BBT

Beacon Financial came into today treading water, roughly flat over the past three months. Then the stock jumped about 7% in the first full trading session after Q3 2026 earnings. The headline result was clean bank earnings, with basic earnings per share at about $0.73 and a reported net interest margin of 3.85% that points to solid core banking economics. The share price move indicates that traders responded positively to the results. The longer view focuses on whether that profitability and margin profile justify a P/E around 11x, given trailing net income over the past year of more than $225m. Like Beacon Financial's clean Q3 earnings but wondering if an 11x P/E and a 3.85% net interest margin are really the best combination you can get in bank stocks right now? Benchmark those numbers against a curated set of peers in our list of solid balance sheet and fundamentals stocks (26 results) - Total Revenue (Q3 2026 vs Q3 2025): US$214.2m vs. US$57.4m (very large increase) - Net Income, Excluding Extra Items (Q3 2026 vs Q3 2025): US$61.2m vs. a loss of US$50.2m (swing to profit) - Basic EPS (Q3 2026 vs Q3 2025): US$0.73 vs. a loss of US$0.57 per share (swing to positive earnings) - Net Interest Margin, NIM (Q3 2026 vs Q3 2025): 3.85% vs. 3.72% (modest uplift in lending spread) Beacon Financial laid out seven targets under its new CEO. Ask Charlie what Beacon Financial's new CEO really prioritized. Optimists argue that Beacon Financial's merger playbook can still do heavy lifting for earnings. "Realization of merger cost synergies, including further headcount reductions and vendor consolidation after the core conversion, should reduce operating expenses toward the targeted quarterly run rate and support expanding net margins and earnings." Q3 shows some traction. Operating expenses of US$119.5m and an efficiency ratio of 53.5% point to real cost discipline, and net interest margin at 3.85% held firm. Profitability swung back into positive territory with US$61.2m of net income. The remaining question is whether further integration work can keep trimming the expense base without slowing growth. The bear story focuses on credit and funding strains that could chip away at Beacon Financial's progress. "Elevated credit losses tied to the identified pool of approximately $380 million of troubled assets and concentrated exposure in equipment finance and criticized office loans could persist for longer than expected, leading to higher than guided quarterly provisions and net charge-offs and pressuring net income and earnings growth." Q3 credit costs show that this concern is not theoretical. Net charge offs were US$13.5m with provision expense of US$8.9m and nonperforming loans at about 0.91% of loans. Reserves of roughly 1.32% of loans, including US$70m against about US$350m of substandard credits, give some cushion, yet they also confirm that problem assets remain a central watch item for the next few quarters. The price and this Narrative do not agree. → Uncover what this Narrative says Beacon Financial is actually worth. Beacon Financial just showed how one quarter can reset expectations without fully settling the bigger questions. The real opportunity sits in spotting companies that could be undervalued before the crowd catches up. - Company 1 - 43% below our estimate - targets utility scale solar projects bundling tracking, software and storage as procurement concentrates. - Company 2 - 17% below our estimate - expands a premium teahouse and membership network as drinkers shift toward brewed beverages with higher margins. - Company 3 - 28% below our estimate - supplies grid testing equipment and aerospace components needed for large scale electrification and modernization work. Three companies from the same screener. Open every one of the 29 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BBT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - GAAP EPS: $0.73 per share in Q3, down from $0.77 in Q2. - Operating EPS: $0.77 per share, excluding restructuring charges and gains on asset sales. - Net Income: $61.2 million GAAP; $64.7 million operating, versus $64.4 million GAAP in Q2. - Net Interest Income: $197.2 million, up $3.9 million sequentially. - Net Interest Margin: Expanded 4 basis points to 3.85%; guidance of 3.85%3.9% ahead. - Loan Yield: Up 14 basis points to 6.13%; Q3 originations of $1.04 billion at a weighted average coupon of 6.4% (64% floating rate). - Operating PPNR: Up 4% linked-quarter. - Return on Average Assets: 1.11% (down 6 basis points); core operating ROA stable at 1.17%. - Return on Tangible Common Equity: 12.02% (down 82 basis points); core operating ROTCE stable at 12.69%. - Operating Expense: $119.5 million excluding restructuring charges and intangibles, versus $118.9 million in the prior quarter. - Core Efficiency Ratio: Improved to 53.5%. - Non-Interest Income: Stable across diversified streams (wealth management, loan-level derivative income, service charges); fee revenue ~11% of total revenue, targeting mid-teens over time. - Total Assets: Declined $375 million to $21.9 billion. - Loans: Declined $170 million to $17.7 billion; CRE, consumer, and equipment finance down $270 million combined, offset by $100 million commercial loan growth (C&I up 1% linked-quarter, 4% annualized). - Deposits: Declined $303 million to $18.2 billion, driven mainly by $327 million of payroll deposits; loan-to-deposit ratio of 97%. - Cash and Equivalents: Decreased $445 million to $771 million. - Credit Quality: Nonperforming loans up ~$8 million to 91 basis points of total loans; net charge-offs of $13.5 million (30 basis points annualized); provision expense of $8.9 million; reserve coverage of 132 basis points of loans and leases. - Capital Ratios: Tangible common equity 9.35% of tangible assets; total risk-based capital ratio of 14.6%; CRE concentration ratio of 295%. - Capital Actions: Issued $175 million of 10-year non-call five-year subordinated debt at 6.25% coupon; retired $75 million of floating-rate debt; $75 million additional buyback authorization (total $125 million, ~5% of market cap); quarterly dividend of $0.3225 per share (4.7% yield). - Warning! GuruFocus has detected 3 Warning Signs with BBT. - Is BBT fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net interest income increased $3.9 million sequentially, driven by net interest margin expansion to 3.85%. - Operating PPNR was up 4% linked-quarter, and core efficiency ratio improved to 53.5%. - Capital position strengthened with tangible common equity at 9.35% of tangible assets and total risk-based capital ratio of 14.6%. - CRE concentration ratio reduced to 295%, achieving the goal set at the merger, providing capacity for organic growth. - Board approved additional $75 million share repurchase authorization, bringing total to $125 million, and declared a quarterly dividend of $0.3225 per share (4.7% yield). - GAAP EPS declined to $0.73 from $0.77 in the prior quarter, and return on average assets decreased 6 basis points to 1.11%. - Total assets declined $375 million to $21.9 billion, with loans down $170 million and deposits down $303 million. - Nonperforming loans increased approximately $8 million to 91 basis points of total loans, with two larger real estate loans migrating to non-accrual. - Net charge-offs totaled $13.5 million or 30 basis points annualized, and provision expense was $8.9 million. - Operating expense increased to $119.5 million from $118.9 million in the prior quarter, due to higher marketing, loan servicing, and fraud costs. Q: Can you discuss the drivers behind the decline in criticized and classified loans this quarter, the migration of two larger CRE loans into non-accrual, and whether we could see further declines in criticized and classifieds in future quarters?A: Mark Meiklejohn, Chief Credit Officer, explained that NPLs increased by about $8 million as two larger real estate loans migrated into NPL status: an office property in Stamford, Connecticut (about 80% occupied with significant tenant roll, requiring a longer-term retenanting solution) and an industrial property in Boston (expected to be resolved within the next quarter or two via a short sale, with the loan already reserved to appropriate levels). He was pleased with the decline in criticized and classified loans and hopes it signals market stabilization, though a number of credits are still being worked through and are believed to be appropriately reserved. Q: How should we think about the pace of share