Eastern Bankshares, Inc. (EBC): Business Model Canvas [Dec-2025 Updated]

You're looking at a major shift in New England banking, and frankly, understanding the engine behind Eastern Bankshares, Inc. (EBC) right after its big HarborOne merger, effective November 2025, is key to seeing where they're headed. This new entity is a $30 billion pro forma powerhouse, still anchored by a core Net Interest Income stream that made up 78.6% of their revenue, even as they manage integration and boast $9.2 billion in AUM from their wealth division. We've mapped out the nine essential blocks of their Business Model Canvas-from their 110 physical locations to their disciplined 0.37% non-performing loan ratio-so you can see exactly how Eastern Bankshares, Inc. (EBC) plans to make this regional expansion work. Dive in below to see the structure driving their next chapter.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Key Partnerships

You're looking at the key relationships Eastern Bankshares, Inc. (EBC) relies on to deliver its value proposition, especially following the major integration with HarborOne Bancorp, Inc. (HONE).

The most recent, significant partnership event was the merger completion:

As of September 30, 2025, Eastern Bank (the surviving entity's primary bank) held approximately $25.5 billion in total assets, while HarborOne operated 30 banking centers prior to the merger.

For the digital platforms, Eastern Bank has established technology partnerships to modernize its operations. This includes leveraging external expertise for its engagement layer and cloud infrastructure:

• Platform Modernization Partner: Backbase
• Cloud Infrastructure Partner: Microsoft Cloud for Financial Services and Power Platform

The wealth management segment, which relies on internal expertise and affiliated structures, manages significant client assets. The Cambridge Trust Wealth Management division and Private Banking divisions include the largest bank-owned independent investment adviser in Massachusetts, managing $9.2 billion in assets under management as of September 30, 2025.

Community support is a core partnership area, fueled by the Eastern Bank Foundation. The scale of this commitment is substantial:

• Total Charitable Giving Since 1994: Over $240 million.
• Volunteerism Since 1994: More than 500,000 employee volunteer hours.
• Ranking: Regularly ranked among the Top 10 most charitable companies in the region by the Boston Business Journal (most recently for the 12th time).

Regarding correspondent banks, regulatory frameworks dictate restrictions on transactions with affiliates, including the cessation of receiving deposits from correspondent banks if the institution becomes 'significantly undercapitalized'. No specific financial amounts related to these service contracts are publicly detailed.

Finance: draft 13-week cash view by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Key Activities

You're looking at the core engine of Eastern Bankshares, Inc. (EBC) right as it closes a major deal. The key activities are all about executing on lending, keeping deposits sticky, growing the fee-based wealth business, and successfully absorbing HarborOne Bancorp.

The lending engine is definitely focused on the commercial side. For the third quarter ending September 30, 2025, total loans stood at $18.8 billion. That growth in the quarter was powered by new originations, specifically seeing $133 million in commercial real estate (CRE) and $104 million in commercial and industrial (C&I) lending added to the books. To give you some context on the portfolio mix, going back to the end of 2024, CRE loans made up 39.6% of the total loan book.

Deposit gathering is crucial for funding that loan book. As of September 30, 2025, period-end deposits for Eastern Bankshares were $21.1 billion. The bank has been successful in attracting specific types of balances; for instance, in the second quarter of 2025, deposits grew by $423.7 million, driven primarily by higher municipal balances. Overall, since the 2020 IPO, the deposit market share has roughly doubled, moving from 3.7% to 7.2%.

The wealth management segment is a high-growth activity, providing important fee income. As of the third quarter of 2025, Assets Under Management (AUM) hit a record high of $9.2 billion. That represents a massive 241% increase from the $2.7 billion in AUM at the time of the 2020 IPO. Investment advisory fees specifically contributed $17.6 million in Q3 2025.

The immediate, massive activity is managing the integration of HarborOne Bancorp, which closed on November 1, 2025. This merger is intended to create a larger, locally-based organization with a pro forma asset size targeting $30 billion. On a pro forma basis as of September 30, 2025, the combined entity would have had approximately 238,450,578 shares of Eastern common stock outstanding.

