Banker & Tradesman file photo

In its first-quarter earnings call, Eastern Bank executives reported they had repositioned the bank’s securities portfolio to begin the year, on top of announcing a plan to merge with Brockton-based HarborOne Bank.

“Our successful repositioning of $1.3 billion of securities will enhance income generation and provide greater flexibility in portfolio management,” said David Rosato, the bank’s CFO. “The transaction improved the total portfolio yield and is expected to provide pre-tax earnings accretion of approximately $35 million for 2025. Capital levels remain robust, and we continue to return capital to shareholders as evidenced by $48.7 million worth of shares repurchased during the quarter. Additionally, today we announced an increase to the quarterly dividend for the fifth consecutive year.”

The repositioning played a role in Eastern reporting a net loss of $217.7 million in the first quarter. Still, the bank reported an operating net income of $67.5 million. The bank’s net interest margin grew 33 basis points to 3.38 percent and its efficiency ratio hit 53.7 percent thanks to higher revenues and lower expenses, CEO Denis Sheahan said.

Eastern also saw its asset quality improve as non-performing loans decreased from $135.8 million at the end of 2024 to $91.6 million. Net charge-offs also dropped from $31.7 million to $11.2 million.

The bank also saw positive loan growth with an increase of $125.4 million in the quarter to $18.2 billion. Sheahan credited the increase to higher C&I balances.

“Our first quarter performance marked a solid start to the year,” Sheahan said. “We are well-positioned to serve customers and continually seek ways to drive growth, including the addition of growth-oriented talent. As we capitalize on synergies from the Cambridge merger, we are particularly pleased with the deepening alignment between our wealth management and banking businesses. Assets under management ended the quarter at $8.4 billion.”