Beacon Financial Corporation (BBT) Q4 2025 earnings summary

Executive summary

• Fourth quarter marked the first full quarter post-merger, with $23.2 billion in assets, $19.5 billion in deposits, and $18 billion in loans.

• Net income for Q4 was $53.4 million ($0.64 EPS GAAP), with operating EPS of $0.79; dividend of $0.3225 per share declared, yielding 4.55%.

• Integration of the merger is on track, with core systems conversion scheduled for February 2026.

• Q4 included $14.4 million in merger-related charges; full-year merger-related charges totaled $70.1 million.

• Dividend payout ratio was 41% of operating EPS.

Financial highlights

• Net interest income for Q4 was $199.7 million, up 55% year-over-year; net interest margin improved to 3.82%.

• Non-interest income for Q4 was $25.9 million; non-interest expense (excluding merger/restructuring) was $119.1 million.

• Total revenue for Q4 was $225.6 million, up 60% year-over-year; net income was $53.4 million, up 205% from prior year.

• Efficiency ratio improved to 63.09%; core efficiency ratio (excluding non-cash amortization) was 52.8%.

• Tangible book value per share increased to $23.32.

Outlook and guidance

• 2026 operating EPS guidance is $3.62–$3.75, reflecting accounting changes and delayed systems conversion.

• Net interest margin projected to expand to 3.85–3.95% as rates decline and curve steepens.

• Loan growth expected in the mid to low single digits, with strong C&I lending and lower ICRE growth.

• Credit costs expected to trend lower, ranging from $5–9 million per quarter.

• Core system conversion in February 2026 to drive expense synergies by Q2 2026; effective tax rate estimated at 26% for 2026.