0001108134 false 12/31 2022 Q3 P2Y http://fasb.org/us-gaap/2022#OtherAssets http://fasb.org/us-gaap/2022#OtherAssets http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNet http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNet http://fasb.org/us-gaap/2022#OtherLiabilities http://fasb.org/us-gaap/2022#OtherLiabilities http://fasb.org/us-gaap/2022#OtherLiabilities http://fasb.org/us-gaap/2022#OtherLiabilities 0001108134 2022-01-01 2022-09-30 0001108134 2022-11-07 xbrli:shares 0001108134 2022-09-30 iso4217:USD 0001108134 2021-12-31 0001108134 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember 2022-09-30 0001108134 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember 2021-12-31 iso4217:USD xbrli:shares 0001108134 2022-07-01 2022-09-30 0001108134 2021-07-01 2021-09-30 0001108134 2021-01-01 2021-09-30 0001108134 us-gaap:DepositAccountMember 2022-07-01 2022-09-30 0001108134 us-gaap:DepositAccountMember 2021-07-01 2021-09-30 0001108134 us-gaap:DepositAccountMember 2022-01-01 2022-09-30 0001108134 us-gaap:DepositAccountMember 2021-01-01 2021-09-30 0001108134 us-gaap:BankServicingMember 2022-07-01 2022-09-30 0001108134 us-gaap:BankServicingMember 2021-07-01 2021-09-30 0001108134 us-gaap:BankServicingMember 2022-01-01 2022-09-30 0001108134 us-gaap:BankServicingMember 2021-01-01 2021-09-30 0001108134 bhlb:InsuranceRevenueMember 2022-07-01 2022-09-30 0001108134 bhlb:InsuranceRevenueMember 2021-07-01 2021-09-30 0001108134 bhlb:InsuranceRevenueMember 2022-01-01 2022-09-30 0001108134 bhlb:InsuranceRevenueMember 2021-01-01 2021-09-30 0001108134 bhlb:AssetManagementFeesMember 2022-07-01 2022-09-30 0001108134 bhlb:AssetManagementFeesMember 2021-07-01 2021-09-30 0001108134 bhlb:AssetManagementFeesMember 2022-01-01 2022-09-30 0001108134 bhlb:AssetManagementFeesMember 2021-01-01 2021-09-30 0001108134 us-gaap:MortgageBankingMember 2022-07-01 2022-09-30 0001108134 us-gaap:MortgageBankingMember 2021-07-01 2021-09-30 0001108134 us-gaap:MortgageBankingMember 2022-01-01 2022-09-30 0001108134 us-gaap:MortgageBankingMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommonStockMember 2021-06-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2021-06-30 0001108134 us-gaap:RetainedEarningsMember 2021-06-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001108134 us-gaap:TreasuryStockCommonMember 2021-06-30 0001108134 2021-06-30 0001108134 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2021-07-01 2021-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommonStockMember 2021-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2021-09-30 0001108134 us-gaap:RetainedEarningsMember 2021-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2021-09-30 0001108134 2021-09-30 0001108134 us-gaap:CommonStockMember 2022-06-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2022-06-30 0001108134 us-gaap:RetainedEarningsMember 2022-06-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001108134 us-gaap:TreasuryStockCommonMember 2022-06-30 0001108134 2022-06-30 0001108134 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2022-07-01 2022-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommonStockMember 2022-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2022-09-30 0001108134 us-gaap:RetainedEarningsMember 2022-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2022-09-30 0001108134 us-gaap:CommonStockMember 2020-12-31 0001108134 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2020-12-31 0001108134 us-gaap:RetainedEarningsMember 2020-12-31 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001108134 us-gaap:TreasuryStockCommonMember 2020-12-31 0001108134 2020-12-31 0001108134 us-gaap:RetainedEarningsMember 2021-01-01 2021-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommonStockMember 2021-01-01 2021-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2021-01-01 2021-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommonStockMember 2021-12-31 0001108134 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2021-12-31 0001108134 us-gaap:RetainedEarningsMember 2021-12-31 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001108134 us-gaap:TreasuryStockCommonMember 2021-12-31 0001108134 us-gaap:RetainedEarningsMember 2022-01-01 2022-09-30 0001108134 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001108134 us-gaap:TreasuryStockCommonMember 2022-01-01 2022-09-30 0001108134 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-09-30 0001108134 us-gaap:DeferredCompensationShareBasedPaymentsMember 2022-01-01 2022-09-30 0001108134 us-gaap:USTreasurySecuritiesMember 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-09-30 0001108134 us-gaap:CollateralizedDebtObligationsMember 2022-09-30 0001108134 bhlb:ResidentialMortgageBackedSecuritiesGuaranteedByUSGovernmentMember 2022-09-30 0001108134 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-09-30 0001108134 us-gaap:CorporateBondSecuritiesMember 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember 2022-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2022-09-30 0001108134 us-gaap:USTreasurySecuritiesMember 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-12-31 0001108134 us-gaap:CollateralizedDebtObligationsMember 2021-12-31 0001108134 bhlb:ResidentialMortgageBackedSecuritiesGuaranteedByUSGovernmentMember 2021-12-31 0001108134 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001108134 us-gaap:CorporateBondSecuritiesMember 2021-12-31 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2021-12-31 0001108134 us-gaap:OtherDebtSecuritiesMember 2021-12-31 0001108134 2021-01-01 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-06-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2022-06-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-07-01 2022-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2022-07-01 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2021-06-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-07-01 2021-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2021-07-01 2021-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2021-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 2022-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2022-01-01 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2020-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-01-01 2021-09-30 0001108134 bhlb:TaxAdvantagedEconomicDevelopmentBondsMember 2021-01-01 2021-09-30 bhlb:security xbrli:pure 0001108134 us-gaap:CollateralizedDebtObligationsMember 2022-01-01 2022-09-30 0001108134 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-01-01 2022-09-30 0001108134 us-gaap:CorporateBondSecuritiesMember 2022-01-01 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember 2022-01-01 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 bhlb:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2022-09-30 0001108134 bhlb:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMember 2021-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-06-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-06-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2022-06-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2022-06-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2022-07-01 2022-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-06-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2022-06-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2022-06-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-06-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-07-01 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-06-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-06-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-06-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-06-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-06-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-07-01 2021-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-06-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-06-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-06-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-07-01 2021-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2022-01-01 2022-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-01-01 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2020-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2020-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2020-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-01-01 2021-09-30 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2020-12-31 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2020-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2020-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2020-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-01-01 2021-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:PassMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2022-09-30 0001108134 us-gaap:PassMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:SpecialMentionMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember us-gaap:SubstandardMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:PassMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:SpecialMentionMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:SubstandardMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:DoubtfulMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SpecialMentionMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SubstandardMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:PassMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001108134 us-gaap:PassMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:SpecialMentionMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember us-gaap:SubstandardMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:PassMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:SpecialMentionMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:SubstandardMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:DoubtfulMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:PassMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SpecialMentionMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:SubstandardMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:NonperformingFinancingReceivableMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetPastDueMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:FinancialAssetPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetPastDueMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancialAssetPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancialAssetNotPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancialAssetPastDueMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember 2022-09-30 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember 2022-09-30 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember 2022-09-30 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2022-09-30 0001108134 us-gaap:FinancialAssetPastDueMember 2022-09-30 0001108134 us-gaap:FinancialAssetNotPastDueMember 2022-09-30 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetPastDueMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:FinancialAssetPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:FinancialAssetNotPastDueMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetPastDueMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancialAssetPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancialAssetNotPastDueMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancialAssetPastDueMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:FinancialAssetPastDueMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancialAssetNotPastDueMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-12-31 0001108134 us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-12-31 0001108134 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-12-31 0001108134 us-gaap:FinancialAssetPastDueMember 2021-12-31 0001108134 us-gaap:FinancialAssetNotPastDueMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-10-01 2021-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-10-01 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember 2021-10-01 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateNonOwnerOccupiedMember 2021-10-01 2021-12-31 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-10-01 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember 2021-10-01 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember 2021-10-01 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-10-01 2021-12-31 0001108134 2021-10-01 2021-12-31 0001108134 bhlb:NonAccrualMember us-gaap:PerformingFinancingReceivableMember 2022-09-30 0001108134 bhlb:NonAccrualMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001108134 us-gaap:PerformingFinancingReceivableMember us-gaap:SubstandardMember 2022-09-30 0001108134 us-gaap:PerformingFinancingReceivableMember us-gaap:SubstandardMember 2021-12-31 0001108134 us-gaap:PerformingFinancingReceivableMember bhlb:ClassifiedMember 2022-09-30 0001108134 us-gaap:PerformingFinancingReceivableMember bhlb:ClassifiedMember 2021-12-31 0001108134 us-gaap:SpecialMentionMember us-gaap:PerformingFinancingReceivableMember 2022-09-30 0001108134 us-gaap:SpecialMentionMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001108134 us-gaap:CriticizedMember us-gaap:PerformingFinancingReceivableMember 2022-09-30 0001108134 us-gaap:CriticizedMember us-gaap:PerformingFinancingReceivableMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateMember 2022-09-30 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember bhlb:OtherCollateralMember us-gaap:CommercialPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 bhlb:OtherCollateralMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember us-gaap:RealEstateMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:OtherCollateralMember bhlb:RealEstateOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:RealEstateMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:OtherCollateralMember bhlb:RealEstateNonOwnerOccupiedMember 2022-09-30 0001108134 us-gaap:RealEstateMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 bhlb:InvestmentSecuritiesandCashMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 bhlb:OtherCollateralMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:RealEstateMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember 2022-09-30 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember bhlb:OtherCollateralMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:RealEstateMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember bhlb:InvestmentSecuritiesandCashMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:HomeEquityLoanMember bhlb:OtherCollateralMember us-gaap:ConsumerPortfolioSegmentMember 2022-09-30 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:RealEstateMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 bhlb:OtherCollateralMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2022-09-30 0001108134 us-gaap:RealEstateMember 2022-09-30 0001108134 bhlb:InvestmentSecuritiesandCashMember 2022-09-30 0001108134 bhlb:OtherCollateralMember 2022-09-30 0001108134 us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateMember 2021-12-31 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:ConstructionLoansMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConstructionLoansMember bhlb:OtherCollateralMember us-gaap:CommercialPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:CommercialPortfolioSegmentMember us-gaap:RealEstateMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 bhlb:OtherCollateralMember us-gaap:CommercialPortfolioSegmentMember bhlb:CommercialMultifamilyMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:RealEstateOwnerOccupiedMember us-gaap:RealEstateMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:OtherCollateralMember bhlb:RealEstateOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:RealEstateMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:CommercialRealEstatePortfolioSegmentMember bhlb:OtherCollateralMember bhlb:RealEstateNonOwnerOccupiedMember 2021-12-31 0001108134 us-gaap:RealEstateMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 bhlb:InvestmentSecuritiesandCashMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 bhlb:OtherCollateralMember bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember us-gaap:RealEstateMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember bhlb:InvestmentSecuritiesandCashMember 2021-12-31 0001108134 us-gaap:RealEstateLoanMember us-gaap:ResidentialPortfolioSegmentMember bhlb:OtherCollateralMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:RealEstateMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember bhlb:InvestmentSecuritiesandCashMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:HomeEquityLoanMember bhlb:OtherCollateralMember us-gaap:ConsumerPortfolioSegmentMember 2021-12-31 0001108134 us-gaap:ConsumerPortfolioSegmentMember us-gaap:RealEstateMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 bhlb:InvestmentSecuritiesandCashMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 bhlb:OtherCollateralMember us-gaap:ConsumerPortfolioSegmentMember bhlb:ConsumerOtherMember 2021-12-31 0001108134 us-gaap:RealEstateMember 2021-12-31 0001108134 bhlb:InvestmentSecuritiesandCashMember 2021-12-31 0001108134 bhlb:OtherCollateralMember 2021-12-31 bhlb:loan 0001108134 bhlb:CommercialAndIndustrialLoansPortfolioSegmentMember bhlb:OtherRealEstateLoansMember 2022-01-01 2022-09-30 0001108134 us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember 2022-09-30 0001108134 us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember 2021-12-31 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember 2022-09-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember 2021-12-31 0001108134 bhlb:BerkshireHillsCapitalTrustIMember 2022-09-30 0001108134 bhlb:BerkshireHillsCapitalTrustIMember 2021-12-31 0001108134 bhlb:SICapitalTrustIIMember 2022-09-30 0001108134 bhlb:SICapitalTrustIIMember 2021-12-31 0001108134 us-gaap:FederalReserveBankAdvancesMember 2022-09-30 0001108134 us-gaap:FederalReserveBankAdvancesMember 2021-12-31 0001108134 bhlb:FederalHomeLoanBankCertificatesAndObligationsFHLBCallableAdvancesMember 2022-09-30 0001108134 bhlb:FederalHomeLoanBankCertificatesAndObligationsFHLBAmortizingAdvancesMember 2022-09-30 0001108134 bhlb:FederalHomeLoanBankCertificatesAndObligationsFHLBCallableAdvancesMember 2021-12-31 0001108134 bhlb:FederalHomeLoanBankCertificatesAndObligationsFHLBAmortizingAdvancesMember 2021-12-31 0001108134 bhlb:FederalHomeLoanBankFixedRateAdvancesMember 2022-09-30 0001108134 bhlb:FederalHomeLoanBankFixedRateAdvancesMember srt:WeightedAverageMember 2022-09-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember us-gaap:SubordinatedDebtMember 2022-06-01 2022-06-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember us-gaap:SubordinatedDebtMember 2022-06-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember bhlb:DebtInstrumentVariableRateThreeMonthSOFRMember us-gaap:SubordinatedDebtMember 2022-09-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember us-gaap:SubordinatedDebtMember 2012-09-01 2012-09-30 0001108134 bhlb:PrivatePlacementSubordinatedNotesMember us-gaap:SubordinatedDebtMember 2012-09-30 0001108134 bhlb:BerkshireHillsCapitalTrustIMember us-gaap:JuniorSubordinatedDebtMember 2022-09-30 0001108134 bhlb:BerkshireHillsCapitalTrustIMember us-gaap:JuniorSubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-09-30 0001108134 bhlb:BerkshireHillsCapitalTrustIMember us-gaap:JuniorSubordinatedDebtMember 2021-12-31 0001108134 bhlb:BerkshireHillsCapitalTrustIMember us-gaap:JuniorSubordinatedDebtMember 2022-01-01 2022-09-30 0001108134 bhlb:SICapitalTrustIIMember us-gaap:JuniorSubordinatedDebtMember 2022-09-30 0001108134 bhlb:SICapitalTrustIIMember us-gaap:JuniorSubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-09-30 0001108134 bhlb:SICapitalTrustIIMember us-gaap:JuniorSubordinatedDebtMember 2021-12-31 0001108134 bhlb:SICapitalTrustIIMember us-gaap:JuniorSubordinatedDebtMember 2022-01-01 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:NondesignatedMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember bhlb:ForwardCommitmentsMember 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember bhlb:ForwardStartingInterestRateSwapsMember us-gaap:CashFlowHedgingMember 2022-09-30 0001108134 us-gaap:CommercialLoanMember bhlb:ForwardStartingInterestRateSwapsMember us-gaap:CashFlowHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:CashFlowHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NontaxableMunicipalBondsMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NontaxableMunicipalBondsMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember bhlb:ReverseInterestRateSwapsMember us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:CommercialLoanMember bhlb:ReverseInterestRateSwapsMember us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:ForwardSaleCommitmentContractMember bhlb:EconomicHedgingMember 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:ForwardSaleCommitmentContractMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:NondesignatedMember us-gaap:CommitmentsToExtendCreditMember 2022-09-30 0001108134 us-gaap:NondesignatedMember us-gaap:CommitmentsToExtendCreditMember 2022-01-01 2022-09-30 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NontaxableMunicipalBondsMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NontaxableMunicipalBondsMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-01-01 2021-12-31 0001108134 us-gaap:CommercialLoanMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:CommercialLoanMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-01-01 2021-12-31 0001108134 us-gaap:CommercialLoanMember bhlb:ReverseInterestRateSwapsMember us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:CommercialLoanMember bhlb:ReverseInterestRateSwapsMember us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2021-01-01 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2021-01-01 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:ForwardSaleCommitmentContractMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:ForwardSaleCommitmentContractMember bhlb:EconomicHedgingMember 2021-01-01 2021-12-31 0001108134 us-gaap:DesignatedAsHedgingInstrumentMember bhlb:EconomicHedgingMember 2021-12-31 0001108134 us-gaap:NondesignatedMember us-gaap:CommitmentsToExtendCreditMember 2021-12-31 0001108134 us-gaap:NondesignatedMember us-gaap:CommitmentsToExtendCreditMember 2021-01-01 2021-12-31 0001108134 us-gaap:NondesignatedMember 2021-12-31 0001108134 us-gaap:CashFlowHedgingMember us-gaap:InterestRateSwapMember 2022-09-30 bhlb:instrument 0001108134 bhlb:ForwardStartingInterestRateSwapsMember us-gaap:CashFlowHedgingMember 2022-09-30 0001108134 us-gaap:InterestRateSwapMember srt:MinimumMember 2022-01-01 2022-09-30 0001108134 srt:MaximumMember us-gaap:InterestRateSwapMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommercialLoanMember us-gaap:InterestRateSwapMember 2021-01-01 2021-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2022-07-01 2022-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2021-07-01 2021-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2022-01-01 2022-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2021-01-01 2021-09-30 0001108134 us-gaap:InterestRateSwapMember 2022-09-30 0001108134 bhlb:EconomicHedgingMember us-gaap:NontaxableMunicipalBondsMember 2022-09-30 0001108134 bhlb:EconomicHedgingMember us-gaap:NontaxableMunicipalBondsMember 2022-01-01 2022-09-30 0001108134 bhlb:EconomicHedgingMember 2022-09-30 0001108134 bhlb:IndustrialRevenueBondMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-07-01 2022-09-30 0001108134 bhlb:IndustrialRevenueBondMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-07-01 2021-09-30 0001108134 bhlb:IndustrialRevenueBondMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 bhlb:IndustrialRevenueBondMember us-gaap:InterestRateSwapMember bhlb:EconomicHedgingMember 2021-01-01 2021-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2022-07-01 2022-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2021-07-01 2021-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 us-gaap:InterestRateSwapMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2021-01-01 2021-09-30 0001108134 bhlb:ReverseInterestRateSwapsMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2022-07-01 2022-09-30 0001108134 bhlb:ReverseInterestRateSwapsMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2021-07-01 2021-09-30 0001108134 bhlb:ReverseInterestRateSwapsMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 bhlb:ReverseInterestRateSwapsMember us-gaap:CommercialPaperMember bhlb:EconomicHedgingMember 2021-01-01 2021-09-30 0001108134 bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2022-07-01 2022-09-30 0001108134 bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2021-07-01 2021-09-30 0001108134 bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2022-01-01 2022-09-30 0001108134 bhlb:RiskParticipationAgreementsMember bhlb:EconomicHedgingMember 2021-01-01 2021-09-30 0001108134 bhlb:EconomicHedgingMember bhlb:ForwardCommitmentsMember 2022-07-01 2022-09-30 0001108134 bhlb:EconomicHedgingMember bhlb:ForwardCommitmentsMember 2021-07-01 2021-09-30 0001108134 bhlb:EconomicHedgingMember bhlb:ForwardCommitmentsMember 2022-01-01 2022-09-30 0001108134 bhlb:EconomicHedgingMember bhlb:ForwardCommitmentsMember 2021-01-01 2021-09-30 0001108134 bhlb:NonhedgingMember us-gaap:CommitmentsToExtendCreditMember 2022-07-01 2022-09-30 0001108134 bhlb:NonhedgingMember us-gaap:CommitmentsToExtendCreditMember 2021-07-01 2021-09-30 0001108134 bhlb:NonhedgingMember us-gaap:CommitmentsToExtendCreditMember 2022-01-01 2022-09-30 0001108134 bhlb:NonhedgingMember us-gaap:CommitmentsToExtendCreditMember 2021-01-01 2021-09-30 0001108134 bhlb:CommercialCounterpartiesMember 2022-09-30 0001108134 bhlb:CommercialCounterpartiesMember 2021-12-31 0001108134 us-gaap:InterestRateSwapMember bhlb:CommercialCounterpartiesMember 2022-09-30 0001108134 us-gaap:InterestRateSwapMember bhlb:CommercialCounterpartiesMember 2021-12-31 0001108134 us-gaap:InterestRateSwapMember bhlb:InstitutionalCounterpartiesMember 2022-09-30 0001108134 us-gaap:InterestRateSwapMember bhlb:InstitutionalCounterpartiesMember 2021-12-31 0001108134 us-gaap:InterestRateSwapMember 2021-12-31 0001108134 srt:MinimumMember 2022-01-01 2022-09-30 0001108134 srt:MaximumMember 2022-01-01 2022-09-30 0001108134 srt:SubsidiariesMember 2022-09-30 0001108134 srt:SubsidiariesMember 2021-12-31 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-12-31 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2022-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-12-31 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-09-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-12-31 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-07-01 2022-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2022-07-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-07-01 2021-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-07-01 2021-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-01-01 2022-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2022-01-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-01-01 2021-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-01-01 2021-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-06-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2022-06-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-06-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-06-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-06-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-06-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-09-30 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-09-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-09-30 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-12-31 0001108134 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-12-31 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0001108134 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0001108134 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001108134 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001108134 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0001108134 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001108134 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0001108134 us-gaap:RestrictedStockMember 2022-07-01 2022-09-30 0001108134 us-gaap:RestrictedStockMember 2021-07-01 2021-09-30 0001108134 us-gaap:RestrictedStockMember 2022-01-01 2022-09-30 0001108134 us-gaap:RestrictedStockMember 2021-01-01 2021-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2022-07-01 2022-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2021-07-01 2021-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-09-30 0001108134 us-gaap:RestrictedStockMember 2022-07-01 2022-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2022-07-01 2022-09-30 0001108134 us-gaap:RestrictedStockMember 2022-01-01 2022-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-09-30 0001108134 us-gaap:RestrictedStockMember 2021-07-01 2021-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2021-07-01 2021-09-30 0001108134 us-gaap:RestrictedStockMember 2021-01-01 2021-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-09-30 0001108134 us-gaap:RestrictedStockMember 2021-12-31 0001108134 us-gaap:EmployeeStockOptionMember 2021-12-31 0001108134 us-gaap:RestrictedStockMember 2022-09-30 0001108134 us-gaap:EmployeeStockOptionMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CollateralizedMortgageObligationsMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CorporateBondSecuritiesMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CollateralizedMortgageObligationsMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CorporateBondSecuritiesMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember bhlb:LoansHeldforInvestmentMember us-gaap:AccountingStandardsUpdate201613Member 2020-01-01 0001108134 us-gaap:SegmentContinuingOperationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member bhlb:LoansHeldforInvestmentMember 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member bhlb:LoansHeldforInvestmentMember 2021-12-31 0001108134 us-gaap:SegmentContinuingOperationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member bhlb:LoansHeldForSaleMember 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member bhlb:LoansHeldForSaleMember 2021-12-31 0001108134 us-gaap:SegmentContinuingOperationsMember bhlb:LoansHeldForSaleMember 2022-07-01 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember bhlb:LoansHeldForSaleMember 2022-01-01 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember 2022-07-01 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember 2022-01-01 2022-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember bhlb:LoansHeldForSaleMember 2021-07-01 2021-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember bhlb:LoansHeldForSaleMember 2021-01-01 2021-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember 2021-07-01 2021-09-30 0001108134 us-gaap:SegmentContinuingOperationsMember 2021-01-01 2021-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2022-06-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2022-06-30 0001108134 bhlb:LoansHeldforInvestmentMember 2022-06-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2022-06-30 0001108134 us-gaap:ForwardContractsMember 2022-06-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2022-06-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2022-07-01 2022-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2022-07-01 2022-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2022-07-01 2022-09-30 0001108134 us-gaap:ForwardContractsMember 2022-07-01 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2022-07-01 2022-09-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2022-07-01 2022-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2022-09-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2022-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2022-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2022-09-30 0001108134 us-gaap:ForwardContractsMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2022-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2021-12-31 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2021-12-31 0001108134 bhlb:LoansHeldforInvestmentMember 2021-12-31 0001108134 us-gaap:CommitmentsToExtendCreditMember 2021-12-31 0001108134 us-gaap:ForwardContractsMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2021-12-31 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2022-01-01 2022-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2022-01-01 2022-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2022-01-01 2022-09-30 0001108134 us-gaap:ForwardContractsMember 2022-01-01 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2022-01-01 2022-09-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2022-01-01 2022-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2021-06-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0001108134 bhlb:LoansHeldforInvestmentMember 2021-06-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2021-06-30 0001108134 us-gaap:ForwardContractsMember 2021-06-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2021-06-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2021-07-01 2021-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2021-07-01 2021-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2021-07-01 2021-09-30 0001108134 us-gaap:ForwardContractsMember 2021-07-01 2021-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2021-07-01 2021-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2021-09-30 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2021-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2021-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2021-09-30 0001108134 us-gaap:ForwardContractsMember 2021-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2021-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2020-12-31 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0001108134 bhlb:LoansHeldforInvestmentMember 2020-12-31 0001108134 us-gaap:CommitmentsToExtendCreditMember 2020-12-31 0001108134 us-gaap:ForwardContractsMember 2020-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2020-12-31 0001108134 us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-09-30 0001108134 us-gaap:TradingAssetsExcludingDebtAndEquitySecuritiesMember 2021-01-01 2021-09-30 0001108134 bhlb:LoansHeldforInvestmentMember 2021-01-01 2021-09-30 0001108134 us-gaap:CommitmentsToExtendCreditMember 2021-01-01 2021-09-30 0001108134 us-gaap:ForwardContractsMember 2021-01-01 2021-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember 2021-01-01 2021-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:MeasurementInputPriceIndicationMember us-gaap:FairValueInputsLevel3Member us-gaap:MarketApproachValuationTechniqueMember 2022-09-30 0001108134 bhlb:CollateralValueMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember srt:MinimumMember 2022-09-30 0001108134 bhlb:CollateralValueMember us-gaap:FairValueMeasurementsRecurringMember srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:HistoricalTrendValuationTechniqueMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember bhlb:MeasurementInputClosingRatioMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember bhlb:PricingModelValuationTechniqueMember bhlb:MeasurementInputOriginationCostsMember 2022-09-30 bhlb:uSDPerLoan 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member bhlb:ForwardCommitmentsMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:HistoricalTrendValuationTechniqueMember us-gaap:FairValueInputsLevel3Member bhlb:MeasurementInputClosingRatioMember bhlb:ForwardCommitmentsMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member bhlb:PricingModelValuationTechniqueMember bhlb:MeasurementInputOriginationCostsMember bhlb:ForwardCommitmentsMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2022-09-30 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:MeasurementInputPriceIndicationMember us-gaap:FairValueInputsLevel3Member us-gaap:MarketApproachValuationTechniqueMember 2021-12-31 0001108134 bhlb:CollateralValueMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember srt:MinimumMember 2021-12-31 0001108134 bhlb:CollateralValueMember us-gaap:FairValueMeasurementsRecurringMember srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:HistoricalTrendValuationTechniqueMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember bhlb:MeasurementInputClosingRatioMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:CommitmentsToExtendCreditMember bhlb:PricingModelValuationTechniqueMember bhlb:MeasurementInputOriginationCostsMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member bhlb:ForwardCommitmentsMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember bhlb:HistoricalTrendValuationTechniqueMember us-gaap:FairValueInputsLevel3Member bhlb:MeasurementInputClosingRatioMember bhlb:ForwardCommitmentsMember 2021-12-31 0001108134 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member bhlb:PricingModelValuationTechniqueMember bhlb:MeasurementInputOriginationCostsMember bhlb:ForwardCommitmentsMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2021-12-31 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2022-09-30 0001108134 us-gaap:MeasurementInputLossSeverityMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember bhlb:FairValueOfCollateralValuationTechniqueMember 2022-09-30 0001108134 srt:MaximumMember us-gaap:MeasurementInputLossSeverityMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2022-09-30 0001108134 us-gaap:MeasurementInputLossSeverityMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2022-09-30 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2022-09-30 0001108134 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2022-09-30 0001108134 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2022-09-30 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2022-09-30 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2021-12-31 0001108134 us-gaap:MeasurementInputLossSeverityMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember bhlb:FairValueOfCollateralValuationTechniqueMember 2021-12-31 0001108134 srt:MaximumMember us-gaap:MeasurementInputLossSeverityMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2021-12-31 0001108134 us-gaap:MeasurementInputLossSeverityMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember 2021-12-31 0001108134 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2021-12-31 0001108134 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2021-12-31 0001108134 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember bhlb:FairValueOfCollateralValuationTechniqueMember us-gaap:MeasurementInputAppraisedValueMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember srt:MinimumMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 bhlb:CapitalizedMortgageServicingRightsMember us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueMeasurementsNonrecurringMember 2021-12-31 0001108134 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-09-30 0001108134 us-gaap:FairValueInputsLevel1Member 2022-09-30 0001108134 us-gaap:FairValueInputsLevel2Member 2022-09-30 0001108134 us-gaap:FairValueInputsLevel3Member 2022-09-30 0001108134 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001108134 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001108134 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001108134 us-gaap:FairValueInputsLevel3Member 2021-12-31
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2022

