Slides
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Q2 Earnings Presentation July 24, 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 2 Q2 2025 financial highlights • Net income of $100.2 million, or $0.50 per diluted share, included GAAP tax benefit related to losses from investment portfolio repositioning completed in the first quarter • Operating net income of $81.7 million, or $0.41 per diluted share, increased 21% linked quarter • Return on average assets of 1.60% or 1.30% on an operating basis; return on average tangible equity of 16.44%, or 13.56% on an operating basis. • Both period-end loans and deposits grew 8% annualized linked quarter • Wealth management assets under management reached a record high of $8.7 billion at quarter-end • Net interest margin on a fully tax equivalent basis expanded 21 basis points to 3.59%, primarily due to higher asset yields • Non-performing loans of $54.7 million or 0.30% of totals loans, an improvement from $91.6 million or 0.51% at March 31, 2025 • Tangible book value per share of $12.53, up $0.52 or 4% linked quarter Key Metrics Highlights $0.13 per share Dividend declared $81.7 million Operating net income* $100.2 million Net income $0.50 $0.41 Diluted EPS Diluted operating EPS* $17.42 $12.53 BV/Share TBV/Share* 3.59% 1.48% NIM* Total deposit cost 0.30% 0.00% NPLs / total loans NCOs / avg. loans *Non-GAAP Financial Measure. 1CET1 ratio as of June 30, 2025 is preliminary.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 3 $ in millions, except per share amounts Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income $ 202.0 $ 188.9 $ 179.2 $ 169.9 $ 128.6 Noninterest income (loss) 42.9 (236.1) 37.3 33.5 25.3 Total revenue 244.9 (47.2) 216.5 203.4 153.9 Noninterest expense 137.0 130.1 137.5 159.8 109.9 Pre-tax, pre-provision income 107.9 (177.3) 79.0 43.6 44.1 Provision for allowance for loan losses 7.6 6.6 6.8 47.0 6.1 Pre-tax income (loss) 100.3 (183.9) 72.2 (3.4) 38.0 Income tax expense 0.1 33.8 11.4 2.8 11.7 Net income (loss) $ 100.2 $ (217.7) $ 60.8 $ (6.2) $ 26.3 Operating net income* $ 81.7 $ 67.5 $ 68.2 $ 51.3 $ 37.1 EPS $ 0.50 $ (1.08) $ 0.30 $ (0.03) $ 0.16 Operating EPS* $ 0.41 $ 0.34 $ 0.34 $ 0.26 $ 0.23 ROA 1.60 % (3.52) % 0.94 % (0.10) % 0.50 % Operating ROA* 1.30 % 1.09 % 1.06 % 0.82 % 0.70 % ROATCE*1 16.4 % (33.9) % 10.2 % (0.3) % 4.5 % Operating ROATCE*1 13.6 % 11.7 % 11.3 % 8.7 % 6.4 % Efficiency ratio 55.9 % (275.6) % 63.5 % 78.5 % 71.3 % Operating efficiency ratio*1 50.8 % 53.7 % 57.3 % 59.7 % 63.6 % *Non-GAAP Financial Measure. 1Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income. Income statement • Net income included GAAP tax benefit related to losses from investment portfolio repositioning completed in Q1 2025 • Operating net income increased 21% vs. Q1 2025 • Net interest income increased for fourth consecutive quarter • Noninterest income of $42.9 million, or $42.2 million on an operating basis • Noninterest expense of $137.0 million included merger-related costs of $2.6 million. Noninterest expense on an operating basis of $134.4 million
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 4 Financial metrics 63.6% 59.7% 57.3% 53.7% 50.8% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.23 $0.26 $0.34 $0.34 $0.41 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.70% 0.82% 1.06% 1.09% 1.30% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Operating efficiency ratio1 Operating ROA 6.4% 8.7% 11.3% 11.7% 13.6% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Operating EPS Operating ROATCE1 1Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 5 $ in millions. *Non-GAAP Financial Measure. 1Presented on a fully tax equivalent basis. 