Beacon Financial Corporation Announces Fourth Quarter Results

Net Income of $53.4 million, EPS of $0.64 Operating Earnings (Non-GAAP) of $66.4 million, Operating EPS (Non-GAAP) of $0.79 BOSTON, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Beacon Financial Corporation (NYSE: BBT) (the “Company”) today announced net income of $53.4 million, or $0.64 per basic and diluted share, for the fourth quarter of 2025. For the year ended December 31, 2025, the Company reported net income of $90.3 million, or $1.03 per basic and diluted share. For the year ended December 31, 2025, excluding $70.1 million of merger-related charges, operating earnings after tax (non-GAAP) was $142.3 million, or $1.63 per basic share and $1.62 per diluted share. “We’re beginning to build momentum as we closed 2025 with the strength of the combined Beacon organization and ongoing synergies created by our merger of equals,” commented Paul Perrault, the Company's President and Chief Executive Officer. “I’m proud of the hard work and dedication of our colleagues who provide exceptional service to support our clients and are working to drive meaningful performance improvements across the organization. Their leadership, resilience, and collaboration are integral to our ability to deliver an enhanced experience for those we serve while building the foundation for long-term success.” Presentation of Results - The Merger The Company’s merger of equals (the “Merger”) with Brookline Bancorp, Inc. (“Brookline”) was accounted for as a reverse acquisition using the acquisition method of accounting, with the Company treated as the legal acquirer and Brookline treated as the accounting acquirer for financial reporting purposes. The Company’s financial results for any periods ended on or prior to June 30, 2025 reflect Brookline’s results only on a standalone basis. As a result, the Company’s financial results for the fourth quarter of 2025 may not be directly comparable to prior reported periods. BALANCE SHEET Total assets at December 31, 2025 increased $352.9 million to $23.2 billion from $22.9 billion at September 30, 2025, and increased $11.3 billion from $11.9 billion at December 31, 2024, primarily due to the assets assumed in the Merger. At December 31, 2025, total loans and leases were $18.0 billion, representing a decrease of $275.8 million from September 30, 2025, driven by a decline in investment commercial real estate loans of $235.5 million and increased $8.3 billion from December 31, 2024, primarily due to the loans and leases assumed in the Merger. Total investment securities at December 31, 2025 decreased $50.7 million to $1.69 billion from $1.74 billion at September 30, 2025 due to scheduled repayments and limited purchases during the fourth quarter, and increased $793.7 million from $895.0 million at December 31, 2024 primarily due to investment securities assumed in the Merger, partially offset by the sale of $176.4 million of the legacy Berkshire Hills Bancorp, Inc.'s investment portfolio during the third quarter. Total cash and cash equivalents at December 31, 2025 increased $821.1 million to $2.0 billion from $1.2 billion at September 30, 2025 primarily due to an increase in payroll deposits, and increased $1.5 billion from $543.7 million at December 31, 2024, primarily due to cash and equivalents assumed in the Merger. As of December 31, 2025, total investment securities and total cash and cash equivalents represented 16.07 percent of total assets, compared to 12.94 percent and 12.08 percent as of September 30, 2025 and December 31, 2024, respectively. Total deposits at December 31, 2025 increased $610.6 million to $19.5 billion from $18.9 billion at September 30, 2025, consisting of a $260.5 million increase in customer deposits and a $845.6 million increase in payroll deposits, partially offset by a $495.5 million decrease in brokered deposits. Total deposits increased $10.6 billion from $8.9 billion at December 31, 2024, primarily due to the deposits assumed in the Merger. Total borrowed funds at December 31, 2025 decreased $292.2 million to $788.4 million from September 30, 2025, and decreased $731.5 million from $1.5 billion at December 31, 2024 as combined liquidity as a result of the Merger and the increase in deposits allowed for