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Beacon Financial Corporation Announces Third Quarter Results Reflecting One-Time Costs Associated with the Merger of Equals between
Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc.
Net Loss of $(56.3) million, EPS of $(0.64)
Operating Earnings of $38.5 million, Operating EPS of $0.44
Quarterly Dividend of $0.3225

BOSTON -- October 29, 2025 -- Beacon Financial Corporation (NYSE: BBT) (the “Company”) today announced a net loss of $(56.3) million, or $(0.64) per basic share, for the third quarter of 2025, compared to net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, and $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024.
Effective September 1, 2025, Berkshire Hills Bancorp, Inc. (“Berkshire”) and Brookline Bancorp, Inc. (“Brookline”) completed the previously announced merger of equals transaction (the “Merger”) to create Beacon Financial Corporation, a premier Northeast financial services company. “The completion of our merger of equals represents a significant milestone as we begin our journey as Beacon Financial Corporation,” commented Paul Perrault, the Company's President and Chief Executive Officer. “The expanded scale of our organization provides a solid foundation for improved profitability, increased stockholder returns and sustained growth throughout the Northeast. Our dedicated teams are collaborating on integration efforts that are proceeding as expected and will culminate with our core system conversion and the rollout of the new Beacon Bank brand in early 2026.”
Financial results for the third quarter of 2025 reflect pre-tax one-time costs of $129.8 million associated with the Merger. Excluding these one-time costs, operating earnings (non-GAAP) were $38.5 million, or $0.44 per diluted share, for the third quarter of 2025. These one-time costs consist of Merger-related expenses of $51.9 million and an increase to the provision of credit losses expense of $77.9 million, also associated with the Merger. Please refer to "Non-GAAP Financial Information" below for a reconciliation of net income to operating earnings.
DISCUSSION OF RESULTS
Presentation of Results - The Merger
The Merger was accounted for as a reverse acquisition using the acquisition method of accounting, with Berkshire treated as the legal acquirer and Brookline treated as the accounting acquirer for financial reporting purposes. The Company recorded the assets and liabilities of Berkshire at their respective fair value as of September 1, 2025. At the time of the Merger, Berkshire contributed, after fair value purchase accounting adjustments, approximately $12.1 billion in assets, $9.1 billion in loans, $1.1 billion in investment securities and $10.3 billion in deposits.
The Company’s financial results for any periods ended on or prior to June 30, 2025 reflect Brookline’s results only on a standalone basis. As a result of this factor and the below listed adjustments related to the Merger, the Company’s financial results for the third quarter of 2025 may not be directly comparable to prior reported periods. The following table outlines the value of the assets acquired and liabilities assumed as of September 1, 2025.




In Thousands
Fair value of consideration transferred:
Value of hypothetical legacy Brookline shares transferred$1,209,451 
Payment of seller transaction expenses6,022 
Conversion of Company stock options1,147 
Cash paid for fractional shares49 
Total purchase consideration 1,216,669 
Fair value of assets acquired:
Cash and due from banks105,440 
Short-term investments978,667 
Investment securities available-for-sale1,102,464 
Loans held for sale3,471 
Loans held for investment, net of allowance for credit losses9,078,979 
Premises and equipment73,368 
Bank owned life insurance246,979 
Accrued interest receivable 49,717 
Core deposit intangible asset174,415 
Customer relationships intangible asset14,000 
Other assets314,956 
Total assets acquired12,142,456 
Fair value of liabilities assumed:
Deposits 10,287,573 
Borrowings 559,402 
Accrued expenses and other liabilities191,060 
Total liabilities assumed11,038,035 
Net assets acquired1,104,421 
Goodwill$112,248 

BALANCE SHEET
Total assets at September 30, 2025 were $22.8 billion. Assets of $12.1 billion were assumed in the Merger. Excluding the impact of the Merger, total assets decreased $0.9 billion from $11.6 billion at June 30, 2025, and decreased $1.0 billion from September 30, 2024.
Total loans and leases were $18.2 billion at September 30, 2025. Loans and leases of $9.1 billion were assumed in the Merger. Excluding the impact of the Merger, loans and leases decreased $419.4 million from June 30, 2025, and decreased $592.3 million from September 30, 2024. The decrease was primarily driven by the sales of $249.3 million of purchased mortgage loans and the transfer of an additional $83.3 million of purchased mortgage loans to held-for-sale, the sale of which is expected to close in the fourth quarter, all of which were assumed as part of the Merger.
Total investment securities at September 30, 2025, excluding the impact of the Merger, decreased $229.7 million to $1.7 billion from June 30, 2025, and decreased $218.4 million from September 30, 2024. The Company assumed $1.1 billion of investment securities in the Merger. During the third quarter, the Company sold $176.4 million of the legacy Berkshire investment portfolio to align the interest rate risk for the combined balance sheet and reduce wholesale funding.
