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 expenses	6,022
Conversion of Company stock options	1,147
Cash paid for fractional shares	49
Total purchase consideration	1,216,669

Fair value of assets acquired:
Cash and due from banks	105,440
Short-term investments	978,667
Investment securities available-for-sale	1,102,464
Loans held for sale	3,471
Loans held for investment, net of allowance for credit losses	9,078,979

Premises and equipment	73,368
Bank owned life insurance	246,979
Accrued interest receivable	49,717
Core deposit intangible asset	174,415
Customer relationships intangible asset	14,000
Other assets	314,956
Total assets acquired	12,142,456

Fair value of liabilities assumed:
Deposits	10,287,573
Borrowings	559,402
Accrued expenses and other liabilities	191,060
Total liabilities assumed	11,038,035
Net assets acquired	1,104,421
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 loans	87,496			6,997			5,974			4,141			4,832
Provision (recovery) of credit losses on investments	32			3			12			(104)			(172)
Non-interest income	12,345			5,970			5,660			6,587			6,348
Non-interest expense	135,318			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 declared	0.323			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 leases	18,241,907			9,582,374			9,642,722			9,779,288			9,755,236
Total deposits	18,904,063			8,961,202			8,911,452			8,901,644			8,732,271
Total stockholders’ equity	2,414,996			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 assets	0.45		%	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 leases	1.39		%	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 assets	10.58		%	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, 2025		June 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 investments	1,038,369		419,362		278,805		478,997		325,721
Total cash and cash equivalents	1,220,620		506,748		357,546		543,670		407,889
Investment securities available-for-sale	1,739,423		866,684		882,353		895,034		855,391



Total investment securities	1,739,423		866,684		882,353		895,034		855,391
Allowance for investment security losses	(129)		(97)		(94)		(82)		(186)
Net investment securities	1,739,294		866,587		882,259		894,952		855,205
Loans and leases held-for-sale	83,330		—		—		—		—
Loans and leases:




Commercial real estate loans	10,212,798		5,485,546		5,580,982		5,716,114		5,779,290





Commercial loans and leases	3,934,709		2,520,347		2,512,912		2,506,664		2,453,038




Consumer loans	4,094,400		1,576,481		1,548,828		1,556,510		1,522,908
Total loans and leases	18,241,907		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 leases	17,988,172		9,455,649		9,518,577		9,654,205		9,627,920
Restricted equity securities	99,431		66,481		67,537		83,155		82,675
Premises and equipment, net of accumulated depreciation	158,375		83,963		84,439		86,781		86,925
Right-of-use asset operating leases	90,757		42,415		44,144		43,527		41,934
Deferred tax asset	178,456		52,325		52,176		56,620		50,827
Goodwill	353,471		241,222		241,222		241,222		241,222
Identified intangible assets, net of accumulated amortization	198,339		14,600		16,030		17,461		19,162
Other real estate owned and repossessed assets	3,360		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 assets	374,994		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 accounts	1,470,808		650,707		625,492		617,246		637,374
Savings accounts	2,904,888		1,795,761		1,793,852		1,721,247		1,736,989
Money market accounts	5,589,693		2,153,709		2,183,855		2,116,360		2,041,185
Certificate of deposit accounts	4,127,226		1,877,661		1,878,665		1,885,444		1,819,353
Brokered deposit accounts	905,889		756,431		764,959		868,953		815,512

Total deposits	18,904,063		8,961,202		8,911,452		8,901,644		8,732,271
Borrowed funds:
Advances from the FHLB	841,044		934,669		957,848		1,355,926		1,345,003
Subordinated debentures and notes	198,283		84,397		84,362		84,328		84,293
Other borrowed funds	41,189		135,985		113,617		79,592		68,251
Total borrowed funds	1,080,516		1,155,051		1,155,827		1,519,846		1,497,547
Operating lease liabilities	92,211		43,528		45,330		44,785		43,266
Mortgagors’ escrow accounts	11,179		15,289		15,264		15,875		14,456
Reserve for unfunded credits	13,727		4,586		5,296		5,981		6,859

