Eastern Bankshares, Inc. Reports Second Quarter 2023 Financial Results
~ Strong Margin Expansion the Result of the Prior Quarter’s Balance Sheet Repositioning ~
~ Cash Raised in the Securities Sale Will Continue to Enhance the Company’s Financial Position ~
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2023
-
Total revenue of
$195.4 million $196.3 million $1.5 million -
Net income of
$48.7 million $0.30 $194.1 million $1.20 -
Operating net income* of
$45.3 million $0.28 $61.1 million $0.38 -
The effective tax rate of
27% in the second quarter was higher than expected due in part to impacts of the repositioning in the prior quarter. -
Total loans increased
$286.6 million 2.1% , to$14.0 billion -
The net interest margin on a fully tax equivalent (“FTE”) basis* expanded 14 basis points to
2.80% . -
Continued strong asset quality, with annualized net charge-offs ("NCOs") of
0.01% of average total loans and non-performing loans of$30.6 million 0.22% of total loans. Provision for allowance for loan losses was$7.5 million $25 thousand $7.0 million -
Healthy balance sheet with
11.7% shareholders’ equity to assets,8.9% tangible shareholders’ equity to tangible assets* and15.7% common equity tier 1 capital ratio1. Total borrowings and brokered deposits of less than5% of total assets.
During the first quarter, the Company completed a balance sheet repositioning by selling
“Our second quarter results show the tangible benefits of the balance sheet repositioning completed in the first quarter,” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. “As anticipated, our net interest margin expanded 14 basis points in the quarter, and the cash raised from the sale was used to enhance our overall financial positioning. Our wholesale funding was less than
Please refer to Appendices A-E to this press release for reconciliations of non-GAAP financial metrics denoted by an asterisk.
____________________
1 Regulatory capital ratios are preliminary estimates.
NET INTEREST INCOME
Net interest income was
-
The net interest margin on a FTE basis* was
2.80% for the second quarter, representing a 14 basis point increase from the first quarter, as asset yields increased faster than funding costs. - The net interest margin for the first quarter of 2023 included a partial quarter impact of the repositioning, which occurred in mid-March.
-
Total interest-earning asset yields increased 35 basis points from the prior quarter to
3.95% , due to increased loan and short-term investment yields as a result of higher short-term interest rates during the quarter as well as the sale of lower yielding AFS securities in the prior quarter and higher average short-term investment balances. -
Total interest-bearing liabilities cost increased 30 basis points from the prior quarter to
1.79% , due to core deposit pricing increases and deposit mix shifts, partially offset by lower borrowing costs due to the reduction in borrowings as a result of the repositioning.
Please refer to Appendices A-E to this press release for reconciliations of non-GAAP financial metrics denoted by an asterisk.
NONINTEREST INCOME
Noninterest income was
-
Insurance commissions decreased
$3.9 million $27.6 million $31.5 million $2.9 million 12% . -
Service charges on deposit accounts decreased
$0.8 million $7.2 million -
Trust and investment advisory fees increased
$0.4 million $6.1 million -
Debit card processing fees increased
$0.3 million $3.5 million -
Income from investments held in rabbi trust accounts was
$3.0 million $2.9 million -
There were no realized gains or losses on sales of AFS securities in the second quarter compared to realized losses of
$333.2 million
Please refer to Appendices A-E to this press release for reconciliations of non-GAAP financial metrics denoted by an asterisk.
NONINTEREST EXPENSE
Noninterest expense was
-
Salaries and employee benefits expense was
$79.2 million $0.7 million -
Office occupancy and equipment expense was
$9.8 million $0.1 million -
Data processing expense was
$13.9 million $0.4 million -
Professional services expense was
$4.1 million $0.6 million -
Marketing expense was
$2.1 million $1.0 million -
Loan expenses were unchanged at
$1.1 million -
Federal Deposit Insurance Corporation (“FDIC”) insurance expense was
$3.0 million $0.5 million -
Other noninterest expense was
$7.2 million $1.9 million $1.5 million
Please refer to Appendices A-E to this press release for reconciliations of non-GAAP financial metrics denoted by an asterisk.
