Net Income of $46.2 million, EPS of $0.55
Operating Earnings of $58.4 million, Operating EPS of $0.70
Quarterly Dividend of $0.3225
Board Authorized $50 million Stock Buyback Program
BOSTON, April 29, 2026 (GLOBE NEWSWIRE) -- Beacon Financial Corporation (NYSE: BBT) (the “Company”) today announced net income of $46.2 million, or $0.55 per basic and diluted share, for the first quarter of 2026, compared to $53.4 million, or $0.64 per basic and diluted share, for the fourth quarter of 2025, and $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025.
"The first quarter results reflect near-term pressures and the tail end of merger activity as we completed the core system conversion in February," stated Paul Perrault, the Company’s President and Chief Executive Officer.
"We remain focused on capturing the full synergies of our merger and executing a strategy that positions the bank for long-term success. We anticipate those actions will translate into stronger financial performance and more robust results as we move through the year.”
Presentation of Results - The Merger
The Company’s merger of equals (the “Merger”) with Brookline Bancorp, Inc. (“Brookline”) was accounted for as a reverse acquisition using the acquisition method of accounting, with the Company treated as the legal acquirer and Brookline treated as the accounting acquirer for financial reporting purposes. The Company’s financial results for any periods ended on or prior to June 30, 2025 reflect Brookline’s results only on a standalone basis. As a result, the Company’s financial results for the first quarter of 2026 may not be directly comparable to prior reported periods.
BALANCE SHEET
Total assets at March 31, 2026 decreased $1.0 billion to $22.2 billion from $23.2 billion at December 31, 2025, primarily driven by the reduction in cash balances due to timing fluctuations in payroll deposits. Total assets increased $10.7 billion from March 31, 2025, primarily due to the assets assumed in the Merger.
Total loans and leases decreased $105.4 million to $17.9 billion at March 31, 2026 from December 31, 2025, primarily due to a further reduction in commercial real estate and consumer loans, partially offset by increases in commercial loans, and increased $8.3 billion from March 31, 2025, primarily due to the loans and leases assumed in the Merger.
Total investment securities at March 31, 2026 increased $29.9 million to $1.7 billion from December 31, 2025 and increased $836.4 million from March 31, 2025, primarily due to investment securities assumed in the Merger.
Total cash and cash equivalents at March 31, 2026 decreased $928.8 million to $1.1 billion from December 31, 2025, primarily driven by the fluctuation within payroll deposits, and increased $755.4 million from March 31, 2025, primarily due to cash and equivalents assumed in the Merger.
Total deposits as of March 31, 2026 decreased $1.2 billion from December 31, 2025, consisting of a $264.7 million decrease in customer deposits, a $676.2 million decrease in payroll deposits, and a $281.5 million decrease in brokered deposits. The decline in customer deposits was driven largely by seasonal first quarter factors such as tax payments, with additional movement concentrated in a small number of rate‑sensitive, higher‑cost accounts. Core consumer and relationship-based deposits remain stable. Total deposits increased $9.4 billion from March 31, 2025, primarily due to the deposits assumed in the Merger.
Total borrowed funds at March 31, 2026 increased $284.1 million from December 31, 2025, and decreased $83.3 million from March 31, 2025.
The ratio of stockholders’ equity to total assets was 11.27 percent at March 31, 2026, compared to 10.75 percent at December 31, 2025, and 10.77 percent at March 31, 2025. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.07 percent at March 31, 2026, compared to 8.62 percent at December 31, 2025, and 8.73 percent at March 31, 2025. Tangible book value per common share (non-GAAP) increased $0.16 from $23.32 at December 31, 2025 to $23.48 at March 31, 2026, and increased $12.45 from $11.03 at March 31, 2025.
NET INTEREST INCOME
Net interest income decreased $8.9 million to $190.8 million during the first quarter of 2026 from $199.7 million for the quarter ended December 31, 2025. The net interest margin decreased 4 basis points to 3.78 percent for the three months ended March 31, 2026 from 3.82 percent for the three months ended December 31, 2025, primarily driven by lower yield on loans and leases and a reduction of interest earning assets, partially offset by lower funding costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended March 31, 2026 decreased $2.0 million to $23.9 million from $25.9 million for the quarter ended December 31, 2025. The decrease was primarily driven by a $1.5 million decline in deposit fees and a $1.5 million decline in gain on sales of loans and leases, partially offset by an increase of $0.6 million in the mark to market on interest rate derivatives.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $7.9 million for the quarter ended March 31, 2026, compared to $8.1 million for the quarter ended December 31, 2025.
Total net charge-offs for the first quarter of 2026 were $13.6 million compared to $9.0 million in the fourth quarter of 2025. The $13.6 million in net charge-offs were primarily driven by resolutions to a large Boston office loan, a large equipment financing loan and several smaller SBA loans. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 30 basis points for the first quarter of 2026 from 20 basis points for the fourth quarter of 2025.
