NASDAQ$EBC

Eastern Bankshares Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Strong margin expansion resulted from the prior quarter’s balance sheet repositioning, and cash raised in the securities sale will continue to enhance the company’s financial position.

Eastern Bankshares, Inc. reported strong second quarter results with a net income of $48.7 million, or $0.30 per diluted share. The company's net interest margin expanded 14 basis points, and operating revenues increased by $1.5 million.

  • Total revenue was $195.4 million, with total operating revenue of $196.3 million, up $1.5 million from the prior quarter.
  • Net income reached $48.7 million, or $0.30 per diluted share, compared to a net loss in the previous quarter.
  • Total loans increased by $286.6 million, or 2.1%, to $14.0 billion compared to the prior quarter.
  • The net interest margin expanded 14 basis points to 2.80%.

Headline financials

Total Revenue

$195M

Previous: $180M+8.8%
EPS (adj)

$0.28

Previous: $0.32-12.5%
Net interest margin - FTE

2.8%

Previous: 2.6%+6.5%
Shareholders' equity / assets

11.7%

No prior period
Tangible shareholders' equity / tangible assets

8.9%

No prior period
Capital Expenditures

-$2.24M

Previous: -$4.86M+54.0%
Free Cash Flow

$46.4M

Previous: $46.3M+0.2%
Net Income

$48.7M

Previous: $51.2M-4.9%
Operating Income

$104M

Previous: $150M-30.4%
Gross Profit

$195M

Previous: $180M+8.8%
Cash & Equivalents

$105M

Previous: $369M-71.5%
Total Assets

$21.6B

Previous: $22.4B-3.4%
Stock-Based Comp

$4.67M

Previous: $2.91M+60.5%

Revenue & EPS history

Eastern Bank · Revenue · Quarterly

$195M

Q2 2023+8.8%vs Q2 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Eastern Bank · $8.07M total across 2 segments · Q2 2023

  • Service charges on deposit accounts
    $7.24M
  • Interest rate swap income
    $825K

Forward guidance

The company is well-positioned to meet customer needs in an uncertain economic environment due to its strong balance sheet and core earnings.

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 Q2 2023

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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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