Beacon Financial Corporation Announces Third Quarter Results Reflecting One-Time Costs Associated with the Merger of Equals between Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc.
Net Loss of $(56.3) million, EPS of $(0.64)
Operating Earnings of $38.5 million, Operating EPS of $0.44
Quarterly Dividend of $0.3225
BOSTON, Oct. 29, 2025 /PRNewswire/ -- Beacon Financial Corporation (NYSE: BBT) (the "Company") today announced a net loss of $(56.3) million, or $(0.64) per basic share, for the third quarter of 2025, compared to net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, and $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024.
Effective September 1, 2025, Berkshire Hills Bancorp, Inc. ("Berkshire") and Brookline Bancorp, Inc. ("Brookline") completed the previously announced merger of equals transaction (the "Merger") to create Beacon Financial Corporation, a premier Northeast financial services company. "The completion of our merger of equals represents a significant milestone as we begin our journey as Beacon Financial Corporation," commented Paul Perrault, the Company's President and Chief Executive Officer. "The expanded scale of our organization provides a solid foundation for improved profitability, increased stockholder returns and sustained growth throughout the Northeast. Our dedicated teams are collaborating on integration efforts that are proceeding as expected and will culminate with our core system conversion and the rollout of the new Beacon Bank brand in early 2026."
Financial results for the third quarter of 2025 reflect pre-tax one-time costs of $129.8 million associated with the Merger. Excluding these one-time costs, operating earnings (non-GAAP) were $38.5 million, or $0.44 per diluted share, for the third quarter of 2025. These one-time costs consist of Merger-related expenses of $51.9 million and an increase to the provision of credit losses expense of $77.9 million, also associated with the Merger. Please refer to "Non-GAAP Financial Information" below for a reconciliation of net income to operating earnings.
DISCUSSION OF RESULTS
Presentation of Results - The Merger
The Merger was accounted for as a reverse acquisition using the acquisition method of accounting, with Berkshire treated as the legal acquirer and Brookline treated as the accounting acquirer for financial reporting purposes. The Company recorded the assets and liabilities of Berkshire at their respective fair value as of September 1, 2025. At the time of the Merger, Berkshire contributed, after fair value purchase accounting adjustments, approximately $12.1 billion in assets, $9.1 billion in loans, $1.1 billion in investment securities and $10.3 billion in deposits.
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 of this factor and the below listed adjustments related to the Merger, the Company's financial results for the third quarter of 2025 may not be directly comparable to prior reported periods. The following table outlines the value of the assets acquired and liabilities assumed as of September 1, 2025.
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In Thousands |
|
Fair value of consideration transferred: |
|
|
Value of hypothetical legacy Brookline shares transferred |
$ 1,209,451 |
|
Payment of seller transaction expenses |
6,022 |
|
Conversion of Company stock options |
1,147 |
|
Cash paid for fractional shares |
49 |
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Total purchase consideration |
1,216,669 |
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|
Fair value of assets acquired: |
|
|
Cash and due from banks |
105,440 |
|
Short-term investments |
978,667 |
|
Investment securities available-for-sale |
1,102,464 |
|
Loans held for sale |
3,471 |
|
Loans held for investment, net of allowance for credit losses |
9,078,979 |
|
Premises and equipment |
73,368 |
|
Bank owned life insurance |
246,979 |
|
Accrued interest receivable |
49,717 |
|
Core deposit intangible asset |
174,415 |
|
Customer relationships intangible asset |
14,000 |
|
Other assets |
314,956 |
|
Total assets acquired |
12,142,456 |
|
|
|
|
Fair value of liabilities assumed: |
|
|
Deposits |
10,287,573 |
|
Borrowings |
559,402 |
|
Accrued expenses and other liabilities |
191,060 |
|
Total liabilities assumed |
11,038,035 |
|
Net assets acquired |
1,104,421 |
|
Goodwill |
$ 112,248 |
BALANCE SHEET
Total assets at September 30, 2025 were $22.8 billion. Assets of $12.1 billion were assumed in the Merger. Excluding the impact of the Merger, total assets decreased $0.9 billion from $11.6 billion at June 30, 2025, and decreased $1.0 billion from September 30, 2024.
Total loans and leases were $18.2 billion at September 30, 2025. Loans and leases of $9.1 billion were assumed in the Merger. Excluding the impact of the Merger, loans and leases decreased $419.4 million from June 30, 2025, and decreased $592.3 million from September 30, 2024. The decrease was primarily driven by the sales of $249.3 million of purchased mortgage loans and the transfer of an additional $83.3 million of purchased mortgage loans to held-for-sale, the sale of which is expected to close in the fourth quarter, all of which were assumed as part of the Merger.
Total investment securities at September 30, 2025, excluding the impact of the Merger, decreased $229.7 million to $1.7 billion from June 30, 2025, and decreased $218.4 million from September 30, 2024. The Company assumed $1.1 billion of investment securities in the Merger. During the third quarter, the Company sold $176.4 million of the legacy Berkshire investment portfolio to align the interest rate risk for the combined balance sheet and reduce wholesale funding.
Total cash and cash equivalents at September 30, 2025 decreased $370.2 million to $1.2 billion from June 30, 2025, and decreased $271.4 million from September 30, 2024, excluding the impact of the Merger. The Company assumed $1.1 billion of cash and cash equivalents in connection with the Merger. As of September 30, 2025, total investment securities and total cash and cash equivalents represented 13.0 percent of total assets as compared to 11.9 percent and 10.8 percent as of June 30, 2025 and September 30, 2024, respectively.
Total deposits as of September 30, 2025, excluding the impact of the Merger, decreased $344.7 million from June 30, 2025. The Company assumed $10.3 billion of deposits in connection with the Merger. The legacy Berkshire deposits include $1.2 billion of payroll deposits and $397.6 million of brokered deposits. Excluding legacy Berkshire deposits, payroll deposits declined $185.4 million and brokered deposits declined $248.1 million, while customer deposits increased $88.8 million from June 30, 2025.
Since September 30, 2024, excluding the impact of the Merger, customer deposits have increased $376.8 million while brokered deposits and payroll deposits declined $307.2 million and $185.4 million, respectively.
Total borrowed funds at September 30, 2025, excluding the impact of the Merger, decreased $633.9 million from June 30, 2025 to $1.1 billion, and decreased $976.4 million from September 30, 2024. The Company assumed $559.4 million in borrowed funds in connection with the Merger
The ratio of stockholders' equity to total assets was 10.58 percent at September 30, 2025. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.37 percent at September 30, 2025. Tangible book value per common share (non-GAAP) was $22.20 at September 30, 2025.