ASSET QUALITY
The allowance for loan losses was
Non-performing loans totaled
DIVIDENDS AND SHARE REPURCHASES
The Company’s Board of Directors has declared a quarterly cash dividend of
The Company did not repurchase any shares of its common stock during the second quarter of 2023.
As announced in September of 2022, the Company received regulatory non-objection for its second share repurchase program of up to 8,900,000 shares, representing approximately
CONFERENCE CALL AND PRESENTATION INFORMATION
A conference call and webcast covering Eastern’s second quarter 2023 earnings will be held on Friday, July 28, 2023 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (888) 259-6580 from within the
ABOUT EASTERN BANKSHARES, INC.
Eastern Bankshares, Inc. is the stock holding company for Eastern Bank. Founded in 1818,
NON-GAAP FINANCIAL MEASURES
*Denotes a non-GAAP financial measure used in this press release.
A non-GAAP financial measure is defined as a numerical measure of the Company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in
The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures.
There are items in the Company’s financial statements that impact its financial results, but which management believes are unrelated to the Company’s core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders’ equity, operating return on average tangible shareholders’ equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company’s core business and underlying trends. Such items that management does not consider to be core to the Company’s business include (i) income and expenses from investments held in rabbi trusts, (ii) gains and losses on sales of securities available for sale, net, (iii) gains and losses on the sale of other assets, (iv) rabbi trust employee benefits, (v) impairment charges on tax credit investments and associated tax credit benefits, (vi) other real estate owned (“OREO”) gains, (vii) merger and acquisition expenses, (viii) the non-cash pension settlement charge recognized related to the Defined Benefit Plan, and (ix) certain discrete tax items. The Company does not provide an outlook for its total noninterest income and total noninterest expense because each contains income or expense components, as applicable, such as income associated with rabbi trust accounts and rabbi trust employee benefit expense, which are market-driven, and over which the Company cannot exercise control. Accordingly, reconciliations of the Company’s outlook for its noninterest income on an operating basis and its noninterest expense on an operating basis to an outlook for total noninterest income and total noninterest expense, respectively, cannot be made available without unreasonable effort.
Management also presents tangible assets, tangible shareholders’ equity, average tangible shareholders’ equity, tangible book value per share, the ratio of tangible shareholders’ equity to tangible assets including the impact of mark-to-market adjustments on held-to-maturity securities, return on average tangible shareholders’ equity, and operating return on average shareholders’ equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company included the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.
These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-E for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements.
Certain factors that could cause actual results to differ materially from expected results include; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks that revenue or expense synergies or the other expected benefits of the Company’s merger with Century Bank in November 2021 may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiary Eastern Bank are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics, including COVID-19; and the failure of the Company to execute all of its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the
You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements.
