Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Q1 2025 Earnings Presentation
20 slides from Beacon Financial's earnings presentation, Apr 24, 2025
Slide 1: Berkshire Hills Bancorp 1Q 2025 Earnings Presentation
Berkshire Hills Bancorp NYSE:BHLB 1Q 2025 Earnings Presentation https://ir.berkshirebank.com A P R I L 2 4 TH, 2 0 2 5
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our proposed merger with Brookline Bancorp, I
Slide 3: Additional Information and Where To Find It
Additional Information and Where To Find It This presentation contains information with respect to the proposed transaction involving Berkshire and Brookline. This material is not a solicitation of any vote or approval of the Berkshire or Brookline stockholders and is not a substitute for the joint
Slide 4: Key Highlights: 1Q25
KEY HIGHLIGHTS: 1Q25 Robust improvement in operating earnings with strong operating leverage in the quarter 1 • Net Income of $27.6M (+6% QoQ, +32% YoY) • EPS of $0.60 (~flat QoQ, +22% YoY) Financial Performance • Non-Interest Expenses of $67.9M (-4% QoQ, -6% YoY) • Positive Operating Leverage (5% Q
Slide 5: 1Q 2025 Overview
1Q 2025 Overview GAAP NET INCOME OF $25.7M, or $0.56 GAAP EPS • Operating Earnings: $27.6M +$1.6M QoQ; +$6.7M YoY • Net Interest Margin, FTE: 3.24% +10 bps QoQ; +9 bps YoY • Net Interest Income, non FTE1: $89.8M +$2.9M or +3% QoQ; +$1.6M or +1.8% YoY • Operating Non-Interest Income: $20.7M -$2.5M or
Slide 6: Loans: Average Balances
($M) Loans: Average Balances CRE C&I Resi Consumer +118 (+1.3%) 9,271 93 11 18 9,389 374 -4 370 2,690 2,708 1,435 1,446 QoQ 4,772 4,865 4Q24 CRE C&I Resi Consumer 1Q25 +348 (+4%) 312 91 40 9,389 9,041 370 465 -95 2,708 2,668 1,446 1,355 YoY 4,553 4,865 1Q24 CRE C&I Resi Consumer 1Q25 Notes: Balances
Slide 7: Deposits: Average Balances
($M) Deposits: Average Balances Non-Interest Bearing Money Market Time NOW Savings +188 (+2%) 9,659 201 35 9,847 -31 -6 -11 2,553 2,542 1,003 1,038 QoQ 3,046 3,247 764 758 2,293 2,262 4Q24 Non-Interest NOW Money Market Savings Time 1Q25 Bearing +18 (0%) 9,829 164 0 9,847 -86 -41 -19 2,561 2,542 1,03
Slide 8: Net Interest Income
($000S) Net Interest Income +2,916 (+3%) 2,286 240 89,771 86,855 2,855 -2,465 QoQ 4Q24 Loans Deposits Borrowings Investments 1Q25 +1,631 (+2%) 3,974 1,333 89,771 88,140 -2,279 -1,397 YoY 1Q24 Loans Deposits Borrowings Investments 1Q25 8 Note: NII on an FTE basis was $91.6M (+$2.8M or +3% QoQ; +$1.4M
Slide 9: Operating Non-Interest Income
($000S) Operating Non-Interest Income -2,488 (-11%) 748 23,160 300 297 -288 -1,359 20,672 -2,186 QoQ 4Q24 Deposit Loan Related Gain on Wealth FV Adj. on Other 1Q25 Related Fees Fees SBA Loans Management Securities Fees +3,362 (+19%) 883 20,672 1,577 71 63 1,124 17,310 -356 YoY 1Q24 Deposit Loan Rela
Slide 10: Operating Non-Interest Expense
($000S) Operating Non-Interest Expense -3,106 (-4%) 1,706 332 71,018 -176 -1,051 67,912 -3,917 QoQ 4Q24 Compensation Occupancy and Technology Professional Other 1Q25 and Benefits Equipment Services -4,491 (-6%) 72,403 161 -100 -1,032 -962 67,912 -2,558 YoY 1Q24 Compensation Occupancy and Technology
Slide 11: Operating Expense Growth Outperformance Relative to Peers
