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1. Company Snapshot

1.a. Company Description

Eastern Bankshares, Inc.operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers.It operates in two segments, Banking Business and Insurance Agency Business.


The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and time certificates of deposits, as well as debit and credit cards.It also offers commercial and industrial loans, commercial real estate and construction loans, small business loans, residential real estate loans, home equity, and lines of credit, as well as other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans.In addition, the company provides cash reserves, cash management, merchant, escrow express, government banking, international banking, interest on lawyers trust accounts, retirement planning, and business telephone banking services, as well as products and services for not-for-profit and healthcare.


Further, it offers trust and investment products and services; community development and asset-based lending services; financial planning, portfolio management, wealth management, private banking, and fiduciary products; online, mobile, and telephone banking services; and automated lock box collection and account reconciliation services, as well as various insurance products.As of December 31, 2021, the company operated 105 branch offices in eastern Massachusetts and southern New Hampshire; and 23 non-branch offices in eastern Massachusetts, one office in New Hampshire, and one office in Rhode Island.Eastern Bankshares, Inc.


was founded in 1818 and is headquartered in Boston, Massachusetts.

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1.b. Last Insights on EBC

Eastern Bankshares, Inc.'s recent performance has been positively driven by several factors. The company's completion of its acquisition of HarborOne Bancorp, Inc. in November 2025, has expanded its presence and capabilities. Additionally, Eastern Bank boosted its position in Eastern Bankshares by 6.2% during Q3, demonstrating confidence in the company's prospects. The bank also announced new commercial banking customers, such as Owen Security Solutions, and welcomed Jarrad Herzog as Senior Vice President, Asset-Based Lending Relationship Manager, enhancing its lending capabilities. Furthermore, the company is set to release its Q4 2025 earnings, which may provide further insight into its performance.

1.c. Company Highlights

2. Eastern Bancshares Q1 2026: Strong Returns, Solid Asset Quality

Eastern Bancshares posted a robust first‑quarter performance, with operating income climbing 31% to $X million and operating earnings per share rising 18% YoY to $0.40, slightly below analyst consensus of $0.44. Net interest income grew 3% from Q4, supported by a 2‑basis‑point NIM expansion to 3.63%. The bank’s operating return on average tangible common equity reached 12.8%, underscoring efficient capital deployment. Valuation metrics reflect this strength: a price‑to‑book ratio of 1.03 and a dividend yield of 2.61% keep the stock attractive to income‑seeking investors.

Publication Date: Apr -26

📋 Highlights
  • Operating Performance Growth:: Operating income rose 31% YoY with operating EPS up 18%, driven by 12.8% ROATCE.
  • Wealth Management Expansion:: Positive net flows of $400M lifted assets to $10.3B, including $9.8B in AUM.
  • Margin Improvement:: Net interest income increased 3% from Q4, with NIM expanding to 3.63% (+2 bps).
  • Shareholder Returns:: Repurchased 3.9M shares (~$75M) and raised dividend by 15% for sixth consecutive year.
  • Commercial Lending Momentum:: Record $800M pipeline and $35M reduction in nonperforming loans highlighted growth confidence.

Wealth Management Momentum

The wealth management arm delivered nearly $400 million in net inflows, pushing assets under management to a record $10.3 billion, of which $9.8 billion are directly managed. This growth supports fee income and positions the bank for sustained premium asset accumulation amid a competitive market.

Capital & Liquidity Strength

Capital ratios remain solid, with CET 1 and TCE at 13.2% and 10.2% respectively. Net charge‑offs held at 17 bps and a $35 million improvement in nonperforming loans illustrate disciplined underwriting. The bank’s conservative 6% reserve level and a 2‑3 bps incremental deposit cost forecast preserve margin resilience.

Merger Integration & Cost Savings

Completion of the Harbor One core‑system conversion has enabled the bank to capture targeted cost savings, while the commercial pipeline tops $800 million. The merger’s asset base adds depth to the loan portfolio and enhances cross‑sell opportunities.

