NYSE$BBT

Beacon Financial Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Berkshire Hills Bancorp's first quarter earnings per share increased year-over-year and adjusted EPS also increased.

Berkshire Hills Bancorp reported an increase in first quarter earnings per share by 62% year-over-year to $0.42, and adjusted EPS increased by 37% to $0.43. The company's earnings benefited from loan growth and a release of the allowance for credit losses.

  • EPS increased year-over-year by 62% to $0.42.
  • Adjusted EPS increased by 37% to $0.43.
  • Loan balances experienced strong growth due to increased new loan originations.
  • A new program to repurchase approximately $140 million in common shares was approved.

Headline financials

Total Revenue

$89.7M

Previous: $101M-11.4%
EPS (adj)

$0.43

Previous: $0.32+34.4%
Efficiency ratio

0.2%

No prior period
Capital Expenditures

$0.00

Previous: -$2.3M+100.0%
Free Cash Flow

$20.2M

Previous: $10.7M+88.1%
Net Income

$20.2M

Previous: $13M+55.0%
Operating Income

$65.2M

Previous: $62.4M+4.4%
Gross Profit

$85.8M

Previous: $94.8M-9.5%
Cash & Equivalents

$1.61B

Previous: $1.9B-15.4%
Total Assets

$12.1B

Previous: $12.8B-5.2%
Stock-Based Comp

$1.81M

Previous: $675K+167.4%

Revenue & EPS history

Berkshire Hills Bancorp · Revenue · Quarterly

$89.7M

Q1 2022-11.4%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Berkshire Hills Bancorp · $2.6M total across 1 segment · Q4 2021

  • Wealth management fees
    $2.6M

Forward guidance

Berkshire Hills Bancorp anticipates the company’s strong capital and liquidity will position it for future targeted loan growth and capital distributions which are integral elements of its BEST strategic plan.

Tailwinds

  • The Company’s net interest income is modeled to be positively sensitive to the market forecast scenario of rising interest rates.
  • Total loans increased quarter-over-quarter by $441 million, or 6% to $7.27 billion at March 31, 2022.
  • The Company has expanded its commercial and business banking teams and is developing new sourcing channels for residential mortgages and consumer loans in its markets to support planned loan growth in 2022.
  • Asset quality metrics remained favorable and improving in the most recent quarter.
  • Berkshire remains well positioned to benefit from the expected rising rate environment.

Headwinds

  • Net interest income decreased by 8% year-over-year due primarily to lower loan balances during the year 2021.
  • Non-interest income excluding securities losses decreased 18% year-over-year primarily due to the sale of insurance and branch operations in the third quarter of 2021, and PPP loan referral fees recorded in the first quarter of 2021.
  • Shareholders’ equity decreased by 7% quarter-over-quarter and year-over-year.
  • This reflected the impact of share repurchases and a $75 million reduction in the most recent quarter reflecting the lower fair value of the bond portfolio as a result of higher interest rates.
  • The ratio of equity/assets decreased quarter-over- quarter to 9.0% from 10.2%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.0%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+11.1%

Q3 2020

Best reaction

-19.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-4.3%+2.5%
Q4 2025+2.6%+4.3%+5.5%
Q3 2025-0.4%-1.3%+2.9%
Q2 2025-1.5%-1.0%+0.6%
Q1 2025+3.2%+3.4%+2.2%
Q4 2024+2.0%+4.7%-0.3%
Q3 2024-1.9%-0.1%+13.6%
Q2 2024+1.4%+2.7%-1.5%
Q1 2024+5.7%+8.4%+14.3%
Q4 2023+0.7%+2.6%-9.7%
Q3 2023-5.2%-6.4%+7.4%
Q2 2023-8.8%-7.5%-8.2%
Q1 2023-6.0%-11.9%-12.2%
Q4 2022+7.6%+10.5%+4.5%
Q3 2022-1.2%+1.3%+5.7%
Q2 2022+6.6%+4.6%+15.2%
Q1 2022-6.0%-8.9%-12.4%
Q4 2021-0.5%+0.1%+4.7%
Q3 2021+3.4%+1.1%+3.0%
Q2 2021+0.3%+2.0%-4.6%
Q1 2021+3.9%+2.3%+23.7%
Q4 2020-6.5%-13.9%+9.7%
Q3 2020+11.1%+8.9%+47.3%
Q2 2020-7.8%-9.5%-11.6%
Q1 2020-19.5%-26.8%-26.5%
Q4 2019-3.4%-8.1%-14.3%
Q3 2019+2.6%+4.4%+5.2%
Q2 2019+5.2%+6.3%-2.7%
Q1 2019+0.3%+1.8%+0.5%
Q4 2018-5.1%-2.8%+9.9%
Q3 2018-6.6%-11.9%-11.4%
Q2 2018+0.7%+3.1%+2.5%
Q1 2018-0.1%-0.5%+2.6%
Q4 2017-1.2%-1.8%-1.7%
Q3 2017+1.7%+0.4%-5.6%
Q2 2017+1.5%+0.3%-7.1%
Q1 2017+6.2%+7.3%+5.4%
Q4 2016-1.9%-0.6%+0.7%
Q3 2016+3.9%+3.9%+19.7%
Q2 2016-5.3%-6.6%-2.3%
Q1 2016-1.9%
Q4 2015+0.8%
Q3 2015+2.7%
Q2 2015+0.7%
Q1 2015+0.9%
Q4 2014-0.5%
Q3 2014+4.9%
Q2 2014+5.2%
Q1 2014-2.7%
Q4 2013-2.4%
Q3 2013+1.9%
Q2 2013-2.1%
Q1 2013+0.8%
Q4 2012-0.4%
Q3 2012+0.9%
Q4 2011+0.2%
Q2 2012+0.2%
Q1 2011-1.6%
Q1 2012+1.9%
Q4 2010+2.3%
Q3 2011-2.8%
Q2 2010+1.3%
Q2 2011+1.3%
Q3 2010+1.5%
Q1 2010+6.9%

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