$0.77
Quarterly GAAP EPS
$0.3225
Quarterly Dividend Per Share
$0.77
Quarterly Operating EPS
Highlights
Total assets of $22.3 billion. Total loans of $17.8 billion. Total deposits of $18.5 billion. Margin of 3.81%.Noninterest income up 9% quarter over quarter.
No merger expense incurred during the quarter, as expected.
ROA of 1.17% and ROTE of 12.84%.
Core efficiency ratio of 54.26%.
Fortress Balance Sheet / Asset Quality
Loans to Deposits of 96%.NPAs to total assets of 0.70%.
Reserve to Loans coverage of 1.34%.
Total Risk Based Capital of 13.6% and Tangible Common Equity (TCE) of 9.3%.
Summary Income Statement
Linked Quarter (LQ) | Year over Year (YoY) | |||||||
$m, except per share amts | 2Q26 1Q26 | Δ | %Δ | 2Q25 Δ | %Δ | |||
Net interest income | $ 193.2 $ 190.8 | $ 2.4 | 1% | $ 88.7 $ 104.5 | 118% | |||
Noninterest income | 26.0 23.9 | 2.0 | 9% | 6.0 20.0 | 333% | |||
Total Revenue | 219.2 | 214.7 | 4.5 | 2% | 94.7 | 124.5 | 131% | |
Noninterest expense | 118.9 | 119.5 | (0.5) | 0% | 56.3 | 62.6 | 111% | |
Amortization of intangibles | 8.3 | 8.3 | - | 0% | 1.4 | 6.9 | 495% | |
Restructuring/Merger exp. | - | 13.0 | (13.0) | -100% | 0.4 | (0.4) | -100% | |
Pretax, Preprov. Net Rev. | 91.9 | 73.9 | 18.0 | 24% | 36.6 | 55.3 | 151% | |
Provision for credit losses | 4.9 | 7.9 | (3.0) | -38% | 7.0 | (2.1) | -30% | |
Pretax income | 87.0 | 66.0 | 21.1 | 32% | 29.6 | 57.4 | 194% | |
Provision for taxes | 22.6 | 19.7 | 2.9 | 14% | 7.6 | 15.0 | 197% | |
Net Income | $ 64.4 | $ 46.2 | $ 18.2 | 39% | $ 22.0 | $ 42.4 | 193% | |
EPS | $ 0.77 | $ 0.55 | $ 0.22 | 40% | $ 0.25 | $ 0.52 | 208% | |
Avg diluted shares (000s) | 83,939 | 83,903 | 36 | 0% | 89,613 | (5,674) | -6% | |
Return on Assets | 1.17% | 0.84% | 0.33% | 0.79% | 0.38% | |||
Return on Tangible Equity | 12.84% | 9.30% | 3.53% | 8.85% | 3.99% | |||
Net Interest Margin | 3.81% | 3.78% | 0.03% | 3.32% | 0.49% | |||
Core Efficiency Ratio | 54.26% | 55.64% | -1.38% | 59.36% | -5.10% | |||
Net Income of $64.4 million or $0.77 per share.
Net interest income increased $2.4 million from prior quarter reflecting higher margin and one additional day in Q2.
Noninterest income increased $2.0 million from prior quarter primarily driven by increases of $1.2 million in gain on loan sales and $0.6 million in loan level derivative income.
Total operating expense decreased $0.5 million.
