BHLB - Earnings call 4 2023 | Berkshire Hills Bancorp, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Berkshire Hills Bancorp Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, January 25, 2024. I would now like to turn the conference over to Mr. Kevin Conn. Please go ahead, sir.

Kevin Conn

you Berkshire thank Earnings Fourth and Call. morning, for Bank's joining Quarter Good Kevin and Investor name Conn, My is Relations Corporate Officer. Development

Chief me Risk Chief with Officer; Chief today Nitin Officer; Operating Gray, Financial Mhatre, Rosato, Officer; Greg Officer. Here and David Chief are Sean Lindenmuth, Executive

include financial and the disclosure legal Nitin? non-GAAP Our time, statements A results X non-GAAP over of Actual call presentation non-GAAP measures refer on financial referencing to and to our remarks turn I'll our is will differ Please materially see to reconciliation of included measures. Nitin. earnings the forward-looking this could news measures. from forward-looking statements those statements. GAAP At release. Page in

Nitin Mhatre

my the morning, you and joining Kevin. comments for you highlights Good Slide you, Thank X, fourth full can year. everyone, the where quarter I'll and see thank for on the begin us today.

in balances. used with wholesale in the the associated a those security remains early While environment negative borrowings, rate securities. late trends fourth we are the pay We carry down executed proceeds by to the encouraged quarter deposit eliminating challenging, sale those and

We also charge of workforce reduction $X.X severance across the incurred related to organization. million a a

We few credit in in vision For items detail our growth expense deposit David review top self-fund bank. a more will high-performing will be XXXX in a strategic these to and to and optimization, our be priorities. priorities XXXX, that our guidance intend investments management minutes. support relationship-focused community

year of and was linked EPS primarily in quarter, year-over-year. net income. net decline the Operating $XX.X XXXX $X.XX $X.XX of from income for EPS X% declined X% was Full operating down quarter a million, interest

in deposit asset quality encouraged are trends by quarter. We growth the and the in

increase we largely have of loan up and points our X% quarter, performing X.XX% down, driven basis to linked time an increased trended Nonperforming and loan money loans. XX% declined books deposits. market Our were in Average and assets are linked allowance loss X by our quarter, costs by credit net charge-offs well. and deposits

uninsured deposits in with our Our is and position page We've liquidity more XXX%. robust, appendix was coverage core details. included of a available liquidity the

were up less given underwriting. year-over-year Our than average disciplined lower XX% X% quarter demand loan and loan balances linked and up

quarter strong. ratio Tier X% equity remains of in tangible We and XX% a sheet common We shares fourth the ended reduced ratio common count of the X.X by balance in shares with quarter and a share our year. Our million X repurchased XXX,XXX XXXX, which the X%. over equity

these million expect and We've deck approved portfolio less in and new will metrics the estate is Our XX to regulators these XXXX, moments. and on Board page David real highlight that of portfolio. more share in has diverse portfolio have we Both risky. pages repurchases continue a details geographically our commercial our of overall office authorized that and provides resultantly of in our some in cover repurchase opportunistically. detail on earnings granular, our program share few pages updated a

branches and estate, sheet. network X X buildings. XXXX, We strategic exited steady to progress Optimizing our continue branch we on and priorities. office balance In real consolidated make

occupancy to We to our opportunities will look expenses for continue lower further.

Our our and consumer experience platform business efficiency. converted client platform small clients improve to banking team for successfully and the digital

has banks as the enabled their highest in and only Our XXXX, to were one customer in our Massachusetts were Newsweek markets headquartered deposit Net relationship-focused employee hire country Promoter overall engagement rating. bank Score The we the we're disruption recognized the of us frontline and opportunistically an at by and and with level in regional bankers. X-star in best

presented key part Berkshire. by Gaining meaningful disruption team. shows X Slide progress of opportunity strong complement have and bankers even for our the X would deposit on books small These market existing the our a performance be metrics.

the XX.X%, near our low the equity are on was year range full return common lower points assets operating basis our end and tangible operating we target above target at on of Our return end XX for XXXX, our range. of

PPNR full grew $XXX million. Our year to

top Net XX. in score Promoter and nationally the further ESG full to improved year quartile Score our remains Our

