Beacon Financial Corporation · NYSE:BBT

Beacon Financial — Berkshire Hills Bancorp — Q2 2025 Earnings Presentation

16 slides from Beacon Financial's earnings presentation, Jul 24, 2025

  1. Slide 1: Berkshire Hills Bancorp 2Q 2025 Earnings Presentation

    Berkshire Hills Bancorp NYSE:BHLB 2Q 2025 Earnings Presentation https://ir.berkshirebank.com J U L Y 2 4 TH, 2 0 2 5

  2. 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

  3. Slide 3: Key Highlights: 2Q25

    KEY HIGHLIGHTS: 2Q25 Strong operating earnings with solid operating leverage in the quarter 1 • Operating Net Income of $31.6M (+14% QoQ, +36% YoY) • Operating EPS of $0.69 (+15% QoQ, +25% YoY) Financial Performance • Operating Non-Interest Expenses of $66.7M (-2% QoQ, -7% YoY); Efficiency ratio of

  4. Slide 4: 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

  5. Slide 5: 2Q25 Overview

    2Q25 Overview GAAP NET INCOME OF $30.4M, or $0.66 GAAP EPS • Operating Earnings: $31.6M +$4.0M or +14% QoQ; +$8.4M or +36% YoY • Net Interest Margin, FTE: 3.27% +3 bps QoQ; +7 bps YoY • Net Interest Income, non FTE1: $91.9M +$2.2M or +2% QoQ; +$3.4M or +4% YoY • Operating Non-Interest Income: $21.8M

  6. Slide 6: Loans: Average Balances

    ($M) Loans: Average Balances CRE C&I Resi Consumer +95 (+1%) 9,389 38 55 3 9,484 370 -1 369 2,708 2,711 1,446 1,501 QoQ 4,865 4,903 1Q25 CRE C&I Resi Consumer 2Q25 +327 (+4%) 254 117 17 9,484 9,157 369 430 -61 2,711 2,694 1,501 1,384 YoY 4,649 4,903 2Q24 CRE C&I Resi Consumer 2Q25 Notes: Numbers and

  7. Slide 7: Deposits: Average Balances

    ($M) Deposits: Average Balances Non-Interest Bearing Money Market Time NOW Savings -30 (-0.3%) 9,847 19 42 43 18 9,817 -152 2,542 2,560 1,038 1,081 QoQ 3,247 3,095 758 800 2,262 2,281 1Q25 Non-Interest NOW Money Market Savings Time 2Q25 Bearing +521 (+6%) 186 77 184 9,817 9,296 37 37 2,560 2,376 1,0

  8. Slide 8: Net Interest Income

    ($000S) Net Interest Income +2,150 (+2%) 3,027 265 112 91,921 89,771 -1,254 QoQ 1Q25 Loans Deposits Borrowings Investments 2Q25 +3,389 (+4%) 4,413 1,616 91,921 88,532 -1,370 -1,270 YoY 2Q24 Loans Deposits Borrowings Investments 2Q25 8 Note: NII on an FTE basis was $93.8M (+$2.1M or +2.3% QoQ; +$3.2M

  9. Slide 9: Operating Non-Interest Income

    ($000S) Operating Non-Interest Income +1,080 (+5%) 1,313 711 21,752 244 98 20,672 -988 -298 QoQ 1Q25 Deposit Loan Related Gain on Wealth FV Adj. on Other 2Q25 Related Fees Fees SBA Loans Management Securities Fees +1,619 (+8%) 2,736 44 88 125 21,752 20,133 -1,006 -368 YoY 2Q24 Deposit Loan Related G

  10. Slide 10: Operating Non-Interest Expense

    ($000S) Operating Non-Interest Expense -1,259 (-2%) 67,912 1,598 66,653 -1,332 -463 -309 -753 QoQ 1Q25 Compensation Occupancy and Technology Professional Other 2Q25 and Benefits Equipment Services -4,662 (-7%) 71,315 -823 -861 -480 66,653 -1,796 -702 YoY 2Q24 Compensation Occupancy and Technology Pr

  11. Slide 11: Asset Quality

    ($M) Asset Quality NON-PERFORMING LOANS NET CHARGE OFFS 0.38% 0.25% 0.24% 0.26% 0.26% 0.27% 0.25% 0.23% 0.15% 0.14% 0.14% 24.0 24.4 23.3 25.4 0.07% 21.3 5.6 3.3 3.5 3.3 1.7 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 NPLs NPLs/Total Loans 10 Year Avg. NCOs Annualized NCO/Avg. Loans 10 Year Avg

  12. Slide 12: Appendix

    Appendix 12 »<BerkshireHillsBancorp

  13. 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

  14. Slide 14: Office Portfolio

    Office Portfolio Office Portfolio & Asset Quality Office Portfolio Metrics Rural, ➢ As of 2Q25, Office CRE portfolio totals ~$516M or 6% 5.4% of Total Loans ~93% of portfolio is within footprint and 62% is ➢ Solid portfolio performance with NPLs of ~0.7% and Suburban no NCOs CBD, 32% Suburban, 62% ➢

  15. Slide 15: Non-GAAP Reconciliation (By Quarter)

    Non-GAAP Reconciliation (By Quarter) At or for the Quarters Ended June 30, March 31, Dec. 31, Sept. 30, June 30, (in thousands) 2025 2025 2024 2024 2024 Total non-interest income $ 21,752 $ 20,672 $ 23,325 $ 37,555 $ 20,133 Adj: Net (gains) on sale of business operations and assets - - (193) (16,048

  16. Slide 16: Non-GAAP Reconciliation (By Quarter Continued and Notes)

    Non-GAAP Reconciliation (By Quarter Continued and Notes) At or for the Quarters Ended June 30, March 31, Dec. 31, Sept. 30, June 30, (in thousands) 2025 2025 2024 2024 2024 (in millions, except per share data) Total average assets (F) $ 11,849 $ 11,754 $ 11,596 $ 11,695 $ 11,692 Total average shareh

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