The EPS beat is marginal and revenue missed consensus, while NIM compression and rising deposit costs signal margin pressure. The strong credit quality improvement and capital return are positives, but the mixed revenue/margin picture suggests limited near-term upside. Watch for deposit cost trends and loan growth trajectory in Q4 earnings.
Price Chart
Executive Summary
Eastern Bankshares reported Q3 2026 GAAP EPS of $0.51, a 1.8% beat vs consensus of $0.50, on total revenue of $306.6M (below $312.1M consensus). Net income rose 5.5% linked quarter to $111.0M, driven by loan growth and lower expenses, while NIM compressed 4bp to 3.62%. Credit quality improved sharply with NPLs down 22.5% linked quarter to 0.36% of loans. The company returned $89.1M to shareholders via buybacks and dividends.
Key Financial Metrics
Key Facts
- GAAP EPS $0.51 vs consensus $0.50 (1.8% beat); revenue $306.6M vs $312.1M consensus (miss)
- Net income $111.0M, up 5.5% linked quarter; operating net income also $111.0M (record)
- Net interest margin (FTE) 3.62%, down 4bp linked quarter; cost of deposits rose 9bp to 1.56%
- Period-end loans $23.97B, up 1.1% linked quarter; deposits $26.02B, up 0.4%
- NPLs fell 22.5% to $84.8M (0.36% of loans); net charge-offs 0.09% of avg loans, down from 0.17%
- Returned $89.1M to shareholders: $56.7M in buybacks (2.6M shares at $22.11 avg) and $32.4M dividends
- Quarterly dividend maintained at $0.15/share; $10.1M remaining in buyback authorization through Dec 2027
- Wealth AUM rose to $10.8B; operating efficiency ratio improved to 47.5% from 49.0%
Financial Impact
EPS beat by $0.01 (1.8%) on consensus $0.50; revenue miss of ~$5.5M (1.8%) vs consensus $312.1M
Risk Factors
- Net interest margin compression of 4bp linked quarter as deposit costs rise faster than asset yields
- Revenue miss vs consensus despite EPS beat; noninterest income fell 15.5% linked quarter
- Tangible book value per share declined 1.3% linked quarter to $12.96 due to AOCI mark-to-market
- Commercial real estate payoffs remain a headwind to loan growth
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066914 |
| Document: ebc-20261022.htm | 0001628280-26-066914 |
| Document: 0001628280-26-066914-index-headers.html | 0001628280-26-066914 |
| Document: 0001628280-26-066914-index.html | 0001628280-26-066914 |
| Document: 0001628280-26-066914.txt | 0001628280-26-066914 |
| 8-K Data (Synthetic) | 0001628280-26-066914 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $22.40 | awaiting T+20 | — | $22.51 (+0.49%) |
Sep 22, 2026 4w ago | Institutional Cluster | $21.37 $21.47 | ▲ +0.47% | ▲ +1.03% | $22.51 (+5.33%) |
Sep 3, 2026 7w ago | Insider Cluster | $22.09 $21.24 | ▼ −3.85% | ▼ −4.70% | $22.51 (+1.90%) |
Sep 3, 2026 7w ago | Insider Cluster | $22.09 $21.24 | ▼ −3.85% | ▼ −4.70% | $22.51 (+1.90%) |
Sep 2, 2026 7w ago | Insider Cluster | $21.93 $21.47 | ▼ −2.13% | ▼ −1.92% | $22.51 (+2.64%) |
Aug 25, 2026 8w ago | 144 | $22.36 $21.14 | ▼ −5.46% | ▼ −6.43% | $22.51 (+0.67%) |
Aug 21, 2026 9w ago | 144 | $22.74 $21.48 | ▼ −5.54% | ▼ −5.01% | $22.51 (−1.01%) |
Aug 20, 2026 9w ago | 144 | $22.74 $21.60 | ▼ −5.01% | ▼ −5.01% | $22.51 (−1.01%) |
Aug 19, 2026 9w ago | 144 | $23.01 $21.55 | ▼ −6.35% | ▼ −4.39% | $22.51 (−2.17%) |
Jun 29, 2026 17w ago | 144 | $22.24 $23.10 | ▲ +3.87% | ▲ +4.90% | $22.51 (+1.21%) |
US Market Status
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