Eastern Bankshares (EBC)
NASDAQ:EBC
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Eastern Bankshares
(NASDAQ:EBC)
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Rating:68Neutral
Price Target:
$22.00
▲(4.51% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving TTM profitability and solid cash conversion, supported by a constructive earnings-call outlook and shareholder returns. It is tempered by historically uneven earnings/ROE, softening recent free-cash-flow momentum, and mixed/neutral technical signals alongside NII and funding-cost pressures noted on the call.
Positive Factors
Rebounding Profitability
A sharp TTM revenue rebound with high reported net and EBIT margins indicates the franchise has regained operating leverage and pricing power. Sustained margin expansion supports internal capital, enhances shock absorption versus cyclical dips, and underpins earnings durability over the next several quarters.
Negative Factors
Rising Leverage & Uneven ROE
An uptick in leverage and a still-moderate, historically uneven ROE signal the bank may face pressure to sustainably lift returns. Rising debt versus recent years can constrain flexibility for lending or buybacks and means improved profitability must be maintained to justify higher leverage over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Rebounding Profitability
A sharp TTM revenue rebound with high reported net and EBIT margins indicates the franchise has regained operating leverage and pricing power. Sustained margin expansion supports internal capital, enhances shock absorption versus cyclical dips, and underpins earnings durability over the next several quarters.
Read all positive factors
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.44B
Dividend Yield2.72%
Average Volume (3M)2.04M
Price to Earnings (P/E)16.6
Beta (1Y)0.89
Revenue Growth62.22%
EPS GrowthN/A
CountryUS
Employees1,998
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.78
Shares Outstanding231,143,100
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 Cap1.14
Enterprise Value/Revenue3.57
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda12.26
Forecast
1Y Price Target
$23.50Price Target Upside11.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.87
Revenue Forecast (FY)$1.24B
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 primarily earns revenue through traditional banking activities. A core source of earnings is net interest income: the bank pays interest on customer deposits and other funding sources and earns interest on loans and interest-bea...
Eastern Bankshares Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a net positive outlook: strong year‑over‑year operating performance, record wealth assets and net flows, a record commercial loan pipeline, successful completion of the Harbor One core conversion, and active capital returns (buybacks and a 15% dividend increase). Offsetting items include quarter‑to‑quarter earnings and accretion variability, seasonal expense pressures, deposit competition raising funding costs, higher unrealized securities losses, and a conservative stance on provisions and NII guidance due to integration and macro uncertainty. On balance, the company’s operational momentum, asset quality and capital actions outweigh near‑term noise and risks.Positive Updates
Strong Year‑Over‑Year Operating Performance
Operating income increased 31% year‑over‑year and operating earnings per share rose 18% year‑over‑year, producing operating ROATCE of 12.8% and operating ROA of 1.17% (117 bps), both improved from the prior year.
Negative Updates
Quarterly Linked‑Period Earnings and Accretion Volatility
Operating earnings decreased 6% linked quarter; GAAP net income of $65.3 million (EPS $0.29) was impacted by $30.8 million of nonoperating merger costs. Net discount accretion was $19.5 million (down $3.1 million from prior quarter), creating quarter‑to‑quarter margin volatility.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Year‑Over‑Year Operating Performance
Operating income increased 31% year‑over‑year and operating earnings per share rose 18% year‑over‑year, producing operating ROATCE of 12.8% and operating ROA of 1.17% (117 bps), both improved from the prior year.