Margin - Yields and Costs1.6
$ 193.2
Net interest income, TEB / Margin $ 194.8 3.81%
Purchase Accounting* | |
Interest | Yield |
$ 8.3 | 0.19% |
4.8 | 0.71% |
$ 13.1 | 0.26% |
$ 0.6 | 0.02% |
0.3 | 0.12% |
$ 0.9 | 0.02% 0.23% |
- | |
$ 12.2 | |
* quarterly accretion / amortization of interest rate marks. | |
2Q26 Prior Quarter LQΔ
$ millions | Avg Bal | Interest | Yield |
Loans | $ 17,807 | $ 266.6 | 5.99% |
Investments & earning cash | 2,707 | 28.7 | 4.24% |
Interest Earning Assets | $ 20,514 | $ 295.2 | 5.76% |
Interest bearing deposits | 14,342 | $ 89.0 | 2.49% |
Borrowings | 997 | 11.5 | 4.55% |
Interest Bearing Liabilities | $ 15,339 | $ 100.4 | 2.63% |
Net interest spread | 3.13% |
Avg Bal | Interest | Yield |
$ 17,975 | $ 267.9 | 5.96% |
2,648 | 26.1 | 3.94% |
$ 20,623 | $ 294.0 | 5.70% |
14,681 | $ 93.1 | 2.57% |
702 | 8.6 | 4.87% |
$ 15,383 | $ 101.6 | 2.68% 3.02% |
Avg Bal | Interest | Yield |
$ (168) | $ (1.3) | 0.03% |
59 | 2.6 | 0.30% |
$ (109) | $ 1.3 | 0.06% |
$ (339) | $ (4.1) | -0.08% |
295 | 2.9 | -0.32% |
$ (44) | $ (1.1) | -0.05% 0.11% |
1.6
$ 190.8
$
-
2.4
LESS: Tax Equivalent Basis (TEB) Adj. Net Interest Income
$ 192.4 3.78%
$ 2.4 0.03%
$ 12.2 0.24%
Rate Environment | 6/30/2025 | 9/30/2025 | 12/31/2025 | 3/31/2026 | 6/30/2026 | LQ Chg | YoY Chg | |
Fed Funds (upper) | 4.50% | 4.25% | 3.75% | 3.75% | 3.75% | 0.00% | -0.75% | |
SOFR | 4.45% | 4.24% | 3.87% | 3.68% | 3.68% | 0.00% | -0.77% | |
2Y Treasury | 3.72% | 3.60% | 3.47% | 3.79% | 4.14% | 0.35% | 0.42% | |
5Y Treasury | 3.79% | 3.74% | 3.73% | 3.92% | 4.19% | 0.27% | 0.40% | |
10Y Treasury | 4.24% | 4.16% | 4.18% | 4.30% | 4.44% | 0.14% | 0.20% |
$m, except per share amts | 2Q26 | 1Q26 | Δ | 2Q25 | Δ | %Δ | |
Gross Loans, investment | $ 17,822 | $ 17,924 | $ (102) | $ 9,582 | $ 8,240 | 86% | |
Allowance for loan losses | (238) | (244) | 6 | (127) | (111) | 88% | |
Net Loans | 17,584 | 17,680 | (96) | 9,455 | 8,129 | 86% |
Linked Quarter (LQ) Year over Year (YoY)
Securities 1,761 1,719 43 867 894 103%
Cash & equivalents 1,216 1,113 103 507 709 140%
Intangibles 530 537 (6) 256 274 107%
Other assets & Loans, HFS 1,159 1,180 (21) 484 675 140%
On the balance sheet, total assets increased $23 million to $22.3 billion, driven by higher total deposits impacting cash equivalents.
Loans declined $102 million, or 0.6%, reflecting CRE and Equipment
Total Assets
$ 22,251
$ 22,228 $
23 $
11,569
$ 10,682
92%
Financing runoff.
Deposits | $ 18,486 | $ 18,292 | $ 194 | $ 8,961 | $ 9,525 | 106% | |
Borrowings | 889 | 1,073 | (184) | 1,155 | (266) | -23% | |
Reserve for unfunded loans | 13 | 17 | (3) | 5 | 8 | 169% | |
Other Liabilities | 323 | 341 | (18) | 194 | 129 | 67% | |
Total Liabilities | 19,711 | 19,723 | (12) | 10,315 | 9,396 | 91% | |
Stockholders' Equity | 2,540 | 2,505 | 35 | 1,254 | 1,286 | 103% | |
Total Liabilities & Equity | $ 22,251 | $ 22,228 | $ 23 | $ 11,569 | $ 10,682 | 92% | |
TBV per share | $ 23.98 | $ 23.48 | $ 0.50 | $ 11.20 | $ 12.78 | 114% | |
Actual shares outstanding (000) | 83,816 | 83,816 | - | 89,105 | (5,289) | -6% | |
Tang. Equity / Tang. Assets | 9.25% | 9.07% | 0.18% | 8.82% | 0.43% | ||
Loans / Deposits | 96.41% | 97.99% | -1.58% | 106.93% | -10.52% | ||
ALLL / Gross Loans | 1.34% | 1.36% | -0.03% | 1.32% | 0.02% |
Deposits increased 1.1%, driven primarily by higher customer deposits across DDA, NOW and Money Market as well as an increase in Brokered.
