Eastern Bankshares, Inc. Reports Third Quarter 2026 Financial Results

Denis Sheahan, Chief Executive Officer of Eastern Bankshares, Inc.

“We are pleased with our third quarter performance, which reflects disciplined execution on our priorities of growing organically and returning capital to shareholders. CRE and C&I lending drove solid total loan growth, while CRE payoffs continued to be a headwind, despite moderating from the second quarter. Commercial loan pipelines remain strong, although the pace of closings has been somewhat slower than anticipated as some clients take a more measured approach to investment decisions amid interest rate uncertainty. Overall, customers remain resilient and business activity continues to generate demand for financing. On the funding side, period-end deposits grew modestly despite seasonal municipal outflows. While competition remains elevated, we are committed to gathering core deposits to support our growth strategy. Wealth Management further increased assets under management and administration, and our comprehensive, team-based approach continues to differentiate us. While we are in the early stages of capitalizing on the full potential of our Wealth Management business, we are generating meaningful momentum, and are encouraged about its long-term outlook. Looking forward, we remain focused on fundamentals and delivering strong, sustainable results. Our breadth of products and services, long-standing customer relationships, and steadfast commitment to the communities we serve reinforce Eastern’s standing as a premier bank in Greater Boston, and position us well to create value for shareholders.”

David Rosato, Chief Financial Officer of Eastern Bankshares, Inc.

“Our third quarter financial results were strong, highlighted by record operating income of $111.0 million, or $0.51 on a per share basis, and a return on average tangible common equity of 15.7%. We continued to generate positive operating leverage, due to higher net interest income driven by balance sheet growth and well-controlled expenses, resulting in an operating efficiency ratio of 47.5%. Net interest margin declined 4 basis points linked quarter, as higher earning asset yields were more than offset by increased deposit costs. Credit quality remains excellent as evidenced by a third consecutive quarterly reduction in non-performing loans following the HarborOne merger, and total net charge-offs to average total loans of 9 basis points, down from 17 basis points in the second quarter. In addition, consistent with our commitment to rightsize our capital levels, we returned $89.1 million to shareholders through share repurchases and dividends during the quarter.”