Berkshire Hills Bancorp, Inc., Reports Fourth Quarter and Year End 2002 Earnings, Declaration of Dividend and Annual Meeting.Business Editors PITTSFIELD Pittsfield, city (1990 pop. 48,622), seat of Berkshire co., W Mass., between mountain ranges, on branches of the Housatonic River; inc. as a town 1761, as a city 1889. The city is the metropolis of the Berkshire resort area. , Mass.--(BUSINESS WIRE)--Jan. 22, 2003 Berkshire Hills Berkshire Hills (bûrk`shər, –shĭr), mountainous region of wooded hills with many small lakes and streams, W Mass. The Berkshires are a southern extension of the Green Mts. Bancorp, Inc. (the "Company"), (AMEX AMEX See: American Stock Exchange : BHL BHL Bleeding-Heart Liberal BHL Battle Handover Line BHL Breath Hydrogen Level BHL Biohazard Level BHL Bottom of Heated Length BHL Bachelor of Hebrew Letters/Literature BHL Bilateral Hilar Lymphadenomegaly BHL Back-Hoe Loader ), the holding company for Berkshire Berkshire (bärk`shĭr, –shər, bûrk`–) or Berks (bärks, bûrks), former county, S central England. Bank (the "Bank"), reported a net loss of $4.3 million for the fourth quarter of 2002 compared to net income of $1.7 million for the same quarter of 2001. For the year ended December December: see month. 31, 2002, net income totaled $1.8 million as compared to $8.9 million for the year ended December 31, 2001. Year end and fourth quarter earnings were lower primarily due to charges from the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Company's senior management and the reorganizing of its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business strategies. Earnings(loss) per share for the quarter ended December 31, 2002 was ($0.80), compared to basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.30 and $0.28, respectively, for the fourth quarter of 2001. For the year ended December 31, 2002, basic and diluted earnings per share equaled $0.33 and $0.30 respectively, compared to $1.42 and $1.35 for the year ended December 31, 2001. The Company's book value per share at December 31, 2002, September September: see month. 30, 2002, and December 31, 2001 was $19.66, $21.75, and $21.68, respectively. Dividend Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. Berkshire Hills also reported that the Board of Directors declared a quarterly cash dividend of $0.12 per share payable on February February: see month. 21, 2003 to stockholders of record at the close of business on February 6, 2003. Annual Meeting Berkshire Hills Bancorp, Inc., announced today that its 2003 Annual Meeting of Stockholders will be held on May 1, 2003 at the Crowne Plaza This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Hotel, One West Street, Pittsfield, MA at 10:00 a.m. The voting record date has been set as March 13, 2003. The Company intends to distribute proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual materials on or about March 27, 2003. Fourth Quarter Events In the fourth quarter of 2002, the Company restructured its management team which resulted in approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.6 million of charges, consisting of the payment to or accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments for three executive officers and one senior vice president under existing contractual obligations. Additionally, seven directors retired from the Boards of the Company and the Bank and, as a result, the Company incurred a $300,000 charge in the fourth quarter to fund retirement plan benefits. In December, the Company accelerated its efforts to exit the sub-prime indirect automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of loan business by selling $69.7 million of such loans which resulted in charges of $11.2 million. The Company intends to remain active in the indirect automobile business, but not the sub-prime segment of the market. As part of the revised long-term business strategy, the Company restructured its investment portfolio placing less emphasis on equity securities. Equities totaling $18.8 million were sold in December resulting in a gain of $14.8 million. Excluding Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) and Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. Life Insurance (SBLI SBLI Savings Bank Life Insurance SBLI Stressed But Loving It (UK youth musical theatre society) ) stock, equities comprised 9% of the investment portfolio at December 31, 2002. As part of its revised policy and procedures for reviewing and estimating writedowns of repossessed assets, the Company recognized a charge of $1.8 million of which $1.3 million was the result of writing down the values of repossessed automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. and $500,000 was related to the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of one foreclosed property. The Company also increased its allowance for loan losses by $1.5 million to reflect a lower estimate for recoverability of the Bank's remaining sub-prime indirect automobile loans. Management also decided to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. several higher-rate FHLB