repurchases, and is there a baseline common equity Tier 1 target or a guiding light such as keeping the CRE concentration below 300%?A: Sean Gray, CEO, pointed to Slide 10 of the deck highlighting meaningful excess capital and said the company will be "very active" at current levels. Whether measured against regulatory limits or board and management targets, he feels the $125 million authorization is the right amount at this time and that the company can be active in the market. Q: With a healthy pipeline driving a pickup in originations offset by paydowns, how do you see the loan growth dynamic evolving given where rates have moved and potentially more hikes ahead?A: A company representative noted the pipeline remains healthy with about $610 million in net new funding anticipated for the fourth quarter, excluding paydowns and regular amortization. The market remains challenging and unsettled, with highly competitive pricing and terms, and is extremely sensitive to interest rate changes over the last 30 to 60 days. The representative expects paydowns to slow given that rates have ticked back up, though the pace is hard to estimate. Q: How would the net interest margin behave under a scenario with a couple more Fed hikes?A: Carl Carlson, Chief Financial and Strategy Officer, said the company is slightly asset sensitive, so rising rates should benefit it. He typically expects a nice margin expansion early on, followed by a lag in the pricing of funding, and therefore expects margin expansion over time. Q: How large is the remaining loan portfolio remixing to be done, and how does it impact net balance sheet growth over the next couple of quarters or a year?A: Sean Gray, CEO, said the company is confident it can maintain New England-type growth metrics given its teams, capabilities, and value proposition. Getting to the 295% ICRE concentration ratio represented more than $500 million in runoff, and that headwind is now behind them, allowing a return to a more normalized pipeline and growth rate. New business will focus on good, known sponsors and high-quality credits, and the company can be selective while maintaining a 300% ICRE to risk-based capital level. Q: On the 2027 priority of continuing to bring the reserve down, is that mainly a matter of resolving credits with specific reserves, or improvement in the portfolio and market?A: Mark Meiklejohn, Chief Credit Officer, explained the reserve components: about $70 million in specific reserves against about $350 million in substandard loans (roughly 20% coverage), with significant charges already taken, leaving the company in good shape on problem assets. Collective coverage is running around 93 basis points (94 last quarter, 92 the quarter before). He expects some elevated charge-offs as specific reserves and problem credits are worked through, while maintaining solid coverage on the base portfolio. Q: What is your philosophy on the branch network given mentions of branch efficiency and optimizationis it about MSA market share, or serving dense markets digitally?A: Sean Gray, CEO, said dense markets will continue to be served and enhanced with digital, while less dense markets will leverage banker-led private banking and digital channels rather than additional brick and mortar. Management should always proactively evaluate branch counts, profitability, and changing customer traffic. He noted the legacy BHLB trimmed branches from about 132 to the mid-80s while maintaining deposits, a proven track record, though he does not expect that level of reduction. The company will be proactive in managing branch counts. Q: When you talk about team liftouts, are there business lines you would like to enhance or add, and any particular targets?A: Sean Gray, CEO, said nothing new is being added, but a great opportunity is replicating proven businessessuch as C&I, business banking, ABL, or SBAfrom regions doing well into like-type regions. Coverage of the most profitable businesses has not yet been fully built out; for example, the Hudson Valley lacks significant wealth management coverage despite market opportunity. The focus is on leveraging proven businesses where the company knows it can win and already has scalable talent. Q: Regarding the target of top quartile employee and client retention, have there been retention challenges post-merger, and does this imply a step-up in expenses for investments over the next 12 months?A: Sean Gray, CEO, said expenses do not need to be remixed; adding teams and using capital tactically would be more one-off in nature, with no new business expected. On retention, he noted he has recruited and managed many of the commercial teams and about half the regional presidents, and has been impressed with legacy Brookline's regional leadership in Boston and Rhode Island. He feels good about retention given the talent in place. Q: Can you give a higher-level read on expenses and help us think about the current 145 brancheswhat that number looks like a year or two from now?A: Sean Gray, CEO, said more detail will come with the January plan. For now, changes will be more one-off, with no specific market targeted, and the work involves understanding whether there is branch overlap not considered in the original merger of equals. He anticipates it will be meaningful but will announce more detail in January. Q: The other expense line of $13.4 million was elevatedwas anything non-recurring, and specifically what was workout expense in the quarter?A: Carl Carlson, CFO, said nothing was one-off; some items come and go, such as fraud expense up about $600 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - New CEO Sean A. Gray characterizes the leadership change as a transition built for urgency and disciplined execution rather than a strategic reset. - Net interest margin expanded to 3.85% due to a 14 basis point increase in loan yields while funding costs remained relatively stable. - The company successfully reduced its Investor Commercial Real Estate (ICRE) concentration to 295%, meeting a key merger-of-equals goal and clearing a growth headwind. - C&I loans grew 1% sequentially and 4% annualized, marking the second consecutive quarter of growth as the bank pivots toward relationship-led lending. - Operating efficiency improved to 53.5%, reflecting realized synergies and operational momentum following the completion of systems integration. - Management attributed a sequential decline in GAAP EPS to nonrecurring charges related to the CEO transition and gains from facility sales. - Management established a mid-teens Return on Tangible Common Equity (ROTCE) as an appropriate near-term performance target. - The bank aims to increase fee income from 11% to the mid-teens of total revenue by scaling wealth management, SBA loan sales, and cash management. - Net interest margin is projected to remain in the range of 3.85% to 3.90% for the upcoming period, assuming no changes to the Fed funds rate. - Strategic focus will shift toward organizational simplification and branch optimization to lower the nominal dollar expense run rate. - Capital allocation will prioritize organic growth and shareholder returns, including a newly authorized $125 million share repurchase program. - The bank issued $175 million in subordinated debt to replace $75 million of floating rate debt that was losing regulatory capital treatment. - Nonperforming loans increased by $8 million, primarily driven by two specific credits: a Connecticut office property and a Boston industrial property. - Management signaled a potential future opportunity to modestly reduce the reserve-to-loans ratio, subject to portfolio performance and economic conditions. - The bank explicitly stated it will not pursue whole-bank acquisitions, focusing instead on organic growth and potential team lift-outs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects the Boston industrial property to be resolved within one to two quarters via a short sale already under agreement. - The Connecticut office property is a longer-term workout involving re-tenanting efforts and significant tenant improvement requirements. - The Q4 pipeline shows approximately $610 million in anticipated net new funding, though management noted high sensitivity to recent rate moves. - Paydowns are expected to slow as interest rates tick back up, which may assist in achieving net balance sheet growth. - CEO Sean Gray indicated the bank will proactively evaluate branch counts and profitability, noting a history of successful footprint reduction at legacy institutions. - Future network expansion will focus on 'banker-led' private banking and digital channels rather than new physical brick-and-mortar locations. - Two criticized office loans totaling $32 million are maturing in Q4; one is currently being extended and the other is in the planning phase for extension. - Management confirmed there are no criticized or classified loan maturities scheduled for the first quarter of the next year.

