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.

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

Total purchase consideration

1,216,669

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

carl.carlson@brkl.com

MEDIA CONTACT:

Contact:

Gary Levante

Beacon Financial Corporation

Chief Marketing Officer

(413) 447-1737

glevante@berkshirebank.com

BEACON FINANCIAL CORPORATION AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)

At and for the Three Months Ended

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

(Dollars In Thousands Except per Share Data)

Earnings Data:

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

(104)

(172)

Non-interest income

12,345

5,970

5,660

6,587

6,348

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

Net (loss) income

(56,262)

22,026

19,100

17,536

20,142

Performance Ratios:

Net interest margin (1)

3.72 %

3.32 %

3.22 %

3.12 %

3.07 %

Interest-rate spread (1)

3.04 %

2.57 %

2.38 %

2.35 %

2.26 %

Return on average assets (annualized)

(1.48) %

0.77 %

0.66 %

0.61 %

0.70 %

Return on average tangible assets (annualized) (non-GAAP)

(1.51) %

0.79 %

0.68 %

0.62 %

0.72 %

Return on average stockholders' equity (annualized)

(13.41) %

7.04 %

6.19 %

5.69 %

6.63 %

Return on average tangible stockholders' equity (annualized) (non-GAAP)

(16.98) %

8.85 %

7.82 %

7.21 %

8.44 %

Efficiency ratio (2)

93.35 %

61.34 %

65.60 %

69.58 %

64.85 %

Per Common Share Data:

Net (loss) income — Basic

$ (0.64)

$ 0.25

$ 0.21

$ 0.20

$ 0.23

Net (loss) income — Diluted

(0.64)

0.25

0.21

0.20

0.23

Cash dividends declared

0.323

0.135

Book value per share (end of period)

28.78

14.08

13.92

13.71

13.81

Tangible book value per share (end of period) (non-GAAP)

22.20

11.20

11.03

10.81

10.89

Stock price (end of period)

23.71

10.55

10.90

11.80

10.09

Balance Sheet:

Total assets

$ 22,821,439

$ 11,568,745

$ 11,519,869

$ 11,905,326

$ 11,676,721

Total loans and leases

18,241,907

9,582,374

9,642,722

9,779,288

9,755,236

Total deposits

18,904,063

8,961,202

8,911,452

8,901,644

8,732,271

Total stockholders' equity

2,414,996

1,254,171

1,240,182

1,221,939

1,230,362

Asset Quality:

Nonperforming assets

$ 101,990

$ 63,596

$ 64,021

$ 70,452

$ 72,821

Nonperforming assets as a percentage of total assets

0.45 %

0.55 %

0.56 %

0.59 %

0.62 %

Allowance for loan and lease losses

$ 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 loan and lease charge-offs (3)

15,857

$ 5,127

$ 7,597

$ 7,252

$ 3,808

Net loan and lease charge-offs as a percentage of average loans and leases

(annualized)

0.51 %

0.21 %

0.31 %

0.30 %

0.16 %

Capital Ratios:

Stockholders' equity to total assets

10.58 %

10.84 %

10.77 %

10.26 %

10.54 %

Tangible stockholders' equity to tangible assets (non-GAAP)

8.37 %

8.82 %

8.73 %

8.27 %

8.50 %

(1) Calculated on a fully tax-equivalent basis.

(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

(3) The balance at September 30, 2025 excludes a $15.8 million Merger Day 1 charge-offs write up.

BEACON FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

September 30, 2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30, 2024

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$ 182,251

$ 87,386

$ 78,741

$ 64,673

$ 82,168

Short-term investments

1,038,369

419,362

278,805

478,997

325,721

Total cash and cash equivalents

1,220,620

506,748

357,546

543,670

407,889

Investment securities available-for-sale

1,739,423

866,684

882,353

895,034

855,391

Total investment securities

1,739,423

866,684

882,353

895,034

855,391

Allowance for investment security losses

(129)

(97)

(94)

(82)

(186)

Net investment securities

1,739,294

866,587

882,259

894,952

855,205

Loans and leases held-for-sale

83,330

—

Loans and leases:

Commercial real estate loans

10,212,798

5,485,546

5,580,982

5,716,114

5,779,290

Commercial loans and leases

3,934,709

2,520,347

2,512,912

2,506,664

2,453,038

Consumer loans

4,094,400

1,576,481

1,548,828

1,556,510

1,522,908

Total loans and leases

18,241,907

9,582,374

9,642,722

9,779,288

9,755,236

Allowance for loan and lease losses

(253,735)

(126,725)

(124,145)

(125,083)

(127,316)

Net loans and leases

17,988,172

9,455,649

9,518,577

9,654,205

9,627,920

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

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

issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued,

and 96,998,075 shares issued, respectively

1,023

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,

2025

June 30,

2025

March 31, 2025

December 31,

2024

September 30,

2024

(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

(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)

1,115

—

Gain on sales of loans and leases held-for-sale

1,175

264

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

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

(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,

2025

June 30,

2025

March 31, 2025

December 31,

2024

September 30,

2024

(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

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

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 %

0.71 %

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)

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

(annualized)

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

three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

BEACON FINANCIAL CORPORATION. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

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)

$ 1,165,022

$ 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

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

Average Yields / Costs (Unaudited)

Nine Months Ended

September 30, 2025

September 30, 2024

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)

$ 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

vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BEACON FINANCIAL CORPORATION AND SUBSIDIARIES

Non-GAAP Financial Information (Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Reconciliation Table - Non-GAAP Financial Information

(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,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

(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

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

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

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

89,098,443

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