borrowings and replace them with lower rate, shorter-term FHLB
borrowings in December. FHLB borrowings totaling $21.2 million with a
weighted average maturity of approximately 26 months and a weighted
average interest rate of approximately 5.56% were replaced by $20.0
million of new FHLB borrowings with a weighted average maturity of nine
months at a weighted average cost of 1.53%. The Company incurred a
prepayment penalty Prepayment penaltyA fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. of $1.1 million in the fourth quarter of 2002 to do so. In total, net charges taken in the fourth quarter of 2002 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the restructuring of the Company's senior management team and the reorganizing of the Company's long-term business strategy amounted to $8.3 million. Financial Condition Total assets at December 31, 2002 were $1.05 billion compared to $1.03 billion at December 31, 2001, an increase of $14.9 million. Total loans decreased $79.9 million to $723.0 million at December 31, 2002 from $803.0 million at December 31, 2001. Consumer loans declined $112.0 million during 2002 as the Company accelerated its efforts to exit the sub-prime indirect automobile loan business and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of sub-prime automobile loans. The total amount of sub-prime indirect automobile loans remaining on the Company's books at December 31, 2002 was $13.4 million. In addition, commercial land development and construction loans declined $8.3 million as completed projects converted to permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. . Partially offsetting these decreases were commercial real estate loans which increased $34.7 million and residential one-to four-family loans which increased $5.6 million reflecting a strong local real estate loan market and the low interest rate environment. Securities, including FHLB and SBLI stock, rose $80.1 million to $226.9 million at December 31, 2002 from $146.8 at December 31, 2001, as loan and equity sales proceeds were invested in bonds, primarily CMO's and callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. agency notes. In addition, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investment securities rose $23.9 million to $43.4 million at December 31, 2002, from $19.5 million at December 31, 2001. Foreclosed real estate totaled $1.5 million at December 31, 2002 versus zero at December 31, 2001, as the Company took possession of one commercial property in the first quarter of 2002 and wrote down the property by $500,000 in the fourth quarter. On December 31, 2002, the Company signed a contract to sell this property at its estimated realizable value in the first quarter of 2003. The allowance for loan losses totaled $10.3 million, or 1.43% of total loans at December 31, 2002 versus $11.0 million, or 1.37% of total loans at December 31, 2001. Deposits increased $39.6 million to $782.4 million at December 31, 2002 from $742.7 at December 31, 2001. Deposit growth has been strong in all deposit categories since December 31, 2001. Certificates of deposit and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: increased $19.9 million from December 31, 2001 and demand deposit accounts increased $4.4 million. Money market and NOW accounts increased $15.4 million. FHLB borrowings decreased $1.0 million to $133.0 million at December 31, 2002 from $134.0 million at December 31, 2001. During the fourth quarter of 2002, the Company continued its fifth 5% stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program purchasing 3,300 shares at a cost of $77,000. The Company repurchased 314,913 shares at a cost of $7.0 million in 2002. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. declined to $120.2 million at December 31, 2002 from $139.3 at December 31, 2001 due primarily to the stock repurchases, a $13.3 million decrease in accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as resulting from this year's restructuring of the investment portfolio, and $2.8 million of dividends paid to shareholders. Results of Operations The Company recorded a net loss of $4.3 million in the fourth quarter of 2002 compared to net income of $1.7 million for the same quarter last year primarily due to $8.3 million of charges related to the restructuring of senior management and the reorganizing of the Company's long-term business strategies. Interest and dividend income totaled $14.5 million for the three months ended December 31, 2002 versus $18.3 million for the three months ended December 31, 2001. This decrease is primarily due to lower loan interest which declined by $3.8 million to $12.6 million for the fourth quarter of 2002 from $16.5 million for the same quarter last year as a result of lower balances and yields on the Company's loan portfolio. The decrease also reflects the forfeiture The involuntary relinquishment of money or property without compensation as a consequence of a breach or nonperformance of some legal obligation or the commission of a crime. The loss of a corporate charter or franchise as a result of illegality, malfeasance, or Nonfeasance. of accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. of $492,000 related to the sale of sub-prime automobile loans. Interest expense was $5.5 million for the fourth quarter of 2002, a decrease of $1.7 million from $7.2 million for the fourth quarter last year. Higher balances in the Company's deposit accounts were more than offset by lower rates paid on all interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities. The provision for loan losses for the fourth quarter of 2002 totaled $2.3 million compared to $4.6 million for the same period in 2001, a decrease of $2.2 million. The provision for 2002 includes $1.5 million attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to management's assessment of its remaining sub-prime indirect automobile loans. The decrease in the provision in 2002 primarily resulted from management's assessment of the decline in consumer loan charge-offs which, net of recoveries, totaled $2.7 million in the quarter as compared to $4.4 million in the same quarter last year. The higher provision for the fourth quarter of 2001 reflects the adoption of a more aggressive policy regarding the charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. of automobile loans whereby all automobile loans that were 120 days or more past due, except for customers who are in bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party , were charged off. Net interest income after the provision for loan losses equaled $6.7 million for the last quarter of 2002 compared to $6.5 million for the last quarter of 2001. Noninterest income dropped $871,000 to $4.3 million for the fourth quarter of 2002 from $5.2 million for the fourth quarter of 2001. The fourth quarter of 2002 reflects a $14.8 million gain on the sale of equity securities which was offset, in part, by $13.4 million of charges related to the sale of sub-prime indirect automobile loans, the writedown of one security, the writedown of repossessed automobiles and the prepayment penalty on the FHLB advances. Higher noninterest income in the fourth quarter of 2001 reflects a $2.2 million gain on the curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. of the Company's defined benefit pension plan. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $17.9 million for the three months ended December 31, 2002 compared to $9.2 million for the three months ended December 31, 2001. Salaries and benefits expense equaled $12.2 million for the fourth quarter of 2002 versus $4.9 million for the fourth quarter of 2001. Included in the 2002 fourth quarter figure is $6.9 million of severance and retirement expenses. Foreclosed real estate and other loan expenses increased $1.0 million to $1.4 million this year as the Company wrote down one manufacturing property. For the year ended December 31, 2002, net income totaled $1.8 million, a decrease of $7.1 million from $8.9 million for the year ended December 31, 2001. Similar to the fourth quarter of 2002, year end earnings were adversely impacted by the same restructuring events. Net interest income totaled $40.7 million for 2002, a decline of $1.5 million from 2001. Interest and dividend income declined $11.7 million to $64.1 million for 2002 from last year as a significant number of customers refinanced higher rate loans and excess cash flows from prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. or maturing loans were reinvested in lower yielding securities.
The results for 2002 also reflect the forfeiture of accrued interest
receivable of $492,000 related to the sub-prime automobile loan sale.
Interest expense dropped $10.1 million to $23.4 million for 2002 from
$33.6 million for 2001 as the Company paid lower rates on all deposit
accounts and borrowings from the FHLB.The provision for loan losses totaled $6.2 million for the year ended December 31, 2002, as compared to $7.2 million for last year. The decrease of $1.0 million in the provision from last year primarily reflects management's assessment of the lower balances of sub-prime automobile loans which typically bear higher risk compared to other loans. Net interest income, after the provision for loan losses, totaled $34.5 million for the twelve months ended December 31, 2002, a decrease of $541,000 from 2001. Noninterest income increased $2.1 million to $13.4 million for the year ended December 31, 2002 from $11.4 million for the year ended December 31, 2001 as the net effects of the fourth quarter events in 2002 increased noninterest income by $1.4 million. The figure for 2001 was aided by a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of $2.2 million on the curtailment of the Company's defined benefit pension plan. The increase in 2002 was aided by the recording of a full year's worth of fees earned from the operations of EastPoint Technologies, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control versus only six months last year. For the year ended December 31, 2002 operating expenses equaled $45.8 million, an increase of $12.6 million over last year's $33.2 million. Significant portions of this increase were due to the $6.9 million of charges related to management severance and board retirement expenses and the $500,000 writedown of a foreclosed commercial property. In addition, operating expenses increased due to the recognition of a full year's worth of expenses of EastPoint versus only six months last year. Berkshire Hills Bancorp, Inc. is the holding company for Berkshire Bank. Established in 1846, Berkshire Bank is one of Massachusetts' oldest and largest independent banks and is the largest banking institution based in Western Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. . The Bank is headquartered in
