Berkshire Hills Bancorp, Inc. (NYSE:BHLB) reported its Q2 results, with EPS of $0.51 coming in better than the Street estimate of $0.47. Revenue was $98.68 million, compared to the Street estimate of $94.83 million.
Fundamental trends were strong in Q2 and driven by continued loan growth momentum and impressive margin expansion. Both of these elements drove better than expected spread revenue growth, and the outlook suggests trends can remain favorable going into the back half of the year, albeit at more moderate levels compared to Q2.
Management reiterated average loan growth expectations to 5% to 7% for 2022, though now expects average deposit balances to be stable to declining 2% for the year. Net interest income is expected to increase by 9% to 11% at a minimum, as the margin sees additional tailwinds from a rising rate environment.