Eastern Bankshares : 2026 Q2 Earnings Call Presentation

About this update from Eastern Bankshares, Inc.

&Eastern Bankshares, Inc. Q2 Earnings Presentation July 23, 2026 Q2 2026 highlights Highlights Key Metrics Net income $105.2 million Operating net income* $106.5 million Diluted EPS Diluted operating EPS* $0.48 $0.49 3.66% 1.47% NIM (FTE)* Total deposit cost NPLs / total loans NCOs / avg. loans 0.47% 0.17% Dividend declared $0.15 per share BV/Share TBV/Share* $18.72 $13.13 *Non-GAAP Financial Measure. Results reflect Company's enhanced earnings power Operating income increased 20% linked quarter and generated an operating return on average tangible common equity of 15.3% Net interest margin (FTE) expanded 3 basis points to 3.66%, due to higher asset yields Positive operating leverage, driven by growth in both net interest income and fee revenues combined with lower expenses, resulting in an operating efficiency ratio of 49.0% Annualized growth in tangible book value per share of 7% Strong organic growth across banking and fee businesses Period-end loans grew 1.4% linked quarter, driven by strong C&I lending results Deposit balance ended the quarter up 3.2%, due to seasonal municipal inflows and broad-based growth across business lines Wealth assets increased to another record high of $11.5 billion, including $10.6 billion of assets under management Excellent asset quality Non-performing loans decreased $28.3 million to $109.4 million, or 0.47% of total loans Robust reserves: allowance for loan losses of $325.4 million, or 1.40% of total loans Significant capital return Total capital returned to shareholders of $105.8 million, including $72.7 million in share repurchases Announced 5% repurchase authorization 2 Income statement $ in millions, except per share amounts Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Net interest income $ 251.9 $ 244.7 $ 237.4 $ 200.2 $ 202.0 Noninterest income 57.6 43.6 46.1 41.3 42.9 Total revenue 309.5 288.3 283.5 241.5 244.9 Noninterest expense 167.9 198.6 189.4 140.4 137.0 Pre-tax, pre-provision income 141.6 89.6 94.1 101.1 107.9 Provision for allowance for loan losses 6.8 5.8 4.9 7.1 7.6 Pre-tax income 134.8 83.8 89.2 94.0 100.3 Income tax expense (benefit) 29.6 18.5 (10.3) (12.1) 0.1 Net income $ 105.2 $ 65.3 $ 99.5 $ 106.1 $ 100.2 Operating net income* $ 106.5 $ 88.6 $ 94.7 $ 74.1 $ 81.7 EPS $ 0.48 $ 0.29 $ 0.46 $ 0.53 $ 0.50 Operating EPS* $ 0.49 $ 0.40 $ 0.44 $ 0.37 $ 0.41 ROA 1.37 % 0.86 % 1.36 % 1.66 % 1.60 % Operating ROA* 1.38 % 1.17 % 1.30 % 1.16 % 1.30 % ROATCE* 1 15.2 % 9.8 % 14.4 % 16.4 % 16.4 % Operating ROATCE* 1 15.3 % 12.8 % 13.8 % 11.7 % 13.6 % Efficiency ratio 54.3 % 68.9 % 66.8 % 58.2 % 55.9 % Operating efficiency ratio* 1 49.0 % 52.8 % 50.1 % 52.8 % 50.8 % Operating net income increased 20% linked quarter and 30% from a year ago, reflecting the enhanced earnings power of the Company Net interest income included net discount accretion of $19.7 million, compared to $19.5 million in Q1 2026 Noninterest income included a non-operating loss of $0.3 million. On an operating basis, noninterest income was $57.9 million, an increase of $12.8 million or 28% linked quarter Noninterest expense included $1.6 million of non-operating costs. On an operating basis, noninterest expense was $166.4 million, a decrease of $1.5 million or 1% linked quarter *Non-GAAP Financial Measure. 1 Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income. 3 Financial metrics              Operating         EPS                               $0.41 $0.44 $0.37 $0.40 $0.49 Operating efficiency ratio 1 52.8% 52.8% 50.8% 50.1% 49.0% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026            Operating         ROA                               1.30% 1.30% 1.16% 1.17% 1.38% Operating ROATCE 1 15.3% 13.6% 13.8% 12.8% 11.7% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1 Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income. 