Eastern Bankshares (EBC) investor relations material

Executive summary

• Record operating net income was $111.0 million, or $0.51 per diluted share; operating earnings rose 4% QoQ and 50% YoY.

• Results reflected higher net interest income, lower expenses, loan and deposit growth, improving asset quality, and $89.1 million returned to shareholders.

Financial highlights

• Total revenue was $306.6 million, versus $309.5 million in Q2; net interest income rose to $257.9 million from $251.9 million QoQ.

• FTE NIM was 3.62%, down 4 bps QoQ as higher funding costs outweighed improved asset yields; excluding discount accretion, NIM fell 2 bps.

• Operating noninterest income fell $9.2 million QoQ, primarily on lower retirement-benefit investment income and nonrecurring Q2 commercial-loan sale gains.

• Operating noninterest expense declined $6.7 million QoQ to $159.7 million; Q3 had no non-operating costs versus $1.6 million in Q2.

Outlook and guidance

• FY2026 guidance from July remained unchanged; YTD NIM of 3.64% was within the 3.60%-3.65% range.

• NIM is expected to remain relatively stable in Q4 and improve modestly next year as asset repricing outpaces deposit-cost increases.

• Q4 expenses are expected to rise from Q3, with a normalized quarterly base of $163-$164 million; the effective tax rate is expected to return to ~22%.

• Strong commercial pipelines support optimism, though higher rates and uncertainty are slowing client investment decisions and closings; 2027 guidance is expected in January.