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Eastern Bankshares (EBC) Q3 2026 Earnings Report
EBC Q3 2026 EPS Results
- Actual EPS
- $0.51
- Consensus EPS
- $0.49
- Beat/Miss
- Beat by +$0.02
- One Year Ago EPS
- $0.37
EBC Q3 2026 Revenue Results
- Actual Revenue
- $410.20M
- Expected Revenue
- $310.60M
- Beat/Miss
- Beat by +$99.60M
- YoY Revenue Growth
- +26.87%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- After Close
- Conference Call
- Thursday, October 22, 2026
Eastern Bankshares's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive. Eastern reported record operating net income, improving profitability, commercial loan and wealth management momentum, strong capital generation, lower expenses, and excellent asset quality. The main challenges were elevated deposit competition and funding costs, a linked-quarter decline in net interest margin and fee income, slower commercial loan closings, modestly higher future expenses, and broader macroeconomic uncertainty. Management nevertheless maintained its full-year 2026 guidance and expressed confidence in the franchise and its ability to gain market share.
Management expects the effective tax rate to return to about 22%; full-year 2026 net interest margin remains within the 3.60%-3.65% guidance range, with net interest margin expected to remain relatively stable in the fourth quarter and to modestly improve into next year; approximately $1 billion of fixed rate variable assets are expected to reprice in the fourth quarter and roughly $800 million per quarter in 2027; securities reinvestment and net modest growth will continue into Q4; residential mortgage balances are expected to remain relatively flat in 2026; expenses are expected to tick up a bit in Q4 relative to Q3, with the expense base at 163, 164, in that neighborhood, and year-over-year expenses well under control despite modest increases; management’s goal is to achieve the historic 50% deposit betas; and new 2027 guidance will be provided at the beginning of the year.
- Record Operating Earnings and Improved ProfitabilityThird-quarter operating net income reached a record $111 million, or $0.51 per diluted share, increasing 4% linked quarter and 50% from a year ago. Operating ROAA improved 3 basis points to 141 basis points, operating return on average tangible common equity improved 37 basis points to 15.7%, and the operating efficiency ratio improved to 47.5%.
- Positive Revenue and Net Interest Income PerformanceTotal revenue increased 1% linked quarter to $306.6 million. Net interest income grew 2% linked quarter, reflecting continued balance sheet growth, and well-controlled expenses produced another quarter of positive operating leverage.
- Commercial Loan Growth and Robust PipelinePeriod-end loan balances increased $261 million, or 1.1%, linked quarter. CRE balances grew $229 million, supported by strong originations, while C&I balances increased $93 million through broad-based portfolio growth and continued client activity. Commercial pipelines remained strong at approximately $1 billion at the end of September, with a balanced mix of CRE and C&I.
- Deposit Growth Despite Seasonal OutflowsPeriod-end deposits increased $98 million linked quarter despite seasonal municipal outflows, while average deposits increased $667 million, or 2.6%, from the second quarter. Money market balances continued to grow as customers maintained a preference for liquidity. The company also reported $2 billion more deposits than loans at September 30 and limited reliance on wholesale funding.
- Wealth Management MomentumAssets under administration increased to $11.6 billion, including $10.8 billion in assets under management. AUM increased $156 million linked quarter, primarily driven by $97 million in positive net flows. Wealth management fees increased 10% compared with Q3 2025, and the average fee ratio was approximately 70 basis points.
- Excellent Asset Quality and Improving Nonperforming LoansNet charge-offs to average total loans declined to 9 basis points from 17 basis points in Q2. Nonperforming loans improved by $24.6 million to $84.8 million, or 36 basis points of total loans, marking the third consecutive quarter of improvement following the HarborOne merger. The investor office portfolio represents only 4% of total loans, is well reserved, and continues to perform within expectations.
- Strong Capital Position and Shareholder ReturnsCET1 and tangible common equity ratios were 13% and 9.6%, respectively. The company returned $89.1 million of capital to shareholders during the quarter, including $32.4 million of cash dividends and $56.7 million used to repurchase 2.6 million shares at an average price of $22.11. Through the day before the call, it had repurchased an additional 1.6 million shares for $33.8 million, with 8.5 million shares remaining under its authorization through the end of 2027.
- Lower Operating ExpensesNon-interest expense decreased $8.3 million, or 5%, linked quarter, while operating non-interest expense declined $6.7 million. The quarter included no non-operating costs compared with $1.6 million in Q2, along with lower salaries and benefits, occupancy and equipment costs, professional services, and other operating expenses.
- Net Interest Margin Remains Within Full-Year GuidanceYear-to-date net interest margin was 3.64%, remaining within the full-year guidance range of 3.60%-3.65%. Management expects net interest margin to remain relatively stable in the fourth quarter and to modestly improve into next year, including from approximately $1 billion of fixed-rate assets repricing in Q4 and roughly $800 million per quarter repricing in 2027.
- Attractive Repricing and Stable Commercial Loan SpreadsSecurities purchases have generated yields of 6%-6.5%, dependent on asset class, and average security purchase yields have increased about 10 basis points per quarter over the last year. Loan spreads in the core CRE and C&I portfolios have generally remained stable at 175-200 basis points.
- Continued Investment in Technology and AITechnology and AI spending increased modestly this year, and the company expects additional technology spending and staffing requests. Management stated that these investments can be absorbed in the full expense base while keeping year-over-year expenses well under control, although expenses will increase modestly.
- Franchise Positioning and Commercial Market OpportunityManagement said the Eastern brand is highly regarded across its market, customers value its broad commercial capabilities and local decision-making, and the company has attracted high-caliber talent amid industry consolidation. The company said its team is positioned to take more share in the market.
- Focused Capital Strategy Without M&A ActivityThe company remains focused on organic growth, share repurchases, dividends, and right-sizing capital. Management stated that it is not focused on whole-bank M&A and does not have a significant branch-rationalization program, with potential branch expansion or closure evaluated individually.
EBC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 0.51- | 0.44 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 0.490.51 | 0.37 | 37.84% (+0.14) | |
| Jul 23, 2026 | 2026 (Q2) | 0.460.49 | 0.41 | 19.51% (+0.08) | |
| Apr 23, 2026 | 2026 (Q1) | 0.440.40 | 0.34 | 17.65% (+0.06) | |
| Jan 22, 2026 | 2025 (Q4) | 0.410.44 | 0.34 | 29.41% (+0.10) | |
| Oct 23, 2025 | 2025 (Q3) | 0.400.37 | 0.25 | 48.00% (+0.12) | |
| Jun 30, 2025 | 2025 (Q2) | 0.380.41 | 0.22 | 86.36% (+0.19) | |
| Apr 24, 2025 | 2025 (Q1) | 0.330.34 | 0.23 | 47.83% (+0.11) | |
| Jan 23, 2025 | 2024 (Q4) | 0.290.34 | 0.1 | 240.00% (+0.24) | |
| Oct 24, 2024 | 2024 (Q3) | 0.330.25 | 0.32 | -21.88% (-0.07) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.