EBC

Eastern Bank delivered results in line with market expectations for the second quarter, supported by growth in both commercial lending and wealth management. Management credited broad-based C&I loan growth, healthy deposit inflows, and ongoing cost discipline as primary drivers of the quarter. CEO Denis K. Sheahan emphasized the impact of “enhanced earning power of the franchise” and noted continued positive operating leverage. Positive trends in fee income, driven by wealth management and investment advisory, also contributed to the quarter’s performance. Is now the time to buy EBC? Find out in our full research report (it’s free). Revenue: $316 million vs analyst estimates of $307.5 million (26.9% year-on-year growth, 2.8% beat) Adjusted EPS: $0.49 vs analyst estimates of $0.46 (5.9% beat) Market Capitalization: $5.05 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stedi Strickland (Hovde): Asked about deposit competition and whether cost pressures could accelerate in the second half. CFO R. David Rosato replied that competition remains steady and does not expect relief soon given rate expectations. Justin Crowley (Piper Sandler): Inquired about net interest income guidance and whether asset repricing would offset funding cost pressure. Rosato acknowledged ongoing asset repricing but cautioned that deposit costs may slightly erode margin. Jared David Shaw (Barclays): Questioned trends in wealth management competitiveness and differentiation. CEO Denis K. Sheahan responded that, despite increased competition, Eastern Bank’s integrated approach and internal referrals provide growth opportunities. Damon Paul DelMonte (KBW): Sought details on the commercial loan pipeline’s industry mix and expense management strategy. Sheahan reported broad-based growth and Rosato highlighted the company’s ongoing commitment to balancing investment with cost control. Laura Havener Hunsicker (Seaport Research Partners): Probed on the realization of HarborOne cost synergies and future expense run rate. Rosato confirmed that most cost savings are now reflected in the current run rate, with only minor synergies left to capture. In the coming quarters, the StockStory team will be monitoring (1) the pace of commercial loan pipeline conversion into funded balances, (2) whether deposit growth can continue amid competitive pressures and shifting customer preferences, and (3) sustained momentum in wealth management fee income. Additional focus will be on expense management and any adjustments to asset quality in response to broader economic trends. Eastern Bank currently trades at $22.43, in line with $22.62 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Regional banking company Eastern Bankshares (NASDAQ:EBC) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 24.2% year on year to $309.5 million. Its non-GAAP profit of $0.49 per share was 5.9% above analysts’ consensus estimates. Is now the time to buy EBC? Find out in our full research report (it’s free). Revenue: $309.5 million vs analyst estimates of $307.5 million (24.2% year-on-year growth, 0.7% beat) Adjusted EPS: $0.49 vs analyst estimates of $0.46 (5.9% beat) Market Capitalization: $4.95 billion Eastern Bank delivered results in line with market expectations for the second quarter, supported by growth in both commercial lending and wealth management. Management credited broad-based C&I loan growth, healthy deposit inflows, and ongoing cost discipline as primary drivers of the quarter. CEO Denis K. Sheahan emphasized the impact of “enhanced earning power of the franchise” and noted continued positive operating leverage. Positive trends in fee income, driven by wealth management and investment advisory, also contributed to the quarter’s performance. Looking forward, management highlighted a robust commercial loan pipeline and optimism about continued deposit growth as key drivers for the remainder of the year. The company expects a moderation in commercial real estate payoffs and ongoing expansion in wealth management to support revenue. CFO R. David Rosato stated that “healthy commercial loan pipelines, an exceptional deposit base, strong asset quality, improved efficiency, continued wealth management momentum, and substantial capital flexibility” position Eastern Bank well for attractive returns in the coming quarters. Management attributed the quarter’s performance to broad-based commercial lending growth, robust fee income from wealth management, and disciplined expense control, while maintaining a strong capital position. Commercial lending momentum: Growth was driven primarily by C&I (Commercial and Industrial) loan production, which saw diversified contributions across industries. Management pointed to a record commercial pipeline at quarter-end, indicating continued strength in business banking. Deposit growth and mix: Deposits increased, aided by seasonal municipal inflows and broad-based gains across business lines. Management noted a preference for money market accounts over certificates of deposit, reflecting current customer behavior in a competitive deposit environment. Wealth management expansion: Wealth management assets reached a new high, and fee income from investment advisory services grew significantly. Management credited both increased client engagement and stronger equity market performance for the improvement. Expense discipline and synergies: The company benefited from HarborOne merger cost synergies, resulting in lower operating expenses. These