Eastern Bankshares, Inc.EBC

Eastern Bankshares, Inc. Earnings Per Share Disclosure

10-KFiled Mar 2, 20262 min read
Earnings Per Share (“EPS”)
Basic EPS represents income/(loss) allocable to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the Company. Diluted EPS is computed by dividing net income/(loss) allocable to common shareholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. Shares held by the Employee Stock Ownership Plan (“ESOP”) that have not been allocated to employees in accordance with the terms of the ESOP, referred to as “unallocated ESOP shares,” are not deemed outstanding for earnings per share calculations.
The following are the components and results of the Company’s earnings per common share calculations for the periods presented:
For the Year Ended December 31,
202520242023
(Dollars in thousands, except per share data)
Net income applicable to common shares:
Net income (loss) from continuing operations$88,219 $119,561 $(62,689)
Net income from discontinued operations— — 294,866 
Total net income$88,219 $119,561 $232,177 
Average number of common shares outstanding215,703,702 194,154,984 175,814,954 
Less: Average unallocated ESOP shares(12,529,051)(13,028,664)(13,521,934)
Average number of common shares outstanding used to calculate basic earnings per common share203,174,651181,126,320162,293,020
Common stock equivalents1,160,999 1,054,753 110,077 
Average number of common shares outstanding used to calculate diluted earnings per common share204,335,650182,181,073162,403,097
Basic earnings per share
Basic earnings (loss) per share from continuing operations$0.43 $0.66 $(0.39)
Basic earnings per share from discontinued operations— — 1.82 
Basic earnings per share$0.43 $0.66 $1.43 
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations$0.43 $0.66 $(0.39)
Diluted earnings per share from discontinued operations— — 1.82 
Diluted earnings per share$0.43 $0.66 $1.43 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Mar 29, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsCommitmentsStock CompensationNew StandardsPay vs Performance