Education
About Us
Working with TipRanks
Follow Us
Beacon Financial Corporation (BBT)
NYSE:BBT
Top Page
Beacon Financial Corporation
(NYSE:BBT)
Select Model
Select Model
Rating:73Outperform
Price Target:
$26.00
â–²(10.83% Upside)
Berkshire Hills Bancorp's overall stock score is driven primarily by its strong financial performance and positive earnings call highlights. The company's robust financial health and strategic initiatives, such as the merger with Brookline Bancorp, position it well for future growth. However, technical analysis indicates a bearish trend, and valuation metrics suggest the stock is undervalued, which could present an opportunity for investors. The positive earnings call sentiment further supports the stock's potential, despite some concerns in the C&I segment.
Beacon Financial Corporation (BBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.96B
Dividend Yield0.72%
Average Volume (3M)982.70K
Price to Earnings (P/E)9.1
Beta (1Y)0.87
Revenue Growth15.55%
EPS Growth401.99%
CountryUS
Employees951
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)N/A
Shares Outstanding84,272,240
10 Day Avg. Volume992,532
30 Day Avg. Volume982,698
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 Cap0.85
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside15.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Beacon Financial Corporation Business Overview & Revenue Model
Company DescriptionBeacon Financial Corp. engages in the provision of financial planning, advisory, and banking services.
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)
| 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
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
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
Negative
23.46
Price Trends
25.14
Negative
25.16
Negative
25.76
Negative
Market Momentum
-0.30
Negative
36.46
Neutral
54.99
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 23.46 is below the 20-day moving average (MA) of 24.21, below the 50-day MA of 25.14, and below the 200-day MA of 25.76, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 54.99 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.90B | 33.32 | 11.22% | 0.93% | 15.43% | -19.63% | |
74 Outperform | $2.01B | 10.62 | 11.66% | 9.63% | -6.29% | -15.46% | |
73 Outperform | $1.96B | 9.10 | 10.13% | 0.72% | 15.55% | 401.99% | |
68 Neutral | $2.29B | 26.44 | 15.46% | 4.18% | 26.65% | -1.26% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $1.64B | 19.08 | 282.39% | 0.09% | 21.14% | 42.83% | |
59 Neutral | $2.24B | 81.26 | -12.68% | 3.83% | 15.78% | 56.27% |
* Financial Sector Average
BBT
Beacon Financial Corporation
23.46
-3.87
-14.16%
WT
WisdomTree
12.90
2.63
25.61%
TSLX
Sixth Street Specialty Lending
21.50
2.50
13.16%
AAMI
Acadian Asset Management
46.35
19.29
71.29%
GCMG
GCM Grosvenor
11.49
0.17
1.50%
PAX
Patria Investments
14.48
3.46
31.40%
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.