A Berkshire Bank storefront branch in Boston’s Brighton neighborhood. Photo by James Sanna | Banker & Tradesman Staff

The effects of geopolitical events and the rate environment will result in some changes to the goals Berkshire Bank set last year for turning around the bank’s performance.

Berkshire’s CEO Nitin Mhatre said in the bank’s first-quarter earnings call on Wednesday that the bank plans to update the goals outlined in its BEST (Berkshire’s Exciting Strategic Transformation) strategy later this year. Mhatre noted the changing geopolitical, macroeconomic and rate environment in recent months, adding that the environment is expected to continue to evolve in the coming months.

The BEST strategy has multiple goals, including for lending, hiring, ESG performance and fintech partnerships. The strategy was launched in May 2021 in response to a difficult year for the bank in 2020. Mhatre said the bank would hold a call with investors to discuss updated goals after it releases second-quarter earnings results.

Berkshire Bank had first-quarter net income of $20.2 million, or $0.42 per diluted share, compared to a net income of $13 million, or $.26 per diluted share, in the first quarter of 2021.

Part of the BEST strategy involved hiring more frontline bankers, and Mhatre said the production from new bankers, as well as increased productivity from existing employees, has contributed to higher loan originations and stronger pipelines than expected.

Berkshire Bank reported a 58 percent increase in loan originations compared to the fourth quarter and a 245 percent increase compared to the first quarter of 2021. Growth occurred in consumer, residential and commercial products, according to the bank’s first-quarter earnings presentation, and throughout all geographies in its footprint, which covers New England and New York.

“It is quite encouraging to see our loan book growing as we reactivate our organic growth muscle,” Mhatre said.

Berkshire’s total loans increased by $441 million, or 6 percent, from the fourth quarter to $7.27 billion at the end of the first quarter. The bank said loans were down 5 percent year-over-year due to the impact of refinancings and targeted runoff.

In response to an analyst’s question, Mhatre declined to provide the size of the loan pipeline, but noted that the pipeline had increased even since the beginning of 2022.

Berkshire had about $10.7 billion in total deposits at the end of the first quarter, compared to $10.24 billion in the first quarter of 2021. Berkshire’s chief financial officer, Subhadeep Basu, said in response to an analyst’s question that the bank still expects single-digit deposit growth in 2022.

Berkshire’s total assets in the first quarter were $12.1 billion, up 5 percent from the end of 2021. The bank attributed the increase to loan growth.

Berkshire Bank has also expanded its relationship with New York-based financial technology company Narmi. Mhatre said the bank first partnered with Narmi about two years ago on its digital account opening platform, and the expanded relationship includes app management and online banking for consumers and small businesses.

“This partnership will ultimately further improve our net promoter score and relationship deepening,” Mhatre said.