Berkshire Hills Bancorp, the parent company of Berkshire Bank, this week posted a 20 percent increase in its earnings per share for the first quarter of 2013.
Core earnings per share totaled 54 cents in 2013, a 20 percent increase over the 45 cents posted in the first quarter of 2012. First quarter core earnings reached a record $13.5 million, which was a 43 percent increase over $9.4 million the company posted for the same time last year.
Net income for the first quarter totaled $10.5 million, up from $5.8 million for the same time last year. And total assets increased 30 percent, to $5.2 billion from $4 billion during the first quarter last year.
"We achieved our bottom line objective in the first quarter, with a 20 percent increase in core earnings per share compared to the same period in 2012. This follows the 29 percent full year increase we achieved in 2012 for core EPS," Berkshire Chairman and CEO Michael Daly said in a statement. "During the first quarter, we also completed the integration of our Beacon Syracuse operations. We are improving our efficiency, and achieved a 7 percent annualized increase in core earnings compared to the most recent quarter."
Total commercial loans benefited from 12 percent annualized growth in commercial business loans during the first quarter. Berkshire is building business loan volume in its markets while it targets relationships with middle market customers who require a full range of products and services provided by a responsive local banking partner. Total originations of commercial loan commitments were up 23 percent from the prior quarter and 48 percent from the prior year first quarter.
The first quarter provision for loan losses increased to $2.4 million in 2013 from $2.0 million in 2012. Net loan charge-offs totaled $2.3 million and $1.8 million in these periods, respectively. There were no significant changes in the Company’s favorable charge-off metrics. Following the loan loss provision, the loan loss allowance increased to $33.3 million from $33.2 million during the quarter.
In the most recent quarter, Berkshire expanded its commercial lending program, including an experienced new team in Eastern Massachusetts, a new commercial leader in its recently acquired Syracuse market, and team additions in the Hartford-Springfield region. These teams are expected to contribute to increased commercial originations in these regional markets where Berkshire increased its presence in 2012.
Results in 2013 also included the operations of The Connecticut Bank and Trust Company and Beacon Federal Bancorp, along with mortgage operations in Eastern Massachusetts – all of which were acquired after the first quarter of 2012.