4 Net interest margin Earning assets                                                                                 QoQ changes in FTE net interest income*         Q2 2026 Q1 2026 Avg. Balance Yield 1 Avg. Balance Yield 1 Commercial loans $ 15,856 5.48 % $ 15,846 5.48 % Residential loans 5,189 4.93 % 5,228 4.71 % Consumer loans 2,011 6.58 % 1,981 6.55 % Total loans 23,057 5.45 % 23,055 5.40 % Securities 5,043 3.25 % 4,827 3.18 % Cash 200 3.55 % 126 3.25 % Total I.E. assets 28,300 5.05 % 28,008 5.01 % Change Avg. Balance Yield 1 $ 10 — % (39) 0.22 % 30 0.03 % 2 0.05 % 216 0.07 % 74 0.30 % $250.8 $6.6 $3.9 3.63% 3.66% $(2.6) $(0.5) $258.2 292 0.04 % Q1 2026 Loans Inv. & cash Deposits Borrowings Q2 2026 Funding sources                                                                             FTE net interest income and margin trend     Q2 2026 Q1 2026 Avg. Balance Cost Avg. Balance Cost Savings $ 2,124 0.39 % $ 2,056 0.35 % Interest checking 4,677 0.86 % 4,669 0.84 % Money market 8,039 2.24 % 7,861 2.15 % Time deposits 4,185 3.46 % 4,278 3.53 % Total I.B. deposits 19,025 1.96 % 18,864 1.94 % Borrowings 535 3.70 % 488 3.71 % Total I.B. liab. 19,560 2.01 % 19,352 1.99 % DDA 6,435 6,330 Total deposits 25,460 1.47 % 25,195 1.46 % Change Avg. Balance Cost $ 68 0.04 % 8 0.02 % 178 0.09 % (93) (0.07)% 161 0.02 % 47 (0.01)% $206.8 $205.4 $243.4 $250.8 $258.2 3.59% 3.47% 3.61% 3.63% 3.66% $ in millions. *Non-GAAP Financial Measure. 1 Presented on a fully tax equivalent basis. 208 0.02 % 105 265 0.01 % Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 NII - FTE NIM - FTE 5 Noninterest income OEastern Bnnksluares, Inc. Q2 2026 Q1 2026 Q2 2025 QoQ YoY Investment advisory fees $ 19.7 $ 18.3 $ 17.3 $ 1.4 $ 2.4 Service charges on deposit accounts 10.0 9.9 8.2 0.1 1.8 Card income 6.0 5.8 4.2 0.2 1.8 Interest rate swap income 2.0 1.0 1.0 1.0 1.0 Operating noninterest income increased $12.8 million or 28% linked quarter primarily due to the following: Income from investments for employee retirement benefits increased $8.9 million due to stronger equity market performance Income (loss) from investments for employee retirement benefits 7.0 (1.9) 5.7 8.9 1.2 • Investment advisory fees Mortgage banking income (loss) 3.3 2.9 (0.1) 0.5 3.4 increased $1.4 million primarily due to higher wealth assets Miscellaneous income and fees 9.8 9.0 5.9 0.7 3.9 Interest rate swap incom e increased $1.0 million driven by Non-operating (loss) income (0.3) (1.5) 0.6 1.2 (0.9) Total noninterest income $ 57.6 $ 43.6 $ 42.9 $ 14.0 $ 14.7 • Total operating noninterest income* $ 57.9 $ 45.1 $ 42.2 $ 12.8 $ 15.7 higher loan volumes Miscellaneous income and fees increased $0.7 million primarily from a higher gain on sale of commercial loans $ in millions. *Non-GAAP Financial Measure. 6 Wealth management   Assets  under  management  (AUM)             $9,608 $9,785 $9,233 $8,718 $10,616 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026                                      Fees                                             Continued              momentum                         Wealth assets increased to a record high of $11.5 billion, including approximately $10.6 billion of AUM Deepening alignment between Wealth and Banking businesses, driving more new business opportunities Fees increased approximately 8% linked quarter due to higher assets and seasonal tax preparation fees; AUM fees as a percentage of AUM : ~70 bps        AUM          asset          allocation                         $18.6 $18.3 $17.3 $17.6 44% 41% 41% 40% 34% $19.7 6% 3% 29% 62% $ in millions. Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Fees Fees as a % of total operating noninterest income Equity Fixed Income Cash Other 7 $156.1 $198.6 $167.9 $167.9 $166.4 $137.0 $134.4 $140.4 $137.2 $189.4 Noninterest expense Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Noninterest expense Operating noninterest expense Total noninterest expense decreased $30.7 million, or 15% linked quarter due to lower non-operating and operating expenses Non-operating expense decreased $29.2 million, largely driven by lower merger-related costs Q2 2026 Q1 2026 Q2 2025 QoQ YoY Salaries & employee benefits $ 97.0 $ 102.2 $ 80.7 $ (5.2) $ 16.3 Technology & data processing 23.7 23.8 18.4 (0.1) 5.3 Occupancy & equipment 13.2 14.1 11.2 (0.9) 2.0 Professional services 5.7 3.4 3.0 2.3 2.7 FDIC Insurance 3.7 3.4 3.8 0.3 (0.1) Marketing expenses 3.1 2.7 