reduction in borrowings. The ratio of stockholders’ equity to total assets was 10.75 percent at December 31, 2025, compared to 10.76 percent at September 30, 2025, and 10.26 percent at December 31, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.62 percent at December 31, 2025, compared to 8.56 percent at September 30, 2025, and 8.27 percent at December 31, 2024. Tangible book value per common share (non-GAAP) increased $0.57 from $22.75 at September 30, 2025 to $23.32 at December 31, 2025, and increased $12.51 from $10.81 at December 31, 2024. NET INTEREST INCOME Net interest income increased $70.9 million to $199.7 million during the fourth quarter of 2025 from $128.9 million for the quarter ended September 30, 2025. The net interest margin increased 20 basis points to 3.82 percent for the three months ended December 31, 2025 from 3.62 percent for the three months ended September 30, 2025. NON-INTEREST INCOME Total non-interest income for the quarter ended December 31, 2025 increased $13.6 million to $25.9 million from $12.3 million for the quarter ended September 30, 2025. The fourth quarter included three months of combined results compared to one month in the prior quarter. PROVISION FOR CREDIT LOSSES The Company recorded a provision for credit losses of $8.1 million for the quarter ended December 31, 2025, compared to $20.3 million for the quarter ended September 30, 2025. The $20.3 million provision in the third quarter included provisioning aspects related to the Merger, predominately around the provision for unfunded commitments which was not impacted by the adoption of ASU 2025-08. On a comparable basis, the third quarter provision was $11.1 million. This improvement reflects the steady credit performance of Beacon Bank & Trust in the fourth quarter as risk rating migration improved during the quarter with criticized and classified loans remaining flat quarter over quarter, compared to the deterioration in the third quarter. Total net charge-offs for the fourth quarter of 2025 were $9.0 million, compared to $15.9 million in the third quarter of 2025. The $9.0 million in net charge-offs were primarily driven by resolutions to a large Boston office loan, a distressed mall loan, and an equipment financing loan. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 20 basis points for the fourth quarter of 2025 from 51 basis points for the third quarter of 2025. The allowance for loan and lease losses represented 1.40 percent of total loans and leases at December 31, 2025, compared to 1.39 percent at September 30, 2025, and 1.28 percent at December 31, 2024. The increase in the ratio during the quarter was largely driven by an increase in specific reserves, predominantly related to several Eastern Funding credits, two rent controlled multi-family properties in New York, and a large asset based lending transaction. These increases in specific reserves were offset by a reduction in outstanding loans during the quarter. ASSET QUALITY The ratio of total nonperforming loans and leases to total loans and leases was 0.63 percent at December 31, 2025 compared to 0.54 percent at September 30, 2025. Total nonaccrual loans and leases increased $15.5 million to $114.2 million at December 31, 2025 from $98.6 million at September 30, 2025. The ratio of nonperforming assets to total assets was 0.50 percent at December 31, 2025 compared to 0.45 percent at September 30, 2025. Total nonperforming assets increased $14.8 million to $116.7 million at December 31, 2025 from $102.0 million at September 30, 2025. The increase in nonperforming assets was largely driven by a $9 million office loan in Boston with approximately 50 percent specific reserve. NON-INTEREST EXPENSE Non-interest expense, excluding merger and restructuring expense (Non-GAAP), for the quarter ended December 31, 2025 increased $44.5 million to $127.9 million from $83.4 million for the quarter ended September 30, 2025. The fourth quarter included three months of combined results compared to one month in the prior quarter. PROVISION FOR INCOME TAXES The effective tax rate was 29.0 percent and 25.9 percent for the three and twelve months ended December 31, 2025. RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY The annualized return on average assets increased