Core Insights - Eastern Bankshares, Inc. (EBC) reported a revenue of $244.9 million for the quarter ended June 2025, marking a year-over-year increase of 59% and exceeding the Zacks Consensus Estimate by 2.71% [1] - The earnings per share (EPS) for the same period was $0.41, compared to $0.22 a year ago, resulting in an EPS surprise of 7.89% over the consensus estimate of $0.38 [1] Financial Performance Metrics - The efficiency ratio (GAAP) was reported at 55.9%, better than the estimated 56.4% [4] - The net interest margin stood at 3.6%, slightly above the estimated 3.5% [4] - Total interest-earning assets averaged $23.14 billion, below the estimated $23.39 billion [4] - Total non-performing assets were $54.7 million, significantly lower than the estimated $131.91 million [4] - Total non-performing loans matched the non-performing assets at $54.7 million, again below the average estimate of $131.91 million [4] - Total noninterest income was $42.9 million, exceeding the estimated $34.58 million [4] - Net interest income was reported at $202 million, slightly above the average estimate of $200.91 million [4] - Interest rate swap income was $1 million, surpassing the estimated $0.51 million [4] - Card income reached $4.2 million, above the estimated $4 million [4] - Investment advisory fees totaled $17.3 million, exceeding the estimated $16.51 million [4] - Service charges on deposit accounts were $8.2 million, slightly below the estimated $8.32 million [4] Stock Performance - Shares of Eastern Bankshares have returned +9.2% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Eastern Bankshares, Inc. reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing a significant increase from $0.22 per share a year ago, indicating strong financial performance [1][2]. Financial Performance - The company achieved revenues of $244.9 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.71%, compared to $154 million in the same quarter last year [2]. - Over the last four quarters, Eastern Bankshares has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2]. Stock Performance - Eastern Bankshares shares have declined approximately 6.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3]. - The current Zacks Rank for Eastern Bankshares is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $242.71 million, and for the current fiscal year, it is $1.52 on revenues of $977.03 million [7]. - The estimate revisions trend for Eastern Bankshares was mixed ahead of the earnings release, which may change following the recent report [6]. Industry Context - The Banks - Northeast industry, to which Eastern Bankshares belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].

