Berkshire Hills Reports Q4 Operating Results
PITTSFIELD — Berkshire Hills Bancorp Inc. reported that fourth-quarter pre-tax income grew by 82% to $19.5 million in 2017 compared to $10.7 million in the prior year. This improvement was due to business development and the benefit of mergers, including Worcester-based Commerce Bancshares Corp. which was acquired on Oct. 13, 2017.
Net income after tax was impacted by an $18 million non-core charge to income-tax expense resulting from federal tax reform enacted near year end. This reform is expected to benefit future earnings due to a lower statutory federal tax rate beginning in 2018. Net income after tax totaled $55 million in 2017 compared to $59 million in 2016.
The tax charge noted above reduced fourth-quarter earnings per share by $0.40 and resulted in a fourth-quarter net loss of $0.06 per share in 2017, compared to a profit of $0.32 per share in 2016. Fourth-quarter core earnings per share improved by 4% to $0.58 in 2017, from $0.56 in 2016. The measure of core earnings excludes the above tax charge and also excludes other net non-core charges primarily related to merger costs. These costs in the fourth quarter of 2017 were mostly related to the Commerce acquisition, which increased assets by $1.8 billion, or 19%, to $11.6 billion at year end.
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