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to
Commission File Number: 001-15781
BERKSHIRE HILLS BANCORP, INC.
(Exact name of registrant as specified in its charter)

Delaware |  | 04-3510455
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
60 State Street | Boston | Massachusetts |  | 02109
(Address of principal executive offices) |  | (Zip Code)

Registrant’s telephone number, including area code: (800) 773-5601, ext. 133773
Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol(s) |  | Name of each exchange on which registered
Common Stock, par value $0.01 per share |  | BHLB |  | The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o

Table of Contents
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý Accelerated filer o
Non-accelerated filer o Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒
As of November 7, 2022, the Registrant had 45,025,062 shares of common stock, $0.01 par value per share, outstanding

Table of Contents
BERKSHIRE HILLS BANCORP, INC.
FORM 10-Q
INDEX

|  | Page
PART I. | FINANCIAL INFORMATION |
Item 1. | Consolidated Financial Statements (unaudited) |
| Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021 | 4
| Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2022 and 2021 | 5
| Consolidated Statements of Comprehensive (Loss)/Income for the Three and Nine Months Ended September 30, 2022 and 2021 | 6
| Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021 | 7
| Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 | 9
| Notes to Consolidated Financial Statements (Unaudited) |
|  | Note 1 | Basis of Presentation | 11
|  | Note 2 | Trading Security | 12
|  | Note 3 | Securities Available for Sale, Held to Maturity, and Marketable Equity Securities | 13
|  | Note 4 | Loans and Allowance for Credit Losses | 19
|  | Note 5 | Deposits | 32
|  | Note 6 | Borrowed Funds | 32
|  | Note 7 | Derivative Financial Instruments and Hedging Activities | 34
|  | Note 8 | Leases | 41
|  | Note 9 | Other Commitments, Contingencies, Off- Balance Sheet Activities, and Pandemic Impact | 43
|  | Note 10 | Capital Ratios and Shareholders' Equity | 44
|  | Note 11 | Earnings per Share | 49
|  | Note 12 | Stock-Based Compensation Plans | 50
|  | Note 13 | Fair Value Measurements | 51
|  | Note 14 | Net Interest Income after Provision for Credit Losses | 60
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 61
| Selected Financial Data | 61
| Average Balances and Average Yields/Rates | 63
| Non-GAAP Financial Measures | 65
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 80
Item 4. | Controls and Procedures | 82

2

Table of Contents

PART II. | OTHER INFORMATION |
Item 1. | Legal Proceedings | 83
Item 1A. | Risk Factors | 84
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 85
Item 3. | Defaults Upon Senior Securities | 85
Item 4. | Mine Safety Disclosures | 85
Item 5. | Other Information | 85
Item 6. | Exhibits | 86
Signatures |  | 87

3

Table of Contents
PART I
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

|  | September 30, 2022 |  | December 31, 2021
(In thousands, except share data) |  |
Assets |  |  |  |
Cash and due from banks |  | $ | 128,509 |  |  | $ | 109,350 |
Short-term investments |  | 566,404 |  |  | 1,518,457 |
Total cash and cash equivalents |  | 694,913 |  |  | 1,627,807 |
Trading security, at fair value |  | 6,812 |  |  | 8,354 |
Marketable equity securities, at fair value |  | 12,790 |  |  | 15,453 |
Securities available for sale, at fair value |  | 1,470,949 |  |  | 1,877,585 |
Securities held to maturity (fair values of $503,262 and $647,236) |  | 592,503 |  |  | 636,503 |
Federal Home Loan Bank stock and other restricted securities |  | 7,264 |  |  | 10,800 |
Total securities |  | 2,090,318 |  |  | 2,548,695 |
Less: Allowance for credit losses on held to maturity securities |  | (95) |  |  | (105) |
Net securities |  | 2,090,223 |  |  | 2,548,590 |
Loans held for sale |  | 4,124 |  |  | 6,110 |
Total loans |  | 7,943,481 |  |  | 6,825,847 |
Less: Allowance for credit losses on loans |  | (96,013) |  |  | (106,094) |
Net loans |  | 7,847,468 |  |  | 6,719,753 |
Premises and equipment, net |  | 86,809 |  |  | 94,383 |
Other intangible assets |  | 25,761 |  |  | 29,619 |
Cash surrender value of bank-owned life insurance policies |  | 238,052 |  |  | 235,690 |
Other assets |  | 325,894 |  |  | 288,384 |
Assets held for sale |  | 3,830 |  |  | 4,577 |
Total assets |  | $ | 11,317,074 |  |  | $ | 11,554,913 |
Liabilities |  |  |  |
Demand deposits |  | $ | 2,896,659 |  |  | $ | 3,008,461 |
NOW and other deposits |  | 1,045,970 |  |  | 976,401 |
Money market deposits |  | 3,388,932 |  |  | 3,293,526 |
Savings deposits |  | 1,111,304 |  |  | 1,111,625 |
Time deposits |  | 1,545,256 |  |  | 1,678,940 |
Total deposits |  | 9,988,121 |  |  | 10,068,953 |
Long-term Federal Home Loan Bank advances and other |  | 4,494 |  |  | 13,331 |
Subordinated borrowings |  | 121,001 |  |  | 97,513 |
Total borrowings |  | 125,495 |  |  | 110,844 |
Other liabilities |  | 260,896 |  |  | 192,681 |
Total liabilities |  | $ | 10,374,512 |  |  | $ | 10,372,478 |
(continued)
|  | September 30, 2022 |  | December 31, 2021
Shareholders’ equity |  |  |  |
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 45,039,702 shares outstanding in 2022; 51,903,190 shares issued and 48,667,110 shares outstanding in 2021) |  | 528 |  |  | 528 |
Additional paid-in capital - common stock |  | 1,424,158 |  |  | 1,423,445 |
Unearned compensation |  | (10,726) |  |  | (9,056) |
Retained (deficit) |  | (93,820) |  |  | (139,383) |
Accumulated other comprehensive (loss) |  | (188,494) |  |  | (3,243) |
Treasury stock, at cost (6,863,488 shares in 2022 and 3,236,080 shares in 2021) |  | (189,084) |  |  | (89,856) |
Total shareholders’ equity |  | 942,562 |  |  | 1,182,435 |
Total liabilities and shareholders’ equity |  | $ | 11,317,074 |  |  | $ | 11,554,913 |

The accompanying notes are an integral part of these consolidated financial statements.
4

Table of Contents
BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands, except per share data) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Interest and dividend income |  |  |  |  |  |  |  |
Loans |  | $ | 90,266 |  |  | $ | 68,018 |  |  | $ | 227,583 |  |  | $ | 217,872 |
Securities and other |  | 13,405 |  |  | 11,670 |  |  | 38,290 |  |  | 35,333 |
Total interest and dividend income |  | 103,671 |  |  | 79,688 |  |  | 265,873 |  |  | 253,205 |
Interest expense |  |  |  |  |  |  |  |
Deposits |  | 8,164 |  |  | 5,842 |  |  | 16,508 |  |  | 22,406 |
Borrowings |  | 3,423 |  |  | 2,478 |  |  | 6,860 |  |  | 8,945 |
Total interest expense |  | 11,587 |  |  | 8,320 |  |  | 23,368 |  |  | 31,351 |
Net interest income |  | 92,084 |  |  | 71,368 |  |  | 242,505 |  |  | 221,854 |
Non-interest income |  |  |  |  |  |  |  |
Deposit related fees |  | 8,377 |  |  | 7,657 |  |  | 23,733 |  |  | 22,291 |
Loan fees and revenue |  | 3,785 |  |  | 8,285 |  |  | 16,673 |  |  | 25,962 |
Insurance commissions and fees |  | — |  |  | 1,581 |  |  | — |  |  | 7,003 |
Wealth management fees |  | 2,353 |  |  | 2,653 |  |  | 7,753 |  |  | 7,944 |
Mortgage banking originations |  | 58 |  |  | 461 |  |  | 186 |  |  | 1,797 |
Total fee income |  | 14,573 |  |  | 20,637 |  |  | 48,345 |  |  | 64,997 |
Other, net |  | 2,154 |  |  | 1,279 |  |  | 7,132 |  |  | 5,638 |
(Loss) on securities, net |  | (476) |  |  | (166) |  |  | (2,194) |  |  | (681) |
Gain on sale of business operations and other assets, net |  | — |  |  | 51,885 |  |  | — |  |  | 51,885 |
Total non-interest income |  | 16,251 |  |  | 73,635 |  |  | 53,283 |  |  | 121,839 |
Total net revenue |  | 108,335 |  |  | 145,003 |  |  | 295,788 |  |  | 343,693 |
Provision/(benefit) for credit losses |  | 3,000 |  |  | (4,000) |  |  | (1,000) |  |  | 2,500 |
Non-interest expense |  |  |  |  |  |  |  |
Compensation and benefits |  | 39,422 |  |  | 37,068 |  |  | 114,773 |  |  | 112,773 |
Occupancy and equipment |  | 8,702 |  |  | 10,421 |  |  | 28,207 |  |  | 32,044 |
Technology and communications |  | 8,719 |  |  | 8,397 |  |  | 25,857 |  |  | 25,204 |
Marketing and promotion |  | 1,290 |  |  | 860 |  |  | 3,873 |  |  | 1,973 |
Professional services |  | 3,285 |  |  | 3,180 |  |  | 8,890 |  |  | 13,495 |
FDIC premiums and assessments |  | 476 |  |  | 805 |  |  | 2,121 |  |  | 2,852 |
Other real estate owned and foreclosures |  | 13 |  |  | 41 |  |  | 36 |  |  | 17 |
Amortization of intangible assets |  | 1,285 |  |  | 1,296 |  |  | 3,857 |  |  | 3,912 |
Acquisition, restructuring, and other expenses |  | 11,473 |  |  | 1,425 |  |  | 11,526 |  |  | 4,917 |
Other |  | 7,012 |  |  | 5,967 |  |  | 19,562 |  |  | 19,299 |
Total non-interest expense |  | 81,677 |  |  | 69,460 |  |  | 218,702 |  |  | 216,486 |
Income before income taxes |  | $ | 23,658 |  |  | $ | 79,543 |  |  | $ | 78,086 |  |  | $ | 124,707 |
Income tax expense |  | 4,941 |  |  | 15,794 |  |  | 16,058 |  |  | 26,291 |
Net income |  | $ | 18,717 |  |  | $ | 63,749 |  |  | $ | 62,028 |  |  | $ | 98,416 |
Basic earnings per common share |  | $ | 0.42 |  |  | $ | 1.32 |  |  | $ | 1.35 |  |  | $ | 1.98 |
Diluted earnings per common share |  | $ | 0.42 |  |  | $ | 1.31 |  |  | $ | 1.34 |  |  | $ | 1.97 |
Weighted average shares outstanding: |  |  |  |  |  |  |  |
Basic |  | 44,700 |  |  | 48,395 |  |  | 46,056 |  |  | 49,672 |
Diluted |  | 45,034 |  |  | 48,744 |  |  | 46,396 |  |  | 49,963 |

The accompanying notes are an integral part of these consolidated financial statements.
5

Table of Contents
BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Net income |  | $ | 18,717 |  |  | $ | 63,749 |  |  | $ | 62,028 |  |  | $ | 98,416 |
Other comprehensive (loss), before tax: |  |  |  |  |  |  |  |
Changes in unrealized (loss) on debt securities available-for-sale |  | (83,073) |  |  | (10,098) |  |  | (244,933) |  |  | (31,718) |
Changes in unrealized (loss) on derivative hedges |  | (5,555) |  |  | — |  |  | (5,555) |  |  | — |
Income taxes related to other comprehensive (loss): |  |  |  |  |  |  |  |
Changes in unrealized (loss) on debt securities available-for-sale |  | 21,639 |  |  | 2,575 |  |  | 63,743 |  |  | 8,096 |
Changes in unrealized (loss) on derivative hedges |  | 1,494 |  |  | — |  |  | 1,494 |  |  | — |
Total other comprehensive (loss) |  | (65,495) |  |  | (7,523) |  |  | (185,251) |  |  | (23,622) |
Total comprehensive (loss)/income |  | $ | (46,778) |  |  | $ | 56,226 |  |  | $ | (123,223) |  |  | $ | 74,794 |

The accompanying notes are an integral part of these consolidated financial statements.
6

Table of Contents
BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

|  |  |  | Common stock |  | Additional paid-in capital |  | Unearned compensation |  | Retained earnings (deficit) |  | Accumulated other comprehensive income/(loss) |  | Treasury stock |  |
(In thousands) |  |  |  |  |  | Shares |  | Amount |  |  |  |  |  |  | Total
Balance at June 30, 2021 |  |  |  |  |  | 50,453 |  |  | $ | 528 |  |  | $ | 1,423,083 |  |  | $ | (11,006) |  |  | $ | (210,994) |  |  | $ | 14,772 |  |  | $ | (40,994) |  |  | $ | 1,175,389 |
Comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 63,749 |  |  | — |  |  | — |  |  | 63,749 |
Other comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (7,523) |  |  | — |  |  | (7,523) |
Total comprehensive income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 63,749 |  |  | (7,523) |  |  | — |  |  | 56,226 |
Cash dividends declared on common shares ($0.12 per share) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,187) |  |  | — |  |  | — |  |  | (6,187) |
Treasury shares repurchased |  |  |  |  |  | (1,755) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (47,961) |  |  | (47,961) |
Forfeited shares |  |  |  |  |  | (27) |  |  | — |  |  | 146 |  |  | 560 |  |  | — |  |  | — |  |  | (706) |  |  | — |
Exercise of stock options |  |  |  |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | 46 |  |  | 39 |
Restricted stock grants |  |  |  |  |  | 13 |  |  | — |  |  | 89 |  |  | (362) |  |  | — |  |  | — |  |  | 273 |  |  | — |
Stock-based compensation |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 1,371 |  |  | — |  |  | — |  |  | — |  |  | 1,371 |
Other, net |  |  |  |  |  | (29) |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | (805) |  |  | (802) |
Balance at September 30, 2021 |  |  |  |  |  | 48,657 |  |  | $ | 528 |  |  | $ | 1,423,321 |  |  | $ | (9,437) |  |  | $ | (153,439) |  |  | $ | 7,249 |  |  | $ | (90,147) |  |  | $ | 1,178,075 |
Balance at June 30, 2022 |  |  |  |  |  | 45,788 |  |  | $ | 528 |  |  | $ | 1,424,081 |  |  | $ | (12,824) |  |  | $ | (106,997) |  |  | $ | (122,999) |  |  | $ | (167,739) |  |  | $ | 1,014,050 |
Comprehensive (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,717 |  |  | — |  |  | — |  |  | 18,717 |
Other comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (65,495) |  |  | — |  |  | (65,495) |
Total comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,717 |  |  | (65,495) |  |  | — |  |  | (46,778) |
Cash dividends declared on common shares ($0.12 per share) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,493) |  |  | — |  |  | — |  |  | (5,493) |
Treasury shares repurchased |  |  |  |  |  | (705) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (20,249) |  |  | (20,249) |
Forfeited shares |  |  |  |  |  | (23) |  |  | — |  |  | 90 |  |  | 553 |  |  | — |  |  | — |  |  | (643) |  |  | — |
Exercise of stock options |  |  |  |  |  | 11 |  |  | — |  |  | — |  |  | — |  |  | (47) |  |  | — |  |  | 292 |  |  | 245 |
Restricted stock grants |  |  |  |  |  | 7 |  |  | — |  |  | (17) |  |  | (188) |  |  | — |  |  | — |  |  | 205 |  |  | — |
Stock-based compensation |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 1,733 |  |  | — |  |  | — |  |  | — |  |  | 1,733 |
Other, net |  |  |  |  |  | (38) |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | (950) |  |  | (946) |
Balance at September 30, 2022 |  |  |  |  |  | 45,040 |  |  | $ | 528 |  |  | $ | 1,424,158 |  |  | $ | (10,726) |  |  | $ | (93,820) |  |  | $ | (188,494) |  |  | $ | (189,084) |  |  | $ | 942,562 |

7

Table of Contents

|  |  |  | Common stock |  | Additional paid-in capital |  | Unearned compensation |  | Retained earnings (deficit) |  | Accumulated other comprehensive income/(loss) |  | Treasury stock |  |
(In thousands) |  |  |  |  |  | Shares |  | Amount |  |  |  |  |  |  | Total
Balance at December 31, 2020 |  |  |  |  |  | 50,833 |  |  | $ | 528 |  |  | $ | 1,427,239 |  |  | $ | (6,245) |  |  | $ | (233,344) |  |  | $ | 30,871 |  |  | $ | (31,276) |  |  | $ | 1,187,773 |
Comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98,416 |  |  | — |  |  | — |  |  | 98,416 |
Other comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (23,622) |  |  | — |  |  | (23,622) |
Total comprehensive income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98,416 |  |  | (23,622) |  |  | — |  |  | 74,794 |
Cash dividends declared on common shares ($0.36 per share) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (18,411) |  |  | — |  |  | — |  |  | (18,411) |
Treasury shares repurchased |  |  |  |  |  | (2,500) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (68,712) |  |  | (68,712) |
Forfeited shares |  |  |  |  |  | (89) |  |  | — |  |  | (44) |  |  | 2,130 |  |  | — |  |  | — |  |  | (2,086) |  |  | — |
Exercise of stock options |  |  |  |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | (100) |  |  | — |  |  | 262 |  |  | 162 |
Restricted stock grants |  |  |  |  |  | 452 |  |  | — |  |  | (3,885) |  |  | (8,974) |  |  | — |  |  | — |  |  | 12,859 |  |  | — |
Stock-based compensation |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 3,652 |  |  | — |  |  | — |  |  | — |  |  | 3,652 |
Other, net |  |  |  |  |  | (48) |  |  | — |  |  | 11 |  |  | — |  |  | — |  |  | — |  |  | (1,194) |  |  | (1,183) |
Balance at September 30, 2021 |  |  |  |  |  | 48,657 |  |  | $ | 528 |  |  | $ | 1,423,321 |  |  | $ | (9,437) |  |  | $ | (153,439) |  |  | $ | 7,249 |  |  | $ | (90,147) |  |  | $ | 1,178,075 |
Balance at December 31, 2021 |  |  |  |  |  | 48,667 |  |  | $ | 528 |  |  | $ | 1,423,445 |  |  | $ | (9,056) |  |  | $ | (139,383) |  |  | $ | (3,243) |  |  | $ | (89,856) |  |  | $ | 1,182,435 |
Comprehensive (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 62,028 |  |  | — |  |  | — |  |  | 62,028 |
Other comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (185,251) |  |  | — |  |  | (185,251) |
Total comprehensive (loss) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 62,028 |  |  | (185,251) |  |  | — |  |  | (123,223) |
Cash dividends declared on common shares ($0.36 per share) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16,414) |  |  | — |  |  | — |  |  | (16,414) |
Treasury shares repurchased |  |  |  |  |  | (3,825) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (104,543) |  |  | (104,543) |
Forfeited shares |  |  |  |  |  | (75) |  |  | — |  |  | 169 |  |  | 1,911 |  |  | — |  |  | — |  |  | (2,080) |  |  | — |
Exercise of stock options |  |  |  |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  | (51) |  |  | — |  |  | 320 |  |  | 269 |
Restricted stock grants |  |  |  |  |  | 321 |  |  | — |  |  | 536 |  |  | (9,240) |  |  | — |  |  | — |  |  | 8,704 |  |  | — |
Stock-based compensation |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 5,659 |  |  | — |  |  | — |  |  | — |  |  | 5,659 |
Other, net |  |  |  |  |  | (60) |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | (1,629) |  |  | (1,621) |
Balance at September 30, 2022 |  |  |  |  |  | 45,040 |  |  | $ | 528 |  |  | $ | 1,424,158 |  |  | $ | (10,726) |  |  | $ | (93,820) |  |  | $ | (188,494) |  |  | $ | (189,084) |  |  | $ | 942,562 |

The accompanying notes are an integral part of these consolidated financial statements.
8

Table of Contents
BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

|  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021
Cash flows from operating activities: |  |  |  |
Net income |  | $ | 62,028 |  |  | $ | 98,416 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
(Benefit)/provision for credit losses |  | (1,000) |  |  | 2,500 |
Net amortization of securities |  | 2,288 |  |  | 1,533 |
Change in unamortized net loan costs and premiums |  | 2,557 |  |  | (4,772) |
Premises and equipment depreciation and amortization expense |  | 7,257 |  |  | 8,406 |
Stock-based compensation expense |  | 5,659 |  |  | 3,652 |
Accretion of purchase accounting entries, net |  | (1,467) |  |  | (5,046) |
Amortization of other intangibles |  | 3,857 |  |  | 3,912 |
Income from cash surrender value of bank-owned life insurance policies |  | (4,139) |  |  | (4,210) |
Securities losses, net |  | 2,194 |  |  | 681 |
Net change in loans held-for-sale |  | 4,954 |  |  | 6,752 |
Loss on disposition of assets |  | — |  |  | 2,811 |
Gain on sale of real estate |  | — |  |  | 6 |
Amortization of interest in tax-advantaged projects |  | — |  |  | 1,996 |
Gain on sale of business operations and other assets |  | — |  |  | (51,885) |
Prepayment penalties on repayment of Federal Home Loan Bank advances |  | — |  |  | 862 |
Net change in other |  | 4,039 |  |  | 16,934 |
Net cash provided by operating activities |  | 88,227 |  |  | 82,548 |
Cash flows from investing activities: |  |  |  |
Net decrease in trading security |  | 609 |  |  | 578 |
Proceeds from sales of marketable equity securities |  | — |  |  | 2,880 |
Purchases of securities available for sale |  | (428,068) |  |  | (428,950) |
Proceeds from sales of securities available for sale |  | 149,994 |  |  | — |
Proceeds from maturities, calls, and prepayments of securities available for sale |  | 440,025 |  |  | 448,446 |
Purchases of securities held to maturity |  | (807) |  |  | (219,471) |
Proceeds from maturities, calls, and prepayments of securities held to maturity |  | 43,384 |  |  | 31,222 |
Net change in loans |  | (1,130,744) |  |  | 1,256,178 |
Net change in Mid-Atlantic region loans held for sale |  | — |  |  | 50,914 |
Proceeds from surrender of bank-owned life insurance |  | 1,777 |  |  | 1,578 |
Purchase of Federal Home Loan Bank stock |  | (66,486) |  |  | — |
Proceeds from redemption of Federal Home Loan Bank stock |  | 70,022 |  |  | 22,832 |
Net investment in limited partnership tax credits |  | (1,443) |  |  | (1,385) |
Purchase of premises and equipment, net |  | (730) |  |  | (1,606) |
Proceeds from sales of seasoned commercial loan portfolios |  | — |  |  | 17,480 |
Proceeds from sale of other real estate |  | — |  |  | 187 |
Cash outflows from sale of business operations and other assets |  | — |  |  | (352,814) |
Net cash (used)/provided by investing activities |  | (922,467) |  |  | 828,069 |
(continued)

9

BERKSHIRE HILLS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONCLUDED)

|  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021
Cash flows from financing activities: |  |  |  |
Net increase/(decrease) in deposits |  | (80,832) |  |  | 142,410 |
Net change in Mid-Atlantic region deposits held for sale |  | — |  |  | 20,953 |
Proceeds from Federal Home Loan Bank advances and other borrowings |  | 51,275 |  |  | — |
Repayments of Federal Home Loan Bank advances and other borrowings |  | (60,146) |  |  | (462,017) |
Proceeds from issuance of subordinated debt |  | 98,032 |  |  | — |
Repayment from calling of subordinated debt |  | (75,000) |  |  | — |
Purchase of treasury stock |  | (104,543) |  |  | (68,712) |
Exercise of stock options |  | 269 |  |  | 162 |
Common stock cash dividends paid |  | (16,414) |  |  | (18,411) |
Settlement of derivative contracts with financial institution counterparties |  | 88,705 |  |  | 41,653 |
Net cash (used) by financing activities |  | (98,654) |  |  | (343,962) |
Net change in cash and cash equivalents |  | (932,894) |  |  | 566,655 |
Cash and cash equivalents at beginning of period |  | 1,627,807 |  |  | 1,557,875 |
Cash and cash equivalents at end of period |  | $ | 694,913 |  |  | $ | 2,124,530 |
Supplemental cash flow information: |  |  |  |
Interest paid on deposits |  | $ | 16,290 |  |  | $ | 23,769 |
Interest paid on borrowed funds |  | 7,016 |  |  | 9,671 |
Income taxes (refunded) paid, net |  | 15,241 |  |  | 58 |
Other non-cash changes: |  |  |  |
Other net comprehensive income |  | $ | (185,251) |  |  | $ | (23,622) |
Reclass of seasoned loan portfolios to held-for-sale, net |  | 3,574 |  |  | 11,660 |
Reclass of Mid-Atlantic loans held-for-sale to portfolio loans, net |  | — |  |  | 29,418 |
Reclass of Mid-Atlantic deposits held-for-sale to deposits, net |  | — |  |  | 7,197 |
Reclass of held-for-sale loans to held-for-investment, net |  | 606 |  |  | — |

The accompanying notes are an integral part of these consolidated financial statements.
10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise.
The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.
These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted.
The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.
Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties.
Recently Adopted Accounting Principles
There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021.
11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Future Application of Accounting Pronouncements
In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.
In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.
NOTE 2. TRADING SECURITY
The Company holds a tax-advantaged economic development bond accounted for at fair value. The security had an amortized cost of $7.3 million and $7.9 million, and a fair value of $6.8 million and $8.4 million, at September 30, 2022 and December 31, 2021, respectively. As discussed further in Note 7 - Derivative Financial Instruments and Hedging Activities, the Company entered into a swap contract to swap-out the fixed rate of the security in exchange for a variable rate. The Company does not purchase securities with the intent of selling them in the near term, and there were no other securities in the trading portfolio at September 30, 2022 or December 31, 2021.
12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE
EQUITY SECURITIES
The following is a summary of securities available for sale, held to maturity, and marketable equity securities:

(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | 19,997 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 20,000 |  |  |
Municipal bonds and obligations |  | 66,399 |  |  | 21 |  |  | (5,854) |  |  | 60,566 |  |  | — |
Agency collateralized mortgage obligations |  | 656,132 |  |  | — |  |  | (98,619) |  |  | 557,513 |  |  | — |
Agency mortgage-backed securities |  | 660,065 |  |  | 1 |  |  | (106,329) |  |  | 553,737 |  |  | — |
Agency commercial mortgage-backed securities |  | 270,609 |  |  | — |  |  | (35,033) |  |  | 235,576 |  |  | — |
Corporate bonds |  | 45,269 |  |  | 83 |  |  | (2,451) |  |  | 42,901 |  |  | — |
Other bonds and obligations |  | 655 |  |  | 67 |  |  | (66) |  |  | 656 |  |  | — |
Total securities available for sale |  | 1,719,126 |  |  | 175 |  |  | (248,352) |  |  | 1,470,949 |  |  | — |
Securities held to maturity |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | 267,821 |  |  | 299 |  |  | (36,446) |  |  | 231,674 |  |  | 67 |
Agency collateralized mortgage obligations |  | 132,931 |  |  | — |  |  | (19,965) |  |  | 112,966 |  |  | — |
Agency mortgage-backed securities |  | 52,175 |  |  | — |  |  | (10,333) |  |  | 41,842 |  |  | — |
Agency commercial mortgage-backed securities |  | 137,177 |  |  | — |  |  | (22,659) |  |  | 114,518 |  |  | — |
Tax advantaged economic development bonds |  | 2,235 |  |  | 5 |  |  | (142) |  |  | 2,098 |  |  | 28 |
Other bonds and obligations |  | 164 |  |  | — |  |  | — |  |  | 164 |  |  | — |
Total securities held to maturity |  | 592,503 |  |  | 304 |  |  | (89,545) |  |  | 503,262 |  |  | 95 |
Marketable equity securities |  | 15,035 |  |  | — |  |  | (2,245) |  |  | 12,790 |  |  | — |
Total |  | $ | 2,326,664 |  |  | $ | 479 |  |  | $ | (340,142) |  |  | $ | 1,987,001 |  |  | $ | 95 |