EASTERN BANKSHARES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
Certain information in this press release is presented as reviewed by the Company’s management and includes information derived from the Company’s Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
|
As of and for the three months ended |
|||||||||||||||||||
(Unaudited, dollars in thousands, except per-share data) |
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Earnings data |
|
|
|
|
|
|||||||||||||||
Net interest income |
$ |
141,588 |
|
$ |
138,309 |
|
$ |
149,994 |
|
$ |
152,179 |
|
$ |
137,757 |
|
|||||
Noninterest income |
|
53,831 |
|
|
(278,330 |
) |
|
44,516 |
|
|
43,353 |
|
|
41,877 |
|
|||||
Total revenue |
|
195,419 |
|
|
(140,021 |
) |
|
194,510 |
|
|
195,532 |
|
|
179,634 |
|
|||||
Noninterest expense |
|
121,648 |
|
|
116,294 |
|
|
132,757 |
|
|
116,840 |
|
|
111,139 |
|
|||||
Pre-tax, pre-provision income (loss) |
|
73,771 |
|
|
(256,315 |
) |
|
61,753 |
|
|
78,692 |
|
|
68,495 |
|
|||||
Provision for allowance for loan losses |
|
7,501 |
|
|
25 |
|
|
10,880 |
|
|
6,480 |
|
|
1,050 |
|
|||||
Pre-tax income (loss) |
|
66,270 |
|
|
(256,340 |
) |
|
50,873 |
|
|
72,212 |
|
|
67,445 |
|
|||||
Net income (loss) |
|
48,657 |
|
|
(194,096 |
) |
|
42,294 |
|
|
54,777 |
|
|
51,172 |
|
|||||
Operating net income (non-GAAP) |
|
45,323 |
|
|
61,113 |
|
|
49,912 |
|
|
55,742 |
|
|
52,518 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Per-share data |
|
|
|
|
|
|||||||||||||||
Earnings (loss) per share, basic |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.26 |
|
$ |
0.33 |
|
$ |
0.31 |
|
|||||
Earnings (loss) per share, diluted |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.26 |
|
$ |
0.33 |
|
$ |
0.31 |
|
|||||
Operating earnings per share, basic (non-GAAP) |
$ |
0.28 |
|
$ |
0.38 |
|
$ |
0.31 |
|
$ |
0.34 |
|
$ |
0.32 |
|
|||||
Operating earnings per share, diluted (non-GAAP) |
$ |
0.28 |
|
$ |
0.38 |
|
$ |
0.31 |
|
$ |
0.34 |
|
$ |
0.32 |
|
|||||
Book value per share |
$ |
14.33 |
|
$ |
14.63 |
|
$ |
14.03 |
|
$ |
13.59 |
|
$ |
15.17 |
|
|||||
Tangible book value per share (non-GAAP) |
$ |
10.59 |
|
$ |
10.88 |
|
$ |
10.28 |
|
$ |
9.87 |
|
$ |
11.52 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Profitability |
|
|
|
|
|
|||||||||||||||
Return on average assets (1) |
|
0.89 |
% |
|
(3.50 |
)% |
|
0.75 |
% |
|
0.97 |
% |
|
0.92 |
% |
|||||
Operating return on average assets (non-GAAP) (1) |
|
0.83 |
% |
|
1.09 |
% |
|
0.88 |
% |
|
0.97 |
% |
|
0.94 |
% |
|||||
Return on average shareholders' equity (1) |
|
7.51 |
% |
|
(32.00 |
)% |
|
6.93 |
% |
|
7.83 |
% |
|
7.16 |
% |
|||||
Operating return on average shareholders' equity (1) |
|
7.00 |
% |
|
10.07 |
