- Eastern Bankshares, Inc. (EBC, Financial) reported a net loss of $217.7 million for Q1 2025, primarily due to a non-operating loss from investment portfolio repositioning.
- The company's operating net income stood at $67.5 million, with a net interest margin expansion of 33 basis points to 3.38%.
- An 8% increase in the quarterly dividend was announced, along with the repurchase of approximately 2.9 million shares for $48.7 million.
Eastern Bankshares, Inc. (EBC), the parent company of Eastern Bank, has announced its financial results for the first quarter of 2025. The company reported a net loss of $217.7 million, equivalent to $1.08 per diluted share. This loss was largely attributed to a $269.6 million non-operating loss related to investment portfolio repositioning.
Despite the net loss, Eastern Bankshares reported an operating net income of $67.5 million, or $0.34 per diluted share. The company's net interest margin on a fully tax-equivalent basis expanded by 33 basis points to 3.38%. This was driven by higher asset yields and reduced funding costs. Non-performing loans decreased to $91.6 million, or 0.51% of total loans, showing improvement from the previous year's end figures.
On a positive note, Eastern Bankshares announced an 8% increase in its quarterly dividend, marking the fifth consecutive year of dividend hikes. The Board of Directors has declared a quarterly cash dividend of $0.13 per share, payable on June 16, 2025, to shareholders of record on June 3, 2025. The company also repurchased nearly 2.9 million shares at an aggregate cost of $48.7 million during the quarter.
The bank's balance sheet remains strong, with a CET1 ratio of 14.15% and an allowance coverage to total loans of 1.25%. Loans increased by $125.4 million to $18.2 billion, with commercial and industrial balances primarily driving this growth.
Looking forward, Eastern Bankshares emphasizes its commitment to income generation and portfolio management flexibility following the successful repositioning of $1.3 billion in securities. This strategic move is expected to enhance pre-tax earnings by approximately $35 million in 2025.