(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | 59,972 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 59,973 |  |  | $ | — |
Municipal bonds and obligations |  | 71,822 |  |  | 5,355 |  |  | — |  |  | 77,177 |  |  | — |
Agency collateralized mortgage obligations |  | 693,782 |  |  | 5,566 |  |  | (11,012) |  |  | 688,336 |  |  | — |
Agency mortgage-backed securities |  | 711,154 |  |  | 2,347 |  |  | (7,642) |  |  | 705,859 |  |  | — |
Agency commercial mortgage-backed securities |  | 300,259 |  |  | 3,949 |  |  | (3,628) |  |  | 300,580 |  |  | — |
Corporate bonds |  | 44,824 |  |  | 950 |  |  | (114) |  |  | 45,660 |  |  | — |
Total securities available for sale |  | 1,881,813 |  |  | 18,168 |  |  | (22,396) |  |  | 1,877,585 |  |  | — |
Securities held to maturity |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | 281,515 |  |  | 16,151 |  |  | (693) |  |  | 296,973 |  |  | 70 |
Agency collateralized mortgage obligations |  | 149,195 |  |  | 3,203 |  |  | (3,513) |  |  | 148,885 |  |  | — |
Agency mortgage-backed securities |  | 57,327 |  |  | 95 |  |  | (1,498) |  |  | 55,924 |  |  | — |
Agency commercial mortgage-backed securities |  | 145,573 |  |  | 266 |  |  | (3,289) |  |  | 142,550 |  |  | — |
Tax advantaged economic development bonds |  | 2,728 |  |  | 26 |  |  | (15) |  |  | 2,739 |  |  | 35 |
Other bonds and obligations |  | 165 |  |  | — |  |  | — |  |  | 165 |  |  | — |
Total securities held to maturity |  | 636,503 |  |  | 19,741 |  |  | (9,008) |  |  | 647,236 |  |  | 105 |
Marketable equity securities |  | 15,689 |  |  | 67 |  |  | (303) |  |  | 15,453 |  |  | — |
Total |  | $ | 2,534,005 |  |  | $ | 37,976 |  |  | $ | (31,707) |  |  | $ | 2,540,274 |  |  | $ | 105 |

13

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three and nine months ended September 30, 2022 and 2021:

(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at June 30, 2022 | $ | 66 |  |  | $ | 28 |  |  | $ | 94 |
Provision for credit losses | 1 |  |  | — |  |  | 1 |
Balance at September 30, 2022 | $ | 67 |  |  | $ | 28 |  |  | $ | 95 |

(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at June 30, 2021 | $ | 90 |  |  | $ | 40 |  |  | $ | 130 |
(Benefit)/provision for credit losses | (3) |  |  | (2) |  |  | (5) |
Balance at September 30, 2021 | $ | 87 |  |  | $ | 38 |  |  | $ | 125 |

(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at December 31, 2021 | $ | 70 |  |  | $ | 35 |  |  | $ | 105 |
(Benefit)/provision for credit losses | (3) |  |  | (7) |  |  | (10) |
Balance at September 30, 2022 | $ | 67 |  |  | $ | 28 |  |  | $ | 95 |

(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at December 31, 2020 | $ | 64 |  |  | $ | 40 |  |  | $ | 104 |
Provision/(benefit) for credit losses | 23 |  |  | (2) |  |  | 21 |
Balance at September 30, 2021 | $ | 87 |  |  | $ | 38 |  |  | $ | 125 |

Credit Quality Information
The Company monitors the credit quality of held to maturity securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization.
As of September 30, 2022, none of the Company's investment securities were delinquent or in non-accrual status.
14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at September 30, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.

|  | Available for sale |  | Held to maturity
|  | Amortized |  | Fair |  | Amortized |  | Fair
(In thousands) |  | Cost |  | Value |  | Cost |  | Value
Within 1 year |  | $ | 20,441 |  |  | $ | 20,444 |  |  | $ | 1,711 |  |  | $ | 1,710 |
Over 1 year to 5 years |  | 9,392 |  |  | 9,224 |  |  | 2,326 |  |  | 2,313 |
Over 5 years to 10 years |  | 48,894 |  |  | 46,318 |  |  | 23,841 |  |  | 23,500 |
Over 10 years |  | 53,593 |  |  | 48,137 |  |  | 242,342 |  |  | 206,413 |
Total bonds and obligations |  | 132,320 |  |  | 124,123 |  |  | 270,220 |  |  | 233,936 |
Mortgage-backed securities |  | 1,586,806 |  |  | 1,346,826 |  |  | 322,283 |  |  | 269,326 |
Total |  | $ | 1,719,126 |  |  | $ | 1,470,949 |  |  | $ | 592,503 |  |  | $ | 503,262 |

During the three and nine months ended September 30, 2022, purchases of AFS securities totaled $41.4 million and $428.1 million, respectively. During the three months ended September 30, 2022, there were no sales of AFS securities. During the nine months ended September 30, 2022, sales of AFS securities totaled $150 million. During the three and nine months ended September 30, 2021, purchases of AFS securities totaled $160.0 million and $429.0 million, respectively. During the three and nine months ended September 30, 2021, there were no sales of AFS securities. During the three months ended September 30, 2022, there were no gross gains or gross losses. During the nine months ended September 30, 2022, gross gains totaled $6 thousand and there were no gross losses. During the three and nine months ended September 30, 2021, there were no gross gains or losses on AFS securities. These gains and losses are included in gain/(loss) on securities, net on the consolidated statements of income.
15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:

|  | Less Than Twelve Months |  | Over Twelve Months |  | Total
|  | Gross |  |  |  | Gross |  |  |  | Gross |  |
|  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair
(In thousands) |  | Losses |  | Value |  | Losses |  | Value |  | Losses |  | Value
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal bonds and obligations |  | 5,854 |  |  | 52,279 |  |  | — |  |  | — |  |  | 5,854 |  |  | 52,279 |
Agency collateralized mortgage obligations |  | 26,129 |  |  | 293,758 |  |  | 72,490 |  |  | 263,754 |  |  | 98,619 |  |  | 557,512 |
Agency mortgage-backed securities |  | 48,764 |  |  | 314,987 |  |  | 57,565 |  |  | 238,651 |  |  | 106,329 |  |  | 553,638 |
Agency commercial mortgage-backed securities |  | 19,323 |  |  | 154,763 |  |  | 15,710 |  |  | 80,799 |  |  | 35,033 |  |  | 235,562 |
Corporate bonds |  | 1,627 |  |  | 34,126 |  |  | 824 |  |  | 7,851 |  |  | 2,451 |  |  | 41,977 |
Other bonds and obligations |  | — |  |  | — |  |  | 66 |  |  | 295 |  |  | 66 |  |  | 295 |
Total securities available for sale |  | $ | 101,697 |  |  | $ | 849,913 |  |  | $ | 146,655 |  |  | $ | 591,350 |  |  | $ | 248,352 |  |  | $ | 1,441,263 |
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | $ | 22,075 |  |  | $ | 166,539 |  |  | $ | 14,371 |  |  | $ | 23,286 |  |  | $ | 36,446 |  |  | $ | 189,825 |
Agency collateralized mortgage obligations |  | 2,537 |  |  | 52,558 |  |  | 17,428 |  |  | 60,408 |  |  | 19,965 |  |  | 112,966 |
Agency mortgage-backed securities |  | 340 |  |  | 2,410 |  |  | 9,993 |  |  | 39,432 |  |  | 10,333 |  |  | 41,842 |
Agency commercial mortgage-backed securities |  | 4,156 |  |  | 25,094 |  |  | 18,503 |  |  | 89,423 |  |  | 22,659 |  |  | 114,517 |
Tax advantaged economic development bonds |  | 1 |  |  | 213 |  |  | 141 |  |  | 1,023 |  |  | 142 |  |  | 1,236 |
Total securities held to maturity |  | 29,109 |  |  | 246,814 |  |  | 60,436 |  |  | 213,572 |  |  | 89,545 |  |  | 460,386 |
Total |  | $ | 130,806 |  |  | $ | 1,096,727 |  |  | $ | 207,091 |  |  | $ | 804,922 |  |  | $ | 337,897 |  |  | $ | 1,901,649 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Agency collateralized mortgage obligations |  | $ | 9,626 |  |  | $ | 375,132 |  |  | $ | 1,386 |  |  | $ | 27,025 |  |  | $ | 11,012 |  |  | $ | 402,157 |
Agency mortgage-backed securities |  | 3,179 |  |  | 222,887 |  |  | 4,463 |  |  | 175,941 |  |  | 7,642 |  |  | 398,828 |
Agency commercial mortgage-backed securities |  | 1,609 |  |  | 103,354 |  |  | 2,019 |  |  | 49,313 |  |  | 3,628 |  |  | 152,667 |
Corporate bonds |  | 114 |  |  | 11,115 |  |  | — |  |  | — |  |  | 114 |  |  | 11,115 |
Total securities available for sale |  | $ | 14,528 |  |  | $ | 712,488 |  |  | $ | 7,868 |  |  | $ | 252,279 |  |  | $ | 22,396 |  |  | $ | 964,767 |
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | $ | 693 |  |  | $ | 36,981 |  |  | $ | — |  |  | $ | — |  |  | $ | 693 |  |  | $ | 36,981 |
Agency collateralized mortgage obligations |  | 1,808 |  |  | 49,308 |  |  | 1,705 |  |  | 36,212 |  |  | 3,513 |  |  | 85,520 |
Agency mortgage-backed securities |  | 839 |  |  | 26,656 |  |  | 659 |  |  | 26,025 |  |  | 1,498 |  |  | 52,681 |
Agency commercial mortgage-backed securities |  | 1,255 |  |  | 80,406 |  |  | 2,034 |  |  | 51,654 |  |  | 3,289 |  |  | 132,060 |
Tax advantaged economic development bonds |  | 15 |  |  | 1,255 |  |  | — |  |  | — |  |  | 15 |  |  | 1,255 |
Total securities held to maturity |  | 4,610 |  |  | 194,606 |  |  | 4,398 |  |  | 113,891 |  |  | 9,008 |  |  | 308,497 |
Total |  | $ | 19,138 |  |  | $ | 907,094 |  |  | $ | 12,266 |  |  | $ | 366,170 |  |  | $ | 31,404 |  |  | $ | 1,273,264 |

16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Debt Securities
The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of September 30, 2022, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover.
The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at September 30, 2022:
AFS municipal bonds and obligations
At September 30, 2022, 76 of the 95 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 10.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.
AFS collateralized mortgage obligations
At September 30, 2022, 245 of the 248 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 15.0% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.
AFS commercial and residential mortgage-backed securities
At September 30, 2022, 136 of the 139 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 15.2% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.
AFS corporate bonds
At September 30, 2022, 14 of the 15 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. Aggregate unrealized losses represents 5.5% of the amortized cost of the bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.
AFS other bonds and obligations
At September 30, 2022, 2 of the 3 securities in the Company’s portfolio of AFS other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represents 18.3% of the amortized cost of the bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.
17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
HTM municipal bonds and obligations
At September 30, 2022, 148 of the 192 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 16.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.
HTM collateralized mortgage obligations
At September 30, 2022, 13 of the 13 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 15.0% of the amortized cost of the securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.
HTM commercial and residential mortgage-backed securities
At September 30, 2022, 17 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 17.4% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.
HTM tax-advantaged economic development bonds
At September 30, 2022, 2 of the 3 securities in the Company’s portfolio of tax-advantaged economic development bonds was in unrealized loss positions. Aggregate unrealized losses represented 10.3% of the amortized cost of the security in unrealized loss positions. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.
18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES
The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:

(In thousands) |  | September 30, 2022 |  | December 31, 2021
Construction |  | $ | 367,997 |  |  | $ | 324,282 |
Commercial multifamily |  | 612,890 |  |  | 515,817 |
Commercial real estate owner occupied |  | 632,001 |  |  | 606,477 |
Commercial real estate non-owner occupied |  | 2,285,770 |  |  | 2,156,929 |
Commercial and industrial |  | 1,395,172 |  |  | 1,284,429 |
Residential real estate |  | 2,128,039 |  |  | 1,489,248 |
Home equity |  | 234,027 |  |  | 252,366 |
Consumer other |  | 287,585 |  |  | 196,299 |
Total loans |  | $ | 7,943,481 |  |  | $ | 6,825,847 |
Allowance for credit losses |  | 96,013 |  |  | 106,094 |
Net loans |  | $ | 7,847,468 |  |  | $ | 6,719,753 |

As of September 30, 2022 and December 31, 2021, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $10.3 million and $29.9 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial.
During the three and nine months ended September 30, 2022, the Company reclassified $3.6 million of commercial real estate non-owner occupied loans to held for sale, reflecting its intent to sell these loans. During the three months ended September 30, 2021, there were no loans reclassified to held for sale. During the nine months ended September 30, 2021, the Company reclassified $11.7 million of commercial loans to held for sale, reflecting its intent to sell these loans. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet.
19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Risk characteristics relevant to each portfolio segment are as follows:
Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.
Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.
Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.
Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Allowance for Credit Losses for Loans
The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon:
•the existence and growth of concentrations of credit;
•the volume and severity of past due financial assets, including nonaccrual assets;
•the institutions lending and credit review as well as the experience and ability of relevant management and staff and;
•the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters;
•the effect of other economic factors such as economic stimulus and customer forbearance programs.
The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheet.
20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company’s activity in the allowance for credit losses for loans for the three and nine months ended September 30, 2022 and September 30, 2021 was as follows:

(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Three months ended September 30, 2022
Construction |  | $ | 1,710 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (479) |  |  | $ | 1,231 |
Commercial multifamily |  | 4,621 |  |  |  |  |  |  | (94) |  |  | 112 |  |  | (2,919) |  |  | 1,720 |
Commercial real estate owner occupied |  | 10,687 |  |  |  |  |  |  | (176) |  |  | 256 |  |  | (582) |  |  | 10,185 |
Commercial real estate non-owner occupied |  | 26,166 |  |  |  |  |  |  | (1,012) |  |  | 153 |  |  | 4,114 |  |  | 29,421 |
Commercial and industrial |  | 22,914 |  |  |  |  |  |  | (5,545) |  |  | 616 |  |  | 650 |  |  | 18,635 |
Residential real estate |  | 16,411 |  |  |  |  |  |  | (102) |  |  | 131 |  |  | 3,398 |  |  | 19,838 |
Home equity |  | 2,828 |  |  |  |  |  |  | (9) |  |  | 9 |  |  | (407) |  |  | 2,421 |
Consumer other |  | 13,684 |  |  |  |  |  |  | (486) |  |  | 140 |  |  | (776) |  |  | 12,562 |
Total allowance for credit losses |  | $ | 99,021 |  |  |  |  |  |  | $ | (7,424) |  |  | $ | 1,417 |  |  | $ | 2,999 |  |  | $ | 96,013 |

(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Three months ended September 30, 2021
Construction |  | $ | 3,919 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 714 |  |  | $ | 4,633 |
Commercial multifamily |  | 7,197 |  |  |  |  |  |  | — |  |  | — |  |  | (46) |  |  | 7,151 |
Commercial real estate owner occupied |  | 13,242 |  |  |  |  |  |  | (84) |  |  | 32 |  |  | (342) |  |  | 12,848 |
Commercial real estate non-owner occupied |  | 30,315 |  |  |  |  |  |  | (1,676) |  |  | 267 |  |  | 2,870 |  |  | 31,776 |
Commercial and industrial |  | 28,225 |  |  |  |  |  |  | (1,279) |  |  | 1,373 |  |  | (2,385) |  |  | 25,934 |
Residential real estate |  | 23,643 |  |  |  |  |  |  | (903) |  |  | 312 |  |  | (107) |  |  | 22,945 |
Home equity |  | 5,432 |  |  |  |  |  |  | (12) |  |  | 80 |  |  | (845) |  |  | 4,655 |
Consumer other |  | 7,071 |  |  |  |  |  |  | (380) |  |  | 137 |  |  | (3,854) |  |  | 2,974 |
Total allowance for credit losses |  | $ | 119,044 |  |  |  |  |  |  | $ | (4,334) |  |  | $ | 2,201 |  |  | $ | (3,995) |  |  | $ | 112,916 |

(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Nine months ended September 30, 2022
Construction |  | $ | 3,206 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (1,975) |  |  | $ | 1,231 |
Commercial multifamily |  | 6,120 |  |  |  |  |  |  | (94) |  |  | 112 |  |  | (4,418) |  |  | 1,720 |
Commercial real estate owner occupied |  | 12,752 |  |  |  |  |  |  | (603) |  |  | 562 |  |  | (2,526) |  |  | 10,185 |
Commercial real estate non-owner occupied |  | 32,106 |  |  |  |  |  |  | (5,895) |  |  | 1,464 |  |  | 1,746 |  |  | 29,421 |
Commercial and industrial |  | 22,584 |  |  |  |  |  |  | (6,951) |  |  | 2,485 |  |  | 517 |  |  | 18,635 |
Residential real estate |  | 22,406 |  |  |  |  |  |  | (480) |  |  | 719 |  |  | (2,807) |  |  | 19,838 |
Home equity |  | 4,006 |  |  |  |  |  |  | (9) |  |  | 255 |  |  | (1,831) |  |  | 2,421 |
Consumer other |  | 2,914 |  |  |  |  |  |  | (1,031) |  |  | 375 |  |  | 10,304 |  |  | 12,562 |
Total allowance for credit losses |  | $ | 106,094 |  |  |  |  |  |  | $ | (15,063) |  |  | $ | 5,972 |  |  | $ | (990) |  |  | $ | 96,013 |

21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Nine months ended September 30, 2021
Construction |  | $ | 5,111 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (478) |  |  | $ | 4,633 |
Commercial multifamily |  | 5,916 |  |  |  |  |  |  | (239) |  |  | 157 |  |  | 1,317 |  |  | 7,151 |
Commercial real estate owner occupied |  | 12,380 |  |  |  |  |  |  | (686) |  |  | 83 |  |  | 1,071 |  |  | 12,848 |
Commercial real estate non-owner occupied |  | 35,850 |  |  |  |  |  |  | (10,896) |  |  | 571 |  |  | 6,251 |  |  | 31,776 |
Commercial and industrial |  | 25,013 |  |  |  |  |  |  | (8,184) |  |  | 3,284 |  |  | 5,821 |  |  | 25,934 |
Residential real estate |  | 28,491 |  |  |  |  |  |  | (1,501) |  |  | 1,417 |  |  | (5,462) |  |  | 22,945 |
Home equity |  | 6,482 |  |  |  |  |  |  | (253) |  |  | 119 |  |  | (1,693) |  |  | 4,655 |
Consumer other |  | 8,059 |  |  |  |  |  |  | (1,283) |  |  | 546 |  |  | (4,348) |  |  | 2,974 |
Total allowance for credit losses |  | $ | 127,302 |  |  |  |  |  |  | $ | (23,042) |  |  | $ | 6,177 |  |  | $ | 2,479 |  |  | $ | 112,916 |

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three and nine months ended September 30, 2022 and 2021 was as follows:

|  | Three Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |
Balance at beginning of period |  | $ | 7,043 |  |  | $ | 7,829 |  |
Expense for credit losses |  | 700 |  |  | — |  |
Balance at end of period |  | $ | 7,743 |  |  | $ | 7,829 |  |

|  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |
Balance at beginning of period |  | $ | 7,043 |  |  | $ | 7,629 |  |
Expense for credit losses |  | 700 |  |  | 200 |  |
Balance at end of period |  | $ | 7,743 |  |  | $ | 7,829 |  |

Credit Quality Information
The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations.
The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status.
22

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the Company’s loans by risk category:

| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of September 30, 2022
Construction |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 117,627 |  | $ | 129,188 |  | $ | 31,541 |  | $ | 65,388 |  | $ | 2,331 |  | $ | 2,103 |  | $ | — |  | $ | — |  | $ | 348,178 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | — |  | 19,819 |  | — |  | — |  | — |  | 19,819 |
Total | $ | 117,627 |  | $ | 129,188 |  | $ | 31,541 |  | $ | 65,388 |  | $ | 22,150 |  | $ | 2,103 |  | $ | — |  | $ | — |  | $ | 367,997 |
Commercial multifamily:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 194,494 |  | $ | 61,247 |  | $ | 27,732 |  | $ | 94,937 |  | $ | 68,290 |  | $ | 157,611 |  | $ | 400 |  | $ | — |  | $ | 604,711 |
Special Mention | — |  | — |  | 2,646 |  | — |  | 5,533 |  | — |  | — |  | — |  | 8,179 |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 194,494 |  | $ | 61,247 |  | $ | 30,378 |  | $ | 94,937 |  | $ | 73,823 |  | $ | 157,611 |  | $ | 400 |  | $ | — |  | $ | 612,890 |
Commercial real estate owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 101,409 |  | $ | 133,212 |  | $ | 60,422 |  | $ | 84,434 |  | $ | 76,062 |  | $ | 164,207 |  | $ | 3,169 |  | $ | — |  | $ | 622,915 |
Special Mention | — |  | — |  | — |  | — |  | — |  | 114 |  | — |  | — |  | 114 |
Substandard | 1,033 |  | 122 |  | 31 |  | 366 |  | 1,311 |  | 6,109 |  | — |  | — |  | 8,972 |
Total | $ | 102,442 |  | $ | 133,334 |  | $ | 60,453 |  | $ | 84,800 |  | $ | 77,373 |  | $ | 170,430 |  | $ | 3,169 |  | $ | — |  | $ | 632,001 |
Commercial real estate non-owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 421,349 |  | $ | 445,515 |  | $ | 168,958 |  | $ | 291,942 |  | $ | 296,356 |  | $ | 568,691 |  | $ | 18,051 |  | $ | — |  | $ | 2,210,862 |
Special Mention | — |  | — |  | — |  | 13,686 |  | — |  | 31,073 |  | — |  | — |  | 44,759 |
Substandard | — |  | — |  | 7,333 |  | — |  | 16,081 |  | 6,735 |  | — |  | — |  | 30,149 |
Total | $ | 421,349 |  | $ | 445,515 |  | $ | 176,291 |  | $ | 305,628 |  | $ | 312,437 |  | $ | 606,499 |  | $ | 18,051 |  | $ | — |  | $ | 2,285,770 |
Commercial and industrial:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 175,428 |  | $ | 159,122 |  | $ | 81,452 |  | $ | 75,464 |  | $ | 95,370 |  | $ | 109,382 |  | $ | 635,314 |  | $ | — |  | $ | 1,331,532 |
Special Mention | — |  | — |  | — |  | 667 |  | 12,558 |  | — |  | — |  | — |  | 13,225 |
Substandard | 91 |  | 559 |  | 4,215 |  | 9,044 |  | 1,420 |  | 3,297 |  | 31,711 |  | — |  | 50,337 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | 78 |  | — |  | 78 |
Total | $ | 175,519 |  | $ | 159,681 |  | $ | 85,667 |  | $ | 85,175 |  | $ | 109,348 |  | $ | 112,679 |  | $ | 667,103 |  | $ | — |  | $ | 1,395,172 |
Residential real estate
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 770,095 |  | $ | 281,469 |  | $ | 100,116 |  | $ | 73,592 |  | $ | 147,992 |  | $ | 736,711 |  | $ | 286 |  | $ | — |  | $ | 2,110,261 |
Special Mention | — |  | — |  | 158 |  | — |  | — |  | 1,942 |  | — |  | — |  | 2,100 |
Substandard | — |  | 3,254 |  | — |  | 274 |  | 2,086 |  | 10,064 |  | — |  | — |  | 15,678 |
Total | $ | 770,095 |  | $ | 284,723 |  | $ | 100,274 |  | $ | 73,866 |  | $ | 150,078 |  | $ | 748,717 |  | $ | 286 |  | $ | — |  | $ | 2,128,039 |

23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of December 31, 2021
Construction |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 71,784 |  | $ | 52,725 |  | $ | 117,784 |  | $ | 66,950 |  | $ | 3,839 |  | $ | 1,721 |  | $ | 50 |  | $ | — |  | $ | 314,853 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | 9,429 |  | — |  | — |  | — |  | — |  | 9,429 |
Total | $ | 71,784 |  | $ | 52,725 |  | $ | 117,784 |  | $ | 76,379 |  | $ | 3,839 |  | $ | 1,721 |  | $ | 50 |  | $ | — |  | $ | 324,282 |
Commercial multifamily:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 63,630 |  | $ | 28,172 |  | $ | 98,455 |  | $ | 59,720 |  | $ | 76,699 |  | $ | 176,020 |  | $ | 457 |  | $ | — |  | $ | 503,153 |
Special Mention | — |  | 2,700 |  | — |  | 5,598 |  | — |  | — |  | — |  | — |  | 8,298 |
Substandard | — |  | — |  | — |  | — |  | — |  | 4,230 |  | 136 |  | — |  | 4,366 |
Total | $ | 63,630 |  | $ | 30,872 |  | $ | 98,455 |  | $ | 65,318 |  | $ | 76,699 |  | $ | 180,250 |  | $ | 593 |  | $ | — |  | $ | 515,817 |
Commercial real estate owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 154,434 |  | $ | 50,236 |  | $ | 85,687 |  | $ | 91,316 |  | $ | 45,995 |  | $ | 157,346 |  | $ | 3,206 |  | $ | — |  | $ | 588,220 |
Special Mention | — |  | 525 |  | 869 |  | 1,668 |  | 1,405 |  | 1,157 |  | — |  | — |  | 5,624 |
Substandard | — |  | — |  | 2,113 |  | 1,593 |  | 838 |  | 8,089 |  | — |  | — |  | 12,633 |
Total | $ | 154,434 |  | $ | 50,761 |  | $ | 88,669 |  | $ | 94,577 |  | $ | 48,238 |  | $ | 166,592 |  | $ | 3,206 |  | $ | — |  | $ | 606,477 |
Commercial real estate non-owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 426,086 |  | $ | 176,172 |  | $ | 296,985 |  | $ | 349,947 |  | $ | 204,043 |  | $ | 585,044 |  | $ | 19,511 |  | $ | — |  | $ | 2,057,788 |
Special Mention | — |  | 221 |  | 3,472 |  | 7,632 |  | 2,302 |  | 27,268 |  | — |  | — |  | 40,895 |
Substandard | — |  | 7,588 |  | — |  | 2,784 |  | 33,472 |  | 14,303 |  | 99 |  | — |  | 58,246 |
Total | $ | 426,086 |  | $ | 183,981 |  | $ | 300,457 |  | $ | 360,363 |  | $ | 239,817 |  | $ | 626,615 |  | $ | 19,610 |  | $ | — |  | $ | 2,156,929 |
Commercial and industrial:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 187,257 |  | $ | 130,520 |  | $ | 114,153 |  | $ | 156,443 |  | $ | 54,190 |  | $ | 136,837 |  | $ | 424,393 |  | $ | — |  | $ | 1,203,793 |
Special Mention | 661 |  | 1,691 |  | 10,824 |  | 5,092 |  | 1,433 |  | 488 |  | 22,468 |  | — |  | 42,657 |
Substandard | 211 |  | 2,494 |  | 9,609 |  | 3,145 |  | 2,020 |  | 2,330 |  | 17,935 |  | — |  | 37,744 |
Doubtful | — |  | — |  | — |  | — |  | — |  | 15 |  | 220 |  | — |  | 235 |
Total | $ | 188,129 |  | $ | 134,705 |  | $ | 134,586 |  | $ | 164,680 |  | $ | 57,643 |  | $ | 139,670 |  | $ | 465,016 |  | $ | — |  | $ | 1,284,429 |
Residential real estate
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 214,306 |  | $ | 114,536 |  | $ | 86,997 |  | $ | 169,537 |  | $ | 189,980 |  | $ | 697,401 |  | $ | 293 |  | $ | — |  | $ | 1,473,050 |
Special Mention | — |  | — |  | — |  | 120 |  | 502 |  | 1,557 |  | — |  | — |  | 2,179 |
Substandard | 1,239 |  | — |  | 142 |  | 1,849 |  | 2,161 |  | 8,628 |  | — |  | — |  | 14,019 |
Total | $ | 215,545 |  | $ | 114,536 |  | $ | 87,139 |  | $ | 171,506 |  | $ | 192,643 |  | $ | 707,586 |  | $ | 293 |  | $ | — |  | $ | 1,489,248 |