Net Income of $61.2 million, EPS of $0.73 Operating Earnings of $64.7 million, Operating EPS of $0.77 Quarterly Dividend of $0.3225 Board Increases Stock Buyback Authorization to $125 million BOSTON, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Beacon Financial Corporation (NYSE: BBT) (the "Company") today announced net income of $61.2 million, or $0.73 per basic and diluted share, for the third quarter of 2026, compared to $64.4 million, or $0.77 per basic and diluted share, for the second quarter of 2026, and a net loss of $(4.2) million, or $(0.05) per basic share, for the third quarter of 2025. The Company reported operating earnings after tax (non-GAAP) of $64.7 million, or $0.77 per basic and diluted share, for the third quarter of 2026, compared to operating earnings after tax (non-GAAP) of $64.4 million, or $0.77 per basic and diluted share, for the second quarter of 2026, and $34.0 million, or $0.39 per basic and diluted share, for the third quarter of 2025. "Our quarterly results reflect improvement in net interest income and net interest margin. My early conversations and feedback from our clients and frontline bankers indicate positive momentum to come. At the same time, continued macroeconomic uncertainty and the higher-rate environment contributed to greater caution amongst borrowers and weighed on our overall loan growth," said Sean Gray, the Company's Chief Executive Officer. "Since stepping into the CEO role shortly before the end of the quarter, I have focused on continuing the Company's regular practice of engaging with shareholders, employees and clients, while aligning our senior leaders around the highest-impact opportunities to improve our financial and operating performance. Our immediate priorities are clear: greater expense discipline, stronger core funding, disciplined loan growth, continued credit vigilance, more diversified fee income and returning capital to shareholders. We're committed to identifying decisive management-controlled actions that accelerate near-term performance and strengthen long-term franchise value." "The board has decided to increase the stock repurchase authorization to $125 million to reflect its confidence in our franchise, our capital position and the significant value we see in our shares. Going forward, investors should expect a more structured approach to capital allocation, one that supports organic growth, maintains balance sheet strength, and delivers attractive returns to shareholders." Presentation of Results - The Merger The Company's merger of equals (the "Merger") with Brookline Bancorp, Inc. ("Brookline"), completed on September 1, 2025, 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 periods ended September 30, 2025 reflect one month of combined Company activity and eight months of legacy Brookline standalone results. As a result, the Company's financial results for the third quarter of 2026 may not be directly comparable to prior reported periods. BALANCE SHEET Total assets decreased $375.4 million during the quarter to $21.9 billion at September 30, 2026. Total assets decreased $991.9 million from September 30, 2025, primarily driven by a decrease in cash and cash equivalents relating to a decline in payroll deposits due to the timing of payroll activity relative to quarter-end. Total cash and cash equivalents at September 30, 2026 decreased $444.8 million to $771.4 million from June 30, 2026, and decreased $449.3 million from September 30, 2025. Total loans and leases decreased $169.8 million to $17.7 billion at September 30, 2026 from June 30, 2026, and decreased $653.0 million from September 30, 2025, primarily due to a decline in commercial real estate, consumer and equipment financing loans, partially offset by an increase in commercial loans. Total investor commercial real estate as a percentage of total risk based capital declined to 295 percent as of September 30, 2026, achieving the goal we outlined in our initial merger announcement. Total investment securities at September 30, 2026 increased $195.2 million to $2.0 billion from June 30, 2026, primarily driven by a $335.5 million purchase during the quarter and increased $217.1 million from September 30, 2025. Total deposits as of September 30, 2026 decreased $303.3 million from June 30, 2026, primarily driven by a decrease of $326.7 million in payroll deposits and a decrease of $120.0 million in customer deposits, partially offset by an increase of $143.4 million in brokered deposits. Total deposits decreased $721.5 million from September 30, 2025, consisting of a $531.2 million decrease in brokered deposits, a $159.0 million decrease in payroll deposits, and a small decline of $31.3 million in customer deposits. Average balance total deposits increased 1 percent linked quarter. Total borrowed funds at September 30, 2026 decreased $113.1 million from June 30, 2026, and decreased $305.0 million from September 30, 2025. The ratio of stockholders' equity to total assets was 11.52 percent at September 30, 2026, compared to 11.41 percent at June 30, 2026, and 10.76 percent at September 30, 2025. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 9.35 percent at September 30, 2026, compared to 9.25 percent at June 30, 2026, and 8.56 percent at September 30, 2025. Tangible book value per common share (non-GAAP) decreased $0.17 from $23.98 at June 30, 2026 to $23.81 at September 30, 2026, and increased $1.06 from $22.75 at September 30, 2025. NET INTEREST INCOME Net interest income increased $3.9 million to $197.2 million during the third quarter of 2026 from $193.2 million for the quarter ended June 30, 2026. The net interest margin increased 4 basis points to 3.85 percent for the three months ended September 30, 2026 from 3.81 percent for the three months ended June 30, 2026. NON-INTEREST INCOME Total non-interest income for the quarter ended September 30, 2026 remained consistent with the quarter ended June 30, 2026. PROVISION FOR CREDIT LOSSES The Company recorded a provision for credit losses of $8.9 million for the quarter ended September 30, 2026, compared to $5.0 million for the quarter ended June 30, 2026. The increase in the provision quarter over quarter was driven by the deterioration of three larger CRE loans that required specific reserves, offset by a decline in criticized and classified loans from $813 million to $763 million during the quarter. Total net charge-offs for the third quarter of 2026 were $13.5 million compared to $14.3 million in the second quarter of 2026. The $13.5 million in net charge-offs were primarily driven by the restructuring of a large ABL transaction as well as smaller dollar charge-offs in the commercial portfolios. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 30 basis points for the third quarter of 2026 from 32 basis points for the second quarter of 2026. The allowance for loan and lease losses represented 1.32 percent of total loans and leases at September 30, 2026, compared to 1.34 percent at June 30, 2026, and 1.39 percent at September 30, 2025. ASSET QUALITY The ratio of nonperforming loans and leases to total loans and leases was 0.91 percent at September 30, 2026, an increase of 0.05 percent from 0.86 percent at June 30, 2026. Total nonaccrual loans and leases increased $7.9 million to $160.6 million at September 30, 2026, from $152.7 million at June 30, 2026. The ratio of nonperforming assets to total assets was 0.75 percent at September 30, 2026, an increase from 0.70 percent at June 30, 2026. Total nonperforming assets increased $7.9 million to $163.1 million at September 30, 2026 from $155.2 million at June 30, 2026. The increase in nonperforming assets was largely driven by two of the three larger CRE deals referenced above. NON-INTEREST EXPENSE Non-interest expense for the quarter ended September 30, 2026 increased $5.4 million to $132.7 million from $127.3 million for the quarter ended June 30, 2026, of which $5.1 million was related to restructuring expenses in the third quarter of 2026 compared to none in the second quarter