Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Sterne Agee Financial Institutions Conference 2014
20 slides from Beacon Financial's conference presentation, Feb 13, 2014
Slide 1: Sterne Agee Financial Institutions Conference February 12-14, 2014
Sterne Agee Financial Institutions Conference February 12-14, 2014
Slide 2: Contacts
Contacts 1 Michael Daly Chairman, President & CEO mdaly@berkshirebank.com 413-236-3194 Josephine Iannelli EVP, Chief Financial Officer jiannelli@berkshirebank.com 413-236-3379 Allison O’Rourke VP, Investor Relations Officer aorourke@berkshirebank.com 413-236-3149
Slide 3: Who We Are
Who We Are 2 Full Service Regional Bank with a distinctive brand and culture, strong middle market opportunities and a solid foundation for growth Assets: $6.0 billion Loans: $4.2 billion LTM Revenue: $230 million Deposits: $4.3 billion Wealth AUM: $1.3 billion Branches: 92 plus lending offices Foot
Slide 4: Q4 Results Summary
Q4 Results Summary 3 Strong loan growth, cost cutting and focus on fee income 16% annualized total loan growth 14% annualized growth in total commercial loans 6% fee income growth – Q/Q ann. 3% reduction in core expense – Q/Q 7% reduction in core expense in last six months Delivered on core earnings
Slide 5: Current Initiatives
4 Current Initiatives Organic Revenue Growth Loans Commercial Emphasis Fee Income Pricing and Cross Sale Profitability Margin Expense Management New York Branch Integration 18 New Branches; 65,000 New Customers Funds Reinvestment Building for the Future Balance Sheet Positioning Capital Management
Slide 6: Focus on Loan Growth
Focus on Loan Growth 5 Total Commercial Loan Growth: 11% Annualized 2H13 5% FY 13 $687 $ Millions Ongoing Double-Digit Annualized C&I Growth Note: YTD loan generation based on net increase in commercial loans from business activities before acquired loan run-off C&I Growth
Slide 7: Focus on Loan Growth
Focus on Loan Growth 6 $ Millions 12% 8% 7% 5% 8% Total Loan Growth in 2H13 Note: First half of 2013 balances declined due to portfolio repositioning Multiple regions Leveraging deal flow from team recruitment Expanded cross sales across footprint Expanded specialty lending
Slide 8: Success with recruited commercial lending teams in middle-market space driving growth
Success with recruited commercial lending teams in middle-market space driving growth 7 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 producing solid results
Slide 9: Double-Digit Annualized Growth in Consumer Lending – Q3 & Q4 2013
Double-Digit Annualized Growth in Consumer Lending – Q3 & Q4 2013 8 Focus on Loan Growth
Slide 10: Emphasis on building fee income and enhancing cross-sell initiatives
Emphasis on building fee income and enhancing cross-sell initiatives 9 Focus on Fee Income Growth 60% growth FY13 19% growth FY13 Stabilized at year end New cross sell initiatives launched 18% growth FY13 New leadership and geographic reach
Slide 11: Focus on Profitability
10 Positive Core Operating Leverage – Q4, ex accretion 23% increase in core income – Q/Q 5% annualized core revenue growth 3% decrease in core expenses Ongoing Benefits from Restructuring 2 branches consolidated in Q4; 5 in FY13 11% reduction in comp and occupancy - Q4 Y/Y Focus on Profitability Dou
Slide 12: New York Branch Integration
New York Branch Integration 11 18 Branches in Central and Eastern New York Fills in our footprint from Syracuse to Albany $450 million in low cost deposits 65,000 new customers Asset sensitive to interest income at risk Liquidity to support targeted loan growth Fee income initially targeted at 25% o
Slide 13: Building for the Future
Building for the Future Mid-single-digit annualized organic core revenue growth Double-digit annualized organic loan growth Low single-digit annualized organic deposit growth Stabilizing margin Higher expenses due to seasonality and branch acquisition Declining purchased loan accretion Core EPS of $
Slide 14: Why Invest in Us
Why Invest in Us Strong financial condition Diversified revenue drivers Established footprint in attractive markets Experienced leadership team AMEB culture Well positioned for growth Focused on long-term profitability goals and shareholder value 13 13
Slide 15: Appendix
Appendix 14
Slide 16: 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 17: Financial Performance & Goals
Financial Performance & Goals 16 16 2010 2011 2012 2013 Financial Goals Core revenue growth 9% 31% 40% 13% 7 - 10%+ ann Net interest margin 3.28% 3.57% 3.62% 3.63% 3.30%+ Fee income/revenue 28% 24% 26% 22% 25%+ Efficiency ratio 71% 63% 59% 61% < 60% Core ROA 0.51% 0.80% 0.98% 0.88% 1%+ Core ROE 3.6%
Slide 18: Non-GAAP Reconciliation
17 17 Non-GAAP Reconciliation Note: See footnote on page 16 for description of non-core items (Dollars in thousands) 2010 2011 2012 2013 Net income 13,615 $ 17,348 $ 33,188 $ 41,143 $ Non-core revenue (net) - (2,113) (1,485) (6,045) Non-core expense (net) 447 19,928 18,019 15,348 Income taxes (87) (
Slide 19: Berkshire Hills Bancorp
BERKSHIRE HILLS BANCORP Sa % NYSE 8 Notes: Banking -Insura alth Mani
Slide 20: If you have any questions, please 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 Committed to the RIGHT core values: Respect Integrity Guts Having Fun Teamwork
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