Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — KBW 2014 Community Bank Conference
14 slides from Beacon Financial's conference presentation, Jul 29, 2014
Slide 1: KBW 2014 Community Bank Conference July 29-30
KBW 2014 Community Bank Conference July 29-30
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: $6.3 billion Loans: $4.5 billion Deposits: $4.5 billion Wealth AUM: $1.3 billion Annualized Revenue: $235 million Branches: 90 plus lending offices
Slide 3: Current Initiatives
Current Initiatives Growth Organic Market Share Growth Fee Income Growth Footprint New York Branch Acquisition Redefining Customer Engagement Culture New Chairman – Bill Ryan New CFO – Josephine Iannelli Team Recruitment 2
Slide 4: Loan Growth
Focus on Loan Growth $ Millions 8% 14% 12% 21% Double Digit Annualized Loan Growth Relationship model Multiple regions Leveraging deal flow from team recruitment Expanded cross sales across footprint Resource for smaller banks 3
Slide 5: Loan Growth
Focus on Loan Growth Success with recruited commercial lending teams in middle-market space driving growth Key Characteristics Established, well respected teams formerly attached to large banks focused outside of our regions Solid relationships within community Breakeven within first year Teams prod
Slide 6: Fee Income Growth
Focus on Fee Income Growth Emphasis on building fee income and enhancing cross-sell initiatives Strong swap fee demand Solid referral pipeline Re-engineered across footprint New cross sell initiatives launched NY Branch Acquisition New leadership and geographic reach 5
Slide 7: Retail Growth
Focus on Retail Growth 6 Redefining Customer Engagement Branch initiatives CNY acquisition Right-sized footprint Building for the future Relationship banking Online/Mobile Demand deposit account focus
Slide 8: Q2 Results Summary
Q2 Results Summary Solid growth in revenues and core earnings (Q/Q) 5% core EPS growth 5% total loan growth 10% fee income growth Flat core operating expense 7 Note: Core EPS $0.44 in Q1 2014 vs. $0.402in Q1 2014. GAAP EPS $0.46 in Q2 2014 vs. ($0.04) in Q1 2014 including impact of acquisition relat
Slide 9: Profitability
Focus on Profitability Grew EPS 20% before purchased loan accretion 1H14 Positive operating leverage from strong revenue growth and flat core expenses Efficiency ratio below 63% - with goal of returning to sub-60% Y/Y core expenses down 30 bps in relation to average assets Improved asset sensitivity
Slide 10: Why Invest in Us
Why Invest in Us Strong top and bottom line growth Diversified revenue drivers Established footprint in attractive markets Experienced leadership team AMEB culture Solid internal capital generation supports growth Focused on long-term profitability goals and shareholder value 9
Slide 11: Forward Looking Statements
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 identified by the fact that they do not
Slide 12: 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 13: Non-GAAP Reconciliation
Non-Gaap Reconciliation Note: See footnote on page 16 for description of non-core items 12 (Dollars in thousands) 2010 2011 2012 2013 1H14 Net income 13,615 $ 17,348 $ 33,188 $ 41,143 $ 10,358 $ Less: Non-core revenue (net) - (2,113) (1,485) (6,045) 9,936 Non-core expense (net) 447 19,928 18,019 15,
Slide 14: Investor Relations 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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