The allowance for loan and lease losses represented 1.36 percent of total loans and leases at March 31, 2026, compared to 1.40 percent at December 31, 2025, and 1.29 percent at March 31, 2025.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.83 percent at March 31, 2026, an increase of 0.20 percent from 0.63 percent at December 31, 2025. Total nonaccrual loans and leases increased $34.5 million to $148.6 million at March 31, 2026, from $114.2 million at December 31, 2025. The ratio of nonperforming assets to total assets was 0.68 percent at March 31, 2026, an increase from 0.50 percent at December 31, 2025. Total nonperforming assets increased $34.5 million to $151.2 million at March 31, 2026 from $116.7 million at December 31, 2025. The increase in nonperforming assets was largely driven by a $17.5 million Boston office property and $8.9 million in two rent-controlled multi-family properties in New York City.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended March 31, 2026 decreased $1.5 million to $140.8 million from $142.4 million for the quarter ended December 31, 2025. The decrease was primarily driven by a decrease of $2.3 million in other non-interest expense primarily due to a decline of $0.9 million in loan workout expense, and a decrease of $1.4 million in merger and restructuring expense, partially offset by an increase of $2.4 million in FDIC insurance expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 29.9 percent for the three months ended March 31, 2026 compared to 29.0 percent for the three months ended December 31, 2025 and 25.0 percent for the three months ended March 31, 2025. The core tax rate was 26.1 percent (non-GAAP).
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to 0.84 percent during the first quarter of 2026 from 0.94 percent for the fourth quarter of 2025.
The annualized return on average stockholders' equity decreased to 7.32 percent during the first quarter of 2026 from 8.70 percent for the fourth quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) decreased to 9.30 percent for the first quarter of 2026 from 11.19 percent for the fourth quarter of 2025.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.3225 per share for the quarter ended March 31, 2026. The dividend will be paid on May 29, 2026 to stockholders of record on May 15, 2026.
STOCK REPURCHASE
The Company’s Board of Directors approved a $50 million stock repurchase program. The stock repurchase program, which is subject to regulatory approval, authorizes the Company to repurchase up to $50 million of shares over 12 months following the authorization by regulatory authorities.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 30, 2026 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website at www.beaconfinancialcorporation.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/947331842. To listen to the call without access to the slides, interested parties may dial 800-715-9871 (United States) or 646-307-1963 (internationally) and ask for the Beacon Financial Corporation conference call (Access Code: 6567963). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 800-770-2030 (United States & Canada) or 609-800-9909 (internationally) and entering the passcode: 6567963.
ABOUT BEACON FINANCIAL CORPORATION
Beacon Financial Corporation (NYSE: BBT) is the holding company for Beacon Bank & Trust, commonly known as Beacon Bank, a full-service regional bank serving the Northeast. Headquartered in Boston, the Company has $22.2 billion in assets and more than 145 branches throughout New England and New York. Beacon Bank offers a full suite of tailored banking solutions including commercial, cash management, asset-based lending, retail, consumer and residential products and services. The Company also provides equipment financing through its Eastern Funding subsidiary, SBA lending through its 44 Business Capital division, and private wealth services through Clarendon Private.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements in other documents it files with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
INVESTOR RELATIONS:
Contact: | Carl M. Carlson |
MEDIA CONTACT:
Contact: | Gary Levante |
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||
Selected Financial Highlights (Unaudited) | ||||||||||
