BHLB
B e r k s h i r e H i l l s B a n c o r p
N Y S E : B H L B
Investor Presentation
https://ir.berkshirebank.com
N O V E M B E R 5 , 2 0 2 4
F o r w a r d - L o o k i n g S t a t e m e n t s
This document contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our outlook for earnings, net interest margin, fees, expenses, tax rates, capital and liquidity levels and other matters regarding or affecting Berkshire and its future business and operations.. You can identify these statements from the use of the words "may," "will," "should," "could," "would," "outlook," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. There are many factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a discussion of such factors, please see Berkshire's most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission and available on the SEC's website at www.sec.gov.
Accordingly, you should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this document. Berkshire does not undertake any obligation to update forward-looking statements.
NON-GAAP FINANCIAL MEASURES
This presentation contains both financial measures based on accounting principles generally accepted in the United States ("GAAP") and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company's results of operations or financial position. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are included in this presentation and the Company's earnings release available at its investor relations website at ir.berkshirebank.com. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. For additional information, please see reconciliation to GAAP financial measures presented in the Company's News Release.
2
B e r k s h i r e A t a G l a n c e
Branches across Massachusetts, New York, Connecticut, Vermont, and Rhode Island
Founded: 1846
Total Assets: $11.6Bn1
Market Cap: ~$1.15Bn2
HQ: Boston, MA
Workforce: ~1,280
BHLB branch network following NY branch sale, which was completed in 3Q24
Lines of
• Commercial and Private Banking; Retail Banking; Consumer Lending; SBA Lending; Wealth
Business
Management
Retail
• 83 Branches as of 3Q24; 101 ATMs
Footprint
Berkshire One
• Launched a new digital-first deposits product solution with differentiated value proposition
Source: S&P Global Market Intelligence
3 Notes: 1 Financial data as of 9/30/24; 2 Market data as of 10/31/24
3 Q 2 0 2 4 - H i g h l i g h t s o f t h e Q u a r t e r
Financial
Performance
Robust improvement in operating earnings1
Balance Sheet
Strength
Strong asset quality and capital coupled with solid liquidity
Continued progress on strategic initiatives
Strategic Progress
sheet
Notes: 1 Numbers and comparisons are on an operating basis. See Appendix for discussion and reconciliation of non-GAAP financial measures.
4 Numbers and percent changes may not add / equate precisely due to rounding. 2 3Q24 Capital & Ratios are estimated and subject to change.
K e y I n v e s t m e n t H i g h l i g h t s
1
2
3
4
5
6
7
5 Note: 1 Price as of 10/31/24
B H L B S t o c k Tr a d i n g a t T B V P S e x . A O C I
T a n g i b l e B o o k V a l u e P e r S h a r e E x c l u d i n g A O C I ( $ )
26.2
26.6
Stock Price1: $27.23
24.5
24.5
21.2
20.4
P/TBV: 1.11x
P/TBV ex. AOCI: 1.02x
3Q22
3Q23
3Q24
Reported TBVPS
Adj. TBVPS ex. AOCI
6 Note: 1 Price as of 10/31/24
O p e r a t i n g E x p e n s e G r o w t h O u t p e r f o r m a n c e R e l a t i v e t o P e e r s