Accrued expenses and other liabilities	304,747		134,918		146,518		195,256		151,960
Total liabilities	20,406,443		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, respectively	1,023		970		970		970		970
Additional paid-in capital	2,177,807		904,697		903,696		902,584		901,562
Retained earnings	407,557		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' equity	2,414,996		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, 2025		December 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 securities	10,984		6,691		6,765		6,421		6,473
Restricted equity securities	1,466		1,062		1,203		1,460		1,458
Short-term investments	5,438		2,386		2,451		2,830		1,986
Total interest and dividend income	216,161		154,072		153,728		158,147		159,560
Interest expense:
Deposits	71,901		52,682		53,478		56,562		59,796
Borrowed funds	11,654		12,705		14,420		16,597		16,756
Total interest expense	83,555		65,387		67,898		73,159		76,552
Net interest income	132,606		88,685		85,830		84,988		83,008
Provision for credit losses on loans	87,496		6,997		5,974		4,141		4,832
Provision (recovery) of credit losses on investments	32		3		12		(104)		(172)
Net interest income after provision for credit losses	45,078		81,685		79,844		80,951		78,348
Non-interest income:
Deposit fees	5,005		2,472		2,361		2,297		2,353
Loan fees	1,004		472		393		439		464
Loan level derivative income (loss)	635		(4)		70		1,115		—

Gain on sales of loans and leases held-for-sale	1,175		264		24		406		415

Wealth management fees	2,466		1,421		1,491		1,608		1,509
Other	2,060		1,345		1,321		722		1,607
Total non-interest income	12,345		5,970		5,660		6,587		6,348
Non-interest expense:
Compensation and employee benefits	49,999		35,147		35,853		37,202		35,130
Occupancy	6,921		5,349		5,721		5,393		5,343
Equipment and data processing	11,110		6,841		7,012		6,780		6,831
Professional services	2,114		1,471		1,726		1,345		2,143
FDIC insurance	1,971		1,880		2,037		2,017		2,118
Advertising and marketing	1,583		1,371		868		1,303		859
Amortization of identified intangible assets	3,587		1,431		1,430		1,701		1,668
Merger and restructuring expense	51,885		439		971		3,378		—
Other	6,148		4,132		4,404		4,600		3,856
Total non-interest expense	135,318		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:
Basic	87,508,517		89,104,605		89,103,510		89,098,443		89,033,463
Diluted	87,832,552		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,
	2025		2024
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	485,515	$	440,493
Debt securities	24,440		19,831
Restricted equity securities	3,731		4,326
Short-term investments	10,275		5,724
Total interest and dividend income	523,961		470,374
Interest expense:
Deposits	178,061		176,401
Borrowed funds	38,779		49,376
Total interest expense	216,840		225,777
Net interest income	307,121		244,597
Provision for credit losses on loans	100,467		17,862
Provision (recovery) of credit losses on investments	47		(255)
Net interest income after provision for credit losses	206,607		226,990
Non-interest income:
Deposit fees	9,838		8,251
Loan fees	1,869		1,955
Loan level derivative income (loss)	701		543

Gain on sales of loans and leases held-for-sale	1,463		545

Wealth management fees	5,378		4,382
Other	4,726		3,352
Total non-interest income	23,975		19,028
Non-interest expense:
Compensation and employee benefits	120,999		106,521
Occupancy	17,991		16,663
Equipment and data processing	24,963		20,594
Professional services	5,311		5,788
FDIC insurance	5,888		6,027
Advertising and marketing	3,822		3,937
Amortization of identified intangible assets	6,448		5,045
Merger and restructuring expense	53,295		823
Other	14,684		12,748
Total non-interest expense	253,401		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:
Basic	88,566,368		88,944,569
Diluted	88,998,517		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, 2025			December 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 mortgage	2,994			1,433			6,576			6,596			1,751
Construction	535			—			—			—			—
Total commercial real estate loans	33,742			2,420			17,418			18,121			13,346

Commercial	14,035			8,687			7,415			14,676			15,734
Equipment financing	41,793			46,067			32,975			31,509			37,223

Total commercial loans and leases	55,828			54,754			40,390			46,185			52,957

Residential mortgage	6,597			3,572			3,962			3,999			3,862
Home equity	2,220			1,561			1,333			1,043			1,076
Other consumer	243			1			1			1			1
Total consumer loans	9,060			5,134			5,296			5,043			4,939

Total nonaccrual loans and leases	98,630			62,308			63,104			69,349			71,242

Other real estate owned	824			700			700			700			780
Other repossessed assets	2,536			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 leases	0.54		%	0.65		%	0.65		%	0.71		%	0.73		%
Nonperforming assets as a percentage of total assets	0.45		%	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)
Recoveries	804			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 leases	1.39		%	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, 2025						June 30, 2025						September 30, 2024
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (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 investments	448,044		5,438		4.85	%	215,982		2,386		4.42	%	145,838		1,986		5.44	%
Total investments	1,686,919		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 leases	12,547,485		198,953		6.34	%	9,616,498		144,399		6.01	%	9,710,284		149,859		6.17	%
Total interest-earning assets	14,234,404		217,131		6.10	%	10,772,416		154,599		5.74	%	10,785,271		159,820		5.93	%