X colleagues made want are steady bank. over use to vision have energized a performance financial to to high-performing improving our and opportunity continued of opportunities relationship-focused community this We progress their hard my all for the significant further. years Berkshire last and our I commitment work about to be thank Bank for

sets corresponding that, to strategy truly this in more dedication their changes Through internally, the David? us discuss to to commitment apart. detail. together David what and to brings and being made turn customers With I'll communities is difficult environment our over our us our and external and call financials

R. Rosato

an shows X, jump X Slide Nitin. you, quarter. to of overview I'll XXXX, fourth which but details Thank the Slide

As earnings per were linked Nitin $X.XX or million down mentioned, diluted share, operating $XX.X quarter. fully $X.XX

quarter the up noninterest recover XXX were the of X $X quarter, end several margin interest or Our million I Operating and our was down and and quarter. basis million $X Average points income quarter. linked line increased should income quarterly over are loans while $XX down linked average X% third million, $XX.X July rates X% million, note below the million QX. Operating net coming was quarters. deposits million down run interest from at down expense X%. million for $XXX linked quarter items linked Provision guidance declined X% $X.X that and $XX.X from fee quarter, net historic was year-over-year. or lower $X expenses the increased million,

in We allowance the losses more detail credit consumer, commercial security in $X.XX had Net $X.X million our loan X down sold million losses our per Slide million loans. credit points share of fully sale. our shows points which million average details X or $XX $XX were incurred real decline of up reflects our diluted in nonstrategic growth securities balances, million million We pretax million $X.X a by bringing Slide residential points linked provides were of $XXX allowance in loan loans basis a loss XXX XX of runoff decline million for $XX We a quarter, charge-offs tax. of of or of with and to basis $XX of quarter. and after on of for million which in $XX.X and year-over-year. C&I estate basis portfolios. average XX $XX increased

earn-back and is down million, period quarter. borrowings was about at X Our FHLB $XXX wholesale years, were the proceeds pay and down million to quarter linked which down XX% funding. $XXX used were ended

assets was at quarter. $XXX Our Average Slide X average shows in deposit securities increased year-end. total the to or X% deposits balances. our XX% million

an money market shifted deposits were decline in up a and basis modest deposit the were mix a deposits from deposits. percentage QX. versus Noninterest-bearing in third costs XXX in time basis expected, XX the quarter As with XX% and the quarter. Deposit total as in fourth points points deposits the of noninterest-bearing increase XX%

Borrowings funding, points Our cumulative Fed of XXX in through tightening. from is were total X% total basis of QX. deposit X% down beta XX%

Turning in net the to interest to X% NII. $X.X costs or Slide we XX, show decrease deposit million income. Higher contributed

Gain adjustments interest swap margin driven also X% fees fee were expenses. line fair was on linked lower below down market. operating million. were our in run were normal SBA rate. on premiums was rate. net $XXX,XXX quarter down shows quarterly by fees primarily Slide quarter lower $XXX,XXX the XX shows is XXX. linked quarter. income to up due up sale Operating of from Slide $XXX,XXX were that that item loans equity Our linked value about Other XX A X% to about running income below down securities. $XX.X expenses run normal $XXX,XXX Loan-related $XXX,XXX $XXX,XXX or

'XX Importantly, for a occupancy professional third quarter at expense guidance rate were encourage there offset was modest declines expenses. thoughts I'd equipment. look quarter run technology on services partially expense technology and by in was Compensation to expense our true-up fourth so increases flat in and you to and the

the share GAAP expenses charges related million $XX aforementioned or tax per $X.XX of million workforce includes reduction. severance after of to $X.X

we I've managing expenses with to are said discipline previously, transparency. and As committed

We granular have our impact are reducing management a the will to of base. taking approach expense desired very expense that

ensuring revenue points for the credit the rates the million We've and chart are quarter Slide quarter third $X.X $X.X bank the of a a million XX net down $X.X our and dollar since million that to metrics. Berkshire's to pages every down is of basis year-over-year. earnings. into included necessary year-over-year. deck. or the XXXX. versus XX is charge-off Net and and were of with industry asset the $X We've $X.X the million body grow we down We of appendix in were loans or spend efficiently some million our year the to appendix run charge-offs Nonperforming committed quality thoughtful summary linked moved from

basis the office solid points Slide type. is has terms CRE in Credit more with portfolio. remains loans XX period-end at nonaccrual on XX of of our portfolio Slide book CRE diversified loans. that details shows well geography XX collateral of and our quality

majority noted is As weighted large ratios average loan-to-value and quarter, of a the last the space. and about A portfolio in Class are suburban XX%

