Eastern Bankshares Q4 Earnings Call Highlights

Eastern Bankshares (NASDAQ:EBC) executives utilized the company’s fourth-quarter 2025 net telephone to item a stronger year-over-year net profile, coagulated integrated indebtedness growth, grounds wealthiness assets, and an intensified absorption connected superior returns and integrated enlargement pursuing the closing of its HarborOne merger.

Executive Chair Bob Rivers called 2025 “a terrific year,” citing a 62% summation successful operating earnings, beardown integrated indebtedness growth, and grounds wealthiness assets nether management. Rivers said the HarborOne merger, which closed connected Nov. 1, strengthened Eastern’s beingness successful markets southbound of Boston and provided introduction into Rhode Island. He besides characterized the combined institution arsenic having $31 cardinal successful assets with a concentrated footprint, and said Eastern is the largest autarkic slope headquartered successful Massachusetts with the fourth-largest deposit marketplace stock successful Greater Boston.

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Rivers and CEO Denis Sheahan repeatedly addressed capitalist questions astir acquisitions by stating the institution is not pursuing M&A. Rivers said Eastern volition not prosecute acquisitions “for the foreseeable future,” portion Sheahan added the institution volition allocate superior toward integrated maturation efforts and returning excess superior to shareholders portion maintaining due superior levels.

Sheahan said Eastern sees opportunities to instrumentality stock successful commercialized banking and wealthiness absorption and to amended deposit growth, with endowment investments cited arsenic a driver. He besides said Eastern’s commercialized level offers large-bank capabilities with section decision-making and “certainty of execution.”

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CFO David Rosato said Eastern reported fourth-quarter nett income of $99.5 million, oregon $0.46 per diluted share. Results included a GAAP taxation payment related to losses from an concern portfolio repositioning completed successful the archetypal 4th that accrued done 2025, arsenic good arsenic non-operating merger-related costs successful the 4th quarter. Operating net were $94.7 million, up 28% from the anterior quarter, and operating EPS was $0.44, up 19%.

Rosato highlighted improvements successful profitability and ratio metrics, including operating instrumentality connected assets of 1.30% (up 24 ground points twelvemonth implicit year) and operating instrumentality connected mean tangible communal equity of 13.8% (up from 11.3%). The operating ratio ratio improved to 50.1% from much than 57% a twelvemonth earlier, which absorption attributed to stronger net show and equilibrium expanse management.