2.4 0.4 0.7 Amortization of intangible assets 11.6 11.6 7.8 — 3.8 Other operating expense 8.2 6.6 7.0 1.6 1.2 Non-operating expense 1.6 30.8 2.6 (29.2) (1.0) Total noninterest expense $ 167.9 $ 198.6 $ 137.0 $ (30.7) $ 30.9 Total operating noninterest expense* $ 166.4 $ 167.9 $ 134.4 $ (1.5) $ 32.0 Operating expense decreased $1.5 million, or 1% linked quarter Decreases in salaries & benefits of $5.2 million and occupancy & equipment of $0.9 million, primarily reflect cost synergies achieved following the HarborOne core system conversion Increase in professional services of $2.3 million, primarily related to shareholder advisory fees Increase in other operating expense of $1.6 million, primarily driven by a higher provision for unfunded commitments due to growth in off balance sheet commitments 8 $ in millions. *Non-GAAP Financial Measure. Deposits        Period-end                  balances                                   $25,471 $25,105 $25,919 $21,221 $21,117 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026    High   quality,   low   cost   portfolio                           Balances increased $814 million, or 3.2%, linked quarter due to seasonal municipal inflows and broad-based growth across business lines Targeted actions to appropriately position offerings to defend and grow share resulted in upward pressure on deposit costs Total cost of deposits increased 1 basis point to 1.47% While the deposit environment remains competitive, we are committed to balancing growth with margin performance Cost of deposits                                                                                                                                       Deposit composition                                     Interest-bearing deposit cost Total deposit cost 2.03% 2.11% 2.13% 1.94% 1.96% 1.48% 1.55% 1.59% 1.46% 1.47% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $ in millions. CD Savings MMDA Checking 15% 15% 18% 16% 17% 8% 7% 8% 9% 8% 28% 30% 31% 31% 32% 49% 47% 43% 44% 43% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 9 Loans                Period-end          balances                                   $23,574 $23,388 $23,713 $2,034   $2,024   $2,083   $5,516 $5,467 $5,442 driven by broad-based activity Period-end loans increased $325 million, or 1.4%, linked quarter C&I continued to grow as balances were up $317 million, Total commercial Residential real estate Total Consumer      Diversified,        high-performing        portfolio                   $18,590 $18,829 $1,723 $4,016 $1,767 $4,011 $16,025 $16,188 $12,850 $13,051 $15,897 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026            Total              loan              yield                                         Consumer increased $59 million, due to higher HELOC balances CRE was down $85 million, primarily due to payoffs Commercial loan pipelines finished June at a record quarter-end level of nearly $1 billion        Commercial     loan     composition                           10% 4% 27% 59% 5.45% 5.55% 5.35% 5.40% 5.45% Commercial and industrial Commercial real estate Commercial construction Business banking Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $ in millions. Charts may not foot due to rounding 10 Securities Period-end balances 1  High quality portfolio                                   AFS securities HTM securities $764 $499 $514 $600 $713 $4,284 $4,155 $4,143 $4,201 $4,400 $4,783 $4,669 $4,743 $4,914 $5,165 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 93% in U.S. agency securities and treasury bonds Securities yield of 3.25% in Q2 2026, up 7 basis points from Q1 2026, supported by recent purchases AFS unrealized loss was $286 million after tax, compared to $277 million at March 31, 2026 Securities yield 2 Portfolio composition 1 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 29% 6% 1% 1% 63% Agency RMBS Agency CMBS Treasuries Munis Corporate Debt 11 $ in millions. 1 Includes both AFS and HTM portfolios at amortized cost. 2 Presented on a fully tax equivalent basis. 