BERKSHIRE HILLS BANCORP

3Q 2023 EARNINGS PRESENTATION

October 20, 2023

F O R WA R D - L O O K I N G S TAT 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

3 Q 2 3 - H I G H L I G H T S O F T H E Q U AR T E R

Rate environment continues to weigh on earnings1

• Net Income of $21.5M (-10% QoQ and -23% YoY)

Financial

• EPS of $0.50 (-9% QoQ and -19% YoY); YTD EPS of $1.67 (+7% YoY)

Performance

• ROTCE of 9.27% including unrealized loss on AFS Securities (-83 bps QoQ and -230 bps YoY)

Balance Sheet

Strength

Maintained strong liquidity and capital position; Asset Quality remains strong

  • End of Period and Average Deposit balances steady QoQ (-1% and +1%, respectively) o Non-Interest Bearing 26% of Total Average Deposits
  • Solid Capital ratios with CET1 ratio at ~12.1%2 and TCE/TA at 7.7%
    1. Repurchased ~$4 million of equity during the quarter
  • Credit trending in-line with expectations; ACL to Loans up 1 bp QoQ to 1.14%

Continued progress on BEST program initiatives

• Optimization initiatives continue - consolidated four branches and other real estate in the quarter; Heightened focus on Expense rationalization as we enter Year 3 of BEST program

Strategic Progress

• Digitization journey progresses further with rolling out of new Mobile App and Online Banking capabilities

for personal and small business customers

• Taking advantage of market disruptions to hire new talent across business lines to bring in new

clients/relationships to Berkshire Bank; Added Mary Anne Callahan to the Board of Directors

3

Notes: 1

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

Numbers and percent changes may not add / equate precisely due to rounding. 2 3Q23 Capital & Ratios are estimated and subject to change.

3 Q 2 0 2 3 - " B E S T " P R O G R E S S V S . TAR G E T S

BEST

3 YEAR TARGETS for JUNE 2024

10-12%100-105 bps $180-200MTop 25%Top 25%

ROTCE2

ROA

PPNR3

ESG

NPS®4

Increase ROTCE

Increase ROA

Increase PPNR

Become top quartile

Become top quartile

by 700-900bps*

by 75-80bps*

by $80-100M*

bank by leading

Net Promoter Score

ESG indexes in

bank in New England

US**

3Q231

9.3

73

136

19

54

FY22

10.1

89

136

17

43

FY21

7.6

70

102

24

FY20

3.1

24

109

39

%

bps

$M

Percentile

NPS

* Improvement over FY2020 baseline, driven by BEST program over 3 years starting Q3'21; ** ESG Index ratings are on an end of period basis: MSCI, ISS-ESG, Sustainalytics, Bloomberg; lower percentile is better;

1All numbers on an operating basis. See appendix for reconciliation of GAAP & Operating financials; 2 Represents ROTCE including unrealized losses on AFS securities. Operating ROTCE excluding unrealized losses on AFS securities was 7.4% in 3Q23; 3 Each quarter operating PPNR annualized ($M); 4 Customer Net Promoter Score (NPS) averaged 54.1% in 3Q23 - according to JD Power NPS data in JPM's June 2023 U.S. Mid- and Small-Cap Banks Money Making Playbook Update the Top Quartile NPS was ~41 based on the syndicated research methodology

4

3 Q 2 0 2 3 O V E RV I E W

G A A P N E T I N C O M E O F $ 1 9 . 5 M , o r $ 0 . 4 5 P E R C O M M O N S H A R E

• Operating Earnings: $21.5M, or $0.50 per common share

(-$2.4M or -$0.05 QoQ; -$6.4M or -$0.12 YoY)

•

Net Interest Margin, FTE: 3.18%

(-6 bps QoQ; -30 bps YoY)

• Net Interest Income, non FTE1: $90.3M

(-$2.4M or -3% QoQ; -$1.8M or -2% YoY)

•

Non-Interest Income2: $17.5M

(+$0.4M or +2% QoQ; +$1.2M or +7% YoY)

•

Non-Interest Expense2: $73.9M

(-$0.1M or flat QoQ; +$3.7M or +5% YoY)

•

Pre-Provision Net Revenue2: $33.9M

(-$1.9M or -5% QoQ; -$4.7M or -12% YoY)