At and for the Three Months Ended | ||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
(Dollars In Thousands Except per Share Data) | ||||||||||
Earnings Data: | ||||||||||
Net interest income | $ | 190,774 | $ | 199,741 | $ | 128,850 | $ | 88,685 | $ | 85,830 |
Provision for credit losses on loans and unfunded commitments | 7,899 | 8,141 | 20,268 | 6,997 | 5,974 | |||||
Provision (recovery) of credit losses on investments | 47 | (35) | 32 | 3 | 12 | |||||
Non-interest income | 23,947 | 25,918 | 12,345 | 5,970 | 5,660 | |||||
Non-interest expense | 140,822 | 142,366 | 129,296 | 58,061 | 60,022 | |||||
Income (loss) before provision for income taxes | 65,953 | 75,187 | (8,401) | 29,594 | 25,482 | |||||
Net income (loss) | 46,217 | 53,366 | (4,221) | 22,026 | 19,100 | |||||
Performance Ratios: | ||||||||||
Net interest margin (1) | 3.78 % | 3.82 % | 3.62 % | 3.32 % | 3.22 % | |||||
Interest-rate spread (1) | 3.02 % | 3.15 % | 2.94 % | 2.57 % | 2.38 % | |||||
Return on average assets (annualized) | 0.84 % | 0.94 % | (0.11)% | 0.77 % | 0.66 % | |||||
Return on average tangible assets (annualized) (non-GAAP) | 0.86 % | 0.97 % | (0.11)% | 0.79 % | 0.68 % | |||||
Return on average stockholders' equity (annualized) | 7.32 % | 8.70 % | (1.01)% | 7.04 % | 6.19 % | |||||
Return on average tangible stockholders' equity (annualized) (non-GAAP) | 9.30 % | 11.19 % | (1.27)% | 8.85 % | 7.82 % | |||||
Efficiency ratio (2) | 65.58 % | 63.09 % | 91.57 % | 61.34 % | 65.60 % | |||||
Per Common Share Data: | ||||||||||
Net income (loss) — Basic | $ | 0.55 | $ | 0.64 | $ | (0.05) | $ | 0.25 | $ | 0.21 |
Net income (loss) — Diluted | 0.55 | 0.64 | (0.05) | 0.25 | 0.21 | |||||
Cash dividends declared | 0.3225 | 0.3225 | 0.3225 | 0.135 | 0.135 | |||||
Book value per share (end of period) | 29.88 | 29.78 | 29.33 | 14.08 | 13.92 | |||||
Tangible book value per share (end of period) (non-GAAP) | 23.48 | 23.32 | 22.75 | 11.20 | 11.03 | |||||
Stock price (end of period) | 30.00 | 26.37 | 23.71 | 10.55 | 10.90 | |||||
Balance Sheet: | ||||||||||
Total assets | $ | 22,227,616 | $ | 23,220,372 | $ | 22,867,458 | $ | 11,568,745 | $ | 11,519,869 |
Total loans and leases | 17,924,156 | 18,029,552 | 18,305,379 | 9,582,374 | 9,642,722 | |||||
Total deposits | 18,292,280 | 19,514,657 | 18,904,063 | 8,961,202 | 8,911,452 | |||||
Total stockholders’ equity | 2,504,781 | 2,496,061 | 2,461,015 | 1,254,171 | 1,240,182 | |||||
Asset Quality: | ||||||||||
Nonperforming assets | $ | 151,239 | $ | 116,747 | $ | 101,990 | $ | 63,596 | $ | 64,021 |
Nonperforming assets as a percentage of total assets | 0.68 % | 0.50 % | 0.45 % | 0.55 % | 0.56 % | |||||
Allowance for loan and lease losses | $ | 244,377 | $ | 252,839 | $ | 253,735 | $ | 126,725 | $ | 124,145 |
Allowance for loan and lease losses as a percentage of total loans and leases | 1.36 % | 1.40 % | 1.39 % | 1.32 % | 1.29 % | |||||
Net loan and lease charge-offs (3) | 13,551 | $ | 9,019 | $ | 15,857 | $ | 5,127 | $ | 7,597 | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.30 % | 0.20 % | 0.51 % | 0.21 % | 0.31 % | |||||
Capital Ratios: | ||||||||||
Stockholders’ equity to total assets | 11.27 % | 10.75 % | 10.76 % | 10.84 % | 10.77 % | |||||
Tangible stockholders’ equity to tangible assets (non-GAAP) | 9.07 % | 8.62 % | 8.56 % | 8.82 % | 8.73 % | |||||
(1) Calculated on a fully tax-equivalent basis. | ||||||||||
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. | ||||||||||
(3) The balance at September 30, 2025 excludes a $15.8 million Merger Day 1 charge-offs write up. | ||||||||||
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
Consolidated Balance Sheets (Unaudited) | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
ASSETS | (In Thousands Except Share Data) | ||||||||||||||
Cash and due from banks | $ | 185,692 | $ | 201,557 | $ | 182,251 | $ | 87,386 | $ | 78,741 | |||||
Short-term investments | 927,256 | 1,840,188 | 1,038,369 | 419,362 | 278,805 | ||||||||||
Total cash and cash equivalents | 1,112,948 | 2,041,745 | 1,220,620 | 506,748 | 357,546 | ||||||||||
Investment securities available-for-sale | 1,718,710 | 1,688,768 | 1,739,423 | 866,684 | 882,353 | ||||||||||
Total investment securities | 1,718,710 | 1,688,768 | 1,739,423 | 866,684 | 882,353 | ||||||||||
