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Eastern Bank Q3 net interest income rises on commercial loan growth

By Reuters News


Overview

  • U.S. regional bank's Q3 adjusted EPS beat analyst expectations

  • Company's net interest income rose, supported by commercial loan growth

  • Company returned $89.1 mln to shareholders, including $56.7 mln in buybacks


Outlook

  • Company notes commercial loan pipelines remain strong, but closings are slower amid interest rate uncertainty

  • Company says Wealth Management business is generating momentum, with a positive long-term outlook


Result Drivers

  • COMMERCIAL LENDING - Growth in commercial real estate and commercial & industrial lending drove total loan growth, though CRE payoffs remained a headwind

  • NET INTEREST INCOME - Higher net interest income was driven by balance sheet growth, but margin declined due to increased deposit costs

  • NONINTEREST INCOME DECLINE - Lower noninterest income reflected weaker equity market performance and fewer commercial loan sale gains


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$0.51

$0.49 (7 Analysts)

Q3 Net Income

$111 mln

Q3 Net Interest Income

$257.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Eastern Bankshares Inc is $24.50, about 13.9% above its October 21 closing price of $21.51

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 20 - Metropolitan Bank Q3 net interest margin rises on higher yields and loan payoffs

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

  • Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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