Berkshire Hills in Mass. Plans Cost-Cutting Effort

Berkshire Hills Bancorp (BHLB) in Pittsfield, Mass., is planning a comprehensive review designed to reduce core operating costs.

The $5.2 billion-asset company, which agreed on Wednesday to buy 20 New York branches from Bank of America (BAC), said in a press release that its review will include an evaluation of its branch network. Also, the company announced that Patrick Sullivan, its executive vice president of commercial banking, would resign and that Richard Marotta, its chief risk officer, had accepted the additional post of chief administrative officer.

Marotta will "be implementing a centralized operations group," Michael Daly, the company's chief executive, said in the release. "This will allow us to achieve the best data-driven process improvements and efficiencies and consolidate the benefits of our recent growth."

The company also reported second-quarter earnings, which rose 51% from a year earlier, to $12 million. Noninterest expense increased 11% from a year earlier, to $38 million.

Net interest income increased 17% from a year earlier, to $41 million. Noninterest income rose 27% from the second quarter of 2012, to $15.6 million.

Nonperforming assets were essentially flat from the first quarter and a year earlier, at $29.5 million. The company had $2.7 million in net chargeoffs during the second quarter.