BOSTON & BROCKTON, Mass.--(BUSINESS WIRE)--Eastern Bankshares, Inc. ("Eastern†) (NASDAQ Global Select Market: EBC), the holding company for Eastern Bank, and HarborOne Bancorp, Inc. ("HarborOne†) (NASDAQ: HONE), the holding company for HarborOne Bank, today jointly announced they have received all the necessary regulatory approvals to complete their proposed merger (the "Merger†), which was previously announced on April 24, 2025. Eastern and HarborOne expect the Merger to close on or about Nove. ...

BOSTON & BROCKTON, Mass.--(BUSINESS WIRE)--Eastern Bankshares, Inc. ("Eastern†) (NASDAQ Global Select Market: EBC), the holding company for Eastern Bank, and HarborOne Bancorp, Inc. ("HarborOne†) (NASDAQ: HONE), the holding company for HarborOne Bank, today jointly announced that Eastern has caused the election form and letter of transmittal (together with the related instructions, the "Election Materials†) to be distributed to holders of HarborOne common stock so HarborOne shareholders may ele. ...

Core Insights - Eastern has transitioned from a mutual bank to a public entity after over 200 years, with a strategic focus on growth in the New England market, particularly Greater Boston and Southern New Hampshire [1] - The company has pursued growth through both organic means and mergers and acquisitions, with the recent announcement of the HarborOne merger marking the third merger in a five-year period [1] - Following the merger, the company's assets are expected to increase from approximately $11 billion to $30 billion or $31 billion, highlighting significant growth potential [1] - The merger with Cambridge Trust represents a strategic shift towards wealth management as a primary fee-generating business for the company [1]

Summary of Eastern Bankshares FY Conference Call Company Overview - **Company**: Eastern Bankshares, Inc. - **Ticker**: NasdaqGS:EBC - **Assets**: $30 billion pro forma with the HarborOne transaction - **Location**: Boston, Massachusetts Key Points Company Growth and Strategy - Eastern Bankshares transitioned from a mutual bank to a public company five years ago, growing from approximately $11 billion in assets to $30 billion, with the HarborOne merger being the third in this period [5][6] - The company has focused on organic growth and mergers & acquisitions (M&A) to expand its presence in the New England market, particularly in Greater Boston and Southern New Hampshire [5][6] - Wealth management has become a primary fee business following the Cambridge Trust merger, with $9 billion in wealth assets under management [6] Financial Performance - The operating efficiency ratio is around 50%, with an operating return on average assets of 1.3% and return on tangible common equity at 13.5% in the second quarter [6] - The company has a strong core deposit base and liquidity, with no borrowings on the balance sheet, which is crucial for net interest margin and profitability [8] Market Conditions and Opportunities - The Massachusetts economy is currently weaker than the national average, with lower GDP growth and higher unemployment, but this is viewed as a temporary situation [10] - There is optimism among business clients, particularly in the commercial and industrial (C&I) sector, leading to growth opportunities [10] - Limited growth opportunities exist in commercial real estate due to competitors pulling back, but Eastern is below concentration guidelines, allowing for some growth [11] Talent Acquisition and Investment - The company is focused on hiring talent from larger institutions to enhance its commercial banking and wealth management segments [12][13] - Modest system investments are planned, with a focus on improving small business online services in 2026 [12][25] Capital Management and Future Outlook - The company prioritizes organic growth and is looking forward to resuming share repurchases post-HarborOne integration [20][28] - There is a focus on improving capital management, with a split interest in better margin performance and loan growth as key drivers for share valuation [16][20] - The integration of the Cambridge Trust wealth management division is ongoing, with a focus on leveraging referrals from branches and commercial lenders [22][23] Technology and Interest Rate Positioning - Eastern has a robust investment in technology, with plans for continued improvements, particularly in online banking [25] - The balance sheet is positioned to be interest rate neutral, with expectations of deposit growth and a positive impact from a steeper yield curve [26] Additional Insights - The company is committed to being a top quartile performer in return on assets (ROA) and return on equity (ROE) [29] - The management team emphasizes the importance of maintaining a strong operational framework while pursuing growth opportunities [17][28]

Core Viewpoint - Eastern Bankshares, Inc. (NASDAQ: EBC) has experienced mixed performance in recent months, despite a broader market rally that has positively impacted its share price [1]. Company Performance - The shares of Eastern Bankshares have been lifted by the broader market rally, indicating a potential for growth [1]. Investment Strategy - The investment approach favored is a long-term, buy-and-hold strategy, particularly focusing on stocks that can consistently deliver high-quality earnings, often found in the dividend and income sectors [1].