to 0.94 percent during the fourth quarter of 2025, compared to (0.11) percent for the third quarter of 2025; and was 0.59 percent for the year ended December 31, 2025, compared to 0.60 percent for the year ended December 31, 2024. The annualized return on average tangible stockholders' equity (non-GAAP) increased to 11.19 percent during the fourth quarter of 2025 compared to (1.27) percent for the third quarter of 2025; and was 6.92 percent for the year ended December 31, 2025 compared to 7.24 percent for the year ended December 31, 2024. ACCOUNTING ADOPTION During the fourth quarter, FASB issued ASU 2025‑08, Financial Instruments – Credit Losses – Purchased Loans. This ASU aligns the initial recognition of the allowance for loan losses on purchased loans between PCD and non‑PCD assets by applying the gross‑up approach previously required only for PCD loans. The Company elected to adopt the ASU, effective January 1, 2025, and applied it to the Merger completed in the third quarter, as permitted under the guidance. The third quarter results presented in this release have been updated to reflect the adoption. DIVIDEND DECLARED The Company’s Board of Directors approved a dividend of $0.3225 per share for the quarter ended December 31, 2025. The dividend will be paid on February 27, 2026 to stockholders of record on February 13, 2026. CONFERENCE CALL The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 29, 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, 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/590872928. To listen to the call without access to the slides, please dial 800-715-9871 (United States) or 646-307-1963 (internationally) and ask for the Beacon Financial Corporation conference call (Conference ID: 6567963). A recording 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) 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 $23.2 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, possible U.S. government shutdowns, 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; the risk that the Company fails to realize the anticipated results of the Merger; 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: BEACON FINANCIAL CORPORATION AND SUBSIDIARIESSelected Financial Highlights (Unaudited) At and for the Three Months EndedAt and for the Twelve Months Ended December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024December 31, 2025December 31, 2024 (Dollars In Thousands Except per Share Data)Earnings Data: Net interest income$199,741 $128,850 $88,685 $85,830 $84,988 $503,106 $329,585 Provision for credit losses on loans and unfunded commitments 8,141 20,268 6,997 5,974 4,141 41,380 22,003 Provision (credit) for credit losses on investments (35) 32 3 12 (104) 12 (359)Non-interest income 25,918 12,345 5,970 5,660 6,587 49,893 25,615 Non-interest expense 142,366 129,296 58,061 60,022 63,719 389,745 241,865 Income (loss) before provision for income taxes 75,187 (8,401) 29,594 25,482 23,819 121,862 91,691 Net income (loss) 53,366 (4,221) 22,026 19,100 17,536 90,271 68,715 Performance Ratios: Net interest margin (1) 3.82% 3.62% 3.32% 3.22% 3.12% 3.56% 3.06%Interest-rate spread (1) 3.15% 2.94% 2.57% 2.38% 2.35% 2.82% 2.24%Return on average assets (annualized) 0.94% (0.11)% 0.77% 0.66% 0.61% 0.59% 0.60%Return on average tangible assets (annualized) (non-GAAP) 0.97% (0.11)% 0.79% 0.68% 0.62% 0.61% 0.61%Return on average stockholders' equity (annualized) 8.70% (1.01)% 7.04% 6.19% 5.69% 5.44% 5.67%Return on average tangible stockholders' equity (annualized) (non-GAAP) 11.19% (1.27)% 8.85% 7.82% 7.21% 6.92% 7.24%Efficiency ratio (2) 63.09% 91.57% 61.34% 65.60% 69.58% 70.48% 68.09% Per Common Share Data: Net income (loss) — Basic$0.64 $(0.05)$0.25 $0.21 $0.20 $1.03 $0.77 Net income (loss) — Diluted 0.64 (0.05) 0.25 0.21 0.20 1.03 0.77 Cash dividends declared 0.3225 0.3225 0.135 0.135 0.135 0.9150 0.540 Book value per share (end of period) 29.78 29.33 14.08 13.92 13.71 29.78 13.71 Tangible book value per common share (end of period) (non-GAAP) 23.32 22.75 11.20 11.03 10.81 23.32 10.81 Stock price (end of period) 26.37 23.71 10.55 10.90 11.80 26.37 11.80 Balance Sheet: Total assets$23,220,372 $22,867,458 $11,568,745 $11,519,869 $11,905,326 $23,220,372 $11,905,326 Total loans and leases$18,029,552 $18,305,379 $9,582,374 $9,642,722 $9,779,288 $18,029,552 $9,779,288 Total deposits$19,514,657 $18,904,063 $8,961,202 $8,911,452 $8,901,644 $19,514,657 $8,901,644 Total stockholders’ equity$2,496,061 $2,461,015 $1,254,171 $1,240,182 $1,221,939 $2,496,061 $1,221,939 Asset Quality: Nonperforming assets 116,747 101,990 63,596 64,021 70,452 116,747 70,452 Nonperforming assets as a percentage of total assets 0.50% 0.45% 0.55% 0.56% 0.59% 0.50% 0.59%Allowance for loan and lease losses 252,839 253,735 126,725 124,145 125,083 252,839 125,083 Allowance for loan and lease losses as a percentage of total loans and leases 1.40% 1.39% 1.32% 1.29% 1.28% 1.40% 1.28%Net loan and lease charge-offs 9,019 15,857 5,127 7,597 7,252 37,600 28,228 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.20% 0.51% 0.21% 0.31% 0.30% 0.30% 0.29% Capital Ratios: Stockholders’ equity to total assets 10.75% 10.76% 10.84% 10.77% 10.26% 10.75% 10.26%Tangible stockholders’ equity to tangible assets (non-GAAP) 8.62% 8.56% 8.82% 8.73% 8.27% 8.62% 8.27% (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. BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited) December 31, 2025September 30, 2025 June 30, 2025March 31, 2025 December 31, 2024ASSETS(In Thousands Except Share Data)Cash and due from banks$201,557$182,251 $87,386$78,741 $64,673Short-term investments1,840,1881,038,369 419,362278,805 478,997Total cash and cash equivalents2,041,7451,220,620 506,748357,546 543,670Investment securities available-for-sale1,688,7681,739,423 866,684882,353 895,034Total investment securities1,688,7681,739,423 866,684882,353 895,034Allowance for investment security losses(94)(129) (97)(94) (82)Net investment securities1,688,6741,739,294 866,587882,259 894,952Loans and leases held-for-sale—83,330 ————Loans and leases: Commercial real estate loans10,012,09410,247,090 5,485,5465,580,982 5,716,114Commercial loans and leases3,947,3633,950,693 2,520,3472,512,912 2,506,664Consumer loans4,070,0954,107,596 1,576,4811,548,828 1,556,510Total loans and leases18,029,55218,305,379 9,582,3749,642,722 9,779,288Allowance for loan and lease losses(252,839)(253,735) (126,725)(124,145) (125,083)Net loans and leases17,776,71318,051,644 9,455,6499,518,577 9,654,205Restricted equity securities87,43899,431 66,48167,537 83,155Premises and equipment, net of accumulated depreciation163,070158,375 83,96384,439 86,781Right-of-use asset operating leases82,81784,238 42,41544,144 43,527Deferred tax asset150,504178,456 52,32552,176 56,620Goodwill351,613353,471 241,222241,222 241,222Identified intangible assets, net of accumulated amortization189,562198,339 14,60016,030 17,461Other real estate owned and repossessed assets2,5913,360 1,288917 1,103Cash surrender value of bank-owned life insurance policies334,442332,840 85,47984,959 84,448Other assets351,203364,060 151,988170,063 198,182Total assets$23,220,372$22,867,458 $11,568,745$11,519,869 $11,905,326LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Non-interest-bearing deposits: Demand checking accounts$4,032,529$3,905,559 $1,726,933$1,664,629 $1,692,394Interest-bearing deposits: NOW accounts1,445,8941,470,808 650,707625,492 617,246Savings accounts2,954,0292,904,888 1,795,7611,793,852 1,721,247Money market accounts6,515,3065,589,693 2,153,7092,183,855 2,116,360Certificate of deposit accounts4,156,5404,127,226 1,877,6611,878,665 1,885,444Brokered deposit accounts410,359905,889 756,431764,959 868,953Total interest-bearing deposits15,482,12814,998,504 7,234,2697,246,823 7,209,250Total deposits19,514,65718,904,063 8,961,2028,911,452 8,901,644Borrowed funds: Advances from the FHLB555,788841,044 934,669957,848 1,355,926Subordinated debentures and notes198,572198,283 84,39784,362 84,328Other borrowed funds34,00041,189 135,985113,617 79,592Total borrowed funds788,3601,080,516 1,155,0511,155,827 1,519,846Operating lease liabilities90,71392,211 43,52845,330 44,785Mortgagors’ escrow accounts15,50811,179 15,28915,264 15,875Reserve for unfunded credits13,74613,727 4,5865,296 5,981Accrued expenses and other liabilities301,327304,747 134,918146,518 195,256Total liabilities20,724,31120,406,443 10,314,57410,279,687 10,683,387Stockholders' equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 89,576,403 shares issued, 89,576,403 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively896896 