Eastern Bankshares, Inc. Q1 FY2025 earnings call

• First Quarter Performance: Solid with successful investment portfolio repositioning, repurchased $48.7 million of shares and announced an 8% dividend increase. Operating earnings were $67.5 million with a 33 basis point expansion in net interest margin and operating efficiency ratio at 53.7%. - Merger with HarborOne Bancorp: Creates a $30+ billion bank, bolstering presence in Greater Boston and Rhode Island. Synergies exist in culture, with both committed to community relationships. Expected to provide ~16% EPS accretion and tangible book value earn back in 2.8 years. - Financials: Operating return on average tangible common equity increased 40 basis points to 11.7%, operating return on average assets up 3 basis points to 1.09%. Credit trends positive with nonperforming loans and net charge-offs improving.

Net Interest Income: Totaled $188.9 million, increasing $9.7 million linked quarter due to margin improvement from higher asset yields and lower cost of funds. The net interest margin expanded 33 basis points. Noninterest Income: On a GAAP basis, it was a loss of $236.9 million compared to $37.3 million income in the prior quarter, driven by pretax non-operating losses from the sale of AFS securities. Operating noninterest income was $34.2 million, down 2.7% primarily due to lower wealth management fees and reduced income from Rabbi Trust investments. Wealth Management: Assets under management reached $8.4 billion, driven by net client flows though a large short-term inflow will reverse. Loans: Period-end loans increased $125 million (3% annualized) with higher C&I balances and growth in home equity lines. Investment Portfolio: Sold $1.3 billion of low-yielding AFS securities, reinvesting proceeds at market rates to improve portfolio yield and flexibility.

• No changes to full-year guidance as of first quarter; first quarter performance solid with positive trends not affecting current outlook. - Merger with HarborOne projected to provide ~16% EPS accretion, $55M pretax cost savings, and tangible book value earn back in 2.8 years. - Intend to revisit outlook at midyear due to fluid economic environment and uncertainty in trade policies, interest rates, etc.

• Economic uncertainty including trade policies, interest rates, inflation, and market volatility. - Credit risks in investor office loans, with criticized and classified loans at 19% of investor office loans and need for proactive management to address office exposures.

Q: About share buyback during merger process, will Eastern be active?

A: We will be out of the market since using equity component in consideration until HarborOne shareholder approval.

Q: Timing of merger closing?

A: Target to close in mid-Q4 2025 if regulatory approvals and waiting periods complete by 10/31; may defer to Q1 2026 if late.

Q: Franchise lending group hired, specialty and growth potential?

A: Hired seasoned lenders from larger institutions, resulted in growth in first quarter, pipeline building with expertise in areas like fast food, hopeful for continued growth.

Q: Effective tax rate for remainder of 2025?

A: Expect negative tax expense in subsequent quarters, full-year effective tax rate ~11%.

Q: HarborOne's mortgage business and merger plans?

A: HarborOne's mortgage business is well-run, plan to optimize combined entity for Eastern, considering gain on sale and jumbo mortgage opportunities.

Q: Merger process, negotiated or auction?

A: Entered negotiations after maintaining relationships with HarborOne CEO, not an auction process.

Q: Timing of $1.3 billion securities repositioning and March spot margin?

A: Mostly done in late January and February, March spot margin 3.49%.

Q: Effective tax rate 2026 and beyond?

A: Normalizes to historical run rate, bracketed 21-23% for 2026.

Q: Credit performance excluding office loans and charge-off rates?

A: Pleased with credit performance, but hesitant to provide charge-off rate due to economic uncertainty.