Berkshire Bank and Brookline Bank are completing their transition to Beacon Bank by installing new signs on bank branches this week, including this location, a former Brookline Bank branch in Peabody. Photo by Sam Lattof | Banker & Tradesman Staff
With the merger that created Beacon Bank in the rearview mirror, the bank is looking ahead while dealing with its loan portfolio.
Beacon saw its provision for credit losses increase year over year from $5.9 million to $7.9 million. Additionally, total net charge-offs for the first quarter of 2026 were $13.6 million compared to $9 million in the fourth quarter of 2025 and $7.6 million in the first quarter of 2025.
The $13.6 million in net charge-offs were primarily driven by the resolutions of a large loan secured by an unspecified Boston office building, a large equipment financing loan and several smaller SBA loans, according to the bank’s earnings release.
The ratio of nonperforming loans and leases to total loans and leases was 0.83 percent, an increase from 0.63 percent in the fourth quarter of 2025 and 0.56 percent in the first quarter of 2025. Nonaccruals also increased to $148.6 million in the first quarter of 2026.
The quarter also saw greater levels of nonperforming assets on its balance sheet.
The ratio of nonperforming assets to total assets was 0.68 percent, an increase from 0.50 percent on Dec.31, 2025. Total nonperforming assets increased to $151.2 million in the first quarter.
The increase in nonperforming assets was driven by that Boston office property and $8.9 million in two rent-controlled multifamily properties in New York City, according to the bank. New York City rent-controlled real estate has seen values erode after former New York governor Andrew Cuomo’s administration passed a law capping how much a landlord could recoup from renovations and the administration of former New York City mayor Eric Adams cut rents at these buildings in real-dollar terms in 2024.
Beacon Bank reported a net income of $46.2 million in the first quarter, an increase from $19.1 million last year. Beacon’s board of directors also approved a $50 million stock repurchase program. The bank’s leadership said in statements it is looking ahead to seeing the benefits of its merger with Brookline Bancorp.
That merger was completed late last year, and a core systems conversion was completed in February.
“We remain focused on capturing the full synergies of our merger and executing a strategy that positions the bank for long-term success. We anticipate those actions will translate into stronger financial performance and more robust results as we move through the year,” President and CEO Paul Perrault said in a statement.
The bank has scheduled a conference call with stock analysts for this afternoon.
