Berkshire Hills Bancorp : BHLB Investor Presentation - November 2024

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.