Berkshire Hills Bancorp Reports Increased Net Income and Operating Earnings in Q2 2025

Berkshire Hills Bancorp, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with net income rising to $30.4 million, or $0.66 per diluted share, compared to $24.0 million, or $0.57 per diluted share, in the same period last year. For the first half of 2025, net income surged to $56.1 million, significantly up from $3.8 million in the first half of 2024, largely due to a non-operating loss on the sale of investment securities recorded in the prior year. The company’s operating earnings per share also improved, reaching $0.69 for the second quarter, a 25% increase from $0.55 in the previous year.

Total assets decreased by 2% to $12.0 billion as of June 30, 2025, down from $12.3 billion at the end of 2024. This decline was primarily attributed to a seasonal reduction in cash and cash equivalents, reflecting the runoff of higher year-end deposits. Total loans increased by 1% to $9.5 billion, driven by a $91 million rise in commercial loans, while total deposits fell by $396 million to $10.0 billion, influenced by seasonal payroll-related withdrawals. The company’s loan-to-deposit ratio stood at 95% at the end of the period.

Berkshire's non-interest income for the second quarter increased by $2 million year-over-year, with significant contributions from higher loan-related fees. The provision for credit losses decreased to $4 million from $6.5 million in the prior year, reflecting improved credit quality. The allowance for credit losses on loans was 1.24% of total loans, slightly up from 1.22% at year-end 2024, indicating a stable credit environment despite some increases in criticized loans.

Strategically, Berkshire is in the process of merging with Brookline Bancorp, a transaction that was approved by shareholders in May 2025 and is expected to close in the third quarter of 2025. This merger is anticipated to enhance the company’s market presence and operational efficiencies. The company also reported a decrease in full-time equivalent staff to 1,158 positions, down from 1,283 a year earlier, as part of ongoing restructuring efforts aimed at improving operational efficiency.

Looking ahead, Berkshire Hills Bancorp remains optimistic about its growth trajectory, bolstered by its strong capital ratios, which exceed regulatory requirements. The company’s common equity tier 1 capital ratio was 13.4% at the end of the second quarter, up from 13.0% at year-end 2024. Management expects continued improvements in net interest income and operational efficiency, positioning the company favorably for future performance.