Pittsfield, Massachusetts "Pittsfield" redirects here. For other places named Pittsfield, see Pittsfield (disambiguation).Pittsfield is the largest city and county seat of Berkshire County, Massachusetts, United States. with 11 branch offices serving communities throughout Berkshire County. The Bank is committed to continuing to operate as an independent bank, delivering exceptional customer service and a broad array of competitively priced retail and commercial products to customers. This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with regard to the Company's prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, and is including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions, and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or other similar expressions. The Company's ability to predict results or the actual effects of its plans and strategies are inherently uncertain. Accordingly, actual results may differ materially from anticipated results. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, the price of loans or other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. sold by the Bank in the future, changes in market interest rates, general economic conditions, legislation, and regulation; changes in the monetary and fiscal policies of the U.S. Government; changes in the quality or composition of the loan and investment portfolios; changes in deposit flows, competition, and demand for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and loan, deposit, and investment products in the Company's local markets; changes in local real estate values; changes in accounting principles and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; war or terrorist activities; and other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. , and technological factors affecting the Company's operations, pricing, and services. Specific factors that could cause future results to vary from current management expectations are detailed from time to time in the Company's SEC filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements, to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date on which such statements were made.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited
Dec. 31, Dec. 31,
2002 2001
In thousands
ASSETS
Cash and due from banks $17,258 $22,652
Short term investments 43,397 19,471
Total cash and cash equivalents 60,655 42,123
Securities available for sale, at fair value 173,169 104,446
Securities held to maturity, at amortized cost 44,267 33,263
Federal Home Loan Bank stock, at cost 7,440 7,027
Savings Bank Life Insurance stock, at cost 2,043 2,043
Loans 723,022 800,414
Loans held for sale, at lower of cost or fair
value - 2,540
Allowance for loan losses (10,308) (11,034)
Net loans 712,714 791,920
Premises and equipment, net 13,267 14,213
Foreclosed real estate 1,500 -
Accrued interest receivable 5,125 5,873
Goodwill and other intangibles 9,938 10,592
Net deferred tax asset 2,185 -
Other assets 13,315 19,201
TOTAL ASSETS $1,045,618 $1,030,701
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $782,360 $742,729
Federal Home Loan Bank advances 133,002 133,964
Securities sold under agreements to repurchase 700 1,890
Net deferred tax liability - 4,573
Loan sold with recourse 1,201 -
Accrued expenses and other liabilities 5,677 5,099
Total Liabilities 922,940 888,255
Minority Interests 2,438 3,123
Stockholders' Equity:
Preferred stock ($.01 par value;
1,000,000 shares authorized; none issued
or outstanding) - -
Common stock ( $.01 par value: 26,000,000
shares authorized; shares issued:
7,673,761 at December 31, 2002 and
December 31, 2001; shares outstanding:
6,117,134 at December 31, 2002 and
6,425,140 at December 31, 2001) 77 77
Additional paid-in capital 74,632 74,146
Unearned compensation (9,535) (11,101)
Retained earnings 79,682 80,657
Accumulated other comprehensive income 5,542 18,836
Treasury stock, at cost (1,556,627 shares
at December 31, 2002 and 1,248,621 shares
at December 31, 2001) (30,158) (23,292)
Total stockholders' equity 120,240 139,323
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,045,618 $1,030,701
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Unaudited
Dec. 31, 2002 Dec. 31, 2001
% of % of
Loan Analysis Balance Total Balance Total
Dollars in Thousands
Real estate loans
Residential 1-4 family $235,020 32.50%$229,432 28.57%
Residential land development and
construction 6,576 0.91% 3,585 0.45%
Commercial one-to four-family 11,932 1.65% 11,517 1.43%
Commercial real estate 119,198 16.49% 84,538 10.53%