We quality asset portfolio our credit shared of for solid. this the very and the office portfolio book. more believe have office We data underwritten, also well granular diversified remains is

our we are we portfolios modestly While new carefully, originations reserves. existing we current exist benign, recognize and and that increased credit quality uncertainties and are have metrics both economic monitoring

GAAP Slide XX quarters shows past returns and the operating an on a over X basis.

normal Prior Recall, quarter. last last added current from to headwinds, focused is we we on reporting negative look environment. tangible to our forward excludes with mark portfolio. securities AOC roles medium-term several know, have remain you performance starting presenting the return improving the on As we a but tables quarter, operating financial the AFS that common more denominator new and environment to been a equity our operating

way, common ROTCE includes have on increases reporting of to and lowers mark, that our denominator also a now more this with tangible negative peers consistent both are reporting which aligned we return be Most equity our calculate peers We larger the banks. AOC with and simply denominator ROTCE. so the

capital ratios. Slide our XX shows

million. and sale, quarter to a our $XXX by linked the rates a to Common $XX million X%, XX per basis improved and our to to improved increased The X% tangible in With declined negative $XX.XX. $XXX our Tier TCE from decline share points ratio million negative X AOCI value XX%. equity book security

priority deploy growth. Our top to is loan management support capital capital to organic

million we $XX Secondly, million is of ending business in stock value. cost tangible repurchased In of of at average We undervalued to repurchases, of is that stock we our potential XXXX, and and model. stock $XX.XX price book given we of stock biased remain repurchased our $XX.XX. our below growth average trading an $XX.XX believe QX, $X.X stock cost versus an given at Berkshire low-risk value intrinsic

We to repurchase shares. opportunistically continue will

XX Slide XXXX guidance. our shows

rate Our cuts. incorporates X guidance

which and market does not is in one December in current which of with consensus. is line XXXX guidance impact However, of Bloomberg and

$XX of We expect model payroll so balance were deposits you elevated at normal billion, off end-of-period rates. an balances excludes deposits loan growth Payroll which to loans. X% run above encourage of X% adjusted off year-end, to we'd ending

income, X% the rate. XXXX we We expense Recall our for to business tax PAM which increasing effective and accounting growth. adopting X% amortization normalized our impacting lowers fee expect thereby deposit that tax are in also fees increasing credit

Our base. XXXX we off X% fees adjusted to X% $XX.X of million, for been expect would and have PAM growth that

We $XX expect $XX be provision down up expense to to X% to expenses and million, be X%. million to

be Our in the of change we increases accounting, XX%. range in the to rate XX% with tax will and believe it

Our approved repurchase $XX regulators expect a stock Board is we authorized which opportunistically. and program, have to million use new

to I'd turn back that, for With Nitin to comments. further it like

Nitin Mhatre

resilient a challenging proved XXXX amidst interest for models. X given The large increases banking failures to which idiosyncratic to the of inflation. quell environment be had in industry David. the proved rates business historic industry the Thanks, banks, operating

We environment continue will in to be the challenging. XXXX, operating expect that

deposits While we more that rigorous When growth balances we including management, and look loan levers, are declining We derisking loan forward in and have early balance later environment, opportunistic we turned rapidly expense focused and can to XXXX, into as a controlling what and we normal sheet. several we control the for cannot macro hiring the in the into steadily XXXX I started growth. environment faced banking CEO XXXX. loan on

overcome growth on and expense selective, organic We remain We and will focused management. responsible the profitable current deposit including challenges, similarly growth.

please Laura, over Q&A. I'll the questions. turn it that, for operator the line With open to for

Operator

Instructions] RBC. from first [Operator of Young comes the Billy Our question line from

Bill Young

me hear you Can okay?

Nitin Mhatre

Yes, we can.

Bill Young

repositioning just this let's forward? Can how the margin. guess I kind going start should much run on you elaborate think benefit the of NII do XQ first rate the quarter and first you and

R. Rosato

on annualized transaction. in about an on a X-year It's about the Yes. payback $X net worth securities income. million basis interest increase Well, it's

Bill Young

That it. Got XXXX. beginning at million $X of

R. Rosato

year full the in week sale a Yes. security Well, very that's yes, December. so late in third number. December, But occurred

So X.XX% any it no really margin, of significance reported QX had which impact in was ]. as [

that. a from So step-up we'll see

guide. NII provide obviously in don't but we know, margin you it's the As guidance,

Bill Young

Understood. less impact just contemplated start theme. the does actions rate year impact outlook to if does of Kind NII Fed cuts seeing more rates in cuts X earlier up the the timing trajectory? And the your than then of follow aggressive we that how of if how on that Fed kind versus the be rate

R. Rosato

Sure.

