Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — KBW Community Bank Conference 2013
16 slides from Beacon Financial's conference presentation, Jul 30, 2013
Slide 1: KBW Community Bank Conference July 30-31, 2013
KBW Community Bank Conference July 30-31, 2013
Slide 2: Contacts
Contacts 1 Michael P. Daly Chairman, President & CEO mdaly@berkshirebank.com 413-236-3194 David H. Gonci Capital Markets Director dgonci@berkshirebank.com 413-281-1973 Allison P. O’Rourke VP, Investor Relations Officer aorourke@berkshirebank.com 413-236-3149
Slide 3: Who We Are
Who We Are Full Service Regional Bank with a distinctive brand and culture, strong middle market opportunities and a solid foundation Assets: $5.2 billion Loans: $3.8 billion Annualized Core Revenue: $220 million Deposits: $3.8 billion AUM: $1.2 billion Branches: 74 plus 10 lending offices Additiona
Slide 4: Q2 Results Summary
Q2 Results Summary 3 93 bps ROA 3.63% NIM Increase in TBV per share Security mark absorbed in AOCI Asset sensitivity maintained 17% annualized commercial business loan growth 3% annualized total commercial loan growth before targeted reductions Stable Revenues Core EPS of $0.48
Slide 5: Current Initiatives
4 Current Initiatives 20 Branch Acquisition from Bank of America Financially and strategically compelling Loan Growth Focus on C&I Recruitment of commercial lending teams Middle-market leasing Building for the Future Executive Changes Restructuring Initiative Expense focus
Slide 6: Branch Acquisition Highlights
Branch Acquisition Highlights 20 full service branches in Central NY Total deposits: $640mm Deposit premium: 2.25% Immediate EPS accretion TBV earnback: 4-5 years Expected closing: 1Q14* Seller: Bank of America *Transaction subject to regulatory approval BHLB Branches Pending Branches Sources: SNL F
Slide 7: Branch Acquisition Highlights
Branch Acquisition Highlights 6
Slide 8: Focus on Loan Growth
Focus on Loan Growth 7 Driving commercial business loan growth $644 $ Millions 74% Organic Growth
Slide 9: Disciplined recruitment of commercial lending teams
Disciplined recruitment of commercial lending teams in middle-market space drives profitability 8 Key Characteristics Established, well respected teams formerly attached to large banks focused outside of our regions Solid relationships within community Breakeven within first year Focus on Loan Growt
Slide 10: Executive Changes
Executive Changes Marotta promoted to Chief Administrative Officer New roles for commercial leadership team Bringing in new CFO 4 Banking «Insurance Wealth Management
Slide 11: Building for the Future
Building for the Future EPS: $0.42 ROA: 80 bps Revenue reduction: 3-4% Cost reduction: 4-5% Non-core restructuring charge Positioning for $0.45 core in 4Q13 Q3 Core Outlook 10
Slide 12: Why Invest in Us
Why Invest in Us Strong financial condition Diversified income drivers A leading regional bank in our footprint Experienced leadership team AMEB culture Well positioned for growth Demonstrated profitability 11
Slide 13: 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 14: Financial Performance & Goals
Financial Performance & Goals 13 2010 2011 2012 2013 H1 Financial Goals Core revenue growth 9% 31% 40% 27% 7 - 10%+ ann Net interest margin 3.28% 3.57% 3.62% 3.68% 3.30 - 3.50%+ Fee income/revenue 28% 24% 26% 25% 25 - 30%+ Efficiency ratio 71% 63% 59% 60% 53 - 57% Core ROA 0.51% 0.80% 0.98% 0.97% 1.
Slide 15: Non-GAAP Reconciliation
14 Non-GAAP Reconciliation (Dollars in thousands) 2010 2011 2012 2013 H1 Net income 13,615 $ 17,348 $ 33,188 $ 22,502 $ Gain on securities and other nonrecurring gains - (2,113) (1,485) (1,005) Non-recurring and merger related expense 447 19,928 18,019 5,839 Income taxes (87) (6,547) (6,114) (1,949)
Slide 16: 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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