Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (May 2015)
21 slides from Beacon Financial's investor presentation, May 12, 2015
Slide 1: Investor Deck May 2015
BERKSHIRE HILLSBANCORP ae Berkshire Bank - America’s Most Exciting Banke Tayvestor Deck May 2015 Life is exciting. Let us help.
Slide 2: Who We Are
Who We Are Full service regional bank with a distinctive brand and culture, strong middle market opportunities and a solid foundation for growth Assets: $7.3 billion Loans: $5.2 billion Deposits: $5.2 billion Wealth AUM: $1.4 billion Core Revenue: $255 million (Q1 annualized) Branches: 96 Footprint:
Slide 3: 1Q15 Strategic Highlights
1Q15 Strategic Highlights Significant quarterly core earnings growth: 19% (y/y) Grew core EPS $0.02 per quarter in each of the last 5 quarters Closed in-market acquisition of Hampden Bank (April) All-stock transaction valued at approximately $120 million Targeted to be accretive to EPS, ROE, ROA and
Slide 4: Well Positioned Footprint in Attractive Markets
Well Positioned Footprint in Attractive Markets Only regional bank operating across this central footprint Favorable positioning in rural markets 4
Slide 5: AMEB Culture
AMEB Culture People, attitude and energy RIGHT core values – Respect, Integrity, Guts, Having Fun and Teamwork Engaging and innovative customer experience Driven to make a difference 5
Slide 6: Talent Recruitment Drives Growth
Talent Recruitment Drives Growth Success with recruited teams driving growth and profitability Key Characteristics Established, well respected talent formerly attached to large banks focused outside our regions Solid relationships within community Strong integration within and across business lines
Slide 7: Double Digit Total Loan Growth
Double Digit Total Loan Growth $ Millions 7% 6% 19% 15% 11% total loan growth LTM Leveraging deal flow from team recruitment Targeted reductions in auto and mortgage portfolio to manage margin and asset sensitivity goals Continued market share growth Healthy pipeline going into 2Q15 Targeting ongoin
Slide 8: Diversified Deposit Growth Strategies
Diversified Deposit Growth Strategies 6% annualized increase in total deposits Q/Q 7% decrease in cost of deposits LTM Organic account growth, DDA focus 11% annualized growth in DDA’s 1Q15 20 branch purchase in Central New York completed 1Q14 $440 million, low cost deposits Diversifying deposit sour
Slide 9: Diversified Revenue Drivers
Diversified Revenue Drivers Emphasis on building fee income and enhancing cross-sell initiatives Spotlight on WM 10% revenue growth FY14 $1.4 billion in AUM Solid referral pipeline Spotlight on Small Biz Re-engineered across footprint Pipeline doubled y/y Risen to top 3 in SBA loans in several of ou
Slide 10: Hampden Bank Acquisition
Hampden Bank Acquisition On April 17, 2015 Berkshire closed the in-market acquisition of Hampden Bancorp (HBNK) in an all-stock transaction. The combined franchise now has 17 branches in the Greater Springfield area, a top 5 deposit market share position and a market cap exceeding $800 million. 10 F
Slide 11: Focused on Long-term Profitability Goals and Building Shareholder Value
Focused on Long-term Profitability Goals and Building Shareholder Value Grew core EPS 4% q/q and 19% y/y Sequential improvements in core ROE and ROA NIM expanded 3 bps ex-accretion due to improved commercial yields and funding mix Efficiency ratio of 63% - with goal of returning to sub-60% Focused o
Slide 12: Why Invest in Us
Why Invest in Us Strong core earnings momentum Diversified revenue drivers and controlled expenses Well positioned footprint in attractive markets AMEB culture – results driven Solid internal capital generation supports growth Focused on long-term profitability goals and shareholder value Acquisitio
Slide 13: Appendix
Appendix Focus on Building Infrastructure Focus on Expenses Focus on Asset Liability Management Redefining Customer Engagement Financial Performance and Goals Non-GAAP Reconciliation 13
Slide 14: Focus on Building Infrastructure
Focus on Building Infrastructure National showcase for Archer risk/enterprise management solution Expanded financial planning and analysis resources for data driven management New retail loan originations platform implemented across footprint and virtual channel Installed top ranked loan analytics s
Slide 15: Focus on Expenses
Focus on Expenses Y/Y core expenses down 16 bps in relation to average assets 17 branches closed, consolidated or sold since 2012 3 Hampden branches and 2 additional Berkshire branches designated for consolidation in 2Q15 Additional branches under review New branches are smaller and more efficient 1
Slide 16: Focus on Asset Liability Management
Focus on Asset Liability Management Targeting to protect and enhance income when rate/credit cycle turns Active balance sheet management –cost of funds down 9% Y/Y Q1 2014 branch purchase added 11% to deposits – a stable, rural , low cost funding addition Near term margin compression with conservati
Slide 17: Redefining Customer Engagement
Redefining Customer Engagement Focused on enhancing both traditional and non-traditional methods Engaging Branches Friendlier pods replace teller lines Automated cash handling – lowers cost and improves customer engagement Community rooms bring in traffic Universal bankers create one stop shop for p
Slide 18: Financial Performance and Goals
Financial Performance and Goals 2012 2013 2014 3mos15 Financial Goals Core revenue growth 40% 13% 7% 1% y/y 7 - 10%+ ann Net interest margin 3.62% 3.63% 3.26% 3.18% 3.30%+ Fee income/revenue 26% 22% 24% 24% 30% Efficiency ratio 59% 61% 63% 63% < 60% Core ROA 0.98% 0.88% 0.73% 0.76% 1%+ Core ROE 7.5%
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: Core results exclude acquisition, divestiture, systems conversion, accounting correction and restructuring net charges after tax 19 (Dollars in thousands) 2012 2013 2014 1Q15 Net income 33,188 $ 41,143 $ 33,744 $ 8,759 $ Non-core revenue (net) (1,485) (6,045) 9,691 (34)
Slide 20: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a disc
Slide 21: If you have any questions, please contact
If you have any questions, please contact: Allison O’Rourke 99 North Street Pittsfield, MA 01202 Investor Relations Officer (413) 236-3149 aorourke@berkshirebank.com
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