Summary of Eastern Bankshares, Inc. Q4 2025 Earnings Call

1Key Financial Results and Metrics

Net Income: $99.5 million, or $0.46 per diluted share.

Operating Earnings: $94.7 million, up 28% linked quarter; $0.44 per diluted share, a 19% increase.

Operating Return on Assets (ROA): 130 basis points, up 24 basis points year-over-year.

Return on Average Tangible Common Equity: 13.8%, improved from 11.3% a year ago.

Net Interest Income: $237.4 million, a $37.2 million increase from Q3, with a margin of 3.61%, up 14 basis points.

Wealth Assets: Reached a record high of $10.1 billion, including $9.6 billion in assets under management.

Deposits: Increased by $4.4 billion (21%) linked quarter, primarily due to the HarborOne merger.

Loans: Increased by $4.7 billion (25%) linked quarter, with organic growth of $1 billion (5.6%) for the year.

2Strategic Updates and Business Highlights

Successful integration of HarborOne, enhancing market presence and operational scale.

Focus on organic growth rather than acquisitions, with a commitment to returning capital to shareholders through share repurchases and dividends.

Strong performance in commercial lending and wealth management, with significant hiring of talent to drive growth.

Continued emphasis on building long-term relationships with clients through a community-focused banking model.

3Forward Guidance and Outlook

Loan Growth for 2026: Expected to be between 3% to 5%.

Deposit Growth: Anticipated at 1% to 2%.

Net Interest Income: Projected between $1.20 billion to $1.50 billion, with a full-year margin of 3.65% to 3.75%.

Provision Expense: Expected to be $30 million to $40 million, based on credit trends.

Operating Noninterest Income: Forecasted between $190 million and $200 million.

4Bad News, Challenges, or Points of Concern

Nonperforming Loans (NPLs): Increased by $103 million linked quarter, primarily from HarborOne acquisitions, with a reserve coverage of 35%.

Criticized and Classified Loans: Increased to $793 million (5% of total loans), driven by HarborOne loans.

Market Sensitivity: Potential for fluctuations in fee income from wealth management due to market conditions.

Expense Increase: Noninterest expenses rose significantly due to merger-related costs and operational adjustments.

5Notable Q&A Insights

Management confirmed that they are not pursuing further acquisitions, focusing instead on organic growth and capital returns.

There was discussion on maintaining a stable margin initially, with expectations for gradual improvement as deposit costs are managed.

The pipeline for loans remains strong, with a balanced mix between commercial real estate and commercial & industrial lending.

Concerns about the credit landscape were addressed, with management indicating no significant deterioration in credit metrics and a conservative approach to provisioning. This summary encapsulates the key points from Eastern Bankshares' Q4 2025 earnings call, highlighting both the positive developments and the challenges faced by the company.