Underpinning all of this is disciplined credit underwriting and compliance. You can see the quality focus in the non-performing loan (NPL) ratio. As of September 30, 2025, NPLs were $54.7 million, representing 0.30% of total loans. The allowance for loan losses stood at $232.1 million as of June 30, 2025, which was 1.27% of total loans. The bank is also returning capital to shareholders, having declared a quarterly cash dividend of $0.13 per common share in Q3 2025.

Here's a quick look at the balance sheet and profitability metrics surrounding these activities as of Q3 2025:

The operational focus is also reflected in expense management. The operating efficiency ratio improved to 52.8% in Q3 2025, down from 59.7% compared to Q3 2024.

You should review the integration plan timeline for the HarborOne mortgage operations, as the plan is to merge HarborOne Mortgage into Eastern Bank by February 2026. Finance: draft the 13-week cash view incorporating the expected Q4 accretion from the merger by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Key Resources

You need to know what Eastern Bankshares, Inc. (EBC) is actually standing on as a foundation. These are the hard assets and capabilities that drive the business model right now, late in 2025.

The balance sheet strength is clear. As of September 30, 2025, Eastern Bankshares, Inc. reported total assets of approximately $25.5 billion. That's the scale of the operation you're looking at.

The wealth management arm is a significant, growing piece. The Cambridge Trust Wealth Management division hit a record high in the third quarter of 2025. Its assets under management (AUM) reached $9.2 billion as of September 30, 2025.

Here's a quick look at the scale of the physical footprint and key financial markers from that same period:

The physical presence supports the local strategy. Eastern Bank operates approximately 110 branch locations. These locations serve communities across eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island.

That physical network is backed by deep intangible assets. You see this in their long-term commitment to the region. Eastern Bankshares has given more than $240 million in charitable giving since 1994. That kind of history builds deep local market knowledge and a strong community reputation, which is defintely hard to replicate quickly.

The human capital is focused on growth areas. The commercial lending division shows strength, reflecting the impact of strategic talent hires. This experienced commercial lending and wealth management talent is crucial for driving the $18.8 billion loan portfolio.

You can see the focus on talent and scale in these operational highlights:

• Commercial and Industrial (C&I) loan growth was nearly 6% year-to-date (as of Q3 2025).
• Investment advisory fees for wealth management reached $17.6 million in Q3 2025.
• The company is preparing to integrate HarborOne, which will expand its presence further in Massachusetts and Rhode Island.

Finance: draft 13-week cash view by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose Eastern Bankshares, Inc. (EBC) over the competition, especially now that the HarborOne integration is complete. The value proposition centers on being a full-spectrum provider with a distinct community focus, all backed by a solid financial footing.

Full-service banking for consumers and businesses of all sizes

Eastern Bankshares, Inc. offers comprehensive banking and wealth management solutions. This means you can handle your personal checking account, secure a commercial loan, and manage complex trust needs all under one roof. Before the recent merger, Eastern Bank already had approximately 110 branch locations serving communities across eastern Massachusetts, southern and coastal New Hampshire, Rhode Island, and Connecticut. The bank is a top SBA lender, having been the No. 1 SBA 7(a) lender in Massachusetts for the 16th consecutive year, producing 305 loans totaling approximately $37.9 million in the SBA fiscal year ending September 30, 2024.

Largest bank-owned independent investment advisor in Massachusetts

The wealth management arm, Cambridge Trust Wealth Management, a Division of Eastern Bank, holds a leading position in the state. This isn't just a small add-on; it's a significant part of the offering. As of Q3 2025, the firm achieved a record high of $9.2 billion in assets under management (AUM). This recognition as the largest bank-owned independent investment adviser in Massachusetts was confirmed by the Boston Business Journal for the second year in a row in September 2025.

Here's a quick look at the growth in that segment:

• Assets Under Management (AUM) as of July 15, 2025: $8.7 billion.
• Assets Under Management (AUM) as of Q3 2025: $9.2 billion.
• Investment advisory fees in Q3 2025: $17.6 million.