Allowance for investment security losses | (141 | ) | (94 | ) | (129 | ) | (97 | ) | (94 | ) | |||||
Net investment securities | 1,718,569 | 1,688,674 | 1,739,294 | 866,587 | 882,259 | ||||||||||
Loans and leases held-for-sale | — | — | 83,330 | — | — | ||||||||||
Loans and leases: | |||||||||||||||
Commercial real estate loans | 9,957,408 | 10,012,094 | 10,247,090 | 5,485,546 | 5,580,982 | ||||||||||
Commercial loans and leases | 4,011,974 | 3,947,363 | 3,950,693 | 2,520,347 | 2,512,912 | ||||||||||
Consumer loans | 3,954,774 | 4,070,095 | 4,107,596 | 1,576,481 | 1,548,828 | ||||||||||
Total loans and leases | 17,924,156 | 18,029,552 | 18,305,379 | 9,582,374 | 9,642,722 | ||||||||||
Allowance for loan and lease losses | (244,377 | ) | (252,839 | ) | (253,735 | ) | (126,725 | ) | (124,145 | ) | |||||
Net loans and leases | 17,679,779 | 17,776,713 | 18,051,644 | 9,455,649 | 9,518,577 | ||||||||||
Restricted equity securities | 97,441 | 87,438 | 99,431 | 66,481 | 67,537 | ||||||||||
Premises and equipment, net of accumulated depreciation | 161,141 | 162,474 | 158,375 | 83,963 | 84,439 | ||||||||||
Right-of-use asset operating leases | 84,851 | 82,817 | 84,238 | 42,415 | 44,144 | ||||||||||
Deferred tax asset | 142,827 | 149,487 | 178,456 | 52,325 | 52,176 | ||||||||||
Goodwill | 355,269 | 351,613 | 353,471 | 241,222 | 241,222 | ||||||||||
Identified intangible assets, net of accumulated amortization | 181,234 | 189,562 | 198,339 | 14,600 | 16,030 | ||||||||||
Other real estate owned and repossessed assets | 2,623 | 2,591 | 3,360 | 1,288 | 917 | ||||||||||
Cash surrender value of bank-owned life insurance policies | 336,980 | 334,442 | 332,840 | 85,479 | 84,959 | ||||||||||
Other assets | 353,954 | 352,816 | 364,060 | 151,988 | 170,063 | ||||||||||
Total assets | $ | 22,227,616 | $ | 23,220,372 | $ | 22,867,458 | $ | 11,568,745 | $ | 11,519,869 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Deposits: | |||||||||||||||
Demand checking accounts | $ | 3,861,000 | $ | 4,032,529 | $ | 3,905,559 | $ | 1,726,933 | $ | 1,664,629 | |||||
Interest-bearing deposits: | |||||||||||||||
NOW accounts | 1,520,600 | 1,445,894 | 1,470,808 | 650,707 | 625,492 | ||||||||||
Savings accounts | 3,088,857 | 2,954,029 | 2,904,888 | 1,795,761 | 1,793,852 | ||||||||||
Money market accounts | 4,393,607 | 4,625,281 | 4,545,231 | 2,153,709 | 2,183,855 | ||||||||||
Payroll deposit accounts | 1,213,861 | 1,890,025 | 1,044,462 | — | — | ||||||||||
Certificate of deposit accounts | 4,085,511 | 4,156,540 | 4,127,226 | 1,877,661 | 1,878,665 | ||||||||||
Brokered deposit accounts | 128,844 | 410,359 | 905,889 | 756,431 | 764,959 | ||||||||||
Total interest-bearing deposits | 14,431,280 | 15,482,128 | 14,998,504 | 7,234,269 | 7,246,823 | ||||||||||
Total deposits | 18,292,280 | 19,514,657 | 18,904,063 | 8,961,202 | 8,911,452 | ||||||||||
Borrowed funds: | |||||||||||||||
Advances from the FHLB | 822,091 | 555,788 | 841,044 | 934,669 | 957,848 | ||||||||||
Subordinated debentures and notes | 198,989 | 198,572 | 198,283 | 84,397 | 84,362 | ||||||||||
Other borrowed funds | 51,423 | 34,000 | 41,189 | 135,985 | 113,617 | ||||||||||
Total borrowed funds | 1,072,503 | 788,360 | 1,080,516 | 1,155,051 | 1,155,827 | ||||||||||
Operating lease liabilities | 90,241 | 90,713 | 92,211 | 43,528 | 45,330 | ||||||||||
Reserve for unfunded credits | 16,555 | 13,746 | 13,727 | 4,586 | 5,296 | ||||||||||
Accrued expenses and other liabilities | 251,256 | 316,835 | 315,926 | 150,207 | 161,782 | ||||||||||
Total liabilities | 19,722,835 | 20,724,311 | 20,406,443 | 10,314,574 | 10,279,687 | ||||||||||
Stockholders' equity: | |||||||||||||||
Common stock, $0.01 par value; 200,000,000 shares authorized; 89,576,403 shares issued, 89,576,403 shares issued, 89,576,403 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively | 896 | 896 | 896 | 970 | 970 | ||||||||||
Additional paid-in capital | 2,172,982 | 2,171,885 | 2,171,912 | 904,697 | 903,696 | ||||||||||
Retained earnings | 504,976 | 485,862 | 459,598 | 475,781 | 465,898 | ||||||||||
Accumulated other comprehensive income | (31,411 | ) | (20,002 | ) | (28,905 | ) | (39,378 | ) | (42,498 | ) | |||||
Treasury stock, at cost; | |||||||||||||||
5,548,772, 5,545,511, 5,449,039, 7,039,136, and 7,037,610 shares, respectively | (142,662 | ) | (142,580 | ) | (142,486 | ) | (87,899 | ) | (87,884 | ) | |||||
