Beacon Financial Corporation Reports 95% Asset Growth Following Merger with Brookline Bancorp

Beacon Financial Corporation, the holding company for Beacon Bank & Trust, reported significant financial growth in its recent 10-K filing for the fiscal year ending December 31, 2025. The company’s total assets surged to $23.2 billion, a 95% increase from $11.9 billion in 2024, primarily due to the completion of its merger with Brookline Bancorp, Inc. Total loans and leases rose by 84.4% to $18.0 billion, with commercial loans making up 77.4% of this portfolio. Net interest income also saw a substantial increase, climbing 52.6% to $503.1 million, while net income rose 31.4% to $90.3 million, translating to earnings per share of $1.03.

The merger, finalized on September 1, 2025, was a pivotal strategic move for Beacon Financial, allowing it to expand its market presence across New England and New York. The transaction not only enhanced the company’s asset base but also diversified its funding sources and customer relationships. Following the merger, the company rebranded from Berkshire Hills Bancorp, Inc. to Beacon Financial Corporation, with its stock now trading under the ticker symbol "BBT." The merger is expected to yield cost synergies and improved competitive positioning in the banking sector.

Operationally, the company reported a total deposit increase of 119.2% to $19.5 billion, with core deposits rising to $13.1 billion, representing 67.0% of total deposits. The increase in deposits was driven by the merger, which brought in substantial customer accounts. However, the ratio of core deposits to total deposits decreased slightly from 69.1% in 2024 to 67.0% in 2025, indicating a shift in the deposit mix. The company also reported a total employee count of 1,972 full-time and 78 part-time employees, reflecting its commitment to maintaining a strong workforce to support its expanded operations.

Despite the positive financial performance, the company faced challenges, including an increase in the allowance for loan and lease losses, which rose to $252.8 million, or 1.40% of total loans and leases. This increase was attributed to the merger and the associated credit risks. Nonperforming assets also increased to $116.7 million, representing 0.50% of total assets, up from $70.5 million in the previous year. The company’s management remains focused on maintaining asset quality and managing credit risk effectively.

Looking ahead, Beacon Financial Corporation anticipates continued growth and improved profitability as it integrates the operations of the merged entities. The company aims to enhance its net interest margin and manage its interest rate risk effectively in a changing economic environment. Management expects that the combination of its expanded asset base and strategic initiatives will position the company favorably for future growth, while also navigating the challenges posed by market conditions and regulatory requirements.