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Berkshire Hills Bancorp, Inc. (NYSE:BHLB), a $1.21 billion regional bank trading at $26.55 per share, today provided additional details regarding its 2025 Stock Option and Incentive Plan ahead of the upcoming annual shareholder meeting. The disclosure followed an unfavorable recommendation from Institutional Shareholder Services (ISS) due to concerns over shareholder value transfer (SVT). According to InvestingPro data, the bank maintains a solid financial health score of GOOD, with a 26-year track record of consistent dividend payments.
The supplemental information clarifies the SVT calculation, a key component in ISS’s model. As of today, Berkshire has 44,400 outstanding stock options with an average exercise price of $26.65 and an average remaining term of 0.93 years. There are also 386,968 unvested time-based awards and 110,356 performance-based awards expected to vest upon the completion of Berkshire’s proposed transaction with Brookline Bancorp (NASDAQ:BRKL), Inc. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of BHLB’s valuation metrics, including its current P/B ratio of 0.97 and attractive dividend yield of 2.71%.
The company also noted that 822,719 shares are available for issuance under its 2022 and 2018 Equity Incentive Plans, which will be canceled if the transaction with Brookline is completed and the 2025 Plan is approved by shareholders. The anticipated outstanding common shares post-transaction would total 84,260,582.
Berkshire emphasized that no additional stock options or equity awards will be granted under the existing plans from December 16, 2024, through the closing of the proposed transaction with Brookline Bancorp, provided the 2025 Plan is approved at the annual meeting scheduled for May 21, 2025.
The board of directors unanimously recommends shareholders vote "FOR" the approval of the 2025 Plan. Shareholders who have already voted do not need to take further action unless they decide to change their vote.
This announcement is based on a press release statement and aims to provide shareholders with necessary information to make an informed decision regarding the upcoming vote. The details are part of a broader communication strategy to address the concerns raised by ISS and to ensure transparent shareholder engagement.
In other recent news, Berkshire Hills Bancorp reported a strong performance in the first quarter of 2025, exceeding earnings forecasts with an earnings per share (EPS) of $0.60 compared to the expected $0.53. The company’s revenue reached $110.44 million, slightly above the anticipated $109.71 million. A significant development for Berkshire Hills Bancorp is its announced merger with Brookline Bancorp, which is expected to enhance earnings significantly. The merger is anticipated to receive regulatory approvals in the third quarter, with stockholder approval expected by May 21. Analysts have noted that the merger is likely to improve profitability and returns for shareholders. The company has also made progress in its digital initiatives, contributing $75 million in new deposits. Despite facing challenges such as a slowing loan pipeline and economic uncertainty, Berkshire Hills Bancorp has maintained strong asset quality and capital levels.
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