Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — East Coast IDEAS Investor Conference 2013
23 slides from Beacon Financial's conference presentation, May 15, 2013
Slide 1: East Coast IDEAS Investor Conference May 15, 2013
East Coast IDEAS Investor Conference May 15, 2013
Slide 2: Contacts
Contacts 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 1
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 Retail Banking Insurance & Wealth Management Commercial Banking 2
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 . NY
Slide 5: Recent Initiatives
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
Slide 6: Strategy
Strategy Build Shareholder Value Invest in People & Infrastructure Demonstrate Disciplined Growth Drive Profitability 5
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 “If you don’t get the people process right, you will never f
Slide 8: Invest in People & Infrastructure
Invest in People & Infrastructure Disciplined recruitment of commercial lending teams in middle-market space drives profitability 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 We maintain financial and operating discipli
Slide 10: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth Decision making for loans, investments and M&A guided by financial and risk disciplines ROE Interest Rate Sensitivity Asset Quality Leverage Liquidity 9
Slide 11: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 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 discontin
Slide 12: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 250 350 450 550 650 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 52% Organic Growth Our focus on commercial business loan growth has paid off with consistent returns $ Millions 11
Slide 13: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth Growing our commercial business lines without losing sight of our retail base 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 Business Co
Slide 14: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 13 $ millions 12/31/10 Acquired Banks All Other Changes 12/31/12 Total assets 2,881 2,160 256 5,297 Loans 2,142 1,652 195 3,989 Deposits 2,204 1,511 385 4,100 Tangible equity 216 143 34 393 TBVPS $15.31 $15.63 Shares (thousands) 14,076 25,148 FY10 Q412 Ann. Revenues 10
Slide 15: Demonstrate Disciplined Growth
Demonstrate Disciplined Growth 20 30 40 50 60 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 1Q13 $57 We maintain positive operating leverage by growing revenues and managing expenses $ Millions Total Net Revenue 14
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 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q
Slide 18: Our Financial Goals & Objectives
Our Financial Goals & Objectives 17 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 18 . Strong financial condition . Diversified income drivers . Established footprint in attractive markets . Experienced leadership team . AMEB culture . Well positioned for growth . Increasing shareholder returns
Slide 20: Banking Insurance Wealth Management
Banking Insurance Wealth Management
Slide 21: Financial Performance & Goals
Financial Performance & Goals 20 2010 2011 2012 2013 Q1 Financial Goals Core revenue growth 9% 31% 46% 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 0.52% 0.80% 0.98% 1.03% 1.
Slide 22: Forward Looking Statements
21 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
Slide 23: 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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