% |
|
8.17 |
% |
|
7.98 |
% |
|
7.34 |
% |
|||||
Return on average tangible shareholders' equity (non-GAAP) (1) |
|
10.06 |
% |
|
(43.75 |
)% |
|
9.54 |
% |
|
10.25 |
% |
|
9.28 |
% |
|||||
Operating return on average tangible shareholders' equity (non-GAAP) (1) |
|
9.37 |
% |
|
13.78 |
% |
|
11.26 |
% |
|
10.44 |
% |
|
9.53 |
% |
|||||
Net interest margin (FTE) (1) |
|
2.80 |
% |
|
2.66 |
% |
|
2.81 |
% |
|
2.87 |
% |
|
2.63 |
% |
|||||
Cost of deposits (1) |
|
1.22 |
% |
|
0.92 |
% |
|
0.37 |
% |
|
0.10 |
% |
|
0.06 |
% |
|||||
Efficiency ratio |
|
62.25 |
% |
|
(83.05 |
)% |
|
68.25 |
% |
|
59.75 |
% |
|
61.87 |
% |
|||||
Operating efficiency ratio (non-GAAP) |
|
61.31 |
% |
|
59.06 |
% |
|
61.11 |
% |
|
58.38 |
% |
|
60.61 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Balance Sheet (end of period) |
|
|
|
|
|
|||||||||||||||
Total assets |
$ |
21,583,493 |
|
$ |
22,720,530 |
|
$ |
22,646,858 |
|
$ |
22,042,933 |
|
$ |
22,350,848 |
|
|||||
Total loans |
|
13,961,878 |
|
|
13,675,250 |
|
|
13,575,531 |
|
|
12,903,954 |
|
|
12,398,694 |
|
|||||
Total deposits |
|
18,180,972 |
|
|
18,541,580 |
|
|
18,974,359 |
|
|
18,733,381 |
|
|
19,163,801 |
|
|||||
Total loans / total deposits |
|
77 |
% |
|
74 |
% |
|
72 |
% |
|
69 |
% |
|
65 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Asset quality |
|
|
|
|
|
|||||||||||||||
Allowance for loan losses ("ALLL") |
$ |
147,955 |
|
$ |
140,938 |
|
$ |
142,211 |
|
$ |
131,663 |
|
$ |
125,531 |
|
|||||
ALLL / total nonperforming loans ("NPLs") |
|
484.18 |
% |
|
407.65 |
% |
|
368.38 |
% |
|
387.77 |
% |
|
209.64 |
% |
|||||
Total NPLs / total loans |
|
0.22 |
% |
|
0.25 |
% |
|
0.28 |
% |
|
0.26 |
% |
|
0.48 |
% |
|||||
Net charge-offs (recoveries) ("NCOs") / average total loans (1) |
|
0.01 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
(0.01 |
)% |
|||||
|
|
|
|
|
|
|||||||||||||||
Capital adequacy |
|
|
|
|
|
|||||||||||||||
Shareholders' equity / assets |
|
11.71 |
% |
|
11.35 |
% |
|
10.91 |
% |
|
10.96 |
% |
|
12.16 |
% |
|||||
Tangible shareholders' equity / tangible assets (non-GAAP) |
|
8.93 |
% |
|
8.70 |
% |
|
8.24 |
% |
|
8.20 |
% |
|
9.52 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
(1) Presented on an annualized basis. |
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EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||
|
|
As of |
|
Jun 30, 2023 change from |
||||||||||||||||||||||
(Unaudited, dollars in thousands) |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
||||||||||||||||
ASSETS |
|
|
|
|
△ $ |
△ % |
|
△ $ |
△ % |
|||||||||||||||||
Cash and due from banks |
$ |
105,066 |
|
$ |
98,377 |
|
$ |
100,309 |
|
|
$ |
6,689 |
|
7 |
% |
|
$ |
4,757 |
|
5 |
% |
|||||