Total cash and cash equivalents at September 30, 2025 decreased $370.2 million to $1.2 billion from June 30, 2025, and decreased $271.4 million from September 30, 2024, excluding the impact of the Merger. The Company


assumed $1.1 billion of cash and cash equivalents in connection with the Merger. As of September 30, 2025, total investment securities and total cash and cash equivalents represented 13.0 percent of total assets as compared to 11.9 percent and 10.8 percent as of June 30, 2025 and September 30, 2024, respectively.
Total deposits as of September 30, 2025, excluding the impact of the Merger, decreased $344.7 million from June 30, 2025. The Company assumed $10.3 billion of deposits in connection with the Merger. The legacy Berkshire deposits include $1.2 billion of payroll deposits and $397.6 million of brokered deposits. Excluding legacy Berkshire deposits, payroll deposits declined $185.4 million and brokered deposits declined $248.1 million, while customer deposits increased $88.8 million from June 30, 2025.
Since September 30, 2024, excluding the impact of the Merger, customer deposits have increased $376.8 million while brokered deposits and payroll deposits declined $307.2 million and $185.4 million, respectively.
Total borrowed funds at September 30, 2025, excluding the impact of the Merger, decreased $633.9 million from June 30, 2025 to $1.1 billion, and decreased $976.4 million from September 30, 2024. The Company assumed $559.4 million in borrowed funds in connection with the Merger
The ratio of stockholders’ equity to total assets was 10.58 percent at September 30, 2025. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.37 percent at September 30, 2025. Tangible book value per common share (non-GAAP) was $22.20 at September 30, 2025.
INCOME STATEMENT
The following information for the three months ended September 30, 2025 includes one month of combined Company activity and two months of legacy Brookline standalone results. For the nine months ended September 30, 2025, the information includes one month of combined Company activity and eight months of legacy Brookline standalone results.
NET INTEREST INCOME
Net interest income increased $43.9 million to $132.6 million during the third quarter of 2025 from $88.7 million for the quarter ended June 30, 2025. The net interest margin increased 40 basis points to 3.72 percent for the three months ended September 30, 2025 from 3.32 percent for the three months ended June 30, 2025. The increase is primarily driven by higher yields for one month on the marked loan portfolio and lower funding costs driven by declines in borrowed funds.
NON-INTEREST INCOME
Total non-interest income for the quarter ended September 30, 2025 increased $6.3 million to $12.3 million from $6.0 million for the quarter ended June 30, 2025. The increase was primarily driven by the one month of combined Company activity which resulted in increases of $2.5 million in deposit fees, $1.0 million in wealth management fees, and $0.9 million in gain on sales of loans and leases from the Small Business Administration ("SBA") business line.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $87.5 million for the quarter ended September 30, 2025, compared to $7.0 million for the quarter ended June 30, 2025. The increase in provision reflects purchase accounting associated with the Merger of $77.9 million including $69.5 million on funded loans and $8.4 million on unfunded commitments. Excluding Merger related accounting adjustments, the provision was $9.6 million, $2.6 million higher than the prior quarter. This increase was reflective of continued stress in the Boston office sector and additional specific reserves on one large Eastern Funding equipment financing credit.
Total net charge-offs for the third quarter of 2025 were $15.9 million compared to $5.1 million in the second quarter of 2025.The $15.9 million in net charge-offs reflect the charge-off of previously reserved amounts of $5.0 million for a C&I credit in the Boston market and $5.7 million for two large Eastern Funding equipment financing credits, with the remaining charge-offs primarily associated with a larger number of smaller 44 Business Capital SBA loans and Eastern Funding equipment financing loans. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 51 basis points for the third quarter of 2025 from 21 basis points for the second quarter of 2025.
The allowance for loan and lease losses represented 1.39 percent of total loans and leases at September 30, 2025, compared to 1.32 percent at June 30, 2025, and 1.31 percent at September 30, 2024.


ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.54 percent at September 30, 2025, a decrease of 0.11 percent from 0.65 percent at June 30, 2025. Total nonaccrual loans and leases increased $36.3 million to $98.6 million at September 30, 2025, from $62.3 million at June 30, 2025. The increase included $23.9 million of nonaccrual loans assumed through the Merger. The remaining increase was driven by one large commercial real estate deal put on nonaccrual during the quarter. The ratio of nonperforming assets to total assets was 0.45 percent at September 30, 2025, a decrease from 0.55 percent at June 30, 2025. Total nonperforming assets increased $38.4 million to $102.0 million at September 30, 2025 from $63.6 million at June 30, 2025.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2025 increased $77.3 million to $135.3 million from $58.1 million for the quarter ended June 30, 2025. The increase was primarily driven by one-time Merger and restructuring expenses of $51.9 million. Excluding these one-time charges, non-interest expense increased $23.2 million driven by one month of combined expenses as well as an increase of $2.2 million in amortization of identified intangible assets.
