Berkshire Hills' Q2 operating EPS up 25%, margin improves

Overview

• Berkshire Hills Q2 operating EPS rises 15% sequentially, 25% yr/yr

• Company's net interest margin improves, non-interest expenses decrease

• Berkshire preparing merger with Brookline Bancorp, boosting Northeast presence

Outlook

• Company expects merger with Brookline Bancorp to close in 2025

• Berkshire Hills sees transformative merger boosting financial institution in Northeast

Result Drivers

• NET INTEREST INCOME - Increased 2% linked quarter, driven by loan growth and lower deposit costs, per CFO Brett Brbovic

• NON-INTEREST EXPENSES - Decreased 2% linked quarter and 7% year-over-year, contributing to improved efficiency

• LOAN GROWTH - Total loans increased 1% linked quarter, primarily in commercial and industrial loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Berkshire Hills Bancorp Inc is $30.98, about 15.3% above its July 23 closing price of $26.23

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn3v2WZKa