Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (November 2014)
26 slides from Beacon Financial's investor presentation, Nov 18, 2014
Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
Slide 2: Why Invest in Us
Why Invest in Us . Strong top and bottom line momentum . Diversified revenue drivers and controlled expenses . Well positioned footprint in attractive markets . AMEB culture . Solid internal capital generation supports growth . Focused on long-term profitability goals and shareholder value . Acquisi
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 foundation for growth . Assets: $6.4 billion . Loans: $4.6 billion . Deposits: $4.6 billion . Wealth AUM: $1.3 billion . Annualized Revenue: $235 million . Branches: 91 plus len
Slide 4: Well Positioned Footprint in Attractive Markets
Well Positioned Footprint in Attractive Markets BHLB HBNK Note: Acquisition of Hampden Bancorp Inc. pending . Only regional bank operating across this central footprint . Favorable positioning in rural markets 3
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 4
Slide 6: Team Recruitment Drives Growth
Team Recruitment Drives Growth Success with recruited commercial lending teams in middle-market space driving growth Albany Team ABL Team Central MA Team Hartford Team Syracuse Team Eastern MA Team Leasing Team NY Leader Small Biz Team Key Characteristics . Established, well respected teams formerly
Slide 7: Vision . Growth . Value . Performance
Vision 6 . Growth . Value . Performance
Slide 8: Double Digit Annualized Loan Growth
Double Digit Annualized Loan Growth 500 700 900 1100 1300 1500 1700 CRE C&I Consumer Mortgage 3Q13 4Q13 1Q14 2Q14 3Q14 $ Millions 10% 15% 10% 17% . 12% annualized total loan growth YTD 2014 . Leveraging deal flow from team recruitment . Continued market share growth . Healthy pipeline going into 4Q1
Slide 9: Diversified Deposit Growth Strategies
Diversified Deposit Growth Strategies . 20 branch purchase in Central New York completed 1Q14 . $440 million, low cost deposits . Balances/pricing retained . 18% increase in total deposits LTM . 22% decrease in cost of deposits LTM . Diversifying deposit sources . Organic account growth, DDA focus .
Slide 10: Diversified Revenue Drivers
Diversified Revenue Drivers Emphasis on building fee income and enhancing cross-sell initiatives Wealth Management Insurance Commercial Products Mortgage Banking Small Business Retail Products Strong swap fee demand Solid referral pipeline Re-engineered across footprint New cross sell initiatives la
Slide 11: 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
Slide 12: Strong Top and Bottom Line Momentum
Strong Top and Bottom Line Momentum Solid growth in revenues and earnings YTD . Revenue growth 14% . EPS growth 14% . Fee income growth 25% . Loan growth (annualized) . Total loan growth: 12% . Commercial loan growth: 14% . Consumer loan growth: 17% . Deposit growth 19% Note: YTD measured as 3Q14/4Q
Slide 13: Focused on Long-term Profitability Goals and Building Shareholder Value
Focused on Long-term Profitability Goals and Building Shareholder Value . Grew EPS 24% before purchased loan accretion through Q3 2014 . Ongoing positive operating leverage from strong revenue growth and flat core expenses . Efficiency ratio below 63% - with goal of returning to sub-60% . Improved a
Slide 14: New York Branch Acquisition
New York Branch Acquisition Financial •Immediate EPS accretion •TBV dilution payback of 4-5 years •Double digit ROE •Liquidity and interest rate sensitivity benefits •No external financing required Strategic •Strengthened presence in Greater Capital Region of NY •Filled in footprint along I-90 corri
Slide 15: Hampden Bank Acquisition
Hampden Bank Acquisition Financial •Approximately 33 bps accretive to TE/TA •Minimal TBV dilution ($0.22) with 3 year earn back •$0.08 accretive to EPS in 2016, first year after integration •Accretive to ROE and ROA •Approximately 17% Internal Rate of Return Strategic •Top 5 deposit market position;
Slide 16: Why Invest in Us
Why Invest in Us . Strong top and bottom line momentum . Diversified revenue drivers and controlled expenses . Well positioned footprint in attractive markets . AMEB culture . Solid internal capital generation supports growth . Focused on long-term profitability goals and shareholder value . Acquisi
Slide 17: Forward Looking Statements
ON NOVEMBER 3, 2014 BERKSHIRE ENTERED INTO AN AGREEMENT TO ACQUIRE HAMPDEN BANCORP, INC. PLEASE SEE RELATED SEC FILINGS FOR ADDITIONAL DETAILS. FORWARD LOOKING STATEMENTS This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1
Slide 18: Additional Information and Where to Find It
ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed merger, Berkshire will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a Proxy Statement of Hampden and a Prospectus of Berkshire, as well as other relevant doc
Slide 19: Appendix
Appendix . 2014 Strategic Highlights . Focus on Building Infrastructure . Focus on Expenses . Focus on Asset Liability Management . Financial Performance and Goals . Non-GAAP Reconciliation 18
Slide 20: 2014 Strategic Highlights
2014 Strategic Highlights . Significant quarterly earnings growth: 14% YTD . Announced in-market acquisition of Hampden Bank (November) . All-stock transaction valued at approximately $109 million . Accretive to EPS, ROE, ROA and capital . Regional hub opened in Westborough covering Central MA marke
Slide 21: 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 ana
Slide 22: Focus on Expenses
Focus on Expenses . Q3 y/y core expenses down 19 bps in relation to average assets . 17 branches closed, consolidated or sold since 2012 . New branches are smaller and more efficient . 10% cost saves and 10% revenue boost . Ongoing Six Sigma initiatives . Mortgage . Finance . Retail . Balancing oper
Slide 23: 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 32% LTM . Q1 branch purchase added 11% to deposits – a stable, rural , low cost funding addition . Near term margin compression with conserva
Slide 24: Financial Performance & Goals
Financial Performance & Goals Note: Core results exclude merger, divestiture, systems conversion, accounting correction and restructuring net charges after tax totaling $10.4 million in 2011, $11.1 million in 2012 and $5.6million in 2013. GAAP EPS for those periods was $0.97, $1.49 and $1.65 respect
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands)20102011201220139Mos14Net income 13,615$ 17,348$ 33,188$ 41,143$ 22,347$ Less: Non-core revenue (net)- (2,113) (1,485) (6,045) 9,691 Non-core expense (net)447 19,928 18,019 15,348 6,730 Income taxes(87) (6,547) (6,114) (3,750) (6,071) Net (income) loss f
Slide 26: 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
Berkshire Hills Bancorp — Investor Presentation (November 2014) on 6ix