Eastern Bankshares, Inc. Q1 FY26 Results

Our first quarter performance was solid and in line with our expectations, with results reflecting the impact of typical seasonal trends. Operating income increased 31% from a year ago and generated an operating return on average tangible common equity of 12.8%. Loan balances were down modestly as expected. However, customer sentiment remains positive and commercial pipelines ended the quarter at a record high level, giving us confidence in strong originations for the coming quarters. Our commercial lending team is energized following a record year of originations, and that momentum is carrying into 2026. Wealth management continues to capitalize on the deepening alignment with our banking businesses, elevating client engagement and referral activity. Wealth assets under management increased to a record $9.8 billion due to positive net flows, partially offset by weaker equity markets. The deposit environment remains competitive, and we are taking targeted actions to ensure our offerings are appropriately positioned to defend and grow share. While these efforts will result in some upward pressure on costs, we remain focused on balancing growth of our high quality deposit base with that of the margin. Overall, we believe Eastern is well-positioned to deliver meaningful value to shareholders by executing on organic growth opportunities and a consistent return of capital.

The HarborOne core system conversion was successfully completed in February, and we remain on track to capture the merger’s projected cost savings. With this milestone behind us, we are excited to realize the full potential of the combined franchise. Asset quality continues to be excellent with net charge-offs to average total loans of 17 basis points, reflecting the strength of the portfolio. We are particularly pleased with the reduction in non-performing loans since year-end, a result of our proactive risk management approach and strong execution of our Managed Assets Group. Given the Company’s profitability, we continue to generate excess capital and remain committed to returning capital to shareholders, as demonstrated by $75.1 million of share repurchases during the quarter. As of quarter-end, 59% of the current authorization is complete and we expect to finish the program around mid-year; at which point, we anticipate executing another share repurchase authorization subject to regulatory approval. Additionally, we announced a 15% dividend increase today, marking the sixth consecutive year of dividend growth since becoming a public company.