Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Investor Presentation (February 2016)
24 slides from Beacon Financial's investor presentation, Feb 10, 2016
Slide 1: Table of Contents
Table of Contents Who We Are – pg. 3 2015 Strategic Highlights – pg. 4 Core Earnings Momentum – pg. 5 Loan and Deposit Growth – pgs. 6-9 Customer Engagement – pg. 10 Fee Business Growth – pg. 11 Controlled Expenses – pg. 12 Talent Recruitment – pg. 13 AMEB Culture – pg. 14 Acquisition Discipline – p
Slide 2: Who We Are
Who We Are Full service regional bank with a distinctive brand and culture, strong middle market opportunities, a solid foundation and ongoing momentum Assets: $7.8 billion Loans: $5.7 billion Deposits: $5.6 billion Wealth AUM: $1.4 billion Core Revenue: $270 million (LTM) Branches: 93 Footprint: Ne
Slide 3: 2015 Strategic Highlights
2015 Strategic Highlights Solid core earnings growth and improving profitability Grew core EPS to $2.09 in 2015 from $1.80 in 2014 Significant improvements in core ROE and core ROA Smooth integration of two acquisitions Hampden Bank – in-market acquisition that moved us into top 5 deposit market sha
Slide 4: Core Earnings Momentum
Core Earnings Momentum 5 Note: Growth includes acquisitions. GAAP EPS was $0.97 for FY11 and $1.73 for FY15. GAAP revenue was $142 million and $268 million for those same periods. 16% Core EPS Growth (FY15/FY14) 13% Core Revenue Growth (FY15/FY14) $140 $266 $1.54 $2.09 $0.90 $1.40 $1.90 $2.40 $2.90
Slide 5: Strong Loan and Deposit Growth
Note: All data as of 12/31/15; organic growth excludes acquisitions Strong Loan and Deposit Growth 6 8% Organic Loan Growth 10% Organic Deposit Growth 19% 9% 25% 11% 36% Deposit Mix DDA NOW MM Savings Time Note: Non - maturity Deposits 64% of Total Deposi ts 4% 23% 9% 18% 32% 14% Loan Mix CML Constr
Slide 6: Diversified Loan Growth Strategies
Diversified Loan Growth Strategies $ Millions 22% total loan growth LTM 8% organic total loan growth LTM Strategic growth in relationship based C&I Leveraging deal flow from team recruitment Continued market share growth Specialty lending expertise ABL Equipment financing (Firestone Financial) SBA g
Slide 7: Strong Credit Quality
Strong Credit Quality 8 Disciplined credit standards Continued improvement in overall credit quality 188% ALLL to Non-accrual loans (4Q15) Note: All data as of 12/31/15 0.27% 0.25% 0.65% 0.29% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2011 2012 2013 2014 2015 NCO/Avg Loans NP
Slide 8: Diversified Deposit Growth Strategies
Diversified Deposit Growth Strategies 20% increase in total deposits LTM 10% increase in organic total deposits LTM DDA focus: 13% organic growth in DDA’s LTM Diversifying deposit sources – institutional and brokered 9 Note: Organic growth excludes Hampden acquisition 0 200 400 600 800 1,000 1,200 1
Slide 9: Redefining Customer Engagement
Redefining Customer Engagement Engaging Branches Friendlier pods replace teller lines Automated cash handling – lowers cost and improves customer engagement Community rooms bring in traffic Universal bankers create one stop shop for personal banking and insurance needs Real time interactive customer
Slide 10: Focused on Fee Business Growth
Note: All data FY15 Focused on Fee Business Growth 11 8% fee income growth y/y 31% increase in loan related fees y/y Focus on secondary marketing and revenue diversification $1.4 Billion in Wealth assets under management with portfolio managers and trust advisors spread throughout the footprint Depo
Slide 11: Controlled Expenses
Controlled Expenses Efficiency ratio of 61.3% - with goal of returning sub-60% 23 branches closed, consolidated or sold in last 4 years New branches are smaller and more efficient and promote sales Ongoing Six Sigma initiatives including Mortgage, Finance and Firestone business lines Balancing opera
Slide 12: Talent Recruitment Drives Growth
Talent Recruitment Drives Growth Success with recruited teams driving growth and profitability Key Characteristics Established, well respected talent formerly attached to large banks focused outside our regions Solid relationships within community Strong integration within and across business lines
Slide 13: AMEB Culture – Results Driven
AMEB Culture – Results Driven People, attitude and energy RIGHT core values – Respect, Integrity, Guts, Having Fun and Teamwork Engaging and innovative customer experience Driven to make a difference 14
Slide 14: Acquisition Discipline and Integration Experience
Acquisition Discipline and Integration Experience 15 Rome (NY) Legacy (MA) CBT (CT) Beacon (NY) Hampden (MA) Combined Date closed 4/2011 7/2011 4/2012 10/2012 4/2015 Assets ($millions) 330 970 280 1,025 690 3,305 (Total) Price/TBV (%) 120 110 140 111 133 123 (average) EPS accretion ($) 0.10 0.10 0.0
Slide 15: Focused on Long-term Profitability Goals and Building Shareholder Value
Focused on Long-term Profitability Goals and Building Shareholder Value Grew core EPS 16% (Y/Y) Sequential improvements in core ROE and ROA 15% improvement in Core ROE (Y/Y) 12% improvement in Core ROA (Y/Y) NIM expanding ex-accretion due to improved loan yields and funding mix Efficiency ratio of 6
Slide 16: Why Invest in Us
Why Invest in Us Well positioned footprint in attractive markets Strong core earnings momentum led by diversified revenue drivers and controlled expenses AMEB culture – results driven Acquisition discipline and integration experience Focused on long-term profitability goals and shareholder value Tic
Slide 17: Appendix
Appendix Financial Performance and Goals Non-GAAP Reconciliation Forward-Looking Statements Disclaimer 18
Slide 18: Financial Performance and Goals
Financial Performance and Goals 2011 2012 2013 2014 2015 Stated Financial Goals Core revenue growth 57% 40% 13% 7% 13% Net interest margin 3.61% 3.62% 3.63% 3.26% 3.31% Fee income/revenue 23% 26% 22% 24% 21% 30% Efficiency ratio 63% 59% 61% 63% 61% < 60% Core ROA 0.80% 0.98% 0.88% 0.73% 0.82% 1%+ Co
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: Core results exclude acquisition, divestiture, systems conversion, accounting correction, discontinued operations and restructuring net charges after tax 20 (Dollars in thousands) 2011 2012 2013 2014 2015 Net income $ 17,348 $ 33,188 $ 41,143 $ 33,744 $ 49,518 Non-core
Slide 20: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a disc
Slide 21: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a disc
Slide 22: Life is exciting. Let us help.
Life is exciting. Let us help.
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
Slide 24: 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 Life is exciting. Let us help.
Berkshire Hills Bancorp — Investor Presentation (February 2016) on 6ix