Berkshire Hills Bancorp (BHLB) investor relations material

Executive summary

• Completed a merger of equals between Brookline and Berkshire, forming a premier Northeast financial services company with total assets of $22.8 billion as of September 30, 2025, and significant growth in loans, deposits, and equity.

• Q3 2025 net loss of $56.3 million, driven by $129.8 million in one-time merger-related costs, but operating earnings were $38.5 million, or $0.44 per share, excluding these charges.

• Integration is progressing as planned, with full system conversion and brand rollout expected in early 2026.

• Strong retention of client-facing talent and positive team morale post-merger.

• Merger accounted for as a reverse merger, with assets and liabilities marked to market as of September 1, 2025.

Financial highlights

• Net interest income for Q3 2025 was $132.6 million, up 49% sequentially and 60% year-over-year, with net interest margin improving to 3.72%.

• Non-interest income nearly doubled year-over-year to $12.3 million, driven by deposit fees, loan fees, and wealth management fees.

• Non-interest expense increased to $129.3 million in Q3 2025, including $45.9 million in merger and restructuring costs.

• Provision for credit losses rose to $87.5 million in Q3 2025, mainly due to the merger.

• Quarterly dividend declared at $0.3225 per share, with a 5.40% yield.

Outlook and guidance

• Net interest margin guidance of 3.90–4.00%, with management expecting stability in the near term and sensitivity to future Federal Reserve rate cuts.

• Credit costs anticipated to trend lower, ranging from $5–9 million per quarter.

• Targeting mid-single-digit growth in interest-earning assets and modest fee income growth.

• Integration and system conversion progressing as planned, with full brand rollout expected in early 2026.

• Effective tax rate estimated at 26% for 2026, excluding merger/restructuring charges.