Berkshire Hills Bancorp, Inc. Net Income Increases 24% in First Quarter; Quarterly Cash Dividend Declared; Regulatory Approvals for New York Branches Received.

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Berkshire Hills Bancorp, Inc. Net Income Increases 24% in First Quarter; Quarterly Cash Dividend Declared; Regulatory Approvals for New York Branches Received.

PITTSFIELD, Mass. -- Berkshire Hills Bancorp, Inc. ("Berkshire" or the "Company") (AMEX: BHL), the holding company for Berkshire Bank (the "Bank"), today reported record earnings of $3.25 million, or $0.57 per diluted share, for the first quarter of 2005. Net income increased by 24% from $2.62 million, or $0.46 per diluted share, in the first quarter of 2004.

Commenting on the quarter's results, Michael P. Daly, President and Chief Executive Officer of the Company and the Bank stated, "Berkshire continued to produce strong growth in the first quarter, while also devoting significant effort towards its planned merger with Woronoco Bancorp, Inc. Total loans grew at a 13% annualized rate during the quarter, and service fee income increased by 21% from the prior year first quarter. Our expansion into New York and other business solicitation outside of Berkshire County have contributed to this growth. Higher earnings were achieved despite the effects of tighter margins resulting from market conditions. Results were aided by gains on the sale of securitized loans, related to our de-emphasis of balance sheet leverage prior to the Woronoco merger. Total non-interest expense was reduced, despite the impact of higher training and equipment expenses related to improvements in our information technology." Mr. Daly continued, "We are pleased that our company and Woronoco received strong support from our respective shareholders earlier this month for our proposed merger. Subject to our receiving regulatory approvals, we look forward to completing the transaction during the second ...

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