$EBC

Eastern Bankshares, Inc.

CIK:0001810546|SEC Filings

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest and dividend income:
Interest and fees on loans	$ 308,481	$ 241,100	$ 610,233	$ 469,567
Taxable interest and dividends on securities	35,035	34,113	68,238	65,273
Non-taxable interest and dividends on securities	4,619	1,767	8,200	3,209
Interest on federal funds sold and other short-term investments	1,774	2,359	2,784	6,995
Total interest and dividend income	349,909	279,339	689,455	545,044
Interest expense:
Interest on deposits	93,039	76,706	183,474	152,704
Interest on borrowings	4,938	603	9,393	1,411
Total interest expense	97,977	77,309	192,867	154,115
Net interest income	251,932	202,030	496,588	390,929
Provision for allowance for loan losses	6,755	7,600	12,511	14,200
Net interest income after provision for allowance for loan losses	245,177	194,430	484,077	376,729
Noninterest income (loss):
Investment advisory fees	19,693	17,282	38,007	33,719
Service charges on deposit accounts	10,044	8,244	19,971	16,559
Card income	6,038	4,230	11,835	8,150
Interest rate swap income	1,996	978	2,979	1,466
Income from investments for employee retirement benefits	6,958	5,727	5,098	4,470
Mortgage banking income (loss)	3,343	(95)	6,208	(187)
Losses on sales of securities available for sale, net	0	0	0	(269,638)
Miscellaneous income and fees	9,784	5,867	18,819	12,206
Other non-operating (loss) income	(268)	618	(1,772)	(12)
Total noninterest income (loss)	57,588	42,851	101,145	(193,267)
Noninterest expense:
Salaries and employee benefits	97,030	80,696	199,181	160,555
Occupancy and equipment	13,246	11,230	27,357	21,847
Technology and data processing	23,740	18,395	47,583	36,410
Professional services	5,681	3,037	9,095	5,961
Marketing expenses	3,098	2,432	5,794	4,164
FDIC insurance	3,747	3,780	7,115	7,068
Amortization of intangible assets	11,643	7,807	23,287	15,615
Other operating expenses	8,213	7,002	14,849	12,879
Non-operating expenses	1,550	2,582	32,317	2,582
Total noninterest expense	167,948	136,961	366,578	267,081
Income (loss) before income tax expense	134,817	100,320	218,644	(83,619)
Income tax expense	29,604	87	48,169	33,814
Net income (loss)	$ 105,213	$ 100,233	$ 170,475	$ (117,433)
Basic earnings (loss) per share (in dollars per share)	$ 0.48	$ 0.50	$ 0.77	$ (0.59)
Diluted earnings (loss) per share (in dollars per share)	$ 0.48	$ 0.50	$ 0.77	$ (0.59)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income (loss)	$ 170,475	$ (117,433)
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Provision for allowance for loan losses	12,511	14,200
Depreciation and amortization	31,166	21,408
Accretion of deferred loan fees and premiums, net	(30,396)	(22,976)
Deferred income tax expense (benefit)	23,181	(41,224)
Accretion of investment security premiums and discounts, net	(4,563)	(3,177)
Right-of-use asset amortization	6,642	6,410
Share-based compensation	8,597	8,997
Increase in cash surrender value of bank-owned life insurance	(3,903)	(2,613)
Loss on sale of securities available for sale, net	0	269,638
Loss on lease right-of-use assets, net	2,949	0
Employee Stock Ownership Plan expense	5,070	4,066
Gain on sale of commercial loans held for investment	(5,163)	(477)
Other	1,652	441
Loans held for sale:
Proceeds from sales of loans held for sale	208,583	22,749
Loans originated for sale, net of repayments	(204,590)	(14,884)
(Gain) loss on sale of loans held for sale	(4,652)	99
Change in:
Prepaid pension expense	(3,840)	(2,644)
Other assets	(13,465)	86,493
Other liabilities	(55,129)	(57,875)
Net cash provided by operating activities	145,125	171,198
Investing activities
Proceeds from sales of securities available for sale	0	1,339,345
Proceeds from maturities and principal paydowns of securities available for sale	227,367	219,518
Purchases of securities available for sale	(480,202)	(1,330,852)
Proceeds from maturities and principal paydowns of securities held to maturity	14,058	12,455
Purchases of securities held to maturity	(168,714)	(84,737)
Proceeds from sale of Federal Home Loan Bank stock	74,100	20,971
Purchases of Federal Home Loan Bank stock	(81,512)	(21,360)
Contributions to low income housing tax credit investments	(12,478)	(23,053)
Contributions to other equity investments	(576)	(743)
Distributions from other equity investments	1,163	709
Net increase in outstanding loans	(199,004)	(531,945)
Purchased banking premises and equipment	(7,878)	(6,369)
Proceeds from life insurance policies	487	327
Net cash used in investing activities	(633,189)	(405,734)
Financing activities
Net increase (decrease) in demand, savings, interest checking, and money market investment deposit accounts	641,382	(9,980)
Net decrease in time deposits	(192,821)	(88,580)
Net increase (decrease) in borrowed funds	183,655	(17,991)
Payments for repurchase of common stock	(147,054)	(51,929)
Proceeds from the exercise of stock options	4,125	0
Dividends declared and paid to common shareholders	(61,929)	(50,358)
Net cash provided by (used in) financing activities	427,358	(218,838)
Net decrease in cash, cash equivalents, and restricted cash	(60,706)	(453,374)
Cash, cash equivalents, and restricted cash at beginning of period	316,869	1,006,880
Cash, cash equivalents, and restricted cash at end of period	256,163	553,506
Cash paid during the period for:
Interest paid on deposits and borrowings	205,580	155,976
Income taxes refunded, net	(11,453)	(675)
Non-cash activities
Capital commitments relating to low income housing tax credit projects	24,304	0
Net increase in operating lease right-of-use assets and operating lease liabilities relating to lease remeasurements/modifications	$ 6,044	$ 2,192

