Beacon Financial CorpBBT
Beacon Financial Corp Debt Disclosure
Borrowed Funds
Borrowed funds are comprised of the following:
| At December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Advances from the FHLB | $ | 555,788 | $ | 1,355,926 | |||||||
| Subordinated debentures and notes | 198,572 | 84,328 | |||||||||
| Other borrowed funds | 34,000 | 79,592 | |||||||||
| Total borrowed funds | $ | 788,360 | $ | 1,519,846 | |||||||
Interest expense on borrowed funds for the periods indicated is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In Thousands) | |||||||||||||||||
| Advances from the FHLB | $ | 37,511 | $ | 55,851 | $ | 52,467 | |||||||||||
| Subordinated debentures and notes | 9,436 | 6,074 | 5,476 | ||||||||||||||
| Other borrowed funds | 2,235 | 4,048 | 3,968 | ||||||||||||||
| Total interest expense on borrowed funds | $ | 49,182 | $ | 65,973 | $ | 61,911 | |||||||||||
Collateral Pledged to Borrowed Funds
As of December 31, 2025 and 2024, $7.1 billion and $4.4 billion, respectively, of investment securities and loans and leases, were pledged as collateral for repurchase agreements, swap agreements, FHLB/Federal Reserve Bank borrowings, municipal deposits, and TT&L. The Bank did not have any outstanding Federal Reserve Bank borrowings as of December 31, 2025 and 2024.
Advances from the FHLB
FHLB advances mature as follows:
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| At December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
Amount (1) | Weighted Average Rate | Amount | Weighted Average Rate | ||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| Within 1 year | $ | 510,446 | 4.06 | % | $ | 1,278,372 | 4.74 | % | |||||||||||||||
| Over 1 year to 2 years | 27,179 | 3.62 | % | 70,000 | 4.25 | % | |||||||||||||||||
| Over 2 years to 3 years | 1,529 | — | % | 316 | 0.76 | % | |||||||||||||||||
| Over 3 years to 4 years | 2,770 | 0.64 | % | 750 | — | % | |||||||||||||||||
| Over 4 years to 5 years | 5,200 | — | % | 1,827 | 1.05 | % | |||||||||||||||||
| Over 5 years | 9,658 | 2.00 | % | 4,661 | 3.35 | % | |||||||||||||||||
| $ | 556,782 | 3.94 | % | $ | 1,355,926 | 4.70 | % | ||||||||||||||||
(1) Excludes $(1.0) million in FHLB borrowings fair value adjustment related to the Transaction.
Actual maturities of the advances may differ from those presented above since the FHLB has the right to call certain advances prior to the scheduled maturity.
The FHLB advances are secured by blanket pledge agreements which require the Bank to maintain certain qualifying assets as collateral. The Company's remaining borrowing capacity from the FHLB for advances and repurchase agreements was $3.9 billion as of December 31, 2025. The total amount of qualifying collateral for FHLB and Federal Reserve Bank borrowings was $7.5 billion as of December 31, 2025.
Other Borrowed Funds
Information concerning other borrowed funds is as follows for the periods indicated below:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (Dollars In Thousands) | |||||||||||
| Outstanding at end of year | $ | 34,000 | $ | 79,592 | |||||||
| Average outstanding for the year | 49,374 | 78,859 | |||||||||
| Maximum outstanding at any month-end | 135,985 | 127,505 | |||||||||
| Weighted average rate at end of year | 3.67 | % | 4.33 | % | |||||||
| Weighted average rate paid for the year | 4.53 | % | 5.13 | % | |||||||
In addition to advances from the FHLB and subordinated debentures and notes, the Company utilizes other funding sources as part of the overall liquidity strategy. Those funding sources include repurchase agreements and committed and uncommitted lines of credit with several financial institutions.
As of December 31, 2025, the Bank also has access to funding through certain uncommitted lines via AFX as well as committed and uncommitted lines from other large financial institutions. As of December 31, 2025, the Company had no borrowings outstanding with these committed and uncommitted lines.
The Company has access to the Federal Reserve Discount Window to supplement its liquidity. The Company has $601.9 million of borrowing capacity at the FRB as of December 31, 2025. As of December 31, 2025, the Company did not have any borrowings with the FRB outstanding.
As of December 31, 2025, the Company had $33.1 million in interest-bearing cash held as collateral from dealer counterparties. This compares to $79.6 million outstanding as of December 31, 2024. This cash collateralizes the fair value of the dealer side of derivative transactions.
Subordinated Debentures and Notes
The Company has two $5.0 million subordinated debentures due on June 26, 2033 and March 17, 2034, respectively. The Company is obligated to pay 3-month CME term SOFR plus spread adjustment of 0.26% plus 3.10% and 3-month CME term SOFR plus spread adjustment of 0.26% plus 2.79%, respectively, on a quarterly basis until the debentures mature.
The Company sold $75.0 million of 6.0% fixed-to-floating subordinated notes due September 15, 2029. The Company is obligated to pay 3-month CME term SOFR plus spread adjustment of 0.26% plus 3.32% quarterly until the notes mature in September 2029.
In connection with the Transaction, the Company assumed ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% until June 30, 2027, after which the notes become callable and will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points.
The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets with a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to 3-month CME Term SOFR plus 1.85%. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value on each quarterly payment date. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements.
The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets with a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to 3-month CME Term SOFR plus 1.70%. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements.
The following table summarizes the Company's subordinated debentures and notes at the dates indicated.
| Carrying Amount | ||||||||||||||||||||||||||||||||
| Issue Date | Rate | Maturity Date | Next Call Date | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||||||||
| June 26, 2003 | Variable; 3-month CME term SOFR + spread adjustment of 0.26% + 3.10% | June 26, 2033 | March 26, 2026 | $ | 4,935 | $ | 4,920 | |||||||||||||||||||||||||
| March 17, 2004 | Variable; 3-month CME term SOFR + spread adjustment of 0.26% + 2.79% | March 17, 2034 | March 17, 2026 | 4,902 | 4,880 | |||||||||||||||||||||||||||
| June 30, 2005 | Variable; 3-month CME term SOFR + spread adjustment of 0.26% + 1.85% | August 23, 2035 | February 23, 2026 | 13,943 | — | |||||||||||||||||||||||||||
| September 21, 2006 | Variable; 3-month CME term SOFR + spread adjustment of 0.26% + 1.70% | December 15, 2036 | March 15, 2026 | 7,232 | — | |||||||||||||||||||||||||||
| September 15, 2014 | Variable; 3-month CME term SOFR + spread adjustment of 0.26% + 3.32% | September 15, 2029 | March 16, 2026 | 72,528 | 74,528 | |||||||||||||||||||||||||||
| June 30, 2022 | Variable; 3-month CME term SOFR + 2.49% | July 1, 2032 | June 30, 2027 | 95,032 | — | |||||||||||||||||||||||||||
| Total | $ | 198,572 | $ | 84,328 | ||||||||||||||||||||||||||||
The above carrying amounts of the acquired subordinated debentures included $0.2 million of accretion adjustments and $0.4 million of capitalized debt issuance costs as of December 31, 2025. This compares to $0.2 million of accretion adjustments and $0.5 million of capitalized debt issuance costs as of December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.