Education
About Us
Working with TipRanks
Follow Us
Eastern Bankshares (EBC)
NASDAQ:EBC
Top Page
Eastern Bankshares
(NASDAQ:EBC)
Rating:60Neutral
Price Target:
$18.50
▲(6.20% Upside)
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.66B
Dividend Yield2.87%
Average Volume (3M)1.29M
Price to Earnings (P/E)24.1
Beta (1Y)1.02
Revenue Growth4.80%
EPS Growth-111.49%
CountryUS
Employees1,998
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.41
Shares Outstanding211,477,510
10 Day Avg. Volume1,281,104
30 Day Avg. Volume1,293,198
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)0.87
Price to Sales (P/S)2.92
P/FCF Ratio11.56
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue3.15
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda119.07
Forecast
1Y Price Target
$18.50Price Target Upside6.20% 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: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance for Eastern Bankshares, with significant growth in earnings, loans, and assets under management, as well as positive credit trends and strategic merger progress. However, challenges include losses from securities repositioning and increased operating expenses. Overall, the positive aspects outweigh the negative, indicating a strong position for future growth.Q2-2025 Updates
Positive Updates
Strong Second Quarter Performance
Operating earnings were $81.7 million, an increase of 21% 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%.
Robust Loan and Deposit Growth
The company reported robust loan growth of 8% annualized and an 8% annualized growth in deposits. Commercial loan pipelines are steady at approximately $500 million.
Record High Assets Under Management
Assets under management in the wealth management business reached a record high of $8.7 billion.
Improved Credit Trends
Nonperforming loans improved for the second consecutive quarter to 30 basis points, with no net charge-offs reported.
Merger and Strategic Initiatives
The pending merger with HarborOne is on track for completion in the fourth quarter, with plans for branch consolidations and integration well underway.
Negative Updates
Securities Portfolio Repositioning Losses
Noninterest income in Q1 included pretax nonoperating losses on the sale of available-for-sale securities of $269.6 million due to investment portfolio repositioning.
Higher Operating Expenses
Noninterest expense increased by $6.8 million from the first quarter due to higher operating expenses and merger-related costs.
Competitive Deposit Market
The competitive market for deposits has intensified, affecting the company's ability to grow core deposits.
Company Guidance
During the Eastern Bankshares, Inc. second quarter 2025 earnings call, management highlighted several key metrics reflecting their strong performance. Operating earnings increased by 21% from the first quarter to $81.7 million, with a net interest margin expansion of 21 basis points to 3.59%. The operating efficiency ratio improved to 50.8% due to higher revenues and effective expense management. Total assets reached $25.5 billion, a 2% increase from March 31, while tangible book value per share rose by 4% to $12.53. The bank saw robust loan growth of 8% annualized, and deposits grew by 8% annualized, with costs remaining stable. The wealth management business achieved record assets under management of $8.7 billion. Credit trends were positive, with nonperforming loans improving to 30 basis points and no net charge-offs. Eastern Bankshares revised its full-year 2025 outlook, raising loan growth expectations to 3% to 5% and lowering the deposit growth outlook to 0% to 1%. Operating fee income is expected to reach $145 million to $150 million, and noninterest expenses are projected to be between $530 million and $540 million. The company is also focused on its pending merger with HarborOne, expected to close in the fourth quarter of 2025.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 negative net income impacting overall performance. Operational inefficiencies need addressing to improve margins.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 958.34M | 1.07B | 558.71M | 681.93M | 523.48M | 582.52M |
| Gross Profit | 548.97M | 664.13M | 292.60M | 626.88M | 527.84M | 531.64M |
| EBITDA | 25.34M | 194.14M | -102.36M | 261.65M | 198.88M | 63.81M |
| Net Income | -62.88M | 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 | 553.50M | 5.03B | 5.10B | 6.86B | 9.74B | 5.24B |
| Total Debt | 48.20M | 45.31M | 39.72M | 726.40M | 34.28M | 28.05M |
| Total Liabilities | 21.77B | 21.95B | 18.16B | 20.18B | 20.11B | 12.54B |
| Stockholders Equity | 3.68B | 3.61B | 2.97B | 2.47B | 3.41B | 3.43B |
Cash Flow | ||||||
| Free Cash Flow | 354.79M | 270.30M | 253.55M | 221.31M | 168.76M | 64.71M |
| Operating Cash Flow | 368.31M | 283.84M | 261.69M | 229.94M | 174.49M | 69.85M |
| Investing Cash Flow | 590.21M | 1.06B | 2.40B | -1.08B | -1.99B | -2.39B |
| Financing Cash Flow | -1.15B | -1.03B | -2.14B | -215.57M | 988.98M | 4.01B |
Eastern Bankshares Technical Analysis
Positive
17.42
Price Trends
15.93
Positive
15.37
Positive
16.17
Positive
Market Momentum
0.47
Negative
71.17
Negative
84.75
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 17.42 is above the 20-day moving average (MA) of 16.41, above the 50-day MA of 15.93, and above the 200-day MA of 16.17, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 84.75 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 68 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.13B | 12.17 | 17.42% | ― | 9.00% | -2.90% | |
77 Outperform | $4.04B | 15.11 | 7.81% | 2.88% | 3.00% | 42.78% | |
72 Outperform | $4.42B | 35.08 | 3.07% | 3.47% | -1.23% | -34.14% | |
72 Outperform | $3.96B | 34.40 | 4.01% | ― | 6.86% | -8.81% | |
68 Neutral | $17.80B | 11.94 | 9.89% | 3.74% | 9.69% | 1.17% | |
66 Neutral | $3.82B | 46.55 | 4.30% | 8.25% | 5.76% | 2.70% | |
60 Neutral | $3.66B | 24.06 | -1.89% | 2.87% | 4.80% | -111.49% |
* Financial Sector Average
Performance Comparison
EBC
Eastern Bankshares
17.42
1.77
11.31%
ASB
Associated Banc-Corp
26.53
5.90
28.60%
AX
Axos Financial
92.20
29.22
46.40%
TCBI
Texas Capital Bancshares
87.30
19.33
28.44%
TFSL
TFS Financial
13.69
1.73
14.46%
UCB
United Community Banks
33.06
5.20
18.66%
Eastern Bankshares Corporate Events
Executive/Board ChangesShareholder Meetings
Eastern Bankshares Holds Annual Shareholder Meeting
Positive
Aug 29, 2025
On May 19, 2025, Eastern Bankshares, Inc. held its annual shareholder meeting, where three key proposals were addressed. Shareholders elected five directors for a term ending in 2027, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for the 2025 fiscal year, indicating continued confidence in the company’s leadership and financial oversight.
M&A TransactionsShareholder Meetings
Eastern Bankshares Merger with HarborOne Approved
Positive
Aug 20, 2025
On August 20, 2025, HarborOne Bancorp, Inc. shareholders approved a merger with Eastern Bankshares, Inc., which will result in HarborOne merging into Eastern, with Eastern as the surviving entity. This merger is expected to close in the fourth quarter of 2025, and it includes a subsequent merger of HarborOne Bank into Eastern Bank. The merger aims to benefit customers and employees, with the conversion of HarborOne’s information systems to Eastern’s scheduled for February 2026. Shareholders of HarborOne will have the option to receive Eastern common stock, cash, or a combination of both, subject to proration. Eastern anticipates all regulatory approvals will be obtained by October 31, 2025, allowing the merger to become effective on November 1, 2025.
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.
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.