Eastern Bankshares (EBC)
NASDAQ:EBC
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Eastern Bankshares
(NASDAQ:EBC)
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Rating:54Neutral
Price Target:
$20.00
â–²(0.76% Upside)
Action:DowngradedDate:03/03/26
The score is primarily held back by weak 2025 cash flow conversion and compressed profitability despite a strong, conservatively leveraged balance sheet. Near-term technicals are soft (below key short-term averages with weak momentum), and valuation is demanding due to the high P/E. Offsetting these are positive 2026 guidance and an aggressive capital return plan, tempered by acquisition-related credit and expense risks.
Positive Factors
Conservative capital structure and expanding equity
Very low leverage and materially higher equity provide a durable capital buffer that supports lending, cushions credit stress, and gives management flexibility for M&A and buybacks. An expanding equity base underpins balance-sheet resilience across economic cycles and supports long-term strategic options.
Negative Factors
Severe operating cash flow deterioration in 2025
A near-total collapse in operating/free cash flow is a structural red flag for funding flexibility and earnings quality. Low cash conversion impairs the bank's ability to self-fund dividends, buybacks, or inorganic growth, and increases reliance on accounting accretion, balance-sheet actions, or external funding over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative capital structure and expanding equity
Very low leverage and materially higher equity provide a durable capital buffer that supports lending, cushions credit stress, and gives management flexibility for M&A and buybacks. An expanding equity base underpins balance-sheet resilience across economic cycles and supports long-term strategic options.
Read all positive factors
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend Yield2.72%
Average Volume (3M)2.04M
Price to Earnings (P/E)45.0
Beta (1Y)0.91
Revenue Growth-1.18%
EPS Growth-89.13%
CountryUS
Employees1,998
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.44
Shares Outstanding234,637,770
10 Day Avg. Volume1,567,228
30 Day Avg. Volume2,038,518
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)0.91
Price to Sales (P/S)3.76
P/FCF Ratio9.60
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue4.31
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda28.99
Forecast
1Y Price Target
$23.00Price Target Upside15.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.94
Revenue Forecast (FY)$1.25B
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 A...
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 an...
Eastern Bankshares Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by strong operating performance (record wealth AUM, significant operating earnings growth, improved ROA/ROTE, margin expansion and organic loan growth), successful progress on the HarborOne acquisition and an aggressive capital return program. Headwinds include merger-related costs, an acquisition-driven uptick in nonperforming and criticized loans, elevated short-term expense and deposit cost pressure, and some mark-to-market unrealized losses. Management provided clear 2026 guidance and emphasized focus on organic growth, buybacks and managing capital toward targeted levels.Positive Updates
Strong Full-Year Operating Earnings Growth
Management highlighted a 62% increase in operating earnings for 2025 (company statement) and Q4 operating earnings of $94.7 million, which increased 28% linked-quarter; operating EPS was $0.44, up 19% linked-quarter.
Negative Updates
Merger-Related Costs and Higher Expenses
Noninterest expense was $189.4 million in Q4, up $49.0 million linked-quarter. Nonoperating expenses of $33.4 million increased $30.2 million (including $26.7 million merger-related costs and a $3.5 million lease impairment). Operating expenses rose to $156.1 million, up $18.9 million due primarily to HarborOne addition.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Operating Earnings Growth
Management highlighted a 62% increase in operating earnings for 2025 (company statement) and Q4 operating earnings of $94.7 million, which increased 28% linked-quarter; operating EPS was $0.44, up 19% linked-quarter.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for loan growth of 3–5% and deposit growth of 1–2%, net interest income of $1.20–$1.50 billion with a full‑year FTE margin of 3.65%–3.75% (December spot ~3.64%) assuming market forwards (management modeled two rate cuts in June and September), provision expense of $30–$40 million, operating noninterest income of $190–$200 million (assumes no market appreciation), operating noninterest expense of $655–$675 million, and an operating tax rate of ~23%; they plan to manage CET1 (13.2% at year‑end) toward the KRX median (~12%)—projecting ~12.7% by June 30 if the current buyback is completed—and to continue aggressive capital return (Q4 repurchases: 3.1M shares for $55.4M; additional 635k for $12.3M; 8.1M shares remain; Q1 dividend $0.13). Management also expects merger accretion to contribute roughly $12–$13M/quarter from HarborOne loans (plus ~$9–$10M/quarter from prior deals), core deposit amortization of ~$8–$9M/quarter, targets deposit betas of ~45–50% and securities to be ~15% of assets.Eastern Bankshares Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.07B | 558.71M | 681.93M | 523.48M |
| Gross Profit | 699.22M | 664.13M | 292.60M | 626.88M | 527.84M |
| EBITDA | 157.11M | 194.14M | -102.36M | 261.65M | 198.88M |
| Net Income | 88.21M | 119.56M | 232.18M | 199.76M | 154.66M |
Balance Sheet | |||||
| Total Assets | 30.59B | 25.56B | 21.13B | 22.65B | 23.51B |
| Cash, Cash Equivalents and Short-Term Investments | 316.90M | 5.03B | 5.10B | 6.86B | 9.74B |
| Total Debt | 214.90M | 45.31M | 39.72M | 726.40M | 34.28M |
| Total Liabilities | 26.25B | 21.95B | 18.16B | 20.18B | 20.11B |
| Stockholders Equity | 4.34B | 3.61B | 2.97B | 2.47B | 3.41B |
Cash Flow | |||||
| Free Cash Flow | 412.99M | 270.30M | 253.55M | 221.31M | 168.76M |
| Operating Cash Flow | 432.42M | 283.84M | 261.69M | 229.94M | 174.49M |
| Investing Cash Flow | -364.02M | 1.06B | 2.40B | -1.08B | -1.99B |
| Financing Cash Flow | -758.41M | -1.03B | -2.14B | -215.57M | 988.98M |
Eastern Bankshares Technical Analysis
Positive
19.85
Price Trends
20.03
Negative
19.31
Positive
17.88
Positive
Market Momentum
-0.07
Negative
57.13
Neutral
89.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBC, the sentiment is Positive. The current price of 19.85 is above the 20-day moving average (MA) of 19.10, below the 50-day MA of 20.03, and above the 200-day MA of 17.88, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 89.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBC.
Eastern Bankshares Risk Analysis
Eastern Bankshares disclosed 70 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.40B | 9.62 | 18.37% | 3.38% | 2.35% | 13.72% | |
69 Neutral | $3.95B | 9.05 | 11.60% | 3.52% | 9.60% | 20.38% | |
69 Neutral | $3.49B | 10.54 | 5.10% | 2.47% | 20.26% | -35.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $5.32B | 24.80 | 4.69% | 2.37% | -55.81% | -78.94% | |
64 Neutral | $3.75B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% | |
54 Neutral | $4.66B | 44.96 | 2.29% | 2.72% | -1.18% | -89.13% |
* Financial Sector Average
EBC
Eastern Bankshares
19.85
5.74
40.71%
BMA
Banco Macro SA
77.46
15.63
25.27%
FBP
First Bancorp Puerto Rico
21.74
5.48
33.70%
FULT
Fulton Financial
20.53
5.86
39.96%
INDB
Independent Bank
76.78
23.73
44.72%
RNST
Renasant
37.03
9.06
32.40%
Eastern Bankshares Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Eastern Bankshares Posts Updated Investor Presentation for Shareholders
Positive
Jan 22, 2026
Eastern Bankshares, a financial services company, reported that in conjunction with its earnings announcement for the quarter ended December 31, 2025, its board approved a regular quarterly cash dividend of $0.13 per share, payable on March 20, 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.