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Eastern Bankshares (EBC)
NASDAQ:EBC
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Eastern Bankshares
(NASDAQ:EBC)
60Neutral
Eastern Bankshares (EBC) vs. S&P 500 (SPY)
Market Cap
$3.15B
Dividend Yield2.91%
Average Volume (3M)1.40M
Price to Earnings (P/E)24.1
Beta (1Y)1.11
Revenue Growth-7.21%
EPS Growth-122.95%
CountryUS
Employees1,998
SectorFinancial
Sector Strength83
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.65
Shares Outstanding213,500,240
10 Day Avg. Volume1,109,942
30 Day Avg. Volume1,404,882
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.27
Price to Cash Flow (P/CF)10.00
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside42.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Eastern Bankshares Business Overview & Revenue Model
Company DescriptionEastern Bankshares, Inc. (EBC) is a bank holding company that operates through its wholly owned subsidiary, Eastern Bank. Headquartered in Boston, Massachusetts, Eastern Bank is one of the largest and oldest mutual banks in the United States, providing a range of financial products and services. The bank serves individuals, businesses, and nonprofit organizations with offerings that include personal and business banking, insurance, wealth management, and investment services.
How the Company Makes MoneyEastern Bankshares generates revenue primarily through interest income earned on loans and securities, as well as non-interest income from fees and services. The bank offers a variety of loan products, such as commercial real estate loans, residential mortgages, and consumer loans, which provide stable interest income. Additionally, Eastern Bank earns non-interest income from service charges, insurance services, wealth management fees, and investment advisory services. Strategic partnerships with financial service providers further enhance its revenue potential by offering expanded products and services to its customer base. The combination of diversified financial services and regional market presence helps drive the company's earnings.
Eastern Bankshares Financial Statement Overview
Summary
Eastern Bankshares displays a mixed financial performance. The income statement reveals significant challenges, with zero revenue reported in 2024, affecting profitability and indicating potential sustainability issues. However, the balance sheet is robust with strong equity and no debt reliance, and the cash flow statement shows positive operating cash flow despite a concerning decline in free cash flow.Income Statement
Eastern Bankshares has experienced fluctuations in revenue with a significant decline to zero in 2024. The Net Profit Margin and Revenue Growth Rate are not meaningful due to the zero revenue in the latest period. EBIT and EBITDA margins have been inconsistent, reflecting volatility in profitability. The company showed strong net income in 2023, but the lack of revenue in 2024 raises concerns about sustainability.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with an increasing Stockholders' Equity and a Debt-to-Equity Ratio of zero in 2024, indicating no reliance on debt. The Equity Ratio is healthy, indicating financial stability. However, the substantial drop in Total Revenue could affect asset utilization and future equity returns.75
Positive
Cash Flow
The company demonstrates strong operating cash flow relative to net income in 2023, but a significant drop in 2024. Free Cash Flow has seen a major decrease, indicating potential challenges in generating cash from operations. The cash flow from operations is positive, but the decline in free cash flow is concerning.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 731.51M | 308.19M | 737.83M | 616.47M | 572.90M | Gross Profit |
| 731.51M | 308.19M | 737.83M | 616.47M | 572.90M | EBIT |
| 119.56M | -71.27M | 317.92M | 188.71M | 35.90M | EBITDA |
| 0.00 | 0.00 | 261.65M | 211.59M | 63.81M | Net Income Common Stockholders |
| 119.56M | 232.18M | 199.76M | 154.66M | 22.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.01B | 693.08M | 6.86B | 9.74B | 5.24B | Total Assets |
| 25.56B | 21.13B | 22.65B | 23.51B | 15.96B | Total Debt |
| 93.90M | 48.22M | 740.83M | 34.28M | 28.05M | Net Debt |
| -92.59M | -644.86M | 571.32M | -1.20B | -2.03B | Total Liabilities |
| 21.95B | 18.16B | 20.18B | 34.28M | 28.05M | Stockholders Equity |
| 3.61B | 2.97B | 2.47B | 3.41B | 3.43B |
| Cash Flow | Free Cash Flow | |||
| 20.79M | 253.55M | 221.31M | 168.76M | 64.71M | Operating Cash Flow |
| 20.79M | 261.69M | 229.94M | 174.49M | 69.85M | Investing Cash Flow |
| 158.71M | 2.40B | -1.08B | -1.99B | -2.39B | Financing Cash Flow |
| -111.17M | -2.14B | -215.57M | 988.98M | 4.01B |
Eastern Bankshares Technical Analysis
Negative
14.77
Price Trends
16.24
Negative
16.97
Negative
16.64
Negative
Market Momentum
-0.34
Negative
42.74
Neutral
72.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBC, the sentiment is Negative. The current price of 14.77 is below the 20-day moving average (MA) of 15.10, below the 50-day MA of 16.24, and below the 200-day MA of 16.64, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 72.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBC.
