Eastern Bankshares (EBC) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $106.1 million ($0.53 per diluted share), including a GAAP tax benefit from earlier investment portfolio repositioning; operating net income was $74.1 million ($0.37 per diluted share), up 44% year-over-year.

• Achieved five years as a public company with a 95% increase in assets and 241% increase in deposits since IPO.

• Completed the merger with HarborOne Bancorp on November 1, 2025, issuing 26.9 million shares and paying $74.6 million in cash; integration and purchase accounting are ongoing.

• Authorized a 5% share repurchase program, up to 11.9 million shares, expiring October 31, 2026, and declared a $0.13 per share quarterly dividend.

• Wealth management assets under management reached a record $9.2 billion, with strong client retention and net flows over $50 million.

Financial highlights

• Net interest income was $200.2 million, with a net interest margin of 3.47%; net interest income increased 17.9% year-over-year.

• Noninterest income for Q3 2025 was $41.3 million, down $1.6 million sequentially but up 23% year-over-year.

• Noninterest expense was $140.4 million, up $3.5 million from Q2, including $3.2 million in merger-related costs.

• Tangible book value per share rose to $13.14, up 5% from June 30 and 10% year-to-date; book value per share increased to $17.99.

• Loans grew 4.1% year-to-date to $18.8 billion, with commercial lending as the main driver; deposits declined 0.9% to $21.1 billion.

Outlook and guidance

• Management expects meaningful earnings accretion from the HarborOne merger, continued focus on organic growth, and prudent risk management amid evolving interest rate and economic conditions.

• Margin expected to remain roughly flat in Q4, with deposit costs elevated due to competition but anticipated to decline as Fed eases.

• Medium-term CET1 capital target set at approximately 12%.

• Interest rate risk is actively managed; 36% of loans are indexed to market rates, with $2.2 billion hedged via swaps.