Since going public at the end of 2020, Eastern Bankshares (NASDAQ: EBC), a roughly $22-billion-asset bank in Boston, has performed extremely well, with shares up nearly 67%. While a quick glance would suggest that the company is trading at a very high valuation for a bank right now, I would argue that Eastern really has a much more reasonable valuation than meets the eye. The bank will also benefit immensely from rising interest rates, which is why investors should take a look at this stock.

Not long after going public, Eastern announced its plan to acquire its peer Century Bancorp. Banks trade relative to their tangible book value (TBV), or net worth. The acquisition of Century diluted Eastern's TBV by 9%, which will be earned back over four years.

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Source Fool.com