2Q2 2025 net interest income included net discount accretion of $16.5 million, compared to $12.2 million in Q1 2025 Net interest margin QoQ changes in FTE net interest income*2 Q2 2025 Q1 2025 Change Avg. Balance Cost Avg. Balance Cost Avg. Balance Cost Savings $ 1,632 0.30 % $ 1,648 0.29 % $ (16) 0.01 % DDAWI 4,410 0.92 % 4,493 0.91 % (83) 0.01 % MMDA 5,894 2.29 % 5,734 2.24 % 160 0.05 % CD 3,228 3.94 % 3,211 4.17 % 17 (0.23) % Total I.B. deposits 15,164 2.03 % 15,086 2.04 % 78 (0.01) % Borrowings 66 3.67 % 86 3.82 % (20) (0.15) % Total I.B. liab. 15,230 2.04 % 15,172 2.05 % 58 (0.01) % DDA 5,662 5,742 (80) Total deposits 20,826 1.48 % 20,828 1.48 % (2) — % Funding sources Q2 2025 Q1 2025 Change Avg. Balance Yield1 Avg. Balance Yield1 Avg. Balance Yield1 Commercial loans $ 12,533 5.59 % $ 12,305 5.40 % $ 228 0.19 % Residential loans 3,889 4.46 % 3,914 4.42 % (25) 0.04 % Consumer loans 1,654 6.68 % 1,616 6.57 % 38 0.11 % Total loans 18,077 5.45 % 17,835 5.29 % 242 0.16 % Securities 4,832 3.02 % 4,967 2.69 % (135) 0.33 % Cash 229 4.14 % 438 4.29 % (209) (0.15) % Total I.E. assets 23,137 4.93 % 23,241 4.72 % (104) 0.21 % Earning assets $133.2 $174.6 $184.0 $193.5 $206.8 2.64% 2.97% 3.05% 3.38% 3.59% NII - FTE NIM - FTE Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 FTE net interest income and margin trend $193.5 $12.7 $1.1 $(0.7) $0.2 $206.8 3.38% 3.59% Q1 2025 Loans Inv. & cash DepositsBorrowingsQ2 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 6 Noninterest income Q2 2025 Q1 2025 Q2 2024 QoQ YoY Investment advisory fees $ 17.3 $ 16.4 $ 6.7 $ 0.8 $ 10.6 Service charges on deposit accounts 8.2 8.3 7.9 (0.1) 0.3 Card Income 4.2 3.9 4.1 0.3 0.2 Interest rate swap income 1.0 0.5 0.4 0.5 0.6 Income (losses) from investments held in rabbi trusts 5.7 (1.3) 1.8 7.0 4.0 Losses on sales of mortgage loans held for sale (0.1) (0.1) (0.2) — 0.1 Losses on sale of AFS securities — (269.6) (7.6) 269.6 7.6 Miscellaneous income and fees 5.9 6.4 12.2 (0.5) (6.3) Other non-operating income 0.6 (0.6) — 1.2 0.6 Total noninterest income (loss) $ 42.9 $ (236.1) $ 25.3 $ 279.0 $ 17.5 Total operating noninterest income* $ 42.2 $ 34.2 $ 32.9 $ 8.0 $ 9.3 • Noninterest income was $42.9 million compared to noninterest loss of $236.1 million in the prior quarter. • Q1 2025 included pre-tax non- operating losses on the sale of AFS securities of $269.6 million related to investment portfolio repositioning • Operating noninterest income was $42.2 million, an increase of $8.0 million or 23% linked quarter. • $7.0 million increase in income from investments held in rabbi trusts. Increase partially offset by $3.2 million in higher rabbi trust benefit costs reported in noninterest expense • $0.8 million increase in investment advisory fees. • $0.5 million increase in interest rate swap income $ in millions. *Non-GAAP Financial Measure.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 7 $3,416 $8,353 $8,309 $8,442 $8,718 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Assets under management (AUM) AUM asset allocation 62% 29% 8%1% Equity Fixed IncomeCash OtherFees $6.7 $14.9 $18.0 $16.4 $17.3 20% 41% 49% 48% 41% Fees Fees as a % of total operating noninterest income Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $ in millions. • AUM increased to a record high of $8.7 billion • Fees increased $0.8 million or 5% from Q1 2025 • AUM fees as a percentage of AUM: 75 bps Wealth management
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 8 $109.9 $159.8 $137.5 $130.1 $137.0$106.2 $132.2 $134.0 $130.1 $134.4 Noninterest expense Operating noninterest expense Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Noninterest expense $ in millions. *Non-GAAP Financial Measure. • Noninterest expense increased $6.8 million linked quarter • Q2 2025 included $2.6 million of merger-related costs • Operating noninterest expense increased $4.3 million linked quarter, primarily driven by the following expenses: • $0.8 million increase in salaries and employee benefits • $0.7 million increase in marketing • $0.6 million increase in occupancy and equipment • $0.5 million increase in FDIC insurance • $0.4 million increase in technology and data processing Q2 2025 Q1 2025 Q2 2024 QoQ YoY Salaries and employee benefits $ 80.7 $ 79.9 $ 64.8 $ 0.8 $ 15.9 Technology and data processing 18.4 18.0 15.7 0.4 2.7 Occupancy and equipment 11.2 10.6 10.1 0.6 1.1 Professional services 3.0 2.9 3.3 0.1 (0.3) FDIC Insurance 3.8 3.3 4.5 0.5 (0.7) Marketing expenses 2.4 1.7 1.9 0.7 0.5 Amortization of intangible assets 7.8 7.8 0.5 — 7.3 Other operating expense 7.0 5.9 5.3 1.1 1.7 Non-operating expense 2.6 — 3.7 2.6 (1.1) Total noninterest expense $ 137.0 $ 130.1 $ 109.9 $ 6.8 $ 27.1 Total operating noninterest expense* $ 134.4 $ 130.1 $ 106.2 $ 4.3 $ 28.2
