Banker & Tradesman photo / file

Berkshire Bank’s parent company has increased its quarterly dividend for the first time since cutting it in half more than two years ago.

Berkshire Hills Bancorp said in a statement today that its board of directors had approved an $0.18 per share cash dividend, a 50 percent increase over the $0.12 dividend the Boston-based bank has been paying for two years.

“We’re pleased to announce this 50 percent dividend increase which improves our quarterly cash return to shareholders and increases the yield on our stock to approximately 2.6 percent based on the closing share price of $27.44 on November 3, 2022,” Berkshire’s CEO Nitin Mhatre said in the statement. ”We’re grateful for the support of our shareholders as we execute on our vision of becoming a high performing, leading socially responsible community bank.”

Berkshire’s board had approved a $0.24 cash dividend in January 2020 before the early months of the pandemic prompted banks to increase loan loss provisions. Berkshire also made a goodwill impairment charge in the second quarter of 2020, which led to a quarterly loss of more than $500 million.

The quarterly dividend was then cut in half to $0.12 in September 2020.

Mhatre rolled out a strategic plan last year aimed at turning around the bank’s performance. He had joined the bank in January 2021 following the abrupt resignation of the bank’s previous leader, Richard Marotta. The strategic plan included hiring more loan officers to grow its loan portfolio.

“Increasing the shareholder dividend to improve total shareholder return is an integral component of our BEST strategic transformation plan announced in May 2021,” Mhatre said. “Berkshire’s per share earnings have increased by 62 percent since the first quarter of 2021 and the Company is tracking well ahead of its BEST plan strategic objectives. Our plan targets supporting our organic growth to serve our customers and communities, while also prudently managing capital and shareholder returns.”