Pittsfield’s Berkshire Hills Bancorp has reported $39 million related to loan charges and reserve building in the fourth quarter following the completion of a previously announced loan initiative.
Through the first nine months of 2009, Berkshire reported total net income of $8 million. Including the loan charges, the company reported a net loss of $24 million for the fourth quarter. In 2009, the company lost $16 million.
Berkshire’s annual loan charge-off and nonperforming asset ratios continue to be significantly better than the most recent third quarter FDIC averages for the nation and the northeast region, according to the company.
"Our team has responded aggressively to the changed opportunities and challenges in our markets as a result of the economic and financial events of the last year. We have anticipated and resolved potential risks in our portfolio and announced significant new business ventures – all while generating the usual organic growth and operating results that we had planned for the quarter, before the impact of these initiatives," said Berkshire’s President and CEO Michael P. Daly. "Berkshire continues to attract exceptional talent and we enter this new decade well positioned to build on our position as the largest regional provider in our markets. While we have recorded a loss for the quarter and the year, we have taken the appropriate steps and are utilizing our strengths to move the company forward."
The company has appointed Richard M. Marotta as executive vice president/chief risk officer and Robert M. Curley as a director and New York chairman.
The board of directors has also declared a $0.16 dividend to stockholders of record at the close of business on Feb. 18. The dividend will be paid March 4.
"Our dividend is important to our shareholders and long run dividends are an important component of our shareholder value," Daly said. "Reflecting our urgent priority on shareholder returns, in light of the challenges in the operating environment, noncontractual management incentive compensation was not paid in 2009. Based on our capital resources and earnings expectations, we look forward to maintaining our continuous dividend payment record."
