Eastern Bankshares, Inc. Reports Fourth Quarter 2025 Financial Results (Form 8-K)

Eastern Bankshares, Inc. Reports Fourth Quarter 2025 Financial Results

Strong Organic Growth and Return of Capital to Shareholders

•Net income of $99.5 million, or $0.46 per diluted share, included a GAAP tax benefit related to losses from the investment portfolio repositioning completed in the first quarter and non-operating merger-related costs in the fourth quarter; operating net income of $94.7 million, or $0.44 per diluted share.

•Return on average assets of 1.36%, or 1.30% on an operating basis; return on average tangible common equity of 14.4%, or 13.8% on an operating basis.

•Period-end loans increased $4.7 billion linked quarter due to the addition of HarborOne and legacy Eastern loan growth of $255 million, primarily driven by continued strong commercial lending results.

•Wealth assets reached a record high of $10.1 billion, including $9.6 billion of assets under management.

•Repurchased 3.1 million shares of common stock for $55.4 million in the fourth quarter, or 26% of the share repurchase program authorized in October.

•Non-performing loans increased, as expected, by $103.1 million to $172.3 million, or 0.75% of total loans, due primarily to loans acquired from HarborOne that were thoroughly assessed and adequately reserved; allowance for loan losses of $332 million, or 1.44% of total loans at year-end.

BOSTON, January 22, 2026 - Eastern Bankshares, Inc. (the "Company") (NASDAQ: EBC), the holding company of Eastern Bank, today announced its fourth quarter 2025 financial results.

FINANCIAL HIGHLIGHTS

			As of and for three months ended									Linked quarter Change
(Unaudited, $ in millions, except per share data)			Dec 31, 2025			Sep 30, 2025						△ $			△ %
Earnings
Net income			$	99.5		$	106.1					$	(6.6)		(6.2)		%
Per share, diluted			$	0.46		$	0.53					$	(0.07)		(13.2)		%
Operating net income*			$	94.7		$	74.1					$	20.6		27.8		%
Per share, diluted*			$	0.44		$	0.37					$	0.07		18.9		%
Net interest income			$	237.4		$	200.2					$	37.2		18.6		%
NIM - FTE*			3.61		%	3.47		%				NM			0.14		%
Noninterest income			$	46.1		$	41.3					$	4.8		11.6		%
Operating noninterest income*			$	46.7		$	39.7					$	7.0		17.6		%
Noninterest expense			$	189.4		$	140.4					$	49.0		34.9		%
Operating noninterest expense*			$	156.1		$	137.2					$	18.9		13.8		%
Efficiency ratio			66.8		%	58.2		%				NM			8.6		%
Operating efficiency ratio*			50.1		%	52.8		%				NM			(2.7)		%
Balance sheet
Period-end balances
Loans			$	23,574		$	18,829					$	4,744		25.2		%
Deposits			$	25,471		$	21,117					$	4,354		20.6		%
Average balances
Loans			$	21,918		$	18,718					$	3,200		17.1		%
Deposits			$	24,262		$	21,124					$	3,138		14.9		%
Capital
Tangible shareholders' equity / tangible assets*			10.38		%	11.37		%				NM			(0.99)		%
CET1 capital ratio (1)			13.22		%	14.71		%				NM			(1.49)		%
Book value per share			$	18.42		$	17.99					$	0.43		2.4		%
Tangible book value per share*			$	12.90		$	13.14					$	(0.24)		(1.8)		%
Asset quality
Non-performing loans			$	172.3		$	69.2					$	103.1		149.0		%
Total non-performing loans to total loans			0.75		%	0.37		%				NM			0.38		%
Net charge-offs to average total loans			0.18		%	0.13		%				NM			0.05		%
(1) CET1 capital ratio as of December 31, 2025 is a preliminary estimate.
*Non-GAAP Financial Measure.

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On November 1, 2025, the Company completed its merger ("the merger") with HarborOne Bancorp

("HarborOne"), the holding company of HarborOne Bank, and therefore the fourth quarter financial

results reflect the partial quarter impact of the merger. The merger added approximately $4.5 billion in

loans, and $4.3 billion in deposits, each at fair value.

