Eastern Bankshares (EBC) AI Stock Analysis

• Market Cap: $4.47B
• Dividend Yield: 2.72%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 75.8
• Beta (1Y): 0.86
• Revenue Growth: -1.18%
• EPS Growth: -89.13%
• Country: US
• Employees: 1,998
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.37
• Shares Outstanding: 238,450,580
• 10 Day Avg. Volume: 2,542,304
• 30 Day Avg. Volume: 2,190,173
• PEG Ratio: -0.49
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 11.56
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.70
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 26.41
• 1Y Price Target: $21.75
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $21.50 ▲(14.67% Upside)

Eastern Bankshares' overall score reflects a strong financial position with robust cash flow and low leverage, supported by positive technical indicators. The recent earnings call provided optimistic guidance and strategic initiatives, including a merger and share buyback program. However, the high P/E ratio suggests overvaluation, and declining profit margins pose a risk to future profitability.

Positive Factors

Successful Merger

The merger with HarborOne enhances Eastern's market presence and strategic positioning, expanding its footprint into Rhode Island and strengthening its competitive edge.

Strong Cash Flow

Strong cash flow management ensures financial stability and flexibility, supporting future investments and shareholder returns.

Wealth Management Growth

Growth in wealth management assets boosts noninterest income, diversifying revenue streams and enhancing financial resilience.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising costs or reduced pricing power, which could pressure future profitability if not addressed.

Increased Nonperforming Loans

Rising nonperforming loans can strain financial resources and indicate potential credit quality issues, impacting long-term financial health.

Competitive Deposit Market

Increased competition for deposits could raise funding costs, squeezing net interest margins and affecting profitability.

Eastern Bankshares Business Overview & Revenue Model

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.

How the Company Makes Money

Eastern Bankshares generates revenue through several key streams, primarily focusing on net interest income and non-interest income. Net interest income is derived from the interest earned on loans and securities minus interest paid on deposits and other borrowings. The bank provides various loan products, including mortgages, personal loans, and commercial loans, which are essential for generating interest income. Non-interest income is obtained from services such as fees for banking services, wealth management, and insurance products. The company also benefits from strategic partnerships with local businesses and community organizations, which enhance its market presence and customer base, ultimately contributing to its overall earnings.

Eastern Bankshares Financial Statement Overview

Summary

Eastern Bankshares maintains a stable financial position with strong cash flow generation and low leverage. However, declining profit margins and return on equity suggest potential challenges in maintaining profitability. The company should focus on improving operational efficiency and cost management to enhance margins and returns.

Income Statement

Eastern Bankshares shows moderate revenue growth with a TTM revenue growth rate of 2.42%. However, the gross profit margin has decreased significantly from 62% in 2024 to 39.97% in TTM, indicating increased costs or reduced pricing power. The net profit margin also declined to 5.03% from 11.17% in 2024. Despite these challenges, the company maintains positive EBIT and EBITDA margins, though they have decreased compared to previous years.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.0105 in TTM, reflecting prudent financial management. The return on equity has decreased to 1.35% in TTM from 3.31% in 2024, indicating reduced profitability on equity. The equity ratio remains robust, suggesting a stable capital structure.

Cash Flow

Eastern Bankshares demonstrates strong cash flow management with a significant free cash flow growth rate of 11.79% in TTM. The free cash flow to net income ratio is high at 0.96, indicating efficient conversion of income to cash. However, the operating cash flow to net income ratio is not available for TTM, which limits a comprehensive assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	982.01M	1.07B	558.71M	681.93M	523.48M	582.52M
Gross Profit	625.44M	664.13M	292.60M	626.88M	527.84M	531.64M
EBITDA	137.57M	194.14M	-102.36M	261.65M	198.88M	63.81M
Net Income	49.48M	119.56M	232.18M	199.76M	154.66M	22.74M
Balance Sheet
Total Assets	25.46B	25.56B	21.13B	22.65B	23.51B	15.96B
Cash, Cash Equivalents and Short-Term Investments	417.30M	5.03B	5.10B	6.86B	9.74B	5.24B
Total Debt	25.88M	45.31M	39.72M	726.40M	34.28M	28.05M
Total Liabilities	21.65B	21.95B	18.16B	20.18B	20.11B	12.54B
Stockholders Equity	3.81B	3.61B	2.97B	2.47B	3.41B	3.43B
Cash Flow
Free Cash Flow	396.61M	270.30M	253.55M	221.31M	168.76M	64.71M
Operating Cash Flow	417.06M	283.84M	261.69M	229.94M	174.49M	69.85M
Investing Cash Flow	-598.14M	1.06B	2.40B	-1.08B	-1.99B	-2.39B
Financing Cash Flow	-297.98M	-1.03B	-2.14B	-215.57M	988.98M	4.01B