PROVISION FOR INCOME TAXES
The effective tax rate was 27.8 percent and 33.7 percent for the three and nine months ended September 30, 2025 compared to 25.6 percent for the three months ended June 30, 2025 and 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to (1.48) percent during the third quarter of 2025 from 0.77 percent for the second quarter of 2025.
The annualized return on average stockholders' equity was (13.41) percent for the third quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) was (16.98) percent for the third quarter of 2025.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.3225 per share for the quarter ended September 30, 2025. The dividend will be paid on November 24, 2025 to stockholders of record on November 10, 2025.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 30, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website at beaconfinancialcorporation.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/309414724. To listen to the call without access to the slides, interested parties may dial 800-715-9871 (United States) or 646-307-1963 (internationally) and ask for the Beacon Financial Corporation conference call (Access Code 6567963). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 800-770-2030 (United States & Canada) or 609-800-9909 (internationally) and entering the passcode: 6567963.
ABOUT BEACON FINANCIAL CORPORATION
Beacon Financial Corporation (NYSE: BBT) is the holding company for Beacon Bank & Trust, commonly known as Beacon Bank, a full-service regional bank serving the Northeast that was created on September 1, 2025 through the merger of equals between Berkshire Hills Bancorp, Inc. and Brookline Bancorp, Inc. Headquartered in Boston, the Company has $22.8 billion in assets and more than 145 branches throughout New England and New York. Beacon Bank offers a full suite of tailored banking solutions including commercial, cash management, asset-based lending, retail, consumer and residential products and services. The Bank operates through its banking divisions – Berkshire Bank, Brookline Bank, BankRI, and PCSB Bank. The Company also provides equipment financing through its Eastern Funding subsidiary, SBA lending through its 44 Business Capital division, and private wealth services through Clarendon Private.


FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including the impact of tariffs, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
INVESTOR RELATIONS:
Contact:     Carl M. Carlson
        Beacon Financial Corporation
        Chief Financial and Strategy Officer
        (617) 425-5331
        carl.carlson@brkl.com





MEDIA CONTACT:     
Contact:    Gary Levante
Beacon Financial Corporation
Chief Marketing Officer
(413) 447-1737
glevante@berkshirebank.com


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024		September 30,
2024
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income$132,606 $88,685 $85,830 $84,988 $83,008 
Provision for credit losses on loans87,496 6,997 5,974 4,141 4,832 
Provision (recovery) of credit losses on investments32 3 12 (104)(172)
Non-interest income12,345 5,970 5,660 6,587 6,348 
Non-interest expense135,318 58,061 60,022 63,719 57,948 
(Loss) Income before provision for income taxes(77,895)29,594 25,482 23,819 26,748 
Net (loss) income (56,262)22,026 19,100 17,536 20,142 
Performance Ratios:
Net interest margin (1)3.72 %3.32 %3.22 %3.12 %3.07 %
Interest-rate spread (1)3.04 %2.57 %2.38 %2.35 %2.26 %
Return on average assets (annualized)(1.48)%0.77 %0.66 %0.61 %0.70 %
Return on average tangible assets (annualized) (non-GAAP)(1.51)%0.79 %0.68 %0.62 %0.72 %
Return on average stockholders' equity (annualized)(13.41)%7.04 %6.19 %5.69 %6.63 %
Return on average tangible stockholders' equity (annualized) (non-GAAP)(16.98)%8.85 %7.82 %7.21 %8.44 %
Efficiency ratio (2)93.35 %61.34 %65.60 %69.58 %64.85 %
Per Common Share Data:
Net (loss) income — Basic$(0.64)$0.25 $0.21 $0.20 $0.23 
Net (loss) income — Diluted(0.64)0.25 0.21 0.20 0.23 
Cash dividends declared0.323 0.135 0.135 0.135 0.135 
Book value per share (end of period)28.78 14.08 13.92 13.71 13.81 
Tangible book value per share (end of period) (non-GAAP)22.20 11.20 11.03 10.81 10.89 
Stock price (end of period)23.71 10.55 10.90 11.80 10.09 
Balance Sheet:
Total assets$22,821,439 $11,568,745 $11,519,869 $11,905,326 $11,676,721 
Total loans and leases18,241,907 9,582,374 9,642,722 9,779,288 9,755,236 
Total deposits18,904,063 8,961,202 8,911,452 8,901,644 8,732,271 
Total stockholders’ equity2,414,996 1,254,171 1,240,182 1,221,939 1,230,362 
Asset Quality:
Nonperforming assets$101,990 $63,596 $64,021 $70,452 $72,821 
Nonperforming assets as a percentage of total assets0.45 %0.55 %0.56 %0.59 %0.62 %
Allowance for loan and lease losses$253,735 $126,725 $124,145 $125,083 $127,316 
Allowance for loan and lease losses as a percentage of total loans and leases1.39 %1.32 %1.29 %1.28 %1.31 %
Net loan and lease charge-offs (3)15,857 $5,127 $7,597 $7,252 $3,808 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.51 %0.21 %0.31 %0.30 %0.16 %
Capital Ratios:
Stockholders’ equity to total assets10.58 %10.84 %10.77 %10.26 %10.54 %
Tangible stockholders’ equity to tangible assets (non-GAAP)8.37 %8.82 %8.73 %8.27 %8.50 %
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.
