0001628280-26-026859
SEC filingEastern Bankshares reported Q1 2026 GAAP net income of $65.3 million ($0.29 diluted EPS), down 34.4% sequentially, with operating net income of $88.6 million ($0.40 diluted EPS); announced a 15% dividend increase to $0.15 per share and completed 59% of its current share repurchase authorization.
Eastern Bankshares’ Q1 2026 results reflect the first full quarter following the November 1, 2025 merger with HarborOne Bancorp, which management states contributed to higher operating costs but also enabled margin expansion and balance sheet scale. Net interest margin improved 2 basis points to 3.63%, driven by a 16-basis-point decline in the cost of interest-bearing liabilities to 1.99%, offsetting a 7-basis-point drop in asset yields. Operating net income of $88.6 million declined modestly (6.4%) from Q4 2025, primarily due to $1.9 million in investment losses tied to employee retirement benefits and seasonally higher payroll expenses — not core lending or fee performance. Asset quality strengthened meaningfully: non-performing loans fell $34.6 million (20.1%) from year-end, and net charge-offs remained low at 0.17% of average loans. Management highlighted record commercial pipelines and wealth AUM growth to $9.8 billion on positive net flows, though noted competitive deposit pressures led to a $365.5 million sequential decline in deposits. The 15% dividend hike and continued share repurchases — $75.1 million executed in Q1, with completion expected mid-year — underscore capital generation capacity and commitment to shareholder returns. CEO Sheahan emphasized organic growth momentum and CFO Rosato confirmed successful HarborOne core system conversion in February, positioning the company to realize projected merger synergies. No forward guidance was provided beyond expectations for share repurchase program completion and potential new authorization subject to regulatory approval.