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Eastern Bankshares (EBC) AI Stock Analysis
Eastern Bankshares
(NASDAQ:EBC)
EBC scores well primarily on improving financial performance (stronger TTM profitability and cash generation with conservative leverage) and a positive earnings outlook supported by strong capital returns and improving asset quality. The score is tempered by mixed technical momentum signals and key banking headwinds noted on the call—elevated deposit competition/funding costs and some near-term pressure on net interest margin and fees.
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.33B
- Dividend Yield
- 2.40%
- Average Volume (3M)
- 2.17M
- Price to Earnings (P/E)
- 13.4
- Beta (1Y)
- 0.77
- Revenue Growth
- 61.04%
- EPS Growth
- 593.16%
- Country
- US
- Employees
- 2,349
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Regional
Eastern Bankshares Business Overview & Revenue Model
Company Description
Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking, trust, and investment services to retail, commercial, and small business customers in the United States. The company offers deposit accounts, intere...
How the Company Makes Money
Eastern Bankshares makes money primarily through its banking subsidiary by earning net interest income and generating fee-based, noninterest income. Net interest income is the spread between (a) interest earned on loans and other interest-earning ass...
Eastern Bankshares 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.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
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.
Eastern Bankshares Financial Statement Overview
Summary
Financial statements are broadly strong: profitability and cash generation have stepped up meaningfully (TTM net margin ~26%, EBIT margin ~28%, operating cash flow ~$406M, free cash flow ~$393M with ~97% of net income). The balance sheet appears conservative (TTM debt-to-equity ~0.09) with improving returns (TTM ROE ~9%). The main restraint is sustainability risk given historical volatility (including a prior year with negative operating profit) and modestly rising debt with flat-to-slightly lower equity.
Income Statement
78PositiveBalance Sheet
85Very PositiveCash Flow
82Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.06B | 1.07B | 558.71M | 681.93M | 523.48M |
| Gross Profit | 1.11B | 695.60M | 664.13M | 292.60M | 626.88M | 527.84M |
| EBITDA | 612.85M | 163.03M | 194.14M | -102.36M | 261.65M | 198.88M |
| Net Income | 380.97M | 88.22M | 119.56M | 232.18M | 199.76M | 154.66M |
Balance Sheet | ||||||
| Total Assets | 31.70B | 30.59B | 25.56B | 21.13B | 22.65B | 23.51B |
| Cash, Cash Equivalents and Short-Term Investments | 5.33B | 385.25M | 5.03B | 5.10B | 6.86B | 9.74B |
| Total Debt | 904.00M | 199.62M | 45.31M | 39.72M | 726.40M | 34.28M |
| Total Liabilities | 27.50B | 26.25B | 21.95B | 18.16B | 20.18B | 20.11B |
| Stockholders Equity | 4.20B | 4.34B | 3.61B | 2.97B | 2.47B | 3.41B |
Cash Flow | ||||||
| Free Cash Flow | 244.93M | 412.99M | 270.30M | 253.55M | 221.31M | 168.76M |
| Operating Cash Flow | 249.21M | 432.42M | 283.84M | 261.69M | 229.94M | 174.49M |
| Investing Cash Flow | -428.92M | -364.02M | 1.06B | 2.40B | -1.08B | -1.99B |
| Financing Cash Flow | 25.46M | -758.41M | -1.03B | -2.14B | -215.57M | 988.98M |
Eastern Bankshares Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBC, the sentiment is Positive. The current price of 23.31 is above the 20-day moving average (MA) of 21.88, above the 50-day MA of 21.68, and above the 200-day MA of 20.91, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 69.75 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBC.
Eastern Bankshares Risk Analysis
Eastern Bankshares disclosed 70 risk factors in its most recent earnings report. Eastern Bankshares reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksEastern Bankshares Peers Comparison
Overall Rating
- EBC78Outperform
INDB76Outperform
WSFS76Outperform
NBTB74Outperform
FULT70Outperform
AUB67Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| EBC | 78Outperform | $5.19B | 13.40 | 8.91% | 2.40% | 61.04% | 593.16% |
| INDB | 76Outperform | $3.97B | 12.80 | 9.29% | 2.90% | 24.64% | 64.59% |
| WSFS | 76Outperform | $4.08B | 12.75 | 12.37% | 0.91% | 1.81% | 31.20% |
| NBTB | 74Outperform | $2.73B | 12.92 | 11.31% | 2.80% | 9.63% | 38.35% |
| FULT | 70Outperform | $4.55B | 11.25 | 11.39% | 3.13% | 2.96% | 12.41% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| AUB | 67Neutral | $5.56B | 10.95 | 0.04% | 3.68% | 20.79% | 94.69% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EBC | Eastern Bankshares, Inc. | 23.31 | 6.29 | 36.99% | |
| FULT | Fulton Financial | 24.31 | 7.54 | 45.00% | |
| INDB | Independent Bank Corp. | 86.42 | 19.23 | 28.61% | |
| NBTB | NBT Bancorp | 54.00 | 14.50 | 36.70% | |
| AUB | Atlantic Union Bankshares Corporation | 40.17 | 9.06 | 29.10% | |
| WSFS | Wsfs Financial | 81.08 | 27.87 | 52.37% |
Eastern Bankshares Corporate Events
Eastern Bankshares Delivers Strong Third-Quarter 2026 Results
PositiveEastern Bankshares reported strong third-quarter 2026 results on October 22, 2026, with net income and operating net income of $111.0 million, or $0.51 per diluted share, and returns of 1.41% on average assets and 15.7% on average tangible common equ...
Eastern Bankshares Announces Share Repurchase Authorization and Dividend
PositiveEastern Bankshares reported its earnings for the quarter ended June 30, 2026, and disclosed that its board approved a regular quarterly cash dividend of $0.15 per share, payable on September 22, 2026, to shareholders of record as of September 8, 2026...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 23, 2026