Why Shares of Eastern Bankshares Are Falling Today
Shares of Eastern Bankshares (NASDAQ: EBC) traded roughly 11% lower as of 12:07 p.m. ET today after the bank reported earnings results for the fourth quarter of 2022.
Eastern reported diluted earnings per share of $0.26 on total revenue of $194.5 million, both numbers that missed earnings estimates for the quarter.
The culprit for the sell-off, however, looks to be more broadly tied to increased funding costs that Eastern, as well as much of the industry, has been dealing with. The interest rate that Eastern pays on its total deposits rose from 0.10% in the third quarter to 0.37% in the fourth quarter, as the Federal Reserve's interest rate hikes started to more significantly impact the industry.
Source Fool.com
