Core Points - Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. have received all necessary regulatory approvals for their proposed merger [1] - The merger was initially announced on April 24, 2025, and is expected to close on or about November [1]

Core Viewpoint - Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. have announced the distribution of Election Materials to HarborOne shareholders for the election process related to their common stock [1] Group 1 - Eastern Bankshares, Inc. is the holding company for Eastern Bank [1] - HarborOne Bancorp, Inc. is the holding company for HarborOne Bank [1] - The Election Materials include an election form and a letter of transmittal along with related instructions [1]

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]