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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EBC

Eastern Bankshares, Inc.'s recent performance has been driven by several positive factors. The company's Q2 2025 earnings report showed strong revenue growth of 59% and solid loan and deposit expansion, fueled by recent mergers. Additionally, the net interest margin expanded significantly, and asset quality improved. The company has also been upgraded to a Zacks Rank #2 (Buy), indicating growing optimism about its earnings prospects. Furthermore, Eastern Bank has announced new commercial banking customers, including NEI General Contracting and Genuine Foods. The company is also set to release its Q3 2025 earnings report. (Source: Zacks)

1.c. Company Highlights

2. Eastern Bankshares' Q3 Earnings: A Strong Performance Ahead of HarborOne Merger

Eastern Bankshares, Inc. reported a robust third-quarter 2025 operating earnings of $74.1 million, marking a 44% increase from the previous year. The earnings per share (EPS) came in at $0.37, slightly below estimates of $0.4. The company's net interest income was $200.2 million, with a net interest margin (NIM) of 3.47%, down 12 basis points from the second quarter. The bank's tangible book value per share stood at $13.14, up 5% from June 30 and 10% from the beginning of the year.

Publication Date: Oct -26

📋 Highlights
  • Operating Earnings Surge: Q3 2025 operating earnings rose 44% to $74.1M, with ROA of 1.16% and ROTCE of 11.7%.
  • Merger Closure Imminent: Regulatory approvals secured for HarborOne merger, set to close on November 1, 2025.
  • Tangible Book Value Growth: Increased 5% to $13.14/share (Q3 2025) and 10% year-to-date, signaling asset strength.
  • Capital Position Robust: CET1 and TCE ratios at 14.7% and 11.4%, supporting dividend ($0.13/share) and share repurchase (5% of shares) plans.
  • Wealth Management Expansion: AUM hit record $9.2B, up $550M, driven by market gains and $50M in net flows.

Financial Performance and Margin Analysis

The bank's core margin has two key drivers: accretion income and deposit costs. Accretion income was below trend at $11 million to $12 million in Q3. The management expects deposit costs to remain competitive, potentially weighing on margin expansion, but anticipates roughly flat deposit costs in Q4. The spot margin was 3.48% in September, 1 basis point higher than the quarter, indicating a stable NIM.

Expense Management and Capital Allocation

Eastern Bank saw elevated compensation and benefit costs in Q3 but expects these to settle down in Q4. The expense base is not expected to increase significantly, with expenses expected to be roughly flat in Q4 overall to down a touch. The bank's capital allocation priorities are organic growth, share repurchases, supported by the dividend, and then M&A. The Board authorized a new share repurchase program of up to 11.9 million shares, or 5% of shares outstanding.

Wealth Management and Loan Growth

Assets under management in wealth management reached a record $9.2 billion, driven primarily by market gains, with net flows of $50 million positive. The bank is looking to hire more talent in the area. The loan growth continues to reflect the bank's strategic investments, with total loans growing 1.3% linked quarter and 4.1% year-to-date.

Valuation and Outlook

Considering the bank's Price-to-Tangible Book Value (P/TBV) and Dividend Yield, the stock is trading at a P/B Ratio of 0.92. Analysts estimate next year's revenue growth at 23.9%. The bank expects to sustain its NIM in 2026, despite potential deposit cost pressures, as rates decline. With the HarborOne merger expected to close on November 1, the bank is poised for growth in key areas such as Commercial Banking, Wealth Management, and Retail and Deposit franchise.

3. NewsRoom

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Capital Fund Management S.A. Acquires New Shares in Eastern Bankshares, Inc. $EBC

Dec -04

Source: defenseworld.net

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Eastern Bank Announces The Sourcing Group As A Commercial Banking Customer

Dec -03

Source: businesswire.com

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Contrasting Eastern Bankshares (NASDAQ:EBC) & Orrstown Financial Services (NASDAQ:ORRF)

Nov -30

Source: defenseworld.net

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Chain Bridge Bancorp (NYSE:CBNA) versus Eastern Bankshares (NASDAQ:EBC) Critical Contrast

Nov -14

Source: defenseworld.net

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Robin Moses Joins Eastern Bank As Senior Vice President, Team Leader For Commercial & Industrial Banking In Rhode Island

Nov -12

Source: businesswire.com

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Eastern Bankshares: Still Growing, Still A Long-Term Buy

Nov -11

Source: seekingalpha.com

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CORRECTING and REPLACING Eastern Bankshares, Inc. Announces Completion of HarborOne Acquisition And Proration of Merger Consideration

Nov -03

Source: businesswire.com

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Eastern Bankshares, Inc. Announces Completion of HarborOne Acquisition And Proration of Merger Consideration

Nov -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Banking

Expected Growth: 7.4%

Eastern Bankshares, Inc.'s 7.4% growth is driven by strategic acquisitions, expanding commercial lending, and a strong deposit base. The bank's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment also contribute to its growth. Additionally, the bank's diverse revenue streams, including fee income and mortgage banking, support its overall growth momentum.

7. Detailed Products

Consumer Banking

Eastern Bankshares, Inc. offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

The company provides commercial banking services, including cash management, commercial lending, and trade finance, to businesses of all sizes.

Wealth Management

Eastern Bankshares, Inc. offers wealth management services, including investment management, trust services, and financial planning, to individuals, families, and institutions.

Insurance

The company offers a range of insurance products, including life insurance, disability insurance, and long-term care insurance, to individuals and businesses.

8. Eastern Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Eastern Bankshares, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Eastern Bankshares, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers help to reduce the threat of customer bargaining power.

Bargaining Power Of Suppliers

Eastern Bankshares, Inc. relies on a few large suppliers for its operations, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate favorable terms help to mitigate this threat.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants to Eastern Bankshares, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Eastern Bankshares, Inc. faces intense competition from other banks and financial institutions, which can make it difficult to attract and retain customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.60%
Debt Cost 8.32%
Equity Weight 98.40%
Equity Cost 8.32%
WACC 8.32%
Leverage 1.62%

11. Quality Control: Eastern Bankshares, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Yield: 4.0

Momentum: 7.0

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Quality: 5.6

Yield: 7.0

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Quality: 5.2

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Eastern Bank

A-Score: 5.5/10

Value: 3.7

Growth: 5.9

Quality: 5.8

Yield: 5.0

Momentum: 6.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.05$

Current Price

19.05$

Potential

-0.00%

Expected Cash-Flows