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 9 • Deposits increased $424 million, or 8% annualized linked- quarter, primarily driven by higher municipal deposits • Total deposit costs were consistent with the first quarter • Interest-bearing deposit costs decreased 1 basis point due to lower CD costs • Favorable deposit mix highlighted by 49% of deposits in checking Period-end deposit balances Cost of depositsHigh quality deposit portfolio 1.78% 1.82% 1.69% 1.48% 1.48% 2.44% 2.50% 2.33% 2.04% 2.03% Interest-bearing deposit costTotal deposit cost Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Deposits $ in billions. 48% 49% 50% 50% 49% 29% 26% 27% 27% 28% 7% 8% 8% 8% 8% 17% 17% 16% 15% 15% CD Sav MMDA Checking Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025 $17.6 $21.2 $21.3 $20.8 $21.2 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 10 • Loans increased $385 million, or 8% annualized, linked quarter • Commercial increased $349 million, primarily driven by higher C&I activity • Residential decreased $22 million • Consumer increased $58 million primarily driven by higher HELOC balances Loan portfolio Commercial loan composition 14,146 18,064 18,079 18,204 18,590 $10,080 $12,350 $12,359 $12,501 $12,850 $2,563 $4,081 $4,064 $4,039 $4,016 $1,503 $1,634 $1,657 $1,665 $1,723 Total commercial Residential real estate Total Consumer Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025Loan trends 28% 57% 4% 11% Commercial and industrialCommercial real estate Commercial constructionBusiness banking $ in millions. $$$ $ $
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 11 Securities portfolio Investment composition as of June 30, 20251Portfolio trends1 64% 28% 2%5%1% Agency RMBS Agency CMBS Treasuries Munis Corporate Debt $ in billions. 1Includes both AFS and HTM portfolios at amortized cost. $5.3 $5.2 $5.2 $4.9 $4.8 $4.9 $4.8 $4.8 $4.4 $4.3 $0.4 $0.4 $0.4 $0.4 $0.5 AFS securities HTM securities Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 • High quality portfolio with 94% in US Agency securities and Treasury bonds • Portfolio yield of 3.02% in Q2 2025 • AFS unrealized loss was $313 million after tax, compared to $333 million at March 31, 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 12 Capital1 Regulatory capital ratios as of June 30, 2025 *Non-GAAP Financial Measure. 1Regulatory capital ratios as of June 30, 2025 are preliminary estimates. Capital threshold refers to the regulatory minimum to be categorized as "Well capitalized" based on the Federal Agencies' Prompt Corrective Action ("PCA") provisions. 12.1% 14.4% 14.4% 15.5% 5.0% 6.5% 8.0% 10.0% Well capitalized regulatory minimum Capital above well capitalized regulatory minimum Tier 1 Leverage CET1 Tier 1 Capital Total Capital Capital metrics 6/30/2025 3/31/2025 6/30/2024 Tier 1 leverage ratio 12.1% 11.7% 14.2% Common equity tier 1 ("CET1") capital ratio 14.4% 14.2% 18.6% Tier 1 capital ratio 14.4% 14.2% 18.6% Total risk-based capital ("RBC") ratio 15.5% 15.2% 19.6% Tangible common equity ratio* 10.8% 10.6% 11.7% Tangible book value per share* $12.53 $12.01 $13.60 • Capital ratios increased linked quarter. CET1 ratio and TCE ratio of 14.4% and 10.8%, respectively • Robust capital position provides significant support for growth initiatives and capital management strategies • Repurchased $3.0 million worth of shares at the beginning of the second quarter at an average of price of $16.36 • Declared quarterly cash dividend of $0.13 payable on September 15, 2025 • Medium-term CET1 target of ~12% Capital ratios
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 13 Net charge-offs Non-performing loans Asset quality $ in millions. • Non-performing loans of $55 million, or 0.30% of total loans, decreased $37 million linked quarter • Commercial: $37 million • Residential: $10 million • Consumer: $7 million • Allowance for loan losses: $232 million • 1.27% of total loans and 424% of NPLs $40 $125 $45 $44 $28 $79 $48 $27 0.28% 0.70% 0.76% 0.51% 0.30% EB Legacy Cambridge NPL (%) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $5 $12 $11 $20 (0.02)% 0.12% 0.71% 0.26% —% EB Legacy Cambridge NCOs / Avg. loans (%) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Commercial criticized & classified loans $648 $588 $426 $416 $344 $169 $180 $116 6.44% 6.78% 4.86% 4.82% 3.60% EB Legacy Cambridge Criticized & Classified (%) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 ($1)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 14 CRE exposure1 $ in millions. 