savings were primarily reflected in reduced salaries, benefits, and occupancy costs, and management indicated most of the cost synergies have now been realized. Asset quality and risk management: Asset quality remained strong, with stable net charge-offs and improved nonperforming loans. Management cited conservative underwriting and proactive risk management as key factors, noting limited exposure to riskier sectors like Boston life sciences and a prudent approach to commercial real estate. Eastern Bank’s outlook is shaped by continued commercial lending momentum, balanced deposit growth, and disciplined expense management, with a focus on sustaining profitability despite competitive pressures. Commercial pipeline execution: Management expects the record commercial loan pipeline to drive loan growth in the upcoming quarters, with diversification across industries and a moderation in commercial real estate payoffs supporting stability. Deposit and funding dynamics: The company anticipates continued competition for deposits, with a shift toward money market accounts likely to persist. Deposit growth is expected to remain strong, but higher funding costs may offset some asset yield gains, impacting net interest margin. Expense and efficiency focus: Ongoing emphasis on operating efficiency, including technology investments such as AI, is expected to help maintain expense control. Management believes most merger-related cost synergies have now been realized, so future efficiency gains will rely on organic improvements rather than integration benefits. In the coming quarters, the StockStory team will be monitoring (1) the pace of commercial loan pipeline conversion into funded balances, (2) whether deposit growth can continue amid competitive pressures and shifting customer preferences, and (3) sustained momentum in wealth management fee income. Additional focus will be on expense management and any adjustments to asset quality in response to broader economic trends. Eastern Bank currently trades at $22.82, in line with $22.62 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Eastern Bankshares (EBC) drew fresh attention after a busy week of news, including earnings that topped analyst expectations, solid year-on-year sales growth, a newly authorized share repurchase plan, and an increased dividend. See our latest analysis for Eastern Bankshares. Eastern Bankshares' recent earnings beat, higher net income and active capital return through buybacks and dividends appear to be feeding into strong momentum, with a 30 day share price return of 6.95% and a 1 year total shareholder return of 47.81%. If these results have you thinking about what else might be moving, it could be a good moment to scan for opportunities using our 18 top founder-led companies For Eastern Bankshares, a 47.81% 1 year total return along with a fresh buyback and dividend raise can look like a clear vote of confidence, yet guidance has been nudged lower. How does the current price compare with those fundamentals? With Eastern Bankshares last closing at $22.92 versus a narrative fair value of $23.31, the current setup hinges on how investors view its long term earnings power under a 7.1% discount rate. Read the complete narrative. Analysts are not just guessing here. Their narrative leans on specific revenue growth assumptions, margin shifts and a higher future earnings multiple that all have to line up for this fair value to hold. Result: Fair Value of $23.31 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Eastern Bankshares also carries clear risks, including higher reserves and non performing office loans, which could pressure earnings if credit trends weaken further. Find out about the key risks to this Eastern Bankshares narrative. The fair value narrative for Eastern Bankshares points to a small 2% gap, yet the earnings multiple tells a more cautious story. The stock trades on a P/E of 13.5x versus 12.1x for the wider US Banks industry and is roughly in line with a 13.6x peer average. That places Eastern Bankshares on a slightly richer industry valuation that could reflect quality or could simply compress if sentiment cools. Which signal do you think matters more at today’s price, the modest narrative undervaluation or the fuller earnings multiple? See what the numbers say about this price — find out in our valuation breakdown. Given the mix of optimism and caution around Eastern Bankshares, it helps to see the full picture for yourself, including both the risks and the potential upsides captured in our 2 key rewards and 1 important warning sign If Eastern Bankshares has sharpened your focus, do not stop here. Broaden your watchlist with targeted ideas that match how you like to invest. Target resilient opportunities by scanning 81 resilient stocks with low risk scores that may better match your comfort with volatility and downside protection. Spot income ideas by reviewing 9 dividend fortresses that could complement Eastern Bankshares if regular payouts matter to you. Hunt for overlooked potential with the screener containing 20 high quality undiscovered gems before the rest of the market catches on. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EBC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record operating net income growth of 20% linked quarter was driven by the realization of cost synergies following the HarborOne core system conversion. Commercial loan growth was fueled by broad-based C&I production, which helped offset expected headwinds from commercial real estate payoffs and the workout of acquired nonperforming loans. Wealth management assets reached a record $11.5 billion, benefiting from the Cambridge Trust brand strength and increased connectivity between wealth and banking teams. Deposit growth of 3.2% was supported by seasonal municipal inflows and targeted pricing actions to defend market share in a highly competitive New England environment. Management emphasized a 'thrifty' organizational mindset, focusing on positive operating leverage by balancing revenue growth with disciplined expense management. Asset quality remains a core strength, characterized by limited exposure to volatile sectors like life sciences and a proactive annual re-underwriting process for all office loans over $5 million. The full-year loan growth outlook was narrowed to 3-4% to reflect a slower start in Q1, despite a record commercial pipeline approaching $1 billion entering the second half. Net interest income guidance assumes a 'higher for longer' rate environment with one potential Fed tightening action, contrasting with previous assumptions of two rate cuts. Management expects a multi-year asset repricing tailwind as fixed-rate loans and securities portfolios roll over into higher current market rates. Capital management strategy focuses on rightsizing the CET1 ratio toward a 12% target through a new 5% share repurchase program and organic growth. Residential mortgage balances are expected to remain relatively flat through 2026 as the bank prioritizes higher-yielding HELOC and commercial loan growth. Non-operating expenses decreased significantly as the final HarborOne merger-related costs were recognized during the quarter. A $2 million one-time expense for shareholder advisory services impacted professional fees but is not expected to recur in the forward run rate. Fee income was bolstered by an $8.9 million gain on employee retirement benefit investments, though this was partially offset by $3.4 million in related benefit costs. Management flagged commercial real estate payoffs as 'abnormally high' in Q2, with approximately half originating from the acquired HarborOne portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized competition as 'relatively constant' and expects deposit costs to tick up 2 to 3 basis points per quarter in the near term. The bank is prioritizing money market growth over term certificates of deposit (CDs) based on current customer preferences. NIM is expected to be relatively flat to slightly down as rising deposit costs likely offset the positive impact of back-book asset repricing. The bank remains interest-rate neutral, with a 25 basis point shift in the curve impacting margin by only 1 to 2 basis points. Management sees significant 'early innings' upside by cross-selling wealth services to the existing Eastern banking customer base. The transition from insurance to wealth management as the primary fee business is expected to drive long-term recurring revenue. Payoff activity is expected to moderate in the second half of the year after an elevated Q2. The CRE pipeline remains strong, and management expects to see net growth in this segment as payoffs decrease.

Interested in Eastern Bankshares, Inc.? Here are five stocks we like better. Eastern Bankshares posted record Q2 operating net income, with operating net income up 20% from the prior quarter and 30% from a year ago. GAAP net income was $105.2 million, and the bank also returned $106 million to shareholders through dividends and buybacks. Core business trends improved as net interest income rose 3%, the net interest margin expanded to 3.66%, and deposits grew $814 million. Loan balances increased 1.4% quarter over quarter, led by commercial and industrial lending, while wealth management assets hit a record $11.5 billion. Credit quality stayed strong and capital returns remained active, with nonperforming loans falling to $109 million and net charge-offs steady at 17 basis points. The board also authorized a new repurchase plan for up to 11.3 million shares and approved a quarterly dividend of $0.15 per share. Eastern Bankshares (NASDAQ:EBC) reported record operating net income for the second quarter, supported by loan and deposit growth, margin expansion, higher fee revenue and expense reductions tied to the HarborOne integration. Chief Executive Officer Denis Sheahan said operating net income increased 20% from the prior quarter and 30% from a year earlier, producing an operating return on average tangible common equity of 15.3%. The company also returned $106 million to shareholders through dividends and share repurchases during the quarter. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? “Our results are a reflection of the priorities we have consistently communicated to investors, organically growing both banking and fee-based businesses and returning capital to shareholders,” Sheahan said. Eastern reported GAAP net income of $105.2 million, or $0.48 per diluted share. Operating net income, which excluded $1.6 million of remaining HarborOne merger-related costs, was $106.5 million, or $0.49 per diluted share. → GE Vernova Just Sent a Mixed AI Signal to Investors Chief Financial Officer David Rosato said operating revenue growth and expense management generated positive operating leverage. The operating efficiency ratio improved to 49%, while operating return on average assets increased 21 basis points to 1.38%. Net interest income increased 3% from the first quarter as the net interest margin expanded 3 basis points to 3.66%. Higher yields on loans and securities more than offset increased funding costs, Rosato said. Total interest-earning asset yields rose 4 basis points, while interest-bearing liability costs increased 2 basis points. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Discount accretion remained about $20 million during the quarter and contributed 28 basis points to the margin. Rosato later said the company expects accretion income to remain around its recent quarterly run rate of roughly $19.5 million, with a potential slight decline over time. Operating non-interest income rose $12.8 million, or 28%, from the first quarter. The largest contributor was an $8.9 million increase in investment income related to employee retirement benefits, reflecting stronger equity markets. That gain was partly offset by a $3.4 million increase in related employee benefit costs. The company also cited higher investment advisory fees, seasonal tax preparation fees and increased interest-rate swap income. Rosato said swap income benefited from higher commercial loan volume and greater customer use of interest-rate risk-management products. Period-end loan balances increased $325 million, or 1.4%, from the preceding quarter. More than $300 million of commercial and industrial loan growth drove the increase, partially offset by commercial real estate payoffs. Sheahan said the commercial lending pipeline finished June at a record level and was diversified across businesses. Rosato put the commercial pipeline at nearly $1 billion. Management said it expects commercial real estate payoffs, which were elevated in the second quarter, to moderate during the second half of the year. Home equity balances rose $59 million, while residential mortgage balances declined slightly. Rosato said Eastern expects its residential mortgage portfolio to remain relatively flat in 2026 as it emphasizes home equity and commercial lending growth. Deposits increased $814 million, or 3.2%, from the prior quarter, driven by seasonal municipal inflows and broad-based growth across business lines. The loan-to-deposit ratio improved to 91% at quarter-end from 93% at March 31. Management expects a portion of municipal deposits to leave seasonally in the third quarter. Total deposit costs increased 1 basis point to 1.47%, while the June spot deposit rate was 1.51%, reflecting competition in the New England deposit market. Rosato said competition remains relatively constant and does not expect it to ease in the near term. The company expects money market balances to grow faster than certificates of deposit, citing customer preference for money market products. Wealth management assets reached a record $11.5 billion. Sheahan said the business provides recurring fee income, diversifies earnings and deepens customer relationships, particularly through coordination among wealth management, private banking and commercial banking teams. Asset quality remained strong, according to management. Net charge-offs were stable at 17 basis points of average total loans. Nonperforming loans declined $29 million from the first quarter to $109 million, or 47 basis points of total loans. Sheahan said Eastern has limited exposure to life-science lending and continues to monitor its office portfolio closely. He said every office loan above $5 million is re-underwritten annually. Non-interest expense declined $30.7 million, or 15%, from the first quarter. Most of the reduction reflected lower merger-related costs, while operating non-interest expense declined $1.5 million. Rosato said HarborOne cost savings are “basically done,” with savings primarily reflected in salaries and benefits as well as occupancy and equipment costs. Eastern paid $33.1 million in dividends and repurchased 3.6 million shares for $72.7 million during the quarter, at an average price of $20.03 per share. Its CET1 ratio was 13% and its tangible common equity ratio was 10.1% at June 30. The board authorized a new repurchase program for up to 11.3 million shares, equivalent to 5% of common shares outstanding, through Dec. 31, 2027. The board also approved a $0.15 per-share dividend payable in September. Eastern narrowed its full-year loan growth outlook to 3% to 4%, from a previous range of 3% to 5%, reflecting a slower start to the year. It raised its deposit growth outlook to 2% to 3%, from 1% to 2%. The company also lowered its outlook for net interest income and margin, citing softer first-quarter loan growth, lower-than-expected accretion income and deposit competition. Management expects full-year fully taxable equivalent net interest margin of 3.60% to 3.65%. Eastern reduced its expected provision for credit losses to $25 million to $30 million, from $30 million to $40 million, citing favorable credit performance. It narrowed its operating fee income outlook to $195 million to $200 million and tightened its operating non-interest expense range to $655 million to $665 million. Eastern Bankshares, Inc is the bank holding company for Eastern Bank, one of the oldest and largest mutual banks in the United States. Founded in 1818 as Salem Savings Bank and later rebranded as Eastern Bank in 1989, the company preserved its mutual ownership structure for more than two centuries. In March 2020, it completed an initial public offering and began trading on the Nasdaq under the ticker EBC, while continuing to emphasize its community-focused heritage. Through its primary subsidiary, Eastern Bank, the company delivers a broad range of commercial and consumer banking products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Eastern Bankshares Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Eastern Bankshares, Inc. (EBC) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.52%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.4, delivering a surprise of -9.09%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Eastern Bankshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $309.