Berkshire Hills Bancorp reports third quarter results amid challenging interest rate environment

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Berkshire Hills Bancorp (NYSE:BHLB) on Friday reported third-quarter 2023 financial results, with net income of $20 million, or $0.45 per share, and operating income of $22 million, or $0.50 per share. ). Despite a challenging interest rate environment and industry disruption, the company demonstrated resilience with year-to-date increases in net income and operating income.

The bank’s net interest income was $90.3 million and non-interest income was $17.5 million. However, operating income for the consolidated quarter decreased by $2.4 million and net interest margin decreased by 6 basis points to 3.18%. Average earning assets fell by 2%, but non-interest operating expenses were flat.

In response to these challenges, Berkshire Hills Bancorp maintained strong liquidity and capital levels, continued its expense optimization strategy, and ramped up talent recruitment. The bank also welcomed Mary Ann Callahan to its board of directors. Its subsidiary, Berkshire Bank, operates 96 financial centers and holds approximately $12.1 billion worth of assets.

In other banking news on Friday, Republic Bancorp, parent company of Republic Bank & Trust Company, reported an 8% increase in net income to $21.6 million in the third quarter of 2023, and diluted EPS. reported a 9% increase to $1.10 per share. Q3 2022.

CEO Logan Pichel said this strong performance was due to the diversification of the company’s business model amid rising interest rates and an inverted yield curve, the strong credit quality of its core banks, and disciplined expense management. Ta. From Q3 2022 to Q3 2023, Core Banking net income decreased $1.8 million, or 12%, while Companywide net income decreased due to strong performance from Republic Processing Group (RPG). Increased. An increase of $3.4 million or 69% compared to Q3 2022.

Pichel said the delinquency rate at core banks was low at 0.14% and companywide non-interest expenses increased by just $1.9 million (4%) compared to Q3 2022, demonstrating disciplined spending during a period of high inflation. He emphasized the bank’s high creditworthiness, including its excellent management.

Core Bank’s loan portfolio saw loan yields increase by 100 basis points from Q3 2022 to Q3 2023. Republic strengthened its position through the acquisition of CBank. This increases density in the Northern Kentucky/Cincinnati market, expands loan portfolio diversification, and new partnership with Nest Egg in consumer financial planning. We also successfully introduced online business deposit account opening and reintroduced nationwide online deposit collection for consumers. Mr. Pichel concluded with a positive outlook for Republic Bancorp.

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