Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (June 2010)
20 slides from Beacon Financial's investor presentation, Jun 14, 2010
Slide 1: Investor Presentations June 14-15, 2010
Investor Presentations June 14 - 15, 2010 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 for
Slide 2: Executive offices and investor relations contacts
P.O. Box 1308, Pittsfield, MA 01202 - Executive Offices - 66 West Street, Pittsfield, MA 01201 David H. Gonci Investor Relations Officer Phone: (413) 281-1973 Email: dgonci@berkshirebank.com Michael P. Daly President and CEO Phone: (413) 236-3194 Email: mdaly@berkshirebank.com
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; 45 financial centers Total revenues $100+ million Massachusetts, New York and Vermont Largest local regional bank Diversified revenues (fees~30%) Integrated insurance and wealth management ($700 million AUM) Strong commercial platform New Englan
Slide 5: Recruited Experienced Leadership Team
Recruited 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. Bossi
Slide 6: Attractive Markets
Attractive Markets Berkshire County and Vermont - Worlds' Top Destinations Rated #5 (Vermont) and #7 (Berkshire) in the world by National Geographic Traveler (December 2009) Ratings based on environment, culture, history, aesthetic appeal, tourism and outlook New York's Tech Valley - World Technolog
Slide 7: Regional Growth - Organic, De Novo and Acquisitions
Regional Growth - Organic, De Novo and Acquisitions Berkshire County Region (traditional home market). 12 bank branches. $890 million in loans and $870 million in deposits. Market GDP $5 billion. Southern Vermont Region (Factory Point acquisition 2007). 7 bank branches. $225 million in loans and $31
Slide 8: Vision and 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 9: Recent Initiatives
Recent Initiatives Strong organic business development Gaining share from national competitors Strengthening regional teams New York leadership Springfield headquarters opening, new retail platform New business lines New England asset based lending group - premier team Springfield private banking -
Slide 10: Q4 2009 Loan Initiative
Q4 2009 Loan Initiative Loan level scrub of all classified commercial loans and other stressed credits Most classified loans paying current - addressed issues before they impacted performance Strategies to reduce risk - bifurcations, modifications, outplacements, loan sales Q1 2010 NPAs declined to
Slide 11: Financial Performance and Goals
Financial Performance and Goals Ahead of plan in Q1 2010 2007 2008 2009 Guidance 2010 Annual Financial Goals Revenue growth 23% 21% -8% 8%+ 10%+ Net interest margin 3.26% 3.44% 3.00% 3.20%+ 3.50%+ Fee income/Total revenue 30% 28% 29% 28%+ 35%+ Efficiency ratio 63% 61% 73% 70% 55% Pretax, Pre-provisi
Slide 12: Diversified Revenues and Regional Presence
Diversified Revenues and Regional Presence Target record revenues of $107 million in 2010 New York Vermont Springfield Berkshire County East 0.12 0.14 0.31 0.43 Banking Fees & Other Insurance Wealth Management Net Interest Income 0.12 0.12 0.05 0.71 Diversified Revenues Expanding Regional Presence B
Slide 13: Attractive Business Mix
Attractive Business Mix DDA/NOW SAV/MMDA Time < 100M Time > 100M East 0.23 0.4 0.18 0.19 Residential Consumer Commercial 0.32 0.15 0.53 Diversified Loan Portfolio $2.0 Billion Strong Deposit Funding $2.0 Billion Note: Data is as of 3/31/10.
Slide 14: Loan Mix Managed for Quality Growth
Loan Mix Managed for Quality Growth Focus on commercial loans - double digit organic growth target Plan to grow C & I including new asset based lending group 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
Slide 15: Diversified Commercial Loan Exposure
Diversified Commercial Loan Exposure No loans to out of area relationships Modest residential construction - 3% of total loans Total Commercial Loans = $1.04 Billion As of March 31, 2010 Commercial & Industrial Residential Construction Other Construction Apartments & Dwellings Lodging Commercial Rea
Slide 16: 2010 Objectives for Growth and Earnings
2010 Objectives for Growth and Earnings Maintain nonperforming assets/assets under 0.75% Ongoing organic growth in all business lines Core EPS $0.85 - $0.95 target for 2010 - ahead of plan in Q1 Commercial loan growth over 15% including new asset based lending group Deposit growth over 5% including
Slide 17: EPS Growth Targets Beyond 2010
EPS Growth Targets Beyond 2010 $0.20+ from margin benefit of 200 basis point rate increase $0.30+ from 8%+ volume growth in 2011 $0.30+ from 8%+ volume growth in 2012 $0.20 from lower loss provision as charge-offs normalize $1.00+ incremental EPS growth target Goal to achieve $2.00 EPS run rate by e
Slide 18: M & A Objectives
M & A Objectives Utilize strong combination of management, brand and culture to develop market share in attractive Northeast markets Target deal metrics EPS accretion Any dilution of TVPS accreted back through earnings in short term Double digit ROI Mostly stock consideration - surviving currency to
Slide 19: BHLB - Compelling Value Opportunity
BHLB - Compelling Value Opportunity Price/TBV Price/TBV 142% Peer median (15 exchange traded banks and thrifts: NPAs/Assets < 1.0%, TE/TA > 8.0%, total assets $2 - 10 billion) 113% BHLB Current Price/YTD High Price Current Price/YTD High Price 83% Peer median 74% BHLB Note: Based on SNL data as of 0
Slide 20: BHLB - On the Move for Attractive Investment Returns
Berkshire Bank - America's Most Exciting Banksm ON THE MOVE BHLB - On the Move for Attractive Investment Returns Clean balance sheet and improving asset metrics Strong capital and liquidity Positioned to take advantage of the stronger economy and higher rates we think are coming our way Talented and
Berkshire Hills Bancorp — Investor Presentation (June 2010) on 6ix