Slides
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Q3 Earnings Presentation October 23, 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 Five years as a public company Eastern today Source: FactSet; S&P Global Market Intelligence; Note: Financial data as of September 30, 2025; Market data as of October 17, 2025; Branch map includes HarborOne branches from pending merger; Assets and market share are pro forma for pending merger with HarborOne - ¹ FDIC Summary of Deposits Survey data as of June 30, 2025; excludes trust banks; Scale #1 Independent Boston-based bank by deposits¹ (Eastern Bank) #1 Bank-owned investment advisor in MA by AUM (Cambridge Trust Wealth Management) EBC Nasdaq Boston, MA Headquarters 1818 Founded 2020 IPO $25.5bn Assets $21.1bn Deposits $18.8bn Loans $9.2bn AUM Performance Summary Since 2020 IPO $16.0 $25.5 $5.6 IPO Q3'25 $2.7 $9.2 IPO Q3'25 $0.18 $0.37 IPO Q3'25 4.6% 11.7% IPO Q3'25 $10.00 $18.17 IPO Q3'25 Deposit market share Wealth franchise 3.7% 6.2% 1.0% IPO Q3'25 Earnings power Profitability Shareholder returns Boston MSA market share¹ AUM ($bn)Assets ($bn) Operating EPS Operating ROATCE Share price +95% ~2X +241% +106% +710 bps +82% 7.2%$31.1 Pending HarborOne assets / market shareQ3'25 MEConcord Manchester Boston MA Lowell RI Providence New Bedford Newport Salem
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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 Q3 2025 financial highlights • Announced authorization of 5% share repurchase plan • Net income of $106.1 million, or $0.53 per diluted share, included a GAAP tax benefit related to losses from the investment portfolio repositioning completed in the first quarter • Operating net income of $74.1 million, or $0.37 per diluted share, declined from a very strong second quarter, which benefited from higher than expected net discount accretion and fee income; operating net income up 44% from prior year quarter • Return on average assets of 1.66% or 1.16% on an operating basis; return on average tangible common equity of 16.4%, or 11.7% on an operating basis • Period-end loans grew 1.3% linked quarter and 4.1% since year-end, driven primarily by continued strong commercial lending results • Wealth management assets under management reached a record high of $9.2 billion at quarter-end • Tangible book value per share of $13.14, up $0.61 or 5% linked quarter and $1.16 or 10% since year-end, reflecting continued strong capital generation Key Metrics Highlights $0.13 per share Dividend declared $74.1 million Operating net income* $106.1 million Net income $0.53 $0.37 Diluted EPS Diluted operating EPS* $17.99 $13.14 BV/Share TBV/Share* 3.47% 1.55% NIM* Total deposit cost 0.37% 0.13% NPLs / total loans NCOs / avg. loans *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 4 $ in millions, except per share amounts Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Net interest income $ 200.2 $ 202.0 $ 188.9 $ 179.2 $ 169.9 Noninterest income (loss) 41.3 42.9 (236.1) 37.3 33.5 Total revenue 241.5 244.9 (47.2) 216.5 203.4 Noninterest expense 140.4 137.0 130.1 137.5 159.8 Pre-tax, pre-provision income (loss) 101.1 107.9 (177.3) 79.0 43.6 Provision for allowance for loan losses 7.1 7.6 6.6 6.8 47.0 Pre-tax income (loss) 94.0 100.3 (183.9) 72.2 (3.4) Income tax (benefit) expense (12.2) 0.1 33.8 11.4 2.8 Net income (loss) $ 106.1 $ 100.2 $ (217.7) $ 60.8 $ (6.2) Operating net income* $ 74.1 $ 81.7 $ 67.5 $ 68.2 $ 51.3 EPS $ 0.53 $ 0.50 $ (1.08) $ 0.30 $ (0.03) Operating EPS* $ 0.37 $ 0.41 $ 0.34 $ 0.34 $ 0.26 ROA 1.66 % 1.60 % (3.52) % 0.94 % (0.10) % Operating ROA* 1.16 % 1.30 % 1.09 % 1.06 % 0.82 % ROATCE*1 16.4 % 16.4 % (33.9) % 10.2 % (0.3) % Operating ROATCE*1 11.7 % 13.6 % 11.7 % 11.3 % 8.7 % Efficiency ratio 58.2 % 55.9 % (275.6) % 63.5 % 78.5 % Operating efficiency ratio*1 52.8 % 50.8 % 53.7 % 57.3 % 59.7 % *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 a GAAP tax benefit related to losses from the investment portfolio