 (3) The balance at September 30, 2025 excludes a $15.8 million Merger Day 1 charge-offs write up.


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
September 30, 2025June 30,
2025		March 31,
2025		December 31,
2024		September 30, 2024
ASSETS(In Thousands Except Share Data)
Cash and due from banks$182,251 $87,386 $78,741 $64,673 $82,168 
Short-term investments1,038,369 419,362 278,805 478,997 325,721 
Total cash and cash equivalents1,220,620 506,748 357,546 543,670 407,889 
Investment securities available-for-sale1,739,423 866,684 882,353 895,034 855,391 
Total investment securities1,739,423 866,684 882,353 895,034 855,391 
Allowance for investment security losses (129)(97)(94)(82)(186)
Net investment securities1,739,294 866,587 882,259 894,952 855,205 
Loans and leases held-for-sale83,330 — — — — 
Loans and leases:
Commercial real estate loans10,212,798 5,485,546 5,580,982 5,716,114 5,779,290 
Commercial loans and leases3,934,709 2,520,347 2,512,912 2,506,664 2,453,038 
Consumer loans4,094,400 1,576,481 1,548,828 1,556,510 1,522,908 
Total loans and leases18,241,907 9,582,374 9,642,722 9,779,288 9,755,236 
Allowance for loan and lease losses(253,735)(126,725)(124,145)(125,083)(127,316)
Net loans and leases17,988,172 9,455,649 9,518,577 9,654,205 9,627,920 
Restricted equity securities99,431 66,481 67,537 83,155 82,675 
Premises and equipment, net of accumulated depreciation158,375 83,963 84,439 86,781 86,925 
Right-of-use asset operating leases90,757 42,415 44,144 43,527 41,934 
Deferred tax asset178,456 52,325 52,176 56,620 50,827 
Goodwill353,471 241,222 241,222 241,222 241,222 
Identified intangible assets, net of accumulated amortization198,339 14,600 16,030 17,461 19,162 
Other real estate owned and repossessed assets3,360 1,288 917 1,103 1,579 
Cash surrender value of bank-owned life insurance policies 332,840 85,479 84,959 84,448 83,932 
Other assets374,994 151,988 170,063 198,182 177,451 
Total assets$22,821,439 $11,568,745 $11,519,869 $11,905,326 $11,676,721 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts$3,905,559 $1,726,933 $1,664,629 $1,692,394 $1,681,858 
NOW accounts1,470,808 650,707 625,492 617,246 637,374 
Savings accounts2,904,888 1,795,761 1,793,852 1,721,247 1,736,989 
Money market accounts5,589,693 2,153,709 2,183,855 2,116,360 2,041,185 
Certificate of deposit accounts4,127,226 1,877,661 1,878,665 1,885,444 1,819,353 
Brokered deposit accounts905,889 756,431 764,959 868,953 815,512 
Total deposits18,904,063 8,961,202 8,911,452 8,901,644 8,732,271 
Borrowed funds:
Advances from the FHLB841,044 934,669 957,848 1,355,926 1,345,003 
Subordinated debentures and notes198,283 84,397 84,362 84,328 84,293 
Other borrowed funds41,189 135,985 113,617 79,592 68,251 
Total borrowed funds1,080,516 1,155,051 1,155,827 1,519,846 1,497,547 
Operating lease liabilities92,211 43,528 45,330 44,785 43,266 
Mortgagors’ escrow accounts11,179 15,289 15,264 15,875 14,456 
Reserve for unfunded credits13,727 4,586 5,296 5,981 6,859 
Accrued expenses and other liabilities304,747 134,918 146,518 195,256 151,960 
Total liabilities20,406,443 10,314,574 10,279,687 10,683,387 10,446,359 
Stockholders' equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 89,576,403 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively1,023 970 970 970 970 
Additional paid-in capital2,177,807 904,697 903,696 902,584 901,562 
Retained earnings407,557 475,781 465,898 458,943 453,555 
Accumulated other comprehensive income (28,905)(39,378)(42,498)(52,882)(38,081)
Treasury stock, at cost;
5,449,039, 7,039,136, 7,037,610, 7,019,384, and 7,015,843 shares, respectively(142,486)(87,899)(87,884)(87,676)(87,644)
Total stockholders' equity2,414,996 1,254,171 1,240,182 1,221,939 1,230,362 
Total liabilities and stockholders' equity$22,821,439 $11,568,745 $11,519,869 $11,905,326 $11,676,721 


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
September 30,
2025		June 30,
2025		March 31, 2025December 31,
2024		September 30,
