NYSE$BBT

Beacon Financial Corp · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Berkshire Hills Bancorp reported strong fourth quarter operating results with $0.46 GAAP EPS and $0.60 Operating EPS.

Berkshire Hills Bancorp reported a 28% year-over-year increase in fourth quarter operating EPS and a 4% increase for full year operating EPS, driven by growth initiatives, strategic optimization, strong credit discipline, and expense management. The company achieved a 9.9% operating return on tangible common equity in the fourth quarter. A definitive agreement with Brookline Bancorp, Inc. for a merger of equals was announced in December.

  • Fourth quarter GAAP income was $20 million, or $0.46 per share.
  • Operating earnings totaled $26 million, or $0.60 per share.
  • Total loans increased $173 million, or 2% to $9.4 billion compared to the linked quarter.
  • Total deposits increased $798 million to $10.4 billion compared to the linked quarter.

Headline financials

Total Revenue

$86.9M

Previous: $90.4M-4.0%
EPS (adj)

$0.60

Previous: $0.47+27.7%
Efficiency ratio

69.6%

No prior period
Stockholders' equity to total assets

10.3%

No prior period
Nonperforming assets as a percentage of total assets

0.6%

No prior period
Allowance for loan and lease losses

$125M

No prior period
Net interest margin (1)

3.1%

No prior period
Return on average assets (annualized)

0.6%

No prior period
Operating return on average assets

0.7%

No prior period
Return on average tangible stockholders' equity (annualized)

7.2%

No prior period
Operating return on average tangible stockholders' equity

8.3%

No prior period
Net loan and lease charge-offs as a percentage of average loans (annualized)

0.3%

No prior period
Nonperforming loans and leases as a percentage of total loans and leases

0.7%

No prior period
Effective tax rate

23.9%

No prior period
Interest-rate spread

2.4%

No prior period
Tangible stockholders' equity to tangible assets (non-GAAP)

8.3%

No prior period
Net Income

$20M

Previous: $1.40+1428571328.6%
Operating Income

$26M

Previous: $20.20+128712771.3%

Revenue & EPS history

Berkshire Hills Bancorp · Revenue · Quarterly

$86.9M

Q4 2024-4%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
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 has a pending agreement to merge with Brookline Bancorp, Inc. to create a preeminent Northeast banking franchise positioned to deliver an exceptional client experience and create greater value for shareholders.

Tailwinds

  • Merger to create a preeminent Northeast banking franchise.
  • Exceptional client experience expected post-merger.
  • Greater value for shareholders anticipated.
  • Successful capital raise of $100 million to support the merger.
  • Strong investor confidence in plans and accomplishments.

Headwinds

  • Merger involves non-operating expenses of $6.6 million related primarily to the pending merger.
  • Full year 2024 GAAP income was $61 million, or $1.43 per share, compared to $70 million, or $1.60 per share, in 2023.
  • Quarterly net interest income decreased linked quarter by $1.2 million to $87 million.
  • Impact of a lower net interest margin.
  • Many factors could cause actual results to differ significantly from expectations.

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 Q4 2024

Historical avgQ4 2024

+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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