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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.

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“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.

Second-Quarter Results and Margin Trends 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.

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.

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.

Loan, Deposit and Wealth Management Growth 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.

Credit Quality, Costs and Capital Return 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.

Updated 2026 Outlook 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.

About Eastern Bankshares (NASDAQ:EBC)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].

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Eastern Bankshares, Inc. (EBC - Free Report) 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%.

What's Next for Eastern Bankshares?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 - Free Report) , 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.

In its upcoming report, Eastern Bankshares, Inc. (EBC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.46 per share, reflecting an increase of 12.2% compared to the same period last year. Revenues are forecasted to be $304.32 million, representing a year-over-year increase of 24.3%.

Over the last 30 days, there has been a downward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Eastern Bankshares metrics that are commonly tracked and projected by analysts on Wall Street.

According to the collective judgment of analysts, 'Efficiency ratio (GAAP)' should come in at 53.0%. Compared to the present estimate, the company reported 55.9% in the same quarter last year.

Analysts predict that the 'Net interest margin (FTE)' will reach 3.7%. Compared to the present estimate, the company reported 3.6% in the same quarter last year.

Analysts' assessment points toward 'Average Balance - Total interest-earning assets' reaching $28.39 billion. The estimate is in contrast to the year-ago figure of $23.14 billion.

The average prediction of analysts places 'Total non-performing assets' at $137.70 million. Compared to the present estimate, the company reported $54.70 million in the same quarter last year.

Analysts expect 'Total regulatory capital (to risk-weighted assets)' to come in at 14.3%. Compared to the current estimate, the company reported 15.5% in the same quarter of the previous year.

The consensus estimate for 'Tier 1 capital (to average assets) leverage' stands at 11.5%. The estimate is in contrast to the year-ago figure of 12.1%.

Analysts forecast 'Tier 1 capital (to risk-weighted assets)' to reach 12.8%. Compared to the current estimate, the company reported 14.4% in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Total non-performing loans' should arrive at $137.70 million. The estimate compares to the year-ago value of $54.70 million.

It is projected by analysts that the 'Net Interest Income' will reach $255.62 million. Compared to the present estimate, the company reported $202.00 million in the same quarter last year.

The collective assessment of analysts points to an estimated 'Total Noninterest Income' of $48.38 million. Compared to the current estimate, the company reported $42.90 million in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Investment advisory fees' will likely reach $19.12 million. The estimate compares to the year-ago value of $17.30 million.

The consensus among analysts is that 'Net Interest Income (FTE)' will reach $258.99 million. The estimate compares to the year-ago value of $206.80 million.

View all Key Company Metrics for Eastern Bankshares here>>>

Shares of Eastern Bankshares have experienced a change of +9.3% in the past month compared to the +0.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), EBC is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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BOSTON--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the “Company”) (NASDAQ: EBC), the holding company for Eastern Bank, today announced the following details regarding the report of the Company’s second quarter 2026 results:

Earnings Release:

Thursday, July 23, 2026 after the market close

Conference Call:

Friday, July 24, 2026 at 9:00 AM Eastern Time

Join by Telephone:

Toll-Free Dial-In Number: (833) 461-5787

Conference ID: 875195656

Webcast:

The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website at investor.easternbank.com. A replay of the webcast will be made available on demand 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 March 31, 2026, Eastern had approximately $30.6 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 $9.8 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.

More News From Eastern Bank

Back to Newsroom

BOSTON--(BUSINESS WIRE)--Eastern Bank is pleased to announce financing for 775 Huntington Avenue, a new mixed-income residential development located in the Mission Hill neighborhood of Boston. Sponsored by Roxbury Tenants of Harvard (RTH), the project will create 55 mixed-income homeownership units, comprised of 27 affordable homes and 28 market‑rate homes, and 57 affordable rental units within a new 13‑story building that also includes commercial space and structured parking. Eastern is servin.

BOSTON--(BUSINESS WIRE)--Eastern Bankshares, Inc. Announces First Quarter 2026 Earnings Release Date, Conference Call and Webcast.

Eastern Bankshares, Inc. (EBC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 23. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +29.4%.

Revenues are expected to be $299.63 million, up 34.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.42% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Eastern Bankshares?For Eastern Bankshares, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.11%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Eastern Bankshares will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Eastern Bankshares would post earnings of $0.41 per share when it actually produced earnings of $0.44, delivering a surprise of +7.32%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Eastern Bankshares doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

BOSTON--(BUSINESS WIRE)--Eastern Bankshares, Inc. Reports First Quarter 2026 Financial Results.

For the quarter ended March 2026, Eastern Bankshares, Inc. (EBC - Free Report) reported revenue of $288.3 million, up 29.6% over the same period last year. EPS came in at $0.40, compared to $0.34 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $299.63 million, representing a surprise of -3.78%. The company delivered an EPS surprise of -8.68%, with the consensus EPS estimate being $0.44.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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): 68.9% versus 55.8% estimated by five analysts on average.Net interest margin (FTE): 3.6% versus 3.6% estimated by five analysts on average.Average Balance - Total interest-earning assets: $28.01 billion compared to the $28.38 billion average estimate based on four analysts.Total non-performing assets: $137.7 million versus $180.92 million estimated by two analysts on average.Total Noninterest Income: $43.6 million versus the five-analyst average estimate of $47.92 million.Net Interest Income: $244.7 million compared to the $252.11 million average estimate based on five analysts.Interest rate swap income: $1 million versus the three-analyst average estimate of $1.41 million.Card Income: $5.8 million compared to the $5.77 million average estimate based on three analysts.Investment advisory fees: $18.3 million versus the three-analyst average estimate of $18 million.Service charges on deposit accounts: $9.9 million versus $10.65 million estimated by three analysts on average.Other non-operating (loss) income: $-1.5 million versus $6.99 million estimated by two analysts on average.Net Interest Income (FTE): $250.8 million versus the two-analyst average estimate of $255.16 million.View all Key Company Metrics for Eastern Bankshares here>>>

Shares of Eastern Bankshares have returned +4.5% over the past month versus the Zacks S&P 500 composite's +9.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

BOSTON--(BUSINESS WIRE)--Eastern Bank today announced a key leadership update within its Commercial Lending Team. Senior Vice President Yongmei Chen has been promoted to Commercial Group Director of Community Development Lending. She succeeds Pamela Feingold, who served in the role until her passing on March 16, 2026. Ms. Chen is a long-tenured Eastern commercial lending leader with over 30 years of banking experience, and has held numerous leadership positions since joining Eastern in 2007. Sh.

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BOSTON--(BUSINESS WIRE)--Eastern Bank today announced it has provided financing to support the conversion of Surety Bond Professionals (SBP), a Massachusetts-based, independent surety-only agency, to a 100% employee-owned company. The financing includes a term loan to facilitate the establishment of an Employee Stock Ownership Plan (ESOP), a revolving line of credit to support the company's ongoing working capital needs, cash management solutions, as well as the availability of a comprehensive.

BOSTON--(BUSINESS WIRE)--Eastern Bankshares, Inc. (NASDAQ: EBC), the holding company of Eastern Bank, today announced that it will be added to the S&P SmallCap 600® Index, effective prior to the opening of trading on June 22, 2026. The S&P SmallCap 600 Index is widely regarded as one of the premiere benchmarks for small-cap U.S. equities. “Our addition to the S&P SmallCap 600 Index reflects the strength of our business and continued focus on delivering long-term value for customers.