Press Releases July 29, 2026 04:05 PM

Beacon Financial Corporation Announces Second Quarter Results

Beacon Financial reports strong Q2 2026 results with significant net income growth and sustained dividend

By Caleb Monroe
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Beacon Financial Corporation announced robust second quarter 2026 earnings with net income rising to $64.4 million and EPS of $0.77, driven by improved operating momentum, merger integration progress, and disciplined execution. Total assets and deposits increased, net interest margin expanded, and expenses were reduced while maintaining credit discipline. The company declared a quarterly dividend of $0.3225 per share.

Beacon Financial Corporation Announces Second Quarter Results
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Key Points

  • Net income increased significantly to $64.4 million in Q2 2026 from $22.0 million in Q2 2025, reflecting strong earnings growth post-merger.
  • Total assets reached $22.3 billion and deposits increased by $193.6 million quarter-over-quarter, driven by the merger with Brookline Bancorp.
  • Net interest margin expanded to 3.81%, and non-interest expenses decreased, enhancing operational efficiency.
  • Sectors impacted include financial services, regional banking, commercial real estate financing, and consumer lending markets.

Net Income of $64.4 million, EPS of $0.77

Quarterly Dividend of $0.3225

BOSTON, July 29, 2026 (GLOBE NEWSWIRE) -- Beacon Financial Corporation (NYSE: BBT) (the “Company”) today announced net income of $64.4 million, or $0.77 per basic and diluted share, for the second quarter of 2026, compared to $46.2 million, or $0.55 per basic and diluted share, for the first quarter of 2026, and $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025.

“Our results this quarter demonstrate improved operating momentum, disciplined execution, and continued progress following our merger integration,” said Paul Perrault, the Company’s President and Chief Executive Officer.

“We grew total assets, deposits and non-interest income modestly, expanded the net interest margin, and reduced expenses, while maintaining our focus on credit discipline and long-term value creation for our stockholders. While competition is intense and the external environment remains unsettled, we are well positioned to build on this progress in the quarters ahead.”

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 the period ended June 30, 2025 reflect Brookline’s results only on a standalone basis. As a result, the Company’s financial results for the second quarter of 2026 may not be directly comparable to prior reported periods.

BALANCE SHEET

Total assets increased $23.3 million during the quarter to $22.3 billion at June 30, 2026. Total assets increased $10.7 billion from June 30, 2025, primarily due to the assets assumed in the Merger.

Total loans and leases decreased $101.9 million to $17.8 billion at June 30, 2026 from March 31, 2026, primarily due to a decline in commercial real estate and equipment financing loans, partially offset by an increase in commercial and consumer loans, and increased $8.2 billion from June 30, 2025, primarily due to the loans and leases assumed in the Merger.

Total investment securities at June 30, 2026 increased $42.6 million to $1.8 billion from March 31, 2026, and increased $894.6 million from June 30, 2025, primarily due to investment securities assumed in the Merger.

Total cash and cash equivalents at June 30, 2026 increased $103.2 million to $1.2 billion from March 31, 2026, and increased $709.4 million from June 30, 2025, primarily due to cash and equivalents assumed in the Merger.

Total deposits as of June 30, 2026 increased $193.6 million from March 31, 2026, consisting of a $92.8 million increase in customer deposits and a $102.5 million increase in brokered deposits while payroll deposits remained flat. Total deposits increased $9.5 billion from June 30, 2025, primarily due to the deposits assumed in the Merger.

Total borrowed funds at June 30, 2026 decreased $183.9 million from March 31, 2026, and decreased $266.5 million from June 30, 2025.

The ratio of stockholders’ equity to total assets was 11.41 percent at June 30, 2026, compared to 11.27 percent at March 31, 2026, and 10.84 percent at June 30, 2025. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.25 percent at June 30, 2026, compared to 9.07 percent at March 31, 2026, and 8.82 percent at June 30, 2025. Tangible book value per common share (non-GAAP) increased $0.50 from $23.48 at March 31, 2026 to $23.98 at June 30, 2026, and increased $12.78 from $11.20 at June 30, 2025.

