Berkshire Hills Bancorp Reports 63% Increase in Q1 Earnings
BOSTON — Berkshire Hills Bancorp Inc. reported first-quarter 2018 net income of $25 million, a 63% increase over the 2017 first-quarter results of $15 million. This reflected the ongoing benefit of the company’s growth and expansion, together with the benefit of a lower federal tax rate resulting from federal tax reform.
“We had a solid start to the year, delivering ongoing growth while integrating our new commerce operations,” CEO Michael Daly said. “With the benefit of greater efficiency, GAAP return on assets improved to 0.88%, and core return on assets improved to 1.04%. We expect continued momentum in the second quarter, where GAAP return on assets will improve to over 1.00% and core return on assets will improve to over 1.10%. We formally opened our new Boston corporate headquarters, which also serves as a regional hub for Greater Boston relationship teams. We added additional bankers both in Boston and in the Princeton, N.J. area. We also opened a new branch in Simsbury, Conn., which uses a combination of virtual teller technology and MyBanker relationship professionals to provide enhanced customer support and product availability.”
The board of directors declared a quarterly cash dividend of $0.22 per common share to shareholders of record at the close of business on May 10, payable on May 24. The dividend equates to a 2.3% annualized yield based on the $37.88 average closing price of Berkshire Hills Bancorp common stock during the first quarter. The board also declared a quarterly cash dividend of $0.44 per share for the preferred stock issued in conjunction with the Commerce acquisition, with the same record and payment dates as above. The quarterly common and preferred dividends were increased in the prior quarter by 5%.
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