1CRE exposure excludes Construction and Business Banking except for the NOO CRE to total RBC ratio. 2NOO CRE to total RBC ratio in Q2 2025 is estimated. 3Excludes affordable housing loans. Composition Non-performing CRE loans Balance % of total CRE Avg. loan balance % in MA/ NH NPL% Multi-family $ 2,590 36 % $ 4.7 88 % — % Retail 919 13 % 3.0 87 % 1.0 % Office 955 13 % 3.6 99 % 1.1 % Industrial/ Warehouse 722 10 % 3.0 94 % — % Affordable housing 609 8 % 3.6 93 % 1.0 % Education 322 4 % 5.1 69 % — % Self storage 250 3 % 5.8 75 % — % All others 927 13 % 2.7 93 % — % Total CRE $ 7,294 100 % $ 3.7 90 % 0.4 % $23 $25 $55 $20 $6 $38 $19 0.7% 0.4% 1.3% 1.5% 0.4% EB legacy Cambridge NPL (%) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 • CRE portfolio of $7.3 billion, or 39% of total loans • Non-owner occupied CRE to total risk-based capital ratio2 of 213% • Composed of diversified property types • Multi-family3 is the largest segment, representing 36% of total CRE and has not had any charge-offs in the past 10+ years • Weighted average LTV at origination: low-to-mid 50% • 90% of properties are in MA or NH; 98% are in New England • Criticized & classified: $287 million or 4.0% of total CRE loans, compared to $385 million or 5.4% in prior quarter • Non-performing loans: $25 million, or 0.4% of total CRE loans, compared to $58 million, or 0.8% in prior quarter • 86% of loans mature in 2027 or later • See slide 15 for CRE investor office exposure
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 15 CRE investor office exposure1 Risk segment and location Office 37% Mixed Use 44% Lab/Life Science 12% Medical 7% MA suburban 57% Boston/ Cambridge 35% NH/RI 8% Classification Balance Average loan size Criticized & Classified NPL Specific reserve Class A2 $ 66 $ 22 $ 45 $ — $ 3 Class B/C 762 4 73 10 10 Total $ 828 $ 4 $ 118 $ 10 $ 13 $ in millions. 1 CRE investor office exposure excludes construction and Business Banking. 2Class A defined as high-rise institutional quality buildings in Boston/Cambridge. • CRE investor office loans: $828 million, or 4% of total loans • Includes company's lab/life science exposure: $99 million or <1% of total loans. All loans accruing • Weighted average LTV: 59% at origination • Maturities proactively managed: 7% remaining in 2025, 13% in 2026 and 80% in 2027 or later • 100% in our footprint and 65% in suburban areas • Criticized or classified: $118 million, or 14% of CRE investor office loans • Adequately reserved: $40 million, or 4.9% of CRE investor office, including specific reserves of $13 million • Thorough ongoing risk-based reviews on the office portfolio Maturity schedule 3Q25 4Q25 1Q26 2Q26 Accruing $ 25 $ 10 $ 7 $ 48 Non-accruing — — — — Total $ 25 $ 10 $ 7 $ 48
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 16 Updated outlook for 2025 Full Year 2025 Outlook July 2025 January 2025 Loan growth (period-end) +3% - 5% +2% - 4% Deposit growth (period-end) '0% - 1% (with favorable mix shift) '+1% - 2% (with favorable mix shift) Net interest income $810 - $820 million1 $815 - $840 million2 Net interest margin (FTE) No change1 3.45% - 3.55%2 Provision $27 - $32 million $30 - $40 million Noninterest income (operating) $145 - $150 million $130 - $140 million Noninterest expense (operating) $530 - $540 million $535 - $555 million Tax rate (operating) 21% - 22% 22% - 23% Capital Will maintain strong capital levels and plan to seek regulatory approval for share repurchases post HarborOne close Will maintain strong capital levels and continue opportunistic share repurchases Note: updated outlook is for standalone Eastern as it does not contemplate the impact of HarborOne merger 1 NII / NIM outlook as of July 2025 based on market forwards as of June 30, 2025 2 NII / NIM outlook as of January 2025 based on market forwards as of December 31, 2024 inclusive of investment portfolio repositioning