Eastern Bankshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBC, the sentiment is Neutral. The current price of 18.75 is below the 20-day moving average (MA) of 19.05, above the 50-day MA of 18.16, and above the 200-day MA of 16.32, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 26.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EBC.

Eastern Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	80 Outperform	$3.82B	18.46	5.51%	3.05%	11.05%	-10.78%
FBP	76 Outperform	$3.40B	10.37	18.43%	3.35%	2.35%	13.72%
EBC	74 Outperform	$4.47B	75.76	1.32%	2.72%	-1.18%	-89.13%
RNST	72 Outperform	$3.46B	18.19	4.54%	2.44%	20.26%	-35.00%
FULT	71 Outperform	$3.65B	10.54	10.92%	3.52%	9.60%	20.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMA	65 Neutral	$6.14B	20.87	7.66%	2.36%	-55.81%	-78.94%

Eastern Bankshares Corporate Events

Eastern Bankshares Completes HarborOne Acquisition Merger

On November 1, 2025, Eastern Bankshares completed its acquisition of HarborOne Bancorp, merging HarborOne and its subsidiaries into Eastern. This strategic merger, initially announced in April 2025, positions Eastern as the surviving entity and aims to enhance its market presence. The merger consideration allowed HarborOne shareholders to choose between stock or cash, with a majority opting for stock. The transaction is expected to strengthen Eastern’s operations and expand its market reach, with implications for stakeholders including new board appointments and integration of HarborOne’s operations into Eastern’s framework.

Eastern Bankshares and HarborOne Bancorp Merger Closure

On October 28, 2025, Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. announced the closing of their merger agreement, initially disclosed on April 24, 2025. The merger will become effective shortly after midnight on November 1, 2025, with Eastern Bankshares and Eastern Bank as the surviving entities. As part of the merger, Joseph F. Casey and Michael J. Sullivan will join the boards of Eastern and Eastern Bank. The merger will result in the delisting of HarborOne’s common stock from the NASDAQ Global Select Market following the close of trading on October 31, 2025.

Eastern Bankshares Awaits Merger Completion with HarborOne

Eastern Bankshares, Inc. announced its third quarter 2025 financial results, highlighting a net income of $106.1 million and a record high of $9.2 billion in wealth management assets under management. The company declared a regular quarterly cash dividend and received approval for a new share repurchase program. Additionally, Eastern Bankshares received regulatory approval for its merger with HarborOne Bancorp, expected to close on November 1, 2025, creating a leading $30 billion community bank in Greater Boston.

Eastern Bankshares to Finalize HarborOne Merger Soon

Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. announced a merger agreement on April 24, 2025, where Eastern will acquire HarborOne. The merger is expected to be effective on November 1, 2025, with HarborOne’s stock being delisted from NASDAQ following the close of trading on October 31, 2025. Shareholders of HarborOne have until October 28, 2025, to elect their preferred form of merger consideration. This merger is anticipated to impact the operations and market positioning of both companies, with potential implications for stakeholders, including changes in stock and cash considerations.

Eastern Bankshares Receives Approval for HarborOne Merger

On September 26, 2025, Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. announced they received all necessary regulatory approvals for their merger, initially disclosed on April 24, 2025. The merger, expected to close on or about November 1, 2025, will create a $30 billion community-focused organization, enhancing Eastern’s presence in Greater Boston and expanding into Rhode Island. The merger aims to deliver enhanced value to stakeholders and ensure a smooth transition for customers, with full integration expected by February 2026.

Eastern Bankshares and HarborOne Merger Progresses

Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. announced the distribution of election materials to HarborOne shareholders, allowing them to choose between receiving Eastern common stock, cash, or a combination of both as part of their merger agreement. The merger, approved by HarborOne shareholders on August 20, 2025, is expected to be completed by November 1, 2025, pending regulatory approvals, with the election deadline for shareholders set for October 28, 2025.