INCOME STATEMENT
The following information for the three months ended September 30, 2025 includes one month of combined Company activity and two months of legacy Brookline standalone results. For the nine months ended September 30, 2025, the information includes one month of combined Company activity and eight months of legacy Brookline standalone results.
NET INTEREST INCOME
Net interest income increased $43.9 million to $132.6 million during the third quarter of 2025 from $88.7 million for the quarter ended June 30, 2025. The net interest margin increased 40 basis points to 3.72 percent for the three months ended September 30, 2025 from 3.32 percent for the three months ended June 30, 2025. The increase is primarily driven by higher yields for one month on the marked loan portfolio and lower funding costs driven by declines in borrowed funds.
NON-INTEREST INCOME
Total non-interest income for the quarter ended September 30, 2025 increased $6.3 million to $12.3 million from $6.0 million for the quarter ended June 30, 2025. The increase was primarily driven by the one month of combined Company activity which resulted in increases of $2.5 million in deposit fees, $1.0 million in wealth management fees, and $0.9 million in gain on sales of loans and leases from the Small Business Administration ("SBA") business line.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $87.5 million for the quarter ended September 30, 2025, compared to $7.0 million for the quarter ended June 30, 2025. The increase in provision reflects purchase accounting associated with the Merger of $77.9 million including $69.5 million on funded loans and $8.4 million on unfunded commitments. Excluding Merger related accounting adjustments, the provision was $9.6 million, $2.6 million higher than the prior quarter. This increase was reflective of continued stress in the Boston office sector and additional specific reserves on one large Eastern Funding equipment financing credit.
Total net charge-offs for the third quarter of 2025 were $15.9 million compared to $5.1 million in the second quarter of 2025.The $15.9 million in net charge-offs reflect the charge-off of previously reserved amounts of $5.0 million for a C&I credit in the Boston market and $5.7 million for two large Eastern Funding equipment financing credits, with the remaining charge-offs primarily associated with a larger number of smaller 44 Business Capital SBA loans and Eastern Funding equipment financing loans. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 51 basis points for the third quarter of 2025 from 21 basis points for the second quarter of 2025.
The allowance for loan and lease losses represented 1.39 percent of total loans and leases at September 30, 2025, compared to 1.32 percent at June 30, 2025, and 1.31 percent at September 30, 2024.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.54 percent at September 30, 2025, a decrease of 0.11 percent from 0.65 percent at June 30, 2025. Total nonaccrual loans and leases increased $36.3 million to $98.6 million at September 30, 2025, from $62.3 million at June 30, 2025. The increase included $23.9 million of nonaccrual loans assumed through the Merger. The remaining increase was driven by one large commercial real estate deal put on nonaccrual during the quarter. The ratio of nonperforming assets to total assets was 0.45 percent at September 30, 2025, a decrease from 0.55 percent at June 30, 2025. Total nonperforming assets increased $38.4 million to $102.0 million at September 30, 2025 from $63.6 million at June 30, 2025.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2025 increased $77.3 million to $135.3 million from $58.1 million for the quarter ended June 30, 2025. The increase was primarily driven by one-time Merger and restructuring expenses of $51.9 million. Excluding these one-time charges, non-interest expense increased $23.2 million driven by one month of combined expenses as well as an increase of $2.2 million in amortization of identified intangible assets.
PROVISION FOR INCOME TAXES
The effective tax rate was 27.8 percent and 33.7 percent for the three and nine months ended September 30, 2025 compared to 25.6 percent for the three months ended June 30, 2025 and 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to (1.48) percent during the third quarter of 2025 from 0.77 percent for the second quarter of 2025.
The annualized return on average stockholders' equity was (13.41) percent for the third quarter of 2025. The annualized return on average tangible stockholders' equity (non-GAAP) was (16.98) percent for the third quarter of 2025.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.3225 per share for the quarter ended September 30, 2025. The dividend will be paid on November 24, 2025 to stockholders of record on November 10, 2025.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 30, 2025 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 beaconfinancialcorporation.com. To listen to the call and view the Company's Earnings Presentation, please join the call via https://events.q4inc.com/attendee/309414724. 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 that was created on September 1, 2025 through the merger of equals between Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc. Headquartered in Boston, the Company has $22.8 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 Bank operates through its banking divisions – Berkshire Bank, Brookline Bank, BankRI, and PCSB Bank. 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. We may also make forward-looking statements in other documents we file 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 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]
