Life at the $12.8-billion-asset Berkshire Hills Bancorp (NYSE: BHLB) has been anything but dull over the past few years, whether you look at the bank’s volatile stock price or its many leadership changes. Now, one of the bank’s major shareholders, HoldCo Asset Management, appears to have had enough and has called the bank out for its inability to create shareholder value. Let’s take a look at Berkshire Hills’ struggles over the past few years, some of HoldCo’s claims, and then what this means for the stock moving forward.
The trouble for Berkshire Hills started in 2018 when Michael Daly abruptly resigned as CEO. Following his departure, some employees claimed Daly had created a toxic workplace culture. The Boston-based bank’s board of directors elevated then-president Richard Marotta to replace Daly as chief executive. Marotta vowed to improve profitability and went to work on cleaning up the bank’s reputation. But two years later, Marotta followed in his predecessor’s footsteps and abruptly resigned to “pursue new opportunities.”