Community-focused mission and commitment to equitable and just communities

A core differentiator for Eastern Bankshares, Inc. is its deep-rooted community commitment. This isn't abstract; it shows up in concrete giving. Since 1994, the bank has contributed more than $240 million in charitable giving. Furthermore, the bank was recognized in the top 10 of the Boston Business Journal's Most Charitable Companies list in 2025, marking the 14th time for that recognition.

Strong balance sheet and disciplined credit management

You want to know the quality of the assets backing the bank's services. As of the third quarter of 2025, Eastern Bankshares, Inc. maintained excellent asset quality metrics, even with a slight uptick in non-performing loans (NPLs) due to a specific commercial credit issue. Non-performing loans totaled $69.2 million, which represented 0.37% of total loans in Q3 2025. This compares favorably to the 0.70% NPL ratio reported in Q3 2024. The bank also maintained strong reserves, with the allowance for loan losses at 1.26% of loans as of quarter end. The bank also emphasized it remains fully deposit funded with essentially no wholesale funding.

The credit profile as of September 30, 2025, looks like this:

Expanded regional footprint following the HarborOne merger

The merger with HarborOne Bancorp, which closed on November 1, 2025, significantly increases Eastern Bankshares, Inc.'s scale and geographic reach, solidifying its leading position in Greater Boston and adding entry into Rhode Island. This combination creates a much larger regional entity. Here's the scale before the final numbers settle:

• Eastern Bank Total Assets (as of 9/30/2025): Approximately $25.5 billion.
• HarborOne Total Assets (as of 3/31/2025): Approximately $5.7 billion.
• Pro Forma Total Assets (approximate): Over $31 billion.
• Projected EPS Accretion from Merger: 16%.

The integration of HarborOne's 30 banking centers in Massachusetts and Rhode Island immediately broadens the physical footprint for Eastern Bankshares, Inc.. Finance: draft 13-week cash view by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Customer Relationships

Dedicated relationship managers for commercial and wealth clients

Eastern Bankshares, Inc. increased the number of relationship managers by approximately 10% over the past year. Eastern Bankshares, Inc. (EBC) has seen its Wealth Management assets under management (AUM) reach a record high of $9.2 billion as of the third quarter of 2025. Eastern Bankshares, Inc. (EBC)'s wealth management franchise has seen AUM increase 241% from $2.7 billion at the time of its 2020 Initial Public Offering. The commercial portfolio grew just under 6% since the beginning of 2025, with the pipeline ending the quarter at approximately $575 million.

Key Wealth Management Metrics (Q3 2025):

The company has been pleased with the strong retention of clients and talent following the integration of Cambridge Trust wealth teams.

High-touch, personalized service model in branch locations

The retail branch network is becoming a meaningful driver of referrals, with retail generating more funded wealth business in the first half of 2025 than Eastern Bankshares, Inc. (EBC) achieved in any prior full year. Eastern Bankshares, Inc. (EBC) is described as an inclusive company comprised of deeply committed professionals who value relationships with their customers, colleagues and communities.

Automated, self-service digital banking and mobile applications

Technology and data processing expenses for Eastern Bankshares, Inc. (EBC) were $18.4 million for the three months ended June 30, 2025.

Community-centric approach through the Eastern Bank Foundation

Since its inception 31 years ago, the Eastern Bank Foundation has invested more than $180 million in Massachusetts, New Hampshire, Rhode Island and Connecticut. The Foundation has supported more than 7,000 unique organizations with over 36,000 grants. Eastern Bank employees have devoted more than 730,000 volunteer hours since 1994. The Foundation shifted its philosophy to one rooted in collaboration, moving from a model of solely charitable giving to one that includes impact investing.

Eastern Bank Foundation Financials (FYE 2024):

Long-term, definitely sticky deposit relationships

Total deposits for Eastern Bankshares, Inc. (EBC) were $21.1 billion as of September 30, 2025. The total deposit market share for Eastern Bankshares, Inc. (EBC) has roughly doubled from 3.7% to 7.2% since the 2020 IPO. The cost of total interest-bearing liabilities was 2.11% in the third quarter of 2025. The total deposit cost was reported at 1.55% in the third quarter of 2025.

