Eastern Bankshares (EBC) investor relations material

Executive summary

• Net income for Q2 2026 was $105.2 million ($0.48 per diluted share), with operating net income at $106.5 million ($0.49 per share), up 20% sequentially and 30% year-over-year.

• Operating ROATCE reached 15.3%, and results reflected enhanced earnings power, positive operating leverage, and strong organic growth in both banking and fee businesses.

• Strong loan and deposit growth, with commercial pipelines at record levels and wealth management assets reaching $11.5 billion, including $10.6 billion under management.

• Returned $106 million to shareholders via buybacks and dividends, and increased tangible book value per share at a 7% annualized rate.

• Board approved a new 5% share repurchase program, expiring December 2027.

Financial highlights

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

• Noninterest income rose to $57.6 million, up 28% sequentially and 34.4% year-over-year, driven by investment and advisory fees.

• Noninterest expense fell $30.7 million (15%) linked quarter, mainly due to lower merger-related costs.

• Efficiency ratio improved to 54.3% (GAAP) and 49.0% (operating basis).

• Dividend of $0.15 per share declared, payable September 22, 2026.

Outlook and guidance

• 2026 outlook: loan growth of 3%-4%, deposit growth of 2%-3%.

• Net interest income expected between $1.005B and $1.020B, with FTE margin of 3.60%-3.65%.

• Operating fee income guided to $195M-$200M; noninterest expense outlook tightened to $655M-$665M.

• Provision outlook lowered to $25M-$30M due to strong credit trends.

• CET1 ratio managed toward 12%.