Let me comments. -- of so a couple

occurred transaction term see which first at obviously asset sensitivity cash because increased longer down also an the wholesale securities. elevated late in is we quarter, why you The position for the paid had were short, That's borrowings, XX/XX. us it

You perspective. or saw plus rather transaction margin a liability is neutral more balance jump income over securities we just the where the right? could XXXX, dependent consistently an state, So on of not in put on We've and over from interest course year the That's large net rates sheet. that sheet. the the asset were on been back accretive telegraphed have last go cash to minus steady balance the

rate perspective XX, or is only really NII meeting last because X, an cuts X X XXXX. in the which from So December

a us either X. impact modest has or Will way, very it's on whether X

think question, we're I XXXX, of hearing but basically think we from is our importantly, didn't the in about the with ask the of over I a line margin think banks. lot course what when other more work you

the in. the eases by you or the expect priced them weather will more as That's little bottom We has late second quarter then third margin telegraphed and expansion. whether in this or of margin Fed to the see a bit year, the into by what aggressively market in

real that's So important message. a

Billy. think I

Bill Young

And guidance, said additional one follow-ups I gears target guess is appreciate there the I there secondly, firstly? kind actually ratio last. like you'd just Are shifting this of but was guide versus of all any expense when done? efficiency exit a being the had, at that year actions That within expenses. assumed that. to then flat I year appreciate efficiency just I this to for

R. Rosato

of there, questions Two I'll which I'll answer. answer which not Sure. of one detail, in one

the is The first part important part.

opening So expenses other Nitin his in on alluded and our focus comments, to initiatives.

organization we reduction, the was which of So a at modest had the across year. beginning workforce based broad this

recognize about Going think the as targeted progresses. for expenses. year still that a forward, we need more should manner the in We

things how we're how So we and thinking about do staffed.

process. time they It's take that granular. be are to achieve. its So -- it's more a think And can significant, lot end the more technology, results I they but

the in on obviously is So thoughts some that's what expense That that guide. of we're our focused XXXX. around embedded in

to focuses increases flat Holding lot. contracts and et year-over-year we when of And we're and sure efficient to sure the hurt approach continue real that you about since software of every get more escalators taking been in I've is the and other estate and merit expenses company. talked the quarter about think granular generation that making contracts, our contracts, a I've cetera, manage besides is make one don't revenue we're here, capabilities we costs

the we sure So as work time don't lowering spent making that of and damage the expenses company. lot a we expenses potential controlling growth on to we also continue of

ratio. your So a was essentially efficiency so second targeted question Billy,

just We're this that up decline I say going in there. improve, to is need we're would we'll -- recognize not all to out It very We What ratio about been and up. down put committed point, we it. number has that. efficiency come it went excited to I needs think our and at at XXXX.

Nitin Mhatre

channels, about think I and out it and rationalizing significant lever David say connect procurement, automation And talked do about us just optimization you've of I where to on opportunities we best of just what part well. believe we want I to before plan if laid business real may a efficiency. talked have bit and as our -- comment, improve estate, add processes heard as little Billy, being we it we deploying process optimizing key still those, within -- our we our have to

deployed and deploy. So all continue of those levers been have to will

this an at not ongoing X Berkshire. So a activity, It's is an thing. ongoing it's activity

Operator

from Our KBW. next Chris O'Connell of the question comes line from

Christopher O'Connell

I the was guidance. the to off all start appreciate just I detailed fees. hoping on

fees the change that on for off out think tax the kind starts the basis, year-over-year credit on for in averages year that the on the and item where within contractor. do line accounting just fees of For you a

R. Rosato

X I'm not change what the is X. effect, fee higher I economic asking, The Chris. say EPS the just rate. showing in accounting What but things. you're higher sure the effect income, exactly would geography of just It's also a showing between tax

back fee core fee provide benefit around $XXX,XXX the I If timing expense the through you -- that in in quarter see move $XXX,XXX, economic fee your release. And numbers look the savings probably business the the the bit you'll quarter. press answered the tables the details line. that runs contra actually revenue of of and but We income is little that, Have a question? more, makes each each positive

