Finance

Beacon Raises Buyback Authorization to $125 Million

The Tip Desk · October 27, 2026 · 3 min read

Net interest income reached $197.2 million as the margin widened 4 bps to 3.85% and the board lifted the repurchase authorization from $50 million.

Beacon Financial Corporation (BBT), the Boston-based regional holding company for Beacon Bank & Trust, raised its stock-repurchase authorization to $125 million after a quarter in which net interest income accelerated and the net interest margin widened for a second straight period.

The board’s increase from the $50 million program authorized in the first quarter was framed as confidence in the franchise, the capital position and the value of the shares. The program, subject to regulatory approval, authorizes repurchases of up to $125 million of shares over 12 months following that approval. The company declared a quarterly dividend of $0.3225 a share.

Net interest income rose $3.9 million to $197.2 million in the three months ended September 30, 2026, from $193.2 million in the prior quarter, a larger sequential gain than the $2.4 million increase in the second quarter. The net interest margin expanded 4 bps to 3.85% from 3.81%, following a 3 bps rise to 3.81% in the second quarter. Chief Executive Officer Sean Gray said the results reflected improvement in net interest income and the margin.

Operating earnings after tax were $64.7 million, or $0.77 a share. Net income was $61.2 million, or $0.73 a share, compared with $64.4 million, or $0.77 a share, in the second quarter. Annualized return on average assets declined to 1.11% from 1.17%, and return on average stockholders’ equity fell to 9.55% from 10.15%.

The balance sheet contracted. Total assets decreased $375.4 million to $21.9 billion at September 30, 2026. Total loans and leases declined $169.8 million to $17.7 billion, a larger sequential drop than the $101.9 million decline in the prior quarter, as commercial real estate, consumer and equipment financing loans fell and commercial loans rose. Gray said continued macroeconomic uncertainty and the higher-rate environment contributed to greater caution among borrowers and weighed on overall loan growth. Total investment securities increased $195.2 million to $2.0 billion, including a $335.5 million purchase during the quarter.

Total deposits fell $303.3 million to $18.18 billion, reversing a $193.6 million increase in the prior quarter, as payroll deposits dropped $326.7 million and customer deposits $120.0 million, partly offset by a $143.4 million rise in brokered deposits. Average-balance total deposits increased 1% linked quarter. Total cash and cash equivalents decreased $444.8 million to $771.4 million.

The provision for credit losses rose to $8.9 million from $5.0 million, driven by specific reserves on three larger commercial real estate loans, even as criticized and classified loans fell from $813 million to $763 million. Net charge-offs were $13.5 million, and the annualized net charge-off rate eased to 30 bps from 32 bps. The allowance for loan and lease losses declined to 1.32% of loans from 1.34%. Nonperforming loans and leases rose to 0.91% of loans from 0.86%, and nonaccrual loans increased $7.9 million to $160.6 million, largely from two of the three larger CRE deals.

Non-interest expense increased $5.4 million to $132.7 million, of which $5.1 million was restructuring expense. The efficiency ratio rose to 59.46% from 58.06%. Non-interest income remained consistent with the prior quarter at about $26.0 million.

Total investor commercial real estate as a percentage of total risk-based capital declined to 295% at September 30, 2026, which the company said achieved the goal outlined in its initial merger announcement. Stockholders’ equity to total assets was 11.52%, and tangible book value per common share was $23.81. Gray said immediate priorities include greater expense discipline, stronger core funding, disciplined loan growth, continued credit vigilance, more diversified fee income and returning capital to shareholders.

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