Beacon Financial Corporation (BBT) investor relations material

Executive summary

• Q3 GAAP net income was $61.2M, or $0.73/share; adjusted operating net income was $64.7M, or $0.77/share, excluding restructuring charges and a net gain on building sales.

• NIM rose 4 bps QoQ to 3.85%; operating PPNR increased 4% QoQ, while tangible common equity reached 9.35% of tangible assets.

• Priorities include selective C&I and owner-occupied CRE growth, higher fee income, expense discipline, proactive credit management and disciplined capital returns.

Financial highlights

• Net interest income rose $3.9M QoQ to $197.2M; non-interest income was $26.0M and essentially flat QoQ.

• Total revenue was $223.1M, up 2% QoQ; GAAP net income was $61.2M versus $64.4M in Q2 and a $4.2M loss in Q3 2025.

• Reported non-interest expense was $132.7M, including $5.1M of restructuring charges; adjusted operating expense was $119.5M and core efficiency ratio was 53.54%.

• Assets fell $375M QoQ to $21.876B; loans declined $169.8M to $17.652B and deposits fell $303.3M to $18.183B, including a $327M payroll deposit decline.

Outlook and guidance

• Expected near-term NIM range is 3.85%-3.9%; purchase-accounting accretion is ~$12M per quarter and varies with prepayments. Base case excludes future Fed funds changes.

• Q4 net new loan funding pipeline was ~$610M before paydowns and amortization; higher rates may slow paydowns, but timing is uncertain.

• Fee income is ~11% of revenue, with a goal of reaching the mid-teens through cash management, wealth, payments and SBA loan sales.

• Mid-teens ROTCE is viewed as achievable in an appropriate near term; detailed timing and targets are expected with the strategic plan in January.

• Expense levers include organizational, branch and platform simplification; plans also emphasize organic growth, stronger core funding and reduced wholesale funding.