Core Viewpoint - Eastern Bankshares, Inc. (EBC) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - Eastern Bankshares is projected to earn $1.53 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Eastern Bankshares has increased by 4.1%, reflecting a positive trend in earnings estimates [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - The upgrade of Eastern Bankshares to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - The company reported strong performance in Q2 2025, highlighting the strength of the Eastern franchise and its leading position in the Greater Boston area [5] - The earnings call included participation from key executives, including the CEO, CFO, and Executive Chairman [1] - The call was recorded for replay purposes, indicating the importance of the information shared [1] Group 2 - The company cautioned investors about forward-looking statements, emphasizing that actual results may differ due to various risks and uncertainties [2] - Management's views and estimates are based on current information, with no obligation to update these statements in light of new information or future events [3] - The discussion included both GAAP and non-GAAP financial measures, with reconciliations available in the earnings press release [3]

Financial Data and Key Metrics Changes - Operating earnings for the second quarter were $81.7 million, a 21% increase from the first quarter [6] - Net income was reported at $100.2 million or $0.50 per diluted share, with operating earnings of $0.41 per diluted share, reflecting a 21% increase linked quarter and a 78% increase year-over-year [11] - Total assets reached $25.5 billion, up 2% from March 31 [8] - Tangible book value per share increased 4% to $12.53 [8] - Operating return on average assets rose 21 basis points to 1.3%, while operating return on average tangible equity increased from 11.7% to 13.6% [7] Business Line Data and Key Metrics Changes - Robust loan growth of 8% annualized this quarter, with commercial loan pipelines steady at approximately $500 million [8][9] - Wealth management assets under management reached a record high of $8.7 billion, with fees of $17.3 million up $800,000 linked quarter [15] - Non-interest income was $42.9 million, compared to a non-interest loss of $236.1 million in Q1 [14] Market Data and Key Metrics Changes - Deposits totaled $21.2 billion, an increase of $424 million from the prior quarter, with 8% annualized growth [17] - Nonperforming loans decreased to $54.7 million or 30 basis points of total loans, improving the coverage ratio to 424% from 245% at the end of Q1 [21][22] Company Strategy and Development Direction - The company is focused on organic growth and strategic investments in talent, particularly in commercial lending [8][19] - Plans to consolidate 13 branch locations following the merger with Harbor One, with integration planning well underway [29][30] - The company is raising its full-year loan growth outlook to 3% to 5% and expects a favorable mix shift from CDs to money markets [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customers despite economic uncertainties and highlighted the importance of proactive risk management [9][10] - The company remains cautious in its outlook but is optimistic about the ongoing positive trends in credit quality and profitability metrics [10][21] Other Important Information - The company repurchased $3 million worth of shares at an average price of $16.36 prior to the merger announcement [20] - A dividend of $0.13 is set to be paid in September [20] Q&A Session Summary Question: Will there be more securities portfolio restructurings in the coming quarters? - Management indicated that while there is potential for further restructuring, it is currently on the back burner due to the merger [34][35] Question: What drove the significant drop in nonperforming loans this quarter? - The drop was attributed to the resolution of five credits by the managed asset group, rather than loan sales [36] Question: Are there plans to expand into new markets following the Harbor One deal? - Management is open to expanding in Rhode Island but currently has no plans to extend banking services into Connecticut or New York [38][39] Question: What drove the strong growth in commercial and industrial lending? - Growth was driven by increased customer confidence and the addition of talent in the commercial lending division [44][45] Question: What is the outlook for the margin in the second half of the year? - The margin is expected to be relatively flat, influenced by core deposit growth and competitive market conditions [49][50] Question: Can you provide guidance on Rabbi Trust income? - Rabbi Trust income is influenced by equity market performance, and while it can have an impact, it is not expected to be a significant needle mover [54][55] Question: What is the company's appetite for expansion into New Hampshire or Maine? - The company already has a presence in New Hampshire and is looking to grow there, but has no current plans for expansion into Maine [72][73]

