BERKSHIRE HILLS BANCORP, INC. (NYSE:BHLB) Files An 8-K Regulation FD Disclosure
Berkshire Hills Bancorp Inc. (the “Company”) is disclosing that its subsidiary, Berkshire Bank (the “Bank”), owns a participating interest with a balance outstanding of approximately $16 million in a commercial lending arrangement secured by business assets. The lead lender advised the Bank of a recent default on the loan due to potentially fraudulent activity. The Company is currently evaluating the situation but expects that the Company’s third quarter 2019 net income and net income per share will be adversely affected. The Bank is working with the lead lender to pursue its remedies as a result of the default. The Bank believes that this incident, as it relates to the Bank, is isolated to the subject lending arrangement. The Bank does not have any other accounts or business arrangements with this borrower, its related entities, or its principals.
The information contained in this Form 8-K provided under Item 7.01 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, unless expressly incorporated by specific reference in such filing.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Company intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this document. All statements regarding the Company’s expected financial position and operating results are forward-looking statements. These statements can sometimes be identified by the Company’s use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend.” The Company cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Company’s actual results could be materially different from expectations because of various factors. Information concerning these and other factors can be found in the Company’s periodic filings with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K for the Year Ended December 31, 2018, and subsequent filings on Form 10-Q. These filings are available publicly on the SEC’s website at http://www.sec.gov, on the Company’s website at http://www.berkshirebank.com or upon request from the Corporate Secretary. Except as otherwise required by law, the Company undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
About BERKSHIRE HILLS BANCORP, INC. (NYSE:BHLB)
Berkshire Hills Bancorp, Inc. (Berkshire) is a holding company for Berkshire Bank (the Bank) and Berkshire Insurance Group. Berkshire offers a range of deposit, lending, insurance and wealth management products to retail, commercial, not-for-profit and municipal customers in its market areas. Berkshire product offerings also include retail and commercial electronic banking, commercial cash management and commercial interest rate swaps. The Bank’s loan portfolio consists of commercial loans, which include residential mortgages, commercial real estate, commercial and industrial loans, and consumer loans. The Bank’s securities available for sale include municipal bonds and obligations, mortgage-backed securities, other bonds and obligations, and marketable equity securities. As of December 5, 2016, the Bank had 99 full service branch offices in Massachusetts, New York, Connecticut, Vermont, New Jersey and Pennsylvania.
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