24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:

| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of September 30, 2022
Home equity: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | 117 |  | $ | 457 |  | $ | — |  | $ | — |  | $ | 19 |  | $ | 231,218 |  | $ | — |  | $ | 231,811 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | 2,216 |  | — |  | 2,216 |
Total | $ | — |  | $ | 117 |  | $ | 457 |  | $ | — |  | $ | — |  | $ | 19 |  | $ | 233,434 |  | $ | — |  | $ | 234,027 |
Consumer other: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 159,609 |  | $ | 30,603 |  | $ | 8,901 |  | $ | 14,548 |  | $ | 33,215 |  | $ | 30,817 |  | $ | 8,035 |  | $ | — |  | $ | 285,728 |
Nonperforming | 279 |  | 165 |  | 20 |  | 271 |  | 562 |  | 553 |  | 7 |  | — |  | 1,857 |
Total | $ | 159,888 |  | $ | 30,768 |  | $ | 8,921 |  | $ | 14,819 |  | $ | 33,777 |  | $ | 31,370 |  | $ | 8,042 |  | $ | — |  | $ | 287,585 |

| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of December 31, 2021
Home equity: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 125 |  | $ | 469 |  | $ | — |  | $ | — |  | $ | — |  | $ | 24 |  | $ | 249,590 |  | $ | — |  | $ | 250,208 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | 2,158 |  | — |  | 2,158 |
Total | $ | 125 |  | $ | 469 |  | $ | — |  | $ | — |  | $ | — |  | $ | 24 |  | $ | 251,748 |  | $ | — |  | $ | 252,366 |
Consumer other: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 37,994 |  | $ | 11,189 |  | $ | 21,548 |  | $ | 55,577 |  | $ | 30,632 |  | $ | 28,797 |  | $ | 7,505 |  | $ | — |  | $ | 193,242 |
Nonperforming | 8 |  | 46 |  | 290 |  | 797 |  | 746 |  | 1,139 |  | 31 |  | — |  | 3,057 |
Total | $ | 38,002 |  | $ | 11,235 |  | $ | 21,838 |  | $ | 56,374 |  | $ | 31,378 |  | $ | 29,936 |  | $ | 7,536 |  | $ | — |  | $ | 196,299 |

25

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of loans by past due status at September 30, 2022 and December 31, 2021:

(In thousands) |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Current |  | Total Loans
September 30, 2022
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 367,997 |  |  | $ | 367,997 |
Commercial multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 612,890 |  |  | 612,890 |
Commercial real estate owner occupied |  | 391 |  |  | 114 |  |  | 3,831 |  |  | 4,336 |  |  | 627,665 |  |  | 632,001 |
Commercial real estate non-owner occupied |  | 368 |  |  | 3 |  |  | 206 |  |  | 577 |  |  | 2,285,193 |  |  | 2,285,770 |
Commercial and industrial |  | 2,844 |  |  | 1,192 |  |  | 22,986 |  |  | 27,022 |  |  | 1,368,150 |  |  | 1,395,172 |
Residential real estate |  | 4,566 |  |  | 2,281 |  |  | 13,038 |  |  | 19,885 |  |  | 2,108,154 |  |  | 2,128,039 |
Home equity |  | 170 |  |  | 206 |  |  | 2,216 |  |  | 2,592 |  |  | 231,435 |  |  | 234,027 |
Consumer other |  | 1,720 |  |  | 809 |  |  | 1,862 |  |  | 4,391 |  |  | 283,194 |  |  | 287,585 |
Total |  | $ | 10,059 |  |  | $ | 4,605 |  |  | $ | 44,139 |  |  | $ | 58,803 |  |  | $ | 7,884,678 |  |  | $ | 7,943,481 |

(In thousands) |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Current |  | Total Loans
December 31, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 324,282 |  |  | $ | 324,282 |
Commercial multifamily |  | 82 |  |  | 306 |  |  | 187 |  |  | 575 |  |  | 515,242 |  |  | 515,817 |
Commercial real estate owner occupied |  | — |  |  | 400 |  |  | 4,221 |  |  | 4,621 |  |  | 601,856 |  |  | 606,477 |
Commercial real estate non-owner occupied |  | 25,420 |  |  | 653 |  |  | 9,049 |  |  | 35,122 |  |  | 2,121,807 |  |  | 2,156,929 |
Commercial and industrial |  | 2,700 |  |  | 709 |  |  | 6,836 |  |  | 10,245 |  |  | 1,274,184 |  |  | 1,284,429 |
Residential real estate |  | 5,529 |  |  | 2,015 |  |  | 13,264 |  |  | 20,808 |  |  | 1,468,440 |  |  | 1,489,248 |
Home equity |  | 258 |  |  | 108 |  |  | 2,158 |  |  | 2,524 |  |  | 249,842 |  |  | 252,366 |
Consumer other |  | 1,363 |  |  | 320 |  |  | 2,882 |  |  | 4,565 |  |  | 191,734 |  |  | 196,299 |
Total |  | $ | 35,352 |  |  | $ | 4,511 |  |  | $ | 38,597 |  |  | $ | 78,460 |  |  | $ | 6,747,387 |  |  | $ | 6,825,847 |

26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of September 30, 2022 and December 31, 2021:

(In thousands) |  |  |  | Nonaccrual Amortized Cost |  |  |  | Nonaccrual With No Related Allowance |  | Past Due 90 Days or Greater and Accruing |  | Interest Income Recognized on Nonaccrual
At or for the three months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Commercial real estate owner occupied |  |  |  | 2,722 |  |  |  |  | 1,987 |  |  | 1,109 |  |  | — |
Commercial real estate non-owner occupied |  |  |  | 206 |  |  |  |  | 80 |  |  | — |  |  | — |
Commercial and industrial |  |  |  | 20,977 |  |  |  |  | 18,292 |  |  | 2,009 |  |  | — |
Residential real estate |  |  |  | 10,703 |  |  |  |  | 6,355 |  |  | 2,335 |  |  | — |
Home equity |  |  |  | 1,725 |  |  |  |  | 518 |  |  | 491 |  |  | — |
Consumer other |  |  |  | 1,520 |  |  |  |  | 2 |  |  | 342 |  |  | — |
Total |  |  |  | $ | 37,853 |  |  |  |  | $ | 27,234 |  |  | $ | 6,286 |  |  | $ | — |

The commercial and industrial loans nonaccrual amortized cost as of September 30, 2022 included medallion loans with a fair value of $0.8 million and a contractual balance of $13.4 million.

(In thousands) |  |  |  | Nonaccrual Amortized Cost |  |  |  | Nonaccrual With No Related Allowance |  | Past Due 90 Days or Greater and Accruing |  | Interest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  |  |  | 187 |  |  |  |  | 187 |  |  | — |  |  | — |
Commercial real estate owner occupied |  |  |  | 4,221 |  |  |  |  | 2,413 |  |  | — |  |  | — |
Commercial real estate non-owner occupied |  |  |  | 8,877 |  |  |  |  | 8,412 |  |  | 172 |  |  | — |
Commercial and industrial |  |  |  | 6,747 |  |  |  |  | 1,506 |  |  | 89 |  |  | — |
Residential real estate |  |  |  | 10,698 |  |  |  |  | 6,511 |  |  | 2,566 |  |  | — |
Home equity |  |  |  | 1,901 |  |  |  |  | 141 |  |  | 257 |  |  | — |
Consumer other |  |  |  | 2,695 |  |  |  |  | 4 |  |  | 187 |  |  | — |
Total |  |  |  | $ | 35,326 |  |  |  |  | $ | 19,174 |  |  | $ | 3,271 |  |  | $ | — |

The commercial and industrial loans nonaccrual amortized cost as of December 31, 2021 included medallion loans with a fair value of $1.2 million and a contractual balance of $31.4 million.
The following table summarizes information about total loans rated Special Mention or lower at September 30, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands) |  | September 30, 2022 |  | December 31, 2021 |  |
Non-Accrual |  | $ | 37,853 |  |  | $ | 35,326 |  |  |
Substandard Accruing |  | 88,649 |  |  | 106,560 |  |  |
Total Classified |  | 126,502 |  |  | 141,886 |  |  |
Special Mention |  | 69,530 |  |  | 100,071 |  |  |
Total Criticized |  | $ | 196,032 |  |  | $ | 241,957 |  |  |

27

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:

|  | Type of Collateral
(In thousands) |  | Real Estate |  |  |  | Investment Securities/Cash |  |  |  | Other
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Construction |  | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | — |
Commercial multifamily |  |  |  |  |  | — |  |  |  |  | — |
Commercial real estate owner occupied |  | 3,380 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate non-owner occupied |  | 394 |  |  |  |  | — |  |  |  |  | — |
Commercial and industrial |  | 461 |  |  |  |  | — |  |  |  |  | 19,113 |
Residential real estate |  | 5,537 |  |  |  |  | — |  |  |  |  | — |
Home equity |  | 638 |  |  |  |  | — |  |  |  |  | — |
Consumer other |  | 4 |  |  |  |  | — |  |  |  |  | — |
Total loans |  | $ | 10,414 |  |  |  |  | $ | — |  |  |  |  | $ | 19,113 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 9,429 |  |  |  |  | $ | — |  |  |  |  | $ | — |
Commercial multifamily |  | 188 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate owner occupied |  | 4,466 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate non-owner occupied |  | 9,501 |  |  |  |  | — |  |  |  |  | — |
Commercial and industrial |  | 526 |  |  |  |  | — |  |  |  |  | 1,040 |
Residential real estate |  | 7,035 |  |  |  |  | — |  |  |  |  | — |
Home equity |  | 262 |  |  |  |  | — |  |  |  |  | — |
Consumer other |  | 2 |  |  |  |  | — |  |  |  |  | — |
Total loans |  | $ | 31,409 |  |  |  |  | $ | — |  |  |  |  | $ | 1,040 |

28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Troubled Debt Restructuring Loans
The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan.
The following table presents activity in TDRs for the three and nine months ended September 30, 2022 and September 30, 2021:

(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Three months ended September 30, 2022
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 677 |  |  | (7) |  |  | — |  |  | (175) |  |  | — |  |  | 495 |
Commercial real estate owner occupied |  | 2,701 |  |  | (28) |  |  | — |  |  | (16) |  |  | — |  |  | 2,657 |
Commercial real estate non-owner occupied |  | 986 |  |  | (13) |  |  | — |  |  | — |  |  | — |  |  | 973 |
Commercial and industrial |  | 4,651 |  |  | (426) |  |  | — |  |  | (15) |  |  | — |  |  | 4,210 |
Residential real estate |  | 1,019 |  |  | (17) |  |  | — |  |  | — |  |  | — |  |  | 1,002 |
Home equity |  | 162 |  |  | (62) |  |  | — |  |  | — |  |  | — |  |  | 100 |
Consumer other |  | 30 |  |  | (2) |  |  | — |  |  | — |  |  | 545 |  |  | 573 |
Total |  | $ | 10,226 |  |  | $ | (555) |  |  | $ | — |  |  | $ | (206) |  |  | $ | 545 |  |  | $ | 10,010 |

(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Three months ended September 30, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 728 |  |  | (11) |  |  | — |  |  | — |  |  | — |  |  | 717 |
Commercial real estate owner occupied |  | 2,962 |  |  | (33) |  |  | — |  |  | — |  |  | — |  |  | 2,929 |
Commercial real estate non-owner occupied |  | 24,488 |  |  | (67) |  |  | — |  |  | (10,967) |  |  | — |  |  | 13,454 |
Commercial and industrial |  | 6,810 |  |  | (387) |  |  | — |  |  | (3,105) |  |  | 283 |  |  | 3,601 |
Residential real estate |  | 1,305 |  |  | (160) |  |  | — |  |  | — |  |  | — |  |  | 1,145 |
Home equity |  | 127 |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 124 |
Consumer other |  | 37 |  |  | (2) |  |  | — |  |  | (1) |  |  | — |  |  | 34 |
Total |  | $ | 36,457 |  |  | $ | (663) |  |  | $ | — |  |  | $ | (14,073) |  |  | $ | 283 |  |  | $ | 22,004 |

29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Nine months ended September 30, 2022
Construction |  | $ | 9,429 |  |  | $ | — |  |  | $ | — |  |  | $ | (9,429) |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 703 |  |  | (33) |  |  | — |  |  | (175) |  |  | — |  |  | 495 |
Commercial real estate owner occupied |  | 2,733 |  |  | (60) |  |  | — |  |  | (16) |  |  | — |  |  | 2,657 |
Commercial real estate non-owner occupied |  | 9,310 |  |  | (25) |  |  | — |  |  | (8,312) |  |  | — |  |  | 973 |
Commercial and industrial |  | 3,656 |  |  | (768) |  |  | — |  |  | (164) |  |  | 1,486 |  |  | 4,210 |
Residential real estate |  | 1,117 |  |  | (48) |  |  | — |  |  | (67) |  |  | — |  |  | 1,002 |
Home equity |  | 121 |  |  | (71) |  |  | — |  |  | — |  |  | 50 |  |  | 100 |
Consumer other |  | 33 |  |  | (5) |  |  | — |  |  | — |  |  | 545 |  |  | 573 |
Total |  | $ | 27,102 |  |  | $ | (1,010) |  |  | $ | — |  |  | $ | (18,163) |  |  | $ | 2,081 |  |  | $ | 10,010 |

(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Nine months ended September 30, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 754 |  |  | (37) |  |  | — |  |  | — |  |  | — |  |  | 717 |
Commercial real estate owner occupied |  | 1,731 |  |  | (68) |  |  | — |  |  | — |  |  | 1,266 |  |  | 2,929 |
Commercial real estate non-owner occupied |  | 13,684 |  |  | (163) |  |  | — |  |  | (11,046) |  |  | 10,979 |  |  | 13,454 |
Commercial and industrial |  | 2,686 |  |  | (815) |  |  | — |  |  | (3,141) |  |  | 4,871 |  |  | 3,601 |
Residential real estate |  | 1,524 |  |  | (205) |  |  | — |  |  | (174) |  |  | — |  |  | 1,145 |
Home equity |  | 133 |  |  | (9) |  |  | — |  |  | — |  |  | — |  |  | 124 |
Consumer other |  | 36 |  |  | (7) |  |  | — |  |  | 5 |  |  | — |  |  | 34 |
Total |  | $ | 20,548 |  |  | $ | (1,304) |  |  | $ | — |  |  | $ | (14,356) |  |  | $ | 17,116 |  |  | $ | 22,004 |

30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents loans modified as TDRs that occurred during the three and nine months ended September 30, 2022 and 2021:

(dollars in thousands) |  | Total
Three months ended September 30, 2022 |  |
TDR: |  |
Number of loans |  | 30 |
Pre-modification outstanding recorded investment |  | $ | 545 |
Post-modification outstanding recorded investment |  | $ | 545 |
Three months ended September 30, 2021 |  |
TDR: |  |
Number of loans |  | 2 |
Pre-modification outstanding recorded investment |  | $ | 283 |
Post-modification outstanding recorded investment |  | $ | 283 |

(dollars in thousands) |  | Total
Nine months ended September 30, 2022 |  |
TDR: |  |
Number of loans |  | 32 |
Pre-modification outstanding recorded investment |  | $ | 2,081 |
Post-modification outstanding recorded investment |  | $ | 2,081 |
Nine months ended September 30, 2021 |  |
TDR: |  |
Number of loans |  | 15 |
Pre-modification outstanding recorded investment |  | $ | 17,116 |
Post-modification outstanding recorded investment |  | $ | 17,116 |

There were no TDRs for which there was a payment default within twelve months following the modification during the three months ending September 30, 2022. The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the nine months ended September 30, 2022:

(in thousands) | Number of Loans |  | Recorded Investment
Nine months ended September 30, 2022 |  |  |
Commercial and industrial | 1 |  | $ | 105 |
Total | 1 |  | $ | 105 |

There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2021.
Between March 2020 and December 2021, the Company offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. Refer to Note 9 - Other Commitments, Contingencies, and Off-Balance Sheet Activities, and Pandemic Impact for more information regarding these modifications.
31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5. DEPOSITS
A summary of time deposits is as follows:

(In thousands) |  | September 30, 2022 |  | December 31, 2021
Time less than $100,000 |  | $ | 533,683 |  |  | $ | 676,979 |
Time $100,000 through $250,000 |  | 631,551 |  |  | 610,174 |
Time more than $250,000 |  | 380,022 |  |  | 391,787 |
Total time deposits |  | $ | 1,545,256 |  |  | $ | 1,678,940 |

Included in total deposits were brokered deposits of $163.5 million and $228.1 million at September 30, 2022 and December 31, 2021, respectively. Included in total deposits were reciprocal deposits of $71.3 million and $89.2 million at September 30, 2022 and December 31, 2021, respectively.
NOTE 6. BORROWED FUNDS
Borrowed funds at September 30, 2022 and December 31, 2021 are summarized as follows:

|  | September 30, 2022 |  | December 31, 2021
|  |  |  | Weighted |  |  |  | Weighted
|  |  |  | Average |  |  |  | Average
(Dollars in thousands) |  | Principal |  | Rate |  | Principal |  | Rate
Short-term borrowings: |  |  |  |  |  |  |  |
Advances from the FHLB |  | $ | — |  |  | — | % |  | $ | — |  |  | — | %
Total short-term borrowings: |  | — |  |  | — |  |  | — |  |  | — |
Long-term borrowings: |  |  |  |  |  |  |  |
Advances from the FHLB and other borrowings |  | 4,494 |  |  | 0.71 |  |  | 13,331 |  |  | 1.75 |
Subordinated borrowings |  | 98,038 |  |  | 5.50 |  |  | 74,590 |  |  | 7.00 |
Junior subordinated borrowing - Trust I |  | 15,464 |  |  | 4.81 |  |  | 15,464 |  |  | 2.01 |
Junior subordinated borrowing - Trust II |  | 7,499 |  |  | 4.99 |  |  | 7,459 |  |  | 1.90 |
Total long-term borrowings: |  | 125,495 |  |  | 5.21 |  |  | 110,844 |  |  | 5.33 |
Total |  | $ | 125,495 |  |  | 5.21 | % |  | $ | 110,844 |  |  | 5.33 | %

Short-term debt includes Federal Home Loan Bank (“FHLB”) advances with an original maturity of less than one year. The Bank also maintains a $3.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended September 30, 2022 and December 31, 2021. The Bank's available borrowing capacity with the FHLB was $1.2 billion and $1.5 billion for the periods ended September 30, 2022 and December 31, 2021.
The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank under this arrangement took place for the periods ended September 30, 2022 and December 31, 2021. As a participant in the SBA Paycheck Protection Program ("PPP"), the Bank may pledge originated loans as collateral at face value to the Federal Reserve Bank of Boston for term financings. As of September 30, 2022 and December 31, 2021, the Bank had no pledged PPP loans. The Bank's available borrowing capacity with the Federal Reserve Bank was $590.5 million and $511.0 million for the periods ended September 30, 2022 and December 31, 2021, respectively.
32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. There were no callable advances outstanding at September 30, 2022. The advances outstanding at September 30, 2022 included amortizing advances totaling $4.4 million. The advances outstanding at December 31, 2021 included callable advances totaling $10.0 million and amortizing advances totaling $3.4 million. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities.
A summary of maturities of FHLB advances as of September 30, 2022 is as follows:

|  | September 30, 2022 |  |
|  |  |  | Weighted Average |  |  |  |
(In thousands, except rates) |  | Principal |  | Rate |  |  |  |
Fixed rate advances maturing: |  |  |  |  |  |  |  |
2022 |  | $ | — |  |  | — | % |  |  |  |
2023 |  | — |  |  | — |  |  |  |  |
2024 |  | 28 |  |  | — |  |  |  |  |
2025 |  | — |  |  | — |  |  |  |  |
2025 and beyond |  | 4,466 |  |  | 0.71 |  |  |  |  |
Total FHLB advances |  | $ | 4,494 |  |  | 0.71 | % |  |  |  |

The Company did not have variable-rate FHLB advances for the periods ended September 30, 2022 and December 31, 2021, respectively.
In June 2022, the Company issued ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% for the first five years. After five years, the notes become callable and will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points. The subordinated note includes reduction to the note principal balance of $2.0 million for unamortized debt issuance costs as of September 30, 2022.
In September 2022, the Company called the fifteen year subordinated notes that were issued in September 2012 in the amount of $75 million.
The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets at a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 4.81% and 2.01% at September 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements.
The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets at a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate of 4.99% and 1.90% at September 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements.
33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
As of September 30, 2022, the Company held derivatives with a total notional amount of $4.0 billion. That amount included $0.4 billion in interest rate swap derivatives that were designated as cash flow hedges for accounting purposes. The Company also had economic hedges totaling $3.6 billion and $3.1 million non-hedging derivatives, which are not designated as hedges for accounting purposes with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $3.3 billion, risk participation agreements with dealer banks of $0.3 billion, and $1.0 million in forward commitment contracts.
As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management and Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at September 30, 2022.
The Company pledged collateral to derivative counterparties in the form of cash totaling $14.9 million and securities with an amortized cost of $22.5 million and a fair value of $22.3 million as of September 30, 2022. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.
34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Information about derivative assets and liabilities at September 30, 2022, follows:

|  |  | Weighted |  | Weighted Average Rate |  | Estimated
| Notional |  | Average |  |  |  | Contract |  | Fair Value
| Amount |  | Maturity |  | Received |  | pay rate |  | Asset (Liability)
| (In thousands) |  | (In years) |  |  |  |  |  | (In thousands)
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate swaps on commercial loans | $ | 225,000 |  |  | 2.9 |  | 2.50 | % |  | 3.25 | % |  | $ | (4,740) |
Forward-starting interest rate swaps on commercial loans | 175,000 |  |  | 3.0 |  | — | % |  | 3.84 | % |  | $ | (815) |
Total cash flow hedges | 400,000 |  |  |  |  |  |  |  |  | (5,555) |
Economic hedges: |  |  |  |  |  |  |  |  |
Interest rate swap on tax advantaged economic development bond | $ | 7,270 |  |  | 7.4 |  | 5.09 | % |  | 4.25 | % |  | $ | (205) |
Interest rate swaps on loans with commercial loan customers (1) | 1,653,839 |  |  | 5.8 |  | 3.98 | % |  | 4.26 | % |  | (95,836) |
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,653,839 |  |  | 5.8 |  | 4.26 | % |  | 3.98 | % |  | 52,834 |
Risk participation agreements with dealer banks | 325,063 |  |  | 6.9 |  |  |  |  |  | 13 |
Forward sale commitments | 539 |  |  | 0.2 |  |  |  |  |  | 7 |
Total economic hedges | 3,640,550 |  |  |  |  |  |  |  |  | (43,187) |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |
Commitments to lend | 3,132 |  |  | 0.2 |  |  |  |  |  | 16 |
Total non-hedging derivatives | 3,132 |  |  |  |  |  |  |  |  | 16 |
Total | $ | 4,043,682 |  |  |  |  |  |  |  |  | $ | (48,726) |

(1) Fair value estimates include the impact of $43.0 million settled to market contract agreements.
Information about derivative assets and liabilities at December 31, 2021, follows:

|  |  | Weighted |  | Weighted Average Rate |  | Estimated
| Notional |  | Average |  |  |  | Contract |  | Fair Value
| Amount |  | Maturity |  | Received |  | pay rate |  | Asset (Liability)
| (In thousands) |  | (In years) |  |  |  |  |  | (In thousands)
Economic hedges: |  |  |  |  |  |  |  |  |
Interest rate swap on tax advantaged economic development bond | $ | 7,879 |  |  | 7.9 |  | 0.47 | % |  | 5.09 | % |  | $ | (1,158) |
Interest rate swaps on loans with commercial loan customers | 1,684,238 |  |  | 5.8 |  | 3.99 | % |  | 1.91 | % |  | 74,348 |
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,684,238 |  |  | 5.8 |  | 1.91 | % |  | 3.99 | % |  | (30,454) |
Risk participation agreements with dealer banks | 320,981 |  |  | 5.8 |  |  |  |  |  | 432 |
Forward sale commitments | 6,377 |  |  | 0.2 |  |  |  |  |  | 134 |
Total economic hedges | 3,703,713 |  |  |  |  |  |  |  |  | 43,302 |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |
Commitments to lend | 8,192 |  |  | 0.2 |  |  |  |  |  | 124 |
Total non-hedging derivatives | 8,192 |  |  |  |  |  |  |  |  | 124 |
Total | $ | 3,711,905 |  |  |  |  |  |  |  |  | $ | 43,426 |

(1) Fair value estimates include the impact of $45.7 million settled to market contract agreements.
35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Cash flow hedges
The effective portion of unrealized changes in the fair value of derivatives accounted for as cash flow hedges is reported in other comprehensive income and subsequently reclassified to earnings in the same period or periods during which the hedged transaction is forecasted to affect earnings. Each quarter, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The ineffective portion of changes in the fair value of the derivatives is recognized directly in earnings.
The Company has entered into three interest rate swap contracts and three forward-starting interest rate swap contracts with a combined notional value of $400.0 million as of September 30, 2022. The three forward starting swaps will become effective in 2022. These interest rate swaps have durations of two to three years. This hedge strategy converts commercial variable rate loans to fixed interest rates, thereby protecting the Company from floating interest rate variability. Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows:

| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Interest rate swaps on commercial loans: |  |  |  |  |  |  |
Unrealized (loss) recognized in accumulated other comprehensive loss | $ | (5,555) |  |  | $ | — |  |  | $ | (5,555) |  |  | $ | — |
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | — |  |  | — |  |  | — |  |  | — |
Net tax benefit on items recognized in accumulated other comprehensive income | 1,494 |  |  | — |  |  | 1,494 |  |  | — |
Other comprehensive loss recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | $ | (4,061) |  |  | $ | — |  |  | $ | (4,061) |  |  | $ | — |
Net interest expense recognized in interest expense on hedged commercial loans | $ | (136) |  |  | $ | — |  |  | $ | (136) |  |  | $ | — |

36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Economic hedges
As of September 30, 2022, the Company has an interest rate swap with a $7.3 million notional amount to swap out the fixed rate of interest on an economic development bond bearing a fixed rate of 5.09%, currently within the Company’s trading portfolio under the fair value option, in exchange for a LIBOR-based floating rate. The intent of the economic hedge is to improve the Company’s asset sensitivity to changing interest rates in anticipation of favorable average floating rates of interest over the 21-year life of the bond. The fair value changes of the economic development bond are mostly offset by fair value changes of the related interest rate swap.
The Company also offers certain derivative products directly to qualified commercial borrowers. The Company economically hedges derivative transactions executed with commercial borrowers by entering into mirror-image, offsetting derivatives with third-party financial institutions. The transaction allows the Company’s customer to convert a variable-rate loan to a fixed rate loan. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts mostly offset each other in earnings. There was no credit valuation loss adjustment arising from the difference in credit worthiness of the commercial loan and financial institution counterparties as of September 30, 2022. The interest income and expense on these mirror image swaps exactly offset each other.
The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings.
The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings.
The Company uses the following types of forward sale commitments contracts:
•Best efforts loan sales,
•Mandatory delivery loan sales, and
•To Be Announced (“TBA”) mortgage-backed securities sales.
A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked.
A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer.
The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis.
37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Non-hedging derivatives
The Company enters into interest rate lock commitments (“IRLCs”), or commitments to lend, for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s consolidated statements of operations. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.
Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:

| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Economic hedges |  |  |  |  |  |  |
Interest rate swap on industrial revenue bond: |  |  |  |  |  |  |
Unrealized gain recognized in other non-interest income | $ | 304 |  |  | $ | 106 |  |  | $ | 953 |  |  | $ | 462 |
Interest rate swaps on loans with commercial loan customers: |  |  |  |  |  |  |
Unrealized (loss) recognized in other non-interest income | (53,788) |  |  | (17,164) |  |  | (177,413) |  |  | (66,949) |
Favorable change in credit valuation adjustment recognized in other non-interest income | — |  |  | 874 |  |  | 1,809 |  |  | 2,394 |
Offsetting interest rate swaps on loans with commercial loan customers: |  |  |  |  |  |  |
Unrealized gain recognized in other non-interest income | 53,788 |  |  | 17,164 |  |  | 177,413 |  |  | 66,949 |
Risk participation agreements: |  |  |  |  |  |  |
Unrealized (loss) recognized in other non-interest income | (19) |  |  | (103) |  |  | (419) |  |  | (282) |
Forward commitments: |  |  |  |  |  |  |
Unrealized (loss)/gain recognized in other non-interest income | (11) |  |  | 10 |  |  | (127) |  |  | (218) |
Non-hedging derivatives |  |  |  |  |  |  |
Commitments to lend |  |  |  |  |  |  |
Unrealized (loss) recognized in other non-interest income | $ | (100) |  |  | $ | (39) |  |  | $ | (108) |  |  | $ | (513) |
Realized gain in other non-interest income | 78 |  |  | 500 |  |  | 420 |  |  | 2,310 |