Loans and DepositsLoans
22%
6%
55%
17%
Linked Quarter (LQ)
CRE
Commercial Equipment Finance Consumer
Total Loans
$
$
9,884
2,950
1,031
3,956
17,822
$
$
9,957
2,938
1,074
3,955
17,924
$
$
(73)
12
(43)
1
(102)
LOANS
$ millions 2Q26 1Q26 Δ
Demand deposits
$ 3,911 $
3,861 $ 50
CRE C&I Equipment Consumer1%
7%
21%
22%
9%
16%
24%
Deposits
NOW 1,570 1,521 49
DEPOSITS
Savings 3,035 3,089 (54)
Money market 4,462 4,393 69
CDs 4,065 4,086 (21)
Payroll deposits 1,212 1,214 (2)
Brokered deposits 231 129 102
Total Deposits
$ 18,486
$ 18,292 $
194
Customer deposits*
$ 17,042
$ 16,949 $ 94
*Excludes Payroll and Brokered deposits
DDA NOW SavingsMM CDs Payroll
Brokered
$0.3225
Quarterly Dividend Per Share
42% payout based on 2Q'26 EPS
Regulatory BASEL III Requirements | Beacon Board Policy Limits | Capital in Excess of "Well Capitalized" | |||||
$ millions | Jun-26 | Minimum | "Well Capitalized" | Policy Minimums | Operating Targets | Regulatory Capital Buffer % | Regulatory Capital Buffer $ |
Tier 1 Common / RWA | 11.6% | ≥ 4.5% | ≥ 6.5% | ≥ 7.5% | ≥ 8.0% | 5.1% | $ 917.4 |
Tier 1 / RWA | 11.7% | ≥ 6.0% | ≥ 8.0% | ≥ 9.0% | ≥ 9.5% | 3.7% | $ 676.4 |
Total Risk Based Capital | 13.6% | ≥ 8.0% | ≥ 10.0% | ≥ 11.0% | ≥ 11.5% | 3.6% | $ 654.2 |
Leverage Ratio | 9.8% | ≥ 5.0% | ≥ 5.0% | ≥ 6.0% | ≥ 6.5% | 4.8% | $ 1,040.9 |
preliminary estimates*
4.2%
Current Dividend Yield**
** Based on annual dividend of
$1.29 and stock price of $30.45 (close 06/30/26)
317%
ICRE / Total RBC
24%
Construction / Total RBC
* Regulatory capital ratios are preliminary estimates and may differ from numbers calculated in final Regulatory filings.
The Board of Directors announced a dividend of $0.3225 per share payable August 28, 2026 to stockholders of record on August 14, 2026.
Outlook
FORWARD LOOKING
Loans | Expect loan growth to be in the low single digits for the remainder of the year driven by strong C&I lending. Dependent on economic activity. |
Margin | The net interest margin is expected in the range of 3.80%-3.85%. Accretion from purchase accounting will be in the range of $12 million per quarter and will fluctuate due to prepayment activity. |
Credit | Credit costs are expected in the range of $5-9 million per qtr. |
Fees | Modest fee income growth in the mid-single digits is anticipated. |
Expenses | No further merger charges are anticipated. Targeted cost synergies announced in December 2024 have been executed on and realized. |
Taxes | The effective tax rate is currently estimated in the range of 26% for the remainder of 2026. |
Our current Base Case does not anticipate changes to the Fed Fund Target Rate for the remainder of 2026.
The regional economy continues to perform well however, the conflict in Iran continues to create greater uncertainty, elevated volatility, and higher longer-term interest rates which are impacting investment activity.
Non Performing Assets and Net Charge Offs
Linked Quarter (LQ) Year over Year (YoY)
2Q26 | 1Q26 | Δ | 2Q25 | Δ | ||
Non Performing Assets (NPAs), in millions | ||||||
CRE | $ 77.1 | $ 78.1 | $ (1.0) | $ 2.4 | $ 74.7 | |
C&I | 66.4 | 61.3 | 5.1 | 54.8 | 11.6 | |
Consumer | 9.2 | 9.2 | - | 5.1 | 4.1 | |
Total Non Performing Loans (NPLs) | 152.7 | 148.6 | 4.1 | 62.3 | 90.4 | |
Other real estate owned | 0.1 - 0.1 | 0.7 | (0.6) | |||
Other repossessed assets | 2.4 2.6 (0.2) | 0.6 | 1.8 | |||
Total NPAs | $ 155.2 | $ 151.2 | $ 4.0 | $ 63.6 | $ 91.6 | |
NPLs / Total Loans | 0.86% | 0.83% | 0.03% | 0.65% | 0.21% | |
NPAs / Total Assets | 0.70% | 0.68% | 0.02% | 0.55% | 0.15% | |
Net Charge Offs (NCOs), in millions | ||||||
CRE loans | $ 7.4 | $ 7.0 | $ 0.4 | $ 3.5 | $ 3.9 | |
C&I loans | 6.9 | 6.6 | 0.3 | 1.6 | 5.3 | |
Consumer loans - | (0.1) | 0.1 | - | - | ||
Total Net Charge Offs $ 14.3 | $ 13.5 | $ 0.8 | $ 5.1 | $ 9.2 | ||
NCOs / Avg. Loans (annualized) | 0.32% | 0.30% | 0.02% | 0.21% | 0.11% | |
Amounts as presented may differ slightly from the Company's Earnings Release due to rounding to foot schedules presented.
