Eastern Bankshares, Inc.

Investors in Eastern Bankshares Inc (Symbol: EBC) saw new options become available today, for the September 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EBC options chain for the new September 19th contracts and identified the following put contract of particular interest.
The put contract at the $15.00 strike price has a current bid of 5 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $14.95 (before broker commissions). To an investor already interested in purchasing shares of EBC, that could represent an attractive alternative to paying $15.80/share today.
Because the $15.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.33% return on the cash commitment, or 1.90% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Eastern Bankshares Inc, and highlighting in green where the $15.00 strike is located relative to that history:
The implied volatility in the put contract example above is 67%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $15.80) to be 34%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EBC September 19th Options Begin Trading

On Wednesday, at the Bernstein Conference, Wells Fargo & Company’s WFC CEO Charlie Scharf expressed confidence in the bank’s regulatory improvements, signalling that the bank is inching closer to the point of lifting the $1.95 trillion asset cap.
In 2018, the Federal Reserve imposed the asset cap on Wells Fargo following the bank’s fake accounts scandal, which surfaced in 2016. The asset cap was introduced as a penalty for governance failures, restricting the bank’s ability to expand its balance sheet until it demonstrated sufficient improvements in risk management and compliance.
WFC’s Regulatory Progress Toward Solving Compliance Issues
During the Bernstein conference, Scharf highlighted Wells Fargo’s continued efforts to strengthen its compliance framework. The bank has resolved six consent orders in 2024, bringing the total number of resolved regulatory actions since 2019 to 12. It has also allocated $2 billion annually to enhance risk controls and operational processes.
The bank is working to address the final two remaining consent orders. As the bank nears resolution, it is actively preparing to expand its retail deposits business, positioning itself for a new phase of growth once restrictions are lifted.
Parting Thoughts on Wells Fargo
Due to the asset cap, the company is unable to grow to its potential. This is affecting its loan growth. Given that loans are among the largest assets a bank can hold, the lifting of the asset cap will mark a positive turning point for Wells Fargo. This move will allow the bank to offer loans without restrictions, supporting the top-line expansion and positioning the bank for long-term growth.
Further, WFC’s long-term strategy remains focused on expanding deposits and trading operations, reinforcing growth through continued compliance enhancements and operational improvements.
Additionally, the bank is taking a strategy centered on balancing sustainable growth with robust returns, aiming to achieve a return on tangible common equity (ROTCE) of 15% in 2025. The bank’s strategy includes organic expansion, with a focus on dividend increases and share buybacks to enhance capital efficiency. To further support its growth objectives, the bank is making significant investments in technology and artificial intelligence, aimed at streamlining operations, improving risk management, and driving future business development.
WFC’s Price Performance & Zacks Rank
Over the past year, shares of WFC have gained 24.1% compared with the industry’s growth of 28.2%.
Image Source: Zacks Investment Research
Wells Fargo currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked bank stocks are Westamerica Bancorp WABC and Eastern Bankshares EBC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WABC’s earnings has remained unchanged over the last seven days for 2025. Shares of WABC have gained 0.2% over the past six months.
Earnings estimates for EBC have remained unchanged over the past seven days for 2025. In the past six months, EBC shares have gained 10.5%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wells Fargo's CEO Shows Confidence Over $1.95T Asset Cap Potential End

Looking at the universe of stocks we cover at Dividend Channel, on 3/4/25, Eversource Energy (Symbol: ES), Eastern Bankshares Inc (Symbol: EBC), and Ryan Specialty Holdings Inc (Symbol: RYAN) will all trade ex-dividend for their respective upcoming dividends. Eversource Energy will pay its quarterly dividend of $0.7525 on 3/31/25, Eastern Bankshares Inc will pay its quarterly dividend of $0.12 on 3/14/25, and Ryan Specialty Holdings Inc will pay its quarterly dividend of $0.12 on 3/18/25. As a percentage of ES's recent stock price of $62.41, this dividend works out to approximately 1.21%, so look for shares of Eversource Energy to trade 1.21% lower — all else being equal — when ES shares open for trading on 3/4/25. Similarly, investors should look for EBC to open 0.68% lower in price and for RYAN to open 0.17% lower, all else being equal.
Below are dividend history charts for ES, EBC, and RYAN, showing historical dividends prior to the most recent ones declared.
Eversource Energy (Symbol: ES):
Eastern Bankshares Inc (Symbol: EBC):
Ryan Specialty Holdings Inc (Symbol: RYAN):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.82% for Eversource Energy, 2.72% for Eastern Bankshares Inc, and 0.69% for Ryan Specialty Holdings Inc.
In Friday trading, Eversource Energy shares are currently off about 1.7%, Eastern Bankshares Inc shares are up about 0.3%, and Ryan Specialty Holdings Inc shares are up about 1.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Eversource Energy, Eastern Bankshares and Ryan Specialty Holdings

