Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — KBW Community Bank Investor Conference 2011
20 slides from Beacon Financial's conference presentation, Aug 2, 2011
Slide 1: KBW Community Bank Investor Conference
KBW Community Bank Investor Conference August 2 – 3, 2011
Slide 2: Presenter contact details
Kevin P. Riley EVP, Chief Financial Officer Phone: (413) 236-3195 Email: kriley@berkshirebank.com Robert M. Curley Chairman, New York Region Phone: (518) 729-1422 Email: rcurley@berkshirebank.com Patrick J. Sullivan EVP, Commercial Banking & Wealth Management Phone: (413) 236-3736 Email: psullivan@b
Slide 3: Berkshire Hills Bancorp
Berkshire Hills Bancorp Strong revenue and earnings growth Quality balance sheet Regional bank with $4 billion in assets 60+ full service branches in three states - Massachusetts, New York and Vermont Retail & commercial banking, insurance, & wealth management services Tan dots represent recently ac
Slide 4: Recruited Experienced Leadership Team
Recruited Experienced Leadership Team Michael P. Daly President and CEO Lawrence A. Bossidy Chairman Background Vice Chair, GE CEO, Allied Signal/Honeywell Patrick Sullivan Richard Marotta Linda Johnston Kevin Riley Sean Gray EVP, Commercial & EVP, Risk EVP, Human EVP, CFO EVP, Retail Wealth Managem
Slide 5: Attractive Northeast Markets
Attractive Northeast Markets Northeast stronger than most other regions Improving conditions in traditional markets – Western Mass. and Vermont Tourism, recreation, hospitality Albany – a national technology hotspot Chip fabrication Nanotechnology Green technology Eastern Mass. Technology Education
Slide 6: Strategic Initiatives
Strategic Initiatives Recruiting Top Teams Asset Based Lending Commercial Banking Private Banking De novo Branch Expansion Albany De novo Branch Program Innovative Branch Design Brand Initiatives AMEB U – America’s Most Exciting Bank University www.jointheexcitement.com Six Sigma Process Improvement
Slide 7: Revenue Growth
Revenue Growth 9% Organic Annual Growth 20%+ Total Annual Growth 6
Slide 8: Performance Improvement
Performance Improvement Greater Efficiency Target 60% Efficiency Ratio in Near Term Increasing Core ROA Target 1.00%+ 7
Slide 9: Core EPS Growth
Core EPS Growth 25%+ Annualized Organic Growth Positive Operating Leverage 8
Slide 10: Balance Sheet Strength
Balance Sheet Strength Favorable and Improving Asset Quality Solid Capital Supporting Strong Growth Quarter 9
Slide 11: Building Through Bank Acquisitions
Building Through Bank Acquisitions Pro Forma ($ in millions) Berkshire Rome Legacy Combined Increase Total assets $2,906 $320 $887 $4,113 42% Total core revenue $108 $16 $31 $155 44% Total branches 42 5 15 62 48% Total loans $2,194 $263 $587 $3,044 39% Total deposits $2,257 $229 $502 $2,988 32% Note
Slide 12: Acquisition Strategies and Integration Strength
Acquisition Strategies Target northeast markets Earnings per share accretive Double digit return on investment Moderate tangible book value dilution Improved financial metrics Maintenance of strong capital Prudent asset quality marks Integration Strength Dedicated Project Management Office reporting
Slide 13: Plans for Strong Core Earnings Growth in 2011 & 2012
Plans for Strong Core Earnings Growth in 2011 & 2012 Core EPS targeted to increase 40 – 50% in 2011 toward upper end of $1.40 - $1.50 range GAAP EPS to include one-time merger related charges Organic core revenue growth target in high single digits Organic core non-interest expense growth target in
Slide 14: Why Buy Berkshire Hills?
Why Buy Berkshire Hills? Strong growth from organic, de novo, product and acquisition strategies Improving core profitability metrics Core earnings advancing at 25%+ organic annualized rate Strong asset quality with solid capital and core funding Experienced executive team Distinctive brand and cult
Slide 15: Forward Looking Statements
FORWARD LOOKING STATEMENTS. This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the mergers of Berkshire with Rome Bancorp, Inc. (“Rome”) and Legacy Bancorp, Inc. (“Legacy”). These statem
Slide 16: Financial Performance and Goals
Exhibit A Financial Performance and Goals 2011 Q3 Long Term 2008 2009 2010 Guidance Financial Goals Core revenue growth 21% -8% 9% 49% 10%+ Net interest margin 3.44% 3.00% 3.27% 3.52% 3.50%+ Fee income/total revenue 28% 29% 28% NA 35%+ Efficiency ratio 61% 73% 71% 64% 55% Pretax, pre-prov. core ROA
Slide 17: Diversified Revenues and Regional Presence
Diversified Revenues and Regional Presence Exhibit B Record revenues of $114 million Diversified Revenues Expanding Regional Presence Deposits Note: Revenues are for 12 months ended 06/30/2011. Deposits based on Berkshire Bank at 6/30/11 and Legacy Banks at 6/30/10 excluding deposits to be divested
Slide 18: Balanced Portfolios
Exhibit C Balanced Portfolios Deposits $3.0 Billion Loans $3.0 Billion Note: Balances are as of June 30, 2011 and include balances of Legacy Banks, which was acquired on July 21, 2011. Legacy balances exclude any purchase accounting adjustments. Total Legacy deposits excluded planned branch divestit
Slide 19: Diversified Commercial Loan Exposure
Exhibit D Diversified Commercial Loan Exposure Total Commercial Loans = $1.6 Billion Growing Commercial and Industrial Note: Data is as of 6/30/11 based on Call Reports of Berkshire Bank and Legacy Banks, which was acquired as of 07/21/2011. Hospitality data estimated. 18
Slide 20: Questions and contact; core values
If you have any questions, please contact: Committed to the David Gonci RIGHT core values: Investor Relations Officer Respect (413) 281-1973 Integrity dgonci@berkshirebank.com Guts Having Fun Teamwork
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