of 2026. The remaining $0.3 million increase was primarily driven by elevated commercial loan servicing fees of $1.0 million, increases in marketing expense of $0.6 million and occupancy expense of $0.6 million, partially offset by a decrease of $1.0 million in technology expense and a decrease of $0.8 million in compensation and employee benefits expense. PROVISION FOR INCOME TAXES The effective tax rate was 25.0 percent and 26.7 percent for the three and nine months ended September 30, 2026 compared to 26.0 percent for the three months ended June 30, 2026 and 49.8 percent and 20.9 percent for the three and nine months ended September 30, 2025. RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY The annualized return on average assets decreased to 1.11 percent during the third quarter of 2026 from 1.17 percent for the second quarter of 2026. The annualized return on average stockholders' equity decreased to 9.55 percent during the third quarter of 2026 from 10.15 percent for the second quarter of 2026. The annualized return on average tangible stockholders' equity (non-GAAP) decreased to 12.02 percent for the third quarter of 2026 from 12.84 percent for the second quarter of 2026. DIVIDEND DECLARED The Company's Board of Directors approved a dividend of $0.3225 per share for the quarter ended September 30, 2026. The dividend will be paid on November 20, 2026 to stockholders of record on November 6, 2026. STOCK REPURCHASE The Company's Board of Directors approved an increase to its existing stock repurchase program bringing the total authorization up to $125 million. The stock repurchase program, which is subject to regulatory approval, authorizes the Company to repurchase up to $125 million of shares over 12 months following the authorization by regulatory authorities. CONFERENCE CALL The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 22, 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/438851030. To listen to the call without access to the slides, interested parties may dial (833) 461-5787 (United States) or (585) 542-9983 (internationally) and ask for the Beacon Financial Corporation conference call (Conference ID: 438 851 030). 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 (833) 309-1852 (United States & Canada) or (929) 828-5978 (internationally) and entering the passcode: 438 851 030. 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 $21.9 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 Beacon Bank and 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 | | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | | (Dollars In Thousands Except per Share Data) | Earnings Data: | | | | | | Net interest income | $ | 197,153 | $ | 193,207 | $ | 190,774 | $ | 199,741 | $ | 128,850 | Provision for credit losses on loans and unfunded commitments | 8,875 | 5,007 | 7,899 | 8,141 | 20,268 | Provision (recovery) of credit losses on investments | 53 | (85) | 47 | (35) | 32 | Non-interest income | 25,999 | 25,988 | 23,947 | 25,918 | 12,345 | Non-interest expense | 132,694 | 127,256 | 140,822 | 142,366 | 129,296 | Income (loss) before provision for income taxes | 81,530 | 87,017 | 65,953 | 75,187 | (8,401) | Net income (loss) | 61,182 | 64,426 | 46,217 | 53,366 | (4,221) | | | | | | | Performance Ratios: | | | | | | Net interest margin (1) | 3.85 % | 3.81 % | 3.78 % | 3.82 % | 3.62 % | Interest-rate spread (1) | 3.23 % | 3.13 % | 3.02 % | 3.15 % | 2.94 % | Return on average assets (annualized) | 1.11 % | 1.17 % | 0.84 % | 0.94 % | (0.11)% | Return on average tangible assets (annualized) (non-GAAP) | 1.14 % | 1.20 % | 0.86 % | 0.97 % | (0.11)% | Return on average stockholders' equity (annualized) | 9.55 % | 10.15 % | 7.32 % | 8.70 % | (1.01)% | Return on average tangible stockholders' equity (annualized) (non-GAAP) | 12.02 % | 12.84 % | 9.30 % | 11.19 % | (1.27)% | Efficiency ratio (2) | 59.46 % | 58.06 % | 65.58 % | 63.09 % | 91.57 % | Core efficiency ratio (3) | 53.54 % | 54.26 % | 55.64 % | 52.81 % | 56.55 % | | | | | | | Per Common Share Data: | | | | | | Net income (loss) — Basic | $ | 0.73 | $ | 0.77 | $ | 0.55 | $ | 0.64 | $ | (0.05) | Net income (loss) — Diluted | 0.73 | 0.77 | 0.55 | 0.64 | (0.05) | Cash dividends declared | 0.3225 | 0.3225 | 0.3225 | 0.3225 | 0.3225 | Book value per share (end of period) | 30.04 | 30.30 | 29.88 | 29.78 | 29.33 | Tangible book value per share (end of period) (non-GAAP) | 23.81 | 23.98 | 23.48 | 23.32 | 22.75 | Stock price (end of period) | 27.99 | 30.45 | 30.00 | 26.37 | 23.71 | | | | | | | Balance Sheet: | | | | | | Total assets | $ | 21,875,584 | $ | 22,250,964 | $ | 22,227,616 | $ | 23,220,372 | $ | 22,867,458 | Total loans and leases | 17,652,416 | 17,822,218 | 17,924,156 | 18,029,552 | 18,305,379 | Total deposits | 18,182,560 | 18,485,864 | 18,292,280 | 19,514,657 | 18,904,063 | Total stockholders' equity | 2,519,589 | 2,539,796 | 2,504,781 | 2,496,061 | 2,461,015 | | | | | | | Asset Quality: | | | | | | Nonperforming assets | $ | 163,059 | $ | 155,155 | $ | 151,239 | $ | 116,747 | $ | 101,990 | Nonperforming assets as a percentage of total assets | 0.75 % | 0.70 % | 0.68 % | 0.50 % | 0.45 % | Allowance for loan and lease losses | $ | 233,188 | $ | 238,189 | $ | 244,377 | $ | 252,839 | $ | 253,735 | Allowance for loan and lease losses as a percentage of total loans and leases | 1.32 % | 1.34 % | 1.36 % | 1.40 % | 1.39 % | Net loan and lease charge-offs (4) | 13,470 | $ | 14,280 | $ | 13,551 | $ | 9,019 | $ | 15,857 | Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.30 % | 0.32 % | 0.30 % | 0.20 % | 0.51 % | | | | | | | Capital Ratios: | | | | | | Stockholders' equity to total assets | 11.52 % | 11.41 % | 11.27 % | 10.75 % | 10.76 % | Tangible stockholders' equity to tangible assets (non-GAAP) | 9.35 % | 9.25 % | 9.07 % | 8.62 % | 8.56 % | | | | | | | (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 SUBSIDIARIES | Consolidated Balance Sheets (Unaudited) | | | | | | | | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 | | ASSETS | (In Thousands Except Share Data) | Cash and due from banks | $ | 273,493 | | $ | 240,680 | | $ | 185,692 | | $ | 201,557 | | $ | 182,251 | | Short-term investments | | 497,860 | | | 975,423 | | | 927,256 | | | 1,840,188 | | | 1,038,369 | | Total cash and cash equivalents | | 771,353 | | | 1,216,103 | | | 1,112,948 | | | 2,041,745 | | | 1,220,620 | | Investment securities available-for-sale | | 1,956,529 | | | 1,761,297 | | | 1,718,710 | | | 1,688,768 | | | 1,739,423 | | Total investment securities | | 1,956,529 | | | 1,761,297 | | | 1,718,710 | | | 1,688,768 | | | 1,739,423 | | Allowance for investment security losses | | (109 | ) | | (56 | ) | | (141 | ) | | (94 | ) | | (129 | ) | Net investment securities | | 1,956,420 | | | 1,761,241 | | | 1,718,569 | | | 1,688,674 | | | 1,739,294 | | Loans and leases held-for-sale | | — | | | — | | | — | | | — | | | 83,330 | | Loans and leases: | | | | | | Commercial real estate loans | | 9,710,208 | | | 9,884,139 | | | 9,957,408 | | | 10,012,094 | | | 10,247,090 | | Commercial loans and leases | | 4,050,789 | | | 3,981,803 | | | 4,011,974 | | | 3,947,363 | | | 3,950,693 | | Consumer loans | | 3,891,419 | | | 3,956,276 | | | 3,954,774 | | | 4,070,095 | | | 4,107,596 | | Total loans and leases | | 17,652,416 | | | 17,822,218 | | | 17,924,156 | | | 18,029,552 | | | 18,305,379 | | Allowance for loan and lease losses | | (233,188 | ) | | (238,189 | ) | | (244,377 | ) | | (252,839 | ) | | (253,735 | ) | Net loans and leases | | 17,419,228 | | | 17,584,029 | | | 17,679,779 | | | 17,776,713 | | | 18,051,644 | | Restricted equity securities | | 79,570 | | | 90,660 | | | 97,441 | | | 87,438 | | | 99,431 | | Premises and equipment, net of accumulated depreciation | | 167,504 | | | 161,175 | | | 161,141 | | | 162,474 | | | 158,375 | | Right-of-use asset operating leases | | 80,249 | | | 82,909 | | | 84,851 | | | 82,817 | | | 84,238 | | Deferred tax asset | | 156,371 | | | 138,466 | | | 142,827 | | | 149,487 | | | 178,456 | | Goodwill | | 357,358 | | | 357,358 | | | 355,269 | | | 351,613 | | | 353,471 | | Identified intangible assets, net of accumulated amortization | | 164,780 | | | 172,906 | | | 181,234 | | | 189,562 | | | 198,339 | | Other real estate owned and repossessed assets | | 2,505 | | | 2,505 | | | 2,623 | | | 2,591 | | | 3,360 | | Cash surrender value of bank-owned life insurance policies | | 337,791 | | | 335,523 | | | 336,980 | | | 334,442 | | | 332,840 | | Other assets | | 382,455 | | | 348,089 | | | 353,954 | | | 352,816 | | | 364,060 | | Total assets | $ | 21,875,584 | | $ | 22,250,964 | | $ | 22,227,616 | | $ | 23,220,372 | | $ | 22,867,458 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | Deposits: | | | | | | Demand checking accounts | $ | 3,886,512 | | $ | 3,910,604 | | $ | 3,861,000 | | $ | 4,032,529 | | $ | 3,905,559 | | Interest-bearing deposits: | | | | | | NOW accounts | | 1,570,468 | | | 1,569,862 | | | 1,520,600 | | | 1,445,894 | | | 1,470,808 | | Savings accounts | | 3,045,425 | | | 3,035,355 | | | 3,088,857 | | | 2,954,029 | | | 2,904,888 | | Money market accounts | | 4,351,324 | | | 4,461,990 | | | 4,393,607 | | | 4,636,548 | | | 4,545,231 | | Payroll deposit accounts | | 885,465 | | | 1,212,178 | | | 1,213,861 | | | 1,878,758 | | | 1,044,462 | | Certificate of deposit accounts | | 4,068,649 | | | 4,064,518 | | | 4,085,511 | | | 4,156,540 | | | 4,127,226 | | Brokered deposit accounts | | 374,717 | | | 231,357 | | | 128,844 | | | 410,359 | | | 905,889 | | Total interest-bearing deposits | | 14,296,048 | | | 14,575,260 | | | 14,431,280 | | | 15,482,128 | | | 14,998,504 | | Total deposits | | 18,182,560 | | | 18,485,864 | | | 18,292,280 | | | 19,514,657 | | | 18,904,063 | | Borrowed funds: | | | | | | Advances from the FHLB | | 358,236 | | | 633,292 | | | 822,091 | | | 555,788 | | | 841,044 | | Subordinated debentures and notes | | 301,470 | | | 202,278 | | | 198,989 | | | 198,572 | | | 198,283 | | Other borrowed funds | | 115,767 | | | 53,022 | | | 51,423 | | | 34,000 | | | 41,189 | | Total borrowed funds | | 775,473 | | | 888,592 | | | 1,072,503 | | | 788,360 | | | 1,080,516 | | Operating lease liabilities | | 87,961 | | | 90,936 | | | 92,820 | | | 90,713 | | | 92,211 | | Reserve for unfunded credits | | 13,876 | | | 13,470 | | | 16,555 | | | 13,746 | | | 13,727 | | Accrued expenses and other liabilities | | 296,125 | | | 232,306 | | | 248,677 | | | 316,835 | | | 315,926 | | Total liabilities | | 19,355,995 | | | 19,711,168 | | | 19,722,835 | | | 20,724,311 | | | 20,406,443 | | 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 89,576,403 shares issued, respectively | | 896 | | | 896 | | | 896 | | | 896 | | | 896 | | Additional paid-in capital | | 2,167,725 | | | 2,164,080 | | | 2,172,982 | | | 2,171,885 | | | 2,171,912 | | Retained earnings | | 576,280 | | | 542,304 | | | 504,976 | | | 485,862 | | | 459,598 | | Accumulated other comprehensive income | | (91,478 | ) | | (34,929 | ) | | (31,411 | ) | | (20,002 | ) | | (28,905 | ) | Treasury stock, at cost; | | | | | | 5,254,101, 5,211,670, 5,548,772, 5,545,511, and 5.449,039, shares, respectively | | (133,834 | ) | | (132,555 | ) | | (142,662 | ) | | (142,580 | ) | | (142,486 | ) | Total stockholders' equity | | 2,519,589 | | | 2,539,796 | | | 2,504,781 | | | 2,496,061 | | | 2,461,015 | | Total liabilities and stockholders' equity | $ | 21,875,584 | | $ | 22,250,964 | | $ | 22,227,616 | | $ | 23,220,372 | | $ | 22,867,458 | | BEACON FINANCIAL CORPORATION AND SUBSIDIARIES | Consolidated Statements of Income (Unaudited) | | Three Months Ended | | September 30, 2026 | June 30, 2026 | | March 31, 2026 | December 31, 2025 | | September 30, 2025 | | | (In Thousands Except Share Data) | Interest and dividend income: | | | | | | Loans and leases | $ | 270,278 | $ | 265,596 | | $ | 266,935 | $ | 285,795 | | $ | 194,517 | | Debt securities | | 19,748 | | 18,370 | | | 16,510 | | 16,335 | | | 10,984 | | Restricted equity securities | | 1,107 | | 1,506 | | | 843 | | 1,160 | | | 1,466 | | Short-term investments | | 7,780 | | 8,162 | | | 8,096 | | 9,293 | | | 5,438 | | Total interest and dividend income | | 298,913 | | 293,634 | | | 292,384 | | 312,583 | | | 212,405 | | Interest expense: | | | | | | Deposits | | 91,559 | | 88,959 | | | 93,056 | | 102,439 | | | 71,901 | | Borrowed funds | | 10,201 | | 11,468 | | | 8,554 | | 10,403 | | | 11,654 | | Total interest expense | | 101,760 | | 100,427 | | | 101,610 | | 112,842 | | | 83,555 | | Net interest income | | 197,153 | | 193,207 | | | 190,774 | | 199,741 | | | 128,850 | | Provision for credit losses on loans | | 8,875 | | 5,007 | | | 7,899 | | 8,141 | | | 20,268 | | Provision (recovery) of credit losses on investments | | 53 | | (85 | ) | | 47 | | (35 | ) | | 32 | | Net interest income after provision for credit losses | | 188,225 | | 188,285 | | | 182,828 | | 191,635 | | | 108,550 | | Non-interest income: | | | | | | Deposit fees | | 8,594 | | 8,510 | | | 8,347 | | 9,843 | | | 5,005 | | Loan fees | | 2,606 | | 2,619 | | | 2,366 | | 2,189 | | | 1,004 | | Loan level derivative income (loss) | | 1,094 | | 1,391 | | | 775 | | 721 | | | 635 | | Gain on sales of loans and leases held-for-sale | | 3,669 | | 3,869 | | | 2,689 | | 4,154 | | | 1,175 | | Wealth management fees | | 4,739 | | 4,860 | | | 4,464 | | 4,370 | | | 2,466 | | Other | | 5,297 | | 4,739 | | | 5,306 | | 4,641 | | | 2,060 | | Total non-interest income | | 25,999 | | 25,988 | | | 23,947 | | 25,918 | | | 12,345 | | Non-interest expense: | | | | | | Compensation and employee benefits | | 69,439 | | 70,280 | | | 69,650 | | 70,204 | | | 49,999 | | Occupancy | | 12,380 | | 11,791 | | | 13,097 | | 11,877 | | | 6,921 | | Equipment and data processing | | 16,999 | | 18,300 | | | 20,127 | | 19,754 | | | 11,110 | | Professional services | | 2,659 | | 2,769 | | | 2,462 | | 2,778 | | | 2,114 | | FDIC insurance | | 2,841 | | 3,332 | | | 4,320 | | 1,924 | | | 1,971 | | Advertising and marketing | | 1,722 | | 1,152 | | | 1,679 | | 2,157 | | | 1,583 | | Amortization of identified intangible assets | | 8,126 | | 8,328 | | | 8,328 | | 8,777 | | | 3,587 | | Other | | 13,427 | | 11,304 | | | 8,134 | | 10,471 | | | 6,148 | | Total non-interest operating expense | | 127,593 | | 127,256 | | | 127,797 | | 127,942 | | | 83,433 | | Merger and restructuring expense | | 5,101 | | — | | | 13,025 | | 14,424 | | | 45,863 | | Total non-interest expense | | 132,694 | | 127,256 | | | 140,822 | | 142,366 | | | 129,296 | | Income (loss) before provision for income taxes | | 81,530 | | 87,017 | | | 65,953 | | 75,187 | | | (8,401 | ) | Provision (benefit) for income taxes | | 20,348 | | 22,591 | | | 19,736 | | 21,821 | | | (4,180 | ) | Net Income (loss) | $ | 61,182 | $ | 64,426 | | $ | 46,217 | $ | 53,366 | | $ | (4,221 | ) | Earnings per common share: | | | | | | Basic | $ | 0.73 | $ | 0.77 | | $ | 0.55 | $ | 0.64 | | $ | (0.05 | ) | Diluted | $ | 0.73 | $ | 0.77 | | $ | 0.55 | $ | 0.64 | | $ | (0.05 | ) | Weighted average common shares outstanding during the period: | | | | | Basic | | 83,837,909 | | 83,816,086 | | | 83,816,086 | | 83,851,381 | | | 87,508,517 | | Diluted | | 83,997,567 | | 83,939,430 | | | 83,903,440 | | 83,878,047 | | | 87,832,552 | | Dividends paid per common share | $ | 0.3225 | $ | 0.3225 | | $ | 0.3225 | $ | 0.3225 | | $ | 0.3225 | | BEACON FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) | | Nine Months Ended September 30, | | 2026 | | 2025 | (In Thousands Except Share Data) Interest and dividend income: | | Loans and leases | $ | 802,809 | $ | 481,759 Debt securities | | 54,628 | | 24,440 Restricted equity securities | | 3,456 | | 3,731 Short-term investments | | 24,038 | | 10,275 Total interest and dividend income | | 884,931 | | 520,205 Interest expense: | | Deposits | | 273,574 | | 178,061 Borrowed funds | | 30,223 | | 38,779 Total interest expense | | 303,797 | | 216,840 Net interest income | | 581,134 | | 303,365 Provision for credit losses on loans | | 21,781 | | 33,239 Provision (recovery) of credit losses on investments | | 15 | | 47 Net interest income after provision for credit losses | | 559,338 | | 270,079 Non-interest income: | | Deposit fees | | 25,451 | | 9,838 Loan fees | | 7,591 | | 1,869 Loan level derivative income (loss) | | 3,260 | | 701 Gain on sales of loans and leases held-for-sale | | 10,227 | | 1,463 Wealth management fees | | 14,063 | | 5,378 Other | | 15,342 | | 4,726 Total non-interest income | | 75,934 | | 23,975 Non-interest expense: | | Compensation and employee benefits | | 209,369 | | 120,999 Occupancy | | 37,268 | | 17,991 Equipment and data processing | | 55,426 | | 24,963 Professional services | | 7,890 | | 5,311 FDIC insurance | | 10,493 | | 5,888 Advertising and marketing | | 4,553 | | 3,822 Amortization of identified intangible assets | | 24,782 | | 6,448 Other | | 32,865 | | 14,684 Total non-interest operating expense | | 382,646 | | 200,106 Merger and restructuring expense | | 18,126 | | 47,273 Total non-interest expense | | 400,772 | | 247,379 Income before provision for income taxes | | 234,500 | | 46,675 Provision