction with a loan loss allowance adjustment in the third quarter. The year's provision also increased due to loan growth and higher impairment reserves. The fourth quarter provision measured 138% of same quarter net loan charge-offs. Total non-interest expense was essentially unchanged in 2006 compared to 2005, with increases related to growth, branch expansion, and acquisitions offset by the impact of the one time non-cash $8.8 million charge for the ESOP termination in 2005. Year-to-year fourth quarter non-interest expense increased by $2.9 million (24%). Expenses in the most recent quarter included $1.3 million in operating expenses related to the insurance agencies, together with costs related to the expansion of retail and commercial product offerings and seasonal incentives. Year-to-year fourth quarter non-core expenses increased by $0.6 million to $1.1 million, primarily due to nonrecurring insurance integration expenses and severance costs. The cost of the de novo branch program totaled approximately $0.6 million in the most recent quarter and $1.8 million for the year 2006 ($0.04 and $0.14 per share after tax, respectively). The effective income tax rate declined to 30% in 2006 compared to 49% in 2005 (the effective tax rate in 2005 was 33% excluding ESOP termination expenses). The year-to-year fourth quarter effective tax rate declined to 32% from 33%. The 2006 tax rate benefited from increased tax exempt income on municipal debt securities, together with the benefit of the third quarter loan loss allowance adjustment in the Bank, which has a higher effective tax rate. Results in 2006 also included income from discontinued operations from the sale of the Company's data processing subsidiary in June 2004. The Company does not expect to record any more income from these discontinued operations. CONFERENCE CALL - --------------- The Company will conduct a post-earnings conference call at 10:00 A.M. eastern time on Tuesday, January 30, 2007. President and Chief Executive Officer Michael P. Daly and Interim Chief Financial Officer John S. Millet will discuss highlights of the Company's fourth quarter and year-end financial results, along with guidance about expected financial results. Information about the conference call follows: Dial-in: 1-877-407-8035 Replay Dial-in: 1-877-660-6853 Replay Access Codes: Account #286; Conference ID #226736 (Both are needed to access the Replay) Replay Dates: January 30, 2007 at 1:00 P.M. (ET) through February 6, 2007 at 11:59 P.M. (ET) All interested parties are welcome to access the conference call and are requested to call in a few minutes prior to 10:00 A.M. (ET) to register for the event. The presentation by Messrs. Daly and Millet will last approximately 15 minutes, followed by another 15 minutes scheduled for questions and answers. Live access to the call on a listen only basis will also be available on the internet at the Company's website at www.berkshirebank.com by clicking on the --------------------- Investor Relations link and then selecting the Webcast link on the Corporate Profile page. A replay of the call will also be available at the website for an extended period of time. BACKGROUND - ---------- Berkshire Hills Bancorp, Inc. is the holding company for Berkshire Bank. Established in 1846, Berkshire Bank is one of Massachusetts' oldest and largest independent banks and the largest banking institution based in Western Massachusetts. The Bank is headquartered in Pittsfield, Massachusetts with branches serving communities throughout Western Massachusetts and Northeastern New York. The Bank is transitioning into a regional bank and is positioning itself as the financial institution of choice in its retail and commercial markets, delivering exceptional customer service and a broad array of competitively priced deposit, loan, insurance, wealth management and trust services, and investment products. For more information on Berkshire Hills Bancorp, Inc. or Berkshire Bank, visit www.berkshirebank.com or call --------------------- 800-773-5601. FORWARD-LOOKING STATEMENTS - -------------------------- Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties, and assumptions. These risks and uncertainties include among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; the quality or composition of the loan and investment portfolios; and the achievement of anticipated future earnings benefits from recent acquisitions. In addition, the following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements, including statements relating to the Company's recent insurance acquisitions (1) the cost savings from the insurance agency acquisitions may not be fully realized or take longer than expected; (2) operating costs, customer loss and business disruption following the acquisitions, including adverse effects on relationships with employees, may be greater than expected; (3) adverse governmental or regulatory policies may be enacted; (4) the risks associated with continued diversification of assets and adverse changes to credit quality; and (5) difficulties associated with achieving expected future financial results. Additionally, other risks and uncertainties may be described in the Company's quarterly reports on Form 10-Q for the quarters ended March 31, June 30 and September 30 and in its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future ----------- results may differ significantly from results discussed in these forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements. NON-GAAP FINANCIAL MEASURES - --------------------------- This press release contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles ("GAAP"). The Company's management uses certain non-GAAP measures for operational and investment decisions and believes that these measures are among several useful measures for understanding its operating results, performance trends, and financial condition. These measures should not be construed as a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included in the accompanying financial tables and elsewhere in this release. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. During 2006, the Company identified charges related to the balance sheet repositioning and to the loan loss allowance adjustment as non-core in the computation of core earnings. The Company views these charges as infrequent and not specifically related to the Company's operating activities during the year. The Company primarily utilizes the non-GAAP measure of core earnings in evaluating operating trends during the current fiscal period, and compared to the prior fiscal period. The core earnings measure is not intended to substitute for GAAP net income, but is an additional measure that the Company uses and believes is useful for understanding its operating results.
BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED BALANCE SHEETS - UNAUDITED =========================================================================================================================== December 31, September 30, December 31, 2006 2006 2005 --------------------------------------------------------------- (IN THOUSANDS) ASSETS Cash and due from banks $ 30,774 $ 25,371 $ 30,977 Short-term investments 211 199 110 ------------------- ------------------- ------------------- Total cash and cash equivalents 30,985 25,570 31,087 Due from broker - 95,022 1,425 Securities available for sale, at fair value 194,206 251,859 390,876 Securities held to maturity, at amortized cost 39,968 39,957 29,908 Residential mortgages 599,273 585,394 548,884 Commercial mortgages 566,339 516,973 411,426 Commercial business loans 190,493 193,879 158,948 Consumer loans 342,882 337,171 300,972 ------------------- ------------------- ------------------- Total loans 1,698,987 1,633,417 1,420,230 Less: Allowance for loan losses (19,370) (19,153) (13,001) ------------------- ------------------- ------------------- Net loans 1,679,617 1,614,264 1,407,229 Premises and equipment, net 29,130 27,944 26,236 Accrued interest receivable 9,165 9,395 8,508 Goodwill 104,531 88,594 88,092 Other intangible assets 16,810 10,071 11,524 Bank owned life insurance 19,810 19,602 19,002 Cash surrender value - other life insurance 10,528 10,445 11,503 Other assets 14,892 12,374 10,163 ------------------- ------------------- ------------------- Total assets $ 2,149,642 $ 2,205,097 $ 2,035,553 =================== =================== =================== LIABILITIES AND STOCKHOLDERS' EQUITY Demand / NOW deposits $ 331,196 $ 317,534 $ 328,779 Money market deposits 297,155 281,577 244,784 Savings deposits 202,213 208,998 222,387 Time deposits less than $100,000 369,590 363,699 308,156 All other time deposits 321,784 316,293 267,112 ------------------- ------------------- ------------------- Total deposits 1,521,938 1,488,101 1,371,218 Borrowings 345,005 441,216 397,453 Junior subordinated debentures 15,464 15,464 15,464 Other liabilities 9,074 5,615 5,352 ------------------- ------------------- ------------------- Total liabilities 1,891,481 1,950,396 1,789,487 Total stockholders' equity 258,161 254,701 246,066 ------------------- ------------------- ------------------- Total liabilities and stockholders' equity $ 2,149,642 $ 2,205,097 $ 2,035,553 =================== =================== ===================
F-1
BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED ========================================================================================================================= LOAN ANALYSIS December 31, 2006 September 30, 2006 December 31, 2005 ------------------------ ---------------------- ----------------------- Percent Percent Percent Balance of Total Balance of Total Balance of Total ------------------------ ---------------------- ----------------------- (DOLLARS IN MILLIONS) Residential mortgages 1 - 4 Family $ 567 33 % $ 553 34 % $ 514 37 % Construction 32 2 32 2 35 2 ------------ ---------- ---------- ---------- ---------- ----------- Total residential mortgages 599 35 585 36 549 39 Commercial mortgages Construction 130 8 116 7 59 4 Single and multi-family 65 4 67 4 69 5 Other commercial real estate 372 22 334 20 283 20 ------------ ---------- ---------- ---------- ---------- ----------- Total commercial mortgages 567 34 517 31 411 29 Commercial business loans 190 11 194 12 159 11 Consumer loans Auto 196 12 185 12 152 11 Home equity and other 147 8 152 9 149 10 ------------ ---------- ---------- ---------- ---------- ----------- Total consumer loans 343 20 337 21 301 21 Total loans $ 1,699 100 % $ 1,633 100 % $ 1,420 100 % ============ ========== ========== ========== ========== =========== DEPOSIT ANALYSIS December 31, 2006 September 30, 2006 December 31, 2005 ------------------------ ---------------------- ----------------------- Percent Percent Percent Balance of Total Balance of Total Balance of Total ------------ ---------- ---------- ---------- ---------- ----------- (DOLLARS IN MILLIONS) Demand $ 178 12 % $ 178 12 % $ 180 13 % NOW 153 10 139 9 149 11 Money market 297 20 282 19 245 18 Savings 202 13 209 14 222 16 ------------ ---------- ---------- ---------- ---------- ----------- Total non-maturity deposits 830 55 808 54 796 58 Time less than $100,000 370 24 364 24 308 23 Time $100,000 or more 280 18 269 19 210 15 Brokered time 42 3 47 3 57 4 ------------ ---------- ---------- ---------- ---------- ----------- Total time deposits 692 45 680 46 575 42 Total deposits $ 1,522 100 % $ 1,488 100 % $ 1,371 100 % ============ ========== ========== ========== ========== ===========
F-2
BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED =================================================================================================================================== Three Months Ended Twelve Months Ended ------------------------------- ------------------------------ December 31, December 31, 2006 2005 2006 2005 ------------------------------- ------------------------------ (IN THOUSANDS, EXCEPT PER SHARE DATA) INTEREST AND DIVIDEND INCOME Loans $ 28,076 $ 21,820 $ 100,836 $ 70,103 Securities 3,096 4,679 16,957 17,517 Short-term investments 209 13 258 112 --------------- -------------- -------------- -------------- Total interest and dividend income 31,381 26,512 118,051 87,732 --------------- -------------- -------------- -------------- INTEREST EXPENSE Deposits 11,679 7,359 41,044 21,048 Borrowings 4,131 4,116 16,767 15,067 --------------- -------------- -------------- -------------- Total interest expense 15,810 11,475 57,811 36,115 --------------- -------------- -------------- -------------- NET INTEREST INCOME 15,571 15,037 60,240 51,617 PROVISION FOR LOAN LOSSES 785 315 7,860 1,313 --------------- -------------- -------------- -------------- Net interest income after provision for loan losses 14,786 14,722 52,380 50,304 --------------- -------------- -------------- -------------- NON-INTEREST INCOME Deposit fees 1,800 1,452 5,803 4,539 Wealth management fees 877 729 3,287 2,742 Insurance fees 1,645 664 3,757 1,343 Loan fees 132 189 692 749 Increase in cash surrender value of life insurance 267 244 1,034 893 Gain (loss) on sale of securities, net 924 882 (3,130) 3,532 Gain on sale of loans and securitized loans, net - - - 773 Other 186 137 605 352 --------------- -------------- -------------- -------------- Total non-interest income 5,831 4,297 12,048 14,923 --------------- -------------- -------------- -------------- NON-INTEREST EXPENSE Salaries and benefits 7,296 5,758 24,708 20,281 Occupancy and equipment 2,061 1,799 7,699 5,798 Data processing and telecommunications 917 571 3,467 1,894 Professional services 562 471 1,873 1,899 Marketing and advertising 312 355 1,308 1,088 Foreclosed real estate and other loans, net 161 187 356 743 Amortization of intangible assets 601 481 2,035 1,140 Other recurring non-interest expense 1,617 1,658 5,912 5,177 Termination of Employee Stock Ownership Plan - 168 - 8,836 Other non-recurring expense 1,125 352 1,510 2,142 --------------- -------------- -------------- -------------- Total non-interest expense 14,652 11,800 48,868 48,998 --------------- -------------- -------------- -------------- Income from continuing operations before income taxes 5,965 7,219 15,560 16,229 Income tax expense 1,880 2,381 4,668 8,003 --------------- -------------- -------------- -------------- Net income from continuing operations 4,085 4,838 10,892 8,226 =============== ============== ============== ============== Income from discontinued operations before income taxes 29 - 606 - Income tax expense 11 - 235 - --------------- -------------- -------------- -------------- Net income from discontinued operations 18 - 371 - =============== ============== ============== ============== NET INCOME $ 4,103 $ 4,838 $ 11,263 $ 8,226 =============== ============== ============== ============== Basic earnings per share Continuing operations $ 0.48 $ 0.57 $ 1.28 $ 1.16 Discontinued operations - - 0.04 - --------------- -------------- -------------- -------------- Net income $ 0.48 $ 0.57 $ 1.32 $ 1.16 =============== ============== ============== ============== Diluted earnings per share Continuing operations $ 0.47 $ 0.55 $ 1.25 $ 1.10 Discontinued operations - - 0.04 - --------------- -------------- -------------- -------------- Net income $ 0.47 $ 0.55 $ 1.29 $ 1.10 =============== ============== ============== ==============
F-3
BERKSHIRE HILLS BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED ==================================================================================================================================== Quarters Ended ------------------------------------------------------------------- Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, (IN THOUSANDS, EXCEPT PER SHARE DATA) 2006 2006 2006 2006 2005 ------------------------------------------------------------------- INTEREST AND DIVIDEND INCOME Residential mortgages $ 7,825 $ 7,541 $ 7,290 $ 7,055 $ 7,142 Commercial mortgages 10,438 9,226 8,218 7,625 7,001 Commercial business loans 3,780 3,889 3,250 2,815 2,865 Consumer loans 6,033 5,732 5,259 4,861 4,812 ------------ ------------ ------------- ------------ ------------ Total interest on loans 28,076 26,388 24,017 22,356 21,820 Securities 3,096 4,985 4,180 4,697 4,679 Short-term investments 209 15 15 17 13 ------------ ------------ ------------- ------------ ------------ Total interest and dividend income 31,381 31,388 28,212 27,070 26,512 ------------ ------------ ------------- ------------ ------------ INTEREST EXPENSE Deposits 11,679 10,766 9,843 8,756 7,359 Borrowings 4,131 5,019 3,911 3,706 4,116 ------------ ------------ ------------- ------------ ------------ Total interest expense 15,810 15,785 13,754 12,462 11,475 ------------ ------------ ------------- ------------ ------------ NET INTEREST INCOME 15,571 15,603 14,458 14,608 15,037 PROVISION FOR LOAN LOSSES 785 6,185 600 290 315 ------------ ------------ ------------- ------------ ------------ Net interest income after provision for loan losses 14,786 9,418 13,858 14,318 14,722 ------------ ------------ ------------- ------------ ------------ NON-INTEREST INCOME Deposit fees 1,800 1,334 1,383 1,286 1,452 Wealth management fees 877 882 772 756 729 Insurance fees 1,645 623 581 908 664 Loan fees 132 209 125 226 189 Increase in cash surrender value of life insurance 267 227 247 293 244 Gain (loss) on sale of securities, net 924 (5,080) 529 497 882 Other 186 21 273 125 137 ------------ ------------ ------------- ------------ ------------ Total non-interest income 5,831 (1,784) 3,910 4,091 4,297 ------------ ------------ ------------- ------------ ------------ NON-INTEREST EXPENSE Salaries and benefits 7,296 6,001 5,758 5,653 5,758 Occupancy and equipment 2,061 1,885 1,822 1,931 1,799 Data processing and telecommunications 917 853 813 884 875 Professional services 562 376 432 503 471 Marketing and advertising 312 403 350 243 355 Foreclosed real estate and other loans, net 161 58 105 32 187 Amortization of intangible assets 601 478 478 478 481 Other recurring non-interest expense 1,617 1,299 1,495 1,501 1,354 Termination of Employee Stock Ownership Plan - - - - 168 Other non-recurring expense 1,125 - 385 - 352 ------------ ------------ ------------- ------------ ------------ Total non-interest expense 14,652 11,353 11,638 11,225 11,800 ------------ ------------ ------------- ------------ ------------ Income (loss) from continuing operations before income taxes 5,965 (3,719) 6,130 7,184 7,219 Income tax expense (benefit) 1,880 (1,466) 1,888 2,366 2,381 ------------ ------------ ------------- ------------ ------------ Net income (loss) from continuing operations 4,085 (2,253) 4,242 4,818 4,838 ============ ============ ============= ============ ============ Income from discontinued operations before income taxes 29 217 359 - - Income tax expense 11 84 138 - - ------------ ------------ ------------- ------------ ------------ Net income from discontinued operations 18 133 221 - - ============ ============ ============= ============ ============ NET INCOME (LOSS) $ 4,103 $ (2,120) $ 4,463 $ 4,818 $ 4,838 ============ ============ ============= ============ ============ Basic earnings (loss) per share Continuing operations $ 0.48 $ (0.26) $ 0.50 $ 0.57 $ 0.57 Discontinued operations - 0.01 0.02 - - ------------ ------------ ------------- ------------ ------------ Net income (loss) $ 0.48 $ (0.25) $ 0.52 $ 0.57 $ 0.57 ============ ============ ============= ============ ============ Diluted earnings (loss) per share Continuing operations $ 0.47 $ (0.26) $ 0.48 $ 0.55 $ 0.55 Discontinued operations - 0.01 0.03 - - ------------ ------------ ------------- ------------ ------------ Net income (loss) $ 0.47 $ (0.25) $ 0.51 $ 0.55 $ 0.55 ============ ============ ============= ============ ============
