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Eastern Bank’s (NASDAQ:EBC) Q2: Beats On Revenue

By: StockStory

July 24, 2025 at 16:49 PM EDT

EBC Cover Image

Regional banking company Eastern Bankshares (NASDAQ: EBC) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 59% year on year to $244.9 million. Its non-GAAP profit of $0.41 per share was 7.9% above analysts’ consensus estimates.

Is now the time to buy Eastern Bank? Find out by accessing our full research report, it’s free.

Eastern Bank (EBC) Q2 CY2025 Highlights:

Net Interest Income: $202 million vs analyst estimates of $203.4 million (57% year-on-year growth, 0.7% miss)
Net Interest Margin: 3.6% vs analyst estimates of 3.5% (95 basis point year-on-year increase, 10.5 bps beat)
Revenue: $244.9 million vs analyst estimates of $238.4 million (59% year-on-year growth, 2.7% beat)
Efficiency Ratio: 55.9% vs analyst estimates of 56.8% (0.9 percentage point beat)
Adjusted EPS: $0.41 vs analyst estimates of $0.38 (7.9% beat)
Market Capitalization: $3.22 billion

Company Overview

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees.

Thankfully, Eastern Bank’s 8.6% annualized revenue growth over the last five years was solid. Its growth beat the average bank company and shows its offerings resonate with customers.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Eastern Bank’s annualized revenue growth of 14% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Eastern Bank Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Eastern Bank reported magnificent year-on-year revenue growth of 59%, and its $244.9 million of revenue beat Wall Street’s estimates by 2.7%.

Net interest income made up 44.7% of the company’s total revenue during the last five years, meaning Eastern Bank’s growth drivers strike a balance between lending and non-lending activities.

Eastern Bank Quarterly Net Interest Income as % of Revenue

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

Eastern Bank’s TBVPS declined at a 8.3% annual clip over the last four years. However, TBVPS growth has accelerated recently, growing by 4.3% annually over the last two years from $11.51 to $12.53 per share.

Eastern Bank Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for Eastern Bank’s TBVPS to remain flat at roughly $12.62, a disappointing projection.

Key Takeaways from Eastern Bank’s Q2 Results

We enjoyed seeing Eastern Bank beat analysts’ revenue expectations this quarter. We were also happy its tangible book value per share outperformed Wall Street’s estimates. On the other hand, its net interest income slightly missed. Still, this print had some key positives. The stock remained flat at $15.77 immediately following the results.

So do we think Eastern Bank is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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