Beacon Financial Corporation Announces Third Quarter Results

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 carl.carlson@beaconbank.com MEDIA CONTACT: Contact: Gary Levante Beacon Financial Corporation Chief Marketing Officer (413) 447-1737 gary.levante@beaconbank.com 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 Source: Beacon Financial Corporation