Berkshire Hills Bancorp reaped the rewards of its growth strategy, recording $41 million in net income last year, an increase of 24 percent from the previous year.
For the fourth quarter of 2013, Berkshire Bank’s parent company recorded net income of $10.5 million, a 13 percent increase over $9.3 million in the comparable period in 2012.
"Loan growth was strong in all major categories in recent quarters and our goal is to produce further market share gains in 2014. Fee revenues increased in the final months of the year and we further reduced operating expenses through our restructuring strategies," CEO Michael Daly said in a statement. "We remain closely focused on the revenue and efficiency opportunities that we see for positive operating leverage based on the benefit of our expanded footprint and upgraded systems."
Berkshire Bancorp recently completed its acquisition of 20 Bank of America branches in central New York, which netted the bank 65,000 new customers, $450 million in deposits and $4 million in loans.
Total assets increased 4 percent, or $223 million, to $5.7 billion in the fourth quarter, largely due to growth in loans and investment securities funded by borrowings. Assets increased 7 percent over the year.
The bank saw a $157 million, or 16 percent annualized, increase in total loans. For the full year, loans increased 5 percent in total and across most major categories, but loan growth accelerated during the second half of the year. New commercial banking teams recruited in Hartford, Syracuse and eastern Massachusetts contributed to a 15 percent increase in commercial business loans.
Net loan charge-offs total 0.31 percent of average loans during the fourth quarter and 0.29 percent for the entire year. The ratio of non-performing assets to total assets was 0.53 percent at year’s end, compared with 0.52 percent at the beginning of the year. Accruing delinquent loans declined to 0.73 percent of total loans from 1.11 percent. Loan loss allowance totaled 0.8 percent of total loans at year’s end, down from 0.83 percent at the beginning of the year.
Net revenue declined $4.1 million, or 7 percent, on a year-over-year basis, primarily due to a $5.4 million drop in mortgage banking fees from record volumes recorded before rates increased mid-year 2013.
The company also announced that Richard J. Murphy will replace Geno Auriemma on its board of directors. In a statement, the company noted Murphy’s background in brand and marketing and ties to the Albany, N.Y., community. Auriemma will continue to serve as the bank’s spokesman.
Finally, the board of directors declared a cash dividend of 18 cents per share to be paid Feb. 27 to shareholders of record as of Feb. 13.