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.70%. This compares to year-ago revenues of $244.9 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Eastern Bankshares shares have added about 22.5% since the beginning of the year versus the S&P 500's gain of 9.6%. While Eastern Bankshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Eastern Bankshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $311.85 million in revenues for the coming quarter and $1.87 on $1.22 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Peapack-Gladstone (PGC), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27. This bank holding company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +93.3%. The consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level. Peapack-Gladstone's revenues are expected to be $85.84 million, up 23.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report Peapack-Gladstone Financial Corporation (PGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Eastern Bankshares, Inc. (EBC) reported revenue of $309.5 million, up 26.4% over the same period last year. EPS came in at $0.49, compared to $0.41 in the year-ago quarter. The reported revenue represents a surprise of +1.7% over the Zacks Consensus Estimate of $304.32 million. With the consensus EPS estimate being $0.46, the EPS surprise was +6.52%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Eastern Bankshares performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency ratio (GAAP): 54.3% versus the six-analyst average estimate of 53%. Net interest margin (FTE): 3.7% versus 3.7% estimated by six analysts on average. Average Balance - Total interest-earning assets: $28.3 billion versus the five-analyst average estimate of $28.39 billion. Total non-performing assets: $109.4 million versus $137.7 million estimated by three analysts on average. Total non-performing loans: $109.4 million versus the two-analyst average estimate of $137.7 million. Net Interest Income: $251.9 million versus the six-analyst average estimate of $255.62 million. Total Noninterest Income: $57.6 million compared to the $48.38 million average estimate based on six analysts. Investment advisory fees: $19.7 million versus the five-analyst average estimate of $19.12 million. Miscellaneous income and fees: $9.8 million compared to the $7.89 million average estimate based on four analysts. Net Interest Income (FTE): $258.2 million versus $258.99 million estimated by four analysts on average. Service charges on deposit accounts: $10 million versus $10.29 million estimated by four analysts on average. Interest rate swap income: $2 million versus $1.09 million estimated by four analysts on average. View all Key Company Metrics for Eastern Bankshares here>>> Shares of Eastern Bankshares have returned +5.3% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company Announces 5% Repurchase Authorization Net income of $105.2 million, or $0.48 per diluted share, included non-operating merger-related costs; record operating net income of $106.5 million, or $0.49 per diluted share. Return on average assets of 1.37% and return on average tangible common equity of 15.2%. Net interest margin on fully tax equivalent basis expanded 3 basis points to 3.66%, due to higher asset yields. Period-end loans grew 1.4% linked quarter, driven by strong C&I lending results. Deposits increased 3.2%, due to seasonal municipal inflows and broad-based growth across business lines. Wealth assets increased to a record high of $11.5 billion, including $10.6 billion of assets under management. Total capital returned to shareholders of $105.8 million, including $72.7 million in share repurchases. BOSTON, July 23, 2026--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the "Company") (NASDAQ: EBC), the holding company of Eastern Bank, today announced its second quarter 2026 financial results. FINANCIAL HIGHLIGHTS "Eastern’s second-quarter performance reflects our focus on organically growing both banking and fee-based businesses and consistently returning capital to shareholders," said Denis Sheahan, Chief Executive Officer. "Strong Commercial & Industrial lending results, partially offset by headwinds from Commercial Real Estate payoffs, drove a linked quarter increase in total loans. We continue to benefit from talent added in recent years and our relationship-driven model. Customers remain resilient, as Commercial loan pipelines finished June at a record quarter-end level of nearly $1 billion. Deposit balances grew meaningfully during the quarter with a modest rise in costs. While the deposit environment is highly competitive, we are committed to balancing growth with margin performance. Momentum in our Wealth business continued as assets increased to another record high and fees had strong growth year-over-year. We are encouraged by the strengthening partnership between our Wealth and Banking businesses, which continues to create more new business opportunities. Our