NET INTEREST INCOME

Net interest income increased $2.4 million to $193.2 million during the second quarter of 2026 from $190.8 million for the quarter ended March 31, 2026. The net interest margin increased 3 basis points to 3.81 percent for the three months ended June 30, 2026 from 3.78 percent for the three months ended March 31, 2026, primarily driven by a higher yield on loans and leases and lower funding costs offset by lower interest income as a result of a decline in average loan balances.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2026 increased $2.0 million to $26.0 million from $23.9 million for the quarter ended March 31, 2026. The increase was primarily driven by increases of $1.2 million in gain on sales of loans and leases, $0.6 million in loan level derivative income, net, and $0.4 million in wealth management fees, partially offset by a $0.6 million decline in bank-owned life insurance (BOLI) income.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $5.0 million for the quarter ended June 30, 2026, compared to $7.9 million for the quarter ended March 31, 2026. The decline in provision quarter over quarter was largely driven by a lower level of outstanding loans and minimal credit deterioration compared to the prior quarter.

Total net charge-offs for the second quarter of 2026 were $14.3 million compared to $13.6 million in the first quarter of 2026. 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. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 32 basis points for the second quarter of 2026 from 30 basis points for the first quarter of 2026.

The allowance for loan and lease losses represented 1.34 percent of total loans and leases at June 30, 2026, compared to 1.36 percent at March 31, 2026, and 1.32 percent at June 30, 2025.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.86 percent at June 30, 2026, an increase of 0.03 percent from 0.83 percent at March 31, 2026. Total nonaccrual loans and leases increased $4.0 million to $152.7 million at June 30, 2026, from $148.6 million at March 31, 2026. The ratio of nonperforming assets to total assets was 0.70 percent at June 30, 2026, an increase from 0.68 percent at March 31, 2026. Total nonperforming assets increased $3.9 million to $155.2 million at June 30, 2026 from $151.2 million at March 31, 2026. The increase in nonperforming assets was largely driven by higher nonaccruals at Eastern Funding.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2026 decreased $13.6 million to $127.3 million from $140.8 million for the quarter ended March 31, 2026, of which included $13.0 million related to merger and restructuring expenses which were completed in the first quarter of 2026. The remaining $0.6 million decrease was primarily driven by decreases of $1.8 million in equipment and data processing expense driven by system consolidation, $1.3 million in occupancy expense, and $1.0 million in FDIC insurance expense, partially offset by an increase of $3.2 million in other non-interest expense primarily due to an increase of $1.1 million in loan workout expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 26.0 percent and 27.7 percent for the three and six months ended June 30, 2026 compared to 29.9 percent for the three months ended March 31, 2026 and 25.6 percent and 25.3 percent for the three and six months ended June 30, 2025.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.17 percent during the second quarter of 2026 from 0.84 percent for the first quarter of 2026.

The annualized return on average stockholders' equity increased to 10.15 percent during the second quarter of 2026 from 7.32 percent for the first quarter of 2026. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 12.84 percent for the second quarter of 2026 from 9.30 percent for the first quarter of 2026.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.3225 per share for the quarter ended June 30, 2026. The dividend will be paid on August 28, 2026 to stockholders of record on August 14, 2026.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 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/795588966. 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 $22.3 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
Beacon Financial Corporation
Chief Financial and Strategy Officer
(617) 425-5331
[email protected]  

MEDIA CONTACT: 

Contact:Gary Levante
Beacon Financial Corporation
Chief Marketing Officer
(413) 447-1737
[email protected]  


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
   At and for the Three Months Ended
 June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