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BEACON FINANCIAL CORPORATION AND SUBSIDIARIES |
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Selected Financial Highlights (Unaudited) |
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At and for the Three Months Ended |
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September 30,
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June 30,
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March 31,
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December 31,
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September 30,
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(Dollars In Thousands Except per Share Data) |
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Earnings Data: |
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Net interest income |
$ 132,606 |
$ 88,685 |
$ 85,830 |
$ 84,988 |
$ 83,008 |
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Provision for credit losses on loans |
87,496 |
6,997 |
5,974 |
4,141 |
4,832 |
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Provision (recovery) of credit losses on investments |
32 |
3 |
12 |
(104) |
(172) |
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Non-interest income |
12,345 |
5,970 |
5,660 |
6,587 |
6,348 |
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Non-interest expense |
135,318 |
58,061 |
60,022 |
63,719 |
57,948 |
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(Loss) Income before provision for income taxes |
(77,895) |
29,594 |
25,482 |
23,819 |
26,748 |
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Net (loss) income |
(56,262) |
22,026 |
19,100 |
17,536 |
20,142 |
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Performance Ratios: |
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Net interest margin (1) |
3.72 % |
3.32 % |
3.22 % |
3.12 % |
3.07 % |
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Interest-rate spread (1) |
3.04 % |
2.57 % |
2.38 % |
2.35 % |
2.26 % |
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Return on average assets (annualized) |
(1.48) % |
0.77 % |
0.66 % |
0.61 % |
0.70 % |
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Return on average tangible assets (annualized) (non-GAAP) |
(1.51) % |
0.79 % |
0.68 % |
0.62 % |
0.72 % |
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Return on average stockholders' equity (annualized) |
(13.41) % |
7.04 % |
6.19 % |
5.69 % |
6.63 % |
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Return on average tangible stockholders' equity (annualized) (non-GAAP) |
(16.98) % |
8.85 % |
7.82 % |
7.21 % |
8.44 % |
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Efficiency ratio (2) |
93.35 % |
61.34 % |
65.60 % |
69.58 % |
64.85 % |
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Per Common Share Data: |
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Net (loss) income — Basic |
$ (0.64) |
$ 0.25 |
$ 0.21 |
$ 0.20 |
$ 0.23 |
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Net (loss) income — Diluted |
(0.64) |
0.25 |
0.21 |
0.20 |
0.23 |
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Cash dividends declared |
0.323 |
0.135 |
0.135 |
0.135 |
0.135 |
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Book value per share (end of period) |
28.78 |
14.08 |
13.92 |
13.71 |
13.81 |
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Tangible book value per share (end of period) (non-GAAP) |
22.20 |
11.20 |
11.03 |
10.81 |
10.89 |
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Stock price (end of period) |
23.71 |
10.55 |
10.90 |
11.80 |
10.09 |
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Balance Sheet: |
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Total assets |
$ 22,821,439 |
$ 11,568,745 |
$ 11,519,869 |
$ 11,905,326 |
$ 11,676,721 |
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Total loans and leases |
18,241,907 |
9,582,374 |
9,642,722 |
9,779,288 |
9,755,236 |
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Total deposits |
18,904,063 |
8,961,202 |
8,911,452 |
8,901,644 |
8,732,271 |
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Total stockholders' equity |
2,414,996 |
1,254,171 |
1,240,182 |
1,221,939 |
1,230,362 |
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Asset Quality: |
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Nonperforming assets |
$ 101,990 |
$ 63,596 |
$ 64,021 |
$ 70,452 |
$ 72,821 |
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Nonperforming assets as a percentage of total assets |
0.45 % |
0.55 % |
0.56 % |
0.59 % |
0.62 % |
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Allowance for loan and lease losses |
$ 253,735 |
$ 126,725 |
$ 124,145 |
$ 125,083 |
$ 127,316 |
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Allowance for loan and lease losses as a percentage of total loans and leases |
1.39 % |
1.32 % |
1.29 % |
1.28 % |
1.31 % |
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Net loan and lease charge-offs (3) |
15,857 |
$ 5,127 |
$ 7,597 |
$ 7,252 |
$ 3,808 |
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Net loan and lease charge-offs as a percentage of average loans and leases |
0.51 % |
0.21 % |
0.31 % |
0.30 % |
0.16 % |
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Capital Ratios: |
