Banker & Tradesman photo / file

Berkshire Bank had positive earnings for the second straight quarter, but net income was still down as the bank continues to deal with the effects of the pandemic.

The bank’s fourth quarter net income was $15 million, or $0.30 per share, compared to $21 million, or $0.42 per share, in the third quarter and $25.8 million, or $0.51 per share, in the fourth quarter of 2019.

“Fourth quarter results declined primarily due to higher noncash provisioning for expected credit losses reflecting the persistence of pandemic impacts on economic activity,” Berkshire Bank’s president and acting CEO, Sean Gray, said in the bank’s fourth quarter earnings statement.

The bank increased its noncash provision for expected credit losses on loans by $9 million in the fourth quarter.

For the full-year 2020, the bank had a net loss of $533 million compared to earnings of $96 million in 2019. The bank also had a $1 million decrease in net interest income compared to the third quarter because of lower earning assets and higher nonaccrual loans, the bank said its statement. The net interest margin was stable at 2.61 percent and and benefited from a 0.14 percent decrease in the cost of deposits and higher interest revenue related to PPP loan forgiveness, the bank said.

Berkshire Bank started the year with a net loss in the first quarter, followed by a $554 million goodwill impairment – the entire accumulated goodwill from the bank’s many mergers in recent years – in the second quarter. The move created a $549 million loss for the bank in the second quarter.

Berkshire’s CEO stepped down in early August, and the bank on Monday named former Webster Bank executive Nitin Mhatre as his replacement, effective Jan. 29.

The bank said in SEC filing yesterday that Mhatre will receive an annual base salary of $725,000, which could be increased by the board of directors. Mhatre’s employment agreement also makes him eligible to participate in the company’s bonus programs and other benefit plans and arrangements for executive employees.

Mhatre joins Berkshire as the bank plans to reduce its branch footprint by 18 percent, with both branch closings and the sale of the Mid-Atlantic branches.

“When these initiatives are completed, we plan to have 106 branch offices located primarily in southern New England and eastern/central New York,” Gray said in the statement. “These actions are targeted to focus and deepen meaningful engagement with our communities as a 21st century purpose-driven community bank that helps everyone access the services they need to live healthier financial lives.”