2024
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases$198,273 $143,933 $143,309 $147,436 $149,643 
Debt securities10,984 6,691 6,765 6,421 6,473 
Restricted equity securities1,466 1,062 1,203 1,460 1,458 
Short-term investments5,438 2,386 2,451 2,830 1,986 
Total interest and dividend income216,161 154,072 153,728 158,147 159,560 
Interest expense:
Deposits71,901 52,682 53,478 56,562 59,796 
Borrowed funds11,654 12,705 14,420 16,597 16,756 
Total interest expense83,555 65,387 67,898 73,159 76,552 
Net interest income132,606 88,685 85,830 84,988 83,008 
Provision for credit losses on loans87,496 6,997 5,974 4,141 4,832 
Provision (recovery) of credit losses on investments32 3 12 (104)(172)
Net interest income after provision for credit losses45,078 81,685 79,844 80,951 78,348 
Non-interest income:
Deposit fees5,005 2,472 2,361 2,297 2,353 
Loan fees1,004 472 393 439 464 
Loan level derivative income (loss)635 (4)70 1,115 — 
Gain on sales of loans and leases held-for-sale1,175 264 24 406 415 
Wealth management fees2,466 1,421 1,491 1,608 1,509 
Other2,060 1,345 1,321 722 1,607 
Total non-interest income12,345 5,970 5,660 6,587 6,348 
Non-interest expense:
Compensation and employee benefits49,999 35,147 35,853 37,202 35,130 
Occupancy6,921 5,349 5,721 5,393 5,343 
Equipment and data processing11,110 6,841 7,012 6,780 6,831 
Professional services2,114 1,471 1,726 1,345 2,143 
FDIC insurance1,971 1,880 2,037 2,017 2,118 
Advertising and marketing1,583 1,371 868 1,303 859 
Amortization of identified intangible assets3,587 1,431 1,430 1,701 1,668 
Merger and restructuring expense51,885 439 971 3,378 — 
Other6,148 4,132 4,404 4,600 3,856 
Total non-interest expense135,318 58,061 60,022 63,719 57,948 
(Loss) income before provision for income taxes(77,895)29,594 25,482 23,819 26,748 
(Benefit) provision for income taxes (21,633)7,568 6,382 6,283 6,606 
Net (loss) income $(56,262)$22,026 $19,100 $17,536 $20,142 
Earnings per common share:
Basic$(0.64)$0.25 $0.21 $0.20 $0.23 
Diluted$(0.64)$0.25 $0.21 $0.20 $0.23 
Weighted average common shares outstanding during the period:
Basic87,508,517 89,104,605 89,103,510 89,098,443 89,033,463 
Diluted87,832,552 89,612,781 89,567,747 89,483,964 89,319,611 
Dividends paid per common share$0.3225 $0.135 $0.135 $0.135 $0.135 


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Nine Months Ended September 30,
20252024
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases$485,515 $440,493 
Debt securities24,440 19,831 
Restricted equity securities3,731 4,326 
Short-term investments10,275 5,724 
Total interest and dividend income523,961 470,374 
Interest expense:
Deposits178,061 176,401 
Borrowed funds38,779 49,376 
Total interest expense216,840 225,777 
Net interest income307,121 244,597 
Provision for credit losses on loans100,467 17,862 
Provision (recovery) of credit losses on investments47 (255)
Net interest income after provision for credit losses206,607 226,990 
Non-interest income:
Deposit fees9,838 8,251 
Loan fees1,869 1,955 
Loan level derivative income (loss)701 543 
Gain on sales of loans and leases held-for-sale1,463 545 
Wealth management fees5,378 4,382 
Other4,726 3,352 
Total non-interest income23,975 19,028 
Non-interest expense:
Compensation and employee benefits120,999 106,521 
Occupancy17,991 16,663 
Equipment and data processing24,963 20,594 
Professional services5,311 5,788 
FDIC insurance5,888 6,027 
Advertising and marketing3,822 3,937 
Amortization of identified intangible assets6,448 5,045 
Merger and restructuring expense53,295 823 
Other14,684 12,748 
Total non-interest expense253,401 178,146 
(Loss) income before provision for income taxes(22,819)67,872 
(Benefit) provision for income taxes (7,683)16,693 
Net (loss) income $(15,136)$51,179 
Earnings per common share:
Basic$(0.17)$0.58 
Diluted$(0.17)$0.57 
Weighted average common shares outstanding during the period:
Basic88,566,368 88,944,569 
Diluted88,998,517 89,241,470 