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Stockholders' equity to total assets |
10.58 % |
10.84 % |
10.77 % |
10.26 % |
10.54 % |
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Tangible stockholders' equity to tangible assets (non-GAAP) |
8.37 % |
8.82 % |
8.73 % |
8.27 % |
8.50 % |
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(1) Calculated on a fully tax-equivalent basis. |
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(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. |
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(3) The balance at September 30, 2025 excludes a $15.8 million Merger Day 1 charge-offs write up. |
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BEACON FINANCIAL CORPORATION AND SUBSIDIARIES |
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Consolidated Balance Sheets (Unaudited) |
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September 30, 2025 |
June 30,
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March 31,
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December 31,
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September 30, 2024 |
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ASSETS |
(In Thousands Except Share Data) |
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Cash and due from banks |
$ 182,251 |
$ 87,386 |
$ 78,741 |
$ 64,673 |
$ 82,168 |
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Short-term investments |
1,038,369 |
419,362 |
278,805 |
478,997 |
325,721 |
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Total cash and cash equivalents |
1,220,620 |
506,748 |
357,546 |
543,670 |
407,889 |
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Investment securities available-for-sale |
1,739,423 |
866,684 |
882,353 |
895,034 |
855,391 |
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Total investment securities |
1,739,423 |
866,684 |
882,353 |
895,034 |
855,391 |
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Allowance for investment security losses |
(129) |
(97) |
(94) |
(82) |
(186) |
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Net investment securities |
1,739,294 |
866,587 |
882,259 |
894,952 |
855,205 |
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Loans and leases held-for-sale |
83,330 |
— |
— |
— |
— |
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Loans and leases: |
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Commercial real estate loans |
10,212,798 |
5,485,546 |
5,580,982 |
5,716,114 |
5,779,290 |
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Commercial loans and leases |
3,934,709 |
2,520,347 |
2,512,912 |
2,506,664 |
2,453,038 |
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Consumer loans |
4,094,400 |
1,576,481 |
1,548,828 |
1,556,510 |
1,522,908 |
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Total loans and leases |
18,241,907 |
9,582,374 |
9,642,722 |
9,779,288 |
9,755,236 |
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Allowance for loan and lease losses |
(253,735) |
(126,725) |
(124,145) |
(125,083) |
(127,316) |
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Net loans and leases |
17,988,172 |
9,455,649 |
9,518,577 |
9,654,205 |
9,627,920 |
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Restricted equity securities |
99,431 |
66,481 |
67,537 |
83,155 |
82,675 |
|
Premises and equipment, net of accumulated depreciation |
158,375 |
83,963 |
84,439 |
86,781 |
86,925 |
|
Right-of-use asset operating leases |
90,757 |
42,415 |
44,144 |
43,527 |
41,934 |
|
Deferred tax asset |
178,456 |
52,325 |
52,176 |
56,620 |
50,827 |
|
Goodwill |
353,471 |
241,222 |
241,222 |
241,222 |
241,222 |
|
Identified intangible assets, net of accumulated amortization |
198,339 |
14,600 |
16,030 |
17,461 |
19,162 |
|
Other real estate owned and repossessed assets |
3,360 |
1,288 |
917 |
1,103 |
1,579 |
|
Cash surrender value of bank-owned life insurance policies |
332,840 |
85,479 |
84,959 |
84,448 |
83,932 |
|
Other assets |
374,994 |
151,988 |
170,063 |
198,182 |
177,451 |
|
Total assets |
$ 22,821,439 |
$ 11,568,745 |
$ 11,519,869 |
$ 11,905,326 |
$ 11,676,721 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Demand checking accounts |
$ 3,905,559 |
$ 1,726,933 |
$ 1,664,629 |
$ 1,692,394 |
$ 1,681,858 |
|
NOW accounts |
1,470,808 |
650,707 |
625,492 |
617,246 |
637,374 |
|
Savings accounts |
2,904,888 |
1,795,761 |
1,793,852 |
1,721,247 |
1,736,989 |
|
Money market accounts |
5,589,693 |
2,153,709 |
2,183,855 |
2,116,360 |
2,041,185 |
|
Certificate of deposit accounts |
4,127,226 |
1,877,661 |
1,878,665 |
1,885,444 |
1,819,353 |
|
Brokered deposit accounts |
905,889 |
756,431 |
764,959 |
868,953 |
815,512 |
|
Total deposits |
18,904,063 |
8,961,202 |
8,911,452 |
8,901,644 |
8,732,271 |
|
Borrowed funds: |
|
|
|
|
|
|
Advances from the FHLB |
841,044 |
934,669 |
957,848 |
1,355,926 |
1,345,003 |
|
Subordinated debentures and notes |
198,283 |
84,397 |
84,362 |
84,328 |
84,293 |
|
Other borrowed funds |
41,189 |
135,985 |
113,617 |
79,592 |
68,251 |
|
Total borrowed funds |
1,080,516 |
1,155,051 |
1,155,827 |
1,519,846 |
1,497,547 |
|
Operating lease liabilities |
92,211 |
43,528 |
45,330 |
44,785 |
43,266 |
|
Mortgagors' escrow accounts |
11,179 |
15,289 |
15,264 |
15,875 |
14,456 |
|
Reserve for unfunded credits |
13,727 |
4,586 |
5,296 |
5,981 |
6,859 |
|
Accrued expenses and other liabilities |
304,747 |
134,918 |
146,518 |
195,256 |
151,960 |
|
Total liabilities |
20,406,443 |
10,314,574 |
10,279,687 |
10,683,387 |
10,446,359 |