repositioning completed in Q1 2025 • Operating net income increased 44% from Q3 2024 • Net interest income included $10.0 million of net discount accretion compared to $16.5 in Q2 2025 • Noninterest income of $41.3 million, or $39.7 million on an operating basis • Noninterest expense of $140.4 million included merger-related costs of $3.2 million. Noninterest expense on an operating basis of $137.2 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 5 Financial metrics 59.7% 57.3% 53.7% 50.8% 52.8% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.26 $0.34 $0.34 $0.41 $0.37 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.82% 1.06% 1.09% 1.30% 1.16% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Operating efficiency ratio1 Operating ROA 8.7% 11.3% 11.7% 13.6% 11.7% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 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 6 $ in millions. *Non-GAAP Financial Measure. 1Presented on a fully tax equivalent basis. Net interest margin QoQ changes in FTE net interest income* Q3 2025 Q2 2025 Change Avg. Balance Cost Avg. Balance Cost Avg. Balance Cost Savings $ 1,584 0.30 % $ 1,632 0.30 % $ (48) — % Interest checking 4,431 0.99 % 4,410 0.92 % 21 0.07 % Money market 6,191 2.46 % 5,894 2.29 % 297 0.17 % Time deposits 3,282 3.84 % 3,228 3.94 % 54 (0.10) % Total I.B. deposits 15,487 2.11 % 15,164 2.03 % 323 0.08 % Borrowings 48 3.30 % 66 3.67 % (18) (0.37) % Total I.B. liab. 15,536 2.11 % 15,230 2.04 % 306 0.07 % DDA 5,636 5,662 (26) Total deposits 21,124 1.55 % 20,826 1.48 % 298 0.07 % Funding sources Q3 2025 Q2 2025 Change Avg. Balance Yield1 Avg. Balance Yield1 Avg. Balance Yield1 Commercial loans $ 12,858 5.45 % $ 12,533 5.59 % $ 325 (0.14) % Residential loans 3,893 4.41 % 3,889 4.46 % 4 (0.05) % Consumer loans 1,697 6.74 % 1,654 6.68 % 43 0.06 % Total loans 18,448 5.35 % 18,077 5.45 % 371 (0.10) % Securities 4,734 3.03 % 4,832 3.02 % (98) 0.01 % Cash 311 4.20 % 229 4.14 % 82 0.06 % Total I.E. assets 23,494 4.87 % 23,137 4.93 % 357 (0.06) % Earning assets $174.6 $184.0 $193.5 $206.8 $205.4 2.97% 3.05% 3.38% 3.59% 3.47% NII - FTE NIM - FTE Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FTE net interest income and margin trend $206.8 $3.3 $0.7 $(5.7) $0.2 $205.4 3.59% 3.47% Q2 2025 Loans Inv. & cash DepositsBorrowingsQ3 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 7 Noninterest income Q3 2025 Q2 2025 Q3 2024 QoQ YoY Investment advisory fees $ 17.6 $ 17.3 $ 14.9 $ 0.3 $ 2.6 Service charges on deposit accounts 8.6 8.2 8.1 0.3 0.4 Card income 4.2 4.2 4.4 (0.1) (0.2) Interest rate swap income 0.9 1.0 0.6 (0.1) 0.3 Income from investments held in rabbi trusts 3.8 5.7 3.6 (1.9) 0.2 Gains (losses) on sales of mortgage loans held for sale 0.1 (0.1) (0.4) 0.2 0.5 Miscellaneous income and fees 4.6 5.9 5.3 (1.2) (0.6) Non-operating income 1.5 0.6 (3.0) 0.9 4.5 Total noninterest income $ 41.3 $ 42.9 $ 33.5 $ (1.6) $ 7.7 Total operating noninterest income* $ 39.7 $ 42.2 $ 36.5 $ (2.5) $ 3.2 • Noninterest income decreased $1.6 million linked quarter • Non-operating income increased $0.9 million from Q2 2025 • Operating noninterest income decreased $2.5 million linked quarter • $1.9 million decrease in income from investments held for employee retirement benefits. Decrease partially offset by $1.0 million in lower benefit costs reported in noninterest expense • $1.2 million decrease in miscellaneous income and fees • These decreases were partially offset by $0.3 million increases in both investment advisory fees and service charges on deposit accounts $ 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 8 $8,353 $8,309 $8,442 $8,718 $9,233 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Assets under management (AUM) AUM asset allocation 63% 29% 7%1% Equity Fixed IncomeCash OtherFees $14.9 $18.0 $16.4 $17.3 $17.6 41% 49% 48% 41% 44% Fees Fees as a % of total operating noninterest income Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $ in millions. • AUM