Short-term investments |
|
768,436 |
|
|
2,039,439 |
|
|
268,605 |
|
|
|
(1,271,003 |
) |
(62 |
)% |
|
|
499,831 |
|
186 |
% |
|||||
Cash and cash equivalents |
|
873,502 |
|
|
2,137,816 |
|
|
368,914 |
|
|
|
(1,264,314 |
) |
(59 |
)% |
|
|
504,588 |
|
137 |
% |
|||||
Available for sale ("AFS") securities (1) |
|
4,520,293 |
|
|
4,700,134 |
|
|
7,536,921 |
|
|
|
(179,841 |
) |
(4 |
)% |
|
|
(3,016,628 |
) |
(40 |
)% |
|||||
Held to maturity ("HTM") securities (1) |
|
465,061 |
|
|
471,185 |
|
|
488,581 |
|
|
|
(6,124 |
) |
(1 |
)% |
|
|
(23,520 |
) |
(5 |
)% |
|||||
Total securities |
|
4,985,354 |
|
|
5,171,319 |
|
|
8,025,502 |
|
|
|
(185,965 |
) |
(4 |
)% |
|
|
(3,040,148 |
) |
(38 |
)% |
|||||
Loans held for sale |
|
2,835 |
|
|
3,068 |
|
|
764 |
|
|
|
(233 |
) |
(8 |
)% |
|
|
2,071 |
|
271 |
% |
|||||
Loans: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial and industrial |
|
3,341,976 |
|
|
3,169,438 |
|
|
2,840,734 |
|
|
|
172,538 |
|
5 |
% |
|
|
501,242 |
|
18 |
% |
|||||
Commercial real estate |
|
5,242,290 |
|
|
5,201,196 |
|
|
4,792,345 |
|
|
|
41,094 |
|
1 |
% |
|
|
449,945 |
|
9 |
% |
|||||
Commercial construction |
|
371,367 |
|
|
357,117 |
|
|
303,463 |
|
|
|
14,250 |
|
4 |
% |
|
|
67,904 |
|
22 |
% |
|||||
Business banking |
|
1,089,548 |
|
|
1,078,678 |
|
|
1,126,853 |
|
|
|
10,870 |
|
1 |
% |
|
|
(37,305 |
) |
(3 |
)% |
|||||
Total commercial loans |
|
10,045,181 |
|
|
9,806,429 |
|
|
9,063,395 |
|
|
|
238,752 |
|
2 |
% |
|
|
981,786 |
|
11 |
% |
|||||
Residential real estate |
|
2,510,705 |
|
|
2,497,491 |
|
|
1,989,621 |
|
|
|
13,214 |
|
1 |
% |
|
|
521,084 |
|
26 |
% |
|||||
Consumer home equity |
|
1,198,290 |
|
|
1,180,824 |
|
|
1,147,425 |
|
|
|
17,466 |
|
1 |
% |
|
|
50,865 |
|
4 |
% |
|||||
Other consumer |
|
207,702 |
|
|
190,506 |
|
|
198,253 |
|
|
|
17,196 |
|
9 |
% |
|
|
9,449 |
|
5 |
% |
|||||
Total loans |
|
13,961,878 |
|
|
13,675,250 |
|
|
12,398,694 |
|
|
|
286,628 |
|
2 |
% |
|
|
1,563,184 |
|
13 |
% |
|||||
Allowance for loan losses |
|
(147,955 |
) |
|
(140,938 |
) |
|
(125,531 |
) |
|
|
(7,017 |
) |
5 |
% |
|
|
(22,424 |
) |
18 |
% |
|||||
Unamortized prem./disc. and def. fees |
|
(15,202 |
) |
|
(13,597 |
) |
|
(20,988 |
) |
|
|
(1,605 |
) |
12 |
% |
|
|
5,786 |
|
(28 |
)% |
|||||
Net loans |
|
13,798,721 |
|
|
13,520,715 |
|
|
12,252,175 |
|
|
|
278,006 |
|
2 |
% |
|
|
1,546,546 |
|
13 |
% |
|||||
Federal Home Loan Bank stock, at cost |
|
26,894 |
|
|
45,168 |
|
|
5,714 |
|
|
|
(18,274 |
) |
(40 |
)% |
|
|
21,180 |
|
371 |
% |
|||||
Premises and equipment |
|
59,501 |
|
|
61,110 |
|
|
69,019 |
|
|
|
(1,609 |
) |
(3 |
)% |
|
|
(9,518 |
) |
(14 |
)% |
|||||
Bank-owned life insurance |
|
162,718 |
|
|
161,755 |
|
|
158,890 |
|
|