Commercial land development and
construction 11,051 1.53% 19,351 2.41%
Multi-family 14,920 2.06% 13,183 1.64%
Total real estate loans 398,697 55.14% 361,606 45.03%
Commercial loans 165,274 22.86% 170,305 21.21%
Consumer loans
Automobile 105,047 14.53% 216,026 26.90%
Home Equity Loans 40,713 5.63% 34,439 4.30%
Other 13,291 1.84% 20,578 2.56%
Total consumer loans 159,051 22.00% 271,043 33.76%
Total loans 723,022 802,954
Less: Allowance for loan losses (10,308) 1.43% (11,034) 1.37%
Loans, net $712,714 $791,920
% of % of
Deposit Analysis Balance Total Balance Total
Dollars in Thousands
Demand Deposits $87,149 11.14% $82,758 11.14%
NOW Accounts 92,245 11.79% 80,970 10.90%
Savings Accounts 158,468 20.26% 151,565 20.41%
Money Market Accounts 114,309 14.61% 110,199 14.84%
Certificates of Deposits 330,189 42.20% 317,237 42.71%
Total Deposits $782,360 $742,729
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Unaudited Unaudited
Three Months Twelve Months
Ended Ended
December 30, December 30,
2002 2001 2002 2001
(In thousands, except per share amounts)
INTEREST AND DIVIDEND INCOME
Bond interest $1,467 $1,358 $5,407 $5,608
Stock dividends 324 341 1,355 1,484
Short term investment interest 130 141 456 413
Loan interest 12,628 16,460 56,910 68,291
TOTAL INTEREST AND DIVIDEND INCOME 14,549 18,300 64,128 75,796
INTEREST EXPENSE
Interest on deposits 4,221 5,686 17,777 26,685
Interest on FHLB advances and
securities sold under agreements
to repurchase 1,326 1,547 5,651 6,875
TOTAL INTEREST EXPENSE 5,547 7,233 23,428 33,560
NET INTEREST INCOME 9,002 11,067 40,700 42,236
PROVISION FOR LOAN LOSSES 2,305 4,550 6,180 7,175
NET INTEREST INCOME, AFTER
PROVISION FOR LOAN LOSSES 6,697 6,517 34,520 35,061
NONINTEREST INCOME
Customer service fees 567 453 2,233 1,810
Trust department fees 431 479 1,796 1,782
Loan fees 46 109 440 595
Gain on sale of securities, net 14,833 2 15,143 268
Loss on impairment of securities (326) - (673) -
Loss on sale of loans, net (10,702) - (10,702) -
Loss on impairment of other assets (1,262) - (1,262) -
Penalty on prepayment of FHLB
borrowings (1,067) - (1,067) -
License maintenance & processing
fees 1,111 1,094 4,379 2,100
License sales & other fees 628 754 2,612 2,144
Gain on curtailment of defined
benefit pension plan - 2,173 - 2,173
Other income 69 135 519 490
TOTAL NONINTEREST INCOME 4,328 5,199 13,418 11,362
OPERATING EXPENSES
Salaries & benefits 12,227 4,925 28,488 17,590
Occupancy & equipment 1,356 1,357 5,288 4,689
Marketing & advertising 259 220 648 629
Data processing 264 201 758 1,065
Professional services 442 455 1,384 1,314
Office supplies 238 217 769 899
Foreclosed real estate and other
loans, net 1,429 398 3,250 2,238
Amortization of other intangibles 175 382 700 827
Minority interests (385) (148) (685) (119)
Other expenses 1,864 1,152 5,207 4,031
TOTAL OPERATING EXPENSES 17,869 9,159 45,807 33,163
INCOME (LOSS) BEFORE TAXES (6,844) 2,557 2,131 13,260
Provision (Benefit) for income
taxes (2,555) 838 362 4,349
NET INCOME (LOSS) $(4,289) $1,719 $1,769 $8,911
Earnings (Loss) per share:
Basic $(0.80) $0.30 $0.33 $1.42
Diluted $(0.80) $0.28 $0.30 $1.35
Weighted average shares outstanding:
Basic 5,370 5,763 5,435 6,264
Diluted 5,370 6,157 5,881 6,604
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS
Unaudited Unaudited
At or for the At or for the
Three Months Twelve Months
Ended Ended
December 31 December 31
2002 2001 2002 2001
Dollars in Dollars in
thousands thousands
Performance Ratios (1):
Return (Loss) on average assets -1.60% 0.67% 0.17% 0.86%
Return (Loss) on average equity -13.13% 4.87% 1.30% 5.74%
Net interest margin as % of
average earning assets 3.11% 4.57% 4.12% 4.35%
Non-interest income to average
earning assets 2.12% 2.15% 1.36% 1.17%
Non-interest expense to average
earning assets 7.01% 3.78% 4.64% 3.41%
Asset Quality Ratios (2):
Average earning assets to average
assets 94.88% 93.78% 93.92% 93.80%
Net charged-off loans to total
loans 0.55% 0.54% 0.96% 0.79%
Non-performing loans to total loans 0.52% 0.34% 0.52% 0.34%
Non-performing assets to total
assets 39.36% 0.26% 39.36% 0.26%
Allowance for loan losses to non-
performing loans 275.54% 408.36% 275.54% 408.36%
Allowance for loan losses to total
loans 1.43% 1.37% 1.43% 1.37%
Capital ratios (2):
Stockholders' equity to total
assets -25.08% 13.50% -25.08% 13.50%
Tier I capital to average assets 10.05% 11.00% 10.05% 11.00%
Tier I capital to risk weighted
assets 13.47% 12.97% 13.47% 12.97%
Total capital to risk weighted
assets 15.21% 15.73% 15.21% 15.73%
Other data (2):
Non-performing loans $3,741 $2,702 $3,741 $2,702
Foreclosed real estate $1,500 $- $1,500 $-
Non-performing assets $5,241 $2,702 $5,241 $2,702
Efficiency ratio (3) 115.16% 56.31% 72.23% 62.18%
Book value per share $19.66 $21.68 $19.66 $21.68
(1) Ratios are annualized for the three and twelve months ended
December 31, 2002 and 2001
(2) End of period ratios and balances
(3) Efficiency ratio for 2002 equals operating expenses less severance
payments divided by net interest income plus noninterest income
less gain on sale of securities plus loss on sale of loans.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion