EBC Stock Forecast & Price Target

Eastern Bankshares is well positioned by its sustained loan growth, strong core deposit franchise, and expanding wealth management and fee-income base, all of which support a more diversified earnings profile. Profitability should benefit from disciplined expense control, a low-to-mid 50% efficiency ratio outlook by 2H27, and meaningful asset re-pricing that can offset funding pressure while helping net interest margin hold near the mid-3% range. Credit quality also looks solid, with nonperforming loans down to 0.36%, coverage at 1.39%, and continued share repurchases signaling confidence in excess capital and improving returns.

Eastern Bankshares is under pressure from weak deposit momentum and rising funding costs, with organic deposit growth relatively flat in 2025 and interest-bearing deposit costs up 9 bps as total deposits increased just $20M excluding the merger. Deposit trends worsened in 1Q26, when balances fell about $366M quarter over quarter amid seasonality and an elevated competitive environment, highlighting franchise strain in a key source of low-cost funding. At the same time, core noninterest expenses stepped up meaningfully after the HarborOne merger because of higher salaries and benefits from added headcount, while loan and deposit pricing competition, interest-rate risk, and any credit deterioration could further pressure returns and valuation.