"We are pleased with our performance in 2025," said Denis Sheahan, Chief Executive Officer. "Full year results were highlighted by a 62% increase in operating net income, strong organic loan growth, and record levels of Wealth assets under management. On a full year operating basis, return on average assets of 1.21%, return on average tangible common equity of 12.7%, and the efficiency ratio of 51.7%, improved significantly from the prior year. Eastern is well-positioned for 2026 and beyond and we look forward to executing on the meaningful opportunities in front of us - driving organic growth in both our banking and fee-based businesses, returning capital to shareholders, and demonstrating the enhanced earnings power of the company to deliver top quartile financial returns. We believe this approach will create meaningful value for shareholders. Finally, I want to welcome our new colleagues from HarborOne and thank all our employees for another successful year."

David Rosato, Chief Financial Officer, added, "Our fourth quarter results marked a strong finish to the year. Operating net income of $94.7 million increased 28% linked quarter and generated an operating return on average tangible common equity of 13.8%. The quarter benefited from the addition of HarborOne and solid organic loan growth. We are focused on merger integration and ensuring a smooth transition for customers and employees while capturing projected cost savings and other long-term benefits of the transaction. Importantly, we are on track to achieve the merger-related financial targets set forth at the time of our announcement last year. In addition, our commitment to returning capital was evident in the quarter. We repurchased 3.1 million shares of common stock for $55.4 million, or 26% of the share repurchase program authorized in October."

NET INTEREST INCOME

Net interest income was $237.4 million, an increase of $37.2 million from the third quarter.

•Net interest income included net discount accretion of $22.6 million, compared to $10.0 million in the prior quarter. Net discount accretion contributed 34 basis points to the net interest margin on an FTE basis, compared to 17 basis points in the prior quarter.

•The net interest margin on an FTE basis increased 14 basis points to 3.61%, due to higher interest-earning asset yields.

•The yield on total interest-earning assets was up 21 basis points to 5.08%, primarily due to an increase in loan yields driven by higher net discount accretion.

•The cost of total interest-bearing liabilities increased 4 basis points to 2.15% due to modestly higher deposit costs.

NONINTEREST INCOME

Noninterest income was $46.1 million, an increase of $4.8 million. The current quarter included a non-operating loss of $0.7 million, compared to non-operating income of $1.5 million in the prior quarter.

Operating noninterest income was $46.7 million, an increase of $7.0 million, mostly due to the addition of HarborOne and driven primarily by the following:

•Mortgage banking income increased $2.9 million to $3.0 million.

•Card income increased $1.8 million to $5.9 million.

•Service charges on deposit accounts increased $1.4 million to $9.9 million.

•Investment advisory fees increased $1.1 million to $18.6 million due to higher Wealth assets under management.

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•Interest rate swap income increased $0.5 million to $1.4 million.

These increases in operating noninterest income were partially offset by a $2.2 million decrease in income from investments held in rabbi trust accounts. This lower income was partially offset by a $0.7 million decrease in rabbi trust benefit costs reported in noninterest expense.

NONINTEREST EXPENSE

Noninterest expense was $189.4 million, an increase of $49.0 million from the third quarter primarily driven by higher operating noninterest expense and merger-related costs.

Non-operating noninterest expense of $33.4 million increased $30.2 million, due to $26.7 million in higher merger-related costs and a $3.5 million lease impairment.

Operating noninterest expense, was $156.1 million, an increase of $18.9 million, primarily due to the addition of HarborOne and largely driven by the following:

•Salaries and employee benefits increased $7.5 million to $91.5 million.

•Amortization of intangible assets increased $2.9 million to $10.8 million.

•Technology and data processing increased $2.7 million to $22.4 million.

•Professional services increased $2.6 million to $5.6 million.

BALANCE SHEET

Total assets were $30.6 billion at December 31, 2025, an increase of $5.1 billion from September 30, 2025.

•Loans totaled $23.6 billion, an increase of $4.7 billion. The merger added $4.5 billion in loans. Excluding the merger impact, the loan portfolio grew $255 million, or 1.4%, primarily driven by continued strong commercial lending results.