970970 970Additional paid-in capital2,171,8852,171,912 904,697903,696 902,584Retained earnings485,862459,598 475,781465,898 458,943Accumulated other comprehensive income(20,002)(28,905) (39,378)(42,498) (52,882)Treasury stock, at cost; 5,545,511 shares, 5,449,039 shares, 7,039,136 shares, 7,037,610 shares, and 7,019,384 shares, respectively(142,580)(142,486) (87,899)(87,884) (87,676)Total stockholders' equity2,496,0612,461,015 1,254,1711,240,182 1,221,939Total liabilities and stockholders' equity$23,220,372$22,867,458 $11,568,745$11,519,869 $11,905,326 BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$285,795 $194,517 $143,933 $143,309$147,436 Debt securities 16,335 10,984 6,691 6,765 6,421 Restricted equity securities 1,160 1,466 1,062 1,203 1,460 Short-term investments 9,293 5,438 2,386 2,451 2,830 Total interest and dividend income 312,583 212,405 154,072 153,728 158,147 Interest expense: Deposits 102,439 71,901 52,682 53,478 56,562 Borrowed funds 10,403 11,654 12,705 14,420 16,597 Total interest expense 112,842 83,555 65,387 67,898 73,159 Net interest income 199,741 128,850 88,685 85,830 84,988 Provision for credit losses on loans and unfunded commitments 8,141 20,268 6,997 5,974 4,141 Provision (recovery) of credit losses on investments (35) 32 3 12 (104)Net interest income after provision for credit losses 191,635 108,550 81,685 79,844 80,951 Non-interest income: Deposit fees 9,843 5,005 2,472 2,361 2,297 Loan fees 2,189 1,004 472 393 439 Loan level derivative income (loss) 721 635 (4) 70 1,115 Gain on sales of loans and leases 4,154 1,175 264 24 406 Wealth management fees 4,370 2,466 1,421 1,491 1,608 Other 4,641 2,060 1,345 1,321 722 Total non-interest income 25,918 12,345 5,970 5,660 6,587 Non-interest expense: Compensation and employee benefits 70,204 49,999 35,147 35,853 37,202 Occupancy 11,877 6,921 5,349 5,721 5,393 Equipment and data processing 19,754 11,110 6,841 7,012 6,780 Professional services 2,778 2,114 1,471 1,726 1,345 FDIC insurance 1,924 1,971 1,880 2,037 2,017 Advertising and marketing 2,157 1,583 1,371 868 1,303 Amortization of identified intangible assets 8,777 3,587 1,431 1,430 1,701 Other 10,471 6,148 4,132 4,404 4,600 Total non-interest operating expense 127,942 83,433 57,622 59,051 60,341 Merger and restructuring expense 14,424 45,863 439 971 3,378 Total non-interest expense 142,366 129,296 58,061 60,022 63,719 Income (loss) before provision for income taxes 75,187 (8,401) 29,594 25,482 23,819 Provision (benefit) for income taxes 21,821 (4,180) 7,568 6,382 6,283 Net income (loss)$53,366 $(4,221)$22,026 $19,100$17,536 Earnings per common share: Basic$0.64 $(0.05)$0.25 $0.21$0.20 Diluted$0.64 $(0.05)$0.25 $0.21$0.20 Weighted average common shares outstanding during the period: Basic 83,851,381 87,508,517 89,104,605 89,103,510 89,098,443 Diluted 83,878,047 87,832,552 89,612,781 89,567,747 89,483,964 Dividends paid per common share$0.3225 $0.3225 $0.135 $0.135$0.135 BEACON FINANCIAL CORPORATION AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Twelve Months Ended December 31, 2025 2024 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$767,554$587,929 Debt securities 40,775 26,252 Restricted equity securities 4,891 5,786 Short-term investments 19,568 8,554 Total interest and dividend income 832,788 628,521 Interest expense: Deposits 280,500 232,963 Borrowed funds 49,182 65,973 Total interest expense 329,682 298,936 Net interest income 503,106 329,585 Provision for credit losses on loans and unfunded commitments 41,380 22,003 Provision (recovery) of credit losses on investments 12 (359)Net interest income after provision for credit losses 461,714 307,941 Non-interest income: Deposit fees 19,681 10,548 Loan fees 4,058 2,394 Loan level derivative income, net 1,422 1,658 Gain on sales of loans and leases held-for-sale 5,617 951 Wealth management fees 9,748 5,990 Other 9,367 4,074 Total non-interest income 49,893 25,615 Non-interest expense: Compensation and employee benefits 191,203 143,723 Occupancy 29,868 22,056 Equipment and data processing 44,717 27,374 Professional services 8,089 7,133 FDIC insurance 7,812 8,044 Advertising and marketing 5,979 5,240 Amortization of identified intangible assets 15,225 6,746 Other 25,155 17,348 Total non-interest