Deposit Composition Highlights (Q1 2025):

• Deposit growth was 8% annualized.
• Nearly 50% of deposits were in low-cost checking accounts.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Channels

You're looking at how Eastern Bankshares, Inc. gets its services-from deposits to complex wealth advice-into the hands of its customers across New England. It's a mix of old-school presence and modern digital tools, which is typical for a leading local bank.

The physical footprint remains a core channel. As of September 30, 2025, Eastern Bank maintained approximately 110 branch locations serving communities across eastern Massachusetts, southern and coastal New Hampshire, Rhode Island, and Connecticut. This physical network supports the bank's total asset base of $25.5 billion as of that same date.

Digital channels are essential for daily banking, handling everything from retail transactions to business cash management. While specific adoption rates for 2025 aren't public, the bank clearly supports these platforms for its customer base.

For commercial clients, the relationship managers are the primary channel. The commercial lending teams are heavily focused on the Commercial & Industrial (C&I) and Commercial Real Estate (CRE) markets. This focus drove period-end loans to grow at an 8% annualized rate in the second quarter of 2025, with C&I activity being the main driver of that growth.

Wealth Management is a distinct channel delivered through the Cambridge Trust division. This segment saw significant growth, reaching a record high of $9.2 billion in assets under management (AUM) by the third quarter of 2025. That channel generated $17.6 million in investment advisory fees during Q3 2025.

Here's a quick look at the scale of the key channels as of the latest reporting periods:

Beyond direct interaction points, Eastern Bankshares, Inc. relies on the standard infrastructure supporting transactions:

• ATM network access for cash services.
• Third-party payment processors for clearing and settlement functions.
• Digital platforms for self-service retail and business cash management.

The bank's strategy clearly channels resources toward high-touch advisory services, evidenced by the growth in AUM, while maintaining a broad physical presence to serve its core deposit and lending base across its established footprint. If onboarding for new commercial clients takes longer than expected, loan pipeline conversion risks rise.

Finance: draft 13-week cash view by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Customer Segments

You're looking at the core groups Eastern Bankshares, Inc. (EBC) serves as of late 2025, right after closing the HarborOne merger. This bank is the largest independent one headquartered in Massachusetts, with operations spanning Massachusetts, New Hampshire, and Rhode Island.

The overall scale is significant; as of September 30, 2025, total assets stood at $25.5 billion. Their deposit market share in Greater Boston has roughly doubled since the 2020 IPO, hitting 7.2%.

Here's a breakdown of the key customer groups EBC targets:

• Retail Consumers in Eastern Massachusetts, New Hampshire, and Rhode Island
• Small to mid-sized businesses (SMBs) requiring C&I and cash management
• Commercial Real Estate (CRE) investors and developers
• High-net-worth individuals and families for wealth management
• Municipalities and non-profits with large deposit balances

The deposit base is a critical resource, totaling $21.1 billion at the end of Q3 2025. You'll notice the mix is quite stable, which management likes because it keeps funding costs manageable, even with regional competition.

For the SMBs, the commercial lending engine is strong. Total loans grew to $18.8 billion by Q3 2025. In Q2 2025, period-end loans showed 8% annualized growth, largely fueled by C&I activity. The pipeline for that business was steady around $500 million back in Q2 2025.

The CRE segment has specific concentrations you should watch. While the total CRE book is $7.2 billion, the multifamily portion, considered a strong asset class in Greater Boston, accounts for $2.5 billion of that. However, non-performing loans did tick up by $14 million linked-quarter in Q3 2025, mainly due to one mixed-use office loan.

The High-Net-Worth (HNWI) segment, served through wealth management, is a major growth story. AUM hit a record $9.2 billion in Q3 2025. That's a massive jump, representing a 241% increase from the $2.7 billion AUM at the time of the 2020 IPO. This segment is definitely a focus area for fee income.