Executive Summary & Financial Highlights Eastern Bankshares, Inc. reported strong Q2 2025 financial results, driven by significant improvements in net income, loan growth, and margin expansion [Q2 2025 Financial Overview](index=1&type=section&id=Q2%202025%20Financial%20Overview) Q2 2025 financial results showed significant improvements in net income and operating net income, driven by robust loan and deposit growth, net interest margin expansion, and improved asset quality | Metric | Jun 30, 2025 ($ in millions) | Mar 31, 2025 ($ in millions) | Linked Quarter Change ($) | Linked Quarter Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | :----------------------- | | Net income (loss) | 100.2 | (217.7) | 317.9 | NM | | Per share, diluted | 0.50 | (1.08) | 1.58 | NM | | Operating net income* | 81.7 | 67.5 | 14.2 | 21 % | | Per share, diluted* | 0.41 | 0.34 | 0.07 | 21 % | | Net interest income | 202.0 | 188.9 | 13.1 | 7 % | | NIM - FTE* | 3.59 % | 3.38 % | 0.21 % | NM | | Loans (period-end) | 18,590 | 18,204 | 385 | 2 % | | Deposits (period-end) | 21,221 | 20,797 | 424 | 2 % | | Non-performing loans | 54.7 | 91.6 | (36.9) | (40)% | | Total non-performing loans to total loans | 0.30 % | 0.51 % | (0.21)% | NM | - Net income of **$100.2 million**, or **$0.50 per diluted share**, included a GAAP tax benefit related to losses from investment portfolio repositioning completed in the first quarter[3](index=3&type=chunk) - Period-end loans grew **8% annualized** linked quarter, primarily driven by higher Commercial & Industrial (C&I) activity[3](index=3&type=chunk) - Net interest margin on a fully tax equivalent basis expanded **21 basis points to 3.59%**, primarily due to higher asset yields[3](index=3&type=chunk) Management Commentary Executives expressed confidence in the company's strong franchise and value creation from the HarborOne merger, highlighting robust loan growth, stable deposit costs, record wealth management assets, and positive credit trends [Executive Perspectives](index=2&type=section&id=Executive%20Perspectives) Executives highlighted the company's strong franchise and market position in Greater Boston, with confidence in the value creation from the HarborOne merger, emphasizing robust loan growth, stable deposit costs, record wealth management assets, and continued positive credit trends as key drivers of enhanced earnings power - Confidence in opportunities and long-term value creation from the HarborOne combination, with integration planning well underway for a seamless transition[4](index=4&type=chunk) - Robust loan growth reflects an ongoing focus on profitable growth and strategic investments in hiring talent, leveraging scale and deep local knowledge[4](index=4&type=chunk) - Deposits finished the quarter strong with **8% annualized linked quarter growth**, primarily from higher municipal balances, and deposit costs remained stable due to disciplined pricing and favorable deposit mix[4](index=4&type=chunk) - Wealth management momentum continued, with assets under management reaching a record high of **$8.7 billion**[4](index=4&type=chunk) - Operating income increased **21% linked quarter**, generating an operating return on average tangible equity of **13.6%**, driven by net interest margin expansion, fee income growth, and efficiency ratio improvement[4](index=4&type=chunk) - Continued positive credit trends, with non-performing loans as a percentage of total loans improving for the second consecutive quarter and no net charge-offs, reflecting quality underwriting and proactive risk management[4](index=4&type=chunk) Quarterly Financial Performance The company's Q2 2025 financial performance was marked by increased net interest income due to margin expansion, a significant improvement in noninterest income from the absence of prior quarter losses, and a rise in noninterest expense driven by operating costs and merger-related charges [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income increased by **$13.1 million** linked quarter, primarily driven by a **21 basis point** expansion in the net interest margin (FTE) to **3.59%**, resulting from higher asset yields and stable deposit costs | Metric | Jun 30, 2025 ($ in millions) | Mar 31, 2025 ($ in millions) | Linked Quarter Change ($) | Linked Quarter Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | :----------------------- | | Net interest income | 202.0 | 188.9 | 13.1 | 7 % | | Net interest margin (FTE) | 3.59 % | 3.38 % | 0.21 % | NM | | Yield on total interest-earning assets | 4.93 % | 4.72 % | 0.21 % | NM | | Cost of total interest-bearing liabilities | 2.04 % | 2.05 % | (0.01)% | NM | | Net discount accretion | 16.5 | 12.2 | 4.3 | 35 % | - The yield on total interest-earning assets increased **21 basis points to 4.93%**, primarily due to higher investment and loan yields[7](index=7&type=chunk) - Net discount accretion contributed **29 basis points** to the net interest margin on an FTE basis, up from **22 basis points** in the prior quarter[7](index=7&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income significantly improved from a loss in the prior quarter to a gain of **$42.9 million**, primarily due to the absence of large losses from investment portfolio repositioning, with operating noninterest income also seeing a healthy increase driven by higher income from rabbi trust investments and investment advisory fees | Metric | Jun 30, 2025 ($ in millions) | Mar 31, 2025 ($ in millions) | Linked Quarter Change ($) | Linked Quarter Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | :----------------------- | | Noninterest income (loss) | 42.9 | (236.1) | 279.0 | NM | | Operating noninterest income* | 42.2 | 34.2 | 8.0 | 23 % | | Income from investments held in rabbi trust accounts | 5.7 | (1.3) | 7.0 | NM | | Investment advisory fees | 17.3 | 16.4 | 0.8 | 5 % | | Interest rate swap income | 1.0 | 0.5 | 0.5 | 100 % | - The first quarter included pre-tax non-operating losses on the sale of available-for-sale securities of **$269.6 million** related to investment portfolio repositioning, which did not recur in Q2[6](index=6&type=chunk) - Income from investments held in rabbi trust accounts increased **$7.0 million to $5.7 million** due to equity market performance, partially offset by a **$3.2 million** increase in rabbi trust benefit costs reported in noninterest expense[8](index=8&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Total noninterest expense increased by **$6.8 million** linked quarter, driven by higher operating noninterest expense and the incurrence of merger-related costs | Metric | Jun 30, 2025 ($ in millions) | Mar 31, 2025 ($ in millions) | Linked Quarter Change ($) | Linked Quarter Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | :----------------------- | | Noninterest expense | 137.0 | 130.1 | 6.8 | 5 % | | Operating noninterest expense* | 134.4 | 130.1 | 4.3 | 3 % | | Merger-related costs | 2.6 | — | 2.6 | NM | - Key drivers of the increase in operating noninterest expense include: Salaries and employee benefits (up **$0.8 million to $80.7 million**), Marketing (up **$0.7 million to $2.4 million**), Occupancy and equipment (up **$0.6 million to $11.2 million**), Federal Deposit Insurance Corporation insurance (up **$0.5 million to $3.8 million**), and Technology and data processing (up **$0.4 million to $18.4 million**)[9](index=9&type=chunk)[15](index=15&type=chunk) Balance Sheet and Capital Management The company's balance sheet demonstrated growth in total assets, loans, and deposits, while maintaining strong capital ratios and continuing to return capital to shareholders [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) The company's balance sheet showed growth in total assets, loans, and deposits linked quarter, reflecting increased business activity and strategic management of liquidity | Metric | Jun 30, 2025 ($ in millions) | Mar 31, 2025 ($ in millions) | Linked Quarter Change ($) | Linked Quarter Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | :----------------------- | | Total assets | 25,456.2 | 24,986.0 | 470.1 | 2 % | | Total loans | 18,589.8 | 18,204.5 | 385.3 | 2 % | | Total deposits | 21,220.8 | 20,797.1 | 423.7 | 2 %