For Immediate Release
Chicago, IL – February 7, 2025 – Stocks in this week’s article are — Bridgewater Bancshares, Inc. BWB, Eastern Bankshares, Inc. EBC and BrainsWay Ltd. BWAY.
3 Top-Ranked Breakout Stocks to Buy Now: BWB, EBC, BWAY
Searching for breakout stocks within a specific price band is an active investing strategy. Consider selling if the price falls below the lower band and holding for gains if it exceeds the upper band when choosing breakout stocks.
To that end, Bridgewater Bancshares, Inc., Eastern Bankshares, Inc. and BrainsWay Ltd. have been selected as the breakout stocks for today.
Zeroing-In on Breakout Stocks
To pick a breakout stock, calculate support and resistance levels. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades at within a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. Most traders are willing to go long on the stock at the resistance level, meaning they would like to add them to their portfolio. The key to identifying breakout stocks is to zero in on those on the verge of a breakout or those that have just broken above the resistance level.
Has a Genuine Breakout Occurred?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.
For a bona fide breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance.
These criteria narrow the universe of more than 6,853 stocks to only nine. Here are the top three stocks:
Bridgewater Bancshares
Bridgewater Bancshares offers banking services to various clients in the United States, including real estate investors and entrepreneurs. BWB has an expected earnings growth rate of 31.4% for the current year.
Eastern Bankshares
Eastern Bankshares offers banking products and services to retail, commercial, and small business customers. EBC has an expected earnings growth rate of 40.6% for the current year.
BrainsWay
BrainsWay develops and sells noninvasive neurostimulation treatments for mental health disorders globally. BWAY has an expected earnings growth rate of 130.8% for the current year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Bridgewater Bancshares, Eastern Bankshares and BrainsWay

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree Total U.S. Dividend Fund ETF (Symbol: DTD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $87.35 per unit.
With DTD trading at a recent price near $78.34 per unit, that means that analysts see 11.49% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DTD's underlying holdings with notable upside to their analyst target prices are Hecla Mining Co (Symbol: HL), Eastern Bankshares Inc (Symbol: EBC), and FB Financial Corp (Symbol: FBK). Although HL has traded at a recent price of $5.68/share, the average analyst target is 37.11% higher at $7.79/share. Similarly, EBC has 15.74% upside from the recent share price of $18.36 if the average analyst target price of $21.25/share is reached, and analysts on average are expecting FBK to reach a target price of $60.40/share, which is 14.37% above the recent price of $52.81. Below is a twelve month price history chart comparing the stock performance of HL, EBC, and FBK:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
WisdomTree Total U.S. Dividend Fund ETF
DTD
$78.34
$87.35
11.49%
Hecla Mining Co
HL
$5.68
$7.79
37.11%
Eastern Bankshares Inc
EBC
$18.36
$21.25
15.74%
FB Financial Corp
FBK
$52.81
$60.40
14.37%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Math Shows DTD Can Go To $87