|
963 |
|
1 |
% |
|
|
3,828 |
|
2 |
% |
|||||
Goodwill and other intangibles, net |
|
658,993 |
|
|
660,165 |
|
|
653,853 |
|
|
|
(1,172 |
) |
— |
% |
|
|
5,140 |
|
1 |
% |
|||||
Deferred income taxes, net |
|
351,054 |
|
|
314,139 |
|
|
244,153 |
|
|
|
36,915 |
|
12 |
% |
|
|
106,901 |
|
44 |
% |
|||||
Prepaid expenses |
|
158,388 |
|
|
163,018 |
|
|
188,115 |
|
|
|
(4,630 |
) |
(3 |
)% |
|
|
(29,727 |
) |
(16 |
)% |
|||||
Other assets |
|
505,533 |
|
|
482,257 |
|
|
383,749 |
|
|
|
23,276 |
|
5 |
% |
|
|
121,784 |
|
32 |
% |
|||||
Total assets |
$ |
21,583,493 |
|
$ |
22,720,530 |
|
$ |
22,350,848 |
|
|
$ |
(1,137,037 |
) |
(5 |
)% |
|
$ |
(767,355 |
) |
(3 |
)% |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Demand |
$ |
5,346,693 |
|
$ |
5,564,016 |
|
$ |
6,604,154 |
|
|
$ |
(217,323 |
) |
(4 |
)% |
|
$ |
(1,257,461 |
) |
(19 |
)% |
|||||
Interest checking accounts |
|
4,173,079 |
|
|
4,240,780 |
|
|
5,348,181 |
|
|
|
(67,701 |
) |
(2 |
)% |
|
|
(1,175,102 |
) |
(22 |
)% |
|||||
Savings accounts |
|
1,495,540 |
|
|
1,633,790 |
|
|
2,015,865 |
|
|
|
(138,250 |
) |
(8 |
)% |
|
|
(520,325 |
) |
(26 |
)% |
|||||
Money market investment |
|
4,814,412 |
|
|
5,135,590 |
|
|
4,787,603 |
|
|
|
(321,178 |
) |
(6 |
)% |
|
|
26,809 |
|
1 |
% |
|||||
Certificates of deposit |
|
2,351,248 |
|
|
1,967,404 |
|
|
407,998 |
|
|
|
383,844 |
|
20 |
% |
|
|
1,943,250 |
|
476 |
% |
|||||
Total deposits |
|
18,180,972 |
|
|
18,541,580 |
|
|
19,163,801 |
|
|
|
(360,608 |
) |
(2 |
)% |
|
|
(982,829 |
) |
(5 |
)% |
|||||
Borrowed funds: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Federal Home Loan Bank advances |
|
314,021 |
|
|
1,100,952 |
|
|
13,560 |
|
|
|
(786,931 |
) |
(71 |
)% |
|
|
300,461 |
|
2216 |
% |
|||||
Escrow deposits of borrowers |
|
22,980 |
|
|
25,671 |
|
|
19,456 |
|
|
|
(2,691 |
) |
(10 |
)% |
|
|
3,524 |
|
18 |
% |
|||||
Interest rate swap collateral funds |
|
14,210 |
|
|
11,780 |
|
|
10,100 |
|
|
|
2,430 |
|
21 |
% |
|
|
4,110 |
|
41 |
% |
|||||
Total borrowed funds |
|
351,211 |
|
|
1,138,403 |
|
|
43,116 |
|
|
|
(787,192 |
) |
(69 |
)% |
|
|
308,095 |
|
715 |
% |
|||||
Other liabilities |
|
524,538 |
|
|
461,424 |
|
|
425,535 |
|
|
|
63,114 |
|
14 |
% |
|
|
99,003 |
|
23 |
% |
|||||
Total liabilities |
|
19,056,721 |
|
|
20,141,407 |
|
|
19,632,452 |
|
|
|
(1,084,686 |
) |
(5 |
)% |
|
|
(575,731 |
) |
(3 |
)% |
|||||
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Common shares |
|
1,766 |
|
|
1,764 |
|
|
1,793 |
|
|
|
2 |
|
— |
% |
|
|
(27 |
) |
(2 |
)% |
|||||
Additional paid-in capital |
|
1,656,750 |
|
|
1,651,524 |
|
|
1,700,495 |
|
|
|
5,226 |
|
— |
% |
|
|
(43,745 |
) |
(3 |
)% |
|||||
Unallocated common shares held by the employee stock ownership plan ("ESOP") |
