Eastern Bankshares (EBC) investor relations material

Executive summary

• Net income for Q2 2026 was $105.2 million ($0.48 per diluted share), with record operating net income of $106.5 million ($0.49 per share), up 20% sequentially and 30% year-over-year, reflecting enhanced earnings power and strong organic growth in both banking and fee businesses.

• Operating ROATCE reached 15.3%, and wealth management assets hit a record $11.5 billion, with $10.6 billion under management and strong fee growth.

• Loan balances grew 1.4% linked quarter, driven by strong C&I production, while deposits rose 3.2% due to broad-based growth and seasonal municipal inflows.

• Asset quality remained strong, with stable net charge-offs, improved non-performing loans for the second consecutive quarter, and allowance for loan losses at $325.4 million (1.40% of total loans).

• Returned $106 million to shareholders via buybacks and dividends, with a new 5% share repurchase program and a $0.15 dividend declared for September.

Financial highlights

• Net income was $105.2 million ($0.48 per diluted share); operating net income was $106.5 million ($0.49 per share), up 20% linked quarter.

• Net interest income grew to $251.9 million, up 3% from Q1, with margin expanding to 3.66%.

• Operating non-interest income rose $12.8 million (28%) from Q1, led by investment and advisory fees, reaching $57.6 million.

• Non-interest expense fell $30.7 million (15%) linked quarter, mainly due to lower merger-related costs and cost synergies.

• Deposits increased $814 million (3.2%) linked quarter; loan balances rose $325 million (1.4%) linked quarter.

Outlook and guidance

• 2026 outlook: loan growth of 3%-4% (narrowed from 3%-5%), deposit growth of 2%-3% (raised from 1%-2%), and net interest income expected at $1.15-$1.20 billion, with FTE margin of 3.60%-3.65%.

• Operating non-interest income projected at $195-$200 million; operating non-interest expense at $655-$665 million.

• Lowered provision outlook to $25-$30 million (from $30-$40 million) due to strong credit trends.

• CET1 ratio targeted to move from 13% toward 12% over time.