for income taxes | | 62,675 | | 9,770 Net income | $ | 171,825 | $ | 36,905 Earnings per common share: | | Basic | $ | 2.05 | $ | 0.42 Diluted | $ | 2.05 | $ | 0.41 Weighted average common shares outstanding during the period: | Basic | | 83,823,440 | | 88,566,368 Diluted | | 83,946,890 | | 88,998,517 Dividends paid per common share | $ | 0.9675 | $ | 0.5925 BEACON FINANCIAL CORPORATION AND SUBSIDIARIES Asset Quality Analysis (Unaudited) | At and for the Three Months Ended | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | December 31, 2025 | | September 30, 2025 | | (Dollars in Thousands) NONPERFORMING ASSETS: | | | | | Loans and leases accounted for on a nonaccrual basis: | | | | | Commercial real estate mortgage | $ | 77,443 | | $ | 67,645 | | $ | 65,127 | | $ | 41,246 | | $ | 30,213 | Multi-family mortgage | | 8,673 | | | 9,484 | | | 12,995 | | | 4,065 | | | 2,994 | Construction | | — | | | — | | | — | | | — | | | 535 | Total commercial real estate loans | | 86,116 | | | 77,129 | | | 78,122 | | | 45,311 | | | 33,742 | | | | | | Commercial | | 20,396 | | | 20,873 | | | 22,626 | | | 16,716 | | | 14,035 | Equipment financing | | 44,862 | | | 45,493 | | | 38,633 | | | 42,718 | | | 41,793 | Total commercial loans and leases | | 65,258 | | | 66,366 | | | 61,259 | | | 59,434 | | | 55,828 | | | | | | Residential mortgage | | 5,876 | | | 5,991 | | | 5,807 | | | 6,465 | | | 6,597 | Home equity | | 2,954 | | | 3,041 | | | 3,222 | | | 2,739 | | | 2,220 | Other consumer | | 350 | | | 123 | | | 206 | | | 207 | | | 243 | Total consumer loans | | 9,180 | | | 9,155 | | | 9,235 | | | 9,411 | | | 9,060 | | | | | | Total nonaccrual loans and leases | | 160,554 | | | 152,650 | | | 148,616 | | | 114,156 | | | 98,630 | | | | | | Other real estate owned | | 70 | | | 70 | | | — | | | — | | | 824 | Other repossessed assets | | 2,435 | | | 2,435 | | | 2,623 | | | 2,591 | | | 2,536 | Total nonperforming assets | $ | 163,059 | | $ | 155,155 | | $ | 151,239 | | $ | 116,747 | | $ | 101,990 | | | | | | Loans and leases past due greater than 90 days and still accruing | $ | 27,849 | | $ | 7,785 | | $ | 5,834 | | $ | 37,823 | | $ | 23,570 | | | | | | Nonperforming loans and leases as a percentage of total loans and leases | | 0.91 | % | | 0.86 | % | | 0.83 | % | | 0.63 | % | | 0.54 | % Nonperforming assets as a percentage of total assets | | 0.75 | % | | 0.70 | % | | 0.68 | % | | 0.50 | % | | 0.45 | % | | | | | PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | | Allowance for loan and lease losses at beginning of period | $ | 238,189 | | $ | 244,377 | | $ | 252,839 | | $ | 253,735 | | $ | 126,725 | Merger Day 1 allowance on non-PCD loans * | | — | | | — | | | — | | | — | | | 67,229 | Merger Day 1 allowance on PCD loans | | — | | | — | | | — | | | — | | | 64,511 | Charge-offs | | (14,714 | ) | | (15,353 | ) | | (15,880 | ) | | (10,917 | ) | | (16,661 | ) Recoveries | | 1,244 | | | 1,073 | | | 2,329 | | | 1,898 | | | 804 | Net charge-offs** | | (13,470 | ) | | (14,280 | ) | | (13,551 | ) | | (9,019 | ) | | (15,857 | ) Provision for loan and lease losses excluding unfunded commitments *** | | 8,469 | | | 8,092 | | | 5,089 | | | 8,123 | | | 11,127 | Allowance for loan and lease losses at end of period | $ | 233,188 | | $ | 238,189 | | $ | 244,377 | | $ | 252,839 | | $ | 253,735 | | | | | | Allowance for loan and lease losses as a percentage of total loans and leases | | 1.32 | % | | 1.34 | % | | 1.36 | % | | 1.40 | % | | 1.39 | % | | | | | NET CHARGE-OFFS: | | | | | Commercial real estate loans | $ | 3,431 | | $ | 7,416 | | $ | 6,997 | | $ | 6,598 | | $ | 819 | Commercial loans and leases | | 10,088 | | | 6,897 | | | 6,611 | | | 2,799 | | | 15,116 | Consumer loans | | (49 | ) | | (33 | ) | | (57 | ) | | (378 | ) | | (78 | ) Total net charge-offs** | $ | 13,470 | | $ | 14,280 | | $ | 13,551 | | $ | 9,019 | | $ | 15,857 | | | | | | Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | 0.30 | % | | 0.32 | % | | 0.30 | % | | 0.20 | % | | 0.51 | % | | | | | *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 $0.4 million, $(3.1 million), $2.8 million, $(0.0 million), and $9.1 million of which $8.4 million was related to Merger Day 1 for credit losses on unfunded commitments during the three months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively. | | | | | BEACON FINANCIAL CORPORATION. AND SUBSIDIARIES Average Yields / Costs (Unaudited) | Three Months Ended | September 30, 2026 | June 30, 2026 | September 30, 2025 | Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | (Dollars in Thousands) Assets: | | | | | | | | | Interest-earning assets: | | | | | | | | | Investments: | | | | | | | | | Debt securities (2) | $ | 1,866,739 | $ | 20,403 | 4.37 | % | $ | 1,750,455 | $ | 19,013 | 4.35 | % | $ | 1,165,022 | $ | 11,273 | 3.87 | % Restricted equity securities (2) | | 83,794 | | 1,110 | 5.30 | % | | 95,840 | | 1,507 | 6.29 | % | | 73,853 | | 1,467 | 7.95 | % Short-term investments | | 820,295 | | 7,780 | 3.79 | % | | 860,874 | | 8,162 | 3.79 | % | | 448,044 | | 5,438 | 4.85 | % Total investments | | 2,770,828 | | 29,293 | 4.23 | % | | 2,707,169 | | 28,682 | 4.24 | % | | 1,686,919 | | 18,178 | 4.31 | % Loans and Leases: | | | | | | | | | Commercial real estate loans (3) | | 9,786,763 | | 144,375 | 5.77 | % | | 9,865,901 | | 142,453 | 5.71 | % | | 7,013,916 | | 105,287 | 5.87 | % Commercial loans (3) | | 2,996,699 | | 48,836 | 6.38 | % | | 2,952,686 | | 46,038 | 6.17 | % | | 1,818,012 | | 30,115 | 6.48 | % Equipment financing (3) | | 1,015,449 | | 20,138 | 7.93 | % | | 1,052,189 | | 21,675 | 8.24 | % | | 1,209,797 | | 24,692 | 8.16 | % Consumer loans (3) | | 3,916,588 | | 57,959 | 5.91 | % | | 3,935,888 | | 56,399 | 5.73 | % | | 2,505,760 | | 35,103 | 5.59 | % Total loans and leases | | 17,715,499 | | 271,308 | 6.13 | % | | 17,806,664 | | 266,565 | 5.99 | % | | 12,547,485 | | 195,197 | 6.22 | % Total interest-earning assets | | 20,486,327 | | 300,601 | 5.87 | % | | 20,513,833 | | 295,247 | 5.76 | % | | 14,234,404 | | 213,375 | 6.00 | % Non-interest-earning assets | | 1,558,531 | | | | 1,526,851 | | | | 975,676 | | Total assets | $ | 22,044,858 | | | $ | 22,040,684 | | | $ | 15,210,080 | | | | | | | | | | | Liabilities and Stockholders' Equity: | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | Deposits: | | | | | | | | | NOW accounts | $ | 1,588,380 | | 3,536 | 0.88 | % | $ | 1,535,148 | | 3,622 | 0.95 | % | $ | 917,794 | | 1,786 | 0.77 | % Savings accounts | | 3,044,938 | | 14,342 | 1.87 | % | | 3,057,585 | | 14,045 | 1.84 | % | | 2,201,808 | | 12,867 | 2.32 | % Money market accounts | | 4,470,968 | | 27,316 | 2.42 | % | | 4,396,223 | | 26,245 | 2.39 | % | | 3,324,253 | | 23,131 | 2.76 | % Certificates of deposit | | 4,075,397 | | 35,397 | 3.45 | % | | 4,051,332 | | 34,862 | 3.45 | % | | 2,607,493 | | 24,956 | 3.80 | % Payroll deposit accounts (4) | | 1,000,373 | | 7,725 | 3.06 | % | | 1,127,661 | | 8,570 | 3.05 | % | | NA | | NA | NA Brokered deposit accounts | | 317,741 | | 3,243 | 4.05 | % | | 174,146 | | 1,615 | 3.72 | % | | 823,059 | | 9,161 | 4.42 | % Total interest-bearing deposits | | 14,497,797 | | 91,559 | 2.51 | % | | 14,342,095 | | 88,959 | 2.49 | % | | 9,874,407 | | 71,901 | 2.89 | % Borrowings | | | | | | | | | Advances from the FHLB | | 461,293 | | 4,451 | 3.78 | % | | 742,763 | | 7,169 | 3.82 | % | | 792,455 | | 8,709 | 4.30 | % Subordinated debentures and notes | | 258,936 | | 5,042 | 7.79 | % | | 199,243 | | 3,693 | 7.41 | % | | 121,526 | | 2,394 | 7.88 | % Other borrowed funds | | 76,963 | | 708 | 3.65 | % | | 54,565 | | 606 | 4.46 | % | | 42,303 | | 551 | 5.16 | % Total borrowings | | 797,192 | | 10,201 | 5.01 | % | | 996,571 | | 11,468 | 4.55 | % | | 956,284 | | 11,654 | 4.77 | % Total interest-bearing liabilities | | 15,294,989 | | 101,760 | 2.64 | % | | 15,338,666 | | 100,427 | 2.63 | % | | 10,830,691 | | 83,555 | 3.06 | % Non-interest-bearing liabilities: | | | | | | | | | Demand checking accounts | | 3,829,078 | | | | 3,813,559 | | | | 2,414,119 | | Other non-interest-bearing liabilities | | 358,987 | | | | 348,856 | | | | 287,062 | | Total liabilities | | 19,483,054 | | | | 19,501,081 | | | | 13,531,872 | | Stockholders' equity | | 2,561,804 | | | | 2,539,603 | | | | 1,678,208 | | Total liabilities and equity | $ | 22,044,858 | | | $ | 22,040,684 | | | $ | 15,210,080 | | Net interest income (tax-equivalent basis) /Interest-rate spread (5) | | | 198,841 | 3.23 | % | | | 194,820 | 3.13 | % | | | 129,820 | 2.94 | % Less adjustment of tax-exempt income | | | 1,688 | | | | 1,613 | | | | 970 | Net interest income | | $ | 197,153 | | | $ | 193,207 | | | $ | 128,850 | Net interest margin (6) | | | 3.85 | % | | | 3.81 | % | | | 3.62 | % | | | | | | | | | (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) Payroll deposit accounts, if any, in periods prior to June 30, 2026, are included in the average money market account balance. (5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. (6) 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, 2026 | September 30, 2025 | Average Balance | Interest (1) | Average Yield/Cost | Average Balance | Interest (1) | Average Yield/Cost | (Dollars in Thousands) Assets: | | | | | | Interest-earning assets: | | | | | | Investments: | | | | | | Debt securities (2) | $ | 1,767,860 | $ | 56,569 | 4.27 | % | $ | 977,060 | $ | 24,839 | 3.39 | % Restricted equity securities (2) | | 87,970 | | 3,462 | 5.25 | % | | 69,802 | | 3,733 | 7.13 | % Short-term investments | | 835,739 | | 24,038 | 3.84 | % | | 304,870 | | 10,275 | 4.49 | % Total investments | | 2,691,569 | | 84,069 | 4.16 | % | | 1,351,732 | | 38,847 | 3.83 | % Loans and Leases: | | | | | | Commercial real estate loans (3) | | 9,874,879 | | 429,887 | 5.74 | % | | 6,071,163 | | 259,666 | 5.64 | % Commercial loans (3) | | 2,942,577 | | 139,520 | 6.25 | % | | 1,449,490 | | 70,600 | 6.42 | % Equipment financing (3) | | 1,061,285 | | 65,358 | 8.21 | % | | 1,243,492 | | 75,696 | 8.12 | % Consumer loans (3) | | 3,952,764 | | 171,022 | 5.77 | % | | 1,873,834 | | 77,401 | 5.51 | % Total loans and leases | | 17,831,505 | | 805,787 | 6.03 | % | | 10,637,979 | | 483,363 | 6.06 | % Total interest-earning assets | | 20,523,074 | | 889,856 | 5.78 | % | | 11,989,711 | | 522,210 | 5.81 | % Non-interest-earning assets | | 1,550,392 | | | | 742,502 | | Total assets | $ | 22,073,466 | | | $ | 12,732,213 | | | | | | | | Liabilities and Stockholders' Equity: | | | | | | Interest-bearing liabilities: | | | | | | Deposits: | | | | | | NOW accounts | $ | 1,539,776 | | 10,688 | 0.93 | % | $ | 729,035 | | 3,825 | 0.70 | % Savings accounts | | 3,045,217 | | 41,999 | 1.84 | % | | 1,910,457 | | 33,732 | 2.36 | % Money market accounts | | 5,567,366 | | 105,821 | 2.54 | % | | 2,571,233 | | 50,708 | 2.64 | % Certificates of deposit | | 4,087,458 | | 107,129 | 3.50 | % | | 2,127,184 | | 62,986 | 3.96 | % Brokered deposit accounts | | 266,394 | | 7,937 | 3.98 | % | | 779,717 | | 26,810 | 4.60 | % Total interest-bearing deposits | | 14,506,211 | | 273,574 | 2.52 | % | | 8,117,626 | | 178,061 | 2.93 | % Borrowings | | | | | | Advances from the FHLB | | 560,108 | | 16,298 | 3.84 | % | | 900,666 | | 30,978 | 4.54 | % Subordinated debentures and notes | | 219,199 | | 12,323 | 7.50 | % | | 96,887 | | 5,813 | 8.00 | % Other borrowed funds | | 53,017 | | 1,602 | 4.04 | % | | 53,177 | | 1,988 | 5.00 | % Total borrowings | | 832,324 | | 30,223 | 4.79 | % | | 1,050,730 | | 38,779 | 4.87 | % Total interest-bearing liabilities | | 15,338,535 | | 303,797 | 2.65 | % | | 9,168,356 | | 216,840 | 3.16 | % Non-interest-bearing liabilities: | | | | | | Demand checking accounts | | 3,836,271 | | | | 1,919,100 | | Other non-interest-bearing liabilities | | 356,724 | | | | 254,646 | | Total liabilities | | 19,531,530 | | | | 11,342,102 | | Stockholders' equity | | 2,541,936 | | | | 1,390,111 | | Total liabilities and equity | $ | 22,073,466 | | | $ | 12,732,213 | | Net interest income (tax-equivalent basis) /Interest-rate spread (4) | | | 586,059 | 3.13 | % | | | 305,370 | 2.65 | % Less adjustment of tax-exempt income | | | 4,925 | | | | 2,005 | Net interest income | | $ | 581,134 | | | $ | 303,365 | Net interest margin (5) | | | 3.82 | % | | | 3.41 | % | | | | | | (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. (3) Loans on nonaccrual status are included in the average balances. (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. BEACON FINANCIAL CORPORATION AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited) | | At and for the Three Months Ended September 30, | At and for the Nine Months Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Reconciliation Table - Non-GAAP Financial Information | | | | | | | Reported Pretax Income | $ | 81,530 | | $ | (8,401 | ) | $ | 234,500 | | $ | 46,675 | Less: | | | | | Gain/(Loss) - Other* | | 542 | | | — | | | 645 | | | — | Add: | | | | | Merger Day 1 CECL provision | | — | | | 8,415 | | | — | | | 8,415 | Merger and restructuring expense | | 5,101 | | | 45,863 | | | 18,126 | | | 47,273 | Operating Pretax income | | $ | 86,089 | | $ | 45,877 | | $ | 251,981 | | $ | 102,363 | Effective tax rate | | | 24.9 | % | | 25.9 | % | | 25.5 | % | | 25.9 | % Provision for income taxes | | | 21,436 | | | 11,864 | | | 64,255 | | | 26,471 | Operating earnings after tax | $ | 64,653 | | $ | 34,013 | | $ | 187,726 | | $ | 75,892 | | | | | | Operating earnings per common share: | | | | | Basic | | $ | 0.77 | | $ | 0.39 | | $ | 2.24 | | $ | 0.86 | Diluted | | $ | 0.77 | | $ | 0.39 | | $ | 2.24 | | $ | 0.85 | | | | | | Weighted average common shares outstanding during the period: | | | | Basic | | | 83,837,909 | | | 87,508,517 | | | 83,823,440 | | | 88,566,368 | Diluted | | | 83,997,567 | | | 87,832,552 | | | 83,946,890 | | | 88,998,517 | | | | | | Return on average assets ** | | 1.11 | % | | (0.11 | )% | | 1.04 | % | | 0.39 | % Less: | | | | | Gain/(Loss) - Other (after-tax) ** | | 0.01 | % | | — | % | | — | % | | — | % Add: | | | | | Merger Day 1 CECL provision (after-tax) ** | | — | % | | 0.16 | % | | — | % | | 0.07 | % Merger and restructuring expense (after-tax) ** | | 0.07 | % | | 0.89 | % | | 0.08 | % | | 0.37 | % Operating return on average assets ** | | 1.17 | % | | 0.94 | % | | 1.12 | % | | 0.83 | % | | | | | Return on average tangible assets ** | | 1.14 | % | | (0.11 | )% | | 1.06 | % | | 0.40 | % Less: | | | | | Gain/(Loss) - Other (after-tax) ** | | 0.01 | % | | — | % | | — | % | | — | % Add: | | | | | Merger Day 1 CECL provision (after-tax) ** | | — | % | | 0.17 | % | | — | % | | 0.07 | % Merger and restructuring expense (after-tax) ** | | 0.07 | % | | 0.92 | % | | 0.08 | % | | 0.38 | % Operating return on average tangible assets ** | | 1.20 | % | | 0.98 | % | | 1.14 | % | | 0.85 | % | | | | | | | | | | Return on average stockholders' equity ** | | 9.55 | % | | (1.01 | )% | | 9.01 | % | | 3.54 | % Less: | | | | | Gain/(Loss) - Other (after-tax) ** | | 0.06 | % | | — | % | | 0.03 | % | | — | % Add: | | | | | Merger Day 1 CECL provision (after-tax) ** | | — | % | | 1.49 | % | | — | % | | 0.60 | % Merger and restructuring expense (after-tax) ** | | 0.60 | % | | 8.10 | % | | 0.71 | % | | 3.36 | % Operating return on average stockholders' equity ** | | 10.09 | % | | 8.58 | % | | 9.69 | % | | 7.50 | % | | | | | | | | | | Return on average tangible stockholders' equity ** | | 12.02 | % | | (1.27 | )% | | 11.40 | % | | 4.47 | % Less: | | | | | Gain/(Loss) - Other (after-tax) ** | | 0.08 | % | | — | % | | 0.03 | % | | — | % Add: | | | | | Merger Day 1 CECL provision (after-tax) ** | | — | % | | 1.88 | % | | — | % | | 0.76 | % Merger and restructuring expense (after-tax) ** | | 0.75 | % | | 10.26 | % | | 0.90 | % | | 4.25 | % Operating return on average tangible stockholders' equity ** | | 12.69 | % | | 10.87 | % | | 12.27 | % | | 9.48 | % | | | | | * Driven by the sale of three buildings. | | | | ** Ratios at and for the three months and nine months ended are annualized. | | | | | | | | | At and for the Three Months Ended | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30 2025 | | (Dollars in Thousands) | | | | | Net income (loss), as reported | $ | 61,182 | | $ | 64,426 | | $ | 46,217 | | $ | 53,366 | | $ | (4,221 | ) | | | | | Average total assets | $ | 22,044,858 | | $ | 22,040,684 | | $ | 22,135,857 | | $ | 22,644,481 | | $ | 15,210,080 | Less: Average goodwill and average identified intangible assets, net | | 526,015 | | | 532,255 | | | 536,900 | | | 546,276 | | | 353,189 | Average tangible assets | $ | 21,518,843 | | $ | 21,508,429 | | $ | 21,598,957 | | $ | 22,098,205 | | $ | 14,856,891 | | | | | | Return on average tangible assets (annualized) | | 1.14 | % | | 1.20 | % | | 0.86 | % | | 0.97 | % | | (0.11 | )% | | | | | Average total stockholders' equity | $ | 2,561,804 | | $ | 2,539,603 | | $ | 2,523,986 | | $ | 2,453,480 | | $ | 1,678,208 | Less: Average goodwill and average identified intangible assets, net | | 526,015 | | | 532,255 | | | 536,900 | | | 546,276 | | | 353,189 | Average tangible stockholders' equity | $ | 2,035,789 | | $ | 2,007,348 | | $ | 1,987,086 | | $ | 