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Eastern Bankshares (EBC)
NASDAQ:EBC
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Eastern Bankshares
(NASDAQ:EBC)
Rating:59Neutral
Price Target:
$16.00
▲(1.46% Upside)
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.40B
Dividend Yield3.04%
Average Volume (3M)1.41M
Price to Earnings (P/E)24.1
Beta (1Y)1.06
Revenue Growth4.80%
EPS Growth-111.49%
CountryUS
Employees1,998
SectorFinancial
Sector Strength72
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.41
Shares Outstanding211,477,510
10 Day Avg. Volume1,219,880
30 Day Avg. Volume1,405,618
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue3.47
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda-96.91
Forecast
1Y Price Target
$17.67Price Target Upside12.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Eastern Bankshares Business Overview & Revenue Model
Company DescriptionEastern 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 MoneyEastern Bankshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans extended to consumers and businesses, such as mortgages, personal loans, and commercial loans. The bank also earns interest on securities and other investments. Non-interest income includes fees from various financial services, such as deposit account maintenance fees, transaction fees, and advisory services in wealth management. Additionally, the bank earns revenue through insurance premium income and investment management fees. Strategic partnerships and acquisitions further enhance its market presence and contribute to its financial performance by expanding its service offerings and customer base.
Eastern Bankshares Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: 3.27%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong financial performance, with significant growth in operating earnings, net interest margin, and assets under management. Positive credit trends and robust loan and deposit growth also contributed to the overall positive outlook. However, challenges such as decreased deposit growth expectations, competitive deposit markets, and increased noninterest expenses were noted. Despite these concerns, the positive aspects significantly outweighed the lowlights.Q2-2025 Updates
Positive Updates
Strong Operating Earnings Growth
Operating earnings were $81.7 million, representing an increase of 21% from the first quarter.
Net Interest Margin Expansion
Net interest margin expanded by 21 basis points to 3.59%.
Improved Profitability Metrics
Operating return on average assets increased by 21 basis points to 1.3%, and operating return on average tangible equity rose from 11.7% to 13.6%.
Record Assets Under Management
Assets under management reached a record high of $8.7 billion in the wealth management division.
Positive Credit Trends
Nonperforming loans improved for the second consecutive quarter to 30 basis points, and there were no net charge-offs.
Robust Loan and Deposit Growth
Loans grew 8% annualized, and deposits grew 8% annualized with stable deposit costs.
Updated Positive Full-Year Outlook
Increased loan growth outlook to 3%-5% and improved expectations for operating fee income and noninterest expenses.
Successful Management of Credit Risk
Criticized and classified loans improved significantly, with no multifamily nonperforming loans and no charge-offs in that portfolio.
Negative Updates
Decreased Full-Year Deposit Growth Expectation
Deposit growth expectation was lowered from 1%-2% to 0%-1% for the full year.
Competitive Deposit Market
The competitive market for deposits has heated up, affecting the cost of interest-bearing liabilities.
Increased Noninterest Expenses
Noninterest expense increased by $6.8 million from the first quarter due to higher operating expenses and merger-related costs.
Continued Economic Uncertainty
The company remains cautious due to evolving economic conditions and policies that could impact customers.