The $14.3 million in net charge-offs were primarily driven by a Boston office loan, a large industrial laundry loan at Eastern Funding, and two rent controlled multi-family properties. These charge-offs were largely specifically reserved for in prior periods.
Major Loan Segments with Industry Breakdown2Q26
Retail 22%
$3,956
$7,798 $3,784 $2,284
Investment CRE 44%
Commercial Core 21%
Specialty Lending 13%
Perm Constr Total % Naics Total % Vertical Total % Call Code Total %
Multifamily | $ 2,240 | $ 160 | $ 2,400 | 31% | RE Agent / Broker | $ 600 | 16% | ABL | $ 788 | 35% | Resi 1st Mtg | $ 3,138 | 79% |
Retail | 1,321 | 3 | 1,324 | 17% | Food & Lodging | 552 | 15% | EF Core | 924 | 40% | Resi Jr Mtg | 26 | 1% |
Industrial | 1,062 | 22 | 1,084 | 14% | Health and Social | 418 | 11% | 44BC | 287 | 13% | Resi Heloc | 659 | 17% |
Office | 1,035 | 30 | 1,065 | 14% | Professional | 406 | 11% | Firestone | 12 | 1% | Consumer 133 3% | ||
Hospitality | 520 | 1 | 521 | 7% | Manufacturing | 386 | 10% | EF Vehicle | 145 | 6% | Total | $ 3,956 | 100% |
Healthcare | 435 | 20 | 455 | 6% | Retail | 324 | 9% | EF Macrolease 128 5% | |||||
Lab | 182 | 17 | 199 | 2% | Finance and Ins | 305 | 8% | Total $ 2,284 100% | |||||
Restaurant | 136 | - | 136 | 1% | Arts, Entertainment | 217 | 6% | ||||||
Other 501 113 614 8% Wholesale Trade 213 5% | |||||||||||||
Total $ 7,432 $ | 366 | $ 7,798 | 100% | Other Services | 202 | 5% |
Construction | 134 | 3% | ||||
Owner Occupied CRE included in Commercial and Equipment Finance | Trans / Warehouse 27 1% Total $ 3,784 100% | |||||
EF Vehicle, EF Macrolease, and Firestone have discontinued new originations.
Total Loans Outstanding: $17,822
Balances shown are loan book balances, net of acquisition marks.
Investment CRE Loan to Value (LTV)2Q26
Non-Owner Occupied CRE and Multifamily Exposures at June 30, 2026
3%
7%
51%
39%
Investment CRE by Maturity2Q26
49%
11%
14%
16%
10%
Non-Owner Occupied CRE and Multifamily Exposures at June 30, 2026
Office Portfolio, includes Construction
2Q26
Rural,
8%
Urban,
29%
Suburban, 63%
~98% of portfolio is within footprint and 63% is Suburban
Majority of portfolio (~67%) matures after 2027
Office CRE portfolio totals ~$1.2B or 6.6% of Total Loans.
2026,
21%
Maturity
2029 & Schedule
After, 54%
2027,
12%
2028,
13%
Office Portfolio Metrics
Office Portfolio & Asset Quality
Continue to manage the risk of the portfolio with NPLs of ~3.7% and NCOs of ~$3.7MM in 2Q26, which was fully reserved.
No meaningful exposure to any major metropolitan areas other than Boston, which represents ~17% of the portfolio, roughly half of which would be considered CBD (Commercial Business District) or CBD adjacent.
Majority of portfolio (~54%) is Class B Office space.