•Securities were $4.4 billion, an increase of $100.4 million. Acquired securities totaling $298 million were sold following the completion of the merger.

•Cash and equivalents were $0.3 billion, a decrease of $93.5 million.

Deposits totaled $25.5 billion, an increase of $4.4 billion. The merger added $4.3 billion in deposits. Excluding the merger impact, deposits increased by $20 million, or less than 1%.

Book value per share and tangible book value per share ended the quarter at $18.42 and $12.90, respectively.

Please refer to Appendix D for a roll-forward of tangible shareholders' equity.

ASSET QUALITY

Non-performing loans ("NPLs") totaled $172.3 million, or 0.75% of total loans, compared to $69.2 million, or 0.37% of total loans, at September 30, 2025. The increase in NPLs was due primarily to loans acquired from HarborOne that were thoroughly assessed and adequately reserved.

Total net charge-offs were $9.8 million, or 0.18% of average total loans, compared to $6.2 million, or 0.13% in the prior quarter.

Provision for loan losses totaled $4.9 million compared to $7.1 million in the prior quarter.

The allowance for loan losses was $331.8 million at December 31, 2025, or 1.44% of total loans, compared to $233.0 million, or 1.26% of total loans, at September 30, 2025.

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DIVIDENDS AND SHARE REPURCHASES

The Company's Board of Directors declared a quarterly cash dividend of $0.13 per common share. The dividend will be payable on March 20, 2026 to shareholders of record as of the close of business on March 6, 2026.

The Company repurchased 3.1 million shares of common stock during the fourth quarter at a weighted average price of $17.79, for an aggregate purchase price of $55.4 million. As of year-end, 8.8 million shares remain in the current share repurchase program which expires October 31, 2026.

CONFERENCE CALL AND PRESENTATION INFORMATION

A conference call and webcast covering Eastern's fourth quarter 2025 earnings will be held on Friday, January 23, 2026 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (800) 549-8228 from within the U.S. and reference conference ID 51296. The conference call will be simultaneously webcast. Participants may join the webcast on the Company's Investor Relations website at investor.easternbank.com. A presentation providing additional information for the quarter is also available at investor.easternbank.com. A replay of the webcast will be available on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the holding company for Eastern Bank. Founded in 1818, Eastern Bank is Greater Boston's leading local bank with more than 125 branch locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of December 31, 2025, Eastern had approximately $30.6 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management and Private Banking Divisions, which include the largest bank-owned independent investment adviser in Massachusetts with $9.6 billion in assets under management. Eastern takes pride in its advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. For investor information, visit investor.easternbank.com.

CONTACT

Investor Contact

Andrew Hersom

Eastern Bankshares, Inc.

[email protected]

617-897-1177

Media Contact

Andrea Goodman

Eastern Bank

[email protected]

781-598-7847

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NON-GAAP FINANCIAL MEASURES

*Denotes a non-GAAP financial measure used in the press release.

A non-GAAP financial measure is defined as a numerical measure of the Company's historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") in the Company's statement of income, balance sheet or statement of cash flows (or equivalent statements).

The Company presents non-GAAP financial measures, which management uses to evaluate the Company's performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company's core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures.

There are items in the Company's financial statements that impact its financial results, but which management believes are unrelated to the Company's core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders' equity, operating return on average tangible shareholders' equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company's core business and underlying trends. Such items that management does not consider to be core to the Company's business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) other real estate owned ("OREO") gains (losses), (v) merger and acquisition expenses, (vi) certain discrete tax items. Return on average tangible shareholders' equity, operating return on average tangible shareholders' equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets.

Management also presents tangible assets, tangible shareholders' equity, average tangible shareholders' equity, tangible book value per share, the ratio of tangible shareholders' equity to tangible assets, return on average tangible shareholders' equity, and operating return on average shareholders' equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets and in the case of tangible net income (loss), return on average tangible shareholders' equity and operating return on average tangible shareholders' equity excludes the after-tax impact of amortization of intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company's performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company includes the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.

These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company's cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular period. In addition, management's methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company's reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-D for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.

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