Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — SunTrust Robinson Humphrey Financial Services Unconference 2010
16 slides from Beacon Financial's conference presentation, May 25, 2010
Slide 1: SunTrust Robinson Humphrey Financial Services Unconference
SunTrust Robinson Humphrey Financial Services Unconference May 25, 2010 This presentation contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) which involve significant risks and uncertainties. Actual results may differ materially from the
Slide 2: Executive contacts
Kevin P. Riley EVP and CFO Phone: (413) 236-3195 Email: kriley@berkshirebank.com P.O. Box 1308, Pittsfield, MA 01202 - Executive Offices - 66 West Street, Pittsfield, MA 01201 David H. Gonci Investor Relations Officer Phone: (413) 281-1973 Email: dgonci@berkshirebank.com Michael P. Daly President an
Slide 3: Why Invest in Berkshire Hills Bancorp?
Why Invest in Berkshire Hills Bancorp? Strong growth from organic, de novo, product and acquisition strategies Solid capital, core funding and risk management culture Experienced executive team focused on earnings and shareholder value Distinctive brand and culture as America's Most Exciting Banksm
Slide 4: Our Growing Regional Franchise
Our Growing Regional Franchise $2.7 billion in assets; 45 financial centers Total revenues $100+ million Massachusetts, New York and Vermont Largest local regional bank Diversified revenues (fees~30%) Integrated insurance and wealth management ($700 million AUM) Strong commercial platform New Englan
Slide 5: Experienced Leadership Team
Experienced Leadership Team Michael P. Daly President and CEO Kevin Riley EVP, CFO Sean Gray SVP, Retail Banking Background Bank of America Consumer Market Executive Background TD Banknorth Co-Regional Executive Background KeyBank EVP Group Head Background KeyBank EVP CFO Lawrence A. Bossidy Chairma
Slide 6: Vision and Distinctive Brand and Culture
Vision "To excel as a high performing market leader with the right people, attitude and energy providing an engaging and exciting customer and team member experience." People, Attitude, Energy Right People, Right Places, Right Things, Right Reasons Accountability Demonstrating the R.I.G.H.T. behavio
Slide 7: Recent Initiatives
Recent Initiatives Strong organic business development Gaining share from national competitors Strengthening regional teams New York leadership Springfield headquarters opening, new retail platform New business lines New England asset based lending group - premier team Springfield private banking -
Slide 8: Q4 2009 Loan Initiative
Q4 2009 Loan Initiative Loan level scrub of all classified commercial loans and other stressed credits Most classified loans paying current - addressed issues before they impacted performance Strategies to reduce risk - bifurcations, modifications, outplacements, loan sales Q1 2010 NPAs declined to
Slide 9: Financial Performance and Goals
Financial Performance and Goals Ahead of plan in Q1 2010 2007 2008 2009 Guidance 2010 Annual Financial Goals Revenue growth 23% 21% -8% 8%+ 10%+ Net interest margin 3.26% 3.44% 3.00% 3.20%+ 3.50%+ Fee income/Total revenue 30% 28% 29% 28%+ 35%+ Efficiency ratio 63% 61% 73% 70% 55% Pretax, Pre-provisi
Slide 10: Diversified Revenues and Regional Presence
Diversified Revenues and Regional Presence Target record revenues of $107 million in 2010 New York Vermont Springfield Berkshire County East 0.12 0.14 0.31 0.43 Banking Fees & Other Insurance Wealth Management Net Interest Income 0.12 0.12 0.05 0.71 Diversified Revenues Expanding Regional Presence B
Slide 11: Attractive Business Mix
Attractive Business Mix DDA/NOW SAV/MMDA Time < 100M Time > 100M East 0.23 0.4 0.18 0.19 Residential Consumer Commercial 0.32 0.15 0.53 Diversified Loan Portfolio $2.0 Billion Strong Deposit Funding $2.0 Billion Note: Data is as of 3/31/10.
Slide 12: Loan Mix Managed for Quality Growth
Loan Mix Managed for Quality Growth Focus on commercial loans - double digit organic growth target Plan to grow C & I including new asset based lending group Indirect auto running off in 2010 Strong credit disciplines - no high LTV or sub-prime or Alt A loan programs All lending is to relationships
Slide 13: Diversified Commercial Loan Industry Exposure
Diversified Commercial Loan Industry Exposure No loans to out of area relationships Modest residential construction - 3% of total loans Total Commercial Loans = $1.04 Billion As of March 31, 2010 Commercial & Industrial Residential Construction Other Construction Apartments & Dwellings Lodging Comme
Slide 14: 2010 Objectives for Growth and Earnings
2010 Objectives for Growth and Earnings Maintain nonperforming assets/assets under 1% Ongoing organic growth in all business lines Core EPS $0.85 - $0.95 target for 2010 Commercial loan growth over 15% including new asset based lending group Deposit growth over 5% including new private banking group
Slide 15: BHLB - On the Move for Attractive Investment Returns
BHLB - On the Move for Attractive Investment Returns Clean balance sheet and improving asset metrics Strong capital and liquidity Positioned to take advantage of the stronger economy and higher rates we think are coming our way Talented and focused management team New strong business lines that shou
Slide 16: If you have any questions, please contact
If you have any questions, please contact: David Gonci Investor Relations Officer (413) 281-1973 dgonci@berkshirebank.com Committed to the RIGHT core values; Respect Integrity Guts Having Fun Teamwork Berkshire Bank - America's Most Exciting Banksm ON THE MOVE
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