Dividends paid per common share$0.5925 $0.405 



BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
September 30,
2025		June 30,
2025		March 31, 2025December 31,
2024		September 30,
2024
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage$30,213 $987 $10,842 $11,525 $11,595 
Multi-family mortgage2,994 1,433 6,576 6,596 1,751 
Construction535 — — — — 
Total commercial real estate loans33,742 2,420 17,418 18,121 13,346 
Commercial14,035 8,687 7,415 14,676 15,734 
Equipment financing41,793 46,067 32,975 31,509 37,223 
Total commercial loans and leases55,828 54,754 40,390 46,185 52,957 
Residential mortgage6,597 3,572 3,962 3,999 3,862 
Home equity2,220 1,561 1,333 1,043 1,076 
Other consumer243 1 1 1 1 
Total consumer loans9,060 5,134 5,296 5,043 4,939 
Total nonaccrual loans and leases98,630 62,308 63,104 69,349 71,242 
Other real estate owned824 700 700 700 780 
Other repossessed assets2,536 588 217 403 799 
Total nonperforming assets$101,990 $63,596 $64,021 $70,452 $72,821 
Loans and leases past due greater than 90 days and still accruing $23,570 $24,899 $3,009 $811 $16,091 
Nonperforming loans and leases as a percentage of total loans and leases0.54 %0.65 %0.65 %0.71 %0.73 %
Nonperforming assets as a percentage of total assets0.45 %0.55 %0.56 %0.59 %0.62 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period$126,725 $124,145 $125,083 $127,316 $121,750 
Merger Day 1 allowance on non-PCD loans *69,487 — — — — 
Merger Day 1 allowance on PCD loans
64,511 — — — — 
Charge-offs(16,661)(5,601)(9,073)(8,414)(4,183)
Recoveries804 474 1,476 1,162 375 
Net charge-offs**(15,857)(5,127)(7,597)(7,252)(3,808)
Provision for loan and lease losses excluding unfunded commitments ***8,869 7,707 6,659 5,019 9,374 
Allowance for loan and lease losses at end of period$253,735 $126,725 $124,145 $125,083 $127,316 
Allowance for loan and lease losses as a percentage of total loans and leases1.39 %1.32 %1.29 %1.28 %1.31 %
NET CHARGE-OFFS:
Commercial real estate loans$819 $3,524 $— $— $— 
Commercial loans and leases 15,116 1,640 7,647 7,257 3,797 
Consumer loans(78)(37)(50)(5)11 
Total net charge-offs**$15,857 $5,127 $7,597 $7,252 $3,808 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.51 %0.21 %0.31 %0.30 %0.16 %
*Excludes the provision of $8.4 million for credit losses on unfunded commitments during the three months ended September 30, 2025.
** Excludes the impact of Merger Day 1 purchase accounting that resulted in $15.8 million of charge-offs during the three months ended September 30, 2025.
***Provision for loan and lease losses does not include provision (credit) of $0.7 million, $(0.7 million), $(0.7 million), $(0.9 million), and $(4.5 million) for credit losses on unfunded commitments during the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.


BEACON FINANCIAL CORPORATION. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
September 30, 2025June 30, 2025September 30, 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)$1,165,022 $11,273 3.87 %$874,212 $6,752 3.09 %$853,924 $6,516 3.05 %
Restricted equity securities (2)73,853 1,467 7.95 %65,724 1,062 6.46 %75,225 1,459 7.76 %
Short-term investments448,044 5,438 4.85 %215,982 2,386 4.42 %145,838 1,986 5.44 %
Total investments1,686,919 18,178 4.31 %1,155,918 10,200 3.53 %1,074,987 9,961 3.71 %
Loans and Leases:
Commercial real estate loans (3)7,013,916 107,942 6.02 %5,533,208 77,136 5.51 %5,772,456 83,412 5.65 %
Commercial loans (3)1,818,012 31,033 6.68 %1,286,908 20,757 6.38 %1,079,084 18,440 6.69 %
Equipment financing (3)1,209,797 24,692 8.16 %1,240,128 25,069 8.09 %1,353,649 26,884 7.94 %
Consumer loans (3)2,505,760 35,286 5.62 %1,556,254 21,437 5.51 %1,505,095 21,123 5.60 %
Total loans and leases12,547,485 198,953 6.34 %9,616,498 144,399 6.01 %9,710,284 149,859 6.17 %
Total interest-earning assets14,234,404 217,131 6.10 %10,772,416 154,599 5.74 %10,785,271 159,820 5.93 %
Non-interest-earning assets975,676 630,518 666,067 
