Berkshire Hills Reports Strong Earnings Growth
Second Quarter 2025 GAAP EPS $0.66; Operating EPS $0.69
15% increase in operating EPS linked quarter; 25% increase year-over-year
3% increase in operating revenue linked quarter, 2% decrease in operating non-interest expense
3.27% net interest margin, 3 bps increase linked quarter and 7 bps year-over-year
56.7% efficiency ratio; improved from 59.5% linked quarter
0.48% delinquent and non-performing loans to total loans
BOSTON, July 24, 2025 /PRNewswire/ -- Berkshire Hills Bancorp, Inc. (NYSE:BHLB) today reported results for the second quarter of 2025. These results along with comparison periods are summarized below:
($ in millions, except per share data)
Three Months Ended
June 30, 2025
Mar. 31,2025
June 30, 2024
Net income
$
30.4
$
25.7
$
24.0
Per share
0.66
0.56
0.57
Operating earnings1
31.6
27.6
23.2
Per share
0.69
0.60
0.55
Net interest income, non FTE
$
91.9
$
89.8
$
88.5
Net interest income, FTE
93.8
91.7
90.5
Net interest margin, FTE
3.27 %
3.24 %
3.20 %
Non-interest income
$
21.8
$
20.7
$
20.1
Operating non-interest income1
21.8
20.7
20.1
Non-interest expense
68.1
70.4
70.9
Operating non-interest expense1
66.7
67.9
71.3
Efficiency ratio1
56.7 %
59.5 %
63.4 %
Average balances
Loans
$
9,484
$
9,389
$
9,157
Deposits
9,817
9,847
9,296
Period-end balances
Loans
9,499
9,429
9,229
Deposits
9,979
9,880
9,621
1. See non-GAAP financial measures and reconciliation to GAAP measures beginning on page 12.
Berkshire CEO Nitin Mhatre stated, "Second quarter operating earnings grew 36% year-over-year due to revenue growth and lower expenses. Loans, deposits and the net interest margin increased over the linked quarter, boosting net interest income, and were accompanied by solid non-interest income growth. Quarterly operating revenue has increased sequentially over the last six quarters, growing 8% over this period, including 3% growth linked quarter. Quarterly operating income, operating EPS, and efficiency were the strongest since 2019. Second quarter 2025 operating return on tangible common equity advanced to 10.8%. TIME and Newsweek have once again honored Berkshire with national awards, the former for being one of the top-performing U.S. companies of our size and the latter for being one of the best workplaces in the financial services sector. Following months of preparation among our teams, we look forward to completing our transformative merger of equals with Brookline Bancorp and creating a powerful financial institution serving the Northeast."
"As I reflect on our progress since we began our transformation program in early 2021, I want to express my deepest gratitude to every member of the Berkshire team, our clients and our board of directors. Our bankers' dedication, resilience, and commitment to our clients have been the driving force behind our improved operating and financial performance. Together, we've navigated challenges, embraced change, and delivered results for our clients, shareholders and communities. I'm incredibly proud of what we've accomplished and excited to see what the combined company will achieve next," added Mhatre.
Berkshire CFO Brett Brbovic stated, "Second quarter net interest income increased 2% linked quarter and the net interest margin increased 3 basis points to 3.27%, benefiting from loan growth and lower deposit cost. Operating non-interest income increased $1.1 million linked quarter. Operating non-interest expense decreased $1.3 million linked quarter and $4.7 million year-over-year. The provision for credit losses decreased $1.5 million linked quarter and the allowance for credit losses on loans was unchanged at 1.24%. Quarterly results were very solid across the board."
As of and For the Three Months Ended
June 30, 2025
Mar. 31, 2025
June 30, 2024
Asset Quality
Net loan charge-offs to average loans
0.14 %
0.15 %
0.07 %
Non-performing loans to total loans
0.27 %
0.25 %
0.23 %
Returns10
Return on average assets
1.03 %
0.88 %
0.82 %
Operating return on average assets
1.07 %
0.94 %
0.79 %
Return on tangible common equity
10.35 %
9.02 %
9.99 %
Operating return on tangible common equity
10.76 %
9.66 %
9.65 %
Capital1
Tangible common equity/tangible assets
10.1 %
9.9 %
8.2 %
Book value per share
$26.40
$25.81
$23.58
Tangible book value per share
$26.12
$25.50
$23.18
1. See non-GAAP measures and reconciliation to GAAP beginning on page 12. All performance ratios are annualized and are based on average balance sheet amounts, where applicable.
Berkshire Hills Bancorp, Inc. ((