Weighted Average Loan-to-Value is ~55%.
Weighted Average Debt Service Coverage is ~1.5x.
($ in millions)
2Q26 P
$
ortfolio
Avg Size
Criticized
$
Non-Accrual
$
Class A
$ 458.0
$ 6.8
$ 71.4
$ 4.9
Top 20 loans are ~38% of the total CRE Office portfolio
2Q26 1Q26
($ in millions)
$
%
$
%
Class B | $ 626.2 | $ 1.7 | $ 125.8 | $ 36.9 | CRE Office: Construction | $ 30.4 | 3% | $ 43.0 | 4% | |
Class C | $ 84.6 | $ 2.2 | $ 1.0 | $ 0.9 | CRE Office: Owner Occupied | $ 103.4 | 9% | $ 108.3 | 9% | |
$ 1,168.8 | $ 2.5 | $ 198.3 | $ 42.7 | CRE Office: Non-Owner Occupied | $1,035.0 | 88% | $1,006.1 | 87% | ||
Total CRE Office | $1,168.8 | 100% | $1,157.5 | 100% |
excludes Construction
2Q26
Rate Type
Maturity / Repricing
Fixed to
Floating, 21%
Fixed,
32%
Floating,
21%
Fixed via
Swap, 26%
2026,
9%
2027,
17%
2029 &
After, 54%
2028,
20%
$2.9B of the $7.3B portfolio will mature or reprice within 24 months.
Well balanced maturity / repricing profile and rate type profile.
3Q 2026 maturities or reprices represents $411MM of maturities, and $80MM in repricing; of which
~4% are Criticized due to one Office credit. The allowance for this loan is based upon current market valuations.
Securities Portfolio2Q26
$ in millions | Current Par | Book Value | Fair Value | Unreal. G/L | Book Yield | Duration |
U.S. Treasuries | $ 375 | $ 374 | $ 359 | $ (15) | 2.75% | 2.3 |
Agency Debentures | 196 | 199 | 186 | (13) | 2.67% | 2.9 |
Corp Bonds | 26 | 25 | 25 | 1 | 6.69% | 0.8 |
Agency MBS | 356 | 323 | 310 | (12) | 3.83% | 5.3 |
Agency CMO | 750 | 667 | 653 | (14) | 4.37% | 5.3 |
Municipals/Other | 245 | 221 | 228 | 7 | 5.41% | 6.2 |
Total | $ 1,948 | $ 1,809 | $ 1,761 | $ (47) | 3.91% | 4.5 |
Municipals
13%
UST
20%
CMO
37%
Agency
11%
Corp 1%
MBS
18%
Highly liquid, risk averse securities portfolio with prudent duration and minimal extension risk. The entire investment portfolio is classified as Available for Sale.
The after tax, mark to market on the portfolio is included in Accumulated Other Comprehensive Income in Stockholders' Equity.
Interest Rate Risk2Q26
Cumulative Net Interest Income Change by Quarter
6/30/2026 Flat Balance Sheet, simulations reflect a product weighted beta of ~60% on total interest bearing deposits.
Excludes impact of purchase accounting.
1.59%
Loan Originations, $850 million, 6.31% coupon
Adj.
13%
Fixed
13%
Float
(<3m) 74%
0.89%
1.08%
1.29%
1.12%
1.37%
0.62%
0.14%
0.10%
-0.13%
-0.42%
Total Loan Portfolio Mix - Duration 1.5
2Q26
-0.79%
Fixed
35%
Float
(<3m) 41%
Adj.
24%
3Q26 4Q26 1Q27
-100bps Ramp
Forward-Implied Rates +200bps RampAccretion related to loan purchase accounting is held constant in each scenario. The impact of changes in loan prepayments on accretion is not reflected at this time.
Amounts as presented may differ slightly from the Company's Earnings Release due to rounding to foot schedules presented.
Wealth Management$ in Millions
Assets Under Management
$3,413
$3,352
$3,347
$3,338
3Q 2025 4Q 2025 1Q 2026 2Q 2026
Linked Quarter (LQ)
$ thousands | 2Q26 | 1Q26 | Δ | %Δ |
Asset based revenue Other revenue: | $ 4,177 | $ 4,061 | $ 116 | 3% |
Insurance commission revenue | 416 | 344 | 72 | 21% |
Total reported revenue | $ 4,593 | $ 4,405 | 188 | 4% |
NYSE: BBT
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