38

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Assets and Liabilities Subject to Enforceable Master Netting Arrangements
Interest Rate Swap Agreements (“Swap Agreements”)
The Company enters into swap agreements to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of marketable securities is received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds.
The Company had net asset positions with its financial institution counterparties totaling $52.8 million and $2.2 million as of September 30, 2022 and December 31, 2021, respectively. The Company had net asset positions with its commercial banking counterparties totaling $98.0 thousand and $76.8 million as of September 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its financial institution counterparties totaling $190.0 thousand and $33.3 million as of September 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its commercial banking counterparties totaling $95.9 million and $2.5 million as of September 30, 2022 and December 31, 2021. The Company has collateral pledged to cover this liability.
The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of September 30, 2022 and December 31, 2021:
Offsetting of Financial Assets and Derivative Assets

|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Assets Presented in the |  | Gross Amounts Not Offset in the Statements of Condition |  |
|  | Recognized |  | Statements of |  | Statements of |  | Financial |  | Cash |  |
(In thousands) |  | Assets |  | Condition |  | Condition |  | Instruments |  | Collateral Received |  | Net Amount
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | 101,474 |  |  | $ | (48,639) |  |  | $ | 52,835 |  |  | $ | — |  |  | $ | — |  |  | $ | 52,835 |
Commercial counterparties |  | 98 |  |  | — |  |  | 98 |  |  | — |  |  | — |  |  | 98 |
Total |  | $ | 101,572 |  |  | $ | (48,639) |  |  | $ | 52,933 |  |  | $ | — |  |  | $ | — |  |  | $ | 52,933 |

Offsetting of Financial Liabilities and Derivative Liabilities

|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Liabilities Presented in the |  | Gross Amounts Not Offset in the Statements of Condition |  |
|  | Recognized |  | Statements of |  | Statements of |  | Financial |  | Cash |  |
(In thousands) |  | Liabilities |  | Condition |  | Condition |  | Instruments |  | Collateral Pledged |  | Net Amount
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | (232) |  |  | $ | 42 |  |  | $ | (190) |  |  | $ | 22,273 |  |  | $ | 14,863 |  |  | $ | 36,946 |
Commercial counterparties |  | (101,353) |  |  | 5,419 |  |  | (95,934) |  |  | — |  |  | — |  |  | (95,934) |
Total |  | $ | (101,585) |  |  | $ | 5,461 |  |  | $ | (96,124) |  |  | $ | 22,273 |  |  | $ | 14,863 |  |  | $ | (58,988) |

39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Offsetting of Financial Assets and Derivative Assets

|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Assets Presented in the |  | Gross Amounts Not Offset in the Statements of Condition |  |
|  | Recognized |  | Statements of |  | Statements of |  | Financial |  | Cash |  |
(In thousands) |  | Assets |  | Condition |  | Condition |  | Instruments |  | Collateral Received |  | Net Amount
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | 2,223 |  |  | $ | (75) |  |  | $ | 2,148 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,148 |
Commercial counterparties |  | 76,809 |  |  | — |  |  | 76,809 |  |  | — |  |  | — |  |  | 76,809 |
Total |  | $ | 79,032 |  |  | $ | (75) |  |  | $ | 78,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 78,957 |

Offsetting of Financial Liabilities and Derivative Liabilities

|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Liabilities Presented in the |  | Gross Amounts Not Offset in the Statements of Condition |  |
|  | Recognized |  | Statements of |  | Statements of |  | Financial |  | Cash |  |
(In thousands) |  | Liabilities |  | Condition |  | Condition |  | Instruments |  | Collateral Pledged |  | Net Amount
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | (78,146) |  |  | $ | 44,814 |  |  | $ | (33,332) |  |  | $ | 34,896 |  |  | $ | 43,694 |  |  | $ | 45,258 |
Commercial counterparties |  | (2,461) |  |  | — |  |  | (2,461) |  |  | — |  |  | — |  |  | (2,461) |
Total |  | $ | (80,607) |  |  | $ | 44,814 |  |  | $ | (35,793) |  |  | $ | 34,896 |  |  | $ | 43,694 |  |  | $ | 42,797 |

40

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8. LEASES
Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At September 30, 2022, lease expiration dates ranged from 1 month to 17 years.
The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands) |  |  |  | September 30, 2022 |  | December 31, 2021
Lease Right-of-Use Assets |  | Classification |  |  |  |
Operating lease right-of-use assets |  | Other assets |  | $ | 48,467 |  |  | $ | 52,180 |
Finance lease right-of-use assets |  | Premises and equipment, net |  | 6,282 |  |  | 6,674 |
Total Lease Right-of-Use Assets |  |  |  | $ | 54,749 |  |  | $ | 58,854 |
Lease Liabilities |  |  |  |  |  |
Operating lease liabilities |  | Other liabilities |  | $ | 55,269 |  |  | $ | 55,674 |
Finance lease liabilities |  | Other liabilities |  | 9,448 |  |  | 9,862 |
Total Lease Liabilities |  |  |  | $ | 64,717 |  |  | $ | 65,536 |

Supplemental information related to leases was as follows:

| September 30, 2022 |  | December 31, 2021
Weighted-Average Remaining Lease Term (in years) |  |  |
Operating leases | 9.1 |  | 9.5
Finance leases | 12.1 |  | 12.8
Weighted-Average Discount Rate |  |  |
Operating leases | 2.60 | % |  | 2.77 | %
Finance leases | 5.00 | % |  | 5.00 | %

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.
The Company does not have any material sub-lease agreements.
Lease expense for operating leases for the three months ended September 30, 2022 was $2.2 million. Lease expense for operating leases for the nine months ended September 30, 2022 was $7.3 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.
Lease expense for operating leases for the three months ended September 30, 2021 was $2.6 million. Lease expense for operating leases for the nine months ended September 30, 2021 was $8.3 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.
41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental cash flow information related to leases was as follows:

|  | Three Months Ended
(In thousands) |  | September 30, 2022 |  | September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 2,518 |  |  | $ | 2,524 |
Operating cash flows from finance leases |  | 119 |  |  | 126 |
Financing cash flows from finance leases |  | 139 |  |  | 132 |

|  | Nine Months Ended
(In thousands) |  | September 30, 2022 |  | September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 7,657 |  |  | $ | 8,358 |
Operating cash flows from finance leases |  | 359 |  |  | 379 |
Financing cash flows from finance leases |  | 414 |  |  | 394 |

The following table presents a maturity analysis of the Company’s lease liability by lease classification at September 30, 2022:

(In thousands) |  | Operating Leases |  | Finance Leases
2022 |  | $ | 2,522 |  |  | $ | 256 |
2023 |  | 10,068 |  |  | 1,037 |
2024 |  | 8,506 |  |  | 1,037 |
2025 |  | 6,541 |  |  | 1,037 |
2026 |  | 5,323 |  |  | 1,037 |
Thereafter |  | 29,271 |  |  | 8,187 |
Total undiscounted lease payments |  | 62,231 |  |  | 12,591 |
Less amounts representing interest |  | (6,962) |  |  | (3,143) |
Lease liability |  | $ | 55,269 |  |  | $ | 9,448 |

42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9. OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT
In March 2020, the World Health Organization declared a novel strain of coronavirus ("COVID-19") a global pandemic and the United States declared a National Public Health Emergency. The impact of the COVID-19 pandemic is fluid and continues to evolve, which is adversely affecting some of the Company’s clients. The continuing impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets, and our clients, employees, and vendors.
The Company’s business, financial condition and results of operations generally rely upon the ability of the Company’s borrowers to repay their loans, the value of collateral underlying the Company’s secured loans, and demand for loans and other products and services the Company offers, which are highly dependent on the business environment in the Company’s primary markets where it operates and in the United States as a whole.
These circumstances could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, results of operations and prospects. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, lease right-of-use assets, or counter-party risk derivatives.
Beginning in March 2020, the Company offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. As of September 30, 2022, the Company had 2 active modified loans outstanding with a carrying value of $12.5 million. As of December 31, 2021, the Company had 19 active modified loans outstanding with a carrying value of $14.4 million, which excluded loans returning to payment or awaiting evaluation for further deferral. The Company continues to accrue interest on these loans during the deferral period. In accordance with interagency guidance issued in March 2020 and Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act, these short-term deferrals are not considered troubled debt restructurings (“TDRs”) unless the borrower was previously experiencing financial difficulty. In addition, the risk-ratings on COVID-19 modified loans did not automatically change as a result of payment deferrals, and these loans will not be considered past due until after the deferral period is over and scheduled payments resume. Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act expired on December 31, 2021.
43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10. CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY
The actual and required capital ratios were as follows:

|  | September 30, 2022 |  | December 31, 2021 |  | Minimum Capital Requirement
Company (consolidated) |  |  |  |  |  |
Total capital to risk-weighted assets |  | 15.1 | % |  | 17.3 | % |  | 8.0 | %
Common equity tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 15.0 |  |  | 4.5 |
Tier 1 capital to risk-weighted assets |  | 13.0 |  |  | 15.3 |  |  | 6.0 |
Tier 1 capital to average assets |  | 10.1 |  |  | 10.5 |  |  | 4.0 |

|  | September 30, 2022 |  | December 31, 2021 |  | Regulatory Minimum to be Adequately Capitalized |  | Regulatory Minimum to be Well Capitalized
Bank |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | 13.6 | % |  | 15.9 | % |  | 8.0 | % |  | 10.0 | %
Common equity tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 14.8 |  |  | 4.5 |  |  | 6.5 |
Tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 14.8 |  |  | 6.0 |  |  | 8.0 |
Tier 1 capital to average assets |  | 9.9 |  |  | 10.1 |  |  | 4.0 |  |  | 5.0 |

The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Failure to meet capital requirements can initiate regulatory action. At each date shown, the Company met the minimum capital requirements and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above.
As of January 1, 2019, banking organizations must maintain a minimum Common equity Tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5%, and a minimum Total risk-based capital ratio of 10.5%, including a 2.5% capital conservation buffer. Capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the capital conservation buffer is not met.
At September 30, 2022, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at September 30, 2022 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%.
44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accumulated other comprehensive (loss)
Components of accumulated other comprehensive (loss) is as follows:

(In thousands) |  | September 30, 2022 |  | December 31, 2021
Other accumulated comprehensive income, before tax: |  |  |  |
Net unrealized holding (loss) on AFS securities |  | $ | (246,739) |  |  | $ | (1,806) |
Net unrealized (loss) on cash flow hedging derivatives |  | (5,555) |  |  | — |
Net unrealized holding (loss) on pension plans |  | (2,518) |  |  | (2,518) |
Income taxes related to items of accumulated other comprehensive income: |  |  |  |
Net unrealized tax benefit on AFS securities |  | 64,150 |  |  | 407 |
Net unrealized tax benefit on cash flow hedging derivatives |  | 1,494 |  |  | — |
Net unrealized tax benefit on pension plans |  | 674 |  |  | 674 |
Accumulated other comprehensive loss |  | $ | (188,494) |  |  | $ | (3,243) |

The following table presents the components of other comprehensive (loss) for the three and nine months ended September 30, 2022 and 2021:

(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Three Months Ended September 30, 2022 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  | x |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (83,073) |  |  | $ | 21,639 |  |  | $ | (61,434) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (83,073) |  |  | 21,639 |  |  | (61,434) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized (loss) on cash flow hedging derivatives |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Other comprehensive (loss) |  | $ | (88,628) |  |  | $ | 23,133 |  |  | $ | (65,495) |
Three Months Ended September 30, 2021 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (10,098) |  |  | $ | 2,575 |  |  | $ | (7,523) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (10,098) |  |  | 2,575 |  |  | (7,523) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | — |  |  | — |  |  | — |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on cash flow hedging derivatives |  | — |  |  | — |  |  | — |
Other comprehensive (loss) |  | $ | (10,098) |  |  | $ | 2,575 |  |  | $ | (7,523) |

45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Nine Months Ended September 30, 2022 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (244,927) |  |  | $ | 63,741 |  |  | $ | (181,186) |
Less: reclassification adjustment for gains realized in net income |  | 6 |  |  | (2) |  |  | 4 |
Net unrealized holding (loss) on AFS securities |  | (244,933) |  |  | 63,743 |  |  | (181,190) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on cash flow hedging derivatives |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Other comprehensive (loss) |  | $ | (250,488) |  |  | $ | 65,237 |  |  | $ | (185,251) |
Nine Months Ended September 30, 2021 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (31,718) |  |  | $ | 8,096 |  |  | $ | (23,622) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (31,718) |  |  | 8,096 |  |  | (23,622) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | — |  |  | — |  |  | — |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on cash flow hedging derivatives |  | — |  |  | — |  |  | — |
Other comprehensive (loss) |  | $ | (31,718) |  |  | $ | 8,096 |  |  | $ | (23,622) |

46

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the changes in each component of accumulated other comprehensive (loss), for the three and nine months ended September 30, 2022 and 2021:

(In thousands) |  | Net unrealized holding loss on AFS Securities |  | Net loss on effective cash flow hedging derivatives |  |  |  | Net unrealized holding loss on pension plans |  | Total
Three Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (121,154) |  |  | $ | — |  |  |  |  | $ | (1,845) |  |  | $ | (122,999) |
Other comprehensive (loss) before reclassifications |  | (61,434) |  |  | (4,061) |  |  |  |  | — |  |  | (65,495) |
Less: amounts reclassified from accumulated other comprehensive (loss) |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive (loss) |  | (61,434) |  |  | (4,061) |  |  |  |  | — |  |  | (65,495) |
Balance at End of Period |  | $ | (182,588) |  |  | $ | (4,061) |  |  |  |  | $ | (1,845) |  |  | $ | (188,494) |
Three Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 17,359 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 14,772 |
Other comprehensive (loss) before reclassifications |  | (7,523) |  |  | — |  |  |  |  | — |  |  | (7,523) |
Less: amounts reclassified from accumulated other comprehensive (loss) |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive income |  | (7,523) |  |  | — |  |  |  |  | — |  |  | (7,523) |
Balance at End of Period |  | $ | 9,836 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 7,249 |
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (1,398) |  |  | $ | — |  |  |  |  | $ | (1,845) |  |  | $ | (3,243) |
Other comprehensive (loss) before reclassifications |  | (181,186) |  |  | (4,061) |  |  |  |  | — |  |  | (185,247) |
Less: amounts reclassified from accumulated other comprehensive income |  | 4 |  |  | — |  |  |  |  | — |  |  | 4 |
Total other comprehensive (loss) |  | (181,190) |  |  | (4,061) |  |  |  |  | — |  |  | (185,251) |
Balance at End of Period |  | $ | (182,588) |  |  | $ | (4,061) |  |  |  |  | $ | (1,845) |  |  | $ | (188,494) |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 33,458 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 30,871 |
Other comprehensive (loss) before reclassifications |  | (23,622) |  |  | — |  |  |  |  |  |  | (23,622) |
Less: amounts reclassified from accumulated other comprehensive income |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive (loss) |  | (23,622) |  |  | — |  |  |  |  | — |  |  | (23,622) |
Balance at End of Period |  | $ | 9,836 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 7,249 |

47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the amounts reclassified out of each component of accumulated other comprehensive
income for the three and nine months ended September 30, 2022 and 2021:

|  |  |  |  |  | Affected Line Item in the
|  | Three Months Ended September 30, |  | Statement where Net Income
(In thousands) |  | 2022 |  | 2021 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |
|  | $ | — |  |  | $ | — |  |  | Non-interest income
|  | — |  |  | — |  |  | Retained earnings
|  | — |  |  | — |  |  | Tax expense
|  | — |  |  | — |  |  | Net of tax
Total reclassifications for the period |  | $ | — |  |  | $ | — |  |  | Net of tax

|  |  |  |  |  | Affected Line Item in the
|  | Nine Months Ended September 30, |  | Statement where Net Income
(In thousands) |  | 2022 |  | 2021 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |
|  | $ | 6 |  |  |  |  | Non-interest income
|  | (2) |  |  | — |  |  | Tax expense
|  | 4 |  |  | — |  |  | Net of tax
Total reclassifications for the period |  | $ | 4 |  |  | $ | — |  |  | Net of tax

48

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11. EARNINGS PER SHARE
Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method):

| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands, except per share data) | 2022 |  | 2021 |  | 2022 |  | 2021
Net income | $ | 18,717 |  |  | $ | 63,749 |  |  | $ | 62,028 |  |  | $ | 98,416 |
Average number of common shares issued | 51,903 |  |  | 51,903 |  |  | 51,903 |  |  | 51,903 |
Less: average number of treasury shares | 6,433 |  |  | 2,764 |  |  | 5,068 |  |  | 1,519 |
Less: average number of unvested stock award shares | 770 |  |  | 744 |  |  | 779 |  |  | 712 |
Average number of basic shares outstanding | 44,700 |  |  | 48,395 |  |  | 46,056 |  |  | 49,672 |
Plus: dilutive effect of unvested stock award shares | 330 |  |  | 342 |  |  | 336 |  |  | 286 |
Plus: dilutive effect of stock options outstanding | 4 |  |  | 7 |  |  | 4 |  |  | 5 |
Average number of diluted shares outstanding | 45,034 |  |  | 48,744 |  |  | 46,396 |  |  | 49,963 |
Basic earnings per common share: | $ | 0.42 |  |  | $ | 1.32 |  |  | $ | 1.35 |  |  | $ | 1.98 |
Diluted earnings per common share: | $ | 0.42 |  |  | $ | 1.31 |  |  | $ | 1.34 |  |  | $ | 1.97 |

For the three months ended September 30, 2022, 440 thousand shares of unvested restricted stock and 68 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the nine months ended September 30, 2022, 448 thousand shares of unvested restricted stock and 69 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the three months ended September 30, 2021, 402 thousand shares of unvested restricted stock and 88 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the nine months ended September 30, 2021, 425 thousand shares of unvested restricted stock and 93 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation.
49

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 12. STOCK-BASED COMPENSATION PLANS
A combined summary of activity in the Company’s stock award and stock option plans for the nine months ended September 30, 2022 is presented in the following table:

|  |  | Non-Vested Stock Awards Outstanding |  | Stock Options Outstanding
(Shares in thousands) |  |  | Number of Shares |  | Weighted-Average Grant Date Fair Value |  | Number of Shares |  | Weighted-Average Exercise Price
December 31, 2021 |  |  | 710 |  |  | $ | 20.16 |  |  | 80 |  |  | $ | 25.21 |
Granted |  |  | 321 |  |  | 28.78 |  |  | — |  |  | — |
Acquired |  |  | — |  |  | — |  |  | — |  |  | — |
Stock options exercised |  |  | — |  |  | — |  |  | (12) |  |  | 22.97 |
Stock awards vested |  |  | (230) |  |  | 21.75 |  |  | — |  |  | — |
Forfeited |  |  | (75) |  |  | 25.62 |  |  | — |  |  | — |
Expired |  |  | — |  |  | — |  |  | (6) |  |  | 24.30 |
September 30, 2022 |  |  | 726 |  |  | $ | 22.73 |  |  | 62 |  |  | $ | 25.43 |

During the three and nine months ended September 30, 2022, proceeds from stock option exercises totaled $246 thousand and $270 thousand, respectively. During the three and nine months ended September 30, 2021, proceeds from stock option exercises totaled $38 thousand and $162 thousand, respectively. During the three and nine months ended September 30, 2022, there were 120 thousand and 230 thousand shares vested in connection with stock awards, respectively. During the three and nine months ended September 30, 2021, there were 89 thousand and 168 thousand shares vested in connection with stock awards, respectively. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $1.7 million and $1.4 million during the three months ended September 30, 2022 and 2021, respectively. Stock-based compensation expense totaled $5.7 million and $3.7 million during the nine months ended September 30, 2022 and 2021, respectively. Stock-based compensation expense is recognized over the requisite service period for all awards.
50

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13. FAIR VALUE MEASUREMENTS
A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value.
Recurring Fair Value Measurements
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

| September 30, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
(In thousands) | Inputs |  | Inputs |  | Inputs |  | Fair Value
Trading security | $ | — |  |  | $ | — |  |  | $ | 6,812 |  |  | $ | 6,812 |
Securities available for sale: |  |  |  |  |  |  |
U.S Treasuries | — |  |  | 20,000 |  |  | — |  |  | 20,000 |
Municipal bonds and obligations | — |  |  | 60,566 |  |  | — |  |  | 60,566 |
Agency collateralized mortgage obligations | — |  |  | 557,513 |  |  | — |  |  | 557,513 |
Agency residential mortgage-backed securities | — |  |  | 553,737 |  |  | — |  |  | 553,737 |
Agency commercial mortgage-backed securities | — |  |  | 235,576 |  |  | — |  |  | 235,576 |
Corporate bonds | — |  |  | 38,981 |  |  | 3,920 |  |  | 42,901 |
Other bonds and obligations | — |  |  | 656 |  |  | — |  |  | 656 |
Marketable equity securities | 12,790 |  |  | — |  |  | — |  |  | 12,790 |
Loans held for investment at fair value | — |  |  | — |  |  | 796 |  |  | 796 |
Loans held for sale | — |  |  | 550 |  |  | — |  |  | 550 |
Derivative assets | — |  |  | 52,997 |  |  | 22 |  |  | 53,019 |
Capitalized servicing rights | — |  |  | — |  |  | 2,026 |  |  | 2,026 |
Derivative liabilities | — |  |  | 101,745 |  |  | — |  |  | 101,745 |

| December 31, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total
(In thousands) | Inputs |  | Inputs |  | Inputs |  | Fair Value
Trading security | $ | — |  |  | $ | — |  |  | $ | 8,354 |  |  | $ | 8,354 |
Securities available for sale: |  |  |  |  |  |  |
U.S Treasuries | — |  |  | 59,973 |  |  | — |  |  | 59,973 |
Municipal bonds and obligations | — |  |  | 77,177 |  |  | — |  |  | 77,177 |
Agency collateralized mortgage obligations | — |  |  | 688,336 |  |  | — |  |  | 688,336 |
Agency residential mortgage-backed securities | — |  |  | 705,859 |  |  | — |  |  | 705,859 |
Agency commercial mortgage-backed securities | — |  |  | 300,580 |  |  | — |  |  | 300,580 |
Corporate bonds | — |  |  | 41,630 |  |  | 4,030 |  |  | 45,660 |
Marketable equity securities | 14,798 |  |  | 655 |  |  | — |  |  | 15,453 |
Loans held for investment at fair value | — |  |  | — |  |  | 1,200 |  |  | 1,200 |
Loans held for sale | — |  |  | 6,110 |  |  | — |  |  | 6,110 |
Derivative assets | — |  |  | 79,270 |  |  | 258 |  |  | 79,528 |
Capitalized servicing rights | — |  |  | — |  |  | 1,966 |  |  | 1,966 |
Derivative liabilities | — |  |  | 35,194 |  |  | — |  |  | 35,194 |

There were no transfers between levels during the three and nine months ended September 30, 2022.
51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Trading Security at Fair Value. The Company holds one security designated as a trading security. It is a tax-advantaged economic development bond issued to the Company by a local nonprofit which provides wellness and health programs. The fair value of this security is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable and there is little to no market activity in the security; therefore, the security meets the definition of a Level 3 security. The discount rate used in the valuation of the security is sensitive to movements in the 3-month LIBOR rate.
Securities Available for Sale and Marketable Equity Securities. Marketable equity securities classified as Level 1 consist of publicly-traded equity securities for which the fair values can be obtained through quoted market prices in active exchange markets. Marketable equity securities classified as Level 2 consist of securities with infrequent trades in active exchange markets, and pricing is primarily sourced from third party pricing services. AFS securities classified as Level 2 include most of the Company’s debt securities. The pricing on Level 2 and Level 3 was primarily sourced from third party pricing services, overseen by management, and is based on models that consider standard input factors such as dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and condition, among other things. Level 3 pricing includes inputs unobservable to market participants.
Loans Held for Investment. The Company’s held for investment loan portfolio includes loans originated by Company and loans acquired through business combinations. The Company intends to hold these assets until maturity as a part of its business operations. For one acquired portfolio subset, the Company previously accounted for these purchased-credit impaired loans as a pool under ASC 310, as they were determined to have common risk characteristics. These loans were recorded at fair value on acquisition date and subsequently evaluated for impairment collectively. Upon adoption of ASC 326, the Company elected the fair value option on this portfolio, recognizing an $11.2 million fair value write-down charged to retained earnings, net of deferred tax impact, as of January 1, 2020. The fair value of this loan portfolio is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable; therefore, the loans meet the definition of Level 3 assets. The discount rate used in the valuation is consistent with assets that have significant credit deterioration. The cash flow assumptions include payment schedules for loans with current payment histories and estimated collateral value for delinquent loans. All of these loans were nonperforming as of September 30, 2022.

|  |  |  |  |  | Aggregate Fair Value
September 30, 2022 |  | Aggregate |  | Aggregate |  | Less Aggregate
(In thousands) |  | Fair Value |  | Unpaid Principal |  | Unpaid Principal
Loans held for investment at fair value |  | $ | 796 |  |  | $ | 13,371 |  |  | $ | (12,575) |

|  |  |  |  |  | Aggregate Fair Value
December 31, 2021 |  | Aggregate |  | Aggregate |  | Less Aggregate
(In thousands) |  | Fair Value |  | Unpaid Principal |  | Unpaid Principal
Loans held for investment at fair value |  | $ | 1,200 |  |  | $ | 31,430 |  |  | $ | (30,230) |

Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets.

|  |  |  |  |  | Aggregate Fair Value
September 30, 2022 |  | Aggregate |  | Aggregate |  | Less Aggregate
(In thousands) |  | Fair Value |  | Unpaid Principal |  | Unpaid Principal
Loans held for sale |  | $ | 550 |  |  | $ | 539 |  |  | $ | 11 |

|  |  |  |  |  | Aggregate Fair Value
December 31, 2021 |  | Aggregate |  | Aggregate |  | Less Aggregate
(In thousands) |  | Fair Value |  | Unpaid Principal |  | Unpaid Principal
Loans held for sale |  | $ | 6,110 |  |  | $ | 5,926 |  |  | $ | 184 |

52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The changes in fair value of loans held for sale for the three and nine months ended September 30, 2022, were losses of $12 thousand and $173 thousand, respectively. During the three and nine months ended September 30, 2022, originations of loans held for sale totaled $6.0 million and $16.1 million, respectively. During the three and nine months ended September 30, 2022, sales of loans originated for sale totaled $6.5 million and $21.6 million, respectively.
The changes in fair value of loans held for sale for the three and nine months ended September 30, 2021, were gains of $17 thousand and losses of $217 thousand, respectively. During the three and nine months ended September 30, 2021, originations of loans held for sale totaled $24.0 million and $84.4 million, respectively. During the three and nine months ended September 30, 2021, sales of loans originated for sale totaled $22.5 million and $90.8 million, respectively.
Interest Rate Swaps. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings.
Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.
Commitments to Lend. The Company enters into commitments to lend for residential mortgage loans intended for sale, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, these commitments are classified as Level 3 measurements.
Forward Sale Commitments. The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the commitments to lend and loans originated for sale. To Be Announced (“TBA”) mortgage-backed securities forward commitment sales are used as the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the commitments to lend using quoted prices in the market place that are observable. However, costs to originate and closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, best efforts and mandatory forward commitments are classified as Level 3 measurements.
Capitalized Servicing Rights. The Company accounts for certain capitalized servicing rights at fair value in its Consolidated Financial Statements, as the Company is permitted to elect the fair value option for each specific instrument. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some
53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.
The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and nine months ended September 30, 2022 and 2021.