Christopher O'Connell

that the comments set. the made. up discussion. bit Talk of fourth on start I'm the drop first I then there offsetting to the an And that quarter, year is given Yes, in immediate some about taken guide following or the guys charges year the full here just appreciate the in all that were that just cadence the expense quarter? in a is little you factors

R. Rosato

you et FDIC usually the runs quarter, XXX(k) comp high first just the cetera. because as Well, matches, expense, line know,

services, other more What and up professional opportunity where up about take which So buildings expense That's where line I $XXX,XXX X quarter was equipment but and think was if line. look top linked linked it and is at was $XXX,XXX. at the and the our our talked in around numbers, comp and things actually technology quarter Nitin's which branch and comments guess communication that's I down was the just office top about marginally some lies, you to and consolidations. way is the we time down. quarter-over-quarter, occupancy the where is

expense. the been of knows have everyone in fees and also consultants is banks we help. FDIC use examination services, FDIC. But pressure professional regulatory what's also And under on in So there have outside

is professional operating it et the and with partners, rate things to externally or service comment expenses, we that's changing there's that's internally improve whether was changing to opportunity was It way Billy's we're question. where So our was That will do that's do show expenses efficiency we there. cetera. highly core focused trying make the I

However, not fix. a quick it's just

Nitin Mhatre

made Chris, comments his well. also that David add, as point I earlier would in

X% the is outlook like out. And Our I for think know about calling expenses pointed flat you was consensus I growth.

So I will line And where than for self-fund be. the industry well. as focus. the revenue that it's we I improve will that. also the an think is important But ongoing certainly us, that this And that's maybe think better most secondly, is investments our will to continue make we

will our that favorably impact ratio. cumulatively So efficiency

R. Rosato

plus million our Yes. minus, There million And our down, but essentially be mean comment, I quarter-to-quarter, last and what perspective. they very X you would nothing quarterly we thought. right? or in kind just the I it or of even significant Chris, would steady, from are ask that's that maybe $X.X about may going ] way up be going [ did expenses is it, peg variation as see

Christopher O'Connell

last one immediately you are me, loans reprice for floating remind funds. that just if of the And Helpful. us any I Fed percentage of could. Can just would

R. Rosato

that whole majority Prime. XX% fixed. is Well, A XX% XX% SOFR the is of and book floating vast

as T-bill million I'm there. right? for X think that X bit So all for dollars of So month to a intents repricing a almost to month But X overnight -- and few month. -- hundred sorry, tends based X-year there's There's it immediately, XX%. of XX it on be little purposes,

Operator

Piper of comes Fitzgibbon the next from line question from Our Sandler. Mark

Mark Fitzgibbon

comments, you the your below what you've us of perceive Could of stock the that share with to intrinsic estimate you been company be? your back said value. the intrinsic buying value David, in you

R. Rosato

in know, all won't I I potential, that. it, different growth you and come all believe I firm methodologies. we What I a around I valuation we is on tried low-risk number mean, Mark. up my with techniques comments different to and say really -- values, will business model. say we put this as have

about company to think market, I an will ability efficiency in back have our the levels effective be learned to I base. see large get significant this have we to where improve than the today. is state. of of I -- as think this cost the on and proved couple resilient west together our very smaller higher continue put top deposit I is in layered on ability When stronger in market. major much we of for we years, a side. at are towns stock the we're markets I all population mass next think March. and the of that us a Eastern there That bigger trading Remember, and opportunities see population that that of a center this lot of was and --

high-level you. So for of intrinsic that's my definition value

Mark Fitzgibbon

improvements. Okay. pieces might the of Great. Can you pieces mentioned but help those, necessarily think And are you see? us then be bigger the of not about you efficiency what the of what that the potential numbers, synergies kind expense

R. Rosato

Sure. I'll give Nitin. it to I'll out whack take a and

and think that got And that parts are very about I are work about edge, leading our process. so of Narmi. would and Nitin Sean nimble here, before I talk the long There certain the organization

heard name. You've that

But get to our expenses. this So has that operating platform. second business project the day We consumer every third allows led to quarter. to to core really that Very talk I via the APIs. the nice about off have and in talked still us platform in online right? decreases core, leading and

large that, to provider to things a go the embedded more dependent nimble, more we doing also where So meaning more from but to customer business me, on cheaper. of like being centric old way

lot of have less that things we make across there We paper-based. the have simpler, just bank a work. opportunities like to on that to execute are faster, them, see take things and I So