operating expense 328,048 237,664 Merger and restructuring expense 61,697 4,201 Total non-interest expense 389,745 241,865 Income before provision for income taxes 121,862 91,691 Provision for income taxes 31,591 22,976 Net income$90,271$68,715 Earnings per common share: Basic$1.03$0.77 Diluted$1.03$0.77 Weighted average common shares outstanding during the period: Basic 87,428,572 88,983,248 Diluted 87,752,206 89,302,304 Dividends paid per common share$0.9150$0.540 BEACON FINANCIAL CORPORATION AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024 (Dollars in Thousands)NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage$41,246 $30,213 $987 $10,842 $11,525 Multi-family mortgage 4,065 2,994 1,433 6,576 6,596 Construction — 535 — — — Total commercial real estate loans 45,311 33,742 2,420 17,418 18,121 Commercial 16,716 14,035 8,687 7,415 14,676 Equipment financing 42,718 41,793 46,067 32,975 31,509 Total commercial loans and leases 59,434 55,828 54,754 40,390 46,185 Residential mortgage 6,465 6,597 3,572 3,962 3,999 Home equity 2,739 2,220 1,561 1,333 1,043 Other consumer 207 243 1 1 1 Total consumer loans 9,411 9,060 5,134 5,296 5,043 Total nonaccrual loans and leases 114,156 98,630 62,308 63,104 69,349 Other real estate owned — 824 700 700 700 Other repossessed assets 2,591 2,536 588 217 403 Total nonperforming assets$116,747 $101,990 $63,596 $64,021 $70,452 Loans and leases past due greater than 90 days and still accruing$37,823 $23,570 $24,899 $3,009 $811 Nonperforming loans and leases as a percentage of total loans and leases 0.63% 0.54% 0.65% 0.65% 0.71%Nonperforming assets as a percentage of total assets 0.50% 0.45% 0.55% 0.56% 0.59% PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period$253,735 $126,725 $124,145 $125,083 $127,316 Merger Day 1 allowance on non-PCD loans * 0 67,229 0 0 0 Merger Day 1 allowance on PCD loans 0 64,511 0 0 0 Charge-offs (10,917) (16,661) (5,601) (9,073) (8,414)Recoveries 1,898 804 474 1,476 1,162 Net charge-offs **$(9,019)$(15,857)$(5,127)$(7,597)$(7,252)Provision for loan and lease losses excluding unfunded commitments *** 8,123 11,127 7,707 6,659 5,019 Allowance for loan and lease losses at end of period$252,839 $253,735 $126,725 $124,145 $125,083 Allowance for loan and lease losses as a percentage of total loans and leases 1.40% 1.39% 1.32% 1.29% 1.28% NET CHARGE-OFFS: Commercial real estate loans$6,598 $819 $3,524 $0 $0 Commercial loans and leases 2,799 15,116 1,640 7,647 7,257 Consumer loans (378) (78) (37) (50) (5)Total net charge-offs **$9,019 $15,857 $5,127 $7,597 $7,252 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.20% 0.51% 0.21% 0.31% 0.30% *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 (credit) provision of $(0.0 million), $9.1 million of which $8.4 million was related to Merger Day 1, $(0.7 million), $(0.7 million), and $(0.9 million) for credit losses on unfunded commitments during the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively. BEACON FINANCIAL CORPORATION AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended December 31, 2025September 30, 2025December 31, 2024 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost (Dollars in Thousands)Assets: Interest-earning assets: Investments: Debt securities (2)$1,701,105$17,0284.00%$1,165,022$11,2733.87%$856,065$6,4633.02%Restricted equity securities (2) 90,227 1,1635.16% 73,853 1,4677.95% 75,879 1,4597.69%Short-term investments 935,845 9,2933.97% 448,044 5,4384.85% 236,784 2,8304.78%Total investments 2,727,177 27,4844.03% 1,686,919 18,1784.31% 1,168,728 10,7523.68%Loans and Leases: Commercial real estate loans (3) 10,124,749 152,7805.90% 7,013,916 105,2875.87% 5,752,591 81,1955.52%Commercial loans (3) 2,795,135 47,9586.72% 1,818,012 30,1156.48% 1,170,295 19,7506.61%Equipment financing (3) 1,182,376 25,2068.53% 1,209,797 24,6928.16% 1,310,143 26,2958.03%Consumer loans (3) 4,102,433 60,9075.92% 2,505,760 35,1035.59% 1,529,654 20,8815.44%Total loans and leases 18,204,693 286,8516.30% 12,547,485 195,1976.22% 9,762,683 148,1216.07%Total interest-earning assets 20,931,870 314,3356.01% 14,234,404 213,3756.00% 10,931,411 158,8735.81%Non-interest-earning assets 1,712,611 975,676 649,161 Total assets$22,644,481 $15,210,080 $11,580,572 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$1,445,932 