Total stockholders' equity | 2,504,781 | 2,496,061 | 2,461,015 | 1,254,171 | 1,240,182 | ||||||||||
Total liabilities and stockholders' equity | $ | 22,227,616 | $ | 23,220,372 | $ | 22,867,458 | $ | 11,568,745 | $ | 11,519,869 | |||||
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||
(In Thousands Except Share Data) | |||||||||||||
Interest and dividend income: | |||||||||||||
Loans and leases | $ | 266,935 | $ | 285,795 | $ | 194,517 | $ | 143,933 | $ | 143,309 | |||
Debt securities | 16,510 | 16,335 | 10,984 | 6,691 | 6,765 | ||||||||
Restricted equity securities | 843 | 1,160 | 1,466 | 1,062 | 1,203 | ||||||||
Short-term investments | 8,096 | 9,293 | 5,438 | 2,386 | 2,451 | ||||||||
Total interest and dividend income | 292,384 | 312,583 | 212,405 | 154,072 | 153,728 | ||||||||
Interest expense: | |||||||||||||
Deposits | 93,056 | 102,439 | 71,901 | 52,682 | 53,478 | ||||||||
Borrowed funds | 8,554 | 10,403 | 11,654 | 12,705 | 14,420 | ||||||||
Total interest expense | 101,610 | 112,842 | 83,555 | 65,387 | 67,898 | ||||||||
Net interest income | 190,774 | 199,741 | 128,850 | 88,685 | 85,830 | ||||||||
Provision for credit losses on loans | 7,899 | 8,141 | 20,268 | 6,997 | 5,974 | ||||||||
Provision (recovery) of credit losses on investments | 47 | (35 | ) | 32 | 3 | 12 | |||||||
Net interest income after provision for credit losses | 182,828 | 191,635 | 108,550 | 81,685 | 79,844 | ||||||||
Non-interest income: | |||||||||||||
Deposit fees | 8,347 | 9,843 | 5,005 | 2,472 | 2,361 | ||||||||
Loan fees | 2,366 | 2,189 | 1,004 | 472 | 393 | ||||||||
Loan level derivative income (loss) | 775 | 721 | 635 | (4 | ) | 70 | |||||||
Gain on sales of loans and leases held-for-sale | 2,689 | 4,154 | 1,175 | 264 | 24 | ||||||||
Wealth management fees | 4,464 | 4,370 | 2,466 | 1,421 | 1,491 | ||||||||
Other | 5,306 | 4,641 | 2,060 | 1,345 | 1,321 | ||||||||
Total non-interest income | 23,947 | 25,918 | 12,345 | 5,970 | 5,660 | ||||||||
Non-interest expense: | |||||||||||||
Compensation and employee benefits | 69,650 | 70,204 | 49,999 | 35,147 | 35,853 | ||||||||
Occupancy | 13,097 | 11,877 | 6,921 | 5,349 | 5,721 | ||||||||
Equipment and data processing | 20,127 | 19,754 | 11,110 | 6,841 | 7,012 | ||||||||
Professional services | 2,462 | 2,778 | 2,114 | 1,471 | 1,726 | ||||||||
FDIC insurance | 4,320 | 1,924 | 1,971 | 1,880 | 2,037 | ||||||||
Advertising and marketing | 1,679 | 2,157 | 1,583 | 1,371 | 868 | ||||||||
Amortization of identified intangible assets | 8,328 | 8,777 | 3,587 | 1,431 | 1,430 | ||||||||
Other | 8,134 | 10,471 | 6,148 | 4,132 | 4,404 | ||||||||
Total non-interest operating expense | 127,797 | 127,942 | 83,433 | 57,622 | 59,051 | ||||||||
Merger and restructuring expense | 13,025 | 14,424 | 45,863 | 439 | 971 | ||||||||
Total non-interest expense | 140,822 | 142,366 | 129,296 | 58,061 | 60,022 | ||||||||
Income (loss) before provision for income taxes | 65,953 | 75,187 | (8,401 | ) | 29,594 | 25,482 | |||||||
Provision (benefit) for income taxes | 19,736 | 21,821 | (4,180 | ) | 7,568 | 6,382 | |||||||
Net Income (loss) | $ | 46,217 | $ | 53,366 | $ | (4,221 | ) | $ | 22,026 | $ | 19,100 | ||
Earnings per common share: | |||||||||||||
Basic | $ | 0.55 | $ | 0.64 | $ | (0.05 | ) | $ | 0.25 | $ | 0.21 | ||
Diluted | $ | 0.55 | $ | 0.64 | $ | (0.05 | ) | $ | 0.25 | $ | 0.21 | ||
Weighted average common shares outstanding during the period: | |||||||||||||
Basic | 83,816,086 | 83,851,381 | 87,508,517 | 89,104,605 | 89,103,510 | ||||||||
Diluted | 83,903,440 | 83,878,047 | 87,832,552 | 89,612,781 | 89,567,747 | ||||||||
Dividends paid per common share | $ | 0.3225 | $ | 0.3225 | $ | 0.3225 | $ | 0.135 | $ | 0.135 | |||
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
Asset Quality Analysis (Unaudited) | |||||||||||||||
At and for the Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
(Dollars in Thousands) | |||||||||||||||
NONPERFORMING ASSETS: | |||||||||||||||
Loans and leases accounted for on a nonaccrual basis: | |||||||||||||||
Commercial real estate mortgage | $ | 65,127 | $ | 41,246 | $ | 30,213 | $ | 987 | $ | 10,842 | |||||
Multi-family mortgage | 12,995 | 4,065 | 2,994 | 1,433 | 6,576 | ||||||||||
Construction | — | — | 535 | — | — | ||||||||||