Financial Data and Key Metrics Changes - Operating earnings for Q2 2025 were $81.7 million, a 21% increase from Q1 2025 [7] - Net income was $100.2 million or $0.50 per diluted share, with operating earnings of $0.41 per diluted share, reflecting a 21% increase linked quarter and a 78% increase year-over-year [12][28] - Total assets reached $25.5 billion, up 2% from March 31 [8] - Tangible book value per share increased 4% to $12.53 [8] - Operating return on average assets rose 21 basis points to 1.3%, and return on average tangible equity increased from 11.7% to 13.6% [8][13] Business Line Data and Key Metrics Changes - Robust loan growth of 8% annualized this quarter, with commercial loan pipelines steady at approximately $500 million [8][9] - Noninterest income was $42.9 million, compared to a noninterest loss of $236.1 million in Q1 2025 [15] - Wealth management assets under management reached a record high of $8.7 billion, with fees of $17.3 million, up $800,000 linked quarter [16] Market Data and Key Metrics Changes - Deposits totaled $21.2 billion, an increase of $424 million from the prior quarter, with 8% annualized growth [20] - Nonperforming loans decreased to $54.7 million or 30 basis points of total loans, improving from the previous quarter [23][24] Company Strategy and Development Direction - The company is focused on organic growth and strategic investments in talent, particularly in commercial lending [8][44] - Plans to consolidate 13 branch locations following the merger with Harbor One, with integration planning well underway [30][31] - The company raised its full-year loan growth outlook to 3% to 5%, reflecting strong results through the first half of the year [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customers despite economic uncertainties and highlighted the importance of proactive risk management [10][11] - The company remains cautious in its outlook but is optimistic about the ongoing positive trends in credit quality and profitability metrics [11][23] - The competitive market for deposits has heated up, impacting margin expectations for the second half of the year [50] Other Important Information - The company repurchased $3 million worth of shares at an average price of $16.36 prior to the merger announcement [22] - A dividend of $0.13 is set to be paid in September [22] Q&A Session Summary Question: Will there be more securities portfolio restructurings in the coming quarters? - Management indicated that while there is potential for another restructuring, it is currently on the back burner due to the merger [35] Question: What drove the significant drop in nonperforming loans this quarter? - The drop was attributed to the resolution of five credits rather than loan sales [37] Question: Are there plans to expand into new markets following the Harbor One deal? - Management is open to expanding in Rhode Island but has no current plans to enter Connecticut or New York [39][40] Question: What drove the strong growth in commercial and industrial loans? - Growth was driven by increased customer confidence and the addition of talent in the commercial lending division [44] Question: What is the outlook for the margin in the second half of the year? - Management expects the margin to be relatively flat, influenced by core deposit growth and competitive market conditions [50] Question: Can you provide guidance on Rabbi Trust income? - Rabbi Trust income is influenced by equity market performance, and while it can have an impact, it is not expected to be a significant factor moving forward [54]

Financial Performance - Net income was $100.2 million, which translates to $0.50 per diluted share[5] - Operating net income reached $81.7 million, or $0.41 per diluted share, marking a 21% increase compared to the previous quarter[5] - Net interest margin expanded by 21 basis points to 3.59%[7] - Operating efficiency ratio improved to 50.8%[9] Balance Sheet & Loan Portfolio - Total loans increased by $385 million, representing an annualized growth of 8%[54] - Total deposits remained consistent with the previous quarter[24] - Non-performing loans decreased to $54.7 million, accounting for 0.30% of total loans, an improvement from $91.6 million or 0.51% at March 31, 2025[7] - Wealth management assets under management reached a record high of $8.7 billion[7] Commercial Real Estate (CRE) - CRE portfolio totaled $7.3 billion, representing 39% of total loans[79, 83] - Non-performing CRE loans decreased to $25 million, or 0.4% of total CRE loans, compared to $58 million, or 0.8% in the prior quarter[83] - CRE investor office loans amounted to $828 million, or 4% of total loans[89] Capital & Outlook - Common Equity Tier 1 (CET1) capital ratio stood at 14.4%[64] - Tangible book value per share increased by $0.52 to $12.53, a 4% increase compared to the previous quarter[5] - The company expects loan growth of 3%-5% and deposit growth of 0%-1% for the full year 2025[91]