Damon Del Monte • KBW

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CFO R. Rosato explained that share repurchases will be paused until after the HarborOne shareholder vote. He also confirmed a target closing date before October 31, with an option to delay to Q1 2026 to avoid year-end complications. CEO Denis Sheahan added that two seasoned leaders were hired for the franchise lending group, which drove growth in Q1, and they are optimistic about its continued expansion.

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CFO R. Rosato confirmed that the benefit from the restructuring would be phased in during Q1, as the transactions would occur mid-quarter. He noted the full-year NIM of 3.45% to 3.55% will be influenced by the rate environment, but will see incremental improvement through the year due to CD repricing and hedge amortizations. Rosato also clarified that while Eastern is hopeful to capitalize on market disruption from recent mergers, any potential benefit is not currently factored into the 2% to 4% loan growth guidance.

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Executive Thomas Prame attributed the positive outlook to the company's embedded local talent, diversified portfolio, and consistent underwriting, which builds market reputation. He noted consumer credit remains stable. EVP & Chief Commercial Banking Officer Lynn Kerber added that commercial clients are cautious but not halting projects. Regarding mortgages, Thomas Prame mentioned that while originations are up year-over-year, low housing inventory in their Midwest markets remains the primary constraint, potentially tempering growth below MBA forecasts.

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John Stewart, EVP and CFO, confirmed that after adjusting for non-recurring Q4 items, the go-forward quarterly expense run rate is approximately $39.5 million to $40 million. He also affirmed the 3.15%-3.20% margin range is the target for the end of Q4 2025. Lynn Kerber, EVP and Chief Commercial Banking Officer, addressed the reserve, stating that while loan growth is a factor, the mix shift away from higher-loss indirect auto loans and stable credit quality lead to a 'relatively stable' outlook for the ACL ratio.

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Executive Larry Helling explained the reduced loan growth guidance stems from broad macroeconomic uncertainty affecting client capital decisions, rather than a weak LIHTC pipeline. Executive Todd Gipple confirmed that lower loan growth would likely lead to a reduced provision expense. Gipple also noted a positive 36 basis point spread on new loans versus maturing loans and detailed that the $2.8 billion fixed-rate portfolio has an approximate 36-month weighted average duration.

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Executive Todd Gipple clarified that the Q4 NIM expansion guidance of 2-7 basis points does not include a Fed cut, which would add another 1-2 basis points. He detailed that the company has $2.2 billion in immediately repricing core deposits. Regarding expenses, Gipple expressed confidence in staying within the $49-$52 million range, citing approximately $900,000 in cost savings from the m2 Equipment Finance restructuring, with potential upward pressure only from performance-based incentives tied to strong earnings.

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EVP and CFO Charles Christmas stated that securities purchases are expected to be similar to loan growth in dollar terms, funded by deposit growth. He clarified that Q1 salary expenses were lower than Q4 2024 due to higher year-end bonus accruals in the prior quarter. He also explained the Q1 provision increase was a prudent move to blend base and adverse economic forecasts due to uncertainty, making future builds difficult to predict.

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CFO Ronald Ohsberg explained that the recent restructuring has moved the bank to a more rate-neutral position, reducing upside from potential future rate cuts. He also attributed the strong deposit growth to a combination of a single large new relationship and successful organic growth strategies, including new retail sales officers and targeted promotions, despite intense market competition.

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CEO Edward Handy projected modest commercial loan growth around 3%, with a strategic focus on C&I loans to manage CRE concentration, while the residential portfolio is expected to see a mild reduction. CFO Ronald Ohsberg provided detailed expense guidance, indicating a higher run rate than suggested due to the restoration of incentive compensation and strategic people investments. He projected quarterly salaries and benefits of approximately $23.5 million and other expenses around $13.5 million.

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CFO Ronald Ohsberg explained the loan decline resulted from an intentional pullback and managed credit exits, which are now complete. CEO Ned Handy projected low single-digit loan growth for Q4 and into 2025. Ohsberg confirmed the NII outlook reflects this growth and expects Q4 expenses to be stable with Q3, with an increase in 2025.

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Executive Joseph Turner stated that while the company doesn't provide forward guidance, the outlook for loan growth is similar to the previous year. He and Executive Rex Copeland noted that unfunded commitments fund at a rate of $50-$70 million per month, which is often offset by repayments. Regarding loan repricing, they directed him to detailed tables in the upcoming 10-K filing but confirmed the repricing of the low-yield fixed-rate portfolio should be a net positive for the bank.

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