NASDAQ$EBC
Eastern Bankshares Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Reported a net loss due to the sale of securities, but operating net income increased driven by insurance commissions and balance sheet repositioning.
Eastern Bankshares, Inc. reported a net loss of $194.1 million for Q1 2023, primarily due to a $280 million after-tax loss from the sale of available-for-sale securities. However, operating net income was a record $61.1 million, driven by an increase in insurance commissions and a balance sheet repositioning. The company strengthened its liquidity, providing 107% coverage of uninsured deposits while maintaining a strong capital position.
- Net loss of $194.1 million, or $1.20 per diluted share.
- Operating net income was a record $61.1 million, or $0.38 per diluted share, excluding the after-tax loss from the sale of securities and certain other non-recurring items.
- Total loans increased by $99.7 million, or 1%, from the prior quarter, driven by commercial and residential loans.
- Cash and cash equivalents were $2.1 billion, and secured borrowing capacity totaled $5.0 billion, providing 107% coverage of customer uninsured deposits.
Headline financials
Revenue & EPS history
Eastern Bank · Revenue · Quarterly
-$140M
Revenue by segment
Eastern Bank · $8.07M total across 2 segments · Q2 2023
- Service charges on deposit accounts$7.24M—89.8%
- Interest rate swap income$825K—10.2%
Forward guidance
The company expects to improve its overall financial profile by enhancing liquidity and strengthening earnings, while maintaining strong capital ratios on a GAAP and regulatory basis.
Tailwinds
- Enhancing liquidity
- Strengthening earnings
- Maintaining strong capital ratios on a GAAP basis
- Maintaining strong capital ratios on a regulatory basis
- Better execute on strategic objectives
Headwinds
- Adverse developments in the level and direction of loan delinquencies and charge-offs
- Changes in interest rates and resulting changes in competitor or customer behavior
- Adverse national or regional economic conditions or conditions within the securities markets or banking sector
- Legislative and regulatory changes and related compliance costs
- Asset and credit quality deterioration
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
-1.0%
Avg return
Earnings day
-1.4%
Avg return
5 days after
+1.9%
Avg return
30 days after
36%
8 / 22 earnings
Positive
+5.6%
Q1 2023
Best reaction
-8.6%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -2.7% | -3.0% | -3.3% | |
| Q4 2025 | -1.5% | -2.1% | +5.2% | |
| Q3 2025 | -3.8% | -8.9% | -0.8% | |
| Q2 2025 | -2.0% | -1.1% | +8.1% | |
| Q1 2025 | -6.5% | -5.5% | -6.4% | |
| Q3 2024 | -4.6% | +0.8% | +12.9% | |
| Q2 2024 | +4.8% | +2.9% | +3.4% | |
| Q1 2024 | -0.7% | -4.3% | +3.4% | |
| Q4 2023 | -0.2% | +5.9% | -5.6% | |
| Q3 2023 | -2.6% | -4.4% | +4.9% | |
| Q2 2023 | +1.3% | -1.1% | -8.0% | |
| Q1 2023 | +5.6% | -5.0% | +2.5% | |
| Q4 2022 | -8.6% | -7.7% | -9.6% | |
| Q3 2022 | -8.4% | -10.6% | -8.8% | |
| Q2 2022 | +2.4% | +0.9% | +0.8% | |
| Q1 2022 | -2.0% | -2.0% | -0.3% | |
| Q4 2021 | +0.3% | +2.6% | +6.3% | |
| Q3 2021 | +2.6% | +4.5% | -0.9% | |
| Q2 2021 | -1.4% | -1.2% | +7.6% | |
| Q1 2021 | +0.4% | +2.4% | +5.4% | |
| Q4 2020 | -0.4% | +1.3% | +10.1% | |
| Q3 2020 | +5.1% | +5.0% | +15.9% | |
| Q2 2020 | — | — | — | |
| Q1 2020 | — | — | — | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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