Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (September 2014)
17 slides from Beacon Financial's investor presentation, Sep 11, 2014
Slide 1: Investor Presentation September 2014
Investor Presentation September 2014
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: Recent Highlights
Recent Highlights 2 Bill Ryan, former Chairman of TD Banknorth, joined the board as Independent Chairman (June) Small business banking team recruited from First Niagara to enhance New York operations (July) 20 branches acquired in Central New York from BofA (January) $440mm low cost deposits put int
Slide 4: 1H14 Results Summary
1H14 Results Summary Solid growth in revenues and core earnings (q/q) Core revenue growth 10% Q1; 2% Q2; 12% YTD Core EPS growth 5% Q1; 5% Q2; 10% YTD Fee income growth 14% Q1; 10% Q2; 25% YTD Loan growth (annualized) Total loan growth - 6% Q1; 20% Q2; 13% YTD Commercial loan growth – 9% Q1; 29% Q2;
Slide 5: Profitability
Focus on Profitability Grew EPS 20% before purchased loan accretion 1H14 Positive operating leverage from strong revenue growth and flat core expenses in Q2 Efficiency ratio below 63% - with goal of returning to sub-60% Improved asset sensitivity of interest income Continued strong credit metrics Do
Slide 6: Loan Growth
Focus on Loan Growth $ Millions 8% 14% 12% 21% Double Digit Annualized Total Loan Growth 13% annualized total loan growth YTD 2014 Leveraging deal flow from team recruitment Continued market share growth Healthy pipeline going into 3Q14 Targeting ongoing double digit commercial growth Expanded cross
Slide 7: 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 our regions Solid relationships within community Breakeven within first year Strong integr
Slide 8: Deposit Strategies
Focus on Deposit Strategies 7 20 branch purchase in Central New York completed 1Q14 $440 million, low cost deposits Balances/pricing retained 17% total deposit growth LTM 20% decrease in cost of deposits LTM Diversifying deposit sources Organic account growth, DDA focus Branch consolidations/relocat
Slide 9: 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 GPS checking and MyBanker initiatives New leadership and geographic reach 8
Slide 10: Retail Banking
Focus on Retail Banking 9 Redefining customer engagement through traditional and non-traditional methods Engaging Branches Friendlier pods replace teller lines Cash handling is automated Community rooms available Universal bankers create one stop shop for personal banking and insurance needs Virtual
Slide 11: Building Infrastructure
Focus on Building Infrastructure 10 National showcase for Archer risk/enterprise management solution Expanded financial planning and analysis resources for data driven management New retail loan originations platform implemented across footprint and virtual channel Installed top ranked loan analytic
Slide 12: Expenses
Focus on Expenses 11 7% reduction in core operating expenses 2H13 17 branches closed, consolidated or sold since 2012 Q2 y/y core expenses down 30 bps in relation to average assets Ongoing Six Sigma initiatives Mortgage Finance Retail New branches are smaller and more efficient 10% cost saves and 10
Slide 13: Why Invest in Us
Why Invest in Us Strong top and bottom line momentum Diversified revenue drivers and controlled expenses Well positioned footprint in attractive markets Experienced leadership team AMEB culture Solid internal capital generation supports growth Focused on long-term profitability goals and shareholder
Slide 14: 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 15: 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 16: Non-GAAP Reconciliation
Non-Gaap Reconciliation Note: See footnote on page 16 for description of non-core items 16 (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 17: 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
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