Nitin Mhatre

just Yes, that. to on Mark, I add would

as talk previously You've this us about well. heard

unique optimization. I real estate think we legacy excess acquisitions, Through easily that our opportunities can rationalize. we for have have We do

can that We have we channels rationalize.

kind and looks I call the an organizations, it dollar EMRAC basis, process. have of well. day-to-day to allocation have that think those We is are make [ exploring for David that spent had there what And make to at are of we deploying efficient internal the on and some last in there referred It's as coming that. that a we in that we We it thresholds opportunities quarter, kind an in opportunities and with to dollar we more have we where more of spend procurement technology believe that solutions team most Automation thoughtfully every of to ]. expense sure council pretty every management low is rationalize are resource back opportunities and track there. do

think create building. it's I So just That's us. the culture going of we're efficiency that for opportunities to more

R. Rosato

going and say the follow-up want and I the was kind tied I to make saying, expenses company. of the was into we what trying a just burn point the momentum of to here about was revenue to hurt slash Nitin don't

not the about allude So we're it the to also only needs happened years to to on make going or I that's sure in trying expenses, to to needs accept. over continue, script X what but was the be careful to last momentum thoughtful but that that's

Mark Fitzgibbon

you of on improve you Okay. efficiency. in the particular one And try that is then footprint spread the more the or branches some create all strikes a it expense in. me branches that area in side geography piece geography just and you the selling challenges Would consider to of a have of to the that for density

Nitin Mhatre

think based we getting consolidated value footprint creating have of a I And all to customers continue and yes. for and leverage it we, be then more would our as opportunities as as We and lens look we what's a consolidation know, answer short that them. which rationalization for But services, rationalization at I of opportunities of comes digital best the on network, with and the as the been ability part that's creates were much service to the for do process. footfalls more opportunities. ongoing you think kind footprint they're that and customer team, how And serviced of we broader along. Mark,

Operator

question Hunsicker next the comes from line of Our Seaport. from Laurie

Laura Havener Hunsicker

Just expenses staying here. on

So XX% Is currently your branch that footprint [ right? ]. is

Nitin Mhatre

Correct.

Laura Havener Hunsicker

Okay.

do rationalization Mark's about course sort year, XX% to about to mean over question? the a think that little XX.X%, when that going so, of branch you think next Nitin, of bit how And XX%, the that I is we

Nitin Mhatre

Yes.

that's would answer And through think I most think right? I think the the networks. I branch be be broadly fewer. entire the will sector, it

down If look services. be automated, more X be about it like and that branches think will more will years line, fewer the digitized going you X, how to it's more advisory

not look going we'll years just We're to to be continue XX by We there. as different that, over no And specific last the we're about give opportunities. number. you more a done opportunities and XX, tell I branches it's can X that we're think, down created. So itself, going at consolidated we've get the to

Laura Havener Hunsicker

Okay. And that tech that? the mentioned, was the then true-up much in you how expense fourth quarter

R. Rosato

$XXX,XXX. was It Yes.

Laura Havener Hunsicker

million Or Okay. that And was was restructure $X.X that separate? in that number?

Nitin Mhatre

separate. was It

Laura Havener Hunsicker

Separate.

should how we line be then that? about to should How Okay. Great. that restructuring to see item And be closer When about thinking think we X? your charges going forward? do we look

R. Rosato

said, the expectation today, termed in reduction across it. mean, that we a as the was charge, I Well, company, restructuring we employee-driven force

no So actions that. there's additional like

Yes. activity, the So organization. What efficiencies type we see about, particular forward. were severance do further in talking about how shouldn't that of from charges that improve going we we

As it's systems, I more it's detailed, it's said, of technology oriented. that some

attrition -- won't there of be of there are other could XXXX wouldn't there the in try via charges employee nothing anticipated say or be company. Those is I ever or You like the types into further projects side today. redeployment won't there's either that, severance but parts

Laura Havener Hunsicker

helpful. very That's Okay.

