Berkshire Bank net worth in 2024 reflects its strong financial performance, driven by loan growth, deposits, and key capital ratios.
Ando Money breaks down the bank’s assets, equity, and operational efficiency, providing a detailed look at what contributes to its impressive market position.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Berkshire Bank |
| Full Name | Berkshire Hills Bancorp, Inc. |
| Traded as | NYSE: BHLB |
| ISIN | US0846801076 |
| Founded | 1846 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Boston, Massachusetts, United States |
| Chief Executive Officer | Nitin J. Mhatre |
| Number of Employees | N/A |
| Market Cap | $1.12 billion |
| Total Assets | $12.2 billion |
| Total Equity | $1.01 billion |
| Revenue | $108.6 million (Q2 2024) |
| Net Income | $24 million (Q2 2024) |
What is the Net Worth/Market Cap Of Berkshire Bank in 2024?
Berkshire Bank has a market capitalization of $1.12 billion in 2024. While this is an impressive figure, it positions Berkshire Bank among mid-sized financial institutions.
In comparison, larger global banks hold significantly higher market caps. This difference reflects the more community-oriented and regional focus of Berkshire Bank compared to global players.
Nevertheless, Berkshire Bank maintains a strong presence in the U.S. banking sector, driven by its focus on commercial real estate and local business financing.
When compared to other banks in the industry, Berkshire Bank’s market cap highlights its role in the regional banking landscape:
- Bank of America
- Wells Fargo
- JPMorgan Chase
- Citizens Bank
- M&T Bank
- KeyBank
- Truist Financial
- PNC Financial
- Huntington Bancshares
For a broader overview of the largest financial institutions, check out the biggest financial institutions in the world.
Financial Performance Overview
Key Financial Indicators Driving Valuation
Berkshire Bank’s financial health is solid, with several key indicators driving its performance. In the second quarter of 2024, the bank reported net interest income of $88.5 million, an increase from the previous quarter.
The net interest margin stood at 3.20%, indicating that the bank’s ability to generate revenue from its loans and investments remained strong.
This margin improvement was due to loan growth and the strategic sale of certain securities in prior quarters.
Another notable performance metric is the non-interest income, which includes revenue from various services such as SBA loans, wealth management fees, and other financial products.
For Q2 2024, non-interest income reached $20.1 million, largely boosted by the sale of SBA loans, which contributed an additional $1.6 million. These gains brought the bank’s non-interest income to its highest level in five quarters.
Impact of Loan Growth on Revenue
Loan growth is a critical factor contributing to Berkshire Bank’s financial performance. In Q2 2024, the bank’s total loans increased by $143 million, bringing the total loan portfolio to $9.23 billion.
The most significant growth occurred in commercial real estate loans, which rose by $113 million, followed by a $37 million increase in commercial and industrial loans. On the other hand, residential mortgages remained steady, while consumer loans saw a small decline.
These loan growth figures highlight Berkshire Bank’s strong foothold in commercial real estate financing, particularly in New England and New York.
As businesses expand, the demand for commercial loans continues to rise, positioning Berkshire Bank as a trusted partner in the region.
How Deposits Influence Financial Health
Deposits are the lifeblood of any bank, and for Berkshire Bank, the total deposit base stood at $9.62 billion as of June 2024.
However, this represents a decline of $262 million from the previous quarter. Despite this decrease, the bank’s financial health remains stable due to a balanced mix of non-interest-bearing deposits and interest-bearing deposits.
Notably, the loan-to-deposit ratio for Q2 2024 stood at 96%, indicating that the bank effectively uses its deposits to finance loans.
While the decline in deposits is a concern, Berkshire Bank’s strategic focus on attracting more government and institutional clients through its enhanced cash management services is expected to reverse this trend.
Operating Income and Efficiency
Operating income is another key factor in Berkshire Bank’s financial performance. In Q2 2024, operating income reached $23.2 million, which represents a 12% increase from the previous quarter.
This was due to improved revenue streams, combined with a reduction in operating expenses. The bank’s efficiency ratio improved from 66.3% in Q1 2024 to 63.4% in Q2, reflecting cost control efforts such as reducing compensation and occupancy expenses.
Non-Performing Loans and Asset Quality
Maintaining asset quality is crucial for financial stability. Berkshire Bank has effectively managed its credit risk, as demonstrated by its low non-performing loans (NPL) ratio of 0.23%.
This represents a slight decrease from 0.24% in the previous quarter. The bank’s net loan charge-offs also dropped to 0.07%, indicating that fewer loans are being written off as uncollectible.
The allowance for credit losses increased to 1.22% of total loans, up from 1.18% in the prior quarter.
This suggests that while the bank continues to expand its loan portfolio, it is also increasing its reserves to cover potential losses, ensuring a healthy balance sheet.
Capital Ratios and Shareholder Confidence
Berkshire Bank maintains robust capital ratios, which are essential for its long-term stability. The Tier 1 leverage ratio stood at 9.6%, and the Common Equity Tier 1 (CET1) ratio remained steady at 11.6%.
These ratios highlight the bank’s ability to absorb potential losses while continuing to grow its loan portfolio.
During the second quarter, Berkshire Bank repurchased approximately 612,000 shares, worth $13 million.
This move increased the tangible book value per share to $23.18, up from $22.84 in the previous quarter.
Such actions demonstrate Berkshire Bank’s commitment to enhancing shareholder value while maintaining a strong capital position.
FAQs about Berkshire Bank
What is the history of the Berkshire Bank?
Founded in 1846, the bank started as a local financial institution in Massachusetts. It has since expanded across New England and New York, offering commercial and personal banking services.
Who is the CEO of the bank?
The bank’s current CEO is focused on expanding community-oriented banking services and growing commercial loan portfolios.
Where is the bank headquartered?
It is headquartered in Boston, Massachusetts, and operates branches across New England and New York.
How many employees does the bank have?
The bank employs over 1,300 people to support its services across its branches.
What types of loans does the bank offer?
The bank offers commercial real estate, industrial loans, residential mortgages, and consumer loans, focusing heavily on commercial real estate growth.
What is the Berkshire Bank’s market capitalization?
The bank’s market capitalization is valued at $1.12 billion in 2024, positioning it as a mid-sized institution.
How is the bank’s deposit base structured?
The bank holds $9.62 billion in deposits, including non-interest-bearing, interest-bearing, and time deposits, supporting its loan portfolio.
Conclusion
Berkshire Bank continues to grow its net worth through strategic decisions. For more insights into the financial sector, leave a comment or share this article.
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