F-4
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES ASSET QUALITY ANALYSIS ==================================================================================================================================== At or for the Quarters Ended ---------------------------------------------------------------------- Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2006 2006 2006 2006 2005 ---------------------------------------------------------------------- (DOLLARS IN THOUSANDS) NON-PERFORMING ASSETS Nonaccruing loans: Residential mortgages $ 15 $ 238 $ 234 $ 289 $ 360 Commercial mortgages 308 2,427 - - 127 Commercial business loans 7,203 2,445 405 480 553 Consumer loans 66 122 133 139 146 ------------- ------------- ------------- ------------- ----------- Total nonaccruing loans $ 7,592 $ 5,232 $ 772 $ 908 $ 1,186 Real estate owned - - 105 - - ------------- ------------- ------------- ------------- ----------- Total nonperforming assets $ 7,592 $ 5,232 $ 877 $ 908 $ 1,186 ============= ============= ============= ============= =========== Total nonperforming loans/total loans 0.45% 0.32% 0.05% 0.06% 0.08% Total nonperforming assets/total assets 0.35% 0.24% 0.04% 0.04% 0.06% PROVISION AND ALLOWANCE FOR LOAN LOSSES Balance at beginning of period $ 19,154 $ 13,537 $ 13,090 $ 13,001 $ 13,123 Charged-off loans (754) (327) (364) (331) (538) Recoveries on charged-off loans 185 184 211 130 101 ------------- ------------- ------------- ------------- ----------- Net loans charged-off (569) (143) (153) (201) (437) Transfer of commitment reserve - (425) - - - Provision for loan losses 785 6,185 600 290 315 ------------- ------------- ------------- ------------- ----------- Balance at end of period $ 19,370 $ 19,154 $ 13,537 $ 13,090 $ 13,001 ============= ============= ============= ============= =========== Allowance for loan losses/nonperforming loans 255% 366% 1753% 1442% 1096% Allowance for loan losses/total loans 1.14% 1.18% 0.87% 0.90% 0.92% NET LOAN (CHARGE-OFFS) RECOVERIES Residential mortgages $ - $ - $ (27) $ - $ - Commercial mortgages - - - - - Commercial business loans (420) (6) 5 3 (268) Consumer loans (149) (137) (131) (204) (169) ------------- ------------- ------------- ------------- ----------- Total net $ (569) $ (143) $ (153) $ (201) $ (437) ============= ============= ============= ============= =========== Net charge-offs (annualized)/average loans 0.14% 0.04% 0.04% 0.06% 0.12% AVERAGE FICO SCORES OF CONSUMER AUTOMOBILE LOANS 726 724 721 719 716 DELINQUENT LOANS (30-90 DAYS)/TOTAL LOANS 0.26% 0.29% 0.40% 0.27% 0.31%
F-5
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS ==================================================================================================================================== At or for the Quarters Ended ---------------------------------------------------------------------- Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2006 2006 2006 2006 2005 ---------------------------------------------------------------------- PER SHARE DATA Core earnings, diluted $ 0.48 $ 0.54 $ 0.47 $ 0.51 $ 0.52 Net earnings (loss), diluted 0.47 (0.25) 0.51 0.55 0.55 Tangible book value 15.70 17.96 17.30 17.26 17.15 Total book value 29.63 29.31 28.79 28.79 28.81 Market price at period end 33.46 35.59 35.48 34.94 33.50 PERFORMANCE RATIOS Core return on tangible assets 0.91 % 0.97 % 0.89 % 0.98 % 1.02 % Return (loss) on total assets 0.77 (0.37) 0.85 0.94 0.96 Core return on tangible equity 12.97 12.68 11.41 12.63 13.49 Return (loss) on total equity 6.38 (3.15) 7.00 7.64 7.89 Net interest margin, fully taxable equivalent 3.31 3.22 3.16 3.27 3.36 Core tangible non-interest income to assets 0.97 0.63 0.68 0.74 0.71 Non-interest income to assets 1.09 (0.33) 0.75 0.80 0.85 Core tangible non-interest expense to assets 2.54 2.09 2.17 2.21 2.24 Non-interest expense to assets 2.73 2.08 2.23 2.20 2.32 Efficiency ratio 61.42 55.92 58.73 57.48 57.00 ASSET QUALITY RATIOS Net charge-offs (annualized)/average loans 0.14 % 0.04 % 0.04 % 0.06 % 0.12 % Non-performing assets/total assets 0.35 0.24 0.04 0.04 0.06 Loan loss allowance/total loans 1.14 1.18 0.87 0.90 0.92 Loan loss allowance/nonperforming loans 2.55 x 3.66 x 17.53 x 14.42 x 10.96 x CAPITAL RATIOS Stockholders' equity to total assets 12.01 % 11.55 % 11.56 % 12.04 % 12.09 % Tangible stockholders' equity to tangible assets 6.75 7.41 7.28 7.59 7.56 ANNUALIZED YEAR-TO-DATE GROWTH Total loans 20 % 20 % 19 % 9 % 71 % Total deposits 11 11 14 23 62 FINANCIAL DATA (IN MILLIONS) Total assets $ 2,150 $ 2,205 $ 2,148 $ 2,056 $ 2,036 Total loans 1,699 1,633 1,555 1,453 1,420 Total intangible assets 121 99 99 99 100 Total deposits 1,522 1,488 1,464 1,451 1,371 Total stockholders' equity 258 255 248 248 246 Total core income 4.2 4.7 4.1 4.5 4.6 Total net income (loss) 4.1 (2.1) 4.5 4.8 4.8 --------------------------------------------------------------------------------------------------------------------------------- (1) All performance ratios are annualized and are based on average balance sheet amounts, where applicable. (2) Data for the second quarter of 2006 had no revenue for Federal Home Loan Bank dividends due to a delay in the dividend declaration schedule. Third quarter data includes 2 such dividends, including $420,000 delayed from the second quarter.
F-6
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCES ================================================================================================================================= Quarters Ended --------------------------------------------------------------------------------------- Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2006 2006 2006 2006 2005 --------------------------------------------------------------------------------------- (IN THOUSANDS) Assets Loans Residential mortgages $ 592,016 $ 576,105 $ 561,444 $ 554,833 $ 554,328 Commercial mortgages 547,096 496,428 450,283 427,891 398,867 Commercial business loans 187,997 185,573 161,618 152,970 159,741 Consumer loans 341,311 327,746 312,813 298,020 298,917 ---------------- ---------------- --------------- --------------- --------------- Total loans 1,668,420 1,585,852 1,486,158 1,433,714 1,411,853 Securities 259,838 398,915 408,542 418,744 425,237 Short-term investments 16,343 1,017 744 1,561 538 ---------------- ---------------- --------------- --------------- --------------- Total earning assets 1,944,601 1,985,784 1,895,444 1,854,019 1,837,628 Intangible assets 115,580 98,793 98,944 99,318 99,862 Other assets 88,125 98,307 94,805 90,412 94,608 ---------------- ---------------- --------------- --------------- --------------- Total assets $ 2,148,306 $ 2,182,884 $ 2,089,193 $ 2,043,749 $ 2,032,098 ================ ================ =============== =============== =============== Liabilities and stockholders' equity Deposits NOW $ 138,293 $ 131,687 $ 140,103 $ 141,364 $ 143,120 Money market 299,927 283,194 284,447 269,685 251,462 Savings 204,104 212,706 208,345 217,475 226,267 Time 686,818 664,207 643,398 611,324 558,963 ---------------- ---------------- --------------- --------------- --------------- Total interest-bearing deposits 1,329,142 1,291,794 1,276,293 1,239,848 1,179,812 Borrowings 371,201 445,494 380,131 380,019 424,293 ---------------- ---------------- --------------- --------------- --------------- Total interest-bearing liabilities 1,700,343 1,737,288 1,656,424 1,619,867 1,604,105 Non-interest-bearing demand deposits 178,756 178,535 171,787 168,478 175,025 Other liabilities 10,511 8,221 6,456 5,099 6,661 ---------------- ---------------- --------------- --------------- --------------- Total liabilities 1,889,610 1,924,044 1,834,667 1,793,444 1,785,791 Stockholders' equity 258,696 258,840 254,526 250,305 246,307 ---------------- ---------------- --------------- --------------- --------------- Total liabilities and equity $ 2,148,306 $ 2,182,884 $ 2,089,193 $ 2,043,749 $ 2,032,098 ================ ================ =============== =============== =============== Supplementary data Total non-maturity deposits $ 821,080 $ 806,122 $ 804,682 $ 797,002 $ 795,874 Total deposits 1,507,898 1,470,329 1,448,080 1,408,326 1,354,837 Fully taxable equivalent income adj. 566 548 506 494 494 - --------------------------------------------------------------------------------------------------------------------------------- (1) Average balances for securities available-for-sale are based on amortized cost.
