Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (March 2013)
20 slides from Beacon Financial's investor presentation, Mar 27, 2013
Slide 1: Berkshire Hills Bancorp Investor Presentation
BERKSHIRE HitsBaNcorP Investor Presentation 1013 America’s Most Exciting Bank’
Slide 2: Management and investor relations contacts
1 Copyright 2013 Berkshire Bank Michael P. Daly Chairman, President & CEO mdaly@berkshirebank.com 413-236-3194 David H. Gonci Capital Markets Director dgonci@berkshirebank.com 413-281-1973 Allison P. O’Rourke VP, Investor Relations Officer aorourke@berkshirebank.com 413-236-3149
Slide 3: Who We Are
Who We Are Full Service Regional Bank with a distinctive brand and culture, strong middle market opportunities and a solid track record for results 2 Copyright 2013 Berkshire Bank
Slide 4: Who We Are
Who We Are Assets: $5.3 billion Loans: $4.0 billion Deposits: $4.1 billion AUM: $1.0 billion Branches: 75 plus 10 lending offices Footprint: New England and Central New York Shareholder’s Equity: $670 million Market Capitalization: $630 million NYSE: BHLB 3 Copyright 2013 Berkshire Bank
Slide 5: Why Invest In Us
Why Invest In Us Strong financial condition Diversified income drivers Established footprint in attractive markets Experienced leadership team AMEB culture Well positioned for growth Increasing shareholder returns 4 Copyright 2013 Berkshire Bank
Slide 6: Strategy
Strategy 5 Copyright 2013 Berkshire Bank
Slide 7: Invest in People & Infrastructure: AMEB Culture Creates Success
Invest in People & Infrastructure AMEB Culture Creates Success 6 Copyright 2013 Berkshire Bank Focused on hiring experts and building depth across the organization Performance driven culture managed by scorecards and 360 reviews RIGHT values encouraged and rewarded “If you don’t get the people proce
Slide 8: Invest in People & Infrastructure
Invest in People & Infrastructure Disciplined recruitment of commercial lending teams in middle-market space drives profitability 7 Copyright 2013 Berkshire Bank Key Characteristics Established, well respected teams formerly attached to large banks focused outside of our regions Solid relationships
Slide 9: Invest in People & Infrastructure
Invest in People & Infrastructure Continuous Six Sigma projects Upgraded core operating systems Better data mining leading to better analytics Elaborate scorecarding as basis for performance management Regional headquarters with local management 8 Copyright 2013 Berkshire Bank We maintain financial
Slide 10: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 9 Copyright 2013 Berkshire Bank Decision making for loans, investments and M&A guided by strict metrics ROE Asset Quality Leverage Liquidity
Slide 11: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 10 Copyright 2013 Berkshire Bank As we build our franchise, we are focused on organic revenue growth and opportunities across our footprint
Slide 12: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth Earnings accretion ROE benchmarks Cost save targets Payback target < 5 years on deal earnings and less than a year on overall earnings 11 Copyright 2013 Berkshire Bank Manage capital impact Balance cash and stock mix Modest reliance on revenue synergies Improving finan
Slide 13: Demonstrate Disciplined Growth: Revenue Growth
Demonstrate Disciplined Growth 12 Copyright 2013 Berkshire Bank ($ million) Revenue Growth We maintained positive operating leverage in 2012 by growing revenues at nearly twice the rate of expenses
Slide 14: Drive Profitability: Greater Efficiency
Drive Profitability 13 Copyright 2013 Berkshire Bank Greater Efficiency Core Return on Assets Efficiency Ratio (Percent) Core ROA (Basis Points) 59.7% Our Efficiency Ratio and Core ROA have shown marked improvements over the last two years Driving towards a 55% Efficiency Ratio and Core Return on As
Slide 15: Drive Profitability: Core EPS Growth and Core ROE
Drive Profitability 14 Copyright 2013 Berkshire Bank Core EPS Growth Core Return on Equity Focused on achieving double digit Core ROE and double digit Core EPS growth Note: See end note about non-GAAP measures
Slide 16: Appendix
Appendix 15 Copyright 2013 Berkshire Bank
Slide 17: Revenue & Loan Mix
Revenue & Loan Mix 16 Copyright 2013 Berkshire Bank Growing our commercial business lines without losing sight of our core retail base Note: All data is for 4Q12.
Slide 18: Financial Performance & Goals
Financial Performance & Goals 17 Copyright 2013 Berkshire Bank 2010 2011 2012 2012 Q4 Financial Goals* Core revenue growth 9% 31% 40% 46% 7 - 10%+ per year Net interest margin 3.27% 3.57% 3.62% 3.67% 3.30 - 3.50%+ Fee income/total revenue 28% 24% 26% 26% 25 - 30%+ Efficiency ratio 71% 63% 59% 60% 53
Slide 19: Forward Looking Statements
18 Copyright 2013 Berkshire Bank Forward Looking Statements. This document contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements include statements about anticipated financial results. Forward-looking statements can be identi
Slide 20: Questions and contact
If you have any questions, please contact: Allison O’Rourke P.O. Box 1308 Pittsfield, MA 01202 Investor Relations Officer (413) 236-3149 aorourke@berkshirebank.com Committed to the RIGHT core values: Respect Integrity Guts Having Fun Teamwork
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