Eastern Bankshares, Inc. · NASDAQ:EBC
Eastern Bankshares — Q2 2025 Earnings Presentation
19 slides from Eastern Bankshares's earnings presentation, Jul 25, 2025
Slide 1: Q2 Earnings Presentation
Q2 Earnings Presentation July 24, 2025
Slide 2: Q2 2025 financial highlights
Q2 2025 financial highlights Key Metrics Highlights • Net income of $100.2 million, or $0.50 per diluted share, included GAAP tax benefit $100.2 million related to losses from investment portfolio repositioning completed in the first quarter Net income • Operating net income of $81.7 million, or $0.
Slide 3: Income statement
Income statement $ in millions, except per share amounts Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income $ 202.0 $ 188.9 $ 179.2 $ 169.9 $ 128.6 • Net income included GAAP tax benefit related to losses from Noninterest income (loss) 42.9 (236.1) 37.3 33.5 25.3 investment portfolio reposi
Slide 4: Financial metrics
Financial metrics Operating EPS Operating efficiency ratio1 63.6% $0.41 59.7% 57.3% $0.34 $0.34 53.7% 50.8% $0.26 0.23 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Operating ROA Operating ROATCE1 1.30% 13.6% 1.09% 11.3% 11.7% 1.06% 8.7% 0.82% 0.70% 6.4% Q2 2024 Q3
Slide 5: Net interest margin
Net interest margin Earning assets QoQ changes in FTE net interest income*2 Q2 2025 Q1 2025 Change $12.7 $1.1 $0.2 $206.8 $193.5 3.59% Avg. Balance Yield1 Avg. Balance Yield1 Avg. Balance Yield1 $(0.7) 3.38% Commercial loans $ 12,533 5.59 % $ 12,305 5.40 % $ 228 0.19 % Residential loans 3,889 4.46 %
Slide 6: Noninterest income
Noninterest income Q2 2025 Q1 2025 Q2 2024 QoQ YoY • Noninterest income was $42.9 million compared to noninterest loss of Investment advisory fees $ 17.3 $ 16.4 $ 6.7 $ 0.8 $ 10.6 $236.1 million in the prior quarter. Service charges on deposit accounts 8.2 8.3 7.9 (0.1) 0.3 • Q1 2025 included pre-ta
Slide 7: Wealth management
Wealth management Assets under management (AUM) $8,353 $8,309 $8,442 $8,718 • AUM increased to a record high of $8.7 billion • Fees increased $0.8 million or 5% from Q1 2025 $3,416 • AUM fees as a percentage of AUM: 75 bps Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Fees AUM asset allocation $18.0 $17.3
Slide 8: Noninterest expense
Noninterest expense • Noninterest expense increased $6.8 million linked quarter $159.8 $132.2 $137.5 $134.0 $130.1 $130.1 $137.0 $134.4 $109.9 $106.2 • Q2 2025 included $2.6 million of merger-related costs Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 • Operating noninterest expense increased Noninterest
Slide 9: Deposits
Deposits • Deposits increased $424 million, or 8% annualized linked- Period-end deposit balances quarter, primarily driven by higher municipal deposits $21.2 $21.3 $20.8 $21.2 $17.6 • Total deposit costs were consistent with the first quarter • Interest-bearing deposit costs decreased 1 basis point
Slide 10: Loan portfolio
Loan portfolio Loan trends Commercial loan composition $ 18,204 $ 18,590 $ 18,064 $ 18,079 $1,634 $1,657 $1,665 $1,723 $ 14,146 $4,081 $4,064 $4,039 $4,016 $1,503 11% $2,563 4% 28% $12,350 $12,359 $12,501 $12,850 $10,080 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total commercial Residential real estat
Slide 11: Securities portfolio
Securities portfolio Portfolio trends1 Investment composition as of June 30, 20251 $5.3 $5.2 $5.2 $4.9 $4.8 5% 1% $0.4 $0.4 $0.4 2% $0.4 $0.5 $4.9 $4.8 $4.8 $4.4 $4.3 28% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 64% AFS securities HTM securities • High quality portfolio with 94% in US Agency securiti
Slide 12: Capital
Capital1 Capital ratios Capital metrics 6/30/2025 3/31/2025 6/30/2024 • Capital ratios increased linked quarter. Tier 1 leverage ratio 12.1% 11.7% 14.2% CET1 ratio and TCE ratio of 14.4% and Common equity tier 1 ("CET1") capital ratio 14.4% 14.2% 18.6% 10.8%, respectively Tier 1 capital ratio 14.4%
Slide 13: Asset quality
Asset quality Non-performing loans • Non-performing loans of $55 million, or 0.30% of 0.70% 0.76% 0.51% total loans, decreased $37 million linked quarter 0.28% 0.30% • Commercial: $37 million $79 $48 • Residential: $10 million $125 $27 • Consumer: $7 million $40 $45 $44 $28 • Allowance for loan loss
Slide 14: CRE exposure
CRE exposure1 Composition • CRE portfolio of $7.3 billion, or 39% of total loans % of total Avg. loan % in MA/ Balance CRE balance NH NPL% • Non-owner occupied CRE to total risk-based capital Multi-family $ 2,590 36 % $ 4.7 88 % — % ratio2 of 213% Retail 919 13 % 3.0 87 % 1.0 % Office 955 13 % 3.6 9
Slide 15: CRE investor office exposure
CRE investor office exposure1 Maturity schedule 3Q25 4Q25 1Q26 2Q26 • CRE investor office loans: $828 million, or 4% of Accruing $ 25 $ 10 $ 7 $ 48 total loans Non-accruing — — — — • Includes company's lab/life science Total $ 25 $ 10 $ 7 $ 48 exposure: $99 million or <1% of total loans. All loans a
Slide 16: Updated outlook for 2025
Updated outlook for 2025 Full Year 2025 Outlook July 2025 January 2025 Loan growth (period-end) +3% - 5% +2% - 4% '0% - 1% '+1% - 2% Deposit growth (period-end) (with favorable mix shift) (with favorable mix shift) Net interest income $810 - $820 million1 $815 - $840 million2 Net interest margin (FT
Slide 17: Non-GAAP financial measures (1)
Non-GAAP financial measures (1) *Denotes a non-GAAP financial measure used in the document. In this presentation, the Company may refer to some non-GAAP financial measures. For a reconciliation of these measures to the most comparable GAAP measures, refer to the press release that the Company has ma
Slide 18: Non-GAAP financial measures (2)
Non-GAAP financial measures (2) 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
Slide 19: Forward-looking statements
Forward-looking statements This document contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future e