The following companies are expected to report earnings after hours on 01/23/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Intuitive Surgical, Inc. (ISRG)is reporting for the quarter ending December 31, 2024. The medical instruments company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.41. This value represents a 19.49% increase compared to the same quarter last year. In the past year ISRG has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for ISRG is 111.80 vs. an industry ratio of 8.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Texas Instruments Incorporated (TXN)is reporting for the quarter ending December 31, 2024. The semiconductor company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.19. This value represents a 20.13% decrease compared to the same quarter last year. In the past year TXN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 8.09%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for TXN is 38.79 vs. an industry ratio of 36.00, implying that they will have a higher earnings growth than their competitors in the same industry.
CSX Corporation (CSX)is reporting for the quarter ending December 31, 2024. The transportation (rail) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.43. This value represents a 4.44% decrease compared to the same quarter last year. CSX missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -4.17%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for CSX is 18.16 vs. an industry ratio of 16.00, implying that they will have a higher earnings growth than their competitors in the same industry.
East West Bancorp, Inc. (EWBC)is reporting for the quarter ending December 31, 2024. The bank (west) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.13. This value represents a 5.45% increase compared to the same quarter last year. In the past year EWBC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.95%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for EWBC is 12.26 vs. an industry ratio of 20.40.
SouthState Corporation (SSB)is reporting for the quarter ending December 31, 2024. The financial services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.73. This value represents a 3.59% increase compared to the same quarter last year. In the past year SSB has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 13.77%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for SSB is 14.23 vs. an industry ratio of 12.90, implying that they will have a higher earnings growth than their competitors in the same industry.
SLM Corporation (SLM)is reporting for the quarter ending December 31, 2024. The financial services company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.54. This value represents a 25.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for SLM is 10.69 vs. an industry ratio of 14.80.
Columbia Banking System, Inc. (COLB)is reporting for the quarter ending December 31, 2024. The bank (west) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.65. This value represents a 47.73% increase compared to the same quarter last year. COLB missed the consensus earnings per share in the 4th calendar quarter of 2023 by -45%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for COLB is 10.82 vs. an industry ratio of 20.40.
Glacier Bancorp, Inc. (GBCI)is reporting for the quarter ending December 31, 2024. The bank (west) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.53. This value represents a 8.16% increase compared to the same quarter last year. GBCI missed the consensus earnings per share in the 1st calendar quarter of 2024 by -12.12%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for GBCI is 29.84 vs. an industry ratio of 20.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Associated Banc-Corp (ASB)is reporting for the quarter ending December 31, 2024. The bank (midwest) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.55. This value represents a 3.77% increase compared to the same quarter last year. In the past year ASB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for ASB is 11.87 vs. an industry ratio of 13.00.
Eastern Bankshares, Inc. (EBC)is reporting for the quarter ending December 31, 2024. The bank (northeast) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.30. This value represents a 200.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for EBC is 17.90 vs. an industry ratio of 11.90, implying that they will have a higher earnings growth than their competitors in the same industry.
First Financial Bancorp. (FFBC)is reporting for the quarter ending December 31, 2024. The bank (midwest) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.64. This value represents a 3.23% increase compared to the same quarter last year. In the past year FFBC has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for FFBC is 11.09 vs. an industry ratio of 13.00.
Customers Bancorp, Inc (CUBI)is reporting for the quarter ending December 31, 2024. The banks (southeast) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.24. This value represents a 34.74% decrease compared to the same quarter last year. CUBI missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -13.1%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for CUBI is 8.90 vs. an industry ratio of 6.30, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for January 23, 2025 : ISRG, TXN, CSX, EWBC, SSB, SLM, COLB, GBCI, ASB, EBC, FFBC, CUBI

Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Eastern Bankshares Inc (Symbol: EBC) were yielding above the 3% mark based on its quarterly dividend (annualized to $0.48), with the stock changing hands as low as $15.95 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Eastern Bankshares Inc (Symbol: EBC) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Eastern Bankshares Inc, looking at the history chart for EBC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
Click here to find out which 9 other dividend stocks just recently went on sale »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Eastern Bankshares (EBC) Passes Through 3% Yield Mark

Eastern Bankshares, Inc. (EBC) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -24.24%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.22, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Eastern Bankshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $203.38 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 5.81%. This compares to year-ago revenues of $156.36 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Eastern Bankshares shares have added about 17.5% since the beginning of the year versus the S&P 500's gain of 21.5%.
What's Next for Eastern Bankshares?
While Eastern Bankshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Eastern Bankshares: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $219.12 million in revenues for the coming quarter and $1.11 on $744.53 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Citizens (CIA), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended September 2024.
This insurance company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Citizens' revenues are expected to be $62.85 million, up 4.3% from the year-ago quarter.
Should You Invest in Eastern Bankshares, Inc. (EBC)?
Before you invest in Eastern Bankshares, Inc. (EBC), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Eastern Bankshares, Inc. (EBC) Q3 Earnings and Revenues Miss Estimates

