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Eastern Bankshares
(NASDAQ:EBC)
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Rating:75Outperform
Price Target:
$25.00
▲(9.08% Upside)
Action:Reiterated
Date:07/24/26
EBC scores well primarily on improving financial performance and a constructive earnings outlook supported by strong profitability metrics, solid cash conversion, and disciplined expenses/capital returns. Technicals are supportive with an established uptrend and healthy (not overbought) momentum, while valuation is reasonable with a mid-single-digit-teens P/E and a ~2.4% dividend yield. Key watch items are earnings/cash-flow durability given historical volatility and ongoing deposit cost competition that pressured NII guidance.
Positive Factors
Improved profitability and efficiency
Sustained step-up in core profitability and a sub-50% efficiency ratio indicate the franchise is converting revenues into earnings more effectively. Higher ROTCE and ROA provide durable capacity to fund dividends, buybacks and capital needs, and improve shock absorption through cycles.
Negative Factors
Deposit pricing pressure
Persistent competitive pressure on deposit pricing can erode net interest margin over time as funding costs rise faster than asset yields. Given deposits fund a high share of loans, ongoing upward drift in deposit costs could structurally compress NII unless asset yields reprice sufficiently.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and efficiency
Sustained step-up in core profitability and a sub-50% efficiency ratio indicate the franchise is converting revenues into earnings more effectively. Higher ROTCE and ROA provide durable capacity to fund dividends, buybacks and capital needs, and improve shock absorption through cycles.
Read all positive factors
Eastern Bankshares (EBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.31B
Dividend Yield2.35%
Average Volume (3M)2.04M
Price to Earnings (P/E)13.0
Beta (1Y)0.89
Revenue Growth56.03%
EPS GrowthN/A
CountryUS
Employees2,450
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.76
Shares Outstanding231,143,100
10 Day Avg. Volume1,567,228
30 Day Avg. Volume2,038,518
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)0.91
Price to Sales (P/S)3.75
P/FCF Ratio9.60
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.13Price Target Upside9.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.88
Revenue Forecast (FY)$1.23B
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, int...
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 ...
Eastern Bankshares Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized multiple areas of strength — record operating net income, improved profitability metrics (ROATCE, ROA, efficiency), diversified fee growth, realized cost synergies from the HarborOne integration, strong deposit and C&I loan growth, record wealth assets, healthy capital returns and solid asset quality (NPLs and net charge-offs). Offsetting items include a modestly reduced NII outlook and narrower loan growth guidance driven by a slow start to the year, continued competitive pressure on deposit pricing, slightly lower-than-expected accretion, and elevated CRE payoffs in the quarter. On balance, execution, capital returns, and asset quality improvements dominate the discussion and suggest a constructive outlook despite tactical headwinds to margins.Positive Updates
Record Operating Net Income and EPS
Operating net income of $106.5M (operating EPS $0.49) — up 20% linked quarter and 30% year-over-year; reported net income $105.2M ($0.48 per diluted share).
Negative Updates
NII Outlook Lowered
Full-year net interest income outlook revised down to $1.005B–$1.020B with FTE margin now expected at 3.60%–3.65% (modestly lower than prior guidance) due to softer loan growth, lower-than-anticipated accretion year-to-date, and a highly competitive deposit environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Operating Net Income and EPS
Operating net income of $106.5M (operating EPS $0.49) — up 20% linked quarter and 30% year-over-year; reported net income $105.2M ($0.48 per diluted share).
