Berkshire Hills Bancorp : Investor Presentation - November 2023

B E R K S H I R E H I L L S B AN C O R P ( B H L B ) N O V E M B E R 2 0 2 3

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.

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B E R K S H I R E AT A G L AN C E

Branches across Connecticut, Massachusetts, New York, Rhode Island, and Vermont

Founded: 1846

Total Assets: $12.1Bn1

Market Cap: $848M2

HQ: Boston, MA

Workforce: ~1,300

Lines of	• Commercial and Private Banking, including 44BC/SBA Lending; Retail Banking; Consumer
Business	Lending & Payments; Wealth Management
Retail	• 96 Branches; 115 ATMs; 28 MyTeller ITMs
Footprint
DigiTouchSM	• User-friendly Digital Experience, while retaining best-in-class personal service and human
Service	touch of a Community bank

3 Source: S&P Global Market Intelligence

Notes: 1 Financial data as of 9/30/23; 2 Market data as of 10/30/23

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

4	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

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B H L B H AS M AD E S I G N I F I C AN T P R O G R E S S I N I M P R O V I N G I T S F I N AN C I A L P E R F O R M AN C E R E L AT I V E TO P E E R S

O p e r a t i n g R O T C E ( % )

30.0

75%

				15.1	15.3
15.0	10.4				12.2	50%
						10.1	10.4
				7.6
					31%
0.0	3.1			-5.2	-1.8	25%
	-7.3	-7.5
-15.0	0%	1%	1%		0%
			FY'20		FY'21	FY'22	YTD'23
			BHLB		Peer Median	BHLB vs Peers	BHLB % Rank

BHLB vs. Peer ROTCE has narrowed from

~730 bps in 2020 to ~180 bps YTD'23

O p e r a t i n g R O A A ( % )

1.50				1.32	1.30		75%
	0.90				1.00
1.00
						0.89	0.82	50%
						47%
0.50				0.70
	0.24				36%
0.00	22%	-0.41	-0.18	25%
-0.50	-0.66	-0.62
-1.00	0%					0%
			FY'20		FY'21	FY'22	YTD'23
			BHLB		Peer Median	BHLB vs Peers	BHLB % Rank

BHLB vs. Peer ROAA has narrowed from ~66 bps in 2020 to ~18 bps YTD'23

6 Notes: Peer data is sourced from S&P Global Market Intelligence; Peers include BRKL, CBU, CNOB, CUBI, DCOM, EGBN, EBC, FCF, FFIC, INDB, NBTB, OCFC, PFS, STBA, SASR, TMP and WSFS; BHLB ROTCE above includes losses on AFS Securities

N O TAB L E " B E S T " AC H I E V E M E N T S

• 26 branch consolidations

with annual expense saves redeployed strategically

• Insurance business divestment ~$37MM+ pre- tax gain
• Real Estate optimization

and strategic sourcing / procurement

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• Launched new Mobile App and Online Banking capabilities for personal and small business customers in partnership with Narmi
• Building API middleware infrastructure through Mulesoft for ease of connectivity for existing and new applications
• Developing data warehouse through Snowflake

• Market disruption enables hiring deposit-oriented bankers, Relationship Managers, Wealth Managers, and MyBankers
• Robust capital level supports loan growth and returns to shareholders
• Achieved top-quartile ESG score

K E Y I N V E S T M E N T H I G H L I G H T S

1

• Strong blend of New and Seasoned Berkshire Executives and Board Directors; Market disruptions (M&A activities) creating solid talent pipeline for sales and service roles

2

• Stable Deposit Balances with Moderating NIM Compression

3

• Committed to Strong Expense Management via numerous avenues (e.g., Real Estate Optimization, Procurement, etc.)

4

• Robust Capital Position to Support Growth Initiatives and Return Capital to Shareholders; Favorable Adjusted Capital Ratios Inclusive of Fair Value Marks Relative to Competition

5

• Diversified Commercial Real Estate Portfolio by Collateral Type and Geography; Office Portfolio Performing Well

6

• Conservative Credit Culture Resulting in Above Industry Credit Quality

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B L E N D O F N E W AN D S E AS O N E D E X E C U T I V E S

Nitin Mhatre

Nitin Mhatre oversees the vision and

Sean A. Gray

Sean Gray is the Chief Operating Officer,

President,

strategic direction of the Company as

Chief Operating

responsible

for

operations,

technology,

Chief Executive Officer

President and Chief Executive Officer. Prior to

~3

Officer

strategy, 44 Business Capital (SBA lending),

~18

joining Berkshire in January 2021, spent 25

and wealth management. Prior to joining

years in banking at Webster Bank as Head of

Berkshire in 2006, spent 8 years in banking

Community Banking and at Citigroup as

at Bank of America as Consumer Market

Managing Director.

Manager.

David Rosato

David

Rosato

joined

the

Company

in

Gregory D.

Gregory

Lindenmuth

is

responsible for

February 2023 as SEVP, CFO. He spent the

enterprise

risk

management

and credit

Chief Financial Officer

Lindenmuth

last 15 years with People's United Financial,

< 1

administration as well

as loan

review,

Chief Risk Officer

~8

Inc., eight as CFO.