2,9530.81%$917,794 1,7860.77%$630,408 1,0560.67%Savings accounts 2,939,288 14,7701.99% 2,201,808 12,8672.32% 1,741,355 10,8962.49%Money market accounts 5,546,257 37,3472.67% 3,324,253 23,1312.76% 2,083,033 13,8562.65%Certificates of deposit 4,150,590 39,4383.77% 2,607,493 24,9563.80% 1,857,483 20,6914.43%Brokered deposit accounts 739,874 7,9314.25% 823,059 9,1614.42% 797,910 10,0635.02%Total interest-bearing deposits 14,821,941 102,4392.74% 9,874,407 71,9012.89% 7,110,189 56,5623.16%Borrowings: Advances from the FHLB 607,594 6,5334.21% 792,455 8,7094.30% 1,144,157 13,9584.77%Subordinated debentures and notes 198,411 3,6237.30% 121,526 2,3947.88% 84,311 1,9449.22%Other borrowed funds 38,089 2472.57% 42,303 5515.16% 65,947 6954.20%Total borrowings 844,094 10,4034.82% 956,284 11,6544.77% 1,294,415 16,5975.02%Total interest-bearing liabilities 15,666,035 112,8422.86% 10,830,691 83,5553.06% 8,404,604 73,1593.46%Non-interest-bearing liabilities: Demand checking accounts 3,982,227 2,414,119 1,693,138 Other non-interest-bearing liabilities 542,739 287,062 250,303 Total liabilities 20,191,001 13,531,872 10,348,045 Stockholders’ equity 2,453,480 1,678,208 1,232,527 Total liabilities and equity$22,644,481 $15,210,080 $11,580,572 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 201,4933.15% 129,8202.94% 85,7142.35%Less adjustment of tax-exempt income 1,752 970 726 Net interest income $199,741 $128,850 $84,988 Net interest margin (5) 3.82% 3.62% 3.12% (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. BEACON FINANCIAL CORPORATION AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Twelve Months Ended December 31, 2025December 31, 2024 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost (Dollars in Thousands)Assets: Interest-earning assets: Investments: Debt securities (2)$1,159,559$41,8673.61%$862,381$26,4163.06%Restricted equity securities (2) 74,950 4,8966.53% 74,788 5,7867.74%Short-term investments 468,981 19,5684.17% 164,445 8,5545.20%Total investments 1,703,490 66,3313.89% 1,101,614 40,7563.70%Loans and Leases: Commercial real estate loans (3) 7,092,889 412,4465.74% 5,760,432 327,2215.59%Commercial loans (3) 1,788,703 118,4386.53% 1,086,460 73,3696.65%Equipment financing (3) 1,228,050 101,0228.23% 1,352,993 106,3297.86%Consumer loans (3) 2,435,721 138,3085.68% 1,501,626 82,2735.47%Total loans and leases 12,545,363 770,2146.14% 9,701,511 589,1926.07%Total interest-earning assets 14,248,853 836,5455.87% 10,803,125 629,9485.83%Non-interest-earning assets 981,795 670,299 Total assets$15,230,648 $11,473,424 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$909,733 6,7780.75%$650,225 4,5430.70%Savings accounts 2,169,779 48,5022.24% 1,726,504 46,2202.68%Money market accounts 3,321,102 88,0552.65% 2,056,066 60,7962.96%Certificates of deposit 2,637,193 102,4243.88% 1,737,697 76,1344.38%Brokered deposit accounts 769,674 34,7414.51% 873,182 45,2705.18%Total interest-bearing deposits 9,807,481 280,5002.86% 7,043,674 232,9633.31%Borrowings: Advances from the FHLB 826,796 37,5114.47% 1,124,432 55,8514.89%Subordinated debentures and notes 122,476 9,4367.70% 84,258 6,0747.21%Other borrowed funds 49,374 2,2354.53% 78,859 4,0485.13%Total borrowings 998,646 49,1824.86% 1,287,549 65,9735.04%Total interest-bearing liabilities 10,806,127 329,6823.05% 8,331,223 298,9363.59%Non-interest-bearing liabilities: Demand checking accounts 2,439,121 1,657,922 Other non-interest-bearing liabilities 327,262 273,243 Total liabilities 13,572,510 10,262,388 Stockholders’ equity 1,658,138 1,211,036 Total liabilities and equity$15,230,648 $11,473,424 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 506,8632.82% 331,0122.24%Less adjustment of tax-exempt income 3,757 1,427 Net interest income $503,106 $329,585 Net interest margin (5) 3.56% 3.06% (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. BEACON FINANCIAL CORPORATION AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months Ended December 31,At and for the Twelve Months Ended December 31, 2025 2024 2025 2024 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Reported Pretax Income $75,187 $23,819 $121,862 $91,691 Add: Merger Day 1 CECL provision on unfunded commitments — — 8,415 — Merger and restructuring expenses 14,424 3,378 61,697 4,201 Operating Pretax income $89,611 $27,197 $191,974 $95,892 Effective tax rate 25.9% 23.9% 25.9% 24.5%Provision for income tax 23,209 6,511 49,721 23,480 Operating earnings after tax $66,402 $20,686 $142,253 $72,412 Operating earnings per common share: Basic $0.79 $0.23 $1.63 $0.81 Diluted $0.79 $0.23 $1.62 $0.81 Weighted average common shares outstanding during the period: Basic 83,851,381 89,098,443 87,428,572 88,983,248 Diluted 83,878,047 89,483,964 87,752,206 89,302,304 Return on average assets * 0.94% 0.61% 0.59% 0.60%Add: Merger Day 1 CECL provision (after-tax) * —% —% 0.04% —%Merger and restructuring expenses (after-tax) * 0.19% 0.09% 0.30% 0.03%Operating return on average assets * 1.13% 0.70% 0.93% 0.63% Return on average tangible assets * 0.97% 0.62% 0.61% 0.61%Add: Merger Day 1 CECL provision (after-tax) * —% —% 0.04% —%Merger and restructuring expenses (after-tax) * 0.19% 0.09% 0.31% 0.03%Operating return on average tangible assets * 1.16% 0.71% 0.96% 0.64% Return on average stockholders' equity * 8.70% 5.69% 5.44% 5.67%Add: Merger Day 1 CECL provision (after-tax) * —% —% 0.38% —%Merger and restructuring expenses (after-tax) * 1.74% 0.83% 2.76% 0.26%Operating return on average stockholders' equity * 10.44% 6.52% 8.58% 5.93% Return on average tangible stockholders' equity * 11.19% 7.21% 6.92% 7.24%Add: Merger Day 1 CECL provision (after-tax) * —% —% 0.48% —%Merger and restructuring expenses (after-tax) * 2.24% 1.06% 3.51% 0.33%Operating return on average tangible stockholders' equity * 13.43% 8.27% 10.91% 7.57%* Ratios at and for the three months ended are annualized. BEACON FINANCIAL CORPORATION AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months EndedAt and for the Twelve Months Ended December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024December 31, 2025December 31, 2024 (Dollars in Thousands) Net income (loss), as reported$53,366 $(4,221)$22,026 $19,100 $17,536 $90,271 $68,715 Average total assets$22,644,481 $15,210,080 $11,402,934 $11,543,330 $11,580,572 $15,230,648 $11,473,424 Less: Average goodwill and average identified intangible assets, net 546,276 353,189 256,508 257,941 259,496 354,267 262,011 Average tangible assets$22,098,205 $14,856,891 $11,146,426 $11,285,389 $11,321,076 $14,876,381 $11,211,413 Return on average tangible assets (annualized) 0.97% (0.11)% 0.79% 0.68% 0.62% 0.61% 0.61% Average total stockholders’ equity$2,453,480 $1,678,208 $1,252,055 $1,235,201 $1,232,527 $1,658,138 $1,211,036 Less: Average goodwill and average identified intangible assets, net 546,276 353,189 256,508 257,941 259,496 354,267 262,011 Average tangible stockholders’ equity$1,907,204 $1,325,019 $995,547 $977,260 $973,031 $1,303,871 $949,025 Return on average tangible stockholders’ equity (annualized) 11.19% (1.27)% 8.85% 7.82% 7.21% 6.92% 7.24% Total stockholders’ equity$2,496,061 $2,461,015 $1,254,171 $1,240,182 $1,221,939 $2,496,061 $1,221,939 Less: Goodwill 351,613 353,471 241,222 241,222 241,222 351,613 241,222 Identified intangible assets, net 189,562 198,339 14,600 16,030 17,461 189,562 17,461 Tangible stockholders' equity$1,954,886 $1,909,205 $998,349 $982,930 $963,256 $1,954,886 $963,256 Total assets$23,220,372 $22,867,458 $11,568,745 $11,519,869 $11,905,326 $23,220,372 $11,905,326 Less: Goodwill 351,613 353,471 241,222 241,222 241,222 351,613 241,222 Identified intangible assets, net 189,562 198,339 14,600 16,030 17,461 189,562 17,461 Tangible assets$22,679,197 $22,315,648 $11,312,923 $11,262,617 $11,646,643 $22,679,197 $11,646,643 Tangible stockholders’ equity to tangible assets 8.62% 8.56% 8.82% 8.73% 8.27% 8.62% 8.27% Tangible stockholders' equity$1,954,886 $1,909,205 $998,349 $982,930 $963,256 $1,954,886 $963,256 Number of common shares issued 89,576,403 89,576,403 96,998,075 96,998,075 96,998,075 89,576,403 96,998,075 Less: Treasury shares 5,545,511 5,449,039 7,039,136 7,037,610 7,019,384 5,545,511 7,019,384 Unvested restricted shares 214,806 218,503 854,334 855,860 880,248 214,806 880,248 Number of common shares outstanding 83,816,086 83,908,861 89,104,605 89,104,605 89,098,443 83,816,086 89,098,443 Tangible book value per common share$23.32 $22.75 $11.20 $11.03 $10.81 $23.32 $10.81  PDF available: http://ml.globenewswire.com/Resource/Download/1b9cf463-67b5-4391-8f76-dd2ee48cd68e Source: Beacon Financial Corporation