BOSTON – Eastern Bankshares Inc., the parent company of Eastern Bank, reported a of $237 million for 2025, down roughly 40% from $395 million in 2024, as a significant first-quarter loss weighed on results despite stronger interest income and loan growth later in the year.
In its filing with the U.S. Securities and Exchange Commission on Thursday, the company said the decline reflected a $117 million mark-to-market loss in the first quarter, which partially offset gains from rising interest income and expansion of the bank’s loan portfolio in subsequent quarters.
Total revenue for the year increased to $1.07 billion, up from $997 million in 2024, while net interest income – the money the bank earns from lending minus interest paid on deposits – rose to $747 million from $668 million a year earlier.
Noninterest income, which includes fees and other earnings, fell slightly to $323 million from $329 million, affected by the early-year accounting adjustments.
Noninterest expenses for 2025 were $655 million, modestly higher than $641 million in 2024, as the bank continued investing in technology, staffing and client services.
For the fourth quarter that ended Dec. 31, Eastern reported net income of $65 million, up from $55 million in the fourth quarter of 2024. Earnings per diluted share were 44 cents, beating the Zacks consensus estimate of 41 cents and up from $0.34 a year ago.
Revenue net of interest expense – the amount the bank earns after paying interest on deposits and borrowings – totaled $283.5 million, slightly above Wall Street estimates of $282.4 million.
Net interest income for the quarter rose about 3% year over year to $198 million, supported by loan growth and favorable funding costs. Meanwhile, net interest margin, a key measure of what the bank earns on loans minus what it pays for deposits, held steady at 3.02% for the quarter.
Total loans and leases stood at $28.3 billion at year-end, up roughly 4% from a year earlier, while deposits increased to $35.6 billion, a 2% rise from 2024.
The Boston-based Eastern Bank – which operates about 100 locations in eastern Massachusetts, Connecticut and New Hampshire – recently completed its merger with HarborOne Bancorp Inc., parent of Brockton, Mass.-based HarborOne Bank, which has 30 full-service banking centers across Massachusetts and Rhode Island.
The $5.7 billion deal,
finalized on Sept. 26, expands Eastern Bank’s footprint into Rhode Island and boosts 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.
