Photo by Sam Lattof | Banker & Tradesman Staff / File
Boston-based Beacon Bank dealt with four troubled loans as it sought to improve its asset quality last quarter, the bank announced Wednesday.
Total net charge-offs for the second quarter of 2026 were $14.3 million compared to $13.6 million in the first quarter of 2026, the bank reported. The $14.3 million in net charge-offs were primarily driven by a Boston office loan, a large industrial laundry loan at its Eastern Funding division, and two rent-controlled multi-family properties, according to the bank.
The ratio of nonperforming loans and leases to total loans and leases was 0.86 percent, an increase of 0.03 percent from 0.83 percent in the prior quarter. Total nonaccrual loans and leases increased by $4 million to $152.7 million compared to $148.6 million in the prior quarter.
Total nonperforming assets increased by $3.9 million to $155.2 million in the second quarter from $151.2 million at March 31, 2026. The increase in nonperforming assets was largely driven by higher nonaccruals at its Eastern Funding arm, according to the bank.
But Beacon made some credit improvements. It had a provision for credit losses of $5 million in the second quarter ended compared to $7.9 million in the first quarter. The decline in provision quarter over quarter was largely driven by a lower level of outstanding loans and minimal credit deterioration compared to the prior quarter, the bank’s earnings announcement said.
“Our results this quarter demonstrate improved operating momentum, disciplined execution, and continued progress following our merger integration,” Beacon Bank President and CEO Paul Perrault said in a statement. “We grew total assets, deposits and non-interest income modestly, expanded the net interest margin, and reduced expenses, while maintaining our focus on credit discipline and long-term value creation for our stockholders. While competition is intense and the external environment remains unsettled, we are well positioned to build on this progress in the quarters ahead.”
Total deposits increased $193.6 million from the prior quarter to $18.4 billion. This was largely due to a $92.8 million increase in customer deposits and a $102.5 million increase in brokered deposits, according to the bank.
Beacon Bank is scheduled to hold an earnings call this afternoon at 1:30 p.m.
