Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (February 2011)
16 slides from Beacon Financial's investor presentation, Feb 10, 2011
Slide 1: Berkshire Hills Bancorp Investor Presentation
BERKSHIRE HILESBANCORP Berkshire Bank-America’s Most Exciting Bank a wee ey caged —<- E WEALTH MA Se Investor Presentation February 10, 2011
Slide 2: Most Exciting Bank - Investor Contacts
Most Exciting Bank ™ Berserk icsBaNncorr Rexkshire: Bank dumesica’s Most Euciting Rank -— Q ras A Kevin P. Riley hae David H. Gonci Executive Vice President, CFO oie Investor Relations Officer Phone: (413) 236-3195 o, Phone: (413) 281-1973 ¥ Email: dgonci@berkshirebank.com 7 Michael P. Daly Presiden
Slide 3: Berkshire Hills Bancorp
Berkshire Hills Bancorp Regional bank with nearly $3 billion in assets 42 full service branches in three states - Massachusetts, New York and Vermont Retail and commercial banking, insurance and wealth management services Experienced / energetic management team Strong revenue and earnings growth Qua
Slide 4: Strong Financial Performance in 2010
Strong Financial Performance in 2010 Strong balance sheet growth 9% loan growth 85th 11% deposit growth 75% Double digit revenue growth 10% net revenue growth 55th Improved profitability 32% increase in pre-tax, pre-provision profit 85th Favorable asset quality 0.59% non-performing assets/assets (FY
Slide 5: 2010 Highlights
2010 Highlights Strong organic loan and deposit business development in all regions, with deposit growth funding loan growth Positive operating leverage from 10% revenue growth while expense growth held to 4% including start-up costs of expansion initiatives New Asset Based Lending group produced ne
Slide 6: 2010 Highlights
2010 Highlights Two de novo branches opened in strategically important New York Albany region Consolidated insurance offices and created new insurance service center, reducing costs, improving service and providing scalable growth platform Reorganized wealth management and recruited new senior leade
Slide 7: Building Through Bank Acquisitions
Building Through Bank Acquisitions (3 in millions) Total assets Total core revenue Total branches Market capitalization Tangible equity/assets Berkshire Pro Forma Combined Most Exciting Bank ™” Increase Note: Berkshire and Legacy data is as of and for the year 12/31/10; Rome data is as of 9/30/10 (a
Slide 8: Acquisition Strategies
America’s Most Exciting Bank ™ Acquisition Strategies Target northeast markets Earnings per share accretive Double digit return on investment Moderate tangible book value dilution Improved financial metrics Maintenance of strong capital Prudent asset quality marks Banking - Insurance - Wealth Manage
Slide 9: Plans for Strong Core Earnings Growth in 2011 & 2012
Plans for Strong Core Earnings Growth in 2011 & 2012 Core EPS to increase 40 — 50% in 2011 to the range of $1.40 - $1.50 GAAP EPS to include one-time merger related charges Organic core revenue growth in high single digits Organic core non-interest expense growth in low single digits First quarter c
Slide 10: Why Invest in Berkshire Hills Bancorp?
Why Invest in Berkshire Hills Bancorp? Strong growth from organic, de novo, product and acquisition strategies Core earnings advancing at 25%+ organic annualized rate Mergers to provide additional core EPS accretion while also improving most financial performance metrics Strong asset quality with so
Slide 11: Forward Looking Statements
America’s Most Exciting Bank ™ FORWARD LOOKING STATEMENTS. his presentation contains certain forward-looking statements within the meaning ofthe Private ‘Securities Litigation Reform Act of 1995, including statements about the proposed merger of Berkshire with Rome Bancorp, Inc. Rome"), and Legacy B
Slide 12: Financial Performance and Goals
Financial Performance and Goals Core revenue growth Net interest margin Fee incomejtotal revenue Efficiency ratio Pretax, pre-prov. core ROA Core ROA Core ROE Core ROTE expenses. Guidance and goals exclude M&A deal expenses, America’s Most Exciting Bank ™ Guidance 2011 Qa Banking - Insurance - Wealt
Slide 13: Diversified Revenues and Regional Presence
America‘ Most Exciting Bank “" Diversified Revenues and Regional Presence Exhibit B Record revenues of $108 million in 2010 Diversified Revenues Banking Fees & Other 15% Insurance 10% Wealth Management 4% Expanding Regional Presence Net Interest New York Income 2% 2% Berkshire Vermont County 149% 43
Slide 14: Loan Mix Managed for Quality Growth
America’s Most Exciting Bank “” Loan Mix Managed for Quality Growth ceili Double digit organic commercial loan growth Diversifying commercial loan exposure Growing share of residential mortgage and consumer lending Strong credit disciplines All lending is to relationships in Berkshire’s Northeast ma
Slide 15: Diversified Commercial Loan Exposure
Exhibit D Diversified Commercial Loan Exposure Total Commercial Loans = $1.2 Billion (Year-end 2010) Cammarcial ind uetial, 23% RE Ranta, 23%, Ladging, ans6___— ‘Apartments Dwellings, re Note: CRE Owner Occupied is based on FDIC definition. CRE Rental is based on SIC Code 6512 — Operators of Non-Res
Slide 16: Berkshire Hills Bancorp
BERKSHIREHILLSBANCORP Berkshire Bank-America’s Most Exciting Bank
Berkshire Hills Bancorp — Investor Presentation (February 2011) on 6ix