Berkshire Hills Bancorp (NYSE: BHLB) is a regional bank based in Pittsfield, Massachusetts, that you probably haven't heard much about unless you're from New England. Like many small banks, Berkshire Hills (which has about $13 billion in assets) has really struggled this year, devastated by the coronavirus pandemic and its effects. But the bank beat earnings estimates in the third quarter and established some positive momentum after net losses in the first two quarters of the year. At its current low value, is Berkshire Hills a buy?
After two straight quarters of net losses, Berkshire Hills posted net income of $21.4 million, or $0.42 per share, in the third quarter, down slightly from $22.6 million in the same period last year. Revenue was down 27% to $96.7 million year over year, but up about 2% over the second quarter. Fee income was down 8% year over year, but up 9% over the previous quarter, primarily due to higher deposit fees as transaction volumes increased. Also, provision for credit losses was just $1.2 million, down from $29.8 million the previous quarter.
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Is Berkshire Hills Bancorp a Buy?