Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Merger or Acquisition (June 2012)
15 slides from Beacon Financial's merger presentation, Jun 4, 2012
Slide 1: Acquisition of Beacon Federal Bancorp, Inc.
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Acquisition of Beacon Federal Bancorp, Inc. May 31, 2012
Slide 2: Forward Looking Statements
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Forward Looking Statements This document contains certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the proposed merger of Berkshire and Beacon. Th
Slide 3: Additional Information for Shareholders
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Additional Information for Shareholders 2 In connection with the proposed merger, Berkshire will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S - 4 that will include a Pr
Slide 4: Merger Benefits
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Merger Benefits 3 • Financial Pro Forma ◦ 10 % core EPS accretion in year one ◦ 15% IRR ◦ 4 Year approximate payback of TBV dilution; 6 month payback from total pro forma core earnings • Strategic ◦ Enhances positio
Slide 5: Overview of Beacon Federal Bancorp
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Overview of Beacon Federal Bancorp 4 • Beacon, founded in 1953, is a $1.0 billion bank headquartered in East Syracuse, New York. • Beacon operates 7 branches, with a primary focus on local consumer banking, and a pr
Slide 6: Contiguous Expansion in New York
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Contiguous Expansion in New York 5 • Creates third largest regional bank presence in Syracuse/Rome/Utica • First e astern Massachusetts branch, adding to new lending offices Note: Beacon branches in red, Berkshire b
Slide 7: Central New York Market Opportunity
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Central New York Market Opportunity 6 • Attractive demographics ◦ Syracuse MSA population : 700,000 ◦ Rome/Utica MSA population : 300,000 ◦ Projected five year household income growth of 18 - 19% exceeds U.S. averag
Slide 8: Merger Summary
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Merger Summary 7 • Berkshire to acquire Beacon in transaction valued at approximately $132 million or $20.35 per Beacon share • Consideration will be 50% Berkshire stock and 50% cash, subject to election and prorati
Slide 9: Comparative Transaction Multiples
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Comparative Transaction Multiples 8 Beacon Regional Transaction Transactions Price/Tangible Book Value 111% 162% Core Deposit Premium 3.4% 8.6% Price/LTM Earnings Per Share 37X 24X Note: Regional transactions are me
Slide 10: Transaction Assumptions
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Transaction Assumptions 9 • Deal costs are $14 million pre - tax; $10 million after - tax. Model assumes they are an adjustment to equity at close. Most are expected to be recorded as non - core expenses • Cash cons
Slide 11: Pro Forma Financial Benefits
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Pro Forma Financial Benefits 10 • $0.22 (10%) a ccretive to core EPS in 2013. $0.30 per share tangible capital accretion in 2013 including $0.08 in CDI amortization • 15% internal rate of return • 4 year earnback of
Slide 12: Exhibit A - Pro Forma Combined Balance Sheet
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Exhibit A - Pro Forma Combined Balance Sheet 11 Purchase Accounting Tennessee Pro Forma in millions except per share data Berkshire Beacon Marks Financing Divestiture Combined Cash and Liquidity 47$ 39$ -$ (9)$ -$ 7
Slide 13: Exhibit B - Pro Forma Combined Income Statement
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Exhibit B - Pro Forma Combined Income Statement 12 Purchase Accounting Tennessee Pro Forma in millions except per share data Berkshire Beacon Marks Financing Divestiture Combined Net Interest Income 146.2$ 34.0$ 6.5
Slide 14: Exhibit C - Beacon Financial Summary
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Exhibit C - Beacon Financial Summary 13 (source: SNL) 2008 FY 2009 FY 2010 FY 2011 FY 2012 FQ1 YTD Period Ended 12/31/2008 12/31/2009 12/31/2010 12/31/2011 3/31/2012 Balance Sheet ($000) Total Assets 1,021,343 1,066
Slide 15: Exhibit D - Beacon Loan and Deposit Composition
BERKSHIRE HILLS BANCORP - BHLB www.berkshirebank.com America’s Most Exciting Bank sm Exhibit D - Beacon Loan and Deposit Composition 14 Loan Composition Deposit Composition Source: Company filings as of March 31, 2012
Berkshire Hills Bancorp — Merger or Acquisition (June 2012) on 6ix