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock, $0.01 par value; 200,000,000 shares authorized; 89,576,403 shares |
1,023 |
970 |
970 |
970 |
970 |
|
Additional paid-in capital |
2,177,807 |
904,697 |
903,696 |
902,584 |
901,562 |
|
Retained earnings |
407,557 |
475,781 |
465,898 |
458,943 |
453,555 |
|
Accumulated other comprehensive income |
(28,905) |
(39,378) |
(42,498) |
(52,882) |
(38,081) |
|
Treasury stock, at cost; |
|
|
|
|
|
|
5,449,039, 7,039,136, 7,037,610, 7,019,384, and 7,015,843 shares, respectively |
(142,486) |
(87,899) |
(87,884) |
(87,676) |
(87,644) |
|
Total stockholders' equity |
2,414,996 |
1,254,171 |
1,240,182 |
1,221,939 |
1,230,362 |
|
Total liabilities and stockholders' equity |
$ 22,821,439 |
$ 11,568,745 |
$ 11,519,869 |
$ 11,905,326 |
$ 11,676,721 |
|
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||
|
Consolidated Statements of Income (Unaudited) |
|||||
|
|
Three Months Ended |
||||
|
|
September 30,
|
June 30,
|
March 31, 2025 |
December 31,
|
September 30,
|
|
|
(In Thousands Except Share Data) |
||||
|
Interest and dividend income: |
|
|
|
|
|
|
Loans and leases |
$ 198,273 |
$ 143,933 |
$ 143,309 |
$ 147,436 |
$ 149,643 |
|
Debt securities |
10,984 |
6,691 |
6,765 |
6,421 |
6,473 |
|
Restricted equity securities |
1,466 |
1,062 |
1,203 |
1,460 |
1,458 |
|
Short-term investments |
5,438 |
2,386 |
2,451 |
2,830 |
1,986 |
|
Total interest and dividend income |
216,161 |
154,072 |
153,728 |
158,147 |
159,560 |
|
Interest expense: |
|
|
|
|
|
|
Deposits |
71,901 |
52,682 |
53,478 |
56,562 |
59,796 |
|
Borrowed funds |
11,654 |
12,705 |
14,420 |
16,597 |
16,756 |
|
Total interest expense |
83,555 |
65,387 |
67,898 |
73,159 |
76,552 |
|
Net interest income |
132,606 |
88,685 |
85,830 |
84,988 |
83,008 |
|
Provision for credit losses on loans |
87,496 |
6,997 |
5,974 |
4,141 |
4,832 |
|
Provision (recovery) of credit losses on investments |
32 |
3 |
12 |
(104) |
(172) |
|
Net interest income after provision for credit losses |
45,078 |
81,685 |
79,844 |
80,951 |
78,348 |
|
Non-interest income: |
|
|
|
|
|
|
Deposit fees |
5,005 |
2,472 |
2,361 |
2,297 |
2,353 |
|
Loan fees |
1,004 |
472 |
393 |
439 |
464 |
|
Loan level derivative income (loss) |
635 |
(4) |
70 |
1,115 |
— |
|
Gain on sales of loans and leases held-for-sale |
1,175 |
264 |
24 |
406 |
415 |
|
Wealth management fees |
2,466 |
1,421 |
1,491 |
1,608 |
1,509 |
|
Other |
2,060 |
1,345 |
1,321 |
722 |
1,607 |
|
Total non-interest income |
12,345 |
5,970 |
5,660 |
6,587 |
6,348 |
|
Non-interest expense: |
|
|
|
|
|
|
Compensation and employee benefits |
49,999 |
35,147 |
35,853 |
37,202 |
35,130 |
|
Occupancy |
6,921 |
5,349 |
5,721 |
5,393 |
5,343 |
|
Equipment and data processing |
11,110 |
6,841 |
7,012 |
6,780 |
6,831 |
|
Professional services |
2,114 |
1,471 |
1,726 |
1,345 |
2,143 |
|
FDIC insurance |
1,971 |
1,880 |
2,037 |
2,017 |
2,118 |
|
Advertising and marketing |
1,583 |
1,371 |
868 |
1,303 |
859 |
|
Amortization of identified intangible assets |
3,587 |
1,431 |
1,430 |
1,701 |
1,668 |
|
Merger and restructuring expense |
51,885 |
439 |
971 |
3,378 |
— |
|
Other |
6,148 |
4,132 |
4,404 |
4,600 |
3,856 |
|
Total non-interest expense |
135,318 |
58,061 |
60,022 |
63,719 |
57,948 |
|
(Loss) income before provision for income taxes |
(77,895) |
29,594 |
25,482 |
23,819 |
26,748 |
|
(Benefit) provision for income taxes |
(21,633) |
7,568 |
6,382 |
6,283 |
6,606 |
|
Net (loss) income |
$ (56,262) |
$ 22,026 |
$ 19,100 |
$ 17,536 |
$ 20,142 |
|
Earnings per common share: |
|
|
|
|
|
|
Basic |
$ (0.64) |
$ 0.25 |
$ 0.21 |
$ 0.20 |
$ 0.23 |
|
Diluted |
$ (0.64) |
$ 0.25 |
$ 0.21 |
$ 0.20 |
$ 0.23 |
|
Weighted average common shares outstanding during the period: |
|
|
|
|
|
|
Basic |
87,508,517 |
89,104,605 |
89,103,510 |
89,098,443 |
89,033,463 |
|
Diluted |
87,832,552 |
89,612,781 |
89,567,747 |
89,483,964 |
89,319,611 |
|
Dividends paid per common share |
$ 0.3225 |
$ 0.135 |
$ 0.135 |
$ 0.135 |
$ 0.135 |
|
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES |
||
|
Consolidated Statements of Income (Unaudited) |
||
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2025 |
2024 |
|
|
(In Thousands Except Share Data) |
|
|
Interest and dividend income: |
|
|
|
Loans and leases |
$ 485,515 |
$ 440,493 |
|
Debt securities |
24,440 |
19,831 |
|
Restricted equity securities |
3,731 |
4,326 |
|
Short-term investments |
10,275 |
5,724 |
|
Total interest and dividend income |
523,961 |
470,374 |
|
Interest expense: |
|
|
|
Deposits |
178,061 |
176,401 |
|
Borrowed funds |
38,779 |
49,376 |
|
Total interest expense |
216,840 |
225,777 |
|
Net interest income |
307,121 |
244,597 |
|
Provision for credit losses on loans |
100,467 |
17,862 |
|
Provision (recovery) of credit losses on investments |
47 |
(255) |
|
Net interest income after provision for credit losses |
206,607 |
226,990 |
|
Non-interest income: |
|
|
|
Deposit fees |
9,838 |
8,251 |
|
Loan fees |
1,869 |
1,955 |
|
Loan level derivative income (loss) |
701 |
543 |
|
Gain on sales of loans and leases held-for-sale |
1,463 |
545 |
|
Wealth management fees |
5,378 |
4,382 |
|
Other |
4,726 |
3,352 |
|
Total non-interest income |
23,975 |
19,028 |
|
Non-interest expense: |
|
|
|
Compensation and employee benefits |
120,999 |
106,521 |
|
Occupancy |
17,991 |
16,663 |
|
Equipment and data processing |
24,963 |
20,594 |
|
Professional services |
5,311 |
5,788 |
|
FDIC insurance |
5,888 |
6,027 |
|
Advertising and marketing |
3,822 |
3,937 |
|
Amortization of identified intangible assets |
6,448 |
5,045 |
|
Merger and restructuring expense |