|
(135,232 |
) |
|
(136,470 |
) |
|
(140,203 |
) |
|
|
1,238 |
|
(1 |
)% |
|
|
4,971 |
|
(4 |
)% |
|||||
Retained earnings |
|
1,704,470 |
|
|
1,672,169 |
|
|
1,817,474 |
|
|
|
32,301 |
|
2 |
% |
|
|
(113,004 |
) |
(6 |
)% |
|||||
Accumulated other comprehensive income ("AOCI"), net of tax |
|
(700,982 |
) |
|
(609,864 |
) |
|
(661,163 |
) |
|
|
(91,118 |
) |
15 |
% |
|
|
(39,819 |
) |
6 |
% |
|||||
Total shareholders' equity |
|
2,526,772 |
|
|
2,579,123 |
|
|
2,718,396 |
|
|
|
(52,351 |
) |
(2 |
)% |
|
|
(191,624 |
) |
(7 |
)% |
|||||
Total liabilities and shareholders' equity |
$ |
21,583,493 |
|
$ |
22,720,530 |
|
$ |
22,350,848 |
|
|
$ |
(1,137,037 |
) |
(5 |
)% |
|
$ |
(767,355 |
) |
(3 |
)% |
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(1) AFS and HTM securities represented at fair value and amortized cost, respectively. |
||||||||||||||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||
|
|
Three months ended |
|
Three months ended Jun 30, 2023 change from three months ended |
||||||||||||||||||||||
(Unaudited, dollars in thousands, except per-share data) |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest and dividend income: |
|
|
|
|
△ $ |
△ % |
|
△ $ |
△ % |
|||||||||||||||||
Interest and fees on loans |
$ |
160,862 |
|
$ |
153,540 |
|
$ |
107,236 |
|
|
$ |
7,322 |
|
5 |
% |
|
$ |
53,626 |
|
50 |
% |
|||||
Taxable interest and dividends on securities |
|
24,618 |
|
|
28,642 |
|
|
31,121 |
|
|
|
(4,024 |
) |
(14 |
)% |
|
|
(6,503 |
) |
(21 |
)% |
|||||
Non-taxable interest and dividends on securities |
|
1,434 |
|
|
1,434 |
|
|
1,862 |
|
|
|
— |
|
— |
% |
|
|
(428 |
) |
(23 |
)% |
|||||
Interest on federal funds sold and other short-term investments |
|
14,851 |
|
|
5,264 |
|
|
652 |
|
|
|
9,587 |
|
182 |
% |
|
|
14,199 |
|
2178 |
% |
|||||
Total interest and dividend income |
|
201,765 |
|
|
188,880 |
|
|
140,871 |
|
|
|
12,885 |
|
7 |
% |
|
|
60,894 |
|
43 |
% |
|||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest on deposits |
|
56,146 |
|
|
42,933 |
|
|
3,061 |
|
|
|
13,213 |
|
31 |
% |
|
|
53,085 |
|
1734 |
% |
|||||
Interest on borrowings |
|
4,031 |
|
|
7,638 |
|
|
53 |
|
|
|
(3,607 |
) |
(47 |
)% |
|
|
3,978 |
|
7506 |
% |
|||||
Total interest expense |
|
60,177 |
|
|
50,571 |
|
|
3,114 |
|
|
|
9,606 |
|
19 |
% |
|
|
57,063 |
|
1832 |
% |
|||||
Net interest income |
|
141,588 |
|
|
138,309 |
|
|
137,757 |
|
|
|
3,279 |
|
2 |
% |
|
|
3,831 |
|
3 |
% |
|||||
Provision for allowance for loan losses |
|
7,501 |
|
|
25 |
|
|
1,050 |
|
|
|
7,476 |
|
29904 |
% |
|
|
6,451 |
|
614 |
% |
|||||
Net interest income after provision for allowance for loan losses |
|
134,087 |
|
|
138,284 |
|
|
136,707 |
|