 (Dollars In Thousands Except per Share Data)     Earnings Data:          Net interest income$193,207 $190,774 $199,741 $128,850 $88,685 Provision for credit losses on loans and unfunded commitments5,007 7,899 8,141 20,268 6,997 Provision (recovery) of credit losses on investments(85)47 (35)32 3 Non-interest income25,988 23,947 25,918 12,345 5,970 Non-interest expense127,256 140,822 142,366 129,296 58,061 Income (loss) before provision for income taxes87,017 65,953 75,187 (8,401)29,594 Net income (loss)64,426 46,217 53,366 (4,221)22,026            Performance Ratios:          Net interest margin (1)3.81%3.78%3.82%3.62%3.32%Interest-rate spread (1)3.13%3.02%3.15%2.94%2.57%Return on average assets (annualized)1.17%0.84%0.94%(0.11)%0.77%Return on average tangible assets (annualized) (non-GAAP)1.20%0.86%0.97%(0.11)%0.79%Return on average stockholders' equity (annualized)10.15%7.32%8.70%(1.01)%7.04%Return on average tangible stockholders' equity (annualized) (non-GAAP)12.84%9.30%11.19%(1.27)%8.85%Efficiency ratio (2)58.06%65.58%63.09%91.57%61.34%Core efficiency ratio (3)54.26%55.64%52.81%56.55%59.36%           Per Common Share Data:          Net income (loss) — Basic$0.77 $0.55 $0.64 $(0.05)$0.25 Net income (loss) — Diluted0.77 0.55 0.64 (0.05)0.25 Cash dividends declared0.3225 0.3225 0.3225 0.3225 0.135 Book value per share (end of period)30.30 29.88 29.78 29.33 14.08 Tangible book value per share (end of period) (non-GAAP)23.98 23.48 23.32 22.75 11.20 Stock price (end of period)30.45 30.00 26.37 23.71 10.55            Balance Sheet:          Total assets$22,250,964 $22,227,616 $23,220,372 $22,867,458 $11,568,745 Total loans and leases17,822,218 17,924,156 18,029,552 18,305,379 9,582,374 Total deposits18,485,864 18,292,280 19,514,657 18,904,063 8,961,202 Total stockholders’ equity2,539,796 2,504,781 2,496,061 2,461,015 1,254,171            Asset Quality:          Nonperforming assets$155,155 $151,239 $116,747 $101,990 $63,596 Nonperforming assets as a percentage of total assets0.70%0.68%0.50%0.45%0.55%Allowance for loan and lease losses$238,189 $244,377 $252,839 $253,735 $126,725 Allowance for loan and lease losses as a percentage of total loans and leases1.34%1.36%1.40%1.39%1.32%Net loan and lease charge-offs (4)14,280 $13,551 $9,019 $15,857 $5,127 Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.32%0.30%0.20%0.51%0.21%           Capital Ratios:          Stockholders’ equity to total assets11.41%11.27%10.75%10.76%10.84%Tangible stockholders’ equity to tangible assets (non-GAAP)9.25%9.07%8.62%8.56%8.82%           (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) Core efficiency ratio excludes amortization of identified intangible assets.
     (4) The balance at September 30, 2025 excludes a $15.8 million Merger Day 1 charge-offs write up.
                


BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited)       June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
ASSETS(In Thousands Except Share Data)Cash and due from banks$240,680 $185,692 $201,557 $182,251 $87,386 Short-term investments 975,423  927,256  1,840,188  1,038,369  419,362 Total cash and cash equivalents 1,216,103  1,112,948  2,041,745  1,220,620  506,748 Investment securities available-for-sale 1,761,297  1,718,710  1,688,768  1,739,423  866,684 Total investment securities 1,761,297  1,718,710  1,688,768  1,739,423  866,684 Allowance for investment security losses (56) (141) (94) (129) (97)Net investment securities 