Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Stifel Nicolaus 24-hour Un-Conference: Southwest MA & Northern CT 2012
20 slides from Beacon Financial's conference presentation, May 9, 2012
Slide 1: Berkshire Hills Bancorp - Stifel Nicolaus Un-Conference
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Stifel Nicolaus 24 - hour Un - Conference: Southwest MA & Northern CT May 8, 2012
Slide 2: Presenters and contact details
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm David H. Gonci Investor Relations Officer Dgonci@berkshirebank.com 413 - 281 - 1973 Michael P. Daly President and CEO Mdaly@berkshirebank.com 413 - 236 - 3194 1 Patrick J. Sullivan EVP, Commercial Banking & Wealth M
Slide 3: Berkshire Hills Bancorp
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Berkshire Hills Bancorp Regional bank with over $4 billion in assets 68 full service branches in four states: MA, NY, CT and VT ◦ Nine commercial and residential lending offices in Central/Eastern Massachusetts
Slide 4: Regional Presence
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Regional Presence 3 Berkshire County, New York, Connecticut, Pioneer Valley and Vermont New lending offices in Central and Eastern Massachusetts
Slide 5: Recent Initiatives
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm 4 Recent Initiatives Team recruitment drives commercial growth ◦ Asset Based Lending ◦ Central/Eastern Mass. Commercial Team ◦ Consumer Lending – Greenpark Mortgage De novo branching in strong Albany market ◦ Fi
Slide 6: 1st Quarter Results
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm 1 st Quarter Results 10% annualized revenue growth 9% annualized core EPS growth 11% annualized loan growth 11% annualized deposit growth 3.62% net interest margin, up from 3.61% 0.94% core ROA 59% eff
Slide 7: 2nd Quarter Guidance
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm 2 nd Quarter Guidance 14% annualized core EPS growth 8 - 10% annualized organic loan growth 4 - 6% annualized organic deposit growth 12% revenue growth (including CBT and Greenpark acquisitions) 3.60 – 3.6
Slide 8: Revenue Growth
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Revenue Growth 25%+ Total Annual Growth 7 Quarterly Revenue ($ million) Quarter Note: Revenue in 11Q3 excludes $2 million non - core gain on Legacy stock. $41 0 5 10 15 20 25 30 35 40 45 10Q4 11Q1 11Q2 11Q3 11Q4 12Q
Slide 9: Performance Improvement: Greater Efficiency
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Performance Improvement Core Non - Interest Expense to Assets Greater Efficiency Quarter Core Non - Interest Expense to Assets (Percent) Quarter Efficiency Ratio (Percent) 8 55 57 59 61 63 65 67 69 71 73 10Q4 11Q1 1
Slide 10: Core EPS Growth
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Core EPS Growth 20%+ Total Annual Growth Positive Operating Leverage 9 Core EPS (cents) Quarter 0 5 10 15 20 25 30 35 40 45 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 45 ¢
Slide 11: Balance Sheet Strength: Favorable Asset Quality
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Balance Sheet Strength Favorable Asset Quality Net Loan Charge - Offs Net Charge - Offs/ Average Loans (Percent) Quarter NPAs/ Assets (Basis Points) Quarter 10 40 50 60 70 80 90 100 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 58
Slide 12: Performance Improvement: Core ROA and ROE
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Performance Improvement Core Return on Assets Core Return on Equity Quarte r Core ROE (Percent) Quarte r Core ROA (Basis Points) 11 6.8% 3 3.5 4 4.5 5 5.5 6 6.5 7 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 30 40 50 60 70 80 90 1
Slide 13: Capital Strength
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Capital Strength Total Risk Based Capital Tangible Common Equity / Assets Tangible Common Equity/Assets (Percent) Quarte r Bank Risk Based Capital (Percent) 12 Quarte r 9.00 9.50 10.00 10.50 11.00 11.50 12.00 12.50
Slide 14: M&A Disciplines
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm M & A Disciplines Earnings accretion goals Manage tangible book value dilution ROE Targets Reasonable cost save objectives Modest reliance on revenue synergies Understanding purchase accounting impact
Slide 15: Recent M&A Deals
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Berkshire Hills Bancorp – Recent M & A Deals Bank Assets ($MM) Date Announced Date Closed Announced Deal Value ($MM) Price/ TBV Core Deposit Premium Rome Bancorp, Rome, NY 330 Oct 2010 Apr 2011 74 120% 6% Legac y Ba
Slide 16: Why Invest In Us
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Why Invest In Us Experienced executive management team Proven track record for results Strong financial condition Solid strategies for growth and performance Focused on shareholder return Higher market c
Slide 17: Forward Looking Statements
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm FORWARD LOOKING STATEMENTS. This presentation contains certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding a
Slide 18: Financial Performance and Goals
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Note: Core results exclude merger, divestiture and restructuring charges after tax totaling $0.4 million in 2010, $10.4 million in 201 1, $0.8 million in Q4 2011 and $3.6 million in Q1 2012. GAAP EPS for those perio
Slide 19: Balanced Portfolios
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Balanced Portfolios Note: Balances are as of March 31, 2012. On April 20, 2012, Berkshire acquired the Connecticut Bank and Trust Company which reported loans totaling $214 million and deposits totally $217 million
Slide 20: Questions and contact
If you have any questions, please contact: David Gonci P.O. Box 1308 Pittsfield, MA 01202 Investor Relations Officer (413) 281 - 1973 dgonci@berkshirebank.com Committed to the RIGHT core values: Respect Integrity Guts Having Fun Teamwork