Beacon Financial Corporation (BBT) AI Stock Analysis

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Beacon Financial Corporation

(NYSE:BBT)

Select Model

Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$29.00

▲(16.75% Upside)

Berkshire Hills Bancorp's strong financial performance and attractive valuation are the most significant factors contributing to its high score. The company's strategic initiatives, including the merger with Brookline Bancorp, are expected to enhance future profitability. While technical indicators suggest some short-term weakness, the overall outlook remains positive due to robust earnings and efficient cost management.

Beacon Financial Corporation (BBT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.11B

Dividend Yield0.72%

Average Volume (3M)843.77K

Price to Earnings (P/E)9.9

Beta (1Y)0.87

Revenue Growth15.55%

EPS Growth401.99%

CountryUS

Employees1,186

SectorFinancial

Sector Strength70

IndustryAsset Management

Share Statistics

EPS (TTM)N/A

Shares Outstanding84,272,240

10 Day Avg. Volume1,065,866

30 Day Avg. Volume843,768

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.79

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$27.75

Price Target Upside11.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Beacon Financial Corporation Business Overview & Revenue Model

Company DescriptionBeacon Financial Corporation operates as the bank holding company for Berkshire Bank that provides commercial and retail banking consumer lending, private banking and wealth management services in the United States. The company provides various deposit accounts, including demand deposit, interest-bearing checking, regular savings, money market savings, time certificates of deposit, and retirement deposit accounts. It offers loans, such as commercial real estate, commercial and industrial, residential mortgage, and consumer loans, as well as residential mortgages and commercial loan participations; and revolving loans, lines of credit, letters of credit, time notes and SBA guaranteed loans. In addition, the company provides wealth management services comprising consultative investment management, trust administration, tax return preparation, and financial planning; and investment products and brokerage services. Further, it offers commercial cash management; online banking and mobile banking; overdraft program; and debit cards and other electronic fee producing payment services to transaction account customers, as well as operates commercial payment processing business. It serves its products to personal, commercial, non-profit, and municipal deposit customers. The company was formerly known as Berkshire Hills Bancorp, Inc. and changed its name to Beacon Financial Corporation in September 2025. Beacon Financial Corporation was founded in 1846 and is headquartered in Boston, Massachusetts.

How the Company Makes MoneyBerkshire Hills generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. The bank provides various loan products such as residential mortgages, commercial real estate loans, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees for services, wealth management products, insurance services, and transaction-based income. Additionally, Berkshire Hills has established partnerships with local businesses and community organizations, enhancing its market presence and driving deposits and loan growth, which are crucial for its overall earnings.

Beacon Financial Corporation Earnings Call Summary

Earnings Call Date:―

(Q2-2025)

% Change Since: |

Next Earnings Date:―

Earnings Call Sentiment Positive

The earnings call highlighted several positive outcomes, including strong financial performance, cost efficiency improvements, and successful strategic initiatives. The merger with Brookline Bancorp is also expected to enhance profitability. However, there were some challenges with increased nonperforming loans and charge-offs in the C&I segment. Overall, the positive highlights significantly outweigh the lowlights.

Q2-2025 Updates

Positive Updates

Record Operating Net Income

Operating net income for the quarter was $31.6 million, up 14% linked quarter and 36% year-over-year.

Operating Earnings per Share Growth

Operating earnings per share increased to $0.69, up 15% from the first quarter and 25% year-over-year.

Cost Efficiency Improvements

Operating expenses decreased to $67 million, down 2% linked quarter and 7% year-over-year, contributing to a positive operating leverage of 5% linked quarter and 11% year-over-year.

Strong Asset Quality

Net charge-offs and nonperforming loans remained low at 14 basis points and 27 basis points of loans, respectively.

Digital Deposit Program Success

The new digital deposit program delivered over $100 million of new deposits since its inception earlier this year.

Recognition from Time Magazine

Berkshire was recognized by Time Magazine as one of the top-performing midsized U.S. companies in 2025.

Merger with Brookline Bancorp

The merger is expected to improve scale and profitability, with estimated 40% and 23% accretion to Berkshire's 2026 consensus estimate on GAAP and cash basis, respectively.

Negative Updates

Increase in C&I Nonperforming Loans

C&I nonperforming loans increased to $11.5 million from $9 million, attributed to a handful of smaller credits with individual problems.

Outsized Charge-offs in C&I Segment

There were outsized charge-offs in the C&I segment, though no specific credit issues were noteworthy.

Company Guidance

During the Berkshire Hills Bancorp Second Quarter Earnings Call, the company provided a comprehensive overview of its financial performance and strategic initiatives for the quarter. Key metrics highlighted included an operating net income of $31.6 million, a 14% increase from the previous quarter and a 36% increase year-over-year. The operating earnings per share were reported at $0.69, marking a 15% rise from the first quarter and a 25% increase year-over-year. Operating expenses were reduced to $67 million, reflecting a 2% decrease from the previous quarter and a 7% reduction year-over-year, contributing to a positive operating leverage of 5% quarter-over-quarter and 11% year-over-year. The net interest margin improved by 3 basis points to 3.27%. Asset quality remained strong, with net charge-offs and nonperforming loans at 14 basis points and 27 basis points of loans, respectively. The company also reported strategic progress, including the accumulation of over $100 million in new deposits through its digital deposit program. Additionally, the anticipated Merger of Equals with Brookline Bancorp is expected to significantly enhance profitability, with projected accretions of 40% and 23% to Berkshire's 2026 consensus estimate on a GAAP and cash basis, respectively.

Beacon Financial Corporation Financial Statement Overview

Summary

Income Statement

Positive

Balance Sheet

Positive

Cash Flow

Very Positive

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Beacon Financial Corporation Technical Analysis

Technical Analysis Sentiment

Negative

Last Price24.84

Price Trends

50DMA

25.57

Negative

100DMA

25.41

Negative

200DMA

26.18

Negative

Market Momentum

MACD

-0.16

Positive

RSI

39.78

Neutral

STOCH

22.38

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBT, the sentiment is Negative. The current price of 24.84 is below the 20-day moving average (MA) of 25.96, below the 50-day MA of 25.57, and below the 200-day MA of 26.18, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBT.

Beacon Financial Corporation Risk Analysis

Beacon Financial Corporation disclosed 45 risk factors in its most recent earnings report. Beacon Financial Corporation reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Beacon Financial Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WT	79 Outperform	2.16B	37.90	16.23%	0.82%	15.43%	-19.63%
BBT	77 Outperform	$2.11B	9.87	10.13%	0.72%	15.55%	401.99%
TSLX	74 Outperform	2.18B	11.55	11.60%	8.92%	-6.29%	-15.46%
PAX	68 Neutral	2.41B	32.43	15.27%	3.93%	22.92%	-40.61%
GCMG	64 Neutral	2.51B	91.09	-134.07%	3.42%	15.78%	56.27%
AAMI	61 Neutral	1.75B	20.36	425.00%	0.08%	21.14%	42.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

BBT

Beacon Financial Corporation

24.84

-1.06

-4.09%

WisdomTree

14.67

4.49

44.11%

TSLX

Sixth Street Specialty Lending

23.20

4.50

24.06%

AAMI

Acadian Asset Management

48.44

22.58

87.32%

GCMG

GCM Grosvenor

12.88

1.75

15.72%

PAX

Patria Investments

15.28

4.36

39.93%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 20, 2025