Beacon Financial Corporation Announces Third Quarter Results

Q: What were Beacon Financial's third-quarter 2026 earnings?

Beacon Financial earned $61.2 million, or $0.73 per basic and diluted share, in the third quarter of 2026. This compares with $64.4 million, or $0.77 per share, in the second quarter and a $4.2 million net loss, or $0.05 per basic share, a year earlier.

Q: How large is Beacon Financial's expanded stock buyback?

The expanded authorization permits repurchases of up to $125 million of shares over 12 months following authorization by regulatory authorities. The program remains subject to regulatory approval.

Q: Why are Beacon Financial's third-quarter 2026 results not directly comparable with 2025?

The September 1, 2025 Brookline merger changed the reporting basis: results for periods ended September 30, 2025 reflect one month of combined activity and eight months of legacy Brookline standalone results. The merger was accounted for as a reverse acquisition, with Brookline as the accounting acquirer and Beacon as the legal acquirer.

Q: What drove Beacon Financial's third-quarter 2026 deposit decline?

The quarterly deposit decline reflected $326.7 million less in payroll deposits and $120.0 million less in customer deposits, partly offset by $143.4 million more in brokered deposits. Despite the lower quarter-end balance, average total deposits increased 1% linked quarter.

Higher net interest income accompanied lower quarterly earnings, while the expanded buyback remains subject to regulatory approval.

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Rhea-AI Summary

Beacon Financial Corporation (NYSE: BBT) reported third-quarter 2026 net income of $61.2 million, down from the preceding quarter. Earnings per share were $0.73, versus $0.77 in the second quarter and a $0.05 loss a year earlier. Net interest income rose to $197.2 million, and net interest margin increased to 3.85% from 3.81%.

The board increased its buyback authorization to up to $125 million, subject to regulatory approval, for 12 months following that approval. A regular $0.3225 dividend is payable November 20, 2026. Loans declined $169.8 million during the quarter to $17.7 billion. Credit-loss provision rose to $8.9 million from $5.0 million, while non-interest expense increased to $132.7 million, including $5.1 million of restructuring expense. The September 2025 Brookline merger limits comparability with prior periods.

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Positive

Moderate point. Forward-looking: it has not happened yet and may not happen.Buyback authorization increased to up to $125 million over 12 months following regulatory authorization. 5.3% of market cap
Moderate pointNet interest income rose to $197.2 million in Q3 2026 from $193.2 million in Q2.
Moderate pointCriticized and classified loans declined to $763 million from $813 million during Q3 2026.
Moderate pointAverage total deposits increased 1% linked quarter.
Moderate pointBorrowed funds decreased $113.1 million quarter over quarter and $305.0 million year over year at September 30, 2026.

11 minor points

Minor pointNet interest margin increased 4 basis points to 3.85% in Q3 2026 from Q2.
Minor pointNon-GAAP operating earnings reached $64.7 million, versus $64.4 million in Q2 and $34.0 million a year earlier.
Minor pointInvestor commercial real estate exposure declined to 295% of total risk-based capital, meeting the merger-announcement goal.
Minor pointNet charge-offs decreased to $13.5 million in Q3 2026 from $14.3 million in Q2.
Minor pointAnnualized net charge-off ratio declined to 30 basis points in Q3 2026 from 32 in Q2.
Minor pointEquity-to-assets ratio rose to 11.52%, versus 11.41% in June and 10.76% a year earlier.
Minor pointNon-GAAP tangible equity-to-tangible-assets ratio rose to 9.35%, versus 9.25% in June and 8.56% a year earlier.
Minor pointCore efficiency ratio improved to 53.54% in Q3 2026 from 54.26% in Q2.
Minor pointTechnology expense decreased $1.0 million quarter over quarter.
Minor pointCompensation and employee benefits expense decreased $0.8 million quarter over quarter.
Minor pointQuarterly effective tax rate declined to 25.0%, from 26.0% in Q2 and 49.8% a year earlier.

Negative

Moderate pointQ3 net income fell to $61.2 million from $64.4 million sequentially, versus a $4.2 million year-earlier loss.
Moderate pointLoans and leases fell $169.8 million quarterly to $17.7 billion, down $653.0 million year over year.
Moderate pointQuarter-end deposits declined $303.3 million sequentially and $721.5 million year over year.
Moderate pointCredit-loss provision increased to $8.9 million from $5.0 million sequentially, reflecting deterioration in three larger commercial real estate loans.
Moderate pointNonperforming assets increased to $163.1 million from $155.2 million sequentially; their asset ratio rose to 0.75% from 0.70%.
Moderate pointNon-interest expense increased to $132.7 million from $127.3 million sequentially, including $5.1 million of restructuring expense.
Moderate pointEfficiency ratio worsened to 59.46% in Q3 2026 from 58.06% in Q2.