Total assets$15,210,080 $11,402,934 $11,451,338 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts$917,794 1,786 0.77 %$637,786 1,034 0.65 %$639,561 1,115 0.69 %
Savings accounts2,201,808 12,867 2.32 %1,780,838 10,692 2.41 %1,738,756 12,098 2.77 %
Money market accounts3,324,253 23,131 2.76 %2,189,373 13,990 2.56 %2,038,048 15,466 3.02 %
Certificates of deposit2,607,493 24,956 3.80 %1,879,749 18,437 3.93 %1,768,026 20,054 4.51 %
Brokered deposit accounts823,059 9,161 4.42 %748,205 8,529 4.57 %841,067 11,063 5.23 %
Total interest-bearing deposits9,874,407 71,901 2.89 %7,235,951 52,682 2.92 %7,025,458 59,796 3.39 %
Borrowings
Advances from the FHLB792,455 8,709 4.30 %904,399 10,422 4.56 %1,139,049 14,366 4.94 %
Subordinated debentures and notes121,526 2,394 7.88 %84,380 1,718 8.14 %84,276 1,378 6.54 %
Other borrowed funds42,303 551 5.16 %46,086 565 4.93 %53,102 1,012 7.58 %
Total borrowings956,284 11,654 4.77 %1,034,865 12,705 4.86 %1,276,427 16,756 5.14 %
Total interest-bearing liabilities10,830,691 83,555 3.06 %8,270,816 65,387 3.17 %8,301,885 76,552 3.67 %
Non-interest-bearing liabilities:
Demand checking accounts2,414,119 1,654,594 1,669,092 
Other non-interest-bearing liabilities287,062 225,469 264,324 
Total liabilities13,531,872 10,150,879 10,235,301 
Stockholders’ equity1,678,208 1,252,055 1,216,037 
Total liabilities and equity$15,210,080 $11,402,934 $11,451,338 
Net interest income (tax-equivalent basis) /Interest-rate spread (4)133,576 3.04 %89,212 2.57 %83,268 2.26 %
Less adjustment of tax-exempt income970 527 260 
Net interest income$132,606 $88,685 $83,008 
Net interest margin (5)3.72 %3.32 %3.07 %
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Nine Months Ended
September 30, 2025September 30, 2024
Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)$977,060 $24,839 3.39 %$864,501 $19,953 3.08 %
Restricted equity securities (2)69,802 3,733 7.13 %74,422 4,327 7.75 %
Short-term investments304,870 10,275 4.49 %140,156 5,724 5.44 %
Total investments1,351,732 38,847 3.83 %1,079,079 30,004 3.71 %
Loans and Leases:
Commercial real estate loans (3)6,071,163 262,321 5.70 %5,763,065 246,026 5.61 %
Commercial loans (3)1,449,490 71,518 6.51 %1,058,312 53,619 6.66 %
Equipment financing (3)1,243,492 75,696 8.12 %1,367,380 80,034 7.80 %
Consumer loans (3)1,873,834 77,584 5.52 %1,492,213 61,392 5.49 %
Total loans and leases10,637,979 487,119 6.11 %9,680,970 441,071 6.07 %
Total interest-earning assets11,989,711 525,966 5.85 %10,760,049 471,075 5.84 %
Non-interest-earning assets742,502 678,235 
Total assets$12,732,213 $11,438,284 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts$729,035 3,825 0.70 %$656,879 3,487 0.71 %
Savings accounts1,910,457 33,732 2.36 %1,721,518 35,324 2.74 %
Money market accounts2,571,233 50,708 2.64 %2,047,011 46,940 3.06 %
Certificates of deposit2,127,184 62,986 3.96 %1,697,477 55,443 4.36 %
Brokered deposit accounts779,717 26,810 4.60 %898,455 35,207 5.23 %
Total interest-bearing deposits8,117,626 178,061 2.93 %7,021,340 176,401 3.36 %
Borrowings
Advances from the FHLB900,666 30,978 4.54 %1,117,809 41,893 4.92 %
Subordinated debentures and notes96,887 5,813 8.00 %84,241 4,130 6.54 %
Other borrowed funds53,177 1,988 5.00 %83,195 3,353 5.38 %
Total borrowings1,050,730 38,779 4.87 %1,285,245 49,376 5.05 %
Total interest-bearing liabilities9,168,356 216,840 3.16 %8,306,585 225,777 3.63 %
Non-interest-bearing liabilities:
Demand checking accounts1,919,100 1,646,932 
Other non-interest-bearing liabilities254,646 280,947 
Total liabilities11,342,102 10,234,464 
Stockholders’ equity1,390,111 1,203,820 
Total liabilities and equity$12,732,213 $11,438,284 
Net interest income (tax-equivalent basis) /Interest-rate spread (4)309,126 2.69 %245,298 2.21 %
Less adjustment of tax-exempt income2,005 701 
Net interest income$307,121 $244,597 
Net interest margin (5)3.45 %3.05 %
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended 
 September 30,		At and for the Nine Months Ended 
 September 30,
2025202420252024
