EBC - Eastern Bankshares: Acquisition Remains The Biggest Earnings Catalyst

• The upcoming acquisition will boost the loan portfolio size by around 30%.
• The acquisition will pressurize the net interest margin. On the other hand, high sensitivity to interest rate changes will likely support the margin in a rising interest rate environment.
• The provision expense will likely be higher next year compared to 2021 but remain below the pre-pandemic level.
• The December 2022 target price suggests a small downside from the current market price. Further, Eastern Bankshares is offering a low dividend yield.

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