53,295 |
823 |
|
Other |
14,684 |
12,748 |
|
Total non-interest expense |
253,401 |
178,146 |
|
(Loss) income before provision for income taxes |
(22,819) |
67,872 |
|
(Benefit) provision for income taxes |
(7,683) |
16,693 |
|
Net (loss) income |
$ (15,136) |
$ 51,179 |
|
Earnings per common share: |
|
|
|
Basic |
$ (0.17) |
$ 0.58 |
|
Diluted |
$ (0.17) |
$ 0.57 |
|
Weighted average common shares outstanding during the period: |
|
|
|
Basic |
88,566,368 |
88,944,569 |
|
Diluted |
88,998,517 |
89,241,470 |
|
Dividends paid per common share |
$ 0.5925 |
$ 0.405 |
|
BEACON FINANCIAL CORPORATION AND SUBSIDIARIES |
|||||
|
Asset Quality Analysis (Unaudited) |
|||||
|
|
At and for the Three Months Ended |
||||
|
|
September 30,
|
June 30,
|
March 31, 2025 |
December 31,
|
September 30,
|
|
|
(Dollars in Thousands) |
||||
|
NONPERFORMING ASSETS: |
|
|
|
|
|
|
Loans and leases accounted for on a nonaccrual basis: |
|
|
|
|
|
|
Commercial real estate mortgage |
$ 30,213 |
$ 987 |
$ 10,842 |
$ 11,525 |
$ 11,595 |
|
Multi-family mortgage |
2,994 |
1,433 |
6,576 |
6,596 |
1,751 |
|
Construction |
535 |
— |
— |
— |
— |
|
Total commercial real estate loans |
33,742 |
2,420 |
17,418 |
18,121 |
13,346 |
|
|
|
|
|
|
|
|
Commercial |
14,035 |
8,687 |
7,415 |
14,676 |
15,734 |
|
Equipment financing |
41,793 |
46,067 |
32,975 |
31,509 |
37,223 |
|
Total commercial loans and leases |
55,828 |
54,754 |
40,390 |
46,185 |
52,957 |
|
|
|
|
|
|
|
|
Residential mortgage |
6,597 |
3,572 |
3,962 |
3,999 |
3,862 |
|
Home equity |
2,220 |
1,561 |
1,333 |
1,043 |
1,076 |
|
Other consumer |
243 |
1 |
1 |
1 |
1 |
|
Total consumer loans |
9,060 |
5,134 |
5,296 |
5,043 |
4,939 |
|
|
|
|
|
|
|
|
Total nonaccrual loans and leases |
98,630 |
62,308 |
63,104 |
69,349 |
71,242 |
|
|
|
|
|
|
|
|
Other real estate owned |
824 |
700 |
700 |
700 |
780 |
|
Other repossessed assets |
2,536 |
588 |
217 |
403 |
799 |
|
Total nonperforming assets |
$ 101,990 |
$ 63,596 |
$ 64,021 |
$ 70,452 |
$ 72,821 |
|
|
|
|
|
|
|
|
Loans and leases past due greater than 90 days and still accruing |
$ 23,570 |
$ 24,899 |
$ 3,009 |
$ 811 |
$ 16,091 |
|
|
|
|
|
|
|
|
Nonperforming loans and leases as a percentage of total loans and leases |
0.54 % |
0.65 % |
0.65 % |
0.71 % |
0.73 % |
|
Nonperforming assets as a percentage of total assets |
0.45 % |
0.55 % |
0.56 % |
0.59 % |
0.62 % |
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: |
|
|
|
||
|
Allowance for loan and lease losses at beginning of period |
$ 126,725 |
$ 124,145 |
$ 125,083 |
$ 127,316 |
$ 121,750 |
|
Merger Day 1 allowance on non-PCD loans * |
69,487 |
— |
— |
— |
— |
|
Merger Day 1 allowance on PCD loans |
64,511 |
— |
— |
— |
— |
|
Charge-offs |
(16,661) |
(5,601) |
(9,073) |
(8,414) |
(4,183) |
|
Recoveries |
804 |
474 |
1,476 |
1,162 |
375 |
|
Net charge-offs** |
(15,857) |
(5,127) |
(7,597) |
(7,252) |
(3,808) |
|
Provision for loan and lease losses excluding unfunded commitments *** |
8,869 |
7,707 |
6,659 |
5,019 |
9,374 |
|
Allowance for loan and lease losses at end of period |
$ 253,735 |
$ 126,725 |
$ 124,145 |
$ 125,083 |
$ 127,316 |
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percentage of total loans and leases |
1.39 % |
1.32 % |
1.29 % |
1.28 % |
1.31 % |
|
|
|
|
|
|
|
|
NET CHARGE-OFFS: |
|
|
|
|
|
|
Commercial real estate loans |
$ 819 |
$ 3,524 |
$ — |
$ — |
$ — |
|
Commercial loans and leases |
15,116 |
1,640 |
7,647 |
7,257 |
3,797 |
|
Consumer loans |
(78) |
(37) |
(50) |
(5) |
11 |
|
Total net charge-offs** |
$ 15,857 |
$ 5,127 |
$ 7,597 |
$ 7,252 |
$ 3,808 |
|
|
|
|
|
|
|
|
Net loan and lease charge-offs as a percentage of average loans and leases |
0.51 % |
0.21 % |
0.31 % |
0.30 % |
0.16 % |
|
|
|
|
|
|
|
|
*Excludes the provision of $8.4 million for credit losses on unfunded commitments during the three months ended September 30, 2025. |
|||||
|
** 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 $0.7 million, $(0.7 million), $(0.7 million), $(0.9 million), and $(4.5 million) for credit losses on unfunded commitments during the |
|||||
|
BEACON FINANCIAL CORPORATION. AND SUBSIDIARIES |
|||||||||
|
Average Yields / Costs (Unaudited) |
|||||||||
|
|
Three Months Ended |
||||||||
|
|
September 30, 2025 |
June 30, 2025 |
September 30, 2024 |
||||||
|
|
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
|
|
(Dollars in Thousands) |
||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
Debt securities (2) |
$ 1,165,022 |
$ 11,273 |
3.87 % |
$ 874,212 |
$ 6,752 |
3.09 % |
$ 853,924 |
$ 6,516 |
3.05 % |
|
Restricted equity securities (2) |
73,853 |
1,467 |
7.95 % |
65,724 |
1,062 |
6.46 % |
75,225 |
1,459 |
7.76 % |
|
Short-term investments |
448,044 |
5,438 |
4.85 % |
215,982 |
2,386 |
4.42 % |
145,838 |
1,986 |
5.44 % |
|
Total investments |
1,686,919 |
18,178 |
4.31 % |
1,155,918 |
10,200 |
3.53 % |
1,074,987 |
9,961 |
3.71 % |
|
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
7,013,916 |
107,942 |
6.02 % |
5,533,208 |
77,136 |
5.51 % |
5,772,456 |
83,412 |
5.65 % |
|
Commercial loans (3) |
1,818,012 |
31,033 |
6.68 % |
1,286,908 |
20,757 |
6.38 % |
1,079,084 |
18,440 |
6.69 % |
|
Equipment financing (3) |
1,209,797 |
24,692 |
8.16 % |
1,240,128 |
25,069 |
8.09 % |
1,353,649 |
26,884 |
7.94 % |
|
Consumer loans (3) |
2,505,760 |
35,286 |
5.62 % |
1,556,254 |
21,437 |
5.51 % |
1,505,095 |
21,123 |
5.60 % |
|
Total loans and leases |
12,547,485 |
198,953 |
6.34 % |
9,616,498 |
144,399 |
6.01 % |
9,710,284 |
149,859 |
6.17 % |
|
Total interest-earning assets |
14,234,404 |
217,131 |