BHLB has managed Operating Expenses better than peers in last three years
Analysts expect BHLB expenses to be -2% in 2024 vs. peers +4%
Y o Y O p e r a t i n g E x p e n s e G r o w t h ( % )
10%
8%
7%
6%
6%
5%
4%
4%
4%
2%
0%
0%
-2%
-1%
-2%
-4%
'21/'20
'22/'21
'23/'22
'24E/'23
BHLB
Peer Median
7 Notes: Peer data is sourced from S&P Global Market Intelligence; Peers include BRKL, CBU, CNOB, DCOM, EBC, FCF, FFIC, HONE, INDB, NBTB, NWBI, OCFC, PRK, PFS, STBA, SASR, TMP, UVSP, WASH
Ta k i n g A d v a n t a g e o f M a r k e t D i s r u p t i o n s
Yrs. of
Name
Position
Department
Experience
Previous Experience
Torrance Childs
Chief Commercial Deposit
Private Banking
+30
• Silicon Valley Bank, Bank of America
Officer
Michelle Samuel
SVP, Private Banking
Private Banking
+20
• First Republic Bank, Silicon Valley Bank
Heather Rielly
SVP, Private Banking
Private Banking
+25
• Hingham Savings Bank, Silicon Valley Bank
Jason Carosi
SVP, ABL Relationship Manager
ABL - Eastern MA
+20
• Customers Bank, Webster Bank
Donald Matthews
FVP, SBA Lending
44 Business Capital
+15
•
Regions Bank, Cadence Bank
Robert Nicols
SVP, Business Banking Team
Business Banking
+30
• Pioneer Bank, KeyBank, First Niagara Bank
Leader
Shane Rauh
VP, Business Banking Officer
Business Banking
+20
• Pioneer Bank, Broadview FCU
Keara Piscitelli
Managing Director-Cash Mgmt &
Commercial/Cash Mgmt
+25
• M&T Bank, People's United Bank
Treasury Serv
Hind Benyoussef
VP, Cash Management Sales
Commercial/Cash Mgmt
+10
•
Webster Bank, Citizens Bank
Officer CT/RI
Mildred Deane
SVP, Commercial Relationship
CRE - Capital / Albany
+35
•
Citizens Bank
Mgr. - CRE
Joseph Lotano
VP, Small Business Banking
MyBanker - Berkshire
+25
• M&T Bank, NBT Bank, TD Bank
Officer
8
G r a n u l a r a n d D i v e r s i f i e d B a l a n c e S h e e t
Loans1
Resi. + Consumer % Total
~34%
Home Equity Consumer
2%
Constr.
7%
1%
Multifamily
Deposits2
NOW 8%
7%
Resi 30%
8% CRE Owner Occ.
$9.2Bn
29%
15%
CRE Non-Owner Occ.
Non-IB
24%
$9.6Bn
26%
CD / Time
32% MMA
C&I
Commercial % Total
~66%
Loan Yields: 6.11%1
10% Savings
Deposit Costs: 2.42%2
End of Period Loan to Deposit Ratio was ~96% in 3Q243
9 Notes: 1 3Q24 EOP balances per Form 10-Q draft. Loan yield as of 3Q24. 2 3Q24 EOP balances per Form 10-Q draft. Deposit cost as of 3Q24.
R u n - O ff P o r t f o l i o s
EOP ($M)
% 3Q24
3Q24
3Q24
2Q24
1Q24
3Q24
2Q24
1Q24
Yield
NCOs
NCOs
NCOs
NPLs
NPLs
NPLs
Portfolios
3Q24
Total
2Q24
1Q24
4Q23
3Q23
Loans
(%)
($M)
($M)
($M)
($M)
($M)
($M)
Upstart1
10
0.1%
67
78
90
103
~10%
3.8
1.3
2.8
0.01
0.05
0.06
Firestone
48
0.5%
57
66
77
87
~7%
-0.01
0.1
0.8
1.48
1.82
2.03
Upstart Related Loan Sale Details1:
Total
58
0.6%
124
144
167
190
➢ Sold ~$47M of Upstart-related consumer loans in
October at price of 96% of book value
$ Change
(66)
(20)
(23)
(23)
(28)
➢ Sale resulted in a ~$1.9M net charge-off recognized in
3Q24
% Change
-53%
-14%
-14%
-12%
-13%
➢ These loans were recorded as Held for Sale on the
➢ Run-off portfolio now represents ~60 bps of total loans as of 3Q24
balance sheet as of 3Q24
➢ Remaining portfolio of ~$10M (or ~11 bps of 3Q24 end of period total loans)
• Weighted Avg. Credit Score of remaining loans ~682
10 Note: Upstart and Firestone designated as Run-Off Portfolios beginning in 2Q22
Disclaimer
Berkshire Hills Bancorp Inc. published this content on November 05, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 05, 2024 at 22:30:45.716.