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OPERATING SEGMENTS
9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
OPERATING SEGMENTS
OPERATING SEGMENTS
The Company has two reportable operating segments, Banking and Insurance, which are delineated by the consolidated subsidiaries of Berkshire Hills Bancorp, Inc.  Banking includes the activities of the Bank and its subsidiaries, which provide retail and commercial banking, along with wealth management and investment services.  Insurance includes the activities of Berkshire Insurance Group, Inc. (“BIG”), which provides retail and commercial insurance services.  The only other consolidated financial activity of the Company is the Parent, which consists of the transactions of Berkshire Hills Bancorp, Inc. Management fees for corporate services provided by the Bank to BIG and the Parent are eliminated.
The accounting policies of each reportable segment are the same as those of the Company.  The Insurance segment and the Parent reimburse the Bank for administrative services provided to them.  Income tax expense for the individual segments is calculated based on the activity of the segments, and the Parent records the tax expense or benefit necessary to reconcile to the consolidated total.  The Parent does not allocate capital costs.  Average assets include securities available-for-sale based on amortized cost.
A summary of the Company’s operating segments was as follows:
(In thousands) 
 
Banking
 
Insurance
 
Parent
 
Eliminations
 
Total Consolidated
Three Months Ended September 30, 2015
 
 

 
 

 
 

 
 

 
 

Net interest income
 
$
57,867

 
$

 
$
7,168

 
$
(8,064
)
 
$
56,971

Provision for loan losses
 
4,240

 

 

 

 
4,240

Non-interest income
 
10,154

 
2,544

 
(193
)
 
193

 
12,698

Non-interest expense
 
46,465

 
2,042

 
871

 

 
49,378

Income before income taxes
 
17,316

 
502

 
6,104

 
(7,871
)
 
16,051

Income tax expense (benefit)
 
1,816

 
195

 
(661
)
 

 
1,350

Net income
 
$
15,500

 
$
307

 
$
6,765

 
$
(7,871
)
 
$
14,701

 
 
 
 
 
 
 
 
 
 
 
Average assets (in millions)
 
$
7,565

 
$
30

 
$
913

 
$
(914
)
 
$
7,541

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2014
 
 

 
 

 
 

 
 

 
 

Net interest income (expense)
 
$
45,786

 
$

 
$
5,163

 
$
(6,000
)
 
$
44,949

Provision for loan losses
 
3,685

 

 

 

 
3,685

Non-interest income
 
12,009

 
2,632

 
6,693

 
(6,693
)
 
14,641

Non-interest expense
 
37,388

 
1,983

 
316

 

 
39,687

Income before income taxes
 
16,722

 
649

 
11,540

 
(12,693
)
 
16,218

Income tax expense (benefit)
 
4,426

 
252

 
(448
)
 

 
4,230

Net income
 
$
12,296

 
$
397

 
$
11,988

 
$
(12,693
)
 
$
11,988

 
 
 
 
 
 
 
 
 
 
 
Average assets (in millions)
 
$
6,249

 
$
27

 
$
766

 
$
(777
)
 
$
6,265

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 

 
 

 
 

 
 

 
 

Net interest income
 
$
157,688

 
$

 
$
11,477

 
$
(14,064
)
 
$
155,101

Provision for loan losses
 
12,295

 

 

 

 
12,295

Non-interest income
 
33,663

 
7,997

 
5,037

 
(4,657
)
 
42,040

Non-interest expense
 
136,490

 
5,884

 
6,178

 
(1
)
 
148,551

Income before income taxes
 
42,566

 
2,113

 
10,336

 
(18,720
)
 
36,295

Income tax expense (benefit)
 
5,201

 
820

 
(3,230
)
 

 
2,791

Net income
 
$
37,365

 
$
1,293

 
$
13,566

 
$
(18,720
)
 
$
33,504

 
 
 
 
 
 
 
 
 
 
 
Average assets (in millions)
 
$
7,082

 
$
29

 
$
852

 
$
(852
)
 
$
7,111

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
 
 

 
 

 
 

 
 

 
 

Net interest income
 
$
134,740

 
$

 
$
3,304

 
$
(6,000
)
 
$
132,044

Provision for loan losses
 
11,070

 

 

 

 
11,070

Non-interest income
 
25,429

 
8,141

 
18,713

 
(18,713
)
 
33,570

Non-interest expense
 
116,932

 
6,192

 
1,185

 

 
124,309

Income before income taxes
 
32,167

 
1,949

 
20,832

 
(24,713
)
 
30,235

Income tax expense (benefit)
 
8,642

 
761

 
(1,515
)
 

 
7,888

Net income
 
$
23,525

 
$
1,188

 
$
22,347

 
$
(24,713
)
 
$
22,347

 
 
 
 
 
 
 
 
 
 
 
Average assets (in millions)
 
$
6,065

 
$
27

 
$
744

 
$
(747
)
 
$
6,089