increased to a record high of $9.2 billion • Fees increased $0.3 million or 2% from Q2 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 9 $159.8 $137.5 $130.1 $137.0 $140.4$132.2 $134.0 $130.1 $134.4 $137.2 Noninterest expense Operating noninterest expense Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Noninterest expense $ in millions. *Non-GAAP Financial Measure. • Noninterest expense increased $3.5 million linked quarter • Merger costs increased $0.6 million from Q2 2025 • Operating noninterest expense increased $2.8 million linked quarter • $3.3 million increase in salaries and employee benefits • $1.4 million increase in technology and data processing • $0.5 million increase in occupancy and equipment • These increases were partially offset by a $2.3 million decrease in other operating expenses Q3 2025 Q2 2025 Q3 2024 QoQ YoY Salaries and employee benefits $ 84.0 $ 80.7 $ 80.6 $ 3.3 $ 3.4 Technology and data processing 19.8 18.4 18.1 1.4 1.7 Occupancy and equipment 11.7 11.2 11.8 0.5 (0.1) Professional services 3.0 3.0 3.5 — (0.5) FDIC Insurance 3.5 3.8 3.2 (0.3) 0.3 Marketing expenses 2.7 2.4 1.5 0.3 1.2 Amortization of intangible assets 7.8 7.8 6.2 — 1.6 Other operating expense 4.7 7.0 7.2 (2.3) (2.5) Non-operating expense 3.2 2.6 27.6 0.6 (24.4) Total noninterest expense $ 140.4 $ 137.0 $ 159.8 $ 3.5 $ (19.4) Total operating noninterest expense* $ 137.2 $ 134.4 $ 132.2 $ 2.8 $ 5.0
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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 • Period-end deposits decreased less than 1% linked-quarter, driven primarily by lower checking balances, partially offset by an increase in money market and CD balances. Average balances increased 1.4% • Deposit costs increased 7 basis points primarily due to higher money market costs • Favorable deposit mix highlighted by 47% of deposits in checking • Fully deposit funded with no wholesale funding Period-end deposit balances Cost of depositsHigh quality deposit portfolio 1.82% 1.69% 1.48% 1.48% 1.55% 2.49% 2.33% 2.04% 2.03% 2.11% Interest-bearing deposit costTotal deposit cost Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Deposits $ in billions. 49% 50% 50% 49% 47% 26% 27% 27% 28% 30% 8% 8% 8% 8% 7% 17% 15% 15% 15% 16% CD Sav MMDA Checking Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025 $21.2 $21.3 $20.8 $21.2 $21.1 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 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 11 • Loans increased $239 million, or 1.3% linked quarter • Commercial increased $201 million, primarily driven by higher CRE and C&I activity • Residential decreased $5 million • Consumer increased $43 million primarily due to higher HELOC balances • Year-to-date, loans have increased $750 million, or 4.1%, driven primarily by strong commercial lending results Loan portfolio Commercial loan composition $18,064 $18,079 $18,204 $18,590 $18,829 $12,350 $12,359 $12,501 $12,850 $13,051 $4,081 $4,064 $4,039 $4,016 $4,011 $1,634 $1,657 $1,665 $1,723 $1,767 Total commercial Residential real estate Total Consumer Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025Loan trends 29% 57% 4% 11% Commercial and industrialCommercial real estate Commercial constructionBusiness banking $ in millions. Charts may not foot due to rounding
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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 Securities portfolio Investment composition as of September 30, 20251Portfolio trends1 63% 29% 1%6%1% Agency RMBS Agency CMBS Treasuries Munis Corporate Debt $ in billions. 1Includes both AFS and HTM portfolios at amortized cost. $5.2 $5.2 $4.9 $4.8 $4.7 $4.8 $4.8 $4.4 $4.3 $4.2 $0.4 $0.4 $0.4 $0.5 $0.5 AFS securities HTM securities Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 • High quality portfolio with 93% in US Agency securities and Treasury bonds • Portfolio yield of 3.03% in Q3 2025, up 1 basis point from Q2 2025 • AFS unrealized loss was $280 million after tax, compared to $313 million at June 30, 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 13 Capital1 Regulatory capital ratios as of September 30, 2025 *Non-GAAP Financial Measure. 