Profits Down, Revenue Up at Berkshire Bank
Photo | Rick Saia
A Westborough branch of Berkshire Hills Bancorp, more commonly called Berkshire Bank
Acquisitions helped fuel a 17 percent increase in revenue at Berkshire Hills Bancorp, but a reduction in refinancing activity sent earnings per share plummeting more than 17 percent.
The Pittsfield-based parent of Berkshire Bank announced revenues of $58 million in the third quarter of 2013, exceeding both analysts’ expectations of $53.6 million and the 2012 performance of $49.5 million.
Profits, however, sunk on a year-over-year basis from 51 cents per share to 43 cents. That still beat analysts’ predictions of 41 cents.
“We had a good quarter and our business expansion initiatives have driven year-to-date earnings despite the headwinds resulting from the interest rate environment,” CEO Michael Daly said. “We renewed loan growth while trimming core expenses, achieving near-term core earnings and profitability targets.”
Berkshire said it cut costs by 4 percent over the most recent quarter to respond to changes in the mortgage market. The company reduced its headcount from 1,014 to 948 full-time equivalent workers, and is in the process of closing or consolidating nine bank branches.
Berkshire Bank currently has a commercial lending office in Westborough and plans to open a retail branch in Westborough this winter.
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