Eastern Bankshares (EBC) Q4 2025 earnings summary

Executive summary

• Operating earnings rose 62% year-over-year, driven by strong organic loan growth and record wealth assets under management, with full-year operating net income up 62% and Q4 operating net income up 28% sequentially to $94.7 million.

• The HarborOne merger expanded the footprint, adding $4.5 billion in loans and $4.3 billion in deposits, making the company the largest independent bank in Massachusetts.

• Focus has shifted to organic growth and capital return, with no acquisitions planned for the foreseeable future.

• Robust capital return to shareholders through share repurchases and dividends remains a priority.

Financial highlights

• Q4 net income was $99.5 million ($0.46 per diluted share), including a GAAP tax benefit and merger-related costs; operating net income was $94.7 million ($0.44 per diluted share).

• Net interest income reached $237.4 million ($243.4 million FTE), up $37.2 million from Q3, with net interest margin (FTE) up 14 bps to 3.61%.

• Non-interest income was $46.1 million, up $4.8 million from Q3, driven by mortgage banking and investment advisory fees.

• Non-interest expense was $189.4 million, up $49 million linked quarter due to merger costs and higher operating expenses.

• Book value per share ended at $18.42; tangible book value per share at $12.90.

Outlook and guidance

• 2026 loan growth expected at 3%-5%, deposit growth at 1%-2%.

• Net interest income projected at $1.2-$1.5 billion, with FTE margin of 365-375 bps.

• Provision expense forecasted at $30-$40 million, with operating non-interest income of $190-$200 million and operating non-interest expense at $655-$675 million.

• CET1 ratio to be managed toward 12% over time, with continued share repurchases and dividend growth.

• Focus remains on merger integration, cost savings, and enhanced earnings power for 2026 and beyond.