1Regulatory capital ratios as of September 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. 12.3% 14.7% 14.7% 15.8% 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 9/30/2025 6/30/2025 9/30/2024 Tier 1 leverage ratio 12.3% 12.1% 12.6% Common equity tier 1 ("CET1") capital ratio 14.7% 14.4% 15.5% Tier 1 capital ratio 14.7% 14.4% 15.5% Total risk-based capital ("RBC") ratio 15.8% 15.5% 16.6% Tangible common equity ratio* 11.4% 10.8% 10.7% Tangible book value per share* $13.14 $12.53 $12.17 • Continue to generate capital - capital ratios increased linked quarter. CET1 ratio and TCE ratio of 14.7% and 11.4%, respectively • Robust capital position provides significant support for organic growth and capital management strategies • Announced authorization of share repurchase program • 11.9 million shares, but not more than 5% of shares post merger close • Expires on Oct. 31, 2026 • Declared quarterly cash dividend of $0.13 per share payable on December 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 14 Net charge-offs Non-performing loans Asset quality $ in millions. • Non-performing loans of $69 million, or 0.37% of total loans, increased $14 million linked quarter • Commercial: $51 million • Residential: $11 million • Consumer: $7 million • Allowance for loan losses: $233 million • 1.26% of total loans and 337% of NPLs $125 $136 $92 $55 $69 0.70% 0.76% 0.51% 0.30% 0.37% NPLs ($) NPLs / total loans (%) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Commercial criticized & classified loans $829 $595 $597 $459 $495 6.78% 4.86% 4.82% 3.60% 3.82% Criticized & Classified ($)Criticized & Classified (%) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $5 $32 $11 $— $6 0.12% 0.71% 0.26% —% 0.13% NCOs ($) NCOs / avg. loans (%) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 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 15 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 Q3 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 $ 2,680 36 % $ 4.8 88 % — % Retail 942 13 % 3.1 88 % 1.0 % Office 937 13 % 3.6 99 % 3.1 % Industrial/ Warehouse 752 10 % 3.1 94 % — % Affordable housing 640 9 % 3.7 94 % 0.9 % Education 323 4 % 5.2 70 % — % Self storage 249 3 % 5.8 75 % — % All others 903 12 % 2.8 93 % — % Total CRE $ 7,426 100 % $ 3.8 90 % 0.6 % $93 $103 $58 $25 $44 1.3% 1.5% 0.8% 0.4% 0.6% NPLs ($) NPL / total CRE loans (%) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 • CRE portfolio of $7.4 billion, or 39% of total loans • Non-owner occupied CRE to total risk-based capital ratio2 of 207% • 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: $316 million or 4.3% of total CRE loans, compared to $287 million or 4.0% in prior quarter • Non-performing loans: $44 million, or 0.6% of total CRE loans, compared to $25 million, or 0.4% in prior quarter • 88% of loans mature in 2027 or later • See slide 16 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 16 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 $ — $ 5 Class B/C 747 4 93 28 10 Total $ 813 $ 4 $ 138 $ 28 $ 15 $ 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: $813 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: 57% at origination • Maturities proactively managed: 1% remaining in 2025, 15% in 2026 and 84% in 2027 or later • 100% in our footprint and 65% in suburban areas • Criticized or classified: $138 million, or 17% of CRE investor office loans • Adequately reserved: $41 million, or 5.1% of CRE investor office, including specific reserves of $15 million • Thorough ongoing risk-based reviews on the office portfolio Maturity schedule 4Q25 1Q26 2Q26 3Q26 Accruing $ 10 $ 31 $ 20 $ 7 Non-accruing — 19 — — Total $ 10 $ 50 $ 20 $ 7
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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.