Eastern Bankshares Risk Analysis
Eastern Bankshares disclosed 67 risk factors in its most recent earnings report. Eastern Bankshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eastern Bankshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.26B | 12.94 | 7.64% | 3.48% | 6.75% | 37.84% | |
72 Outperform | $3.58B | 8.43 | 18.81% | ― | 26.87% | 10.56% | |
65 Neutral | $3.70B | 25.86 | 3.24% | 4.09% | 0.29% | -11.72% | |
64 Neutral | $2.93B | 49.86 | 2.98% | ― | 7.15% | -47.40% | |
63 Neutral | $12.32B | 9.52 | 7.97% | 79.23% | 12.77% | -4.57% | |
61 Neutral | $3.63B | 45.18 | 4.23% | 8.74% | 14.25% | 10.46% | |
60 Neutral | $3.15B | 24.06 | -4.18% | 2.91% | -7.21% | -122.95% |
* Financial Sector Average
Performance Comparison
EBC
Eastern Bankshares
14.77
2.30
18.44%
ASB
Associated Banc-Corp
22.33
1.54
7.41%
AX
Axos Financial
62.73
11.14
21.59%
TCBI
Texas Capital Bancshares
67.89
9.82
16.91%
TFSL
TFS Financial
12.94
1.78
15.95%
UCB
United Community Banks
27.26
2.46
9.92%
Eastern Bankshares Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: -6.46% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call provided a mix of positive and negative developments. The company announced a significant merger, which is expected to enhance shareholder value and expand market presence. However, they also reported a GAAP net loss and challenges due to economic uncertainty. Despite these setbacks, improvements in net interest margin and operating efficiency indicate a positive trend in financial performance.Highlights
Successful Merger Announcement
Eastern Bankshares announced a definitive merger agreement with HarborOne Bancorp, expanding its presence in Greater Boston and Rhode Island, creating a $30+ billion bank.
Shareholder Value Enhancement
Repurchased $48.7 million worth of shares and announced an 8% increase in the quarterly dividend.
Net Interest Margin Expansion
Net interest margin expanded by 33 basis points linked quarter, contributing to improved profitability metrics.
Improved Operating Efficiency
Operating efficiency ratio improved to 53.7% due to higher revenues and lower expenses.
Wealth Management Growth
Assets under management increased to $8.4 billion driven by net client flows.
Lowlights
GAAP Net Loss
Reported a GAAP net loss of $1.08 per diluted share due to a strategic repositioning of $1.3 billion of securities.
Noninterest Income Decline
Noninterest income reported a loss of $236.9 million on a GAAP basis, primarily due to non-operating losses on the sale of AFS securities.
Economic Uncertainty Impacting Lending
Economic uncertainty and trade policy changes are affecting customer sentiment and loan demand.
Company Guidance
During Eastern Bankshares, Inc.'s first-quarter 2025 earnings call, the company reported strong financial performance with operating earnings of $67.5 million and a 33 basis point expansion in the net interest margin. The operating efficiency ratio improved to 53.7%, and the operating return on average tangible common equity increased to 11.7%. The company announced a merger with HarborOne Bancorp, resulting in a combined $30+ billion bank. Key financial highlights included a GAAP net loss of $1.08 per diluted share due to a strategic repositioning of $1.3 billion in securities, expected to be $0.13 accretive to 2025 operating EPS. The merger is projected to provide 16% EPS accretion with a tangible book value earn-back period of 2.8 years, targeting enhanced profitability with a projected 2026 operating ROA of 140 basis points and a return on tangible common equity of 15.5%. The merger is expected to generate $55 million in cost savings and result in a pro forma balance sheet with robust capital and liquidity.Eastern Bankshares Corporate Events
Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Eastern Bankshares Announces Merger with HarborOne Bancorp
Positive
Apr 24, 2025
Eastern Bankshares, Inc. announced its entry into a Merger Agreement with HarborOne Bancorp, Inc. on April 24, 2025. The merger will see Joseph F. Casey, HarborOne’s President and CEO, joining the Boards of Directors of Eastern Bankshares and Eastern Bank. This strategic move is expected to enhance Eastern’s market position and expand its operational capabilities, with further details to be discussed in a conference call on April 25, 2025.
Spark’s Take on EBC Stock
According to Spark, TipRanks’ AI Analyst, EBC is a Neutral.
Eastern Bankshares scores a 63, reflecting its robust balance sheet and strategic growth initiatives, but hampered by significant revenue and cash flow challenges. The positive earnings call and moderate valuation provide some support, but technical indicators show bearish momentum.
To see Spark’s full report on EBC stock, click here.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Eastern Bankshares Reports Q1 2025 Financial Results
Neutral
Apr 24, 2025
Eastern Bankshares, Inc. reported its first quarter 2025 financial results, highlighting a net loss of $217.7 million due to a non-operating loss related to investment portfolio repositioning. Despite this, the company achieved an operating net income of $67.5 million and an 8% increase in its quarterly dividend. The bank also improved its net interest margin and reduced non-performing loans, showcasing a strong balance sheet with robust capital and reserve levels. The company repurchased approximately 2.9 million shares and remains focused on growth, driven by higher revenues, lower expenses, and an increase in loan portfolio.
Spark’s Take on EBC Stock
According to Spark, TipRanks’ AI Analyst, EBC is a Neutral.
Eastern Bankshares scores a 63, reflecting its robust balance sheet and strategic growth initiatives, but hampered by significant revenue and cash flow challenges. The positive earnings call and moderate valuation provide some support, but technical indicators show bearish momentum.
To see Spark’s full report on EBC stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.