Beacon Financial Corporation (BBT) investor relations material

Executive summary

• Completed merger and charter consolidation of Brookline and Berkshire, forming a leading Northeast financial institution with $22.8 billion in assets, $19 billion in deposits, and $18.2 billion in loans as of Q3 close.

• Third quarter results reflect significant one-time merger-related costs, resulting in a net loss of $56.3 million (EPS of $(0.64)), but operating earnings were $38.5 million (operating EPS of $0.44).

• Core system integration and rebranding are on track for completion in early 2026, with the Beacon Bank brand to be introduced.

• Strong retention of client-facing talent and positive team sentiment post-merger.

• Total assets reached $22.8 billion, with customer deposits up $88.8 million and brokered deposits down $248.1 million.

Financial highlights

• Net interest income rose to $132.6 million, up 49% sequentially, with net interest margin increasing to 3.72% and September NIM at 4.12%.

• Noninterest income more than doubled year-over-year to $12.3 million, with a $6.3 million sequential increase.

• GAAP net loss for Q3 was $56.3 million, driven by $129.8 million in one-time pre-tax merger costs and credit loss provisions; operating earnings were $0.44 per share, excluding merger charges and Day 1 provision.

• Net charge-offs for the quarter were $15.9 million, primarily from C&I and equipment finance loans.

• Quarterly dividend declared at $0.3225 per share, annualized at $1.29, yielding 5.4%.

Outlook and guidance

• Expect quarterly provision for credit losses to be $5–$9 million as reserve coverage ratio trends lower.

• Net interest margin projected to expand to 3.90–4.00% as rates decline and curve steepens.

• Targeting mid-single-digit growth in interest-earning assets and modest mid-single-digit fee income growth.

• Deposit beta modeled at 57% for interest-bearing deposits.

• Effective tax rate estimated at 26% for 2026, excluding merger/restructuring charges.