Eastern Bankshares (EBC) Q1 2026 earnings summary

Executive summary

• Operating income rose 31% year-over-year to $88.6 million, with net income at $65.3 million ($0.29 per diluted share), and operating EPS at $0.40; operating ROATCE reached 12.8%.

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

• Completed HarborOne merger core system conversion, with 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.

• Loan and deposit balances declined modestly from year-end, reflecting seasonal trends and merger impacts, but commercial loan pipelines ended at record highs.

Financial highlights

• Net interest income was $244.7 million ($250.8 million FTE), up 3% sequentially and 29.5% year-over-year; net interest margin (FTE) expanded to 3.63%.

• Noninterest income was $43.6 million, down $2.5 million sequentially, mainly due to weaker equity markets and lower swap income.

• Noninterest expense was $198.6 million, up $9.2 million sequentially and 52.7% year-over-year, driven by merger-related costs and higher payroll.

• Provision for loan losses was $5.8 million, down from $6.6 million year-over-year.

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

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.

• Commercial lending pipelines at record highs support confidence in strong originations; residential portfolio to remain flat.

• 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.

• CET1 ratio targeted at ~12% by mid-2026 as share repurchases continue.