•

Efficiency Ratio: 65.1%

(+148 bps QoQ; +304 bps YoY)

•

Average Loans: $9.0 billion

(+$161M or +2% QoQ; +$1.1 billion or +13% YoY)

• Period End Loans: $9.0 billion

(+$102M or +1% QoQ; +$1.0 billion or +13% YoY)

•

Average Deposits: $9.6 billion

(+$62M or +1% QoQ; -$39M or < -1% YoY)

• Period End Deposits: $10.0 billion

(-$88M of -1% QoQ; -$8M or < -1% YoY)

•

Net Loan Charge Offs to Avg Total Loans (annualized): 0.24%

(-2 bps QoQ; -6 bps YoY)

•

Provision for Credit Losses on Loans: $8.0M

(flat QoQ; +$5.0M YoY)

•

Allowance for Credit Losses to Total Loans: 1.14%

(+1 bps QoQ; -7 bps YoY)

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

5 precisely due to rounding; 1 NII on an FTE basis was $92.3M (-$2.4M or -3% QoQ; +$1.5M or -2% YoY); 2 Numbers and comparisons on an operating basis

L O AN S : AV E R AG E B AL AN C E S

( $ M )

CRE

C&I

Resi

Consumer

QoQ

+161

(+2%)

8,791

102

130

8,952

524

-60

-11

513

2,488

2,618

1,496

1,436

4,385

4,283

2Q23

7,888

587

1,926

CRE

C&I

Resi

Consumer

3Q23

+1,064

(+13%)

692

8,952

459

513

-74

-13

2,618

YoY

1,436

1,449

4,385

3,926

3Q22

CRE

C&I

Resi

Consumer

3Q23

6 Note: 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 : AV E R AG E B AL AN C E S

( $ M )

Non-Interest Bearing NOW Money Market Savings Time

+62

(+1%)

9,568

142

5

153

9,630

-41

-197

2,287

2,440

1,077

1,082

QoQ

2,555

2,697

1,055

858

2,594

2,553

2Q23

Non-Interest

NOW

Money Market

Savings

Time

3Q23

Bearing

-39

(0%)

9,669

912

9,630

1,528

-360

-504

-40

-47

2,440

1,129

1,082

2,737

YoY

2,697

1,362

858

2,913

2,553

3Q22

Non-Interest

NOW

Money Market

Savings

Time

3Q23

Bearing

7 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

-2,426

5,926

(-3%)

3,021

92,759

-8,042

-3,331

QoQ

( $ 0 0 0 S )

90,334

2Q23

92,084

YoY

Loans

Deposits

Borrowings

Investments

3Q23

-1,751

(-2%)

42,496

1,853

90,334

-35,844

-10,256

3Q22

Loans

Deposits

Borrowings

Investments

3Q23

8 Note: NII on an FTE basis was $92.3M (-$2.4M or -3% QoQ; +$1.5M or -2% YoY)

O P E R AT I N G N O N - I N T E R E S T I N C O M E

( $ 0 0 0 S )

+371

(+2%)

17,094

221

924

17,465

-310

-362

-102

QoQ

2Q23

Deposit

Loan Fees

Gain on SBA

Wealth

Other

3Q23

Related Fees

and Other

Loan Sales

Management Fees

+1,214

1,587

(+7%)

128

17,465

415

-3

16,251

-913

YoY

3Q22

Deposit

Loan Fees

Gain on SBA

Wealth

Other

3Q23

Related Fees

and Other

Loan Sales

Management Fees

9 Note: See Appendix for discussion and reconciliation of non-GAAP financial measures. Starting March 31, 2023, fair value adjustments on securities are included in operating income. 3Q23 fair value adjustment of -$467K is included in "Other" above.

O P E R AT I N G N O N - I N T E R E S T E X P E N S E

( $ 0 0 0 S )

-121

(0%)

74,027

195

151

73,906

-154

-103

-210

QoQ

2Q23

Compensation

Occupancy and

Technology and

Professional

Other

3Q23

and Benefits

Equipment

Communications

Services

+3,702

(+5%)

1,897

1,820

73,906

70,204

733

114

-862

YoY

3Q22

Compensation

Occupancy and

Technology and

Professional

Other

3Q23

and Benefits

Equipment

Communications

Services

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 20 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2023 11:46:03 UTC.