Okay. And sure that I've right. the want this rate, make just I got then, David, to tax

that that line. noninterest line Is tax this? the right to commercial about number going it, projects income that to think million, now advantage about basically, the we item as in So way that's thinking to be was $X.XX that tax be down dropping

R. Rosato

Yes. Yes.

got be outlook, making both you -- the to income adjustment the go fee you if crystal rate. So We the clear to and in 'XX it. tax for tried

Laura Havener Hunsicker

No, transparent. great. That's That's more great. that's

spot margin back spot December And margin? spot third a do here, to you the may have margin the a question. you also, maybe do And margin? occurred spot Billy's just you a in with do appreciate And I have December December you Okay. mean December going then week if here you Do of that restructure restructure? a have margin securities adjusted December. the be have

R. Rosato

bothered to so I haven't been Honestly, on do adjustment. focused I've the XXXX.

roughly December our ]. spot [ So $X.XX margin was

Laura Havener Hunsicker

question, Great. David, maybe us how thinking cannabis and it about newer, Nitin this just loan what whoever, you're your take like? through look is the just realize then and deposit last Okay. I And but or very plans? can high balances you level,

Nitin Mhatre

Sure. are and at lending stage point. activities. pilot. to this balances any It's a the less it's generation really an not support deposit deposit Laurie, million service We're than deposit early doing $XX

Laura Havener Hunsicker

lending? terms to Or any of looking Okay. plans how in deposit is it you're this? only And do at just

Nitin Mhatre

of point only this and cash management it's type time, activities. of deposits At

Operator

next question Group. comes from of from Dave the Our Bishop line Hovde

David Bishop

I hopped the ranks guys the commercial senior senior lenders have for apologize so late, augmenting I been of market on given the within executives, disruption. But the and adding you that.

see either on Just date the Just line curious, green sort hires? to or pipeline? out to having shoots they're to the impact contributing are are And they hires side or loan starting the you these from deposit of or or growth curious the both? of bottom the growth

Nitin Mhatre

come quality bringing high-value and balances some significant result we're are and of only Dave, deposit a the of improvement base significant I pipeline in changing, not loan the are the is that Yes, have of we of a and also this as We think are. and client in, clearly but transition. the number relationships we in seeing

the it's couple last we've it improving that of we of as quarters, believe quality that will forward. move and what's accelerate we production seen is doing the over overall that think I

David Bishop

of opportunities the you Or then well? seeing it. fee on on too? management to Got as are the that side, house there wealth income cross-sell And both are sides

Unknown Executive

Yes, Dave.

blends but mentioned, banking, on are there are now, deposit with generation, definitively Nitin right management. new future well acquisition, private As very wealth we which are opportunities. deposit think They green hires shoots the focused

R. Rosato

I conference us. engine has that but bigger skewed next we is not looking of growth that me I in if about balanced in It's huge the or be from of Boston here. And people, are focused we deposit would today. -- need obviously said out bringing think Berkshire frame, the because market earnings in people, economic That's in that agree over with Boston of what opportunity in primarily this this that's successful. the long-term in are out even lift of a We're right headquartered, And do multiyear If I to are than for successful right? in the state a towards activity type we're to how successful that's everything take right more of Bank And the couple are in we a window much tell really all the think they QX years time we room. is how on. that. this ramifications

Nitin Mhatre

previously as this this We you prepared had Dave, in made large How asked remark well. it's significant. opportunity? my And as is I believe that us well. remarks

and folks we Republic, before, $XX So deposit And bringing that continue that deep time mentioned new benefited opportunity in they're we're we didn't us us billion we of been new to over whole events to First relationships one have about we Valley now that client like have it at harvest when that period disruptions I through with looking that for that looked to market new relationships coming of have bankers it. long are to extent. bringing Silicon have it bringing point, be a the have think to to We're significant captured. and us the grow are players

us we will of a get a So that, fraction if bit. it help quite

Operator

this to the comments. call turn further Thank time. you. Mhatre to Mr. over There now questions at I'd back like closing final are for no

Nitin Mhatre

well. and be a Thank for you your in joining good Berkshire. all interest for and us Have today day

Operator

conference this that Ladies participating disconnect your please for your thank and you for and We concludes sir. you, ask call lines. Thank you gentlemen, today.

Nitin Mhatre

and good Sure. a well. be Have day

Berkshire Hills Bancorp (BHLB) 25 Jan 242023 Q4 Earnings call transcript