- 22% increase in operating EPS year-over-year for Berkshire Hills Bancorp (BHLB, Financial)
- Net interest margin improved by 10 basis points to 3.24%
- Record low delinquent and non-performing loans at 0.42%
Berkshire Hills Bancorp Inc. (BHLB) reported robust financial results for the first quarter of 2025. The company achieved a GAAP EPS of $0.56 and an operating EPS of $0.60, marking a significant 22% increase from the previous year. Net income reached $25.7 million, a notable improvement compared to a loss of $20.2 million in Q1 2024.
The bank's net interest margin rose to 3.24%, up 10 basis points from the last quarter. This improvement was driven by a 12 basis point reduction in deposit costs to 2.18%. Additionally, Berkshire Hills' efficiency ratio improved to 59.5%, its best performance in two years, reflecting disciplined expense management and a 6% year-over-year decrease in operating non-interest expenses.
Loan growth remained strong with a 4% increase year-over-year, raising the period-end loan balance to $9.4 billion. Credit quality metrics were exceptional, with delinquent and non-performing loans at a historic low of 0.42%, the lowest in nearly two decades. The tangible common equity ratio also strengthened to 9.9%, and the tangible book value per share increased by 3% to $25.50.
The impending merger with Brookline Bancorp is on track, with a closing anticipated in the latter half of 2025. This strategic merger is expected to enhance Berkshire Hills Bancorp's presence in New England, creating a combined entity with approximately $23.5 billion in assets.
