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

1Q 2024 Earnings Presentation

AP R I L 1 8 , 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

1 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

Improved operating earnings QoQ1

  • Operating Net Income of $20.9M (+4% QoQ and -24% YoY)
  • Operating EPS of $0.49 (+4% QoQ and -22% YoY)
  • GAAP EPS of -$0.47 (Securities Sale after-tax loss $38.3M or -$0.89 /Non-Operating Expenses of $2.8M or -$0.07)
  • Non-InterestExpenses of $72.4M (-4% QoQ and +1% YoY)
  • ROTCE of 8.73% (-17 bps QoQ and -323 bps YoY)

Balance Sheet

Strength

Maintained strong liquidity, asset quality, and capital

  • Average Deposits2< +1% QoQ and +3% YoY
    1. Non-InterestBearing 24% of Total Average Deposits
  • Credit trends remain solid with NCO/Avg Loans of 18 bps and ACL to Loans up 1 bp QoQ to 1.18%
  • Maintained strong Capital ratios with CET1 ratio at ~11.6%3 and TCE/TA at 8.2%
    1. Repurchased ~$4 million of stock during the quarter

Continued progress on strategic initiatives

•

Announced sale of ten branches in New York which enhances the efficiency and profitability of our branch

network and strengthens focus in core New York markets

Strategic Progress

•

Successfully executed a securities sale in the first quarter to partially offset deposits to be sold in branch

transaction

• Recognized by Newsweek as one of the Most Trustworthy Companies in America; ranked #10 in the country for banks

Notes: 1 Numbers and comparisons are on an operating basis. See Appendix for discussion and reconciliation of non-GAAP financial measures.

3 Numbers and percent changes may not add / equate precisely due to rounding. 2 Includes New York Deposits Held for Sale. 3 1Q24 Capital & Ratios are estimated and subject to change.

S a l e o f S e l e c t U p s t a t e a n d E a s t e r n N Y B r a n c h e s S u m m a r y

Sale of Ten Branches in New York Enhances Efficiency and Profitability of BHLB's

Branch Network and Strengthens Focus in Core New York Markets

B H L B N e w Y o r k B r a n c h e s P r o F o r m a

S u m m a r y

• Announced sale includes ~$485M in deposits and ~$58M of related residential mortgage and consumer loans plus all branch premises and equipment

o Estimated pre-tax gain of ~$19.3MM

•

Combined branch and securities sale is

neutral to full-year 2024 earnings outlook

o Transaction will not materially increase

borrowings

•

Annualized revenue loss of ~$4.3 million

and expense saves of ~$6.4 million

•

Transaction tightens geographic footprint

Ten branches to be sold per March 4th announcement - eight offices in Albany, Schenectady,

and lowers overall expense run-rate

Saratoga, and Columbia counties; one office in Whitehall; one office in East Syracuse

86 BHLB branches remaining following transaction completion (targeting mid-third quarter 2024

subject to regulatory approvals and associated system conversions)

4 Source: S&P Global Market Intelligence

S e c u r i t i e s P o r t f o l i o S a l e

T R A N S A C T I O N R A T I O N A L E

Partially offset deposits to be sold in

New York Branch Transaction

$361.8 million Market Value1

S E C U R I T I E S S O L D

Weighted Avg. Book Yield 1.98%

R E A L I Z E D L O S S

$49.9 million pre-tax in 1Q24

$38.3 million post-tax / -$0.89per share

P O R T F O L I O S I Z E

Post trade Portfolio is ~10% of Total Assets

5 Note: 1 Book value equal to $411.7M

1 Q 2 0 2 4 O v e r v i e w

G A A P N E T I N C O M E O F - $ 2 0 . 2 M , o r - $ 0 . 4 7 P E R C O M M O N S H A R E

• Operating Earnings: $20.9M, or $0.49 per common share

(+$0.7M or +$0.02 QoQ; -$6.7M or -$0.14 YoY)

•

Net Interest Margin, FTE: 3.15%

(+4 bps QoQ; -43 bps YoY)

• Net Interest Income, non FTE1: $88.1M

(-$0.3M or < -1% QoQ; -$9.4M or -10% YoY)

• Operating Non-Interest Income: $17.3M

(+$0.6M or +4% QoQ; +$0.7M or +4% YoY)

•

Operating Non-Interest Expense: $72.4M

(-$2.9M or -4% QoQ; +$0.4M or +1% YoY)

•

Operating Pre-Provision Net Revenue: $33.0M

(+$3.3M or +11% QoQ; -$9.1M or -22% YoY)