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 175,547	$ 126,103
Short-term investments	80,616	190,766
Cash and cash equivalents	256,163	316,869
Available for sale (amortized cost $4,400,498 and $4,143,163, respectively)	4,047,828	3,825,569
Held to maturity (fair value $740,991 and $575,974, respectively)	764,194	599,557
Total securities	4,812,022	4,425,126
Loans held for sale	42,649	22,761
Total loans	23,713,099	23,574,496
Allowance for loan losses	(325,354)	(331,841)
Unearned discounts and deferred fees, net	(431,698)	(489,431)
Net loans	22,956,047	22,753,224
Federal Home Loan Bank stock, at cost	21,250	13,838
Premises and equipment	118,196	119,984
Bank-owned life insurance	311,387	307,836
Goodwill and other intangibles, net	1,277,643	1,300,930
Deferred income taxes, net	293,659	309,963
Prepaid expenses	255,237	259,929
Other assets	797,702	756,396
Total assets	31,141,955	30,586,856
Deposits:
Demand	6,540,568	6,341,205
Interest checking accounts	4,706,543	4,727,219
Savings accounts	2,151,300	2,010,028
Money market investment	8,207,130	7,885,707
Certificates of deposit	4,313,771	4,506,592
Total deposits	25,919,312	25,470,751
Borrowed funds:
Interest rate swap collateral funds	34,181	15,321
Federal Home Loan Bank advances	364,412	199,617
Total borrowed funds	398,593	214,938
Other liabilities	540,836	560,614
Total liabilities	26,858,741	26,246,303
Commitments and contingencies (see Note 10)	0	0
Shareholders’ equity
Common shares, $0.01 par value, 1,000,000,000 shares authorized, 228,858,364 and 235,646,558 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	2,289	2,356
Additional paid in capital	2,482,957	2,621,029
Unallocated common shares held by the Employee Stock Ownership Plan	(120,272)	(122,796)
Retained earnings	2,176,037	2,067,327
Accumulated other comprehensive loss, net of tax	(257,797)	(227,363)
Total shareholders’ equity	4,283,214	4,340,553
Total liabilities and shareholders’ equity	$ 31,141,955	$ 30,586,856