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 17 *Denotes a non-GAAP financial measure used in the document. In this presentation, the Company may refer to some non-GAAP financial measures. For a reconciliation of these measures to the most comparable GAAP measures, refer to the press release that the Company has made available in connection with this presentation and the most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) as updated by our subsequent periodic filings with the SEC. See investor.easternbank.com. A non-GAAP financial measure is defined as a numerical measure of the Company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements). The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures. There are items in the Company’s financial statements that impact its financial results, but which management believes are unrelated to the Company’s core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders’ equity, operating return on average tangible shareholders’ equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company’s core business and underlying trends. Such items that management does not consider to be core to the Company’s business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) other real estate owned (“OREO”) gains, (v) merger and acquisition expenses, including the “day-2” provision for allowance for loan losses for non-PCD acquired loans, (vi) certain discrete tax items. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. Non-GAAP financial measures (1)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 18 Management also presents tangible assets, tangible shareholders’ equity, average tangible shareholders’ equity, tangible book value per share, the ratio of tangible shareholders’ equity to tangible assets, return on average tangible shareholders’ equity, and operating return on average shareholders’ equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company includes the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends. In the third quarter of 2024, the Company changed its (loss) return on average tangible shareholders' equity and operating return on average tangible shareholders’ equity computations to utilize tangible net (loss) income from continuing operations and tangible operating net income, respectively, in the numerators of the computations. Tangible net (loss) income from continuing operations excludes the amortization of intangible assets and the related tax effect and tangible operating net income excludes, in addition to the adjustments to derive operating net income, the amortization of intangible assets and related tax effect. In addition, in the third quarter of 2024, the Company changed the computation of our operating efficiency ratio to exclude, in addition to the adjustments made to operating net income, the amortization of intangible assets. Management believes the changes to such ratios result in a more meaningful measure of our financial performance and such measures are used by management when analyzing corporate performance. In the first quarter of 2025, the Company changed its computation of operating net income to include income from investments held in rabbi trust and rabbi trust employee benefit expense. Management believes these changes result in a more meaningful measure of the Company’s financial performance and allow for better comparability to peer companies. These non-GAAP financial measures presented in this presentation should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Non-GAAP financial measures (2)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 19 Forward-looking statements This document contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target”, “outlook” and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements. Certain factors that could cause actual results to differ materially from expected results include; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks associated with the Company’s implementation of the planned merger with HarborOne Bancorp, including that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that Eastern’s business may not perform as expected in the years following the merger; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; and disruptions arising from transitions in management personnel; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiaries, including Eastern Bank, are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics and the failure of the Company to execute its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this presentation. The Company does not undertake any obligation to update forward-looking statements.