Prior to People's he was

information security, and credit risk analytics.

the Treasurer of Webster Financial Corp.

He

Prior to joining Berkshire in 2016, spent 24

currently serves as a NASDAQ Exchange

years in banking at the FDIC as Senior Risk

Board member.

Examiner.

James "Jim"

Jim Brown joined the Company in January

Wm. Gordon

Gordon Prescott is the General Counsel &

2023

as

SEVP,

Commercial

Banking.

Prescott

Corporate

Secretary.

Prior

to

joining

Brown

Previously, he was at Boston Private Bank &

General Counsel and

Berkshire in 2008, spent 20 years in the legal

Commercial Banking

< 1

~16

Trust Company in multiple senior executive

Corporate Secretary

profession in private practice and as in-

roles including Co-President, EVP, Head of

house corporate counsel for various

Commercial

Banking

and

Credit

organizations.

Administration, and Chief Lending Officer.

Lucia Bellomia

Lucia Bellomia is responsible for retail

Ellen Steinfeld

Ellen Steinfeld responsible for consumer

banking,

including

the

branch

network,

lending and

payments,

including

mortgage

Head of Retail Banking

MyBanker

program, call

center, branch

Head of Consumer

banking,

home

equity,

and

consumer

~2

Lending & Payments

~2

operations, sales and service delivery. Prior to

installment lending. Prior to joining Berkshire

joining Berkshire in September 2021, spent

in September 2021, spent more than 30

23 years in banking at Bank of America as

years in banking at Innovative Lending

SVP Community Banking and at PNC,

Strategic Solutions as President and at TIAA-

Santander, and other institutions.

CREF.

Jacqueline

Jacqueline Courtwright leads all aspects of

Jason T. White

Jason White is

responsible

for

information

human

resource

strategy

and

oversees

technology and digital transformation. Prior

Courtwright

Chief Information

cultural

development

for

Berkshire's

~5

Chief Human

~12

Officer

to joining Berkshire in 2019, spent 25 years

Resources and Culture

workforce. Prior to joining Berkshire in 2012,

in banking at Savings Institute Bank & Trust

Officer

spent 20 years in banking at Citizens Bank as

as CIO prior to the acquisition.

HR Business Partner and District HR

Manager at Key Bank.

Andrew R.

Plumridge

Chief Internal Audit

Officer

9 BHLB Tenure (Yrs.)

Andrew Plumridge joined the Company in July 2023 as EVP, Chief Internal Audit Officer.

He previously served as SVP and General < 1 Auditor of Boston Private Financial Holdings,

Inc. Prior to joining Boston Private, he held senior audit and consulting positions with State Street Corporation and PwC

Ashlee Flores

Chief Compliance Officer

Ashlee Flores is the Chief Compliance Officer. Prior to this role, she served as SVP,

Compliance, where she where she oversaw ~8 Berkshire Bank's compliance program. Prior

to joining Berkshire, she was a compliance officer at Hampden Bank.

B O L S T E R I N G S T R O N G B O AR D O F D I R E C TO R S I N 2 0 2 3

Eric S. Rosengren

Mary Anne Callahan

• Currently, CEO of Rosengren Consulting and a Visiting Scholar at the MIT Golub Center for Finance & Policy; previously served as the President and CEO of the Federal Reserve Bank of Boston from 2007 until his retirement in 2021
• As a Fed President, participant and voting member of the Federal Open Market Committee; he also championed projects to help revitalize smaller city economies and enhance diversity, equity and inclusion within the Fed
• He joined the Boston Fed in 1985 and held various roles in the Bank's Research and Supervision, Regulation, and Credit Departments
• He has published over 100 articles and papers on economics and finance, and is often cited in leading academic journals and featured in major media outlets on topics including macroeconomics, monetary policy, international banking, bank supervision and risk management

• Ms. Callahan brings more than 35 years of investment banking expertise most recently as a Managing Director in the Financial Services Group at Piper Sandler Companies where her responsibilities included advising bank management and boards of directors in the Northeast region on a broad range of strategic and financial topics
• Previously, she was a principal in Sandler O'Neill & Partners, L.P.'s investment banking group advising banks, thrifts and specialty finance companies and worked in the financial institutions group at Merrill Lynch and CIBC World Markets
• She holds a Master of Business Administration from the Wharton School of the University of Pennsylvania and a Bachelor of Arts from Wellesley College
• Upon her election, she was determined to be an independent director and appointed to the Compensation Committee and the Risk Management, Capital and Compliance Committee of the Board

Karyn Polito

• Brings broad expertise in both the public and private sector including as Lieutenant Governor of the Commonwealth of Massachusetts and as Principal of Polito Development Corporation
• Advocate for women's empowerment and a champion for renewable energy, climate adaptation, workforce development, housing, and the innovation economy
• Helped increase aid to local communities and spearheaded efforts to expand offshore wind and educational opportunities to careers in science, technology, engineering and math for women and students

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