1,761,241  1,718,569  1,688,674  1,739,294  866,587 Loans and leases held-for-sale —  —  —  83,330  — Loans and leases:     Commercial real estate loans 9,884,139  9,957,408  10,012,094  10,247,090  5,485,546 Commercial loans and leases 3,981,803  4,011,974  3,947,363  3,950,693  2,520,347 Consumer loans 3,956,276  3,954,774  4,070,095  4,107,596  1,576,481 Total loans and leases 17,822,218  17,924,156  18,029,552  18,305,379  9,582,374 Allowance for loan and lease losses (238,189) (244,377) (252,839) (253,735) (126,725)Net loans and leases 17,584,029  17,679,779  17,776,713  18,051,644  9,455,649 Restricted equity securities 90,660  97,441  87,438  99,431  66,481 Premises and equipment, net of accumulated depreciation 161,175  161,141  162,474  158,375  83,963 Right-of-use asset operating leases 82,909  84,851  82,817  84,238  42,415 Deferred tax asset 138,466  142,827  149,487  178,456  52,325 Goodwill 357,358  355,269  351,613  353,471  241,222 Identified intangible assets, net of accumulated amortization 172,906  181,234  189,562  198,339  14,600 Other real estate owned and repossessed assets 2,505  2,623  2,591  3,360  1,288 Cash surrender value of bank-owned life insurance policies 335,523  336,980  334,442  332,840  85,479 Other assets 348,089  353,954  352,816  364,060  151,988 Total assets$22,250,964 $22,227,616 $23,220,372 $22,867,458 $11,568,745 LIABILITIES AND STOCKHOLDERS' EQUITY     Deposits:     Demand checking accounts$3,910,604 $3,861,000 $4,032,529 $3,905,559 $1,726,933 Interest-bearing deposits:     NOW accounts 1,569,862  1,520,600  1,445,894  1,470,808  650,707 Savings accounts 3,035,355  3,088,857  2,954,029  2,904,888  1,795,761 Money market accounts 4,461,990  4,393,607  4,636,548  4,545,231  2,153,709 Payroll deposit accounts 1,212,178  1,213,861  1,878,758  1,044,462  — Certificate of deposit accounts 4,064,518  4,085,511  4,156,540  4,127,226  1,877,661 Brokered deposit accounts 231,357  128,844  410,359  905,889  756,431 Total interest-bearing deposits 14,575,260  14,431,280  15,482,128  14,998,504  7,234,269 Total deposits 18,485,864  18,292,280  19,514,657  18,904,063  8,961,202 Borrowed funds:     Advances from the FHLB 633,292  822,091  555,788  841,044  934,669 Subordinated debentures and notes 202,278  198,989  198,572  198,283  84,397 Other borrowed funds 53,022  51,423  34,000  41,189  135,985 Total borrowed funds 888,592  1,072,503  788,360  1,080,516  1,155,051 Operating lease liabilities 90,936  92,820  90,713  92,211  43,528 Reserve for unfunded credits 13,470  16,555  13,746  13,727  4,586 Accrued expenses and other liabilities 232,306  248,677  316,835  315,926  150,207 Total liabilities 19,711,168  19,722,835  20,724,311  20,406,443  10,314,574 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, 89,576,403 shares issued, and 96,998,075 shares issued, respectively 896  896  896  896  970 Additional paid-in capital 2,164,080  2,172,982  2,171,885  2,171,912  904,697 Retained earnings 542,304  504,976  485,862  459,598  475,781 Accumulated other comprehensive income (34,929) (31,411) (20,002) (28,905) (39,378)Treasury stock, at cost;     5,211,670, 5,548,772, 5,545,511, 5,449,039, and 7,039,136 shares, respectively (132,555) (142,662) (142,580) (142,486) (87,899)Total stockholders' equity 2,539,796  2,504,781  2,496,061  2,461,015  1,254,171 Total liabilities and stockholders' equity$22,250,964 $22,227,616 $23,220,372 $22,867,458 $11,568,745       


BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
 (In Thousands Except Share Data)Interest and dividend income:     Loans and leases$265,596 $266,935$285,795 $194,517 $143,933 Debt securities 18,370  16,510 16,335  10,984  6,691 Restricted equity securities 1,506  843 1,160  1,466  1,062 Short-term investments 8,162  8,096 9,293  5,438  2,386 Total interest and dividend income 293,634  292,384 312,583  212,405  154,072 Interest expense:     Deposits 88,959  93,056 102,439  71,901  52,682 Borrowed funds 11,468  8,554 10,403  11,654  12,705 Total interest expense 100,427  101,610 112,842  83,555  65,387 Net interest income 193,207  190,774 199,741  128,850  88,685 Provision for credit losses on loans 5,007  7,899 8,141  20,268  6,997 Provision (recovery) of credit losses on investments (85) 47 (35) 32  3 Net interest income after provision for credit losses 188,285  182,828 191,635  108,550  81,685 Non-interest income:     Deposit fees 8,510  8,347 9,843  5,005  2,472 Loan fees 2,619  2,366 2,189  1,004  472 Loan level derivative income (loss) 1,391  775 721  635  (4)Gain on sales of loans and leases held-for-sale 3,869  2,689 4,154  1,175  264 Wealth management fees 4,860  4,464 4,370  2,466  1,421 Other 4,739  5,306 4,641  2,060  1,345 Total non-interest income 25,988  23,947 25,918  12,345  5,970 Non-interest expense:     Compensation and employee benefits 70,280  69,650 70,204  49,999  35,147 Occupancy 11,791  13,097 11,877  6,921  5,349 Equipment and data processing 18,300  20,127 19,754  11,110  6,841 Professional services 2,769  2,462 2,778  2,114  1,471 FDIC insurance 3,332  4,320 1,924  1,971  1,880 Advertising and marketing 1,152  1,679 2,157  1,583  1,371 Amortization of identified intangible assets 8,328  8,328 8,777  3,587  1,431 Other 11,304  8,134 10,471  6,148  4,132 Total non-interest operating expense 127,256  127,797 127,942  83,433  57,622 Merger and restructuring expense —  13,025 14,424  45,863  439 Total non-interest expense 127,256  140,822 142,366  129,296  58,061 Income (loss) before provision for income taxes 87,017  65,953 75,187  (8,401) 29,594 Provision (benefit) for income taxes 22,591  19,736 21,821  (4,180) 7,568 Net Income (loss)$64,426 $46,217$53,366 $(4,221)$22,026 Earnings per common share:     Basic$0.77 $0.55$0.64 $(0.05)$0.25 Diluted$0.77 $0.55$0.64 $(0.05)$0.25 Weighted average common shares outstanding during the period:    Basic 83,816,086  83,816,086 83,851,381  87,508,517  89,104,605 Diluted 83,939,430  83,903,440 83,878,047  87,832,552  89,612,781 Dividends paid per common share$0.3225 $0.3225$0.3225 $0.3225 $0.135       


BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Statements of Income (Unaudited)   Six Months Ended June 30, 2026
2025
 (In Thousands Except Share Data)Interest and dividend income:  Loans and leases$532,531 $287,242Debt securities 34,880  13,456Restricted equity securities 2,349  2,265Short-term investments 16,258  4,837Total interest and dividend income 586,018  307,800Interest expense:  Deposits 182,015  106,160Borrowed funds 20,022  27,125Total interest expense 202,037  133,285Net interest income 383,981  174,515Provision for credit losses on loans 12,906  12,971Provision (recovery) of credit losses on investments (38) 15Net interest income after provision for credit losses 371,113  161,529Non-interest income:  Deposit fees 16,857  4,833Loan fees 4,985  865Loan level derivative income (loss) 2,166  66Gain on sales of loans and leases held-for-sale 6,558  288Wealth management fees 9,324  2,911Other 10,045  2,667Total non-interest income 49,935  11,630Non-interest expense:  Compensation and employee benefits 139,930  71,000Occupancy 24,888  11,070Equipment and data processing 38,427  13,853Professional services 5,231  3,197FDIC insurance 7,652  3,917Advertising and marketing 2,831  2,239Amortization of identified intangible assets 16,656  2,861Other 19,438  8,536Total non-interest operating expense 255,053  116,673Merger and restructuring expense 13,025  1,410Total non-interest expense 268,078  118,083Income before provision for income taxes 152,970  55,076Provision for income taxes 42,327  13,950Net income$110,643 $41,126Earnings per common share:  Basic$1.32 $0.46Diluted$1.32 $0.46Weighted average common shares outstanding during the period: Basic 83,816,086  89,104,060Diluted 83,921,432  89,590,267Dividends paid per common share$0.6450 $0.270   


BEACON FINANCIAL CORPORATION AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
 (Dollars in Thousands)NONPERFORMING ASSETS:     Loans and leases accounted for on a nonaccrual basis:     Commercial real estate mortgage$67,645 $65,127 $41,246 $30,213 $987 Multi-family mortgage 9,484  12,995  4,065  2,994  1,433 Construction —  —  —  535  — Total commercial real estate loans 77,129  78,122  45,311  33,742  2,420       Commercial 20,873  22,626  16,716  14,035  8,687 Equipment financing 45,493  38,633  42,718  41,793  46,067 Total commercial loans and leases 66,366  61,259  59,434  55,828  54,754       Residential mortgage 5,991  5,807  6,465  6,597  3,572 Home equity 3,041  3,222  2,739  2,220  1,561 Other consumer 123  206  207  243  1 Total consumer loans 9,155  9,235  9,411  9,060  5,134       Total nonaccrual loans and leases 152,650  148,616  114,156  98,630  62,308       Other real estate owned 70  —  —  824  700 Other repossessed assets 2,435  2,623  2,591  2,536  588 Total nonperforming assets$155,155 $151,239 $116,747 $101,990 $63,596       Loans and leases past due greater than 90 days and still accruing$7,785 $5,834 $37,823 $23,570 $24,899       Nonperforming loans and leases as a percentage of total loans and leases 0.86% 0.83% 0.63% 0.54% 0.65%Nonperforming assets as a percentage of total assets 0.70% 0.68% 0.50% 0.45% 0.55%      PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   Allowance for loan and lease losses at beginning of period$244,377 $252,839 $253,735 $126,725 $124,145 Merger Day 1 allowance on non-PCD loans* —  —  —  67,229  — Merger Day 1 allowance on PCD loans —  —  —  64,511  — Charge-offs (15,353) (15,880) (10,917) (16,661) (5,601)Recoveries 1,073  2,329  1,898  804  474 Net charge-offs** (14,280) (13,551) (9,019) (15,857) (5,127)Provision for loan and lease losses excluding unfunded commitments*** 8,092  5,089  8,123  11,127  7,707 Allowance for loan and lease losses at end of period$238,189 $244,377 $252,839 $253,735 $126,725       Allowance for loan and lease losses as a percentage of total loans and leases 1.34% 1.36% 1.40% 1.39% 1.32%      NET CHARGE-OFFS:     Commercial real estate loans$7,416 $6,997 $6,598 $819 $3,524 Commercial loans and leases 6,897  6,611  2,799  15,116  1,640 Consumer loans (33) (57) (378) (78) (37)Total net charge-offs**$14,280 $13,551 $9,019 $15,857 $5,127       Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.32% 0.30% 0.20% 0.51% 0.21%      *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 $(3.1 million), $2.8 million, $(0.0 million), $9.1 million of which $8.4 million was related to Merger Day 1, and $(0.7 million) for credit losses on unfunded commitments during the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.           