Core Viewpoint - Eastern Bankshares, Inc. (EBC) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Company Performance Indicators - For the fiscal year ending December 2025, Eastern Bankshares is expected to earn $1.52 per share, representing a 43.4% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Eastern Bankshares has increased by 2.4%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Eastern Bankshares to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10].

Core Viewpoint - Eastern Bankshares, Inc. (EBC) shows potential for significant upside, with a mean price target of $19.25 indicating a 30.2% increase from the current price of $14.78 [1] Price Targets and Analyst Consensus - The average price targets for EBC range from a low of $16 to a high of $23, with a standard deviation of $2.99, suggesting a moderate agreement among analysts [2] - The lowest estimate indicates an 8.3% increase, while the highest suggests a 55.6% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about EBC's earnings prospects, as indicated by a positive trend in earnings estimate revisions [4][11] - The Zacks Consensus Estimate for the current year has increased by 2.4% over the past month, with three estimates revised upward and no negative revisions [12] - EBC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 001-39610 ___________________________ Eastern Bankshares, Inc. _____________________________________________ FORM 10-Q _____________________________________________ (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Registrant ...

Shares of Eastern Bankshares, Inc. (EBC) have gained 0.2% over the past four weeks to close the last trading session at $14.95, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $19.25 indicates a potential upside of 28.8%.The mean estimate comprises four short-term price targets with a standard deviation of $2.99. While the lowest estimate of $16 indicates a 7% increase from the ...

Investors might want to bet on Eastern Bankshares, Inc. (EBC) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual invest ...