Read all positive updates
Company Guidance
Management left the full-year 2026 outlook unchanged but said Q1 results make it more likely net interest income will fall toward the lower end of the prior NII guidance ($1.05B–$1.20B); they will revisit guidance at mid-year. Key quantitative guidance/expectations: accretion averaging $21–22M per quarter, core NIM expected to incrementally improve each quarter (Q1 NIM 3.63%, March spot 3.65%), modest upward pressure on deposit costs of roughly 2–3 bps (Q1 deposit cost 1.46%, spot 1.42%) potentially trimming ~1–2 bps of margin, deposit growth targeted at 1–2% for the year, and loan growth to pick up from a Q1 period-end decline of $187M supported by a record commercial pipeline of ≈$800M. Capital and capital-return plans remain intact (CET1 13.2%, TCE 10.2%); the company repurchased 3.9M shares for $75.1M in Q1 (avg $19.33), has completed roughly 65% of the buyback authorization and expects to finish midyear before seeking a new program, raised the dividend 15%, keeps annual provision guidance in the ~$30M–$40M range, and expects merger-related one-time charges to be nearly complete with about $2M remaining in Q2 (total ~$67M).Eastern Bankshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.41B | 1.06B | 1.07B | 558.71M | 681.93M | 523.48M |
| Gross Profit | 1.04B | 699.22M | 664.13M | 292.60M | 626.88M | 527.84M |
| EBITDA | 411.17M | 157.11M | 194.14M | -102.36M | 261.65M | 198.88M |
| Net Income | 371.18M | 88.21M | 119.56M | 232.18M | 199.76M | 154.66M |
Balance Sheet | ||||||
| Total Assets | 30.63B | 30.59B | 25.56B | 21.13B | 22.65B | 23.51B |
| Cash, Cash Equivalents and Short-Term Investments | 331.50M | 316.90M | 5.03B | 5.10B | 6.86B | 9.74B |
| Total Debt | 717.20M | 214.90M | 45.31M | 39.72M | 726.40M | 34.28M |
| Total Liabilities | 26.35B | 26.25B | 21.95B | 18.16B | 20.18B | 20.11B |
| Stockholders Equity | 4.29B | 4.34B | 3.61B | 2.97B | 2.47B | 3.41B |
Cash Flow | ||||||
| Free Cash Flow | 354.94M | 412.99M | 270.30M | 253.55M | 221.31M | 168.76M |
| Operating Cash Flow | 375.63M | 432.42M | 283.84M | 261.69M | 229.94M | 174.49M |
| Investing Cash Flow | -295.54M | -364.02M | 1.06B | 2.40B | -1.08B | -1.99B |
| Financing Cash Flow | -117.33M | -758.41M | -1.03B | -2.14B | -215.57M | 988.98M |
Eastern Bankshares Technical Analysis
Positive
21.05
Price Trends
20.05
Positive
19.65
Positive
18.18
Positive
Market Momentum
0.37
Negative
68.43
Neutral
77.91
Neutral
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 21.05 is above the 20-day moving average (MA) of 19.97, above the 50-day MA of 20.05, and above the 200-day MA of 18.18, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 68.43 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, 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 | $3.60B | 9.34 | 18.53% | 3.38% | 1.43% | 22.08% | |
73 Outperform | $3.61B | 9.59 | 5.94% | 2.47% | 43.39% | -25.06% | |
71 Outperform | $3.95B | 9.64 | 11.45% | 3.52% | -0.24% | 23.07% | |
71 Outperform | $3.67B | 11.52 | 7.01% | 3.05% | 27.40% | 13.49% | |
68 Neutral | $4.44B | 16.63 | 9.21% | 2.72% | 62.22% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $4.83B | 18.14 | 4.69% | 2.37% | -23.62% | -22.31% |
* Financial Sector Average
EBC
Eastern Bankshares
19.19
4.07
26.95%
BMA
Banco Macro SA
70.80
-20.75
-22.66%
FBP
First Bancorp Puerto Rico
23.28
3.08
15.25%
FULT
Fulton Financial
20.65
3.34
19.27%
INDB
Independent Bank
76.04
13.57
21.73%
RNST
Renasant
39.13
4.12
11.76%
Eastern Bankshares Corporate Events
Stock BuybackDividendsFinancial Disclosures
Eastern Bankshares Posts Solid Q1 2026 Earnings Growth
Positive
Apr 23, 2026
Eastern Bankshares reported first-quarter 2026 results on April 23, 2026, posting net income of $65.3 million, or $0.29 per diluted share, including merger-related costs, and operating net income of $88.6 million, or $0.40 per diluted share. The q...
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.