Operating Expense Growth Outperformance Relative to Peers BHLB has managed Operating Expenses better than peers in last four years • Berkshire’s commitment to managing expenses with discipline and transparency has led to a reduction in its overall expense base • Operating Expense growth YoY has been
Slide 12: Asset Quality
($M) Asset Quality NON-PERFORMING LOANS NET CHARGE OFFS 0.39% 0.25% 0.24% 0.26% 0.26% 0.25% 0.24% 0.23% 0.18% 0.15% 0.14% 24.0 24.4 23.3 0.07% 5.6 21.5 21.3 4.0 3.5 3.3 1.7 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs NPLs/Total Loans 10 Year Avg. NCOs Annualized NCO/Avg. Loans 10 Year Avg
Slide 13: CRE is Well-Diversified by Property Type and Geography
C R E i s W e l l - D i v e r s i f i e d b y P r o p e r t y Ty p e a n d G e o g r a p h y Portfolio by Geography Portfolio Metrics ➢ CRE Portfolio is diversified across our markets, 10% with no exposure to NYC 7% Massachusetts New York ➢ CRE portfolio is composed of diverse property 3% 40% Connec
Slide 14: Office Portfolio
Office Portfolio Office Portfolio & Asset Quality Office Portfolio Metrics Rural, ➢ As of 1Q25, Office CRE portfolio totals ~$504M or 6% 5.3% of Total Loans ~93% of portfolio is within footprint and 61% is ➢ Solid portfolio performance with NPLs of ~0.7% and Suburban no NCOs CBD, 33% Suburban, 61% ➢
Slide 15: Berkshire – Brookline Partnership
Berkshire – Brookline Partnership Merger Update Strategic Highlights* Attractive Deal Metrics* Proxy statement/prospectus filed with Transformative partnership creating a Berkshire legal acquirer, Brookline the SEC premier $24 billion Northeast accounting acquirer. Berkshire balance franchise positi
Slide 16: Appendix
Appendix 16 »<BerkshireHillsBancorp
Slide 17: Run-Off Portfolios
Run-Off Portfolios EOP ($M) % 1Q25 1Q25 4Q24 3Q24 1Q25 4Q24 3Q24 Portfolios 1Q25 Total 4Q24 3Q24 2Q24 1Q24 NCOs NCOs NCOs NPLs NPLs NPLs Loans ($M) ($M) ($M) ($M) ($M) ($M) Upstart 0 0% 7 10 67 78 1.7 1.4 3.8 0 0.01 0.01 Firestone 34 0.4% 41 48 57 66 0.4 0.2 -0.01 0.76 1.30 1.48 Total 34 0.4% 48 58
Slide 18: Solid Liquidity to Cover All Uninsured Deposits
Solid Liquidity to Cover All Uninsured Deposits Estimated Uninsured Deposits and Available Liquidity ($M) Available Liquidity ($M) 12/31/243 3/31/255 Uninsured Deposits¹ 4,191 3,682 5,246 Less: Collateralized Deposits² 191 207 1,562 1,608 Uninsured Deposits (after exclusions) 4,000 3,475 Total Depos
Slide 19: Non-GAAP Reconciliation (By Quarter)
Non-GAAP Reconciliation (By Quarter) At or for the Quarters Ended March 31, Dec. 31, Sept. 30, June 30, March 31, (in thousands) 2025 2024 2024 2024 2024 Total non-interest income $ 20,672 $ 23,325 $ 37,555 $ 20,133 $ (32,599) Adj: Net (gains) on sale of business operations and assets - (193) (16,04
Slide 20: Non-GAAP Reconciliation (By Quarter Continued and Notes)
Non-GAAP Reconciliation (By Quarter Continued and Notes) March 31, Dec. 31, Sept. 30, June 30, March 31, (in millions, except per share data) 2025 2024 2024 2024 2024 Total average assets (F) $ 11,754 $ 11,596 $ 11,695 $ 11,692 $ 11,755 Total average shareholders' equity (G) 1,191 1,095 1,050 1,013
Berkshire Hills Bancorp — Q1 2025 Earnings Presentation on 6ix