Berkshire Hills Bancorp in Boston sold a portfolio of Upstart-related consumer loans at a loss.
The company disclosed in a regulatory filing that it sold $46.5 million of loans at 96% of book value, resulting in a $1.9 million net chargeoff on the sale. Berkshire said it still holds about $10 million of Upstart-related consumer loans.
Berkshire also completed the sale of 10 branches during the third quarter, including $383 million in deposits and $50 million of residential mortgage and consumer loans. As a result, the company plans to report about $16 million in pretax non-operating income from the sales.
About 40 employees were transferred with the branch sales and were offered employment by the branch buyers.