Reconciliation Table - Non-GAAP Financial Information(Dollars in Thousands Except Share Data)(Dollars in Thousands Except Share Data)
Reported Pretax (loss) income $(77,895)$26,748 $(22,819)$67,872 
Add:
Merger Day 1 CECL provision77,902 — 77,902 — 
Merger and restructuring expense51,885 — 53,295 823 
Operating Pretax income$51,892 $26,748 $108,378 $68,695 
Effective tax rate25.9 %24.7 %25.9 %24.6 %
Provision for income taxes13,419 6,606 28,026 16,895 
Operating earnings after tax$38,473 $20,142 $80,352 $51,800 
Operating earnings per common share:
Basic$0.44 $0.23 $0.91 $0.58 
Diluted$0.44 $0.23 $0.90 $0.58 
Weighted average common shares outstanding during the period:
Basic87,508,517 89,033,463 88,566,368 88,944,569 
Diluted87,832,552 89,319,611 88,998,517 89,241,470 
Return on average assets *(1.48)%0.70 %(0.16)%0.60 %
Add:
Merger Day 1 CECL provision (after-tax) *1.52 %— %0.60 %— %
Merger and restructuring expense (after-tax) *1.01 %— %0.41 %0.01 %
Operating return on average assets *1.05 %0.70 %0.85 %0.61 %
Return on average tangible assets *(1.51)%0.72 %(0.16)%0.61 %
Add:
Merger Day 1 CECL provision (after-tax) *1.56 %— %0.62 %— %
Merger and restructuring expense (after-tax) *1.04 %— %0.42 %0.01 %
Operating return on average tangible assets *1.09 %0.72 %0.88 %0.62 %
Return on average stockholders' equity *(13.41)%6.63 %(1.45)%5.67 %
Add:
Merger Day 1 CECL provision (after-tax) *13.77 %— %5.54 %— %
Merger and restructuring expense (after-tax) *9.17 %— %3.79 %0.07 %
Operating return on average stockholders' equity *9.53 %6.63 %7.88 %5.74 %
Return on average tangible stockholders' equity *(16.98)%8.44 %(1.83)%7.25 %
Add:
Merger Day 1 CECL provision (after-tax) *17.44 %— %7.00 %— %
Merger and restructuring expense (after-tax) *11.61 %— %4.79 %0.09 %
Operating return on average tangible stockholders' equity *12.07 %8.44 %9.96 %7.34 %
* Ratios at and for the three months and nine months ended are annualized.
(Continued)


BEACON FINANCIAL CORPORATION AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024		September 30,
2024
(Dollars in Thousands)
Net (loss) income, as reported$(56,262)$22,026 $19,100 $17,536 $20,142 
Average total assets$15,210,080 $11,402,934 $11,543,330 $11,580,572 $11,451,338 
Less: Average goodwill and average identified intangible assets, net353,189 256,508 257,941 259,496 261,188 
Average tangible assets$14,856,891 $11,146,426 $11,285,389 $11,321,076 $11,190,150 
Return on average tangible assets (annualized)(1.51)%0.79 %0.68 %0.62 %0.72 %
Average total stockholders’ equity$1,678,208 $1,252,055 $1,235,201 $1,232,527 $1,216,037 
Less: Average goodwill and average identified intangible assets, net353,189 256,508 257,941 259,496 261,188 
Average tangible stockholders’ equity$1,325,019 $995,547 $977,260 $973,031 $954,849 
Return on average tangible stockholders’ equity (annualized)(16.98)%8.85 %7.82 %7.21 %8.44 %
Total stockholders’ equity$2,414,996 $1,254,171 $1,240,182 $1,221,939 $1,230,362 
Less:
Goodwill353,471 241,222 241,222 241,222 241,222 
Identified intangible assets, net198,339 14,600 16,030 17,461 19,162 
Tangible stockholders' equity$1,863,186 $998,349 $982,930 $963,256 $969,978 
Total assets$22,821,439 $11,568,745 $11,519,869 $11,905,326 $11,676,721 
Less:
Goodwill353,471 241,222 241,222 241,222 241,222 
Identified intangible assets, net198,339 14,600 16,030 17,461 19,162 
Tangible assets$22,269,629 $11,312,923 $11,262,617 $11,646,643 $11,416,337 
Tangible stockholders’ equity to tangible assets8.37 %8.82 %8.73 %8.27 %8.50 %
Tangible stockholders' equity$1,863,186 $998,349 $982,930 $963,256 $969,978 
Number of common shares issued89,576,403 96,998,075 96,998,075 96,998,075 96,998,075 
Less:
Treasury shares5,449,039 7,039,136 7,037,610 7,019,384 7,015,843 
Unvested restricted shares218,503 854,334 855,860 880,248 883,789 
Number of common shares outstanding83,908,861 89,104,605 89,104,605 89,098,443 89,098,443 
Tangible book value per common share$22.20 $11.20 $11.03 $10.81 $10.89