| Assets (Liabilities)
|  |  | Securities |  | Loans |  |  |  |  |  | Capitalized
| Trading |  | Available |  | Held for |  | Commitments |  | Forward |  | Servicing
(In thousands) | Security |  | for Sale |  | Investment |  | to Lend |  | Commitments |  | Rights
Three Months Ended September 30, 2022
June 30, 2022 | $ | 7,040 |  |  | $ | 4,020 |  |  | $ | 1,049 |  |  | $ | 26 |  |  | $ | 18 |  |  | $ | 1,906 |
Unrealized (loss)/gain, net recognized in other non-interest income | (23) |  |  | — |  |  | (6) |  |  | 41 |  |  | (11) |  |  | 120 |
Unrealized gain included in accumulated other comprehensive income | — |  |  | (100) |  |  | — |  |  | — |  |  | — |  |  | — |
Paydown of asset | (205) |  |  | — |  |  | (247) |  |  | — |  |  | — |  |  | — |
Transfers to held for sale loans | — |  |  | — |  |  | — |  |  | (52) |  |  | — |  |  | — |
September 30, 2022 | $ | 6,812 |  |  | $ | 3,920 |  |  | $ | 796 |  |  | $ | 15 |  |  | $ | 7 |  |  | $ | 2,026 |
Nine Months Ended September 30, 2022
December 31, 2021 | $ | 8,354 |  |  | $ | 4,030 |  |  | $ | 1,200 |  |  | $ | 124 |  |  | $ | 134 |  |  | $ | 1,966 |
Unrealized (loss)/gain, net recognized in other non-interest income | (933) |  |  | — |  |  | 462 |  |  | 171 |  |  | (127) |  |  | 60 |
Unrealized (loss) included in accumulated other comprehensive income | — |  |  | (110) |  |  | — |  |  | — |  |  | — |  |  | — |
Paydown of asset | (609) |  |  | — |  |  | (866) |  |  | — |  |  | — |  |  | — |
Transfers to held for sale loans | — |  |  | — |  |  | — |  |  | (280) |  |  | — |  |  | — |
September 30, 2022 | $ | 6,812 |  |  | $ | 3,920 |  |  | $ | 796 |  |  | $ | 15 |  |  | $ | 7 |  |  | $ | 2,026 |
Unrealized gain relating to instruments still held at September 30, 2022 | $ | (459) |  |  | $ | (80) |  |  | $ | — |  |  | $ | 26 |  |  | $ | 18 |  |  | $ | — |

54

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|  |  | Securities |  | Loans |  |  |  |  |  | Capitalized
| Trading |  | Available |  | Held for |  | Commitments |  | Forward |  | Servicing
(In thousands) | Security |  | for Sale |  | Investment |  | to Lend |  | Commitments |  | Rights
Three Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
June 30, 2021 | $ | 8,853 |  |  | $ | — |  |  | $ | 1,260 |  |  | $ | 261 |  |  | $ | 92 |  |  | $ | 2,356 |
Unrealized (loss)/gain, net recognized in other non-interest income | (85) |  |  | — |  |  | 509 |  |  | 440 |  |  | 10 |  |  | (210) |
Paydown of asset | (194) |  |  | — |  |  | (731) |  |  | — |  |  | — |  |  | — |
Transfers to held for sale loans | — |  |  | — |  |  | — |  |  | (479) |  |  | — |  |  | — |
September 30, 2021 | $ | 8,574 |  |  | $ | — |  |  | $ | 1,038 |  |  | $ | 222 |  |  | $ | 102 |  |  | $ | 2,146 |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
December 31, 2020 | $ | 9,708 |  |  | $ | 15,000 |  |  | $ | 2,265 |  |  | $ | 735 |  |  | $ | 320 |  |  | $ | 3,033 |
Maturity of AFS security | — |  |  | (15,000) |  |  | — |  |  | — |  |  | — |  |  | — |
Unrealized (loss)/gain, net recognized in other non-interest income | (556) |  |  | — |  |  | 1,110 |  |  | 1,688 |  |  | (218) |  |  | (887) |
Paydown of asset | (578) |  |  | — |  |  | (2,337) |  |  | — |  |  | — |  |  | — |
Transfers to held for sale loans | — |  |  | — |  |  | — |  |  | (2,201) |  |  | — |  |  | — |
September 30, 2021 | $ | 8,574 |  |  | $ | — |  |  | $ | 1,038 |  |  | $ | 222 |  |  | $ | 102 |  |  | $ | 2,146 |
Unrealized gains relating to instruments still held at September 30,2021 | $ | 497 |  |  | $ | — |  |  | $ | — |  |  | $ | 222 |  |  | $ | 102 |  |  | $ | — |

55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

|  | Fair Value |  |  |  |  |  | Significant Unobservable Input
(In thousands) |  | September 30, 2022 |  | Valuation Techniques |  | Unobservable Inputs |  | Value
Assets (Liabilities) |  |  |  |  |  |  |  |
Trading security |  | $ | 6,812 |  |  | Discounted Cash Flow |  | Discount Rate |  | 6.38 | %
AFS Securities |  | 3,920 |  |  | Indication from Market Maker |  | Price |  | 98.00%
Loans held for investment |  | 1,049 |  |  | Discounted Cash Flow |  | Discount Rate |  | 25.00 | %
|  |  |  |  |  | Collateral Value |  | $— - $20.7
Commitments to lend |  | 15 |  |  | Historical Trend |  | Closing Ratio |  | 83.95 | %
|  |  |  | Pricing Model |  | Origination Costs, per loan |  | $ | 3 |
Forward commitments |  | 7 |  |  | Historical Trend |  | Closing Ratio |  | 83.95 | %
|  |  |  | Pricing Model |  | Origination Costs, per loan |  | $ | 3 |
Capitalized servicing rights |  | 2,026 |  |  | Discounted cash flow |  | Constant Prepayment Rate (CPR) |  | 12.48 | %
|  |  |  |  |  | Discount Rate |  | 9.55 | %
Total |  | $ | 13,829 |  |  |  |  |  |  |

|  | Fair Value |  |  |  |  |  | Significant Unobservable Input
(In thousands) |  | December 31, 2021 |  | Valuation Techniques |  | Unobservable Inputs |  | Value
Assets (Liabilities) |  |  |  |  |  |  |  |
Trading security |  | $ | 8,354 |  |  | Discounted Cash Flow |  | Discount Rate |  | 3.35 | %
AFS Securities |  | 4,030 |  |  | Indication from Market Maker |  | Price |  | 101.00 | %
Loans held for investment |  | 1,200 |  |  | Discounted Cash Flow |  | Discount Rate |  | 25.00 | %
|  |  |  |  |  | Collateral Value |  | $6.3- $19.8
Commitments to lend |  | 124 |  |  | Historical Trend |  | Closing Ratio |  | 82.09 | %
|  |  |  | Pricing Model |  | Origination Costs, per loan |  | $ | 3 |
Forward commitments |  | 134 |  |  | Historical Trend |  | Closing Ratio |  | 82.09 | %
|  |  |  | Pricing Model |  | Origination Costs, per loan |  | $ | 3 |
Capitalized servicing rights |  | 1,966 |  |  | Discounted Cash Flow |  | Constant Prepayment Rate (CPR) |  | 19.41 | %
|  |  |  |  |  | Discount Rate |  | 9.50 | %
Total |  | $ | 15,808 |  |  |  |  |  |  |

56

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Non-Recurring Fair Value Measurements
The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis.

|  | September 30, 2022 |  | December 31, 2021 |  |  |  |  |  | Fair Value Measurement Date as of September 30, 2022
|  | Level 3 |  | Level 3 |  |  |  |  |  | Level 3
(In thousands) |  | Inputs |  | Inputs |  |  |  |  |  | Inputs
Assets |  |  |  |  |  |  |  |  |  |
Individually evaluated |  | $ | 2,944 |  |  | $ | 12,482 |  |  |  |  |  |  | September 2022
Loans held for sale |  | 3,574 |  |  | — |  |  |  |  |  |  | September 2022
Capitalized servicing rights |  | 11,793 |  |  | 14,056 |  |  |  |  |  |  | September 2022
Total |  | $ | 18,311 |  |  | $ | 26,538 |  |  |  |  |  |  |

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

|  | Fair Value |  |  |  |  |  |
(In thousands) |  | September 30, 2022 |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Average) (1)
Assets |  |  |  |  |  |  |  |
Individually evaluated |  | $ | 2,944 |  |  | Fair Value of Collateral |  | Discounted Cash Flow - Loss Severity |  | (100.00)% to 26.42% ((49.76)%)
|  |  |  |  |  | Appraised Value |  | $0 to $608 ($-501)
Loans held for sale |  | 3,574 |  |  | Fair Value of Collateral |  | Appraised Value |  | $3,574
Capitalized servicing rights |  | 11,793 |  |  | Discounted Cash Flow |  | Constant Prepayment Rate (CPR) |  | 5.99% to 13.52% (11.28%)
|  |  |  |  |  | Discount Rate |  | 9.16% to 16.13% (13.32%)
Total |  | $ | 18,311 |  |  |  |  |  |  |

(1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

|  | Fair Value |  |  |  |  |  |
(In thousands) |  | December 31, 2021 |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Average) (1)
Assets |  |  |  |  |  |  |  |
Individually evaluated |  | $ | 12,482 |  |  | Fair Value of Collateral |  | Discounted Cash Flow - loss severity |  | (35.96)% to 133.09% ((49.14)%)
|  |  |  |  |  | Appraised Value |  | $0 to $405 ($256)
Capitalized servicing rights |  | 14,056 |  |  | Discounted Cash Flow |  | Constant Prepayment Rate (CPR) |  | 6.24% to 17.73% (13.29%)
|  |  |  |  |  | Discount Rate |  | 9.59% to 13.11% (11.97%)
Total |  | $ | 26,538 |  |  |  |  |  |  |

(1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.
There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended September 30, 2022 and December 31, 2021.
57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Individually evaluated loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3.
Loans Transferred to Held for Sale. Once a decision has been made to sell loans not previously classified as held for sale, these loans are transferred into the held for sale category and carried at the lower of cost or fair value. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. The choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3.
Capitalized loan servicing rights. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.
58

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Summary of Estimated Fair Values of Financial Instruments
The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

|  | September 30, 2022
|  | Carrying |  | Fair |  |  |  |  |  |
(In thousands) |  | Amount |  | Value |  | Level 1 |  | Level 2 |  | Level 3
Financial Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 694,913 |  |  | $ | 694,913 |  |  | $ | 694,913 |  |  | $ | — |  |  | $ | — |
Trading security |  | 6,812 |  |  | 6,812 |  |  | — |  |  | — |  |  | 6,812 |
Marketable equity securities |  | 12,790 |  |  | 12,790 |  |  | 12,790 |  |  | — |  |  | — |
Securities available for sale |  | 1,470,949 |  |  | 1,470,949 |  |  | — |  |  | 1,467,029 |  |  | 3,920 |
Securities held to maturity |  | 592,503 |  |  | 503,262 |  |  | — |  |  | 501,164 |  |  | 2,098 |
FHLB bank stock and restricted securities |  | 7,264 |  |  | N/A |  | N/A |  | N/A |  | N/A
Net loans |  | 7,847,468 |  |  | 7,798,562 |  |  | — |  |  | — |  |  | 7,798,562 |
Loans held for sale |  | 4,124 |  |  | 4,124 |  |  | — |  |  | 550 |  |  | 3,574 |
Accrued interest receivable |  | 40,444 |  |  | 40,444 |  |  | — |  |  | 40,444 |  |  | — |
Derivative assets |  | 53,019 |  |  | 53,019 |  |  | — |  |  | 52,997 |  |  | 22 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Total deposits |  | $ | 9,988,121 |  |  | $ | 9,944,085 |  |  | $ | — |  |  | $ | 9,944,085 |  |  | $ | — |
Short-term debt |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Long-term Federal Home Loan Bank advances and other |  | 4,494 |  |  | 2,888 |  |  | — |  |  | 2,888 |  |  | — |
Subordinated borrowings |  | 121,001 |  |  | 110,109 |  |  | — |  |  | 110,109 |  |  | — |
Derivative liabilities |  | 101,745 |  |  | 101,745 |  |  | — |  |  | 101,745 |  |  | — |

|  | December 31, 2021
|  | Carrying |  | Fair |  |  |  |  |  |
(In thousands) |  | Amount |  | Value |  | Level 1 |  | Level 2 |  | Level 3
Financial Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,627,807 |  |  | $ | 1,627,807 |  |  | $ | 1,627,807 |  |  | $ | — |  |  | $ | — |
Trading security |  | 8,354 |  |  | 8,354 |  |  | — |  |  | — |  |  | 8,354 |
Marketable equity securities |  | 15,453 |  |  | 15,453 |  |  | 14,798 |  |  | 655 |  |  | — |
Securities available for sale and other |  | 1,877,585 |  |  | 1,877,585 |  |  | — |  |  | 1,873,555 |  |  | 4,030 |
Securities held to maturity |  | 636,503 |  |  | 647,236 |  |  | — |  |  | 644,497 |  |  | 2,739 |
FHLB bank stock and restricted securities |  | 10,800 |  |  | N/A |  | N/A |  | N/A |  | N/A
Net loans |  | 6,719,753 |  |  | 6,850,975 |  |  | — |  |  | — |  |  | 6,850,975 |
Loans held for sale |  | 6,110 |  |  | 6,110 |  |  | — |  |  | 6,110 |  |  | — |
Accrued interest receivable |  | 33,534 |  |  | 33,534 |  |  | — |  |  | 33,534 |  |  | — |
Derivative assets |  | 79,528 |  |  | 79,528 |  |  | — |  |  | 79,270 |  |  | 258 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |
Total deposits |  | $ | 10,068,953 |  |  | $ | 10,073,217 |  |  | $ | — |  |  | $ | 10,073,217 |  |  | $ | — |
Short-term debt |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Long-term Federal Home Loan Bank advances |  | 13,331 |  |  | 13,053 |  |  | — |  |  | 13,053 |  |  | — |
Subordinated borrowings |  | 97,513 |  |  | 95,006 |  |  | — |  |  | 95,006 |  |  | — |
Derivative liabilities |  | 35,194 |  |  | 35,194 |  |  | — |  |  | 35,194 |  |  | — |

59

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14. NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES
Presented below is net interest income after provision for credit losses for the three and nine months ended September 30, 2022 and 2021, respectively.

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Net interest income |  | $ | 92,084 |  |  | $ | 71,368 |  |  | $ | 242,505 |  |  | $ | 221,854 |
Provision/(benefit) for credit losses |  | 3,000 |  |  | (4,000) |  |  | (1,000) |  |  | 2,500 |
Net interest after provision for credit losses |  | $ | 89,084 |  |  | $ | 75,368 |  |  | $ | 243,505 |  |  | $ | 219,354 |

60

Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SELECTED FINANCIAL DATA
The following summary data is based in part on the consolidated financial statements and accompanying notes and other information appearing elsewhere in this or prior Forms 10-Q.

| At or for the |  | At or for the
Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
NOMINAL AND PER SHARE DATA |  |  |  |  |  |  |
Net earnings per common share, diluted | $ | 0.42 |  |  | $ | 1.31 |  |  | $ | 1.34 |  |  | $ | 1.97 |
Adjusted earnings per common share, diluted (1)(2) | 0.62 |  |  | 0.53 |  |  | 1.56 |  |  | 1.28 |
Net income, (thousands) | 18,717 |  |  | 63,749 |  |  | 62,028 |  |  | 98,416 |
Adjusted net income, (thousands) (1)(2) | 27,928 |  |  | 25,695 |  |  | 72,279 |  |  | 63,814 |
Total common shares outstanding, (thousands) | 45,040 |  |  | 48,657 |  |  | 45,040 |  |  | 48,657 |
Average diluted shares, (thousands) | 45,034 |  |  | 48,744 |  |  | 46,396 |  |  | 49,963 |
Total book value per common share | 20.93 |  |  | 24.21 |  |  | 20.93 |  |  | 24.21 |
Tangible book value per common share (2) | 20.36 |  |  | 23.58 |  |  | 20.36 |  |  | 23.58 |
Dividends per common share | 0.12 |  |  | 0.12 |  |  | 0.36 |  |  | 0.36 |
Full-time equivalent staff, continuing operations | 1,300 |  |  | 1,333 |  |  | 1,300 |  |  | 1,333 |
PERFORMANCE RATIOS (3) |  |  |  |  |  |  |
Return on equity | 6.30 | % |  | 22.18 | % |  | 6.97 | % |  | 11.30 | %
Adjusted return on equity (1)(2) | 9.40 |  |  | 8.94 |  |  | 8.12 |  |  | 7.33 |
Return on tangible common equity (1)(2) | 6.76 |  |  | 23.14 |  |  | 7.46 |  |  | 11.97 |
Adjusted return on tangible common equity (1)(2) | 9.92 |  |  | 9.53 |  |  | 8.64 |  |  | 7.88 |
Return on assets | 0.66 |  |  | 2.14 |  |  | 0.73 |  |  | 1.07 |
Adjusted return on assets (1)(2) | 0.99 |  |  | 0.86 |  |  | 0.85 |  |  | 0.69 |
Net interest margin, fully taxable equivalent (FTE) (4)(5) | 3.48 |  |  | 2.56 |  |  | 3.05 |  |  | 2.60 |
Efficiency ratio (1)(2) | 62.01 |  |  | 68.76 |  |  | 66.75 |  |  | 69.32 |
FINANCIAL DATA (in millions, end of period) |  |  |  |  |  |  |
Total assets | $ | 11,317 |  |  | $ | 11,846 |  |  | $ | 11,317 |  |  | $ | 11,846 |
Total earning assets | 10,604 |  |  | 11,145 |  |  | 10,604 |  |  | 11,145 |
Total loans | 7,943 |  |  | 6,836 |  |  | 7,943 |  |  | 6,836 |
Total deposits | 9,988 |  |  | 10,365 |  |  | 9,988 |  |  | 10,365 |
Loans/deposits (%) | 80 | % |  | 66 | % |  | 80 | % |  | 66 | %
ASSET QUALITY |  |  |  |  |  |  |
Allowance for credit losses, (millions) | $ | 96 |  |  | $ | 113 |  |  | $ | 96 |  |  | $ | 113 |
Net charge-offs, (millions) | (6) |  |  | (2) |  |  | (9) |  |  | (17) |
Net charge-offs (QTD annualized)/average loans | 0.30 | % |  | 0.12 | % |  | 0.16 | % |  | 0.30 | %
Provision expense/(benefit), (millions) | $ | 3 |  |  | $ | (4) |  |  | $ | (1) |  |  | $ | 3 |
Non-accruing loans/total loans | 0.48 | % |  | 0.54 | % |  | 0.48 | % |  | 0.54 | %
Allowance for credit losses/non-accruing loans | 254 |  |  | 304 |  |  | 254 |  |  | 304 |
Allowance for credit losses/total loans | 1.21 |  |  | 1.65 |  |  | 1.21 |  |  | 1.65 |
CAPITAL RATIOS |  |  |  |  |  |  |
Common equity tier 1 capital to risk-weighted assets | 12.7 | % |  | 15.3 | % |  | 12.7 | % |  | 15.3 | %
Tier 1 capital leverage ratio | 10.1 |  |  | 9.9 |  |  | 10.1 |  |  | 9.9 |
Tangible common shareholders' equity/tangible assets (2) | 8.1 |  |  | 9.7 |  |  | 8.1 |  |  | 9.7 |

61

Table of Contents

| At or for the |  | At or for the
Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
FOR THE PERIOD: (In thousands) |  |  |  |  |  |  |
Net interest income | $ | 92,084 |  |  | $ | 71,368 |  |  | $ | 242,505 |  |  | $ | 221,854 |
Non-interest income | 16,251 |  |  | 73,635 |  |  | 53,283 |  |  | 121,839 |
Net revenue | 108,335 |  |  | 145,003 |  |  | 295,788 |  |  | 343,693 |
Provision/(benefit) for credit losses | 3,000 |  |  | (4,000) |  |  | (1,000) |  |  | 2,500 |
Non-interest expense | 81,677 |  |  | 69,460 |  |  | 218,702 |  |  | 216,486 |
Net income | 18,717 |  |  | 63,749 |  |  | 62,028 |  |  | 98,416 |
Adjusted income (1)(2) | 27,928 |  |  | 25,695 |  |  | 72,279 |  |  | 63,814 |

____________________________________________________________________________________________
(1) Adjusted measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges primarily related to acquisitions and restructuring activities. Refer to "Reconciliation of Non-GAAP Financial Measures" for additional information.
(2) Non-GAAP financial measure. Refer to "Reconciliation of Non-GAAP Financial Measures" for additional information.
(3) All performance ratios are annualized and are based on average balance sheet amounts, where applicable.
(4) Fully taxable equivalent considers the impact of tax advantaged investment securities and loans.
(5) The effect of purchase accounting accretion for loans, time deposits, and borrowings on the net interest margin was an increase in all periods presented. The increase for the three months ended September 30, 2022 and 2021 was 0.01% and 0.06%, respectively. The increase for the nine months ended September 30, 2022 and 2021 was 0.01% and 0.06%, respectively.
62

Table of Contents
AVERAGE BALANCES AND AVERAGE YIELDS/RATES
The following table presents average balances and an analysis of average rates and yields on an annualized fully taxable equivalent basis for the periods included:

| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 | 2021 |  | 2022 | 2021
(Dollars in millions) | Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis) |  | Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis)
Assets |  |  |  |  |
Loans: |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 3,926 |  | 4.53 | % | $ | 3,577 |  | 3.40 | % |  | $ | 3,802 |  | 3.89 | % | $ | 3,611 |  | 3.38 | %
Commercial and industrial loans | 1,449 |  | 5.21 |  | 1,370 |  | 4.78 |  |  | 1,423 |  | 4.60 |  | 1,612 |  | 4.71 |
Residential mortgages | 1,926 |  | 3.53 |  | 1,499 |  | 3.65 |  |  | 1,671 |  | 3.55 |  | 1,613 |  | 3.72 |
Consumer loans | 587 |  | 6.24 |  | 545 |  | 3.95 |  |  | 554 |  | 5.30 |  | 587 |  | 3.85 |
Total loans (1) | 7,888 |  | 4.54 |  | 6,991 |  | 3.77 |  |  | 7,450 |  | 4.05 |  | 7,423 |  | 3.78 |
Investment securities (2) | 2,400 |  | 2.13 |  | 2,312 |  | 2.09 |  |  | 2,557 |  | 2.02 |  | 2,255 |  | 2.21 |
Short-term investments & loans held for sale (3) | 342 |  | 1.96 |  | 1,762 |  | 0.17 |  |  | 673 |  | 0.90 |  | 1,623 |  | 0.13 |
Mid-Atlantic region loans held for sale (4) | — |  | — |  | 155 |  | 3.82 |  |  | — |  | — |  | 239 |  | 3.96 |
Total interest-earning assets | 10,630 |  | 3.91 |  | 11,220 |  | 2.86 |  |  | 10,680 |  | 3.36 |  | 11,540 |  | 2.96 |
Intangible assets | 26 |  | x | 31 |  |  |  | 27 |  |  | 33 |  |
Other non-interest earning assets | 659 |  | x | 674 |  |  |  | 648 |  |  | 696 |  |
Total assets | $ | 11,315 |  |  | $ | 11,925 |  |  |  | $ | 11,355 |  |  | $ | 12,269 |  |
Liabilities and shareholders’ equity |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
NOW and other | $ | 1,362 |  | 0.48 | % | $ | 1,316 |  | 0.05 | % |  | $ | 1,424 |  | 0.22 | % | $ | 1,343 |  | 0.09 | %
Money market | 2,737 |  | 0.46 |  | 2,716 |  | 0.16 |  |  | 2,806 |  | 0.27 |  | 2,756 |  | 0.20 |
Savings | 1,129 |  | 0.03 |  | 1,112 |  | 0.04 |  |  | 1,124 |  | 0.03 |  | 1,056 |  | 0.06 |
Time | 1,528 |  | 0.85 |  | 1,893 |  | 0.86 |  |  | 1,537 |  | 0.73 |  | 2,056 |  | 0.97 |
Total interest-bearing deposits | 6,756 |  | 0.48 |  | 7,037 |  | 0.35 |  |  | 6,891 |  | 0.32 |  | 7,211 |  | 0.38 |
Borrowings and notes (5) | 251 |  | 5.46 |  | 253 |  | 3.89 |  |  | 178 |  | 5.09 |  | 377 |  | 3.26 |
Mid-Atlantic region interest-bearing deposits (4) | — |  | — |  | 306 |  | 0.51 |  |  | — |  | — |  | 447 |  | 0.54 |
Total interest-bearing liabilities | 7,007 |  | 0.66 |  | 7,596 |  | 0.43 |  |  | 7,069 |  | 0.44 |  | 8,035 |  | 0.52 |
Non-interest-bearing demand deposits | 2,913 |  | x | 2,901 |  |  |  | 2,928 |  |  | 2,742 |  |
Other non-interest earning liabilities | 206 |  |  | 279 |  |  |  | 171 |  |  | 331 |  |
Liabilities from discontinued operations | — |  |  | — |  |  |  | — |  |  | — |  |
Total liabilities | 10,126 |  |  | 10,776 |  |  |  | 10,168 |  |  | 11,108 |  |
Total common shareholders' equity | 1,189 |  |  | 1,149 |  |  |  | 1,187 |  |  | 1,161 |  |
Total shareholders’ equity (2) | 1,189 |  |  | 1,149 |  |  |  | 1,187 |  |  | 1,161 |  |
Total liabilities and stockholders’ equity | $ | 11,315 |  |  | $ | 11,925 |  |  |  | $ | 11,355 |  |  | $ | 12,269 |  |

63

Table of Contents

| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 | 2021 |  | 2022 | 2021
| Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis) |  | Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis)
Net interest spread |  | 3.25 | % |  | 2.43 | % |  |  | 2.92 | % |  | 2.44 | %
Net interest margin (6) |  | 3.48 |  |  | 2.56 |  |  |  | 3.05 |  |  | 2.60 |
Cost of funds |  | 0.46 |  |  | 0.31 |  |  |  | 0.31 |  |  | 0.38 |
Cost of deposits |  | 0.33 |  |  | 0.22 |  |  |  | 0.22 |  |  | 0.28 |
Supplementary data |  |  |  |  |  |  |  |  |
Total deposits (In millions) | $ | 9,669 |  |  | $ | 9,938 |  |  |  | $ | 9,819 |  |  | $ | 9,953 |  |
Fully taxable equivalent income adj. (In thousands) (7) | 1,715 |  |  | 1,586 |  |  |  | 4,799 |  |  | 4,739 |  |

____________________________________
(1) The average balances of loans include nonaccrual loans and deferred fees and costs. As of September 30, 2022, deferred fees related to PPP loans was not considered material. As of September 30, 2021, deferred fees related to PPP loans totaled $0.2 million.
(2) The average balance for securities available for sale is based on amortized cost. The average balance of equity also reflects this adjustment.
(3) Interest income on loans held for sale is included in loan interest income on the income statement.
(4) The Bank sold its Mid-Atlantic branch operations and insurance operations in the third quarter of 2021. The Mid-Atlantic region loans are not included in the loan yields; however they are included in the total earning assets yield and the net interest margin. The Mid-Atlantic region deposits are not included in the deposit costs; however, they are included in the total interest-bearing liabilities cost and the net interest margin.
(5) The average balances of borrowings include the capital lease obligation presented under other liabilities on the consolidated balance sheet.
(6) Purchase accounting accretion totaled $0.3 million and $1.7 million for the three months ended September 30, 2022 and 2021, respectively. Purchase accounting accretion totaled $1.5 million and $5.0 million for the nine months ended September 30, 2022 and 2021, respectively.
(7) Fully taxable equivalent considers the impact of tax advantaged investment securities and loans. The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 27%.
64