BEACON FINANCIAL CORPORATION. AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended June 30, 2026March 31, 2026June 30, 2025 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost (Dollars in Thousands)Assets:         Interest-earning assets:         Investments:         Debt securities (2)$1,750,455$19,0134.35%$1,684,382$17,1534.07%$874,212$6,7523.09%Restricted equity securities (2) 95,840 1,5076.29% 84,281 8454.01% 65,724 1,0626.46%Short-term investments 860,874 8,1623.79% 879,562 8,0963.68% 215,982 2,3864.42%Total investments 2,707,169 28,6824.24% 2,648,225 26,0943.94% 1,155,918 10,2003.53%Loans and Leases:         Commercial real estate loans (3) 9,865,901 142,4535.71% 9,974,029 143,1625.74% 5,533,208 77,1365.51%Commercial loans (3) 2,952,686 46,0386.17% 2,877,031 44,6466.21% 1,286,908 20,7576.38%Equipment financing (3) 1,052,189 21,6758.24% 1,117,336 23,5458.43% 1,240,128 25,0698.09%Consumer loans (3) 3,935,888 56,3995.73% 4,006,808 56,5615.66% 1,556,254 21,4375.51%Total loans and leases 17,806,664 266,5655.99% 17,975,204 267,9145.96% 9,616,498 144,3996.01%Total interest-earning assets 20,513,833 295,2475.76% 20,623,429 294,0085.70% 10,772,416 154,5995.74%Non-interest-earning assets 1,526,851   1,512,428   630,518  Total assets$22,040,684  $22,135,857  $11,402,934            Liabilities and Stockholders' Equity:         Interest-bearing liabilities:         Deposits:         NOW accounts$1,535,148 3,6220.95%$1,494,773 3,5260.96%$637,786 1,0340.65%Savings accounts 3,057,585 14,0451.84% 3,032,997 13,6121.82% 1,780,838 10,6922.41%Money market accounts 5,523,884 34,8152.53% 5,709,490 35,9692.55% 2,189,373 13,9902.56%Certificates of deposit 4,051,332 34,8623.45% 4,136,313 36,8703.62% 1,879,749 18,4373.93%Brokered deposit accounts 174,146 1,6153.72% 307,179 3,0794.06% 748,205 8,5294.57%Total interest-bearing deposits 14,342,095 88,9592.49% 14,680,752 93,0562.57% 7,235,951 52,6822.92%Borrowings         Advances from the FHLB 742,763 7,1693.82% 476,434 4,6783.93% 904,399 10,4224.56%Subordinated debentures and notes 199,243 3,6937.41% 198,755 3,5887.22% 84,380 1,7188.14%Other borrowed funds 54,565 6064.46% 26,974 2884.33% 46,086 5654.93%Total borrowings 996,571 11,4684.55% 702,163 8,5544.87% 1,034,865 12,7054.86%Total interest-bearing liabilities 15,338,666 100,4272.63% 15,382,915 101,6102.68% 8,270,816 65,3873.17%Non-interest-bearing liabilities:         Demand checking accounts 3,813,559   3,866,588   1,654,594  Other non-interest-bearing liabilities 348,856   362,368   225,469  Total liabilities 19,501,081   19,611,871   10,150,879  Stockholders’ equity 2,539,603   2,523,986   1,252,055  Total liabilities and equity$22,040,684  $22,135,857  $11,402,934  Net interest income (tax-equivalent basis) /Interest-rate spread (4)  194,8203.13%  192,3983.02%  89,2122.57%Less adjustment of tax-exempt income  1,613   1,624   527 Net interest income $193,207  $190,774  $88,685 Net interest margin (5)  3.81%  3.78%  3.32%          (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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Six Months Ended June 30, 2026June 30, 2025 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost (Dollars in Thousands)Assets:      Interest-earning assets:      Investments:      Debt securities (2)$1,717,601$36,1664.21%$881,522$13,5663.08%Restricted equity securities (2) 90,092 2,3525.22% 67,743 2,2666.69%Short-term investments 843,590 16,2583.85% 209,503 4,8374.62%Total investments 2,651,283 54,7764.13% 1,158,768 20,6693.57%Loans and Leases:      Commercial real estate loans (3) 9,919,667 285,5125.72% 5,591,973 154,3795.49%Commercial loans (3) 2,915,067 90,6846.19% 1,262,130 40,4556.38%Equipment financing (3) 1,084,583 45,2208.34% 1,260,663 51,0348.10%Consumer loans (3) 3,971,151 113,0635.70% 1,552,633 42,2985.46%Total loans and leases 17,890,468 534,4795.98% 9,667,399 288,1665.96%Total interest-earning assets 20,541,751 589,2555.74% 10,826,167 308,8355.71%Non-interest-earning assets 1,546,257   646,577  Total assets$22,088,008  $11,472,744         Liabilities and Stockholders' Equity:      Interest-bearing liabilities:      Deposits:      NOW accounts$1,515,072 7,1520.95%$633,092 2,0390.65%Savings accounts 3,045,359 27,6571.83% 1,762,366 20,8652.39%Money market accounts 5,616,174 70,7802.54% 2,188,482 27,5772.54%Certificates of deposit 4,093,588 71,7323.53% 1,883,049 38,0304.07%Brokered deposit accounts 240,295 4,6943.94% 757,687 17,6494.70%Total interest-bearing deposits 14,510,488 182,0152.53% 7,224,676 106,1602.96%Borrowings      Advances from the FHLB 610,334 11,8473.86% 955,669 22,2694.63%Subordinated debentures and notes 199,001 7,2817.32% 84,363 3,4198.11%Other borrowed funds 40,846 8944.41% 58,704 1,4374.94%Total borrowings 850,181 20,0224.68% 1,098,736 27,1254.91%Total interest-bearing liabilities 15,360,669 202,0372.65% 8,323,412 133,2853.23%Non-interest-bearing liabilities:      Demand checking accounts 3,839,927   1,667,489  Other non-interest-bearing liabilities 355,574   238,169  Total liabilities 19,556,170   10,229,070  Stockholders’ equity 2,531,838   1,243,674  Total liabilities and equity$22,088,008  $11,472,744  Net interest income (tax-equivalent basis) /Interest-rate spread (4)  387,2183.09%  175,5502.48%Less adjustment