Eastern Bankshares (NasdaqGS:EBC) Q3 2025 Earnings Call October 24, 2025 09:00 AM ET Speaker7Welcome to the Eastern Bankshares, Inc. Third Quarter 2025 Earnings Conference Call. Currently, all participant lines are in a listen-only mode. Following the prepared remarks, there will be a question and answer session. Please note this event is being recorded for replay purposes. In connection with today's call, the company posted a presentation on its investor relations website, investor.easternbank.com, which w ...

Key Takeaways ASB's Q3 EPS of $0.73 beat estimates, driven by higher NII and non-interest income.Net income rose 43% year over year as provisions declined and lending volumes increased.Management lifted the 2025 fee income outlook to 5-6% growth, reflecting stronger core operations.Associated Banc-Corp’s (ASB)  third-quarter 2025 earnings of 73 cents per share outpaced the Zacks Consensus Estimate of 66 cents. Also, the bottom line compared favorably with 56 cents earned in the prior-year quarter.Results be ...

Core Insights - The acquisition of Comerica by Fifth Third Bancorp, valued at $10.9 billion, will create the ninth-largest bank in the U.S. by assets, emphasizing the importance of scale in deposits, technology, and data in regional banking [3][4][5] - The merger will enhance Fifth Third's footprint from the Midwest to the South and Sun Belt, positioning the new entity as a super-regional bank [6][8] Company Overview - The combined company will hold approximately $288 billion in assets, with Fifth Third shareholders owning about 73% and Comerica shareholders 27% of the new entity [4][5] - The merger is expected to close early next year, pending regulatory approvals [5] Industry Trends - The merger reflects a broader trend of consolidation among regional and super-regional banks, driven by the need for scale and technological integration [1][3][12] - Recent earnings reports from regional banks indicate a cautious optimism, with technology investments leading to significant revenue growth [10] Market Dynamics - The U.S. commercial banking landscape is becoming increasingly fragmented, with a steady decline in the number of measurable scale banks due to mergers [12][13] - Smaller community banks struggle to compete due to limited technology budgets and compliance capabilities, while larger national banks dominate the market [13] Technological Integration - The Fifth Third-Comerica merger will facilitate the integration of technology, consolidating core systems, data analytics, and payments infrastructure, which is crucial for operational efficiency [14]

Company Overview - Medallion Financial Corp is a specialty finance company focusing on consumer and commercial lending[2] - The company has a strong foundation with a history of niche lending excellence and significant insider ownership of over 20%[7] - Medallion Financial Corp has a coveted Industrial Bank Charter[7] Financial Performance - The company's core consumer lending business is performing well, with the consumer loan portfolio more than doubling over the past 5 years to $235 billion[7] - Total Company Net Interest Margin was 805% in FY24[7] - The company's market capitalization is $2382 million, with a share price of $1025 as of July 29, 2025[6] - The total gross loans as of June 30, 2025, were $25 billion, with recreation loans accounting for $1545 million (622%) and home improvement loans accounting for $804 million (323%)[13] - Net interest income for YTD 2Q25 was $1048 million[17] - Net income attributable to Medallion Financial Corp for YTD 2Q25 was $23083 million[41] Strategic Initiatives - The company has a strategic partnership program with fintech partners, generating $3049 million in loan originations in H1 2025[8] - The company is focused on enhanced operating efficiency, with operating costs as a percentage of net interest income decreasing from 50% in FY2020 to 40% in YTD 2Q25[26]

Financial Data and Key Metrics Changes - The company reported a net income of $12 million and earnings per share of $0.50 for the quarter [5] - Net interest income grew by 7% to $51.4 million compared to the previous year [13] - The net interest margin on gross loans was 7.94%, up 10 basis points from the previous quarter [13] - The net book value per share increased to $16.36 from $16 in the prior quarter and $14.93 a year ago [17] Business Line Data and Key Metrics Changes - The consumer lending business originated $136 million in loans, maintaining a loan book of $2.4 billion [5] - Recreation loans originated totaled $86.8 million at an average rate of 16.06%, while home improvement loans were $48.8 million at an average rate of 11.5% [14] - The commercial lending division originated $9.7 million in new loans and exited one loan with a significant return [6][7] Market Data and Key Metrics Changes - The company collected $2.6 million in cash from its taxi medallion business, consistent with the previous quarter [9] - The strategic partnership program achieved over $125 million in originations for the second consecutive quarter [10] Company Strategy and Development Direction - The company is focused on a methodical approach to growth, ensuring sustainable practices in its lending operations [11] - There is an ongoing effort to expand the strategic partnership program, with expectations to add new partners over time [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash collections from the taxi medallion business and identified recovery opportunities in charge-off loans [9] - The company anticipates continued gains from its equity investments, although the timing of exits remains unpredictable [8][27] Other Important Information - The company repurchased approximately 60,000 shares and has $15 million remaining under its share repurchase plan [11] - A 9% increase in the quarterly dividend to $0.12 per share was approved by the Board, marking the third increase since reinstating the dividend [12] Q&A Session Summary Question: Were there any nonrecurring expense items aside from those highlighted? - Management noted elevated professional fees, including $300,000 in technology costs and $600,000 related to the annual meeting [20] Question: Any update on the SEC matter? - Management believes the SEC matter has been resolved, pending board approval and judicial sign-off [22] Question: What flexibility exists in building reserves? - Management confirmed flexibility in determining allowances, using qualitative factors to increase consumer provisions [23] Question: Any anticipated capital gains from Medallion Capital? - Management expects one or two more capital gains this year, though timing is uncertain [27] Question: Outlook on normalized earnings? - Management discussed adjustments for nonrecurring items and expected normalized earnings to be around $0.35 per share [36] Question: Timing for loan sales? - Management anticipates closing a loan sale in Q2, with another sale expected in Q3 or Q4 [38] Question: Durability of strategic partnership loan volume? - Management expressed confidence in maintaining loan volume above $100 million per quarter, with potential for growth [43] Question: Outlook on margins and loan growth? - Management expects margins to remain stable and projects loan growth of 5% to 7% for the year [48]

Financial Performance - Net interest income for 1Q25 was $51.4 million[34] - The net interest margin was 7.94% on gross loans and 8.25% on net loans[16,34] - Net income attributable to Medallion Financial Corp was $12.0 million in 1Q25[30] - Return on common equity was 12.96%[16] Loan Portfolio - Total loan portfolio reached $2.486 billion as of March 31, 2025[18] - Recreation loans constitute 62% of the portfolio, totaling $1.545 billion[18] - Home Improvement loans represent 33% of the portfolio, amounting to $812 million[14,18] - Commercial loans account for 4% of the portfolio, with a total of $116 million[14,18] - Loan originations totaled $136.2 million for the Strategic Partnership Program[15] Shareholder Value - A dividend of $0.11 per share was paid per quarter, with an increase to $0.12 per share beginning May 2025[16] - The company repurchased 60,185 shares at an average cost of $8.83 per share[16] - $14.9 million remains in the share repurchase plan[16]