Berkshire Hills Bancorp Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Earnings Guidance for the First Quarter and Year 2012; Announces Net Loans Charged-Off for the Fourth Quarter Ended December 31, 2011; Declares Dividend, payable on March 1, 2012
January 31, 2012 at 04:10 pm
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Berkshire Hills Bancorp Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the fourth quarter, the company reported total interest and dividend income of $39.0 million compared to $28.4 million a year ago. Net interest income increased by 55% to $31.1 million compared to $20.1 million a year ago. Total net revenue increased by 45% to $40 million compared to $27.5 million a year ago, due to the benefit of the bank acquisitions and organic growth. Income from continuing operations before income taxes was $8.2 million compared to $4.1 million a year ago. Net income from continuing operations was $7.6 million or $0.36 per basic and diluted share compared to $3.6 million or $0.26 per basic and diluted share a year ago. Net income was $8.5 million or $0.40 per basic and diluted share compared to $3.6 million or $0.26 per basic and diluted share a year ago. Core return on assets was 0.93% compared to 0.56% a year ago. Return on total assets was 0.85% compared to 0.51% a year ago. Core return on equity was 6.74% compared to 4.08% a year ago. Return on total equity was 6.16% compared to 3.72% a year ago. Core earnings were $9.3 million increased by 135% in 2011, compared to $3.9 million in 2010. Core earnings per diluted share increased by 57% to $0.44 (including the impact of the newly issued shares) compared to $0.28 per diluted share a year ago. Tangible book value was $15.61 compared to $15.31 a year ago. Total core revenue was $40.0 million compared to $27.5 million a year ago.
For the full year, the company reported total interest and dividend income of $138.3 million compared to $112.3 million a year ago. Net interest income was $106.5 million compared to $76.9 million a year ago. Total net revenue was $142.3 million compared to $106.7 million a year ago. Income from continuing operations before income taxes was $18.7 million compared to $16.4 million a year ago. Net income from continuing operations was $16.7 million or $0.93 per basic and diluted share compared to $13.9 million or $1.00 per basic and diluted share a year ago. Net income was $17.6 million or $0.98 per basic and diluted share compared to $13.9 million or $1.00 per basic and diluted share a year ago. Total core income was $27.9 million compared to $14.2 million a year ago. Total tangible core income was $32.2 million compared to $17.2 million a year ago. Total core revenue was $140.2 million compared to $106.7 million a year ago. Core earnings per diluted share were $1.56 compared to $1.02 a year ago. Tangible book value per common share was $15.61 compared to $15.35 a year ago. Core return (annualized) on assets was 0.80% compared to 0.52% a year ago. Core return (annualized) on equity was 5.81% compared to 3.66% a year ago.
The company announced net loans charged-off of $2.0 million for the fourth quarter ended December 31, 2011 compared to $1.9 million for the fourth quarter ended December 31, 2010.
The company believes that the first quarter earnings will be around $9.4 million or about $0.45 a share. The company is targeting net interest income for the first quarter to be in the range of $32.5 million to $33 million.
The company to target a $2.00 core EPS run rate by the end of 2012. The company is forecasting a tax rate in the range of 26% to 27%. Earnings per share are expected to be $1.90 to $1.95. This includes about $0.03 accretion are projecting for the CBT merger. The company continues to maintain double digit growth momentum which is consistent with plan to reach a $2 annualized core run rate by the end of 2012.
The Board of Directors voted to declare a cash dividend of $0.17 per share to shareholders of record at the close of business on February 16, 2012, payable on March 1, 2012. The dividend was increased in the prior quarter by 6% from the previous $0.16 per share level. This dividend equates to a 3.4% annualized yield based on the $20.11 average closing price of Berkshire's common stock in the fourth quarter of 2011.
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 Full Year Ended December 31, 2011; Provides Earnings Guidance for the First Quarter and Year 2012; Announces Net Loans Charged-Off for the Fourth Quarter Ended December 31, 2011; Declares Dividend, payable on March 1, 2012