Beacon Financial Corporation (BBT) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $46.2 million, or $0.55 per share, up 142% year-over-year but down from Q4 2025, reflecting merger integration and system conversion completion in February.

• Operating EPS was $0.70, excluding $13 million in merger-related charges, with all merger costs now fully realized.

• Board declared a quarterly dividend of $0.3225 per share and authorized a $50 million stock buyback program, pending regulatory approval.

• Client retention remained strong through the transition, and expense discipline was maintained.

• The merger with Brookline Bancorp in September 2025 resulted in significant operational changes and financial reporting updates.

Financial highlights

• Net interest income was $190.8 million, down 4% sequentially but up $104.9 million year-over-year; net interest margin declined to 3.78%.

• Non-interest income was $23.9 million, down 8% sequentially but up 323% year-over-year, mainly from deposit fees and loan sales.

• Non-interest expense was $140.8 million, including $13 million in merger costs, and was flat to slightly down sequentially.

• Total assets declined by $992 million to $22.2 billion, with loans down ~1% and deposits down 6%.

• Provision for credit losses was $7.9 million, slightly down from Q4 2025.

Outlook and guidance

• Loan growth is expected to remain soft in Q2, then strengthen later in the year, with low single-digit growth for 2026 driven by C&I lending.

• Net interest margin expected to stabilize around 3.80%, with potential for modest increases if the yield curve steepens.

• Credit costs projected to trend lower, ranging $5–9 million per quarter, and provision expense expected to remain below net charge-offs as criticized credits are resolved.

• No further merger-related charges expected; effective tax rate estimated at 26% for 2026.

• Near-term macro and rate uncertainties persist, but performance is expected to improve as merger costs subside.