6.10 % |
10,772,416 |
154,599 |
5.74 % |
10,785,271 |
159,820 |
5.93 % |
|
Non-interest-earning assets |
975,676 |
|
|
630,518 |
|
|
666,067 |
|
|
|
Total assets |
$15,210,080 |
|
|
$11,402,934 |
|
|
$11,451,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ 917,794 |
1,786 |
0.77 % |
$ 637,786 |
1,034 |
0.65 % |
$ 639,561 |
1,115 |
0.69 % |
|
Savings accounts |
2,201,808 |
12,867 |
2.32 % |
1,780,838 |
10,692 |
2.41 % |
1,738,756 |
12,098 |
2.77 % |
|
Money market accounts |
3,324,253 |
23,131 |
2.76 % |
2,189,373 |
13,990 |
2.56 % |
2,038,048 |
15,466 |
3.02 % |
|
Certificates of deposit |
2,607,493 |
24,956 |
3.80 % |
1,879,749 |
18,437 |
3.93 % |
1,768,026 |
20,054 |
4.51 % |
|
Brokered deposit accounts |
823,059 |
9,161 |
4.42 % |
748,205 |
8,529 |
4.57 % |
841,067 |
11,063 |
5.23 % |
|
Total interest-bearing deposits |
9,874,407 |
71,901 |
2.89 % |
7,235,951 |
52,682 |
2.92 % |
7,025,458 |
59,796 |
3.39 % |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
Advances from the FHLB |
792,455 |
8,709 |
4.30 % |
904,399 |
10,422 |
4.56 % |
1,139,049 |
14,366 |
4.94 % |
|
Subordinated debentures and notes |
121,526 |
2,394 |
7.88 % |
84,380 |
1,718 |
8.14 % |
84,276 |
1,378 |
6.54 % |
|
Other borrowed funds |
42,303 |
551 |
5.16 % |
46,086 |
565 |
4.93 % |
53,102 |
1,012 |
7.58 % |
|
Total borrowings |
956,284 |
11,654 |
4.77 % |
1,034,865 |
12,705 |
4.86 % |
1,276,427 |
16,756 |
5.14 % |
|
Total interest-bearing liabilities |
10,830,691 |
83,555 |
3.06 % |
8,270,816 |
65,387 |
3.17 % |
8,301,885 |
76,552 |
3.67 % |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Demand checking accounts |
2,414,119 |
|
|
1,654,594 |
|
|
1,669,092 |
|
|
|
Other non-interest-bearing liabilities |
287,062 |
|
|
225,469 |
|
|
264,324 |
|
|
|
Total liabilities |
13,531,872 |
|
|
10,150,879 |
|
|
10,235,301 |
|
|
|
Stockholders' equity |
1,678,208 |
|
|
1,252,055 |
|
|
1,216,037 |
|
|
|
Total liabilities and equity |
$15,210,080 |
|
|
$11,402,934 |
|
|
$11,451,338 |
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread (4) |
|
133,576 |
3.04 % |
|
89,212 |
2.57 % |
|
83,268 |
2.26 % |
|
Less adjustment of tax-exempt income |
|
970 |
|
|
527 |
|
|
260 |
|
|
Net interest income |
|
$ 132,606 |
|
|
$ 88,685 |
|
|
$ 83,008 |
|
|
Net interest margin (5) |
|
|
3.72 % |
|
|
3.32 % |
|
|
3.07 % |
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|||||||||
|
(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 |
||||||
|
Average Yields / Costs (Unaudited) |
||||||
|
|
Nine Months Ended |
|||||
|
|
September 30, 2025 |
September 30, 2024 |
||||
|
|
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
|
|
(Dollars in Thousands) |
|||||
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
Debt securities (2) |
$ 977,060 |
$ 24,839 |
3.39 % |
$ 864,501 |
$ 19,953 |
3.08 % |
|
Restricted equity securities (2) |
69,802 |
3,733 |
7.13 % |
74,422 |
4,327 |
7.75 % |
|
Short-term investments |
304,870 |
10,275 |
4.49 % |
140,156 |
5,724 |
5.44 % |
|
Total investments |
1,351,732 |
38,847 |
3.83 % |
1,079,079 |
30,004 |
3.71 % |
|
Loans and Leases: |
|
|
|
|
|
|
|
Commercial real estate loans (3) |
6,071,163 |
262,321 |
5.70 % |
5,763,065 |
246,026 |
5.61 % |
|
Commercial loans (3) |
1,449,490 |
71,518 |
6.51 % |
1,058,312 |
53,619 |
6.66 % |
|
Equipment financing (3) |
1,243,492 |
75,696 |
8.12 % |
1,367,380 |
80,034 |
7.80 % |
|
Consumer loans (3) |
1,873,834 |
77,584 |
5.52 % |
1,492,213 |
61,392 |
5.49 % |
|
Total loans and leases |
10,637,979 |
487,119 |
6.11 % |
9,680,970 |
441,071 |
6.07 % |
|
Total interest-earning assets |
11,989,711 |
525,966 |
5.85 % |
10,760,049 |
471,075 |
5.84 % |
|
Non-interest-earning assets |
742,502 |
|
|
678,235 |
|
|
|
Total assets |
$ 12,732,213 |
|
|
$11,438,284 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
NOW accounts |
$ 729,035 |
3,825 |
0.70 % |
$ 656,879 |
3,487 |
0.71 % |
|
Savings accounts |
1,910,457 |
33,732 |
2.36 % |
1,721,518 |
35,324 |
2.74 % |
|
Money market accounts |
2,571,233 |
50,708 |
2.64 % |
2,047,011 |
46,940 |
3.06 % |
|
Certificates of deposit |
2,127,184 |
62,986 |
3.96 % |
1,697,477 |
55,443 |
4.36 % |
|
Brokered deposit accounts |
779,717 |
26,810 |
4.60 % |
898,455 |
35,207 |
5.23 % |
|
Total interest-bearing deposits |
8,117,626 |
178,061 |
2.93 % |
7,021,340 |
176,401 |
3.36 % |
|
Borrowings |
|
|
|
|
|
|
|
Advances from the FHLB |
900,666 |
30,978 |
4.54 % |
1,117,809 |
41,893 |
4.92 % |
|
Subordinated debentures and notes |
96,887 |
5,813 |
8.00 % |
84,241 |
4,130 |
6.54 % |
|
Other borrowed funds |
53,177 |
1,988 |
5.00 % |
83,195 |
3,353 |
5.38 % |
|
Total borrowings |
1,050,730 |
38,779 |
4.87 % |
1,285,245 |
49,376 |
5.05 % |
|
Total interest-bearing liabilities |
9,168,356 |
216,840 |
3.16 % |
8,306,585 |
225,777 |
3.63 % |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand checking accounts |
1,919,100 |
|
|
1,646,932 |
|
|
|
Other non-interest-bearing liabilities |
254,646 |
|
|
280,947 |
|
|
|
Total liabilities |
11,342,102 |
|
|
10,234,464 |
|
|
|
Stockholders' equity |
1,390,111 |
|
|
1,203,820 |
|
|
|
Total liabilities and equity |
$ 12,732,213 |
|
|
$11,438,284 |
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread (4) |
|
309,126 |
2.69 % |
|
245,298 |
2.21 % |
|
Less adjustment of tax-exempt income |
|
2,005 |
|
|
701 |
|
|
Net interest income |
|
$307,121 |
|
|
$244,597 |
|
|
Net interest margin (5) |
|
|
3.45 % |
|
|
3.05 % |
|
|
|
|
|
|
|
|
|
(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 |
||||||
|
(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
|
