Beacon Financial Corporation (BBT) investor relations material

Executive summary

• Net income for Q2 2026 was $64.4 million ($0.77 per share), up from $46.2 million in Q1 and $22.0 million in Q2 2025, reflecting improved profitability, operating momentum, and successful merger integration.

• EPS rose to $0.77, a 40% increase from the prior quarter and 208% year-over-year.

• Total assets reached $22.3 billion, with significant year-over-year growth due to the merger with Brookline Bancorp.

• No merger expenses were incurred in Q2 2026, and the quarterly dividend was set at $0.3225 per share.

• Focus remains on driving profitable growth, improving efficiency, maintaining credit discipline, and delivering shareholder value.

Financial highlights

• Net interest income for Q2 2026 rose to $193.2 million, up $2.4 million sequentially and $104.5 million year-over-year; net interest margin expanded to 3.81%.

• Non-interest income increased 9% to $26.0 million, driven by gains on loan sales, derivatives, and wealth management fees.

• Non-interest expense declined to $127.3 million from $140.8 million sequentially, reflecting the absence of $13 million in merger/restructuring costs.

• Provision for credit losses was $4.9 million, down from $7.9 million in Q1 2026.

• Total assets were $22.3 billion; deposits grew by $194 million, while loans declined by $102 million.

Outlook and guidance

• Modest loan growth is expected in the low single digits for the remainder of the year, led by C&I lending, with acceleration into Q4 as pipelines are robust.

• Net interest margin projected between 3.80% and 3.85%; management expects margin stability as the yield curve normalizes.

• Credit costs anticipated at $5–9 million per quarter; provisioning expected to be moderate if credit quality holds.

• Expenses are expected to remain stable through year-end; effective tax rate estimated at 26% for the rest of 2026.

• No changes to the Fed Funds Target Rate expected in 2026; regional economic uncertainty persists due to geopolitical conflict.