BBT · Beacon Financial Corp.

Beacon Financial Corporation's first quarter 2026 results reflect ongoing integration following its merger with Brookline Bancorp, treated as a reverse acquisition with Brookline as the accounting acquirer, impacting comparability to prior periods. Net income declined to $46.2 million or $0.55 per share from $53.4 million or $0.64 in Q4 2025, primarily due to lower net interest income of $190.8 million (down $8.9 million) driven by reduced interest-earning assets and a 4 basis point contraction in net interest margin to 3.78%, though partially offset by lower funding costs. Non-interest income fell $2.0 million to $23.9 million on reduced deposit fees and loan sale gains, while non-interest expense decreased $1.5 million to $140.8 million, aided by lower merger and restructuring costs with all such expenses now realized post-February core system conversion. Provision for credit losses edged down to $7.9 million, but net charge-offs rose to $13.6 million (30 bps annualized) due to resolutions on a large Boston office loan, equipment financing, and SBA loans. Asset quality softened with nonperforming loans increasing to 0.83% of total loans and nonperforming assets to 0.68% of assets, driven by specific CRE exposures including a $17.5 million Boston office and $8.9 million NYC multifamily properties. Balance sheet showed total assets at $22.2 billion (down $1.0 billion QoQ due to payroll deposit timing), loans at $17.9 billion (down $105 million on CRE and consumer runoff), and deposits at $18.3 billion (down $1.2 billion seasonally). CEO Paul Perrault noted near-term pressures from merger tailwinds but emphasized full synergy capture positioning for stronger performance ahead. Management guides low single-digit loan growth, stable 3.80% NIM with $12 million quarterly purchase accounting accretion, credit costs of $5-9 million per quarter, mid-single digit fee growth, and 26% tax rate. Capital remains robust at 13.3% total risk-based, supporting the $0.3225 dividend (46% operating EPS payout) and new $50 million buyback pending approval.