Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Sandler O'Neill East Coast Financial Services Conference 2009
20 slides from Beacon Financial's conference presentation, Nov 12, 2009
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: Executive contacts
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 Corporate Finance Officer Phone: (413) 281-1973 Email: dgonci@berkshirebank.com Michael P. Daly President and
Slide 3: Why Invest in Berkshire Hills Bancorp?
Why Invest in Berkshire Hills Bancorp? Strong growth from organic, de novo and acquisition strategies Solid capital and risk management profile Distinctive brand and culture as America's Most Exciting Banksm Diversified integrated financial service revenues Positioned to be regional consolidator in
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
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 Bank of America Managing Director Background KeyBank EVP CFO Lawrence A. Boss
Slide 6: Distinctive Brand and Culture
Distinctive Brand and Culture
Slide 7: Attractive Core Markets
Attractive Core Markets Positive Economic Developments New York - Technology Berkshire County - Top Market Springfield - Technology and Healthcare Vermont - Services Fundamentals Better than U. S. Average Unemployment better than U. S. average Real estate values less volatile
Slide 8: 2009 Initiatives
2009 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 Successful capital raise Ongoi
Slide 9: Business Performance Through Nine Months
Business Performance Through Nine Months 10% annualized deposit growth 7% annualized commercial loan growth 14% wealth management annualized new business generation Net interest margin 3.0% Net loan charge-offs 0.52% annualized Decreasing non-interest expense before FDIC premiums 0.93% pre-tax pre-p
Slide 10: 2009 Earnings Notes
2009 Earnings Notes Improving net interest income in Q3 through commercial loan growth, focused deposit and loan pricing and reinvestment of liquid funds $1 million commercial swap fee income for year-to-date Building reserves through provisioning Expense growth target under 2% before FDIC premiums
Slide 11: Diversified Revenues and Regional Presence
Diversified Revenues and Regional Presence New York Vermont Springfield Berkshire County East 0.09 0.14 0.26 0.51 Banking Fees & Other Insurance Wealth Management Net Interest Income 13252 12622 4811 73234 Diversified Revenues $102 Million Expanding Regional Presence Bank Revenue Mix Note: Diversifi
Slide 12: Attractive Business Mix
Attractive Business Mix DDA/NOW SAV/MMDA Time < 100M Time > 100M East 0.23 0.37 0.2 0.2 Residential Consumer Commercial 0.32 0.16 0.52 Diversified Loan Portfolio $2.0 Billion Strong Deposit Funding $2.0 Billion
Slide 13: Loan Mix Managed for Quality Growth
Loan Mix Managed for Quality Growth Focus on commercial loans - 8% annual growth 2008 and 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
Slide 14: 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 September 30, 2009 Commercial & Industrial Residential Construction Other Construction Apartments & Dwellings Lodging C
Slide 15: Solid Asset Performance
Solid Asset Performance Note: Accruing delinquent loans include all accruing loans delinquent 30 days or more. Charge-offs are based on quarterly net charge-offs, annualized. New England and New York NPAs based on median NPAs/assets of exchange traded banks and thrifts per SNL (NPAs are non-accruals
Slide 16: Modest Net Loan Charge-Offs
Modest Net Loan Charge-Offs First Nine Months 2009 (Dollar values in thousands) Quarter End Loan Balance Annualized Net Charge-Offs/ Avg. Loans (%) Residential $625,864 0.03% Home Equity 206,228 0.07% Auto and Other Consumer 117,871 1.77% Commercial Business 178,337 0.76% Commercial Real Estate - Ot
Slide 17: Financial Model
Financial Model Corporate Goal 2008 9 Mo. 2009 3.5% Net Interest Margin 3.4% 3.0% 35% Fee Income/Revenues 28% 29% 55% Bank Efficiency Ratio 59% 66% 1.2% Core Tangible ROA 1.1% 0.6% 7 - 8% Tangible Equity/Assets 9.2% 9.3% 2008 Earnings per share = $2.06 2009 Nine months core earnings per share = $0.5
Slide 18: Why Invest in Berkshire Hills Bancorp?
Why Invest in Berkshire Hills Bancorp? Strong growth from organic, de novo and acquisition strategies Solid capital and risk management profile Distinctive brand and culture as America's Most Exciting Banksm Diversified integrated financial service revenues Positioned to be regional consolidator in
Slide 19: Notes
Notes
Slide 20: For Questions, Please Contact
FOR QUESTIONS, PLEASE CONTACT: David Gonci, Corporate Finance Officer 413-281-1973 - dgonci@berkshirebank.com Ann-Marie Racine, Investor Relations Contact 413-236-3239 - aracine@berkshirebank.com
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