of tax-exempt income  3,237   1,035 Net interest income $383,981  $174,515 Net interest margin (5)  3.80%  3.27%       (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 SUBSIDIARIESNon-GAAP Financial Information (Unaudited)  Three Months Ended June 30,Six Months Ended June 30,   2026  2025  2026  2025 Reconciliation Table - Non-GAAP Financial Information        Reported Pretax Income$87,017 $29,594 $152,970 $55,076 Add:     Merger and restructuring expense —  439  13,025  1,410 Operating Pretax income $87,017 $30,033 $165,995 $56,486 Effective tax rate  26.0% 25.3% 25.8% 24.8%Provision for income taxes  22,591  7,590  42,827  14,008 Operating earnings after tax$64,426 $22,443 $123,168 $42,478       Operating earnings per common share:     Basic $0.77 $0.25 $1.47 $0.48 Diluted $0.77 $0.25 $1.47 $0.47       Weighted average common shares outstanding during the period:    Basic  83,816,086  89,104,605  83,816,086  89,104,060 Diluted  83,939,430  89,612,781  83,921,432  89,590,267       Return on average assets * 1.17% 0.77% 1.00% 0.72%Add:     Merger and restructuring expense (after-tax) * —% 0.01% 0.09% 0.02%Operating return on average assets * 1.17% 0.78% 1.09% 0.74%      Return on average tangible assets * 1.20% 0.79% 1.03% 0.73%Add:     Merger and restructuring expense (after-tax) * —% 0.01% 0.09% 0.02%Operating return on average tangible assets * 1.20% 0.80% 1.12% 0.75%            Return on average stockholders' equity * 10.15% 7.04% 8.74% 6.61%Add:     Merger and restructuring expense (after-tax) * —% 0.10% 0.76% 0.17%Operating return on average stockholders' equity * 10.15% 7.14% 9.50% 6.78%            Return on average tangible stockholders' equity * 12.84% 8.85% 11.08% 8.34%Add:     Merger and restructuring expense (after-tax) * —% 0.13% 0.97% 0.21%Operating return on average tangible stockholders' equity * 12.84% 8.98% 12.05% 8.55%      * Ratios at and for the three months and six months ended are annualized.          At and for the Three Months Ended June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
 (Dollars in Thousands)      Net income (loss), as reported$64,426 $46,217 $53,366 $(4,221)$22,026       Average total assets$22,040,684 $22,135,857 $22,644,481 $15,210,080 $11,402,934 Less: Average goodwill and average identified intangible assets, net 532,255  536,900  546,276  353,189  256,508 Average tangible assets$21,508,429 $21,598,957 $22,098,205 $14,856,891 $11,146,426       Return on average tangible assets (annualized) 1.20 % 0.86 % 0.97 % (0.11)% 0.79 %      Average total stockholders’ equity$2,539,603 $2,523,986 $2,453,480 $1,678,208 $1,252,055 Less: Average goodwill and average identified intangible assets, net 532,255  536,900  546,276  353,189  256,508 Average tangible stockholders’ equity$2,007,348 $1,987,086 $1,907,204 $1,325,019 $995,547       Return on average tangible stockholders’ equity (annualized) 12.84 % 9.30 % 11.19 % (1.27)% 8.85 %      Total stockholders’ equity$2,539,796 $2,504,781 $2,496,061  2,461,015  1,254,171 Less:     Goodwill 357,358  355,269  351,613  353,471  241,222 Identified intangible assets, net 172,906  181,234  189,562  198,339  14,600 Tangible stockholders' equity$2,009,532 $1,968,278 $1,954,886 $1,909,205 $998,349       Total assets$22,250,964 $22,227,616 $23,220,372 $22,867,458 $11,568,745 Less:     Goodwill 357,358  355,269  351,613  353,471  241,222 Identified intangible assets, net 172,906  181,234  189,562  198,339  14,600 Tangible assets$21,720,700 $21,691,113 $22,679,197 $22,315,648 $11,312,923       Tangible stockholders’ equity to tangible assets 9.25 % 9.07 % 8.62 % 8.56 % 8.82 %      Tangible stockholders' equity$2,009,532 $1,968,278 $1,954,886 $1,909,205 $998,349       Number of common shares issued 89,576,403  89,576,403  89,576,403  89,576,403  96,998,075 Less:     Treasury shares 5,211,670  5,548,772  5,545,511  5,449,039  7,039,136 Unvested restricted shares 548,647  211,545  214,806  218,503  854,334 Number of common shares outstanding 83,816,086  83,816,086  83,816,086  83,908,861  89,104,605       Tangible book value per common share$ 23.98 $ 23.48 $ 23.32 $ 22.75 $ 11.20       Non-interest expense$127,256 $140,822 $142,366 $129,296 $58,061 Less:     Merger and restructuring expense —  13,025  14,424  45,863  439 Total non-interest operating expense$127,256 $127,797 $127,942 $83,433 $57,622 Less:     Amortization of identified intangible assets 8,328  8,328  8,777  3,587  1,431 Non-interest expense for operating efficiency ratio$118,928 $119,469 $119,165 $79,846 $56,191       Efficiency ratio 58.06% 65.58% 63.09% 91.57% 61.34%Core efficiency ratio 54.26% 55.64% 52.81% 56.55% 59.36%      

A PDF accompanying this announcement is available at:
http://ml.globenewswire.com/Resource/Download/b1336b6a-057e-4b7a-9e33-2e200eedffbf


Risks

  • Credit quality risks as net charge-offs increased slightly and nonperforming assets marginally increased, potentially impacting loan portfolio quality.
  • Competitive pressures and unsettled external economic environment could affect future earnings and growth.
  • Exposure to commercial real estate and equipment financing loans with some loan charge-offs indicates sector-specific credit risk vulnerabilities.

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