Total commercial real estate loans | 78,122 | 45,311 | 33,742 | 2,420 | 17,418 | ||||||||||
Commercial | 22,626 | 16,716 | 14,035 | 8,687 | 7,415 | ||||||||||
Equipment financing | 38,633 | 42,718 | 41,793 | 46,067 | 32,975 | ||||||||||
Total commercial loans and leases | 61,259 | 59,434 | 55,828 | 54,754 | 40,390 | ||||||||||
Residential mortgage | 5,807 | 6,465 | 6,597 | 3,572 | 3,962 | ||||||||||
Home equity | 3,222 | 2,739 | 2,220 | 1,561 | 1,333 | ||||||||||
Other consumer | 206 | 207 | 243 | 1 | 1 | ||||||||||
Total consumer loans | 9,235 | 9,411 | 9,060 | 5,134 | 5,296 | ||||||||||
Total nonaccrual loans and leases | 148,616 | 114,156 | 98,630 | 62,308 | 63,104 | ||||||||||
Other real estate owned | — | — | 824 | 700 | 700 | ||||||||||
Other repossessed assets | 2,623 | 2,591 | 2,536 | 588 | 217 | ||||||||||
Total nonperforming assets | $ | 151,239 | $ | 116,747 | $ | 101,990 | $ | 63,596 | $ | 64,021 | |||||
Loans and leases past due greater than 90 days and still accruing | $ | 5,834 | $ | 37,823 | $ | 23,570 | $ | 24,899 | $ | 3,009 | |||||
Nonperforming loans and leases as a percentage of total loans and leases | 0.83 | % | 0.63 | % | 0.54 | % | 0.65 | % | 0.65 | % | |||||
Nonperforming assets as a percentage of total assets | 0.68 | % | 0.50 | % | 0.45 | % | 0.55 | % | 0.56 | % | |||||
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | |||||||||||||||
Allowance for loan and lease losses at beginning of period | $ | 252,839 | $ | 253,735 | $ | 126,725 | $ | 124,145 | $ | 125,083 | |||||
Merger Day 1 allowance on non-PCD loans * | — | — | 67,229 | — | — | ||||||||||
Merger Day 1 allowance on PCD loans | — | — | 64,511 | — | — | ||||||||||
Charge-offs | (15,880 | ) | (10,917 | ) | (16,661 | ) | (5,601 | ) | (9,073 | ) | |||||
Recoveries | 2,329 | 1,898 | 804 | 474 | 1,476 | ||||||||||
Net charge-offs** | (13,551 | ) | (9,019 | ) | (15,857 | ) | (5,127 | ) | (7,597 | ) | |||||
Provision for loan and lease losses excluding unfunded commitments *** | 5,089 | 8,123 | 11,127 | 7,707 | 6,659 | ||||||||||
Allowance for loan and lease losses at end of period | $ | 244,377 | $ | 252,839 | $ | 253,735 | $ | 126,725 | $ | 124,145 | |||||
Allowance for loan and lease losses as a percentage of total loans and leases | 1.36 | % | 1.40 | % | 1.39 | % | 1.32 | % | 1.29 | % | |||||
NET CHARGE-OFFS: | |||||||||||||||
Commercial real estate loans | $ | 6,997 | $ | 6,598 | $ | 819 | $ | 3,524 | $ | — | |||||
Commercial loans and leases | 6,611 | 2,799 | 15,116 | 1,640 | 7,647 | ||||||||||
Consumer loans | (57 | ) | (378 | ) | (78 | ) | (37 | ) | (50 | ) | |||||
Total net charge-offs** | $ | 13,551 | $ | 9,019 | $ | 15,857 | $ | 5,127 | $ | 7,597 | |||||
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.30 | % | 0.20 | % | 0.51 | % | 0.21 | % | 0.31 | % | |||||
*As a result of the adoption of ASU 2025-08, this amount, related to seasoned non-PCD loans, is recorded as part of purchase accounting adjustments, not through the provision. | |||||||||||||||
** Excludes the impact of Merger Day 1 purchase accounting that resulted in $15.8 million of charge-offs during the three months ended September 30, 2025. | |||||||||||||||
***Provision for loan and lease losses does not include provision (credit) of $2.8 million, $(0.0 million), $9.1 million of which $8.4 million was related to Merger Day 1, $(0.7 million), and $(0.7 million) for credit losses on unfunded commitments during the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively. | |||||||||||||||
BEACON FINANCIAL CORPORATION. AND SUBSIDIARIES | ||||||||||||||||||
Average Yields / Costs (Unaudited) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||
Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | ||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Debt securities (2) | $ | 1,684,382 | $ | 17,153 | 4.07 | % | $ | 1,701,105 | $ | 17,028 | 4.00 | % | $ | 888,913 | $ | 6,814 | 3.07 | % |
Restricted equity securities (2) | 84,281 | 845 | 4.01 | % | 90,227 | 1,163 | 5.16 | % | 69,784 | 1,204 | 6.90 | % | ||||||
Short-term investments | 879,562 | 8,096 | 3.68 | % | 935,845 | 9,293 | 3.97 | % | 202,953 | 2,451 | 4.83 | % | ||||||
Total investments | 2,648,225 | 26,094 | 3.94 | % | 2,727,177 | 27,484 | 4.03 | % | 1,161,650 | 10,469 | 3.60 | % | ||||||