U.S. Bancorp’s USB lead banking division, U.S. Bank, expands its focus on the healthcare industry with the acquisition of Salucro Healthcare Solutions LLC. The buyout was completed on Aug 21, 2024. The financial terms of the deal were kept under wraps.
Based in Tempe, AZ, Salucro is a provider of healthcare financial technology with a primary focus on patient payments and billing. Previously, Salucro had been a partner of Elavon, a subsidiary of U.S. Bank. In 2022, U.S. Bank made its initial investment in Salucro, and Salucro's platform was sold through Elavon as MedEpay.
The recent acquisition of Salucro extends the U.S. Bank's more than a century of service to healthcare-focused clientele. Following the acquisition, Salucro’s employees have now become a part of U.S. Bank and will be integrated into Elavon, one of the largest global payments processing firms.
U.S. Bank provides a wide range of banking and payment services tailored to healthcare organizations, including hospitals, insurers, medical equipment manufacturers, and providers like dental practices or veterinary hospitals.
Shares of USB have gained 8.2% in the past six months compared with the industry’s growth of 14.1%.
Image Source: Zacks Investment Research
At present, USB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bank's healthcare professionals deliver tailored innovative solutions that help clients of all sizes achieve their financial, operational, and investment objectives, allowing them to focus on their primary mission of serving patients.
“U.S. Bank is a leader in providing banking and payments services to the healthcare industry, making it easier for providers and patients to focus on what’s most important to them,” Shailesh Kotwal, vice chair of U.S. Bank Payment Services, stated. He further added, “Salucro’s robust billing and payment platform is an ideal complement to offerings we provide throughout U.S. Bank and Elavon.”
U.S. Bancorp has made several strategic acquisitions in the last few years, which have opened up new markets for the company while fortifying its existing markets. In 2022, U.S. Bancorp completed the acquisition of MUFG Union Bank’s core regional banking franchise, expanding its branch network and enjoying greater access to digital banking tools. In 2023, cost synergies of $900 million were realized from this merger. In 2021, it acquired San Francisco-based fintech firm TravelBank and Bento Technologies to accelerate its digital services.
Inorganic Expansion Efforts by Other Finance Firms
In the current month, Wintrust Financial Corporation WTFC acquired Macatawa Bank Corporation for $510.3 million or $14.85 per share. The merger agreement, which is not expected to have a material effect on WTFC’s 2024 earnings, was signed this April.
Per the terms of the deal, at the time of the merger, each of Macatawa’s 34,361,562 common shares outstanding were to be converted into the right to receive merger consideration paid in shares of Wintrust common stock.
In July, Eastern Bankshares Inc. EBC completed its merger with Cambridge Bancorp. The deal, announced in September 2023 with a 100% stock consideration, aligns with EBC’s inorganic growth strategy.
Per the terms of the deal, Cambridge shareholders received 4.956 shares of EBC common stock for each share of Cambridge common stock they own. Eastern Bankshares issued roughly 39.2 million shares of its common stock for the merger consideration.
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U.S. Bancorp's (USB) Arm Acquires Healthcare Payment Platform

Eastern Bankshares, Inc. (EBC) came out with quarterly earnings of $0.22 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.23, delivering a surprise of 15%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Eastern Bankshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $154 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $195.42 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Eastern Bankshares shares have added about 13.4% since the beginning of the year versus the S&P 500's gain of 13.8%.
What's Next for Eastern Bankshares?
While Eastern Bankshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Eastern Bankshares: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $224.76 million in revenues for the coming quarter and $1.17 on $766.16 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, SBA Communications (SBAC), has yet to report results for the quarter ended June 2024. The results are expected to be released on July 29.
This communications tower operator is expected to post quarterly earnings of $3.28 per share in its upcoming report, which represents a year-over-year change of +1.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SBA Communications' revenues are expected to be $664.54 million, down 2.1% from the year-ago quarter.
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Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.