Table of Contents
NON-GAAP FINANCIAL MEASURES
This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP adjusted earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP adjusted earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company’s GAAP financial information.
The Company utilizes the non-GAAP measure of adjusted earnings in evaluating operating trends, including components for operating revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations. These items primarily include securities gains/losses, merger costs, restructuring costs, goodwill impairment, and discontinued operations. Merger costs consist primarily of severance/benefit related expenses, contract termination costs, systems conversion costs, variable compensation expenses, and professional fees. Restructuring costs generally consist of costs and losses associated with the disposition of assets and liabilities and lease terminations, including costs related to branch sales. Restructuring costs also include severance and consulting expenses related to the Company’s strategic review.
The Company also calculates adjusted earnings per share based on its measure of adjusted earnings and diluted common shares. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to merger and acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company’s performance. Expense adjustments in 2022 and 2021 were primarily related to branch consolidations. Net losses on securities in 2022 were primarily due to unrealized equity securities losses due to changes in market conditions.
Management believes that the computation of non-GAAP adjusted earnings and adjusted earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
In 2021, the Company recorded a third quarter net gain of $52 million on the sale of the operations of the insurance subsidiary and the Mid-Atlantic branch operations. Expense adjustments in the first quarter 2021 were primarily related to branch consolidations. Third quarter 2021 adjustments included Federal Home Loan Bank borrowings prepayment costs. They also included other restructuring charges for efficiency initiatives in operations areas including write-downs on real estate moved to held for sale and severance related to staff reductions. The fourth quarter 2021 revenue adjustment was primarily related to trailing revenue on a previously reported sale, and the expense adjustment was due primarily to branch restructuring costs. Net losses on securities in both years were primarily due to unrealized equity securities losses due to changes in market conditions. The adjustment to expense in 2022 is primarily related to the consolidation of branches in 2022, along with the disposition of other unused premises and costs related to the change in business operations in the Firestone business line.
65

Table of Contents
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The following table summarizes the reconciliation of non-GAAP items recorded for the periods indicated:

|  | At or for the Three Months Ended September 30, | At or for the Nine Months Ended September 30,
(In thousands) |  | 2022 | 2021 | 2022 | 2021
GAAP Net income |  | $ | 18,717 |  | $ | 63,749 |  | $ | 62,028 |  | $ | 98,416 |
Adj: Net losses on securities (1) |  | 476 |  | 166 |  | 2,194 |  | 681 |
Adj: Net (gains) on sale of business operations and assets |  | — |  | (51,885) |  | — |  | (51,885) |
Adj: Restructuring and other expense |  | 11,473 |  | 1,425 |  | 11,526 |  | 4,917 |
Adj: Income taxes |  | (2,738) |  | 12,240 |  | (3,469) |  | 11,685 |
Total adjusted income/(loss) (non-GAAP) (2) | (A) | $ | 27,928 |  | $ | 25,695 |  | $ | 72,279 |  | $ | 63,814 |
GAAP Total revenue |  | $ | 108,335 |  | $ | 145,003 |  | $ | 295,788 |  | $ | 343,693 |
Adj: Losses on securities, net (1) |  | 476 |  | 166 |  | 2,194 |  | 681 |
Adj: Net (gains) on sale of business operations and assets |  | — |  | (51,885) |  | — |  | (51,885) |
Total operating revenue (non-GAAP) (2) | (B) | $ | 108,811 |  | $ | 93,284 |  | $ | 297,982 |  | $ | 292,489 |
GAAP Total non-interest expense |  | $ | 81,677 |  | $ | 69,460 |  | $ | 218,702 |  | $ | 216,486 |
Less: Total non-operating expense (see above) |  | (11,473) |  | (1,425) |  | (11,526) |  | (4,917) |
Less: Goodwill impairment |  | — |  | — |  | — |  | — |
Operating non-interest expense (non-GAAP) (2) | (C) | $ | 70,204 |  | $ | 68,035 |  | $ | 207,176 |  | $ | 211,569 |
(In millions, except per share data) |  |  |  |  |
Total average assets | (D) | $ | 11,315 |  | $ | 11,925 |  | $ | 11,355 |  | $ | 12,268 |
Total average shareholders’ equity | (E) | 1,189 |  | 1,150 |  | 1,187 |  | 1,161 |
Total average tangible shareholders’ equity (2) | (F) | 1,164 |  | 1,118 |  | 1,159 |  | 1,128 |
Total average tangible common shareholders' equity (2) | (G) | 1,164 |  | 1,118 |  | 1,159 |  | 1,128 |
Total tangible shareholders’ equity, period-end (2)(3) | (H) | 917 |  | 1,147 |  | 917 |  | 1,147 |
Total tangible common shareholders' equity, period-end (2)(3) | (I) | 917 |  | 1,147 |  | 917 |  | 1,147 |
Total tangible assets, period-end (2)(3) | (J) | 11,291 |  | 11,815 |  | 11,291 |  | 11,815 |
Total common shares outstanding, period-end (thousands) | (K) | 45,040 |  | 48,657 |  | 45,040 |  | 48,657 |
Average diluted shares outstanding (thousands) | (L) | 45,034 |  | 48,744 |  | 46,396 |  | 49,963 |
Earnings per common share, diluted |  | $ | 0.42 |  | $ | 1.31 |  | $ | 1.34 |  | $ | 1.97 |
Adjusted earnings per common share, diluted (2) | (A/L) | 0.62 |  | 0.53 |  | 1.56 |  | 1.28 |
Book value per common share, period-end |  | 20.93 |  | 24.21 |  | 20.93 |  | 24.21 |
Tangible book value per common share, period-end (2) | (I/K) | 20.36 |  | 23.58 |  | 20.36 |  | 23.58 |
Total shareholders' equity/total assets |  | 8.33 |  | 9.95 |  | 8.33 |  | 9.95 |
Total tangible shareholder's equity/total tangible assets (2) | (H/J) | 8.12 |  | 9.71 |  | 8.12 |  | 9.71 |
|  | x |  |  |
Performance ratios (4) |  | x |  |  |
GAAP return on equity |  | 6.30 | % | 22.18 | % | 6.97 | % | 11.30 | %
Adjusted return on equity (2) | (A/E) | 9.40 |  | 8.94 |  | 8.12 |  | 7.33 |
Return on tangible common equity (2)(5) |  | 6.76 |  | 23.14 |  | 7.46 |  | 11.97 |
Adjusted return on tangible common equity (2)(5) | (A+O)/(G) | 9.92 |  | 9.53 |  | 8.64 |  | 7.88 |
GAAP return on assets |  | 0.66 |  | 2.14 |  | 0.73 |  | 1.07 |

66

Table of Contents

Adjusted return on assets (2) | (A/D) | 0.99 |  | 0.86 |  | 0.85 |  | 69.00 |
Efficiency ratio (2) | (C-O)/(B+M+P) | 62.01 |  | 68.76 |  | 66.75 |  | 69.32 |
(in thousands) |  |  |  |  |
Supplementary data (In thousands) |  | xx |  |  |
Tax benefit on tax-credit investments (6) | (M) | $ | 620 |  | $ | 2,195 |  | $ | 1,811 |  | $ | 2,315 |
Non-interest income charge on tax-credit investments (7) | (N) | (445) |  | (1,789) |  | (1,153) |  | (1,996) |
Net income on tax-credit investments | (M+N) | 175 |  | 406 |  | 658 |  | 319 |
Intangible amortization | (O) | 1,285 |  | 1,296 |  | 3,857 |  | 3,912 |
Fully taxable equivalent income adjustment | (P) | 1,715 |  | 1,586 |  | 4,799 |  | 4,739 |

_________________________________________________________________________________________
(1) Net securities losses for the periods ending September 30, 2022 and 2021 include the change in fair value of the Company's equity securities in compliance with the Company's adoption of ASU 2016-01.
(2) Non-GAAP financial measure.
(3) Total tangible shareholders’ equity is computed by taking total shareholders’ equity less the intangible assets at period-end. Total tangible assets is computed by taking total assets less the intangible assets at period-end.
(4) Ratios are annualized and based on average balance sheet amounts, where applicable.
(5) Adjusted return on tangible common equity is computed by dividing the total adjusted income adjusted for the tax-affected amortization of intangible assets, assuming a 27% marginal rate, by tangible equity.
(6) The tax benefit is the direct reduction to the income tax provision due to tax credits and deductions generated from investments in historic rehabilitation and low-income housing.
(7) The non-interest income charge is the reduction to the tax-advantaged commercial project investments, which are incurred as the tax credits are generated.
67

Table of Contents
GENERAL
Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The following discussion and analysis should be read in conjunction with the Company’s consolidated financial statements and the notes thereto appearing in Part I, Item 1 of this document and with the Company’s consolidated financial statements and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2021 Annual Report on Form 10-K. In the following discussion, income statement comparisons are against the same period of the previous year and balance sheet comparisons are against the previous fiscal year-end, unless otherwise noted. Operating results discussed herein are not necessarily indicative of the results for the year 2022 or any future period. In management’s discussion and analysis of financial condition and results of operations, certain reclassifications have been made to make prior periods comparable. References to loan categories in the financial statements are based on collateralization.
Tax-equivalent adjustments are the result of increasing income from tax-advantaged loans and securities by an amount equal to the taxes that would be paid if the income were fully taxable based on a 27% marginal rate (including state income taxes net of federal benefit). In the discussion, unless otherwise specified, references to earnings per share and "EPS" refer to diluted earnings per common share.
Berkshire Hills Bancorp, Inc. (“Berkshire” or “the Company”) is a Delaware corporation headquartered in Boston and the holding company for Berkshire Bank (“the Bank”). Established in 1846, the Bank operates as a commercial bank under a Massachusetts trust company charter. The Bank seeks to transform what it means to bank its neighbors socially, humanly, and digitally to empower the financial potential of people, families, and businesses in its communities as it pursues its vision of being a leading socially responsible omni-channel community bank in New England and beyond. Berkshire Bank provides business and consumer banking, mortgage, wealth management, and investment services. Headquartered in Boston, Berkshire has approximately $11.3 billion in assets and operates 100 branch offices in New England and New York.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (referred to as the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (referred to as the Securities Exchange Act), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our outlook for earnings, net interest margin, fees, expenses, tax rates, capital and liquidity levels and other matters regarding or affecting Berkshire and its future business or operations. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “outlook,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. Such statements further include statements about expectations regarding inflation and interest rates, economic activity, supply chains, the Russian invasion of Ukraine, market conditions, and stock repurchases.
These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, inflation and changes in the interest rate environment that reduce our margins and yields, reduce the fair value of financial instruments or reduce our volume of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make whether held in portfolio or sold in the secondary market, legislative and regulatory change, changes in the financial markets, the effects of the COVID-19 pandemic, including impacts on the Company, its customers, and the communities where it operates, international conflict in Europe and elsewhere, and other risks and uncertainties disclosed from time to time in documents that Berkshire Hills Bancorp files with the Securities and Exchange Commission, including the Risk Factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
In addition, Berkshire’s past results of operations do not necessarily indicate Berkshire’s combined future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. Berkshire is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. Berkshire qualifies all of its forward-looking statements by these cautionary statements.
68

Table of Contents
SUMMARY
Berkshire’s quarterly revenue and operating earnings advanced in 2022 compared to the fourth quarter of 2021, reflecting growth and profitability under its BEST strategic plan which was initiated near midyear 2021. Results have also benefited from a strong credit environment and from market interest rate increases which began after the start of 2022. The Company’s interest rate risk profile is positioned to benefit earnings from further interest rate increases expected by the markets through the rest of the year.
The BEST plan targeted getting better before getting bigger, and this was a primary focus in the second half of 2021 as various expense and profitability initiatives were undertaken and less strategic operations were ended, including the sale of Mid-Atlantic branch operations and insurance operations in the third quarter of 2021. The refocus on core markets and operations and the reinvestment of resources into frontline bankers and technology contributed to the resumption of loan growth in 2022. Share repurchases over the last year to return excess capital to shareholders produced a 7% decrease in outstanding shares over the last twelve months, which has further supported growth in per share earnings and return on equity.
The sale of operations in the third quarter of 2021 inflated revenue and earnings in the third quarter and first nine months of 2021. As a result, GAAP revenue and earnings declined in 2022 compared to these periods. Adjusted measures of revenue and earnings, which do not include these sale gains, advanced in 2022 compared to 2021 in both the third quarter and first nine months of the year. Third quarter earnings per share decreased year-over-year by 68% to $0.42, while adjusted earnings per share increased by 18% to $0.62. Total third quarter net revenue decreased by 25%, while adjusted revenue increased by 17%.
The Company’s BEST plan sets goals for certain non-GAAP adjusted profitability measures. The Company advanced strongly in 2022 towards the target ranges for adjusted return on assets, adjusted return on tangible equity, and adjusted pre-tax pre-provision net revenue.
Third quarter 2022 financial highlights are shown below. Comparisons are year-over-year unless otherwise noted:
•6.8% return on tangible common equity and 9.9% adjusted return on tangible common equity
•11% increase quarter-over-quarter in total net revenue; 10% increase in adjusted net revenue
•3.48% net interest margin, increased from 3.11% in 2Q22 and 2.56% in 3Q21
•62% efficiency ratio, improved from 67% in 2Q22 and 69% in 3Q21
•2% end-of-period loan growth quarter-over-quarter; 16% growth year-over-year
•0.74% delinquent and non-accrual loans/loans
•7% reduction in period-end shares outstanding year-over-year reflecting stock buybacks
•Prepayment of $75 million in subordinated debt in September 2022
Credit metrics remained strong in 2022, and earnings benefited from a release of the credit loss allowance for the year-to-date. The allowance continues to provide comparatively strong coverage of the loan portfolio. The Company’s balance sheet positioning includes:
•Significant liquidity available through short and long term investments and off-balance sheet sources. Loans/deposits measured 80% at period-end
•Positive asset sensitivity to rising interest rates, with a 2.4% modeled benefit to first year net interest income compared to a static scenario in the event of a 100 basis point upward interest rate shock
•Stock repurchase plan approved for up to $140 million in repurchases, with $105 million completed in the first nine months of 2022
•Strong regulatory capital metrics, with a 12.7% period-end common equity tier 1 capital ratio
During the second quarter of 2022, Moody’s Investors Service assigned first time issuer ratings with an investment grade rating of Baa3 to Berkshire Hills Bancorp and Berkshire Bank, with a positive outlook. Moody’s assigned an A3 long-term deposit rating to the Bank. Also, in the second quarter, KBRA (Kroll Bond Rating Agency) affirmed senior unsecured investment grade ratings of BBB for Berkshire Hills Bancorp and BBB+ for Berkshire Bank, with a stable outlook. KBRA affirmed a BBB+ deposit rating for the Bank. In conjunction with the issuance of $100 million in subordinated notes, an amount equal to the net proceeds of which will be used to finance or refinance new
69

Table of Contents
or existing social and environmental projects (a “Sustainability Bond”),, the Company implemented its Sustainable Financing Framework, which received a favorable rating from Sustainalytics, a leading ESG ratings firm. This was the first Sustainability Bond issued by a U.S. community bank with assets under $150 billion.
In accordance with its BEST plan, Berkshire continued recruiting front line bankers and developing technology initiatives in the first nine months of 2022. The Company continues to promote employees from within the organization and to bring on board knowledgeable bankers to deepen long-term relationships with its customers. Berkshire Bank recently announced an expanded partnership with fintech Narmi to create a best-in-class digital banking experience for consumers and small businesses, which is targeted for implementation in 2023. For more information about the BEST plan, please see Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent report on Form 10-K.
Since year-end 2021, inflation has accelerated, with the consumer price index increasing 8.2% year-over-year in September 2022. In response, the Federal Reserve Bank has embarked on monetary tightening policies, resulting in increased interest rates. The Federal Reserve has indicated that further tightening is anticipated. The average federal funds target rate increased from 0.25% in the third quarter of 2021 to 2.37% in the third quarter of 2022, reaching 4.00% as of November 7, 2022. The average ten year treasury increased from 1.53% to 3.10% for these periods, reaching 4.21% as of November 7, 2022. The possibility of a recession induced by monetary policy is an increasing market concern for 2023, although business conditions remained solid in the Company’s markets through period-end. The Company is pursuing its plans for growth under its BEST plan based on its favorable niche in a consolidating regional market and its distinctive strategy based on its Digitouch SM approach to customer engagement and its community service message that where you bank matters.
On October 13, 2022 the Company and the Bank announced that Subhadeep Basu, Chief Financial Officer of the Company and the Bank, resigned effective October 7, 2022, for personal reasons and to subsequently pursue other career interests. Mr. Basu agreed to be available as an advisor to the Company to assist with transition matters through December 31, 2022. The Company and Berkshire Bank appointed Senior Vice President and Chief Accounting Officer Brett Brbovic, age 42, as Interim Chief Financial Officer, effective October 7, 2022, and is in the process of searching for a new Chief Financial Officer through an executive search process. Mr. Brbovic first joined the Company and Berkshire Bank from KPMG LLP in 2012 as Vice President and Controller and has served as Senior Vice President and Chief Accounting Officer since 2015.
On November 4, 2022, the Company announced that it had increased its quarterly dividend to shareholder by 50% to $0.18 per share. This reflected growth in earnings since the announcement of the BEST strategic transformation plan in May 2021. The $0.18 dividend represents a yield of approximately 2.6% based on Berkshire’s closing share price of $27.44 on November 3, 2022 and is equivalent to a 29% payout compared to third quarter 2022 adjusted earnings.
70

Table of Contents
COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2022 AND DECEMBER 31, 2021
Summary: Total assets decreased by $0.3 billion to $11.3 billion due primarily to lower values of available for sale securities. A $0.9 billion reduction in excess cash was the primary funding source for loan growth totaling $1.1 billion. Cash and equivalents decreased to 6% of total assets from 14%. Most asset quality metrics remained at relatively favorable levels. Total deposits decreased by 1%, and the ratio of loans/deposits increased to 80% from 68%. The book value of equity decreased primarily due to the unrealized bond losses, which are not applied against regulatory capital. The regulatory measure of common equity tier one capital decreased to 12.7% from 15.0% due primarily to the loan portfolio growth. The Company views its liquidity and capital, including the contribution of retained earnings, as well positioned to support ongoing organic growth and shareholder distributions.
Investments: The portfolio of investment securities decreased by $458 million, or 18%, to $2.09 billion during the first nine months of 2022. This decrease was primarily due to the unrealized loss on securities available for sale, which resulted from interest rate increases in the first nine months of 2022. The unrealized loss on securities available for sale increased from $4 million, or 0.2% of book value, at year-end 2021 to $248 million, or 14.4% of book value, at period-end. Additionally, proceeds from securities maturities and amortization contributed funding for the growth of the loan portfolio. Proceeds from maturities, calls, and prepayments of investments securities totaled $483 million for the first nine months of 2022. The average life of the bond portfolio increased to 6.9 years from 4.6 years due primarily to slower prepayments of mortgage related securities in the rising rate environment. The investment portfolio is viewed as a significant source of liquidity for the Bank, as 93% of the $1.5 billion available for sale portfolio consists of Agency mortgage related products and Treasury notes. The investment portfolio yield was 2.13% in the third quarter of 2022, compared to 2.04% in the fourth quarter of 2021.
Loans: Total loans increased by $1.12 billion, or 16%, to $7.94 billion in the first nine months of 2022. Loan growth of 14% in the first half was followed by 2% growth in the third quarter. Growth was concentrated in a $641 million, or 46%, increase in residential mortgages and a $409 million, or 8%, increase in commercial loans. Loans increased in all major categories as a result of the Company’s BEST initiatives which included stronger production from frontline bankers, talent recruitment, and channel expansion. Prepayments slowed in the rising rate environment. Loan demand moderated in the third quarter reflecting the impact of higher interest rates and potential prospects for a future recession.
Overall loan yields increased from the fourth quarter of 2021 due mainly to increases in market interest rates, primarily in relation to loans repricing within three months. These loans totaled $2.96 billion, or 38% of total loans and loan yields were expected to benefit further in the fourth quarter based on market expectations for additional interest rate increases. The Company measures its loan beta, which is the ratio of the change in loan yields to a market index. Compared to the average federal funds target rate, the beta for the total loan portfolio measured 36% comparing the third quarter of 2022 to the fourth quarter of 2021. Comparing the most recent quarter to the linked quarter, the loan beta was 38%. The magnitude and consistency of these betas primarily reflects the large volume of loans contractually repricing based on Prime. LIBOR, or SOFR based indices.
As part of its BEST program, Berkshire has invested in expanding its retail originations team and its correspondent platform. The Company also purchased residential mortgages from area lenders. Most mortgage bookings were jumbo mortgages held for investment. New loan volumes were predominantly fixed rate early in the year and gradually transitioned to primarily 7/1 hybrid adjustable-rate mortgages in the third quarter. The mortgage portfolio expanded from 20% of total loans at the start of the year to 26% at period-end. The portfolio yield decreased from 3.82% in the fourth quarter of 2021 to 3.53% in the most recent quarter, including the impact of the shorter duration adjustable rate mortgages added in 2022. Portfolio growth was substantially funded through the reinvestment of excess short-term investments accumulated from loan run-off in 2021.
Commercial real estate and commercial and industrial loans increased by 8% and 9% respectively in the first nine months of the year. Total commercial loans decreased by 1% in the third quarter, including outplacements of targeted credits, as well as seasonal impacts on loan closings in the third quarter. The Company’s commercial loan pipeline at period-end increased compared to the midyear pipeline. The $295 million nine month increase in commercial real estate loans was concentrated in a $97 million, or 19%, increase in multifamily loans and a $129
71

Table of Contents
million, or 6%, increase in loans to commercial real estate non-owner occupied properties. The $111 million increase in commercial and industrial loans was driven by growth in asset-based lending related loans due to both customer growth and increased line utilization.
The average yield on commercial real estate loans increased by 1.04% to 4.53% in the most recent quarter compared to the fourth quarter of 2021. For these periods, the average yield on commercial and industrial loans increased by 0.83% to 5.21%. Many of the commercial loans are indexed to prime, LIBOR, or SOFR which have responded quickly to changes in market interest rates. The impact of these increases on borrowers has been more muted due to the benefit of interest rate swaps with fix customer payments. The notional amount of borrower interest rate swaps totaled approximately $1.7 billion at period-end, measuring approximately 32% of the commercial portfolio. The Company continues to maintain its commercial underwriting standards and growth is managed within a detailed system of hold limits based on industry and loan type. Variable rate loan underwriting includes a test of debt service coverage for up to a 300 basis point upward interest rate shock.
After midyear, the Company announced that it would cease originating new loans in its Firestone Financial specialty lending operation and allow the portfolio to run-off. This was a strategic decision in the context of Berkshire’s BEST plan to focus on core markets and products. The Firestone portfolio stood at $153 million at period-end and continues to have strong credit performance in line with its long history.
Consumer loans increased by $67 million, or 13%, in the first nine months of the year. Growth was driven by consumer unsecured loans originated through the Company’s partnership with the fintech Upstart. This portfolio totaled $152 million at period-end, and most of these loans were originated during the first half of the year and were generally subject to the Company’s prime underwriting standards. In July 2022 the Company announced that, due to the prevailing economic uncertainty, it was ceasing new originations through this partnership. Credit performance of this portfolio has exceeded the Company’s expectations. The yield on the consumer portfolio increased by 2.28% to 6.24% in the first nine months of 2022, reflecting the higher coupon consumer unsecured loans added in the first half of the year, along with the benefit of higher interest rates on prime-indexed home equity loans.
Asset Quality and Credit Loss Allowance: Major asset quality metrics remained solid as of third quarter-end, with many metrics at better levels than pre-pandemic. Non-accruing loans measured 0.48% of total loans, compared to 0.52% at year-end 2021. Annualized net loan charge-offs measured 0.16% of average loans for the first nine months of the 2022, compared to 0.29% in fiscal year 2021. Accruing delinquent loans measured a relatively low 0.26% of total loans, compared to 0.63% at year-end 2021. This included loans 30-89 days past due measuring 0.18% of loans. Period-end non-accruing loans totaling $38 million included $21 million in commercial and industrial loans which was concentrated in one manufacturing credit with operational challenges which were episodic rather than systemic in nature. This credit accounted for $4 million of the $6 million in net charge-offs in the quarter. Non-accruing commercial real estate loans decreased to a low $3 million from $8 million, including the benefit of the $11 million sale of certain problem and potential problem loans to proactively take advantage of attractive market conditions during the period. At period-end, accruing troubled debt restructurings totaled $7 million and accruing loans over 90 days delinquent totaled $6 million. Total criticized loans decreased to 2.5% of loans from 3.5% of loans, including classified loans which decreased to 1.6% of loans from 2.1% of loans. Classified loans include accruing substandard loans, which are regarded as potential problem loans and which declined to 1.1% of loans from 1.6% over the nine month period.
The allowance for credit losses on loans decreased in the first nine months of 2022 to $96 million from $106 million. The ratio of the allowance to total loans decreased to 1.21% from 1.55%. This decline was primarily due to improved asset quality metrics and a reduction in the potential losses from economic and social disruptions related to COVID-19 conditions, while including a qualitative assessment of risks related to market and inflation conditions and future possible recession conditions. The allowance covers all current expected credit losses for all loans. In relation to outstanding loans, the allowance for most of the loan categories decreased.
72

Table of Contents
Deposits and Borrowings: Total deposits decreased by $81 million, or 1%, to $9.99 billion during the first nine months of 2022. This decrease included a $73 million reduction in brokered deposits, and total other total deposits were essentially unchanged for the period. Non-interest-bearing demand deposit accounts decreased by $112 million or 4%. This decrease was more than offset by NOW deposit growth of $70 million, or 7%, and money market deposit growth of $95 million, or 3%. Payroll deposits, which fluctuate daily, totaled $1.05 billion at period-end. Deposit activity included the impact of increased customer spending rates as well as market competition from higher yielding investment instruments in the rising interest rate environment.
The cost of deposits increased to 0.33% in the third quarter of 2022, compared to 0.19% in the fourth quarter of 2021. Increases were concentrated in a 0.44% increase to 0.48% in the cost of NOW and related deposits and a 0.30% increase to 0.46% in the cost of money market deposit accounts. Deposit costs increased in most major account categories due to the impact of sharply rising market interest rates during the period.
The Company measures its deposit beta, which is the ratio of the change in deposit costs to a market index. Compared to the average federal funds target rate, the deposit beta measured 6% for the above periods, rising to 12% for the change in costs in the most recent quarter compared to the linked quarter. Deposit rates were relatively unchanged through the first half of the year, and began increasing in the most recent quarter. The Company anticipates that further increases in market interest rates will lead to higher deposit costs in future periods, including higher rates paid as well as shifts in balances from lower cost accounts to higher cost accounts.
The Company’s wholesale funds consist of brokered deposits and borrowings. Wholesale funds decreased by $49 million, or 15%, to $289 million over the first nine months of the year.
On June 30, 2022, Berkshire completed the sale at par of $100 million in subordinated notes bearing interest at a fixed rate of 5.5% for the first five years. The notes will then reset quarterly to a floating rate per annum equal to a benchmark rate which is expected to be the Three-Month Term SOFR, plus 249 basis points. The notes have a ten year final maturity and generally may be called at par after five years. Berkshire is the first public U.S. community bank holding company with under $150 billion in total assets to issue a Sustainability Bond. The Company intends to use an amount equal to the net proceeds of its Sustainability Bond issuance to finance or refinance new or existing social and environmental projects consistent with its Sustainable Financing Framework. Sustainalytics, a Morningstar Company, and the global leader in high-quality ESG research, ratings, and data, has independently verified that Berkshire’s Sustainable Financing Framework "is credible and impactful and in alignment with” International Capital Market Association (ICMA) guidelines and principles.
On September 28, 2022, the Company prepaid the balance of its existing $75 million in subordinated debt bearing interest at 6.875% which became callable for the first time on that date since the original issuance ten years ago. Third quarter 2022 interest expense included the additional cost of carrying these two subordinated debt obligations for one quarter.
Derivative Financial Instruments: During September 2022, the Company added $400 million of receive fix/pay SOFR interest rate swaps through a combination of immediate and forward-settling cash flow hedges which were intended to reduce the earnings exposure to downward rate movements. This was in response to the increased sensitivity to a downward interest rate shock following the rapid rise in market interest rates during the year. Except for these swaps, there were no material changes during the first nine months in the portfolio of outstanding derivative financial instruments. The estimated fair value of these instruments was a liability of $49 million at period-end, which decreased from an asset of $43 million at year-end 2021 due to the impact of changes in interest rates on the value of outstanding commercial loan interest rate swaps.
Shareholders' Equity: Total shareholders’ equity decreased by $240 million, or 20% to $943 million in the first nine months of 2022. This decrease was primarily due to a $185 million net other comprehensive loss resulting mostly from the previously discussed $245 million unrealized loss on debt securities available for sale as a result of the increase in market interest rates. Additionally, the Company repurchased $105 million in common shares during this period, representing approximately 8% of shares outstanding at year-end 2021.
73