Nine Months Ended
|
||
|
|
|
2025 |
2024 |
2025 |
2024 |
|
Reconciliation Table - Non-GAAP Financial Information |
(Dollars in Thousands Except Share Data) |
(Dollars in Thousands Except Share Data) |
|||
|
|
|
|
|
|
|
|
Reported Pretax (loss) income |
$ (77,895) |
$ 26,748 |
$ (22,819) |
$ 67,872 |
|
|
Add: |
|
|
|
|
|
|
Merger Day 1 CECL provision |
77,902 |
— |
77,902 |
— |
|
|
Merger and restructuring expense |
51,885 |
— |
53,295 |
823 |
|
|
Operating Pretax income |
|
$ 51,892 |
$ 26,748 |
$ 108,378 |
$ 68,695 |
|
Effective tax rate |
|
25.9 % |
24.7 % |
25.9 % |
24.6 % |
|
Provision for income taxes |
|
13,419 |
6,606 |
28,026 |
16,895 |
|
Operating earnings after tax |
$ 38,473 |
$ 20,142 |
$ 80,352 |
$ 51,800 |
|
|
|
|
|
|
|
|
|
Operating earnings per common share: |
|
|
|
|
|
|
Basic |
|
$ 0.44 |
$ 0.23 |
$ 0.91 |
$ 0.58 |
|
Diluted |
|
$ 0.44 |
$ 0.23 |
$ 0.90 |
$ 0.58 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding during the period: |
|
|
|
|
|
|
Basic |
|
87,508,517 |
89,033,463 |
88,566,368 |
88,944,569 |
|
Diluted |
|
87,832,552 |
89,319,611 |
88,998,517 |
89,241,470 |
|
|
|
|
|
|
|
|
Return on average assets * |
(1.48) % |
0.70 % |
(0.16) % |
0.60 % |
|
|
Add: |
|
|
|
|
|
|
Merger Day 1 CECL provision (after-tax) * |
1.52 % |
— % |
0.60 % |
— % |
|
|
Merger and restructuring expense (after-tax) * |
1.01 % |
— % |
0.41 % |
0.01 % |
|
|
Operating return on average assets * |
1.05 % |
0.70 % |
0.85 % |
0.61 % |
|
|
|
|
|
|
|
|
|
Return on average tangible assets * |
(1.51) % |
0.72 % |
(0.16) % |
0.61 % |
|
|
Add: |
|
|
|
|
|
|
Merger Day 1 CECL provision (after-tax) * |
1.56 % |
— % |
0.62 % |
— % |
|
|
Merger and restructuring expense (after-tax) * |
1.04 % |
— % |
0.42 % |
0.01 % |
|
|
Operating return on average tangible assets * |
1.09 % |
0.72 % |
0.88 % |
0.62 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders' equity * |
(13.41) % |
6.63 % |
(1.45) % |
5.67 % |
|
|
Add: |
|
|
|
|
|
|
Merger Day 1 CECL provision (after-tax) * |
13.77 % |
— % |
5.54 % |
— % |
|
|
Merger and restructuring expense (after-tax) * |
9.17 % |
— % |
3.79 % |
0.07 % |
|
|
Operating return on average stockholders' equity * |
9.53 % |
6.63 % |
7.88 % |
5.74 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders' equity * |
(16.98) % |
8.44 % |
(1.83) % |
7.25 % |
|
|
Add: |
|
|
|
|
|
|
Merger Day 1 CECL provision (after-tax) * |
17.44 % |
— % |
7.00 % |
— % |
|
|
Merger and restructuring expense (after-tax) * |
11.61 % |
— % |
4.79 % |
0.09 % |
|
|
Operating return on average tangible stockholders' equity * |
12.07 % |
8.44 % |
9.96 % |
7.34 % |
|
|
|
|
|
|
|
|
|
* Ratios at and for the three months and nine months ended are annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At and for the Three Months Ended |
||||
|
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|
|
(Dollars in Thousands) |
||||
|
|
|
|
|
|
|
|
Net (loss) income, as reported |
$ (56,262) |
$ 22,026 |
$ 19,100 |
$ 17,536 |
$ 20,142 |
|
|
|
|
|
|
|
|
Average total assets |
$ 15,210,080 |
$ 11,402,934 |
$ 11,543,330 |
$ 11,580,572 |
$ 11,451,338 |
|
Less: Average goodwill and average identified intangible assets, net |
353,189 |
256,508 |
257,941 |
259,496 |
261,188 |
|
Average tangible assets |
$ 14,856,891 |
$ 11,146,426 |
$ 11,285,389 |
$ 11,321,076 |
$ 11,190,150 |
|
|
|
|
|
|
|
|
Return on average tangible assets (annualized) |
(1.51) % |
0.79 % |
0.68 % |
0.62 % |
0.72 % |
|
|
|
|
|
|
|
|
Average total stockholders' equity |
$ 1,678,208 |
$ 1,252,055 |
$ 1,235,201 |
$ 1,232,527 |
$ 1,216,037 |
|
Less: Average goodwill and average identified intangible assets, net |
353,189 |
256,508 |
257,941 |
259,496 |
261,188 |
|
Average tangible stockholders' equity |
$ 1,325,019 |
$ 995,547 |
$ 977,260 |
$ 973,031 |
$ 954,849 |
|
|
|
|
|
|
|
|
Return on average tangible stockholders' equity (annualized) |
(16.98) % |
8.85 % |
7.82 % |
7.21 % |
8.44 % |
|
|
|
|
|
|
|
|
Total stockholders' equity |
$ 2,414,996 |
$ 1,254,171 |
$ 1,240,182 |
$ 1,221,939 |
$ 1,230,362 |
|
Less: |
|
|
|
|
|
|
Goodwill |
353,471 |
241,222 |
241,222 |
241,222 |
241,222 |
|
Identified intangible assets, net |
198,339 |
14,600 |
16,030 |
17,461 |
19,162 |
|
Tangible stockholders' equity |
$ 1,863,186 |
$ 998,349 |
$ 982,930 |
$ 963,256 |
$ 969,978 |
|
|
|
|
|
|
|
|
Total assets |
$ 22,821,439 |
$ 11,568,745 |
$ 11,519,869 |
$ 11,905,326 |
$ 11,676,721 |
|
Less: |
|
|
|
|
|
|
Goodwill |
353,471 |
241,222 |
241,222 |
241,222 |
241,222 |
|
Identified intangible assets, net |
198,339 |
14,600 |
16,030 |
17,461 |
19,162 |
|
Tangible assets |
$ 22,269,629 |
$ 11,312,923 |
$ 11,262,617 |
$ 11,646,643 |
$ 11,416,337 |
|
|
|
|
|
|
|
|
Tangible stockholders' equity to tangible assets |
8.37 % |
8.82 % |
8.73 % |
8.27 % |
8.50 % |
|
|
|
|
|
|
|
|
Tangible stockholders' equity |
$ 1,863,186 |
$ 998,349 |
$ 982,930 |
$ 963,256 |
$ 969,978 |
|
|
|
|
|
|
|
|
Number of common shares issued |
89,576,403 |
96,998,075 |
96,998,075 |
96,998,075 |
96,998,075 |
|
Less: |
|
|
|
|
|
|
Treasury shares |
5,449,039 |
7,039,136 |
7,037,610 |
7,019,384 |
7,015,843 |
|
Unvested restricted shares |
218,503 |
854,334 |
855,860 |
880,248 |
883,789 |
|
Number of common shares outstanding |
83,908,861 |
89,104,605 |
89,104,605 |
89,098,443 |
89,098,443 |
|
|
|
|
|
|
|
|
Tangible book value per common share |
$ 22.20 |
$ 11.20 |
$ 11.03 |
$ 10.81 |
$ 10.89 |
PDF available: https://mma.prnewswire.com/media/2808710/BBT_Earnings_Pres_2025_10_30.pdf
SOURCE Beacon Financial Corporation
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