10 minor points

Minor pointQ3 EPS declined to $0.73 from $0.77 sequentially, versus a $0.05 year-earlier loss.
Minor pointExpanded buyback remains subject to regulatory approval.
Minor pointCustomer deposits decreased $120.0 million quarterly and $31.3 million year over year.
Minor pointNonperforming loan-and-lease ratio increased to 0.91% at September 30, 2026, from 0.86% in June.
Minor pointAnnualized return on average assets declined to 1.11% in Q3 2026 from 1.17% in Q2.
Minor pointAnnualized return on average equity declined to 9.55% in Q3 2026 from 10.15% in Q2.
Minor pointNon-GAAP annualized return on average tangible equity declined to 12.02% from 12.84% sequentially.
Minor pointTangible book value fell to $23.81 per share from $23.98 sequentially, but exceeded $22.75 a year earlier.
Minor pointBook value fell to $30.04 per share from $30.30 sequentially, but exceeded $29.33 a year earlier.
Minor pointNine-month effective tax rate rose to 26.7% in 2026 from 20.9% a year earlier.

News Explained

At September 30, 2026, nonperforming assets rose to 0.75% of total assets from 0.70% at June 30, 2026, while nonaccrual loans and leases increased to $160.6 million from $152.7 million.

Key Figures

Net income: $61.2 million Diluted EPS: $0.73 per share Operating earnings after tax: $64.7 million +5 more

Net income: $61.2 million; Q3 2026; compared with $64.4 million in Q2 2026 and a $4.2 million net loss in Q3 2025
Diluted EPS: $0.73 per share; Q3 2026; compared with $0.77 in Q2 2026 and a $0.05 loss per share in Q3 2025
Operating earnings after tax: $64.7 million; Q3 2026, non-GAAP; compared with $64.4 million in Q2 2026 and $34.0 million in Q3 2025
Operating EPS: $0.77 per diluted share; Q3 2026, non-GAAP; compared with $0.77 in Q2 2026 and $0.39 in Q3 2025
Quarterly dividend: $0.3225 per share; For the quarter ended September 30, 2026
Stock repurchase authorization: Up to $125 million; Repurchases subject to regulatory approval and authorized for 12 months following regulatory authorization
Net interest margin: 3.85%; Q3 2026; compared with 3.81% in Q2 2026
Provision for credit losses: $8.9 million; Q3 2026; compared with $5.0 million in Q2 2026

Previous Earnings Reports

1 past event · Latest: Jul 29

Same Type 1 event

Jul 29
Q2 earnings report

24h Move

+2.6%

Reported $64.4 million net income and a 3.81% net interest margin.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, net interest margin, reverse acquisition, net charge-offs

4 terms

non-gaap financial

"operating earnings after tax (non-GAAP)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

net interest margin financial

"The net interest margin increased 4 basis points"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

reverse acquisition technical

"accounted for as a reverse acquisition using the acquisition method"

A reverse acquisition is when a private company becomes publicly traded by buying a listed company—often a low-activity “shell”—instead of going through a traditional initial public offering. For investors, it can quickly create tradable shares and access to capital but also reshuffles ownership and can bring limited disclosure or integration risks; think of it as buying an existing storefront to start selling immediately rather than building one from the ground up.

net charge-offs financial

"Total net charge-offs for the third quarter of 2026"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/21/2026 - 04:05 PM EDT

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Beacon Financial's third-quarter 2026 earnings?

Beacon Financial earned $61.2 million, or $0.73 per basic and diluted share, in the third quarter of 2026. This compares with $64.4 million, or $0.77 per share, in the second quarter and a $4.2 million net loss, or $0.05 per basic share, a year earlier.

How large is Beacon Financial's expanded stock buyback?

The expanded authorization permits repurchases of up to $125 million of shares over 12 months following authorization by regulatory authorities. The program remains subject to regulatory approval.

Why are Beacon Financial's third-quarter 2026 results not directly comparable with 2025?

The September 1, 2025 Brookline merger changed the reporting basis: results for periods ended September 30, 2025 reflect one month of combined activity and eight months of legacy Brookline standalone results. The merger was accounted for as a reverse acquisition, with Brookline as the accounting acquirer and Beacon as the legal acquirer.

What drove Beacon Financial's third-quarter 2026 deposit decline?

The quarterly deposit decline reflected $326.7 million less in payroll deposits and $120.0 million less in customer deposits, partly offset by $143.4 million more in brokered deposits. Despite the lower quarter-end balance, average total deposits increased 1% linked quarter.

Beacon Financial Corporation Announces Third Quarter Results