F-7
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES AVERAGE YIELDS (FULLY TAXABLE EQUIVALENT - ANNUALIZED) =================================================================================================================== Quarters Ended ------------------------------------------------------------------------------ Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2006 2006 2006 2006 2005 ------------------------------------------------------------------------------ Earning assets Loans Residential mortgages 5.29 % 5.24 % 5.19 % 5.09 % 5.15 % Commercial mortgages 7.57 7.37 7.32 7.23 6.96 Commercial business loans 7.98 8.31 8.07 7.46 7.12 Consumer loans 7.01 6.94 6.74 6.61 6.39 Total loans 6.68 6.58 6.46 6.21 6.15 Securities 5.64 5.55 4.59 4.96 4.87 Short-term investments 5.25 5.25 4.94 4.45 3.96 Total earning assets 6.52 6.38 6.07 5.99 5.83 Funding liabilities Deposits NOW 1.23 0.98 1.02 1.01 0.65 Money Market 3.61 3.51 3.36 3.12 2.61 Savings 1.03 1.02 0.78 0.76 0.77 Time 4.62 4.41 4.17 3.92 3.57 Total interest-bearing deposits 3.49 3.31 3.09 2.86 2.47 Borrowings 4.42 4.47 4.13 3.96 3.85 Total interest-bearing liabilities 3.69 3.60 3.33 3.12 2.84 Net interest spread 2.83 2.78 2.74 2.87 2.99 Net interest margin 3.31 3.22 3.16 3.27 3.36 Cost of funds 3.34 3.27 3.02 2.83 2.56 - ------------------------------------------------------------------------------------------------------------------- (1) Average balances and yields for securities available-for-sale are based on amortized cost. (2) Cost of funds includes all deposits and borrowings. (3) Data for the second quarter of 2006 had no revenue for Federal Home Loan Bank dividends due to a delay in the dividend declaration schedule. Third quarter data includes 2 such dividends, including $420,000 delayed from the second quarter.
F-8
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ==================================================================================================================================== At or for the Quarters Ended For twelve months ended ------------------------------------------------------------------------------------ Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, December 31, 2006 2006 2006 2006 2005 2006 2005 - ------------------------------------------------------------------------------------------------------------------------------------ (DOLLARS IN THOUSANDS) Net income (loss) $ 4,103 $ (2,120) $ 4,463 $ 4,818 $ 4,838 $ 11,263 $ 8,226 Adj: (Gain) loss on sale of securities, net (924) 5,080 (529) (497) (882) 3,130 (3,532) Less: income from discontinued operations (29) (217) (359) - - (606) - Plus: Termination of ESOP - - - - 168 - 8,836 Plus: Loan loss allowance pool adjustment - 5,512 - - - 5,512 - Plus: Other nonrecurring expense 1,125 - 385 - 352 1,510 2,142 Adj: Income taxes (57) (3,525) 166 164 119 (3,252) 133 ---------- ---------- --------- --------- ---------- ----------- ---------- Core income (A) 4,218 4,730 4,126 4,485 4,595 17,557 15,805 Plus: Amort. Intang. Assets (net of taxes) 403 320 320 320 322 1,363 741 ---------- ---------- --------- --------- ---------- ----------- ---------- Tangible core income (B) $ 4,621 $ 5,050 $ 4,446 $ 4,805 $ 4,917 $ 18,920 $ 16,546 ========== ========== ========= ========= ========== =========== ========== Total non-interest income $ 5,831 $ (1,784) $ 3,910 $ 4,091 $ 4,297 $ 12,048 $ 14,923 Adj: (Gain) loss on sale of securities, net (924) 5,080 (529) (497) (882) 3,130 (3,532) ---------- ---------- --------- --------- ---------- ----------- ---------- Total core non-interest income (C) 4,907 3,296 3,381 3,594 3,415 15,178 11,391 Net interest income 15,571 15,603 14,458 14,608 15,037 60,240 51,617 ---------- ---------- --------- --------- ---------- ----------- ---------- Total core revenue (C1) $ 20,478 $ 18,899 $17,839 $18,202 $ 18,452 $ 75,418 $ 63,008 ========== ========== ========= ========= ========== =========== ========== Total non-interest expense $ 14,652 $ 11,353 $11,638 $11,225 $ 11,800 $ 48,868 $ 48,998 Less: Termination of ESOP - - - - (168) - (8,836) Less: Other non-recurring expense (1,125) - (385) - (352) (1,510) (2,142) ---------- ---------- --------- --------- ---------- ----------- ---------- Core non-interest expense 13,527 11,353 11,253 11,225 11,280 47,358 38,020 Less: Amortization of intangible assets (601) (478) (478) (478) (481) (2,035) (1,140) ---------- ---------- --------- --------- ---------- ----------- ---------- Total core tangible non-interest expense (D) $ 12,926 $ 10,875 $10,775 $10,747 $ 10,799 $ 45,323 $ 36,880 ========== ========== ========= ========= ========== =========== ========== (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) Total average assets $ 2,148 $ 2,183 $ 2,089 $ 2,044 $ 2,032 $ 2,116 $ 1,745 Less: Average intangible assets (116) (99) (99) (99) (100) (103) (62) ---------- ---------- --------- --------- ---------- ----------- ---------- Total average tangible assets (E) $ 2,032 $ 2,084 $ 1,990 $ 1,944 $ 1,932 $ 2,013 $ 1,683 ========== ========== ========= ========= ========== =========== ========== Total average stockholders' equity $ 259 $ 259 $ 255 $ 250 $ 246 $ 256 $ 197 Less: Average intangible assets (116) (99) (99) (99) (100) (103) (62) ---------- ---------- --------- --------- ---------- ----------- ---------- Total average tangible stockholders' equity (F) $ 143 $ 160 $ 156 $ 151 $ 146 $ 153 $ 135 ========== ========== ========= ========= ========== =========== ========== Total stockholders' equity, period-end $ 258 $ 255 $ 248 $ 248 $ 246 $ 258 $ 246 Less: Intangible assets, period-end (121) (99) (99) (99) (100) (121) (100) ---------- ---------- --------- --------- ---------- ----------- ---------- Total tangible stockholders' equity, period-end (G) $ 137 $ 156 $ 149 $ 149 $ 146 $ 137 $ 146 ========== ========== ========= ========= ========== =========== ========== Total shares outstanding, period-end (thousands) (H) 8,713 8,689 8,622 8,601 8,540 8,713 8,540 Average diluted shares outstanding (thousands) (I) 8,823 8,557 8,760 8,755 8,813 8,726 7,503 Core earnings per share (A/I) $ 0.48 $ 0.54 $ 0.47 $ 0.51 $ 0.52 $ 2.00 $ 2.11 Tangible book value per share (G/H) $ 15.70 $ 17.96 $ 17.30 $ 17.32 $ 17.15 $ 15.70 $ 17.15 Core return on tangible assets (B/E) 0.91 % 0.97 % 0.89 % 0.98 % 1.02 % 0.94 % 0.98% Core return on tangible equity (B/F) 12.97 12.68 11.41 12.63 13.49 12.40 12.30 Core tangible non-interest income to assets (C/E) 0.97 0.63 0.68 0.74 0.71 0.75 0.68 Core tangible non-interest exp to assets (D/E) 2.54 2.09 2.17 2.21 2.24 2.25 2.19 Efficiency ratio 61.42 55.92 58.73 57.48 57.00 58.46 57.03 - --------------------------------------------------------------------------------------------------------------- (1) Efficiency ratio is computed by dividing total tangible core non-interest expense by the sum of total net interest income on a fully taxable equivalent basis and total core non-interest income. The Company uses this non-GAAP measure, which is used widely in the banking industry, to provide important information regarding its operational efficiency. (2) Ratios are annualized and based on average balance sheet amounts, where applicable. (3) In the third quarter 2006, the average diluted shares for core income per share totaled 8,805,000, and for 2006 core income per share diluted shares totaled 8,786,000. (4) Quarterly data may not sum to annual data due to rounding.
F-9 CONTACT: Berkshire Hills Bancorp, Inc. Michael P. Daly, 413-236-3194 President and Chief Executive Officer or John S. Millet, 413-236-3252 Senior Vice President, Interim Chief Financial Officer, and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----