Municipalities are important depositors. In Q2 2025, higher municipal balances were the primary driver for deposit growth that quarter. Honestly, the bank remains fully deposit funded, with essentially no wholesale funding, which is a key strength for this customer base.

Finance: draft a one-page summary of these segment balances for the HarborOne integration team by Tuesday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Eastern Bankshares, Inc.'s operations as of late 2025, focusing on the figures reported through the third quarter. Understanding these costs is key to seeing where the capital is being allocated to support their balance sheet growth and the pending HarborOne integration.

The cost of funding remains a significant factor. For the second quarter of 2025, the cost of total interest-bearing liabilities was reported at 2.04%. However, by the third quarter of 2025, the pressure from competition was evident, as total deposit costs increased to 155 basis points, with the cost of interest-bearing deposits rising 8 basis points from Q2 2025.

Personnel and technology are the next largest buckets of operating expense. You can see the sequential increase in these areas between the second and third quarters of 2025 in the table below. Honestly, the jump in salaries and benefits in Q3 was partly due to an extra pay period and seasonal staff, plus higher performance-based incentives.

The total noninterest expense for the third quarter of 2025 was $140.4 million, which was an increase of $3.5 million from the second quarter. This rise was driven by higher operating noninterest expense and those merger-related costs we just noted.

Here's a quick look at other key non-interest expenses that Eastern Bankshares, Inc. reported for the three months ended September 30, 2025, compared to the prior quarter:

• Federal Deposit Insurance Corporation insurance: $3.8 million in Q2 2025.
• Professional services: $3.0 million in Q2 2025.
• Marketing: $2.4 million in Q2 2025.
• Rabbi trust benefit costs increased by $3.2 million in Q2 2025 versus Q1 2025.

You should also note that the merger activity itself creates specific, non-recurring costs. For instance, the Q3 2025 figure of $3.2 million for merger-related costs was up $0.6 million from the Q2 2025 amount. Finance: draft 13-week cash view by Friday.

Eastern Bankshares, Inc. (EBC) - Canvas Business Model: Revenue Streams

You're looking at how Eastern Bankshares, Inc. (EBC) actually brings in the money, which is key for understanding its valuation, especially as it integrates the HarborOne Bancorp merger closing on November 1, 2025. The revenue structure is classic for a strong regional bank, heavily reliant on its core lending business.

Net Interest Income (NII) from lending operations remains the bedrock. For the third quarter of 2025, this figure stood at a solid $200.2 million. This is the interest earned on the $18.8 billion loan portfolio, less the cost of funding those loans, which saw the cost of total interest-bearing liabilities rise to 2.11% due to higher deposit costs. To be fair, this NII figure was down slightly from $202.0 million in the second quarter of 2025, mainly because of lower net discount accretion.

The importance of this stream is clear when you look at the long-term trend. Net interest income is the primary source, representing 78.6% of total revenue over the last five years. However, looking just at Q3 2025, the NII contribution was even higher, making up about 82.9% of the total reported revenue for that period, which was $241.5 million.

Noninterest income provides important diversification, though it is secondary. For Q3 2025, total noninterest income was $41.3 million. A significant portion of this comes from the Wealth Management division, which hit a record high with Assets Under Management (AUM) at $9.2 billion.

Here's a quick look at the components of that noninterest income for the third quarter of 2025:

• Investment advisory fees: $17.6 million
• Service charges on deposit accounts: $8.6 million
• Income from investments held in rabbi trust accounts: $3.8 million
• Card Income: $4.2 million

We can map out the key revenue drivers for the quarter ended September 30, 2025, in a table for clarity. This shows you exactly where the $241.5 million total revenue came from.

The interest and dividends from investment securities are folded into the noninterest income line, often influenced by equity market performance for the rabbi trust accounts, which saw income decrease to $3.8 million in Q3 2025 compared to Q2 2025. Anyway, the core of the business is definitely the spread between what Eastern Bank earns on its assets and what it pays on its liabilities. Finance: draft 13-week cash view by Friday.