Read all positive updates
Company Guidance
Management tightened and updated 2026 guidance: loan growth narrowed to 3.0–4.0% (from 3–5%) while deposit growth was raised to 2.0–3.0% (from 1–2%); net interest income is now expected at $1.005–1.020 billion with an FTE margin of 3.60–3.65% (Q2 NIM 3.66%, NII +3% linked quarter), and accretion is ~ $80 million for the year (~$40 million in H2; ~ $19.5M Q1, $19.7M Q2). Credit and fee guidance tightened as provision expense was lowered to $25–30 million (from $30–40M) and operating fee income was narrowed to $195–200 million (from $190–200M), while expense discipline improved with operating noninterest expense guided to $655–665 million (from $655–675M). Q2 operating results that underpin the outlook included operating net income of $106.5M ($0.49), record operating net income up 20% linked quarter and 30% YoY, operating ROTCE 15.3% (+250 bps), operating ROA 1.38% (+21 bps), a 49% operating efficiency ratio, period-end loans +$325M (1.4%), deposits +$814M (3.2%) with total deposit cost 147 bps and a June spot rate of 1.51%, loan-to-deposit ratio 91% (vs. 93% on 3/31), wealth assets $11.5B, NPLs $109M (47 bps), net charge-offs 17 bps, CET1 13.10% and TCE 10.1% (managing CET1 toward ~12% median), and strong capital returns in Q2 of $106M (3.6M shares repurchased for $72.7M at $20.03 avg, $33.1M dividends), plus a new repurchase authorization of up to 11.3M shares (5%) through 12/31/2027.Eastern Bankshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.06B | 1.07B | 558.71M | 681.93M | 523.48M |
| Gross Profit | 1.09B | 695.60M | 664.13M | 292.60M | 626.88M | 527.84M |
| EBITDA | 576.44M | 163.03M | 194.14M | -102.36M | 261.65M | 198.88M |
| Net Income | 376.11M | 88.22M | 119.56M | 232.18M | 199.76M | 154.66M |
Balance Sheet | ||||||
| Total Assets | 31.14B | 30.59B | 25.56B | 21.13B | 22.65B | 23.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.99B | 385.25M | 5.03B | 5.10B | 6.86B | 9.74B |
| Total Debt | 398.60M | 199.62M | 45.31M | 39.72M | 726.40M | 34.28M |
| Total Liabilities | 26.86B | 26.25B | 21.95B | 18.16B | 20.18B | 20.11B |
| Stockholders Equity | 4.28B | 4.34B | 3.61B | 2.97B | 2.47B | 3.41B |
Cash Flow | ||||||
| Free Cash Flow | 235.63M | 412.99M | 270.30M | 253.55M | 221.31M | 168.76M |
| Operating Cash Flow | 251.75M | 432.42M | 283.84M | 261.69M | 229.94M | 174.49M |
| Investing Cash Flow | 28.86M | -364.02M | 1.06B | 2.40B | -1.08B | -1.99B |
| Financing Cash Flow | -502.55M | -758.41M | -1.03B | -2.14B | -215.57M | 988.98M |
Eastern Bankshares Technical Analysis
Positive
22.92
Price Trends
21.51
Positive
20.57
Positive
19.73
Positive
Market Momentum
0.43
Positive
58.43
Neutral
59.26
Neutral
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 22.92 is above the 20-day moving average (MA) of 22.75, above the 50-day MA of 21.51, and above the 200-day MA of 19.73, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eastern Bankshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.42B | 12.10 | 19.03% | 2.64% | 2.45% | 26.38% | |
76 Outperform | $4.02B | 12.97 | 8.13% | 2.12% | 27.48% | 31.72% | |
75 Outperform | $4.04B | 15.13 | 7.66% | 2.89% | 34.13% | 25.12% | |
75 Outperform | $5.31B | 13.05 | 10.56% | 2.36% | 56.03% | ― | |
73 Outperform | $4.65B | 11.64 | 11.15% | 3.05% | 0.31% | 22.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $6.19B | 25.17 | 7.28% | 5.47% | 6.98% | 6551.65% |
* Financial Sector Average
EBC
Eastern Bankshares
23.39
8.52
57.25%
BMA
Banco Macro SA
91.39
23.11
33.84%
FBP
First Bancorp Puerto Rico
29.21
9.37
47.26%
FULT
Fulton Financial
24.88
7.80
45.66%
INDB
Independent Bank
85.75
23.68
38.14%
RNST
Renasant
44.30
8.79
24.75%
Eastern Bankshares Corporate Events
Stock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Eastern Bankshares Announces Share Repurchase Authorization and Dividend
Positive
Jul 23, 2026
Eastern 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, 2...
Executive/Board ChangesShareholder Meetings
Eastern Bankshares Shareholders Back Board and Governance Matters
Positive
May 19, 2026
On May 18, 2026, Eastern Bankshares, Inc. held its 2026 annual meeting of shareholders, where investors elected six directors, including Luis A. Borgen, Diane S. Hessan, Leon A. Palandjian, Robert F. Rivers, Cathleen A. Schmidt, and Michael J. Sul...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.