Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Stern Agee Fifth Annual Financial Services Symposium 2010
20 slides from Beacon Financial's conference presentation, Feb 9, 2010
Slide 1: Forward Looking Statements
This presentation contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements, including factors
Slide 2: Kevin P. Riley EVP and CFO Phone: (413) 236-3195 Email: kriley@berkshirebank.com P.O. Box 1308,
Kevin P. Riley EVP and CFO Phone: (413) 236-3195 Email: kriley@berkshirebank.com P.O. Box 1308, Pittsfield, MA 01202 - Executive Offices - 66 West Street, Pittsfield, MA 01201 David H. Gonci Capital Markets Officer Phone: (413) 281-1973 Email: dgonci@berkshirebank.com Michael P. Daly President and C
Slide 3: Why Invest in Berkshire Hills Bancorp?
Why Invest in Berkshire Hills Bancorp? Strong growth from organic, de novo, product and acquisition strategies Solid capital, core funding and risk management culture Experienced executive team focused on earnings and shareholder value Distinctive brand and culture as America's Most Exciting Banksm
Slide 4: Our Growing Regional Franchise
Our Growing Regional Franchise $2.7 billion in assets; 46 financial centers Massachusetts, New York and Vermont Largest local regional bank Diversified revenues (fees 29%) $700 million assets under management Strong commercial platform New England asset based lending group
Slide 5: Experienced Leadership Team
Experienced Leadership Team Michael P. Daly President and CEO Kevin Riley EVP, CFO Sean Gray SVP, Retail Banking Background Bank of America Consumer Market Executive Background TD Banknorth Co-Regional Executive Background KeyBank EVP Group Head Background KeyBank EVP CFO Lawrence A. Bossidy Chairma
Slide 6: Distinctive Brand and Culture
Vision "To excel as a high performing market leader with the right people, attitude and energy providing an engaging and exciting customer and team member experience." People, Attitude, Energy Right People, Right Places, Right Things, Right Reasons Accountability Demonstrating the R.I.G.H.T. behavio
Slide 7: 2009 and Recent Initiatives
2009 and Recent Initiatives Strong organic business development Gaining share from national competitors Strengthening regional teams New York commercial leadership Springfield headquarters opening Focus on integrated services Insurance and wealth management Lean Sigma initiatives - insurance re-engi
Slide 8: 2009 and Recent Initiatives
2009 and Recent Initiatives New executive recruitment Robert Curley - Chairman of the New York Region Richard Marotta - EVP, Chief Risk Officer New business lines New England asset based lending group - premier team Springfield private banking - high profile Borrowings restructure Solar financing pa
Slide 9: Q4 Loan Initiative
Q4 Loan Initiative Loan level scrub of all classified commercial loans and other stressed credits Updated customer financials, pro formas and appraisals Strategies to reduce risk - bifurcations, modifications, outplacements, loan sales Anticipate moderate loan losses going forward, net of special re
Slide 10: Q4 Loan Results
Q4 Loan Results $28 million commercial net charge-offs $3 million residential and consumer net charge-offs $39 million NPAs - fully charged-down and/or reserved $20 million targeted reduction in NPAs in first half of 2010. Workouts in process at year-end $18 million performing commercial TDRs at yea
Slide 11: Non Performing Assets
Non Performing Assets 12/31/09 Total Balance Original Balance 9 commercial non-accruing loans over $1 million $29 million $48 million All other commercial non-accruing loans $6 million Residential and consumer non-accruing loans $4 million Real estate owned --- Total non-performing assets $39 millio
Slide 12: Business Performance in 2009
Business Performance in 2009 9% organic deposit growth 8% organic commercial loan growth 10% wealth management new business generation 3.01% net interest margin; up to 3.05% in Q4 $25 million profit before taxes, provision and FDIC, compared to $36 million in 2008. GAAP net loss after loan charge-of
Slide 13: 2009 Earnings Notes
2009 Earnings Notes 15% annualized net interest income growth in second half (Q4 vs Q2) through commercial loan growth, focused deposit and loan pricing and reinvestment of liquid funds Building reserves through provisioning Non-interest expense growth under 2% before FDIC premiums and Q4 charges of
Slide 14: Diversified Revenues and Regional Presence
Diversified Revenues and Regional Presence New York Vermont Springfield Berkshire County East 0.09 0.14 0.27 0.5 Banking Fees & Other Insurance Wealth Management Net Interest Income 0.12 0.12 0.05 0.71 Diversified Revenues $99 Million Expanding Regional Presence Bank Revenue Mix Note: Data based on
Slide 15: Attractive Business Mix
Attractive Business Mix DDA/NOW SAV/MMDA Time < 100M Time > 100M East 0.24 0.37 0.2 0.19 Residential Consumer Commercial 0.31 0.16 0.53 Diversified Loan Portfolio $2.0 Billion Strong Deposit Funding $2.0 Billion Note: Data is as of 12/31/09.
Slide 16: Loan Mix Managed for Quality Growth
Loan Mix Managed for Quality Growth Focus on commercial loans - 8% organic growth in 2009 Indirect auto running off in 2010 Strong credit disciplines - no high LTV or sub-prime or Alt A loan programs All lending is to relationships in Berkshire's New England and New York lending areas 2005 2006 2007
Slide 17: Diversified Commercial Loan Industry Exposure
Diversified Commercial Loan Industry Exposure No loans to out of area relationships Modest residential construction - 3% of total loans Total Commercial Loans = $1.04 Billion As of December 31, 2009 Commercial & Industrial Residential Construction Other Construction Apartments & Dwellings Lodging Co
Slide 18: 2010 Objectives
2010 Objectives Complete workouts in process on $20 million in non-performing assets in first half with no income impact. Target NPAs/Assets under 1% Ongoing organic growth in all business lines, with New York emphasis Core EPS $0.85 - $0.95 target for 2010 Total revenue rebounding to $107 million r
Slide 19: For Questions, Please Contact
FOR QUESTIONS, PLEASE CONTACT: David Gonci, Corporate Finance Officer 413-281-1973 - dgonci@berkshirebank.com
Slide 20: Berkshire Hills Bancorp
BERKSHIRE HILLSBANCORP Berkshire Bank-America’s Most Exciting Bank
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