Berkshire Hills Bancorp : Earnings Presentation - January 2023

BERKSHIRE HILLS BANCORP

4Q 2022 EARNINGS PRESENTATION

January 26, 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

4 Q 2 2 AN D F Y 2 0 2 2 H I G H L I G H T S

	4Q22	FY2022
	Strong improvement across all key financial metrics1
	• Adj Revenue of $118m (+8% QoQ)	• Adj Revenue of $416m (+9% YoY)
Financial	• Adj EPS of $0.64 (+2% QoQ)	• Adj EPS of $2.19 (+30% YoY)
Performance
	• Adj ROTCE of 9.83% (-9 bps QoQ)	• Adj ROTCE of 8.94% (+120 bps YoY)
	• Efficiency Ratio of 58% (-376 bps QoQ)	• Efficiency Ratio of 64% (-565 bps YoY)
	Robust Capital position supporting Loan growth and Capital redeployment to shareholders
	• QoQ Avg. Loan Growth of +2%	• YoY Avg. Loan Growth of +5%
	• Maintained strong liquidity position;
Balance
• CET12 and TCE of 12.4% and 8.0%, respectively	Loans/Deposit ratio at ~81% in 4Q22
Sheet
Strength	• 50% Dividend increase ($0.18 per share) in 4Q22	• Returned ~$150m in capital (Dividends plus
	Repurchases) in FY22 (~60% higher than FY21)
	• New $50m Stock Repurchase program for 2023	• Ended year with strong capital position and growth in
	adjusted TBVPS ex-AOCI QoQ and YoY
	Solid Progress on BEST program initiatives towards high performance
	• Moved to 17th percentile for ESG ranking in 4Q22	• ESG - Issued $100 million Sustainability Bond;
	• Completed planned foundational components of	Launched new Wealth Management programs
	including SRI and CWWW3
BEST	Technology roadmap to accelerate "DigiTouch"
strategy	• Continued Balance Sheet de-risking
Strategy
Progress	• Expanded relationship with Narmi for enhanced	• Completed Branch optimization (consolidated 5
	Consumer and small business Deposit Mobile	branches in 2022; overall network reduced by~25%
	Banking experience	from 2019 peak)
	• Key executive management hires completed (CFO,	• Reached highest level of Employee Engagement
	Head of Commercial Banking, Chief Credit Officer)	(+5ppt vs 2021) measured through Mercer survey

Notes: 1 Numbers and comparisons are on Adjusted 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 4Q22 and FY22 Capital & Ratios are estimated and subject to change. 3 Socially Responsible Investing ("SRI") and Center for Women, Wellness, and Wealth ("CWWW")

4 Q 2 0 2 2 - " B E S T " P R O G R E S S V S . G O AL

BEST

3 YEAR TARGET for JUNE 2024

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

ROTCE	ROA	PPNR2	ESG	NPS3
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**

4Q221	9.8	100	180	17
FY22	8.9	89	136	17	N.A.
FY21	7.7	70	102	24
FY20	3.2	24	109	39
	%	bps	$M	Percentile	Percentile

• 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; 1All numbers on an adjusted basis. See appendix for reconciliation of GAAP & Adjusted financials. 2 Each quarter adjusted PPNR annualized ($ million); 3 Our NPS score from JD Power was 47 in 2Q22 vs. 42 in 1Q22. JD Power is building a sample size to rank our NPS vs. peers which will be available in 1Q23.

4

F Y 2 0 2 2 F I N AN C I AL H I G H L I G H T S - I N C O M E S TAT E M E N T

GAAP Basis ($M)	FY20	FY21	FY22	'21 vs. '22
Net interest income, non FTE	$316.8	$291.2	$344.6	18%
Non-interest income2	66.3	143.2	68.9	-52%
Revenue	383.1	434.4	413.5	-5%
Non-interest expense	840.2	285.9	288.7	1%
After-tax income	(513.2)	118.7	92.5	-22%
Diluted EPS	(10.60)	2.39	2.02	-15%
ROTCE	(48.60%)	10.80%	8.26%
NIM	2.72%	2.60%	3.26%

H I G H L I G H T S

• Differentiated, responsible, and

profitable growth Year-over-Year

o NII increased by $53.4m (+18%

YoY), with reported NIM growth

of 66 bps over the same time

period

Adjusted Basis ($M)1

Net interest income Non-interestincome2 Revenue

Provision for credit losses Non-interest expense After-taxincome

EPS

Efficiency Ratio

ROTCE

ROA

PPNR

Avg. Diluted Shares (000s)

FY20	FY21		FY22	'21 vs. '22
$316.8	$291.2	$344.6	18%
72.6	91.1	71.0	-22%
$389.4	$382.3	$415.6	9%
75.9	(0.5)	11.0	nm
280.6	280.1	279.8	0%
30.4	84.0	100.5	20%
0.60	1.69	2.19	30%
68.5%	70.0%	64.3%
3.18%	7.74%	8.94%
0.24%	0.70%	0.89%
$108.7	$102.1		$135.8	33%
50,308	49,554		45,914	-7%

o Prudent expense management

with Adj. Non-interest Expense

flat YoY

o Adj. EPS +30% YoY

o Efficiency Ratio, ROTCE, and

ROA all improved significantly

YoY

o Adj. PPNR +33% YoY

• Avg. Diluted Shares -7% YoY

5 Notes: 1Numbers and comparisons are on Adjusted basis. See appendix for discussion and reconciliation of non-GAAP financial measures; 2FY20 and FY21 Non-interest Income includes $11m and $7m of Insurance revenue, respectively.