Loans and Leases: | ||||||||||||||||||
Commercial real estate loans (3) | 9,974,029 | 143,162 | 5.74 | % | 10,124,749 | 152,780 | 5.90 | % | 5,651,390 | 77,243 | 5.47 | % | ||||||
Commercial loans (3) | 2,877,031 | 44,646 | 6.21 | % | 2,795,135 | 47,958 | 6.72 | % | 1,237,078 | 19,698 | 6.37 | % | ||||||
Equipment financing (3) | 1,117,336 | 23,545 | 8.43 | % | 1,182,376 | 25,206 | 8.53 | % | 1,281,425 | 25,965 | 8.11 | % | ||||||
Consumer loans (3) | 4,006,808 | 56,561 | 5.66 | % | 4,102,433 | 60,907 | 5.92 | % | 1,548,973 | 20,861 | 5.41 | % | ||||||
Total loans and leases | 17,975,204 | 267,914 | 5.96 | % | 18,204,693 | 286,851 | 6.30 | % | 9,718,866 | 143,767 | 5.92 | % | ||||||
Total interest-earning assets | 20,623,429 | 294,008 | 5.70 | % | 20,931,870 | 314,335 | 6.01 | % | 10,880,516 | 154,236 | 5.67 | % | ||||||
Non-interest-earning assets | 1,512,428 | 1,712,611 | 662,814 | |||||||||||||||
Total assets | $ | 22,135,857 | $ | 22,644,481 | $ | 11,543,330 | ||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
NOW accounts | $ | 1,494,773 | 3,526 | 0.96 | % | $ | 1,445,932 | 2,953 | 0.81 | % | $ | 628,346 | 1,005 | 0.65 | % | |||
Savings accounts | 3,032,997 | 13,612 | 1.82 | % | 2,939,288 | 14,770 | 1.99 | % | 1,743,688 | 10,173 | 2.37 | % | ||||||
Money market accounts | 5,709,490 | 35,969 | 2.55 | % | 5,546,257 | 37,347 | 2.67 | % | 2,187,581 | 13,587 | 2.52 | % | ||||||
Certificates of deposit | 4,136,313 | 36,870 | 3.62 | % | 4,150,590 | 39,438 | 3.77 | % | 1,886,386 | 19,593 | 4.21 | % | ||||||
Brokered deposit accounts | 307,179 | 3,079 | 4.06 | % | 739,874 | 7,931 | 4.25 | % | 767,275 | 9,120 | 4.82 | % | ||||||
Total interest-bearing deposits | 14,680,752 | 93,056 | 2.57 | % | 14,821,941 | 102,439 | 2.74 | % | 7,213,276 | 53,478 | 3.01 | % | ||||||
Borrowings | ||||||||||||||||||
Advances from the FHLB | 476,434 | 4,678 | 3.93 | % | 607,594 | 6,533 | 4.21 | % | 1,007,508 | 11,847 | 4.70 | % | ||||||
Subordinated debentures and notes | 198,755 | 3,588 | 7.22 | % | 198,411 | 3,623 | 7.30 | % | 84,345 | 1,701 | 8.07 | % | ||||||
Other borrowed funds | 26,974 | 288 | 4.33 | % | 38,089 | 247 | 2.57 | % | 71,462 | 872 | 4.95 | % | ||||||
Total borrowings | 702,163 | 8,554 | 4.87 | % | 844,094 | 10,403 | 4.82 | % | 1,163,315 | 14,420 | 4.96 | % | ||||||
Total interest-bearing liabilities | 15,382,915 | 101,610 | 2.68 | % | 15,666,035 | 112,842 | 2.86 | % | 8,376,591 | 67,898 | 3.29 | % | ||||||
Non-interest-bearing liabilities: | ||||||||||||||||||
Demand checking accounts | 3,866,588 | 3,982,227 | 1,680,527 | |||||||||||||||
Other non-interest-bearing liabilities | 362,368 | 542,739 | 251,011 | |||||||||||||||
Total liabilities | 19,611,871 | 20,191,001 | 10,308,129 | |||||||||||||||
Stockholders’ equity | 2,523,986 | 2,453,480 | 1,235,201 | |||||||||||||||
Total liabilities and equity | $ | 22,135,857 | $ | 22,644,481 | $ | 11,543,330 | ||||||||||||
Net interest income (tax-equivalent basis) /Interest-rate spread (4) | 192,398 | 3.02 | % | 201,493 | 3.15 | % | 86,338 | 2.38 | % | |||||||||
Less adjustment of tax-exempt income | 1,624 | 1,752 | 508 | |||||||||||||||
Net interest income | $ | 190,774 | $ | 199,741 | $ | 85,830 | ||||||||||||
Net interest margin (5) | 3.78 | % | 3.82 | % | 3.22 | % | ||||||||||||
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. | ||||||||||||||||||
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. | ||||||||||||||||||
(3) Loans on nonaccrual status are included in the average balances. | ||||||||||||||||||
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | ||||||||||||||||||
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. | ||||||||||||||||||
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
Non-GAAP Financial Information (Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
2026 | 2025 | ||||||||||||||
Reconciliation Table - Non-GAAP Financial Information | |||||||||||||||
Reported Pretax Income | $ | 65,953 | $ | 25,482 | |||||||||||
Add: | |||||||||||||||
Merger and restructuring expense | 13,025 | 971 | |||||||||||||
Operating Pretax income | $ | 78,978 | $ | 26,453 | |||||||||||
Effective tax rate | 26.1 | % | 24.3 | % | |||||||||||
Provision for income taxes | 20,590 | 6,416 | |||||||||||||
Operating earnings after tax | $ | 58,388 | $ | 20,037 | |||||||||||
