Berkshire Hills' Earnings Rise on Increased Lending, Branch Deal

Berkshire Hills in Pittsfield, Mass., reported higher quarterly earnings because of loan growth and gains from the purchase of 20 Bank of America branches.

The $6.3 billion-asset company's second-quarter net income rose 10% from a year earlier, to $11.5 million, or 46 cents a share. Total assets rose 21%, reflecting the company's purchase of New York branches from B of A.

Net interest income rose 8%, to $44.3 million, driven primarily by balance sheet growth. Total loans rose 14%, to $4.4 billion, primarily because of residential and commercial mortgage loan growth. Total deposits increased 17%, to $4.5 billion. The net interest margin compressed by 37 basis points, to 3.26%.

Noninterest income fell 7%, to $14.5 million.

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