Company Guidance
During the second quarter of 2025, Eastern Bankshares, Inc. reported strong financial performance, with operating earnings reaching $81.7 million, marking a 21% increase from the first quarter. The net interest margin expanded by 21 basis points to 3.59%, and the operating efficiency ratio improved to 50.8%, reflecting effective expense management and higher revenues. Total assets grew by 2% to $25.5 billion, and tangible book value per share increased by 4% to $12.53. The company saw robust loan growth of 8% annualized, with a steady commercial loan pipeline around $500 million. Deposits also grew at an annualized rate of 8%, while deposit costs remained stable. The wealth management business reported record-high assets under management of $8.7 billion. Credit trends showed positive momentum, as nonperforming loans improved to 30 basis points, and there were no net charge-offs. For the full year 2025, Eastern Bankshares expects loan growth of 3% to 5%, deposit growth of 0% to 1%, and net interest income between $810 million and $820 million, with a full-year operating tax rate revised down to 21% to 22%.Eastern Bankshares Financial Statement Overview
Summary
Eastern Bankshares shows financial stability with a strong balance sheet and positive cash flow metrics. However, significant profitability challenges are evident with a negative net income and EBITDA margin in the TTM, indicating operational inefficiencies.Income Statement
Eastern Bankshares experienced fluctuating revenue with a decline in the TTM compared to the previous annual report. The net profit margin is negative in the TTM due to a significant net loss, which is concerning for profitability. The gross profit margin is robust, but the negative EBITDA margin in the TTM suggests operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity is negative in the TTM due to net losses, which poses a risk to shareholder value. The equity ratio is stable, reflecting a solid asset base.60
Neutral
Cash Flow
Cash flow analysis shows positive operating cash flow and free cash flow growth, indicating efficient cash management. The operating cash flow to net income ratio is favorable, despite the net loss in the TTM, suggesting good cash generation capability.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.07B | 558.71M | 681.93M | 523.48M | 582.52M |
| Gross Profit | 664.13M | 292.60M | 626.88M | 527.84M | 531.64M |
| EBITDA | 194.14M | -102.36M | 261.65M | 198.88M | 63.81M |
| Net Income | 119.56M | 232.18M | 199.76M | 154.66M | 22.74M |
Balance Sheet | |||||
| Total Assets | 25.56B | 21.13B | 22.65B | 23.51B | 15.96B |
| Cash, Cash Equivalents and Short-Term Investments | 5.03B | 5.10B | 6.86B | 9.74B | 5.24B |
| Total Debt | 45.31M | 39.72M | 726.40M | 34.28M | 28.05M |
| Total Liabilities | 21.95B | 18.16B | 20.18B | 20.11B | 12.54B |
| Stockholders Equity | 3.61B | 2.97B | 2.47B | 3.41B | 3.43B |
Cash Flow | |||||
| Free Cash Flow | 270.30M | 253.55M | 221.31M | 168.76M | 64.71M |
| Operating Cash Flow | 283.84M | 261.69M | 229.94M | 174.49M | 69.85M |
| Investing Cash Flow | 1.06B | 2.40B | -1.08B | -1.99B | -2.39B |
| Financing Cash Flow | -1.03B | -2.14B | -215.57M | 988.98M | 4.01B |
Eastern Bankshares Technical Analysis
Positive
15.77
Price Trends
15.44
Positive
15.29
Positive
16.33
Negative
Market Momentum
0.04
Negative
58.57
Neutral
94.68
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 15.77 is above the 20-day moving average (MA) of 15.69, above the 50-day MA of 15.44, and below the 200-day MA of 16.33, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.57 is Neutral, neither overbought nor oversold. The STOCH value of 94.68 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 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.02B | 11.81 | 17.42% | ― | 9.00% | -2.90% | |
72 Outperform | $3.87B | 33.38 | 4.01% | ― | 6.86% | -8.81% | |
70 Outperform | $3.83B | 14.33 | 7.81% | 3.08% | 3.00% | 42.78% | |
68 Neutral | $4.22B | 33.52 | 3.07% | 3.66% | -1.23% | -34.14% | |
66 Neutral | $3.70B | 45.11 | 4.30% | 8.57% | 5.76% | 2.70% | |
62 Neutral | C$15.64B | 6.64 | 13.72% | 5.97% | 22.30% | -10.12% | |
59 Neutral | $3.40B | 24.06 | -1.89% | 3.04% | 4.80% | -111.49% |
* Financial Sector Average
Performance Comparison
EBC
Eastern Bankshares
15.77
0.35
2.27%
ASB
Associated Banc-Corp
24.85
3.88
18.50%
AX
Axos Financial
88.06
23.54
36.48%
TCBI
Texas Capital Bancshares
83.94
21.35
34.11%
TFSL
TFS Financial
13.04
0.82
6.71%
UCB
United Community Banks
31.21
2.64
9.24%
Eastern Bankshares Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Eastern Bankshares Reports Strong Q2 2025 Results
Positive
Jul 24, 2025
Eastern Bankshares, Inc. reported strong financial results for the second quarter of 2025, with a net income of $100.2 million and an operating net income of $81.7 million. The company saw significant loan growth driven by higher commercial and industrial activity and maintained stable deposit costs. The announcement also highlighted the approval of a regular quarterly cash dividend and ongoing integration planning with HarborOne, emphasizing the company’s strategic focus on profitable growth and long-term value creation.
The most recent analyst rating on (EBC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Eastern Bankshares stock, see the EBC Stock Forecast page.
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.