Oct 23, 2026 earnings call — Record operating earnings and loan growth update
Eastern reported record operating net income of $111 million, or $0.51 per diluted share.
Revenue $0.3B (est $0.3B) · EPS $0.51 (est $0.49)
Key quotes
"We reported record operating net income of $111 million, or $0.51 per diluted share, an increase of 4% linked quarter and 50% from a year ago, reflecting the enhanced earnings power of the company."
"The increase in period-end loan balances was primarily driven by strong commercial real estate originations and broad-based C&I growth."
"That commitment was evident again this quarter as we returned meaningful capital to shareholders through both share repurchases and quarterly dividend while continuing to support organic growth opportunities."
Analyst Q&A 6
loan growth and guide
Q (Damon DelMonte · Keefe, Bruyette & Woods): He asked if customer pause in C&I lending changes the full-year outlook. He also asked about CRE payoffs and whether securities increases were from last quarter or this quarter.
A: Management said the pipeline remains robust and C&I is the largest part of it. They noted higher rates slow conversations and deal speed somewhat but they remain optimistic and are sticking to this year's targets. On securities, they said reinvestment has been ongoing and purchases were made both last quarter and this quarter.
"We've more conversations with clients about the fact that rates have gone up, and so it does slow things down somewhat, but we're still optimistic overall and certainly regarding the targets we provided for this year." — Denis Sheahan (CEO)
deposit pressure and credit quality
Q (Justin Crowley · Piper Sandler): He asked how deposit competition and rate moves affect future deposit costs and margins. He also asked whether the bank is tightening credit and where acquired-portfolio cleanup stands.
A: They said deposit pressure has broadened and could continue into Q4 and next year if more Fed tightening happens. They believe fixed-rate asset repricing will outpace deposit cost increases, helping margin, and said their credit box is tight so borrowers can add equity; non-performers are down to 36 basis points and mostly worked through.
"We believe that the fixed-rate asset repricing will outpace deposit cost increases, leading to a slightly better margin." — David Rosato (CFO)
NIM and yields
Q (Feddie Strickland · Hovde Group): He asked whether the directional NIM guide assumes more rate hikes and if fixed-rate repricing still beats funding cost in that case. He also asked yields on new securities and where loans are repricing.
A: They said the directional NIM guidance does include additional rate hikes and the conclusion still holds. On securities, they are buying assets that yield about 6%-6.5% depending on type, and loan spreads remain roughly 175-200 basis points across core CRE and C&I.
"Yes, it does include additional rate hikes, and the conclusion still holds." — David Rosato (CFO)
loan-to-deposit and deposit cost
Q (Tyler Cacciatori · Stephens): He asked if a slow deposit recovery would force the bank to slow loan growth and for the spot cost of deposits.
A: They said they have $2 billion more deposits than loans on their balance sheet and are focused on growing deposits, but deposits are not a constraint on loan growth today. Spot cost of deposits was 156 for the quarter and 159 at the end of September.
"But if you look at our 930 balance sheet, we have $2 billion more deposits than we have loans today." — David Rosato (CFO)
tech spend, branches, M&A
Q (Laurie Hunsicker · Seaport Research Partners): She asked about spot margin, tech/AI spending plans and branch rationalization. She also asked about whole-bank M&A interest.
A: They said spot margin for September was 3.62. Tech and AI spending has risen modestly and they are budgeting for more, but they expect to absorb it and keep year-over-year expenses under control. On branches there is no broad rationalization plan; decisions are made market by market. On M&A, they said they are not focused on whole-bank deals and are prioritizing profitability and returning capital.
"At the end of the day, we will be able to absorb that in our full expense base in a manner that puts year-over-year expenses well under control." — David Rosato (CFO)
guidance and deposit beta
Q (Jared Shaw · Barclays Capital): He asked whether removing the guidance slide means guidance was removed and whether prior guidance still stands. He also asked about expected deposit beta and commercial competition after consolidation.
A: They said they follow a practice of issuing guidance in January and a mid-year update in July, and they have not changed the July guidance for full-year 2026. They expect to achieve historical 50% deposit betas and noted industry moves happened before the Fed this cycle. On commercial competition, they said consolidation has helped them attract talent, keep an elevated pipeline, and position them to take share absent higher rates.
"Our goal, our thought today is we will be able to achieve the historic 50% deposit betas that we did in the last up cycle." — David Rosato (CFO)