Banker & Tradesman photo / file

Berkshire Bank continued to see positive earnings in the first quarter after experiencing losses in the first half of 2020.

Berkshire’s first quarter net income was $13 million, or $0.26 per share, compared to $15 million, or $0.30 per share, in the fourth quarter and a net loss of $19.9 million in the first quarter of 2020.

The first quarter results benefited from higher revenues and lower credit loss provision expense, the bank said in a statement. The results also reflected $3 million in restructuring and other expenses. The restructuring expenses included those associated with closing nine branches in the first quarter.

Total assets remained steady at $12.8 billion in the first quarter, the bank said, and progress was made in improving the structure and composition of the balance sheet.

The quarter marked Nitin Mhatre’s first as Berkshire’s CEO.

“Berkshire’s operating results improved in the first quarter, driven primarily by higher loan-related fees and revenues,” Mhatre said in the statement. “The quarter also benefited from growth in demand deposits and the paydown of higher cost wholesale funding. This increase in our lending and deposit activities reflected the benefit of our engagement with our customers in processing government lending and fiscal relief to support further economic recovery in our markets from pandemic conditions.”

Mhatre noted that public health and the economic outlook improved in the bank’s footprint during the first quarter.

“Key measures of loan performance improved, resulting in reductions in net loan charge-offs, nonperforming loans, and loans with COVID-19 related modifications,” Mhatre said. “Our loan loss provision decreased quarter-over-quarter, contributing to our improved operating results.”

Berkshire’s provision for expected credit losses on loans decreased to $6.5 million from $10 million in the fourth quarter. The bank said the provision expense is sufficient to maintain the allowance for expected credit losses on loans.

Mhatre also said that Berkshire’s management team and board were developing a “transformational strategic plan,” which the bank plans to announce on May 18.

“This plan will make our purpose-driven community-dedicated bank better and stronger, faster,” Mhatre said, “with the goal of enhancing results for all stakeholders.”