1,907,204 | | $ | 1,325,019 | | | | | | Return on average tangible stockholders' equity (annualized) | | 12.02 | % | | 12.84 | % | | 9.30 | % | | 11.19 | % | | (1.27 | )% | | | | | Total stockholders' equity | $ | 2,519,589 | | $ | 2,539,796 | | $ | 2,504,781 | | | 2,496,061 | | | 2,461,015 | Less: | | | | | Goodwill | | 357,358 | | | 357,358 | | | 355,269 | | | 351,613 | | | 353,471 | Identified intangible assets, net | | 164,780 | | | 172,906 | | | 181,234 | | | 189,562 | | | 198,339 | Tangible stockholders' equity | $ | 1,997,451 | | $ | 2,009,532 | | $ | 1,968,278 | | $ | 1,954,886 | | $ | 1,909,205 | | | | | | Total assets | $ | 21,875,584 | | $ | 22,250,964 | | $ | 22,227,616 | | $ | 23,220,372 | | $ | 22,867,458 | Less: | | | | | Goodwill | | 357,358 | | | 357,358 | | | 355,269 | | | 351,613 | | | 353,471 | Identified intangible assets, net | | 164,780 | | | 172,906 | | | 181,234 | | | 189,562 | | | 198,339 | Tangible assets | $ | 21,353,446 | | $ | 21,720,700 | | $ | 21,691,113 | | $ | 22,679,197 | | $ | 22,315,648 | | | | | | Tangible stockholders' equity to tangible assets | | 9.35 | % | | 9.25 | % | | 9.07 | % | | 8.62 | % | | 8.56 | % | | | | | Tangible stockholders' equity | $ | 1,997,451 | | $ | 2,009,532 | | $ | 1,968,278 | | $ | 1,954,886 | | $ | 1,909,205 | | | | | | Number of common shares issued | | 89,576,403 | | | 89,576,403 | | | 89,576,403 | | | 89,576,403 | | | 89,576,403 | Less: | | | | | Treasury shares | | 5,254,101 | | | 5,211,670 | | | 5,548,772 | | | 5,545,511 | | | 5,449,039 | Unvested restricted shares | | 439,292 | | | 548,647 | | | 211,545 | | | 214,806 | | | 218,503 | Number of common shares outstanding | | 83,883,010 | | | 83,816,086 | | | 83,816,086 | | | 83,816,086 | | | 83,908,861 | | | | | | Tangible book value per common share | $ | 23.81 | | $ | 23.98 | | $ | 23.48 | | $ | 23.32 | | $ | 22.75 | | | | | | Non-interest expense | $ | 132,694 | | $ | 127,256 | | $ | 140,822 | | $ | 142,366 | | $ | 129,296 | Less: | | | | | Merger and restructuring expense | | 5,101 | | | — | | | 13,025 | | | 14,424 | | | 45,863 | Total non-interest operating expense | $ | 127,593 | | $ | 127,256 | | $ | 127,797 | | $ | 127,942 | | $ | 83,433 | Less: | | | | | Amortization of identified intangible assets | | 8,126 | | | 8,328 | | | 8,328 | | | 8,777 | | | 3,587 | Non-interest expense for operating efficiency ratio | $ | 119,467 | | $ | 118,928 | | $ | 119,469 | | $ | 119,165 | | $ | 79,846 | | | | | | Efficiency ratio | | 59.46 | % | | 58.06 | % | | 65.58 | % | | 63.09 | % | | 91.57 | % Core efficiency ratio | | 53.54 | % | | 54.26 | % | | 55.64 | % | | 52.81 | % | | 56.55 | % | | | | | A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/8505cb1c-8ada-4b5b-9b7a-c3e755affc8a

Beacon Financial (BBT) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.28%. A quarter ago, it was expected that this bank holding company would post earnings of $0.77 per share when it actually produced earnings of $0.77, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Beacon, which belongs to the Zacks Banks - Northeast industry, posted revenues of $223.15 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $144.95 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Beacon shares have added about 5.8% since the beginning of the year versus the S&P 500's gain of 12.7%. While Beacon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Beacon was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $227.22 million in revenues for the coming quarter and $3.04 on $885.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Northeast Community Bancorp (NECB), another stock in the same industry, has yet to report results for the quarter ended September 2026. This bank holding company is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +2.3%. The consensus EPS estimate for the quarter has been revised 7.2% higher over the last 30 days to the current level. Northeast Community Bancorp's revenues are expected to be $27.96 million, up 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beacon Financial Corporation (BBT) : Free Stock Analysis Report Northeast Community Bancorp Inc. (NECB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Beacon Financial (BBT) reported revenue of $223.15 million, up 54% over the same period last year. EPS came in at $0.77, compared to $0.44 in the year-ago quarter. The reported revenue represents a surprise of -0.41% over the Zacks Consensus Estimate of $224.07 million. With the consensus EPS estimate being $0.78, the EPS surprise was -1.28%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Beacon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Efficiency Ratio: 59.5% versus the four-analyst average estimate of 57.2%. - Net interest margin, FTE: 3.9% compared to the 3.8% average estimate based on four analysts. - Average Balance - Total earning assets: $20.49 billion versus $20.66 billion estimated by three analysts on average. - Total non-interest income: $26 million compared to the $25.96 million average estimate based on four analysts. - Net Interest Income: $197.15 million versus the three-analyst average estimate of $198.29 million. - Non-interest income- Other: $5.3 million versus $4.92 million estimated by two analysts on average. - Loan fees and other: $2.61 million compared to the $2.63 million average estimate based on two analysts. - Deposit related fees: $8.59 million compared to the $9.09 million average estimate based on two analysts. - Loan level derivative income (loss): $1.09 million versus $0.89 million estimated by two analysts on average. - Gain on sales of loans and leases held-for-sale: $3.67 million compared to the $3.45 million average estimate based on two analysts. View all Key Company Metrics for Beacon here>>> Shares of Beacon have returned -1.8% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beacon Financial Corporation (BBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

S&T Bancorp (STBA) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This holding company for S&T Bank is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of +8.8%. Revenues are expected to be $106.74 million, up 3.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.76% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For S&T Bancorp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.22%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that S&T Bancorp will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that S&T Bancorp would post earnings of $0.92 per share when it actually produced earnings of $1.02, delivering a surprise of +10.87%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. S&T Bancorp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Northeast industry, Beacon Financial (BBT), is soon expected to post earnings of $0.78 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +77.3%. Revenues for the quarter are expected to be $224.07 million, up 54.6% from the year-ago quarter. The consensus EPS estimate for Beacon has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.56%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Beacon will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report S&T Bancorp, Inc. (STBA) : Free Stock Analysis Report Beacon Financial Corporation (BBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Beacon Financial (BBT) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 21. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +77.3%. Revenues are expected to be $224.07 million, up 54.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Beacon, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.56%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Beacon will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Beacon would post earnings of $0.77 per share when it actually produced earnings of $0.77, delivering no surprise. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Beacon doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Northeast industry, Bank OZK (OZK), is soon expected to post earnings of $1.45 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -8.8%. Revenues for the quarter are expected to be $432 million, down 4% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Bank OZK has been revised 0.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.37%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Bank OZK will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beacon Financial Corporation (BBT) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research