comprehensive, solutions-oriented approach to wealth management is resonating with clients, reinforcing our value proposition. Finally, we are grateful for our customers, colleagues, and community partners whose trust and support position us for further growth in the markets we serve." David Rosato, Chief Financial Officer, added, "Operating net income increased 20% linked quarter, generating an operating return on average tangible common equity of 15.3% and annualized growth in tangible book value per share of 7%. We are pleased with our financial performance, which was highlighted by positive operating leverage, driven by growth in both net interest income and fee revenues combined with lower expenses, resulting in an operating efficiency ratio of 49%. Net interest income benefited from 3 basis points of margin expansion as higher asset yields more than offset increased funding costs. Fee revenue growth was strong and diversified, with notable increases in Wealth Management fees and interest rate swap income. Asset quality remains excellent, credit trends are positive, and as expected, non-performing loans declined for the second consecutive quarter following the HarborOne merger. In addition, we continued to return a significant amount of capital to shareholders during the quarter, while the Board’s approval of a new 5% share repurchase program underscores confidence in the Company’s long-term intrinsic value." NET INTEREST INCOME Net interest income was $251.9 million, an increase of $7.3 million from the first quarter. Net interest income included net discount accretion of $19.7 million, compared to $19.5 million in the prior quarter. Net discount accretion contributed 28 basis points to the net interest margin on an FTE basis, consistent with the prior quarter. The net interest margin on an FTE basis increased 3 basis points to 3.66%, due to higher asset yields, partially offset by increased funding costs. The yield on total interest-earning assets was up 4 basis points to 5.05%, primarily due to higher loan and securities yields. The cost of total interest-bearing liabilities increased 2 basis points to 2.01%, due to modestly higher deposit costs, primarily in money market accounts. NONINTEREST INCOME Noninterest income was $57.6 million, an increase of $14.0 million from the first quarter. The current quarter included a non-operating loss of $0.3 million, compared to a loss of $1.5 million in the prior quarter. On an operating basis, noninterest income of $57.9 million increased $12.8 million. The increase was primarily driven by the following: Income on investments for employee retirement benefits of $7.0 million due to strong equity market performance, compared to a loss of $1.9 million in the prior quarter. This $8.9 million increase in noninterest income was partially offset by a $3.4 million increase in related benefit costs reported in noninterest expense. Investment advisory fees increased $1.4 million to $19.7 million, primarily driven by higher Wealth assets and seasonal tax preparation fees. Interest rate swap income increased $1.0 million to $2.0 million, due to higher loan volume. Miscellaneous income and fees increased $0.7 million to $9.8 million, primarily attributable to an increase in gain on sale of commercial loans. NONINTEREST EXPENSE Noninterest expense was $167.9 million, a decrease of $30.7 million from the first quarter, primarily driven by lower non-operating and operating costs. Non-operating noninterest expense of $1.6 million decreased $29.2 million, mostly due to lower merger-related costs. On an operating basis, noninterest expense of $166.4 million decreased $1.5 million. The current quarter benefited from cost synergies achieved following the HarborOne core system conversion in February. Salaries and employee benefits decreased $5.1 million to $97.0 million. Occupancy and equipment decreased $0.9 to $13.2 million. These improvements in operating noninterest expense were partially offset by the following: Professional services increased $2.3 million, primarily related to shareholder advisory fees. Other operating expense increased $1.6 million, primarily driven by a higher provision for unfunded commitments due to growth in off balance sheet commitments. BALANCE SHEET Total assets were $31,142 million at June 30, 2026, an increase of $509 million from March 31, 2026. Loans totaled $23,713 million, an increase of $325 million, or 1.4%, primarily due to strong Commercial and Industrial lending results, partially offset by Commercial Real Estate payoffs. Securities were $4,812 million, an increase of $239 million. Cash and equivalents were $256 million, a decrease of $75 million. Deposits totaled $25,919 million, an increase of $814 million or 3.2%, primarily due to seasonal municipal inflows and broad-based growth across business lines. Book value per share and tangible book value per share ended the quarter at $18.72 and $13.13, respectively. Please refer to Appendix D for a roll-forward of tangible shareholders’ equity. ASSET QUALITY Non-performing loans (NPLs) improved, as expected, for the second consecutive quarter following the HarborOne merger. NPLs totaled $109.4 million, or 0.47% of total loans for the current quarter, compared to $137.7 million, or 0.60% of total loans, at March 31, 2026. Total net charge-offs were $9.8 million, or 0.17% of average total loans, compared to $9.7 million, or 0.17% of average total loans in the prior quarter. Provision for loan losses totaled $6.8 million compared to $5.8 million in the prior quarter. The allowance for loan losses was $325.4 million, or 1.40% of total loans, compared to $327.9 million, or 1.43% of total loans, at March 31, 2026. DIVIDENDS AND SHARE REPURCHASES The Company repurchased 3.6 million shares of common stock during the second quarter at a weighted average price of $20.03, for an aggregate purchase price of $72.7 million. As of quarter-end, 1.3 million shares remained in the current share repurchase program. The Company also paid $33.1 million in cash dividends during the second quarter. The Company’s Board of Directors authorized a new share repurchase program of up to 11.35 million shares, or 5% of common stock outstanding. The repurchase program expires on December 31, 2027. In addition, the Board of Directors declared a quarterly cash dividend of $0.15 per common share, which will be payable on September 22, 2026 to shareholders of record as of the close of business on September 8, 2026. CONFERENCE CALL AND PRESENTATION INFORMATION A conference call and webcast covering Eastern’s second quarter 2026 earnings will be held on Friday, July 24, 2026 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (833) 461-5787 from within North America and reference conference ID 875195656. The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website at investor.easternbank.com. A presentation providing additional information for the quarter is also available at investor.easternbank.com. A replay of the webcast will be available on this site. ABOUT EASTERN BANKSHARES, INC. Eastern Bankshares, Inc. is the holding company for Eastern Bank. Founded in 1818, Eastern Bank is Greater Boston’s leading local bank with more than 125 branch locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of June 30, 2026, Eastern had approximately $31.1 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management and Private Banking Divisions, which include the largest bank-owned independent investment adviser in Massachusetts with $10.6 billion in assets under management. Eastern takes pride in its advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. For investor information, visit investor.easternbank.com. NON-GAAP FINANCIAL MEASURES *Denotes a non-GAAP financial measure used in the press release. A non-GAAP financial measure is defined as a numerical measure of the Company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements). The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures. There are items in the Company’s financial statements that impact its financial results, but which management believes are unrelated to the Company’s core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders’ equity, operating return on average tangible shareholders’ equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company’s core business and underlying trends. Such items that management does not consider to be core to the Company’s business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) other real estate owned ("OREO") gains (losses), (v) merger and acquisition expenses, (vi) certain discrete tax items, and (vii) expenses associated with staffing reorganization. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. Management also presents tangible assets, tangible shareholders’ equity, average tangible shareholders’ equity, tangible book value per share, the ratio of tangible shareholders’ equity to tangible assets, return on average tangible shareholders’ equity, and operating return on average shareholders’ equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company includes the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends. These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-D for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release. FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target", "outlook" and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements. Certain factors that could cause actual results to differ materially from expected results include; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks associated with the Company’s implementation of the merger with HarborOne Bancorp, including that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that Eastern’s business may not perform as expected in the years following the merger; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; and disruptions arising from transitions in management personnel; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiaries, including Eastern Bank, are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics and the failure of the Company to execute its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements. EASTERN BANKSHARES, INC.SELECTED FINANCIAL HIGHLIGHTS Certain information in this press release is presented as reviewed by the Company’s management and includes information derived from the Company’s Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." APPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." APPENDIX C: Reconciliation of Non-GAAP Capital Metrics For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." APPENDIX D: Tangible Shareholders’ Equity Roll Forward Analysis For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." View source version on businesswire.com: https://www.businesswire.com/news/home/20260723377045/en/ Contacts Investor Contact Andrew Hersom Eastern Bankshares, [email protected] 617-897-1177 Media Contact Andrea Goodman Eastern [email protected] 781-598-7847