Operating earnings per common share: | |||||||||||||||
Basic | $ | 0.70 | $ | 0.22 | |||||||||||
Diluted | $ | 0.70 | $ | 0.22 | |||||||||||
Weighted average common shares outstanding during the period: | |||||||||||||||
Basic | 83,816,086 | 89,103,510 | |||||||||||||
Diluted | 83,903,440 | 89,567,747 | |||||||||||||
Return on average assets * | 0.84 | % | 0.66 | % | |||||||||||
Add: | |||||||||||||||
Merger and restructuring expense (after-tax) * | 0.17 | % | 0.03 | % | |||||||||||
Operating return on average assets * | 1.01 | % | 0.69 | % | |||||||||||
Return on average tangible assets * | 0.86 | % | 0.68 | % | |||||||||||
Add: | |||||||||||||||
Merger and restructuring expense (after-tax) * | 0.18 | % | 0.03 | % | |||||||||||
Operating return on average tangible assets * | 1.04 | % | 0.71 | % | |||||||||||
Return on average stockholders' equity * | 7.32 | % | 6.19 | % | |||||||||||
Add: | |||||||||||||||
Merger and restructuring expense (after-tax) * | 1.53 | % | 0.24 | % | |||||||||||
Operating return on average stockholders' equity * | 8.85 | % | 6.43 | % | |||||||||||
Return on average tangible stockholders' equity * | 9.30 | % | 7.82 | % | |||||||||||
Add: | |||||||||||||||
Merger and restructuring expense (after-tax) * | 1.94 | % | 0.30 | % | |||||||||||
Operating return on average tangible stockholders' equity * | 11.24 | % | 8.12 | % | |||||||||||
* Ratios at and for the three months ended are annualized. | |||||||||||||||
At and for the Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
(Dollars in Thousands) | |||||||||||||||
Net income (loss), as reported | $ | 46,217 | $ | 53,366 | $ | (4,221 | ) | $ | 22,026 | $ | 19,100 | ||||
Average total assets | $ | 22,135,857 | $ | 22,644,481 | $ | 15,210,080 | $ | 11,402,934 | $ | 11,543,330 | |||||
Less: Average goodwill and average identified intangible assets, net | 536,900 | 546,276 | 353,189 | 256,508 | 257,941 | ||||||||||
Average tangible assets | $ | 21,598,957 | $ | 22,098,205 | $ | 14,856,891 | $ | 11,146,426 | $ | 11,285,389 | |||||
Return on average tangible assets (annualized) | 0.86 | % | 0.97 | % | (0.11 | )% | 0.79 | % | 0.68 | % | |||||
Average total stockholders’ equity | $ | 2,523,986 | $ | 2,453,480 | $ | 1,678,208 | $ | 1,252,055 | $ | 1,235,201 | |||||
Less: Average goodwill and average identified intangible assets, net | 536,900 | 546,276 | 353,189 | 256,508 | 257,941 | ||||||||||
Average tangible stockholders’ equity | $ | 1,987,086 | $ | 1,907,204 | $ | 1,325,019 | $ | 995,547 | $ | 977,260 | |||||
Return on average tangible stockholders’ equity (annualized) | 9.30 | % | 11.19 | % | (1.27 | )% | 8.85 | % | 7.82 | % | |||||
Total stockholders’ equity | $ | 2,504,781 | $ | 2,496,061 | $ | 2,461,015 | 1,254,171 | 1,240,182 | |||||||
Less: | |||||||||||||||
Goodwill | 355,269 | 351,613 | 353,471 | 241,222 | 241,222 | ||||||||||
Identified intangible assets, net | 181,234 | 189,562 | 198,339 | 14,600 | 16,030 | ||||||||||
Tangible stockholders' equity | $ | 1,968,278 | $ | 1,954,886 | $ | 1,909,205 | $ | 998,349 | $ | 982,930 | |||||
Total assets | $ | 22,227,616 | $ | 23,220,372 | $ | 22,867,458 | $ | 11,568,745 | $ | 11,519,869 | |||||
Less: | |||||||||||||||
Goodwill | 355,269 | 351,613 | 353,471 | 241,222 | 241,222 | ||||||||||
Identified intangible assets, net | 181,234 | 189,562 | 198,339 | 14,600 | 16,030 | ||||||||||
Tangible assets | $ | 21,691,113 | $ | 22,679,197 | $ | 22,315,648 | $ | 11,312,923 | $ | 11,262,617 | |||||
Tangible stockholders’ equity to tangible assets | 9.07 | % | 8.62 | % | 8.56 | % | 8.82 | % | 8.73 | % | |||||
Tangible stockholders' equity | $ | 1,968,278 | $ | 1,954,886 | $ | 1,909,205 | $ | 998,349 | $ | 982,930 | |||||
Number of common shares issued | 89,576,403 | 89,576,403 | 89,576,403 | 96,998,075 | 96,998,075 | ||||||||||
Less: | |||||||||||||||
Treasury shares | 5,548,772 | 5,545,511 | 5,449,039 | 7,039,136 | 7,037,610 | ||||||||||
Unvested restricted shares | 211,545 | 214,806 | 218,503 | 854,334 | 855,860 | ||||||||||
Number of common shares outstanding | 83,816,086 | 83,816,086 | 83,908,861 | 89,104,605 | 89,104,605 | ||||||||||
Tangible book value per common share | $ | 23.48 | $ | 23.32 | $ | 22.75 | $ | 11.20 | $ | 11.03 | |||||
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