3.25% 3.18% 3.02% 3.03% 3.04% Capital 1 OEastern Bnnksluares, Inc. Metrics 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Tier 1 leverage ratio 10.9% 11.0% 11.7% 12.3% 12.1% Common equity tier 1 ratio 13.0% 13.2% 13.2% 14.7% 14.4% Tier 1 capital ratio 13.0% 13.2% 13.2% 14.7% 14.4% Total risk-based capital ratio 14.0% 14.2% 14.3% 15.8% 15.5% Tangible common equity ratio* 10.1% 10.2% 10.4% 11.4% 10.8% Tangible book value per share* $13.13 $12.90 $12.90 $13.14 $12.53 Strong capital position Provides significant support for capital deployment strategies Committed to returning capital to shareholders Returned $105.8 million in capital during Q2 2026 $72.7 million in share repurchases & $33.1 million in cash dividends Announced 5% repurchase program authorization and declared quarterly cash dividend of $0.15 payable on September 22, 2026 *Non-GAAP Financial Measure. 1 Regulatory capital ratios as of June 30, 2026 are preliminary estimates. Rightsizing capital Capital deployment strategies: organic growth within existing footprint, consistent share repurchases, and prudently grow quarterly dividend Managing towards peer median CET1 ratio (~12.0%) Driven by a consistent return of capital through share repurchases and quarterly cash dividends 12 Asset quality Non-performing loans 1      Asset        quality        remains        strong                 0.30% 0.37% 0.75% 0.60% 0.47% Non-performing loans improved, as expected, for second consecutive quarter following HarborOne merger $172 $94 $55 $69 $138 $52 $78 $86 $109 Commercial: $80.8 million $44 $65 Residential: $21.9 million Consumer: $6.6 million Provision for loan losses: $6.8 million vs. $5.8 million in Q1 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Eastern Legacy HarborOne NPL (%)              Net                    charge-offs                                   Robust reserves: allowance for loan losses of $325.4 million or 1.40% of total loans Commercial criticized & classified loans 1 5.00% 5.08% 4.92% 3.82% $793 $801 $791 0.13% 0.18% 0.17% 0.17% —% 3.60% $321 $370 $425 $10 $6 $3 $7 $10 $10 $2 $8 $472 $366 $431 $459 $495 $9 $1 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Eastern Legacy HarborOne NCOs / Avg. loans (%) $ in millions. 1 Amortized cost basis Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Eastern Legacy HarborOne Criticized & Classified (%) 13 Updated 2026 outlook OEastern Bnnksluares, Inc. Full Year 2026 Outlook July 2026 January 2026 Loan growth (period-end) +3% - 4% +3% - 5% Deposit growth (period-end) +2% - 3% +1% - 2% Net interest income $1.005 billion - $1.020 billion $1.020 billion - $1.050 billion Net interest margin (FTE) 3.60% - 3.65% 3.65% - 3.75% Provision $25 million - $30 million $30 million - $40 million Noninterest income (operating) $195 million - $200 million $190 million - $200 million Noninterest expense (operating) $655 million - $665 million $655 million - $675 million Tax rate (operating) No change Approximately 23% Capital No change Manage CET1 ratio towards 12% 14 Appendix flDEnsterr› Banl Inc. CRE exposure 1                                        Composition                                         Balance % of total Avg. loan CRE balance NPL% Multi-family $ 3,190 34 % $ 5.6 0.1 % Retail 1,257 13 % 3.2 — % Office 1,143 12 % 3.7 0.6 % Industrial/Warehouse 1,183 13 % 3.9 4.7 % Affordable housing 542 6 % 3.3 1.1 % Education 371 4 % 5.2 — % Self storage 265 3 % 5.4 — % All others 1,439 15 % 3.3 0.1 % Total CRE $ 9,391 100 % $ 4.1 0.8 %    Non-performing          CRE            loans                             1.3% 1.1% CRE portfolio of $9.4 billion , or 40% of total loans Non-owner occupied CRE to total risk-based capital ratio 2 of 243% Composed of diversified property types Multi-family 3 is the largest segment, representing 34% of total CRE and the Eastern legacy portfolio has not had any charge-offs in the past 10+ years Weighted average LTV at origination: low-to-mid 50% 97% of properties are in New England Criticized & classified 4 : $550 million or 5.9% of total CRE loans, compared to $547 million or 5.8% in prior quarter Eastern legacy HarborOne NPL (%) 0.4% 0.6% $121 0.8% Non-performing loans : $73 million, or 0.8% of total CRE loans, compared to $98 million, or 1.1% in prior quarter $98 $73 $75 $25 $44 $13 $23 $42 $60 $79 82% of loans mature in 2028 or later See slide 17 for CRE investor office exposure Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $ in millions. 