Loan Portfolio & Credit Quality

The investor office portfolio, now $1 billion (4% of total loans), shows a clean re‑underwriting cycle with no surprises. Commercial real‑estate payoffs in legacy portfolios signal a healthy market, and the bank maintains a record pipeline across C&I, CRE, and community development segments.

Deposit Strategy & Market Conditions

Deposit betas sit at 46%, with the bank managing a spot rate of 142 bps. The cost of deposits has eased from 155 bps in Q3 to 142 bps at quarter‑end, reflecting disciplined pricing. Management targets 1–2% deposit growth, balancing competitive rates with retention of the Harbor One customer base.

Outlook & Guidance

Eastern maintains its full‑year guidance with NII projected between $1.05 billion and $1.20 billion, likely trending toward the lower end due to deposit pricing pressure. The bank plans to generate excess capital, aiming to bring CET 1 to the KRX median of 12%. With a record loan pipeline and a conservative reserve stance, the firm remains poised for steady growth while navigating a cautious economic backdrop.

3. NewsRoom

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Eastern Bankshares, Inc. (EBC) Q1 2026 Earnings Call Transcript

Apr -24

Source: seekingalpha.com

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Eastern Bankshares (EBC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Apr -24

Source: zacks.com

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Eastern Bankshares, Inc. (EBC) Q1 Earnings and Revenues Lag Estimates

Apr -23

Source: zacks.com

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Eastern Bankshares, Inc. Reports First Quarter 2026 Financial Results

Apr -23

Source: businesswire.com

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Gear Up for Eastern Bankshares (EBC) Q1 Earnings: Wall Street Estimates for Key Metrics

Apr -22

Source: zacks.com

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Eastern Bankshares, Inc. Announces First Quarter 2026 Earnings Release Date, Conference Call and Webcast

Apr -02

Source: businesswire.com

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Jennifer Wambold Promoted To Executive Vice President, Chief People Officer And Appointed To Management Committee At Eastern Bank

Mar -25

Source: businesswire.com

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Eastern Bank Provides Financing For 775 Huntington Avenue, A Mixed‑Income Residential Development In Boston's Mission Hill Neighborhood

Mar -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Banking

Expected Growth: 7.4%

Eastern Bankshares, Inc.'s 7.4% growth is driven by strategic acquisitions, expanding commercial lending, and a strong deposit base. The bank's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment also contribute to its growth. Additionally, the bank's diverse revenue streams, including fee income and mortgage banking, support its overall growth momentum.

7. Detailed Products

Consumer Banking

Eastern Bankshares, Inc. offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

The company provides commercial banking services, including cash management, commercial lending, and trade finance, to businesses of all sizes.

Wealth Management

Eastern Bankshares, Inc. offers wealth management services, including investment management, trust services, and financial planning, to individuals, families, and institutions.

Insurance

The company offers a range of insurance products, including life insurance, disability insurance, and long-term care insurance, to individuals and businesses.

8. Eastern Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Eastern Bankshares, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Eastern Bankshares, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers help to reduce the threat of customer bargaining power.

Bargaining Power Of Suppliers

Eastern Bankshares, Inc. relies on a few large suppliers for its operations, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate favorable terms help to mitigate this threat.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants to Eastern Bankshares, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Eastern Bankshares, Inc. faces intense competition from other banks and financial institutions, which can make it difficult to attract and retain customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.60%
Debt Cost 8.32%
Equity Weight 98.40%
Equity Cost 8.32%
WACC 8.32%
Leverage 1.62%

11. Quality Control: Eastern Bankshares, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 7.2

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Momentum: 5.0

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Yield: 8.0

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Yield: 5.0

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Eastern Bank

A-Score: 5.4/10

Value: 3.8

Growth: 5.8

Quality: 6.1

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.23$

Current Price

20.23$

Potential

-0.00%

Expected Cash-Flows