Non-interest-earning assets	975,676						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 accounts	2,201,808		12,867		2.32	%	1,780,838		10,692		2.41	%	1,738,756		12,098		2.77	%
Money market accounts	3,324,253		23,131		2.76	%	2,189,373		13,990		2.56	%	2,038,048		15,466		3.02	%
Certificates of deposit	2,607,493		24,956		3.80	%	1,879,749		18,437		3.93	%	1,768,026		20,054		4.51	%
Brokered deposit accounts	823,059		9,161		4.42	%	748,205		8,529		4.57	%	841,067		11,063		5.23	%
Total interest-bearing deposits	9,874,407		71,901		2.89	%	7,235,951		52,682		2.92	%	7,025,458		59,796		3.39	%
Borrowings
Advances from the FHLB	792,455		8,709		4.30	%	904,399		10,422		4.56	%	1,139,049		14,366		4.94	%
Subordinated debentures and notes	121,526		2,394		7.88	%	84,380		1,718		8.14	%	84,276		1,378		6.54	%
Other borrowed funds	42,303		551		5.16	%	46,086		565		4.93	%	53,102		1,012		7.58	%
Total borrowings	956,284		11,654		4.77	%	1,034,865		12,705		4.86	%	1,276,427		16,756		5.14	%
Total interest-bearing liabilities	10,830,691		83,555		3.06	%	8,270,816		65,387		3.17	%	8,301,885		76,552		3.67	%
Non-interest-bearing liabilities:
Demand checking accounts	2,414,119						1,654,594						1,669,092
Other non-interest-bearing liabilities	287,062						225,469						264,324
Total liabilities	13,531,872						10,150,879						10,235,301
Stockholders’ equity	1,678,208						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 income			970						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, 2025						September 30, 2024
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (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 investments	304,870		10,275		4.49	%	140,156		5,724		5.44	%
Total investments	1,351,732		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 leases	10,637,979		487,119		6.11	%	9,680,970		441,071		6.07	%
Total interest-earning assets	11,989,711		525,966		5.85	%	10,760,049		471,075		5.84	%

Non-interest-earning assets	742,502						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 accounts	1,910,457		33,732		2.36	%	1,721,518		35,324		2.74	%
Money market accounts	2,571,233		50,708		2.64	%	2,047,011		46,940		3.06	%
Certificates of deposit	2,127,184		62,986		3.96	%	1,697,477		55,443		4.36	%
Brokered deposit accounts	779,717		26,810		4.60	%	898,455		35,207		5.23	%
Total interest-bearing deposits	8,117,626		178,061		2.93	%	7,021,340		176,401		3.36	%
Borrowings
Advances from the FHLB	900,666		30,978		4.54	%	1,117,809		41,893		4.92	%
Subordinated debentures and notes	96,887		5,813		8.00	%	84,241		4,130		6.54	%
Other borrowed funds	53,177		1,988		5.00	%	83,195		3,353		5.38	%
Total borrowings	1,050,730		38,779		4.87	%	1,285,245		49,376		5.05	%
Total interest-bearing liabilities	9,168,356		216,840		3.16	%	8,306,585		225,777		3.63	%
Non-interest-bearing liabilities:
Demand checking accounts	1,919,100						1,646,932
Other non-interest-bearing liabilities	254,646						280,947
Total liabilities	11,342,102						10,234,464
Stockholders’ equity	1,390,111						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 income			2,005						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,
	2025			2024			2025			2024
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 provision	77,902			—			77,902			—
Merger and restructuring expense	51,885			—			53,295			823
Operating Pretax income	$	51,892		$	26,748		$	108,378		$	68,695
Effective tax rate	25.9		%	24.7		%	25.9		%	24.6		%
Provision for income taxes	13,419			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:
Basic	87,508,517			89,033,463			88,566,368			88,944,569
Diluted	87,832,552			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, net	353,189			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, net	353,189			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:
Goodwill	353,471			241,222			241,222			241,222			241,222
Identified intangible assets, net	198,339			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:
Goodwill	353,471			241,222			241,222			241,222			241,222
Identified intangible assets, net	198,339			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 assets	8.37		%	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 issued	89,576,403			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares	5,449,039			7,039,136			7,037,610			7,019,384			7,015,843

Unvested restricted shares	218,503			854,334			855,860			880,248			883,789
Number of common shares outstanding	83,908,861			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

Beacon Financial Corp 8-K