1 CRE exposure excludes Construction and Business Banking except for the NOO CRE to total RBC ratio. 2 NOO CRE to total RBC ratio in Q2 2026 is estimated. 3 Excludes affordable housing loans. 4 Amortized cost basis 16 CRE investor office exposure 1 2Q26 3Q26 4Q26 1Q27              Maturity                      schedule                                       Accruing $ 36 $ 42 $ 61 $51 Non-accruing — — — — Total $ 36 $ 42 $ 61 $51      Risk    segment    and    location                               CRE investor office loans : $1.0 billion, or 4% of total loans Includes Company's lab/life science exposure : $99 million in balances or <1% of total loans . All loans accruing Weighted average LTV : 53% at origination 8% Lab/Life Science 10% Mixed Use 37% Medical Office 45% NH/RI/CT 13% Boston/ Cambridge 25% MA suburban 62% Maturities proactively managed : 8% in 2026, 17% in 2027, 15% in 2028, and 60% in 2029 or later 100% in New England and 75% in suburban areas Criticized or classified 3 : $150 million, or 14% of CRE investor office loans Average Criticized & Balance loan size Classified 3 NPL Specific reserve                                        Classification                                           5 938 Class A 2 $ 66 $ 22 $ 44 $ — $8 Adequately reserved : $55 million, or 5% of CRE investor office, including specific reserves of $31 million Class B/C 106 7 23 Thorough ongoing risk-based reviews on the office Total  $      1,004  $          5  $        150  $          7  $          31   portfolio $ in millions. 1 CRE investor office exposure excludes construction and Business Banking. 2 Class A defined as high-rise institutional quality buildings in Boston/Cambridge. 3 Amortized cost basis 17 Interest-earning assets repricing Loans (Amortized cost basis, gross of cash flow hedges) Floating Variable Fixed Within 3 months Months 4-6 Months 7-9 Months 10-12 Years 2-3 Years 4-5 Years 6-10 Beyond 10 Years Total Commercial $ 6,824 $ 2,522 $ 6,724 $ 7,332 $ 583 $ 491 $ 579 $ 2,788 $ 2,421 $ 1,658 $ 219 $ 16,070 Residential — 1,517 3,654 201 180 166 199 1,230 945 1,589 661 5,171 Consumer 1,680 — 360 1,733 17 16 16 112 83 58 5 2,040 Total loans % of loans Projected yield 1 Commercial Residential Consumer $ 8,504 $ 4,039 $ 10,738 $ 9,266 $ 780 $ 674 $ 794 $ 4,130 $ 3,449 $ 3,306 $ 884 $ 23,281 37% 17% 46% 40% 3% 3% 3% 18% 15% 14% 4% 5.75 % 4.88 % 5.19 % 5.13 % 5.28 % 5.18 % 4.16 % 4.32 % 5.33 % 5.41 % 5.20 % 5.20 % 5.04 % 4.55 % 4.85 % 4.55 % 4.28 % 4.67 % 6.60 % 7.90 % 7.93 % 7.94 % 7.05 % 6.63 % 5.92 % 4.62 % 6.63 % Total loans 5.90 % 5.02 % 5.26 % 5.17 % 5.11 % 5.13 % 4.38 % 4.29 % 5.30 % Securities (Amortized cost basis) Floating Variable Fixed Within 3 months Months 4-6 Months 7-9 Months 10-12 Years 2-3 Years 4-5 Years 6-10 Beyond 10 Years Total AFS — — $ 4,400 $ 104 $ 150 $ 117 $ 153 $ 856 $ 1,022 $ 1,369 $ 630 $ 4,400 HTM — — 764 7 7 7 6 165 85 157 331 764 Total Securities % of securities Projected yield 1 — — $ 5,164 $ 110 $ 157 $ 123 $ 159 $ 1,022 $ 1,107 $ 1,526 $ 960 $ 5,164 2% 3% 2% 3% 20% 21% 30% 19% 3.15 % 3.20 % 3.15 % 3.55 % 3.06 % 3.65 % 3.20 % 2.80 % 3.20 % 18 $ in millions. Rows & columns may not foot due to rounding. 1 Presented on a non-fully tax equivalent basis. Non-GAAP financial measures (1) OEastern Bnnksluares, Inc. *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 made available in connection with this presentation and the most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) as updated by our subsequent periodic filings with the SEC. See investor.easternbank.com. 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, (v) merger and acquisition expenses, (vi) certain discrete tax items, and (vii) expenses associated with staffing reorganization. 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. 19 Non-GAAP financial measures (2) OEastern Bnnksluares, Inc. 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 presentation 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. 20

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