Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (May 2013)
24 slides from Beacon Financial's investor presentation, May 28, 2013
Slide 1: Investor Presentation May 2013
Investor Presentation May 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 track record for results 2 Retail Banking Insurance & Wealth Management Commercial Banking
Slide 4: Who We Are
Who We Are Assets: $5.2 billion Loans: $3.9 billion Annualized Revenue: $225 million Deposits: $4.1 billion AUM: $1.2 billion Branches: 73 plus 10 lending offices Footprint: New England and Central New York Shareholders’ Equity: $674 million Market Capitalization: $670 million NYSE: BHLB 3
Slide 5: Recent Initiatives
4 Recent Initiatives Completed and integrated CBT and Beacon mergers Opened 4 new branches Recruited commercial lending teams in Eastern MA, Syracuse and Hartford On-boarded Eastern MA mortgage banking operation Completed Core Systems Conversion and follow on Six Sigma projects Transferred our stock
Slide 6: Strategy
Build Shareholder Value Invest in People & Infrastructure Demonstrate Disciplined Growth Drive Profitability 5 Strategy
Slide 7: Invest in People & Infrastructure
Invest in People & Infrastructure AMEB Culture Creates Success Focused on hiring experts and building depth across the organization Performance driven culture managed by scorecards and 360 reviews RIGHT values encouraged and rewarded Larry Bossidy, Execution “If you don’t get the people process righ
Slide 8: Invest in People & Infrastructure
Invest in People & Infrastructure Disciplined recruitment of commercial lending teams in middle-market space drives profitability 7 Albany Team ABL Team Central MA Team Hartford Team Syracuse Team Eastern MA Team Key Characteristics Established, well respected teams formerly attached to large banks
Slide 9: Invest in People & Infrastructure
Invest in People & Infrastructure Continuous Six Sigma projects Upgraded core operating systems Better data mining leading to better analytics Elaborate scorecarding as basis for performance management Regional headquarters with local management 8 We maintain financial and operating discipline with
Slide 10: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 9 Decision making for loans, investments and M&A guided by financial and risk disciplines ROE Interest Rate Sensitivity Asset Quality Leverage Liquidity
Slide 11: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 10 As we build our franchise, we are focused on organic revenue growth and opportunities across our footprint 0 10 20 30 40 2008 2009 2010 2011 2012 Cumulative Organic Growth (%) Loans Deposits 35% 25% Note: Organic growth excludes acquisitions, divestitures and discon
Slide 12: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 11 Our focus on commercial business loan growth has paid off with consistent returns $618 $ Millions 52 % Organic Growth 0 100 200 300 400 500 600 700 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 Acquired Organic
Slide 13: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 12 Diversifying our revenues with a focus on commercial lending and fee business growth 74% 9% 8% 5% 4% Revenue Mix Net Interest Income Loan Fees Deposit Fees Insurance Wealth Management 32% 36% 16% 16% Loan Mix Residential Mortgages Commercial Real Estate Commercial B
Slide 14: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth Four bank mergers in the last two years Double digit organic growth EPS accretion from combined strategies Ongoing accretion of tangible book value (TBVPS) Increased float & market cap due to shares issued 13 $ millions 12/31/10 Acquired Banks All Other Changes 12/31/1
Slide 15: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 14 We maintain positive operating leverage by growing revenues and managing expenses $ Millions Core Revenue and Core Expense Note: See end note about non-GAAP measures 0 10 20 30 40 50 60 70 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 1Q13 Core Revenue Core Expense $34 $5
Slide 16: Drive Profitability
Drive Profitability 15 Greater Efficiency 55 60 65 70 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 Core Return on Assets 103bp 30 40 50 60 70 80 90 100 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 Efficiency Ratio 57.1% Our Efficiency Ratio and Core ROA have shown marked improvements over the last t
Slide 17: Drive Profitability
Drive Profitability 16 20 30 40 50 60 54¢ Core EPS Growth Core Return on Equity Focused on achieving double digit Core ROE and double digit Core EPS growth 0 2 4 6 8 10 8.1% Note: See end note about non-GAAP measures
Slide 18: Our Financial Goals & Objectives
Our Financial Goals & Objectives 17 Double digit annual EPS growth Return on assets > 1.10% Return on equity > 10% Return on tangible equity >15% Efficiency ratio < 55% Positive Operating Leverage Loan growth Expense management Process improvement Competitive dividend Drive Profitability
Slide 19: Why Invest in Us
Why Invest in Us Strong financial condition Diversified income drivers Established footprint in attractive markets Experienced leadership team AMEB culture Well positioned for growth Increasing shareholder returns 18
Slide 20: Appendix
Appendix Avra Moat a
Slide 21: Financial Performance & Goals
Financial Performance & Goals 20 2010 2011 2012 2013 Q1 Financial Goals Core revenue growth 9% 31% 40% 38% 7 - 10%+ ann Net interest margin 3.28% 3.57% 3.62% 3.73% 3.30 - 3.50%+ Fee income/revenue 28% 24% 26% 25% 25 - 30%+ Efficiency ratio 71% 63% 59% 57% 53 - 57% Core ROA 0.51% 0.80% 0.98% 1.03% 1.
Slide 22: Non-GAAP Reconciliation
21 Non-GAAP Reconciliation 2010 2011 2012 2013 Q1 Dollars in thousands) Net income 13,615 $ 17,348 $ 33,188 $ 10,465 $ Gain on securities and other nonrecurring gains - (2,113) (1,485) - Non-recurring and merger related expense 447 19,928 18,019 5,064 Income taxes (87) (6,547) (6,114) (2,042) Net (i
Slide 23: 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. Forwardlooking statements can be identified by the fact that they do not
Slide 24: 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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