Beacon Financial Q2 profit rises, reflecting merger impact

Overview

• U.S- regional bank's Q2 revenue missed analyst expectations

• Net income and EPS rose both sequentially and yr/yr, reflecting merger impact

• Provision for credit losses declined from prior quarter

Outlook

• Company says competition remains intense and external environment unsettled

• Beacon Financial says it is well positioned for future quarters

Result Drivers

• NET INTEREST MARGIN - Net interest margin expanded due to higher loan yields and lower funding costs, despite lower average loan balances

• EXPENSE REDUCTION - Non-interest expense fell, reflecting completion of merger and restructuring costs and lower operating expenses

• CREDIT LOSS PROVISION - Provision for credit losses declined quarter over quarter, driven by lower outstanding loans and minimal credit deterioration

Company press release: ID:nGNX6w7WvH

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Beacon Financial Corp is $32.50, about 8.5% above its July 28 closing price of $29.95

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 29 - Mechanics Bancorp Q2 profit rises on HomeStreet merger

• July 28 - First Commonwealth Financial Q2 adjusted EPS beats estimates, net interest margin rises

• July 28 - Regional bank Renasant Q2 adjusted EPS beats analyst estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)