Berkshire Hills Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Loans Charged-Off for the Fourth Quarter Ended December 31, 2016; Provides Earnings Guidance for the Fist Quarter and Full Year 2017
January 30, 2017 at 04:10 pm
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Berkshire Hills Bancorp, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, total interest and dividend income was $72.4 million against $68.4 million last year. Net interest income was $59.2 million against $58.7 million last year. Total net revenue was $75.9 million against $71 million last year. Income before income taxes was $10.7 million against $18.3 million last year. Net income was $10.3 million or $0.32 per basic and diluted share against $16.0 million or $0.52 per diluted share last year. Total core income was $18.0 million against $16.5 million last year. Total core revenue was $76.0 million against $71.4 million last year. Core earnings per diluted share were $0.56 against $0.54 last year. GAAP return on assets was 0.50% against 0.82% last year. Core return on assets was 0.87% against 0.85% last year. GAAP return on equity was 4.29% against 7.34% last year. Core return on equity was 7.49% against 7.58% last year. Core return on tangible equity was 12.23% against 12.68% last year. GAAP earnings per share were net of non-core charges (after-tax) totaling $0.24 per share, which were primarily related to merger- related costs. GAAP earnings decreased in the most recent quarter compared to the linked quarter and the fourth quarter of the prior year due primarily to the merger-related charges recorded for the First Choice acquisition.
For the year, total interest and dividend income was $280.4 million against $247.0 million last year. Net interest income was $232.3 million against $213.8 million last year. Total net revenue was $298.1 million against $268.1 million last year. Income before income taxes was $77.5 million against $54.6 million last year. Net income was $58.7 million or $1.88 per diluted share against $49.5 million or $1.73 per diluted share last year. Earnings grew due to positive operating leverage from business expansion and improved efficiency. Total core income was $68.4 million against $59.6 million last year. Total core revenue was $297.6 million against $266.0 million last year. Core earnings per diluted share were $2.20 against $2.09 last year. Tangible book value per share was $18.81 against $17.84 at December 31, 2015. GAAP return on assets was 0.74% against 0.68% last year. Core return on assets was 0.86% against 0.82% last year. GAAP return on equity was 6.44% against 6.15% last year. Core return on equity was 7.51% against 7.40% last year. Core return on tangible equity was 12.47% against 12.49% last year. Book value per share increased to $30.65 against $28.64 at December 31, 2015.
For the quarter, net loans charged-off were $3.2 million against $3.3 million last year.
For the year 2017, the company expects to deliver 5% to 7% of EPS growth in 2017. Tax rate to be around 18%.
For the first quarter 2017, the company expects the first quarter EPS to be a $0.01 or $0.02 lower from the fourth quarter.
Berkshire Hills Bancorp, Inc. is a holding company for Berkshire Bank (the Bank). The Bank provides commercial banking, retail banking, consumer lending, private banking and wealth management services. The Bank provides various loans, including commercial real estate, commercial and industrial loans, residential mortgages and consumer loans. The Bank originates commercial real estate loans on properties used for business purposes, such as retail, multifamily, office, healthcare, hospitality, industrial and manufacturing facilities. The Bank is engaged in prime home equity lending, following its conforming mortgage underwriting guidelines with streamlined verifications and documentation. The Bank offers fixed-rate and adjustable-rate residential mortgage loans. The Company's Wealth Management Group provides consultative investment management, trust administration, and financial planning to individuals, businesses, and institutions, with an emphasis on personal investment management.
Berkshire Hills Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Loans Charged-Off for the Fourth Quarter Ended December 31, 2016; Provides Earnings Guidance for the Fist Quarter and Full Year 2017