BOSTON – Eastern Bankshares Inc. reported first-quarter profit of $65.3 million, compared with a $217.7 million loss in the same period a year ago, driven by higher net interest income and improved asset quality, alongside merger-related costs and higher operating expenses tied to integration.
Earnings per diluted share were 29 cents in the quarter, compared with a loss of $1.08 per share a year earlier. On an adjusted basis, earnings were 40 cents per share, compared with Wall Street expectations of 44 cents per share, according to Zacks Investment Research.
Revenue was $288.2 million, compared with $47.2 million in the same period a year earlier when results were impacted by significant non-operating items, and below analyst forecasts of about $299.6 million.
Net interest income rose to $244.7 million from $188.9 million a year earlier, driven by loan growth and a lower cost of funds.
The net interest margin – a key metric that measures how much the bank earns on loans relative to deposit costs – was 3.63%, compared with 3.38% in the year prior.
Noninterest income totaled $43.6 million, compared with a $236.1 million loss a year ago, which was affected by significant non-operating items. On an operating basis, noninterest income was slightly lower than a year earlier.
Noninterest expense increased to $198.6 million, up from $130.1 million a year earlier, reflecting the full impact of the HarborOne merger and higher operating costs.
Average loans rose to $23.5 billion, up 7.3% from $21.9 billion in the first quarter of 2025. Average deposits increased 3.8% to $25.2 billion from $24.3 billion a year earlier.
Credit quality improved, with nonperforming loans falling to $137.7 million, or 0.6% of total loans, compared with $172.3 million, or 0.75%, a year ago.
The bank repurchased 3.9 million shares for $75.1 million and increased its quarterly dividend by 15% during the quarter.
“We believe Eastern is well-positioned to deliver meaningful value to shareholders by executing on organic growth opportunities and a consistent return of capital,” said CEO Denis Sheahan.
Wealth management assets rose to a record $10.3 billion, including $9.8 billion under management, supported by positive net flows.
Last year, the Boston-based Eastern Bank – which operates about 125 locations in eastern Massachusetts, Connecticut and New Hampshire – completed its merger with HarborOne Bancorp Inc., parent of Brockton, Mass.-based HarborOne Bank, which had 30 full-service banking centers across Massachusetts and Rhode Island.
The $5.7 billion deal expanded Eastern Bank’s footprint into Rhode Island and boosted its presence in Greater Boston.
(Material from The Associated Press was used in this report.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
