Highlights

  • Eastern Bankshares shows 612.09% basic EPS growth, a P/E of 12.92 and PEG of 0.00.
  • Third quarter net income was $111.0 million, or $0.51 per diluted share.
  • Eastern repurchased 2.6 million shares for $56.7 million; 10.1 million shares remain authorized.
  • Management guided full-year 2026 net interest margin of 3.60% to 3.65%.

Basic earnings per share growth of 612.09% over one year, a trailing twelve-month P/E of 12.92 and a PEG ratio of 0.00 on an expected basis define Eastern Bankshares (NASDAQ:EBC) as an undervalued growth stock, with shares trading at USD 22.49 on October 28, 2026, down 0.39%. In its latest disclosures, the Boston bank holding company repurchased 2.6 million shares for $56.7 million in the third quarter, reported third quarter 2026 net income of $111.0 million on October 22, and declared a quarterly dividend of $0.15 per share.

Eastern Bankshares, Inc. is a Massachusetts corporation based in Boston and the holding company for Eastern Bank, which was founded in 1818. The bank has more than 125 branch locations serving eastern Massachusetts, southern and coastal New Hampshire and Rhode Island, and offers banking and wealth management services, including through Cambridge Trust Wealth Management and Private Banking divisions. Eastern had approximately $31.7 billion in assets at September 30, 2026.

Growth: Third Quarter Earnings, Net Interest Income and Loans

Net income was $111.0 million in the third quarter against $105.2 million in the second quarter and $106.1 million in the third quarter of 2025. Basic earnings per share were $0.51 against $0.48 and $0.53. For the nine months, net income was $281.5 million against a net loss of $11.3 million a year earlier, and basic earnings per share were $1.29 against a loss of $0.06.

Net interest income was $257.9 million against $251.9 million in the prior quarter and $200.2 million a year earlier. The net interest margin on a fully taxable-equivalent basis was 3.62% against 3.66%. Noninterest expense was $159.7 million against $167.9 million. Total loans were $23,974 million, up 1.1% from the prior quarter, and total deposits were $26,017 million, up 0.4%.

Valuation: P/E of 12.92, PEG of 0.00 and Return Measures

The P/E ratio of 12.92 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 is on an expected basis. Return on average assets was 1.41% and return on average tangible common equity, a non-GAAP measure, was 15.7%. The efficiency ratio was 52.1% against 54.3%.

Book value per share was $18.56 against $18.72 at June 30, 2026, and tangible book value per share, a non-GAAP measure, was $12.96 against $13.13. Chief Financial Officer David Rosato said positive operating leverage reflected higher net interest income and controlled expenses. Management said it is committed to rightsizing its capital position over time.

Capital Returns, Funding and Balance Sheet

Eastern returned $89.1 million to shareholders in the third quarter, including $56.7 million of share repurchases and $32.4 million of cash dividends. It repurchased 2.6 million shares at a weighted average price of $22.11, and 10.1 million shares remained in the current program, which expires on December 31, 2027. The Board declared a $0.15 dividend payable December 21, 2026 to shareholders as of December 7, 2026.

The estimated common equity tier 1 capital ratio was 13.02% against 13.00%, and tangible shareholders' equity to tangible assets was 9.64% against 10.06%. Total shareholders' equity was $4,199.7 million, borrowed funds were $903.9 million against $398.6 million.

Disclosed Risks and Outlook

Non-performing loans were $84.8 million, or 0.36% of total loans, against $109.4 million, or 0.47%, at June 30, 2026. Net charge-offs were $5.2 million, or 0.09% of average total loans, against $9.8 million, or 0.17%. Chief Executive Officer Denis Sheahan said commercial real estate payoffs remained a headwind and that the pace of closings was somewhat slower than anticipated as some clients take a measured approach amid interest rate uncertainty. The company's disclosed risk factors include its concentration in commercial real estate and potential impairment of goodwill and other intangible assets, which were $1,266.0 million.

Net interest margin declined as higher deposit costs more than offset higher earning asset yields, and Mr. Rosato said on the call that deposit pressure is expected to continue into the fourth quarter and next year if the Federal Reserve continues to raise rates.

Management said on the call that its July full-year 2026 guidance is unchanged, including a net interest margin of 3.60% to 3.65%, with the margin expected to remain relatively stable in the fourth quarter and modestly improve into next year. It expects fourth quarter expenses to rise relative to the third quarter, to a base of about $163 million to $164 million, and said new 2027 guidance will come in January.