Financial Data and Key Metrics Changes - The company reported operating earnings of $67.5 million, benefiting from a 33 basis point expansion in the net interest margin and an improvement in the operating efficiency ratio to 53.7% [9][16] - Operating return on average tangible common equity increased by 40 basis points to 11.7%, while operating return on average assets rose by 3 basis points to 1.09% [9][15] - GAAP net loss was reported at $1.08 per diluted share due to the strategic repositioning of $1.3 billion of securities, which is expected to be $0.13 accretive to 2025 operating EPS [14][39] Business Line Data and Key Metrics Changes - The lending environment showed a 3% annualized loan growth primarily due to higher commercial and industrial (C&I) balances, despite a cautious outlook for the remainder of the year [10][22] - Wealth management assets under management increased to $8.4 billion, driven by net client flows, although a large short-term inflow is expected to reverse in the second quarter [12][19] - Noninterest income was reported as a loss of $236.9 million due to non-operating losses on the sale of AFS securities, while operating noninterest income decreased by $2.7 million [17][18] Market Data and Key Metrics Changes - Period-end deposits totaled $20.8 billion, a decrease of $522 million primarily due to seasonal outflows and runoff of high-cost CDs [20] - The company maintains a favorable deposit mix with 50% of deposits in checking accounts, providing a stable low-cost funding base [20] - The commercial real estate loan portfolio stands at $7.2 billion, with a focus on local markets and diversified by sector [28] Company Strategy and Development Direction - The announced merger with Harbor One Corp. is expected to create a $30 billion bank, enhancing Eastern's market presence in Greater Boston and Rhode Island [6][34] - The merger is projected to deliver approximately 16% EPS accretion and improve operating efficiency, with a tangible book value earn-back of 2.8 years [39][40] - The company aims to deepen the alignment between its wealth management and banking businesses, capitalizing on synergies from the merger [11][35] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the lending environment due to economic uncertainty and ongoing changes in trade policies [10] - The company remains optimistic about achieving its projections for the year, despite the fluid economic environment [31] - Management highlighted the importance of monitoring evolving economic conditions and policies that could impact business and communities [12][32] Other Important Information - The company repurchased $48.7 million worth of shares during the quarter and announced an 8% increase in the quarterly dividend [6][26] - The company has no equity capital raise or debt needed to complete the merger, which is expected to enhance earnings power and profitability [46] Q&A Session Summary Question: Will the company continue share buybacks during the merger process? - The company will pause share buybacks while using an equity component in the merger consideration until after shareholder approval [54] Question: What is the expected closing date for the merger? - The merger is targeted to close by October 31, pending regulatory approvals, with a possibility of deferring to Q1 2026 if necessary [55] Question: Can you elaborate on the franchise lending group that was recently hired? - The company hired two seasoned lenders to enhance its franchise lending capabilities, focusing on various sectors including fast food, with expectations for continued growth [56] Question: What is the effective tax rate for the remainder of the year? - The company expects an effective tax rate of about 11% for the full year, despite a large GAAP loss in the first quarter [62] Question: How does the company plan to integrate Harbor One's mortgage business? - The company plans to optimize the combined mortgage business, recognizing that Harbor One is currently a larger player in the mortgage market [64] Question: What is the company's outlook for charge-off rates in the coming years? - Management expressed caution in providing specific charge-off rate projections due to economic uncertainties but noted strong credit performance in the current quarter [96]

Q1 2025 Financial Performance - The company reported a net loss of $217.7 million, or $1.08 per diluted share, primarily due to the sale of $1.3 billion of low-yielding available-for-sale (AFS) securities[5,7] - Operating net income reached $67.5 million, or $0.34 per diluted share[5,7] - Net interest margin (NIM) expanded by 33 basis points to 3.38%[5,7] Asset Quality and Capital - Non-performing loans (NPLs) decreased to $91.6 million, representing 0.51% of total loans, an improvement from $135.8 million, or 0.76% at year-end 2024[5,7] - The company's CET1 ratio stood at 14.2% and allowance coverage to total loans was 1.25%[5,7,67] - The company repurchased 2.9 million shares for $48.7 million at a weighted average price of $16.62 per share[7] Deposits and Loans - Total deposits decreased by $636 million linked-quarter to $20.828 billion, with 50% in checking accounts[25,46,53] - Total loans increased by $125 million linked quarter, or 3% annualized[57] - The CRE portfolio totaled $7.2 billion, representing 39% of total loans[87] Merger with HarborOne - The company announced a merger with HarborOne, a transaction valued at $490 million[137,154] - The merger is expected to result in approximately 16% EPS accretion in 2026[137,156] - The company anticipates cost savings of approximately $55 million, representing about 40% of HarborOne's operating non-interest expenses[154,166]