Eastern Bankshares (EBC) investor relations material

Executive summary

• First quarter 2026 performance was solid, with operating income up 31% year-over-year and operating EPS up 18%, supported by the full impact of the HarborOne merger and operating ROATCE reaching 12.8%.

• Net income was $65.3 million ($0.29 per diluted share), and operating net income was $88.6 million ($0.40 per diluted share), reflecting merger-related costs.

• Wealth management saw positive net flows, with assets under management reaching a record $10.3 billion and $9.8 billion in AUM.

• Successful completion of the HarborOne merger core system conversion, with targeted cost savings on track and one-time charges nearly complete.

• Announced a 15% dividend increase and repurchased 3.9 million shares for $75.1 million, marking six consecutive years of dividend growth.

Financial highlights

• Net interest income was $244.7 million ($250.8 million FTE), up 3% sequentially, with NIM expanding 2 bps to 3.63%.

• Non-interest income was $43.6 million, down $2.5 million sequentially, mainly due to investment and equity market losses.

• Non-interest expense was $198.6 million, up $9.2 million sequentially, driven by seasonal costs, payroll, and HarborOne integration.

• Book value per share ended at $18.45; tangible book value per share at $12.90.

• Dividend increased 15% to $0.15 per share; $75.1 million in share repurchases completed in Q1 2026.

Outlook and guidance

• No changes to full-year guidance; expect to achieve projections but may trend toward the lower end of NII guidance ($1.02B–$1.05B) due to softer Q1 loan growth and deposit pricing pressure.

• Loan growth expected to pick up with record commercial pipelines; residential portfolio to remain flat, favoring HELOC and commercial growth.

• Expense run rate expected to moderate over the remainder of 2026.

• Provision guidance remains unchanged ($30M–$40M), with a cautious approach due to early stage of HarborOne integration and macro uncertainty.

• Expectation to complete current share repurchase program by mid-year and potentially initiate a new authorization.