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 sequentially, reflecting merger integration and system conversion completion in February.

• Operating earnings were $58.4 million, or $0.70 per share, 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 and capital levels remained strong despite operational changes and near-term financial pressures.

• Results reflect near-term margin and loan growth pressures, but strategic priorities and expense discipline are progressing.

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, up 323% year-over-year but down 8% sequentially, mainly due to lower deposit fees and loan sale gains.

• Total assets declined by $992 million to $22.2 billion, primarily from lower cash balances tied to payroll deposits.

• Loans declined ~1% sequentially, with commercial lending growth offset by runoff in CRE and consumer portfolios.

• Deposits fell 6% to $18.3 billion, mainly due to payroll and brokered deposit outflows; core customer deposits declined 2% seasonally.

Outlook and guidance

• Loan growth expected to remain soft in Q2, with low single-digit growth for the remainder of 2026, driven by C&I lending.

• Net interest margin anticipated to stabilize around 3.80%, with potential for modest improvement.

• Credit costs projected to trend lower, with 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.

• Management expects to realize further merger synergies and stronger financial performance as the year progresses.