Table of Contents
The unrealized securities losses are not counted against regulatory equity. As a result, the decrease in regulatory capital was more modest. Including the impact of the loan growth, the common equity tier one capital remained relatively strong, decreasing from 15.0% to 12.7% in the first nine months of 2022. Similarly, the relatively strong risk based capital ratio decreased to 15.0% from 17.3%.
Across the banking industry, the unrealized losses on available for sale investment securities have led to significant compression of book value and the non-GAAP financial measure of tangible book value. The Company’s
book value per share decreased by 14% to $20.93 and period-end equity/assets decreased from 10.2% to 8.3%. Tangible book value per share decreased by 14% to $20.36, and the period-end ratio of tangible common equity/tangible assets decreased from 10.0% to 8.1%.
During the first nine months of 2022, the Company continued the quarterly shareholder dividend at $0.12 per share level it was reduced to as a result of the pandemic beginning in the third quarter of 2020. On November 4, 2022, the Company announced that it had increased its quarterly dividend to shareholders by 50% to $0.18 per share. This reflected growth in earnings since the announcement of the BEST strategic transformation plan in May 2021. The $0.18 dividend represents a yield of approximately 2.6% based on Berkshire’s closing share price of $27.44 on November 3, 2022 and is equivalent to a 29% payout compared to third quarter 2022 adjusted earnings.
74

Table of Contents
COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND SEPTEMBER 30, 2021
Summary: Berkshire’s third quarter net income decreased by 71% to $19 million. Results in 2021 included $52 million in gains on the sale of insurance and branch operations. The non-GAAP measure of adjusted income, which excludes non-operating items and sale gains, increased by 9% to $28 million. The benefit of a 29% increase in net interest income was partially offset by lower non-interest income and higher credit loss provision expense.
Third quarter 2022 GAAP earnings per share totaled $0.42 and adjusted earnings per share totaled $0.62, which was the highest quarterly adjusted EPS since 2019. This included the benefit of share repurchases, which reduced outstanding shares by 7% year-over-year. GAAP EPS decreased by 68%, while adjusted EPS increased by 18%.
Berkshire’s nine month net income decreased by 37% to $62 million. Adjusted net income improved by 13% to $72 million. In addition to adjusting for sale gains, the major adjustments to adjusted earnings related to restructuring expenses primarily consisting of branch consolidations. Nine month 2022 earnings per share totaled $1.34 and adjusted earnings per share totaled $1.56.
In the most recent quarter, the return on assets measured 0.66% and the adjusted return on assets measured 0.99%. The return on tangible equity measured 6.76% and the adjusted return on tangible equity measured 9.92%. By growing operating revenue and maintaining disciplined operating expenses, Berkshire has been achieving positive operating leverage. The third quarter efficiency ratio improved to 62% in 2022 compared to 69% in 2021.
Net Interest Income: Third quarter net interest income increased by 29% to $92 million. Nine month net interest income increased by 9% to $243 million. These increases were driven by increases of 36% and 17%, respectively, in the net interest margin. This reflected the benefit of rising interest rates in 2022 as well as the use of excess cash accumulated in 2021 and used reinvesting primarily in residential mortgage growth in 2022.
The third quarter net interest margin increased year-over-year by 91 basis points to 3.48% from 2.56%. This was the highest quarterly net interest margin reported by the Company in four years. This primarily reflects the benefit of the 36% loan beta compared to the 6% deposit beta in the environment of rapidly rising market interest rates since the fourth quarter of 2021. Most loans repricing within three months are indexed to Prime, LIBOR, or SOFR which change rapidly as market interest rates change. Deposit cost changes depend on market factors and typically operate with a lag, which has been pronounced in the current environment of rapid market rate increases.
At period-end, the Company remained asset sensitive and was positioned to benefit from further increases in market interest rates in 2022 based on market forecasts. This is discussed below in Item 3 “Quantitative and Qualitative Disclosures About Market Risk”. E xpected market interest rate increases in the fourth quarter may provide further benefit to the net interest income. Based on the Company’s interest rate risk modeling, the deposit beta increase over time, and the cost of wholesale funds may also affect the cost of interest bearing liabilities, depending on market and competitive conditions and the Company’s asset and liability management strategies. The structure of deposits, including the percentage of non-interest-bearing deposits (which was 29% of total deposits at period-end) may also affect the margin depending on future economic and monetary conditions.
Non-Interest Income: Total fee income decreased year-over-year by 29% to $15 million, and for nine months year-to-date fee income decreased by 26% to $48 million. Excluding insurance commissions and fees from insurance operations sold at the end of September 2021, the decreases in this income measured 24% and 17% for the above respective periods. This was mostly due to decreases in loan fees totaling $5 million and $9 million for the above periods. This was primarily due to decreases of $3 million and $6 million, for the above respective periods, in SBA originations related income reflecting lower market volumes and premiums as a result of the increase in market interest rates. Berkshire continued to rank high in national SBA loan originations, placing in the 22nd position nationally based on SBA 7(a) loan approval data for the SBA fiscal year ending September 30, 2022. Income from commercial loan swap fees and fair value changes also decreased for the three and nine month periods. Deposit related fees increased by 9% and 6% respectively for these periods despite the sale of branch operations in 2021, reflecting increased consumer transaction activity year-over-year.
75

Table of Contents
Provision for Credit Losses on Loans: The third quarter provision was a $3 million expense in 2022 compared to a $4 million benefit in 2021. For the first nine months, the provision was a $1 million benefit in 2022 compared to a $2 million expense in 2021. The Company has steadily reduced the coverage of its allowance for credit losses on loans based on improvements in asset quality and forecast conditions. Charge-offs have remained at relatively favorable levels. These improvements have generally offset the impact of loan portfolio growth and increased consumer lending which would otherwise require additional provision expense. The most recent quarter was the first quarter with a provision expense since the first quarter of 2021.
Non-Interest Expense and Tax Expense: Total non-interest expense increased year-over-year by 18% for the third quarter and by 1% for the first nine months. The non-GAAP financial measure of adjusted non-interest expense increased by 3% for the third quarter and decreased by 2% for the first nine months. Expense in 2022 benefited from the sale of operations and restructuring actions in 2021. Cost saves from these initiatives were targeted towards increased spending for bankers and technology. The Company generally targets operating expenses in the range of $68 - $70 million on a quarterly basis. Adjustments to nine month expense totaled $5 million in 2021 and $12 million in 2022 and were primarily related to branch consolidations and the sale of operations in 2021 and branch consolidations in 2022. The total branch count decreased from 130 branches at the start of 2021 to 106 branches at year-end 2021 and 100 branches at third quarter-end in 2022. Full time equivalent staff decreased from 1,505 positions at the start of 2021 to 1,319 positions at year-end 2021 and 1,300 positions at September 30, 2022.
The effective income tax rate was 21% for the first nine months of 2021 and 22. The tax rate benefit from lower pre-tax income in 2022 was offset in part by lower benefits on investment tax credit investments due to slower construction activity in 2022 and longer schedules for recognizing the benefits in income.
Total Comprehensive Income: Total comprehensive income includes net income together with other comprehensive income, which primarily consists of unrealized gains/losses on debt securities available for sale, after tax. Total comprehensive income for the first nine months of the year was a loss of $123 million in 2022, compared to income of $75 million in 2021, reflecting the impact in both periods of rising medium term interest rates on the bond portfolio.
Liquidity and Cash Flows: Please see ““Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations--Liquidity and Cash Flows” in the most recent report on Form10-K for a more expansive discussion of these topics.
For the first nine months of 2022, loan growth was the primary use of cash, which was mainly sourced from short-term investments and investment securities. The ratio of cash and cash equivalents to total assets decreased to 6% from 14% over this period. Investment securities and wholesale funding are sources of cash to support future loan growth. Unused FHLBB borrowing availability stood at $1.2 billion at period-end. Cash at the parent company stood at $119 million at period-end
The Company continues to view itself as having sufficient liquidity with a high quality and liquid securities portfolio and well-positioned wholesale funding sources. The new Moody’s ratings introduced in 2022, including the A3 long-term bank deposit rating, support Berkshire’s liquidity profile. The relative stability of deposit costs during 2022 has also been positive as an indicator of core funding stability in the Company’s markets.
The ratio of loans to deposits measured 80% at period-end, compared to 68% at the start of the year. A number of metrics are utilized in establishing optimal and minimal liquidity targets and the Company is generally well positioned across these metrics.
The rising rate environment potentially constrains industry deposit demand growth. Additionally, the rising rates have contributed to the extension of the investment portfolio average life and the unrealized bond losses are a potential constraint on some options for the use of investments to support overall liquidity. The unrealized losses would affect capital if they were realized through the sale of the related securities, which could then impact the
76

Table of Contents
management of capital. The excess liquidity which has been widespread throughout the financial system during the pandemic may constrain funding sources if systemwide liquidity is reduced. The Company is monitoring various scenarios as it continues to pursue organic growth and market share gains in the context of its BEST strategic plan.
The parent relies over the long term on dividends from the Bank to fund its debt obligations and capital returns to shareholders. The Bank requires regulatory approval from the FDIC and the Massachusetts Division of Banks to provide dividends to the parent
Capital Resources: Please see the “Shareholders’ Equity” section of the Comparison of Financial Condition for a discussion of shareholders’ equity together with Note 10 – Capital Ratios and Shareholders' Equity in the notes to the consolidated financial statements. Additional information about capital resources and regulatory capital is contained in the notes to the consolidated financial statements and in the Company's most recent Form 10-K. The Company monitors the impacts of rising rates, credit stress scenarios, and organic growth in assessing its capital adequacy and plans.
The Company’s BEST plan includes the optimization of capital, including reducing excess capital through organic growth and capital returns to shareholders. The operation of this plan was evidenced in the first nine months of the year through the 16% loan growth and $105 million in share repurchases. Additionally, shareholder dividends paid totaled $16 million for this period. Capital optimization was also supported through the subordinated debt issuance, reducing the coupon compared to the existing debt which was later prepaid.
The Company primarily focuses on regulatory capital measures in assessing capital, including the common equity Tier 1 capital ratio. This ratio stood at 12.7% at period-end. This also includes ongoing assessment of the shareholder cash dividend in relationship to earnings and to competitive practices. The Company announced a 50% increase in the quarterly shareholder dividend from $0.12 per share to $0.18 per share on November 4, 2022.
The unrealized available sale securities losses reduce the book value of equity. These losses are expected to accrete back into equity as the securities season to maturity. T hese losses are not deducted from regulatory capital which is the primary focus of the Company’s capital management. The measure of tangible book value is a focus of bank investors, together with the ratio of tangible equity to tangible assets and the measure of tangible book value per share. The tangible equity to tangible assets ratio decreased to 8.1% from 10.0% during the first nine months of the year, and tangible book value per share decreased by 14% to $20.36 from $23.69. The Company is monitoring its tangible book value related metrics and it believes that its condition at period-end was within a general range for peers at that date. Further decreases in these metrics were anticipated for the remainder of 2022 based on market expectations for further rate increases.
In acting as a source of strength for the Bank, the Company relies in the long term on capital distributions from the Bank in order to provide operating and capital service for the Company, which in turn can access national financial markets to provide financial support to the Bank. Capital distributions from the Bank to the parent company presently require approval by the FDIC and the Massachusetts Division of Banking. Increased distributions from the Company to shareholders require notice to and nonobjection from the Federal Reserve Bank. For the first nine months of 2022, the Bank paid $108 million in dividends to the parent company.
LIBOR Transition: Please see the Company’s most recent Annual Report on Form 10-K for additional information regarding the LIBOR transition. In addition to the commercial loan interest rate swaps and back-to-back counterparty offsetting swaps, the Company’s primary exposure in managing the transition relates to LIBOR based commercial and mortgage loans. The Company introduced new loan documentation switching from LIBOR to one month term SOFR for new commercial loans originated beginning in 2022. As of September 30, 2022, the Company had approximately $2.0 billion in LIBOR based commercial loans, including $1.8 billion maturing after the LIBOR cessation date at midyear 2023. The Company is focused on converting the majority of these loans to one month term SOFR in the next six months, working with customers, counsel, and its core loan servicing provider. The Company had converted $258 million in outstanding loans through period-end.
CORPORATE RESPONSIBILITY UPDATE
77

Table of Contents
Our Commitment to Environmental, Social, Governance (ESG) & Corporate Responsibility
Berkshire is committed to purpose-driven, community-centered banking that enhances value for all stakeholders as it pursues its vision of being a high-performing, leading socially responsible community bank in New England and beyond. Berkshire provides an ecosystem of socially responsible financial solutions, actively engages with its communities, and harnesses the power of its business to support the economy, empower financial access and success, and invest in a low-carbon future.
ESG factors are integral to our vision, mission, risk management practices, sustainable finance activities and Berkshire’s Exciting Strategic Transformation (BEST). Berkshire focuses its strategy on material topics impacting its business and stakeholders including leadership & governance, human capital management, equity & inclusion, responsible banking & cybersecurity, financial access & affordability, environmental sustainability & climate change and community investment. Because our vision is to be a high-performing, leading socially responsible community bank in New England and beyond, we were one of the first banks in the country to establish a dedicated committee of our Board of Directors to oversee ESG matters, were the first U.S. community bank holding company with under $150 billion in assets to issue a Sustainability Bond and are a leader among community banks in integrating ESG standards into our business strategy and operations.
We continue to engage directly with our stakeholders to share information about the progress in our ESG performance, including through our Corporate Responsibility website, corporate annual report, and proxy statement. Additionally, our annual Corporate Responsibility Report, which is aligned with Sustainability Accounting Standards Board (“SASB”) commercial bank disclosure topics along with the Task Force for Climate Related Financial Disclosures (TCFD), details the Company's ESG efforts and programs.
Climate Change & Sustainability
Climate Change poses unprecedented risks and opportunities to the world. Berkshire expects that its efforts to manage its environmental footprint, mitigate the risks and impacts associated with climate change, and finance the transition to a low-carbon future will allow it to strengthen its positioning as a high-performing, leading socially responsible community bank. The Company continues to evolve its practices to reflect its community bank mission, expected regulatory requirements, sustainable finance opportunities as well as the size, scope, and complexity of its operations.
78

Table of Contents
Key ESG & Corporate Responsibility Quarterly Developments
•BEST Community Comeback: As a result of the collective efforts of its employees, Berkshire is making steady progress towards the achievement of its "BEST Community Comeback" goals. The multi-year plan focuses on four key areas: fueling small businesses, community financing and philanthropy, financial access and empowerment, and funding environmental sustainability.
•Current ESG Performance: The Company remained within its BEST ESG goal with a top 23% composite performance in leading ESG indexes in the U.S. for its Environmental, Social and Governance (ESG) ratings. As of September 30, 2022 the Company has ratings of: MSCI ESG- BBB; ISS ESG Quality Score - Environment: 2, Social: 1, Governance: 2; and Bloomberg ESG Disclosure- 62.81. The Company also receives a rating by Sustainalytics. Berkshire continues to rank among the top 1% of all U.S. Banks for ESG in Bloomberg this year.
•Recognition & Continued Community Impact: The Boston Business Journal named Berkshire one of Massachusetts' Top Corporate Charitable Contributors for the tenth consecutive year. The honor further demonstrates Berkshire's deep commitment to lifting-up its communities which includes recent announcements of $100,000 in scholarships to forty (40) students continuing in their pursuit of an undergraduate degree from an accredited non-profit college or technical school and more than $600,000 in third quarter philanthropic contributions through Berkshire's Foundation to support projects enhancing the quality of life and economic vibrancy in communities where the bank operates.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements
included in its most recent Annual Report on Form 10-K. Modifications to significant accounting policies made during the year are described in Note 1 to the consolidated financial statements included in Item 1 of this report. The preparation of the consolidated financial statements in accordance with GAAP and practices generally applicable to the financial services industry requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and to disclose contingent assets and liabilities. Actual results could differ from those estimates.
Management has identified the Company's most critical accounting policies as related to:
• Allowance for Credit Losses on Loans
• Fair Value Measurements
These policies are considered most critical in that they are important to the Company’s financial condition and results, and they require management’s subjective and complex judgment as a result of the need to make estimates about the effects of matters that are inherently uncertain. Both of these policies were significant in determining income and financial condition in the financial statements. There is further discussion of the application of these policies in the Form 10-K.
ENTERPRISE RISK MANAGEMENT
Following sections of this report on Form 10-Q include discussion of market risk and risk factors. Risk management is overseen by the Company’s Chief Risk Officer, who reports directly to the CEO. This position oversees risk management policy, credit, loan review, compliance and information security. Enterprise risk assessments are brought to the Company’s Enterprise Risk Management Committee, and then are reported to the Board’s Risk Management, Capital, and Compliance Committee. The high level corporate risk assessment includes the following material business risks: credit risk, interest rate risk, price risk, liquidity risk, operational risk, compliance risk, strategic risk, and reputation risk, with the credit risk category having the highest weighting.
79

Table of Contents
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For additional discussion about the Company’s Quantitative and Qualitative Aspects of Market Risk, please review Item 7A of the most recent report on Form 10-K which sets forth the methodologies employed by the Company and the various aspects of its analysis of its interest rate sensitivity. Berkshire’s objective is to maintain a neutral or asset sensitive interest rate risk profile, as measured by the sensitivity of net interest income to market interest rate changes.
As of September 30, 2022, Berkshire’s balance sheet was positioned to further benefit from for the forecast rising rate environment. Shown below is a chart of the modeled change in net interest income from a static base case in the event of interest rate shocks for the scenarios illustrated.

CHANGE IN NET INTEREST INCOME
|  | 1-12 Months |  | 13-24 Months
Parallel Interest Rate Shock – Basis Points |  | % Change |  | % Change
At September 30, 2022 |  |  |  |
+200 |  | 5.0% |  | 9.9%
+100 |  | 2.4% |  | 4.7%
-100 |  | (4.9)% |  | (7.5)%
At December 31, 2021 |  |  |  |
+200 |  | 13.1% |  | 16.1%
+100 |  | 5.6% |  | 6.5%
-100 |  | (0.1)% |  | (1.2)%

The shock information above shows that the Company has become less asset sensitive in the first nine months of 2022 due primarily to the reinvestment of cash into loans, some of which are longer duration. The Company remained asset sensitive at period-end and therefore was positioned to further benefit from expected interest rate increases in the fourth quarter of 2022. The Company’s sensitivity to decreases in interest rates has become more pronounced as current higher levels of interest rates are reflected in current net interest income. The downward sensitivity had not previously been significant during the near-zero interest rate environment in recent years as asset yields remained low. The Company is actively managing earnings sensitivity to lower rates within the total context of its strategic management. The increase in cash flow hedge derivatives in the most recent quarter had the impact of limiting the increase in interest income in rising rate environments and the decrease in interest income in falling rate environments.
The Company also models net interest income sensitivity to interest rate ramps. At period-end, the year one sensitivity to a +100 basis point interest rate ramp was 1.7% and the year two sensitivity was 4.4%. The Company also models sensitivity to yield curve twists, and sensitivity remained positive in most scenarios for widening and narrowing of the yield curve.
While the sensitivity of net interest income is the primary driver of the sensitivity of net income, the latter is more sensitive than the former since it is net of expenses. In the case of the first year of a +100 basis point scenario, the modeled shock sensitivity of net income is 5.8%.
Economic value of equity sensitivity to changes in market rates was nearly neutral at period-end , measuring 0.6%
for a +200% basis point shock.
A critical component of modeling is the assumption of deposit interest rate sensitivity. The Company continues to model the interest bearing deposit beta of approximately 30-40% for purposes of interest rate risk simulations. The resulting modeled deposit beta for all deposits is approximately 21.28%, with the volume of non-interest bearing deposits remaining unchanged in the static model base case. The actual deposit beta compared to fed funds was approximately 12% for the third quarter of 2022 compared to the second quarter of 2022. It was approximately 6% for the third quarter of 2022 compared to the fourth quarter of 2021. The actual cost of deposits in 2022 has been
80

Table of Contents
less sensitive than the Company’s traditional modeling assumptions due to the rapid increase in interest rates and high liquidity in the economy in the unusual conditions prevailing in 2022.
Modeled interest rate sensitivity depends on other material assumptions. Market risk exposure is affected by the level and shape of the yield curve in markets for financial instruments including U.S. Treasury obligations, forward interest rate derivatives, the U.S. prime interest rate, and LIBOR related rates. Also, the economic impact on customer and market behaviors of the COVID-19 pandemic remains uncertain and may cause actual events to differ from assumptions. The behavior of markets under the historically unusual conditions currently prevailing may be different from modeling assumptions, and the Company continues to monitor the markets and the assumptions in its model.
81

Table of Contents
ITEM 4. CONTROLS AND PROCEDURES
a) Disclosure controls and procedures.
The principal executive officers, including the principal financial officer, based on their evaluation of disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that the Company’s disclosure controls and procedures were effective.
b) Changes in internal control over financial reporting.
There were no changes in the Company’s internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
82

Table of Contents
PART II
ITEM 1. LEGAL PROCEEDINGS
As of September 30, 2022, neither the Company nor the Bank was involved in any pending legal proceedings believed by management to be material to the Company’s financial condition or results of operations. Periodically, there have been various claims and lawsuits involving the Bank, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans, and other issues incident to the Bank’s business. A summary of certain legal matters involving unsettled litigation or pertaining to pending transactions are as follows:
On February 4, 2020, the Bank filed a complaint in the New York State Supreme Court for the County of Albany against Pioneer Bank (“Pioneer”) seeking damages of approximately $16.0 million. The complaint alleges that Pioneer is liable to the Bank for a credit loss of approximately $16.0 million suffered by the Bank in the third quarter of 2019 as a result of Pioneer’s breach of loan participation agreements in which it served as the lead bank, as well as constructive fraud, fraudulent concealment and/or negligent misrepresentation. Pioneer has filed a motion to dismiss aspects of the Bank’s complaint, which motion was allowed in part by the court to dismiss the Bank’s negligent misrepresentation claim, and denied in part by the court to allow all other claims by the Bank to proceed. Discovery is now underway in this action. The Company wrote down the underlying credit loss in its entirety in the third quarter of 2019, but recognized a partial recovery of $1.7 million early in the second quarter of 2020. The Company has not accrued for any additional anticipated recovery at this time.
On or about August 10, 2020, a former employee of the Bank’s subsidiary First Choice Loan Services Inc. (“FCLS”) filed a complaint in the Court of Common Pleas, Bucks County Pennsylvania against FCLS and two of its former senior corporate officers generally alleging wrongful termination as a result of purported whistleblower retaliation and other violations of New Jersey state employment law. The complaint also purports to name the Bank and the Company as additional defendants, even though neither entity ever employed, paid wages to or contracted with the plaintiff. On November 16, 2020, the plaintiff filed a First Amended Complaint reiterating the same claims against the same defendants. The Company's liability insurer has provided outside litigation counsel to defend the Company and the Bank in this matter, as well as FCLS and its former senior corporate officers. On December 7, 2020, defense counsel filed Preliminary Objections on behalf of the Company, the Bank, FCLS and FCLS’s former senior corporate officers denying the plaintiff’s claims and seeking dismissal of the case and an order that the plaintiff’s claims must proceed through arbitration in accordance with contractual obligations set forth in plaintiff’s previous employment agreement with FCLS. On June 30, 2021, the court dismissed the plaintiff’s complaint without prejudice in support of FCLS’s petition to compel arbitration. The parties have mutually agreed on an arbitrator to hear the case and are preparing for arbitration proceedings that are expected to occur in the first half of 2023.
The Chapter 11 Trustee in the US Bankruptcy Court for the Western District of Michigan for Interlogic Outsourcing, Inc. (“IOI”), a failed former payroll services company, has given the Bank notice of a threatened adversary proceeding to attempt to recover losses suffered by IOI’s creditors when IOI collapsed in July 2019 as a result of a fraudulent check kiting and pyramid scheme perpetrated by its founder, owner and former CEO Najeeb Ahmed Kahn. The Trustee’s threatened adversary proceeding complaint would allege, among other things, that the Bank knew or should have known that Mr. Kahn was conducting illegal, fraudulent check kiting and running a pyramid scheme, failed to properly monitor Mr. Kahn’s activities, and did nothing to stop him to the ultimate detriment of IOI and its creditors. The Bank did not actively participate in any of Mr. Kahn’s alleged illegal actions and denies that it had any duty to monitor or prevent the same. No formal complaint or action has been filed by IOI’s Bankruptcy Trustee to date, but the parties have agreed to participate in a 2-day mediation at the end of November 2022, where they will attempt to resolve the situation by mutual agreement.
83

Table of Contents
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed herein and in Part I, “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K, which could materially affect the Company's business, financial condition, or future operating results. Please also see the earlier discussion in this report about Enterprise Risk Management. The risks described in this report and in the Annual Report on Form 10-K are not the only risks presently facing the Company. Additional risks and uncertainties not currently known to the Company, or currently deemed to be immaterial, also may materially adversely affect the Company's business, financial condition, and/or operating results. There have been no material changes in risk factors from those identified in the Form 10-K.
84

Table of Contents
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a) Recent Sales of Unregistered Securities
The Company occasionally engages in the practice of transferring unregistered securities for the purpose of completing business transactions. These shares are issued to vendors or other organizations as consideration for services performed in accordance with each contract. During the three months ended September 30, 2022 and 2021 there were no shares transferred.
(b) Not applicable.
(c) The following table provides certain information with regard to shares repurchased by the Company in the third quarter of 2022:

|  | Total number of |  | Average price |  | Total number of shares purchased as part of publicly announced |  | Maximum number of shares that may yet be purchased under
Period |  | shares purchased |  | paid per share |  | plans or programs |  | the plans or programs
July 1-31, 2022 |  | 54,921 |  |  | $ | 27.21 |  |  | 54,921 |  |  | 1,949,073 |
August 1-31, 2022 |  | 392,800 |  |  | 29.06 |  |  | 392,800 |  |  | 1,556,273 |
September 1-30, 2022 |  | 257,500 |  |  | 28.50 |  |  | 257,500 |  |  | 1,298,773 |
Total |  | 705,221 |  |  | $ | 28.71 |  |  | 705,221 |  |  | 1,298,773 |

On January 19, 2022, the Company announced that its Board of Directors approved a stock repurchase program pursuant to which the Company is authorized to repurchase shares of Company common stock at a total cost of up to $140 million through December 31, 2022. This would result in the repurchase of approximately 9% of then outstanding shares based on the share price when the plan was approved. The maximum number of shares that may be purchased under this program has been estimated based on the September 30, 2022 closing price per share of Company common stock of $27.30.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
None.
85

Table of Contents
ITEM 6. EXHIBITS

3.1 |  | Amended and Restated Certificate of Incorporation of Berkshire Hills Bancorp, Inc.(1)
3.2 |  | Amended and Restated Bylaws of Berkshire Hills Bancorp, Inc. (2)
4.1 |  | Form of Common Stock Certificate of Berkshire Hills Bancorp, Inc. (3)
4.2 |  | Certificate of Designations of Series B Non-Voting Preferred Stock of Berkshire Hills Bancorp, Inc. (4)
10.1 |  | Transition Agreement dated September 9, 2022, between Deborah A. Stephenson, Berkshire Hills Bancorp, Inc. and Berkshire Bank (5)
10.2 |  | Transition Agreement and Release of Claims dated October 12, 2022, between Subhadeep Basu, Berkshire Hills Bancorp, Inc., and Berkshire Bank (6)
31.1 |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 |  | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 |  | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101 |  | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL: (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements tagged as blocks of text and including detailed tags.
104 |  | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL.

_______________________________________
(1) Incorporated herein by reference from the Exhibits to the Form 10-Q as filed on August 9, 2018.
(2) Incorporated herein by reference from the Exhibits to the Form 8-K as filed on June 26, 2017.
(3) Incorporated herein by reference from the Exhibits to the Form S-1, Registration Statement and amendments thereto, initially filed on March 10, 2000, Registration No. 333-32146.
(4) Incorporated herein by reference from the Exhibits to the Form 8-K as filed on October 16, 2017.
(5) Incorporated herein by reference from the Exhibits to the Form 8-K as filed on September 12, 2022.
(6) Incorporated herein by reference from the Exhibits to the Form 8-K as filed on October 13, 2022.
86

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| BERKSHIRE HILLS BANCORP, INC.
Dated: November 9, 2022 | By: | /s/ Nitin J. Mhatre
| Nitin J. Mhatre
| President and Chief Executive Officer
Dated: November 9, 2022 | By: | /s/ Brett Brbovic
| Brett Brbovic
| Senior Vice President and Interim Chief Financial Officer

87