Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — SunTrust Robinson Humphrey Financial Services Unconference 2014
20 slides from Beacon Financial's conference presentation, May 21, 2014
Slide 1: SunTrust Robinson Humphrey Financial Services Unconference
SunTrust Robinson Humphrey Financial Services Unconference May 21, 2014
Slide 2: Who We Are
Who We Are Full Service Regional Bank with a distinctive brand and culture, strong middle market opportunities and a solid foundation for growth Assets: $6.0 billion Loans: $4.2 billion Deposits: $4.2 billion Wealth AUM: $1.3 billion Annualized Revenue: $230 million Branches: 90 plus lending offices
Slide 3: Q1 Results Summary
Q1 Results Summary Solid growth in revenues and core earnings (Q/Q) 7% net interest income growth 14% fee income growth 5% core EPS growth Integration of 20 acquired Central New York branches Added $440 million in deposits 60,000 new customers Ongoing loan growth 9% annualized commercial loan growth
Slide 4: Current Initiatives
Current Initiatives Organic Revenue Growth Loans Commercial Emphasis Fee Income Pricing and Cross Sale Profitability Margin Expense Management Building for the Future Balance Sheet Positioning Capital Management 3
Slide 5: Focus on Loan Growth
Focus on Loan Growth Total Commercial Loan Growth 11% Annualized 13H2; 9% Annualized 14Q1 $697 $ Millions Ongoing Double-Digit Annualized C&I Growth Note: YTD loan generation based on net increase in commercial loans from business activities before acquired loan run-off C&I Growth 4 700 600 500 400
Slide 6: Focus on Loan Growth
Focus on Loan Growth $ Millions 16% 15% 11% 10% Double Digit Annualized Loan Growth Note: First half of 2013 balances declined due to portfolio repositioning Multiple regions Leveraging deal flow from team recruitment Expanded cross sales across footprint Expanded specialty lending 5 1500 1300 1100
Slide 7: Focus on Loan Growth: Recruited Commercial Lending Teams
Focus on Loan Growth Success with recruited commercial lending teams in middle-market space driving growth Key Characteristics Established, well respected teams formerly attached to large banks focused outside of our regions Solid relationships within community Breakeven within first year Teams prod
Slide 8: Focus on Loan Growth: Building the Retail Lending Platform
Focus on Loan Growth 7 Building the Retail Lending Platform Mortgage Consumer Lending Restructured Adding origination capacity Footprint opportunities Fee and portfolio focus Insurance and other cross-sales Auto loan growth Expanded footprint Managed by Syracuse team Cross-sell campaign to portfolio
Slide 9: Focus on Fee Income Growth
Focus on Fee Income Growth Emphasis on building fee income and enhancing cross-sell initiatives 60% growth FY13 19% growth FY13 Re-engineered across footprint New cross sell initiatives launched 18% growth FY13 New leadership and geographic reach 8 Wealth Management Retail Products Commercial Produc
Slide 10: Focus on Profitability
Focus on Profitability Improved net interest margin in Q1- benefited from acquired deposits and active balance sheet management 3.35% margin 3.24% margin before purchased loan accretion 17 bp reduction in cost of funds; 7 bp reduction in cost of deposits 5% organic personal DDA growth Ongoing benefi
Slide 11: Building for the Future: Q2 Outlook
Building for the Future Q2 Outlook 11 Core EPS stable or improving Target $0.42 or better GAAP EPS target the same Organic revenue drivers offsetting accretion runoff Commercial and consumer loan growth focus Volume growth vs. margin impacts Lower purchased loan accretion Loan yield management Fee i
Slide 12: Why Invest in Us
Why Invest in Us Strong financial condition Diversified revenue drivers Established footprint in attractive markets Experienced leadership team AMEB culture Well positioned for growth Focused on long-term profitability goals and shareholder value 12
Slide 13: Appendix
Appendix 13
Slide 14: 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. Forward-looking statements can be identified by the fact that they do not
Slide 15: Financial Performance & Goals
Financial Performance & Goals 2010 2011 2012 2013 Financial Goals Core revenue growth 9% 31% 40% 13% 7 - 10%+ ann Net interest margin 3.28% 3.57% 3.62% 3.63% 3.30%+ Fee income/revenue 28% 24% 26% 22% 25%+ Efficiency ratio 71% 63% 59% 61% < 60% Core ROA 0.51% 0.80% 0.98% 0.88% 1%+ Core ROE 3.6% 5.8%
Slide 16: Non-GAAP Reconciliation
Non-Gaap Reconciliation Note: See footnote on page 16 for description of non-core items 16 (Dollars in thousands) 2010 2011 2012 2013 Net income 13,615 $ 17,348 $ 33,188 $ 41,143 $ Non-core revenue (net) - (2,113) (1,485) (6,045) Non-core expense (net) 447 19,928 18,019 15,348 Income taxes (87) (6,5
Slide 17: Notes
Notes: 17
Slide 18: Notes
Notes: rica’s Most Exciting Bank’
Slide 19: Notes
Notes: 19
Slide 20: 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
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