•

Efficiency Ratio: 66.26%

(-151 bps QoQ; +675 bps YoY)

•

Average Loans (incl. NY Branch Loans HFS): $9.1 billion

(+$69M or +0.8% QoQ; +$544M or +6% YoY)

•

Period End Loans (incl. NY Branch Loans HFS): $9.1 billion

(+$104M or +1% QoQ; +$462M or +5% YoY)

•

Average Deposits (incl. NY Branch Deposits HFS): $10.0 billion

(+$42M or +0.4% QoQ; +$302M or +3% YoY)

• Period End Deposits (incl. NY Branch Deposits HFS): $10.4 billion

(-$265M of -2% QoQ; +$300M or +3% YoY)

•

Net Loan Charge Offs to Avg Total Loans (annualized): 0.18%

(-2 bps QoQ; -14 bps YoY)

•

Provision for Credit Losses on Loans: $6.0M

(-$1.0M QoQ; -$3.0M YoY)

•

Allowance for Credit Losses to Total Loans: 1.18%

(+1 bps QoQ; +5 bps YoY)

6

Notes: See Appendix for discussion and reconciliation of non-GAAP financial measures. Numbers and percent changes may not add / equate

precisely due to rounding; 1 NII on an FTE basis was $90.1M (-$0.3M or < -1% QoQ; -$9.3M or -9% YoY)

L o a n s : A v e r a g e B a l a n c e s

( $ M )

CRE

C&I

Resi

Consumer

NY Branch Loans HFS

+69

(+0.8%)

84

12

9,059

8,990

18

18

498

-12

-33

465

2,656

2,668

QoQ

1,367

1,355

4,469

4,553

4Q23

CRE

C&I

Resi

Consumer

NY Branch

1Q24

Loans HFS

+544

(+6.4%)

385

9,059

8,515

387

18

18

465

-172

-74

539

2,283

2,668

1,527

1,355

YoY

4,166

4,553

1Q23

CRE

C&I

Resi

Consumer

NY Branch

1Q24

Loans HFS

7 Notes: Balances include Non-Strategic loans in run-off. Please see Appendix for more information on these loans. Numbers and percent changes may not add / equate precisely due to rounding.

D e p o s i t s : A v e r a g e B a l a n c e s

( $ M )

Non-Interest Bearing

Money Market

Time

NOW

Savings

NY Branch Deposits HFS

+42

(+0.4%)

9,936

88

3

149

9,978

-140

-34

-24

149

2,558

2,561

QoQ

1,062

1,038

2,995

3,083

833

799

2,488

2,348

4Q23

Non-Interest

NOW

Money Market

Savings

Time

NY Branch

1Q24

Bearing

Deposits HFS

+302

(+3.1%)

9,676

753

149

9,978

424

149

1,808

-358

-9

2,561

-657

1,047

1,038

2,659

YoY

3,083

1,456

799

2,706

2,348

1Q23

Non-Interest

NOW

Money Market

Savings

Time

NY Branch

1Q24

Bearing

Deposits HFS

8 Note: Numbers and percent changes may not add / equate precisely due to rounding.

N e t I n t e r e s t I n c o m e

( $ 0 0 0 S )

-281

1,216

(0%)

88,421

2,256

254

88,140

-4,006

QoQ

4Q23

Loans

Deposits

Borrowings

Investments

1Q24

-9,393

19,070

(-10%)

97,533

1,698

620

88,140

-30,780

YoY

1Q23

Loans

Deposits

Borrowings

Investments

1Q24

9

Note: NII on an FTE basis was $90.1M (-$0.3M or < -1% QoQ; -$9.3M or -9% YoY)

O p e r a t i n g N o n - I n t e r e s t I n c o m e

( $ 0 0 0 S )

+636

(+4%)

605

490

1,283

17,310

16,674

-176

-683

-883

QoQ

4Q23

Deposit

Loan Related

Gain on

Wealth

FV Adj. on

Other

1Q24

Related Fees

Fees

SBA Loans

Management

Securities

Fees

+704

(+4%)

16,606

194

1,515

17,310

145

-6

-795

-349

YoY

1Q23

Deposit

Loan Related

Gain on

Wealth

FV Adj. on

Other

1Q24

Related Fees

Fees

SBA Loans

Management

Securities

Fees

10 Note: See Appendix for discussion and reconciliation of non-GAAP financial measures.

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Berkshire Hills Bancorp Inc. published this content on 18 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2024 11:51:10 UTC.