|
|
(4,197 |
) |
(3 |
)% |
|
|
(2,620 |
) |
(2 |
)% |
|||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Insurance commissions |
|
27,609 |
|
|
31,503 |
|
|
24,682 |
|
|
|
(3,894 |
) |
(12 |
)% |
|
|
2,927 |
|
12 |
% |
|||||
Service charges on deposit accounts |
|
7,242 |
|
|
6,472 |
|
|
8,313 |
|
|
|
770 |
|
12 |
% |
|
|
(1,071 |
) |
(13 |
)% |
|||||
Trust and investment advisory fees |
|
6,131 |
|
|
5,770 |
|
|
5,994 |
|
|
|
361 |
|
6 |
% |
|
|
137 |
|
2 |
% |
|||||
Debit card processing fees |
|
3,513 |
|
|
3,170 |
|
|
3,223 |
|
|
|
343 |
|
11 |
% |
|
|
290 |
|
9 |
% |
|||||
Interest rate swap income (losses) |
|
825 |
|
|
(408 |
) |
|
1,593 |
|
|
|
1,233 |
|
(302 |
)% |
|
|
(768 |
) |
(48 |
)% |
|||||
Income (losses) from investments held in rabbi trusts |
|
3,002 |
|
|
2,857 |
|
|
(7,316 |
) |
|
|
145 |
|
5 |
% |
|
|
10,318 |
|
(141 |
)% |
|||||
(Losses) gains on sales of mortgage loans held for sale, net |
|
(50 |
) |
|
(74 |
) |
|
49 |
|
|
|
24 |
|
(32 |
)% |
|
|
(99 |
) |
(202 |
)% |
|||||
Losses on sales of securities available for sale, net |
|
— |
|
|
(333,170 |
) |
|
(104 |
) |
|
|
333,170 |
|
(100 |
)% |
|
|
104 |
|
(100 |
)% |
|||||
Other |
|
5,559 |
|
|
5,550 |
|
|
5,443 |
|
|
|
9 |
|
— |
% |
|
|
116 |
|
2 |
% |
|||||
Total noninterest income |
|
53,831 |
|
|
(278,330 |
) |
|
41,877 |
|
|
|
332,161 |
|
(119 |
)% |
|
|
11,954 |
|
29 |
% |
|||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Salaries and employee benefits |
|
79,224 |
|
|
78,478 |
|
|
72,996 |
|
|
|
746 |
|
1 |
% |
|
|
6,228 |
|
9 |
% |
|||||
Office occupancy and equipment |
|
9,802 |
|
|
9,878 |
|
|
9,888 |
|
|
|
(76 |
) |
(1 |
)% |
|
|
(86 |
) |
(1 |
)% |
|||||
Data processing |
|
13,874 |
|
|
13,441 |
|
|
14,345 |
|
|
|
433 |
|
3 |
% |
|
|
(471 |
) |
(3 |
)% |
|||||
Professional services |
|
4,056 |
|
|
3,420 |
|
|
3,532 |
|
|
|
636 |
|
19 |
% |
|
|
524 |
|
15 |
% |
|||||
Marketing |
|
2,136 |
|
|
1,097 |
|
|
2,651 |
|
|
|
1,039 |
|
95 |
% |
|
|
(515 |
) |
(19 |
)% |
|||||
Loan expenses |
|
1,115 |
|
|
1,095 |
|
|
1,626 |
|
|
|
20 |
|
2 |
% |
|
|
(511 |
) |
(31 |
)% |
|||||
Federal Deposit Insurance Corporation ("FDIC") insurance |
|
3,034 |
|
|
2,546 |
|
|
1,720 |
|
|
|
488 |
|
19 |
% |
|
|
1,314 |
|
76 |
% |
|||||
Amortization of intangible assets |
|
1,172 |
|
|
960 |
|
|
907 |
|
|
|
212 |
|
22 |
% |
|
|
265 |
|
29 |
% |
|||||
Other |
|
7,235 |
|
|
5,379 |
|
|
3,474 |
|
|
|
1,856 |
|
35 |
% |
|
|
3,761 |
|
108 |
% |
|||||
Total noninterest expense |
|
121,648 |
|
|
116,294 |
|
|
111,139 |
|
|
|
5,354 |
|
5 |
% |
|
|
10,509 |
|
9 |
% |
|||||
Income (loss) before income tax (benefit) expense |
|
66,270 |
|
|
(256,340 |
) |
|
67,445 |
|
|
|
322,610 |
|
(126 |
)% |
|
|
(1,175 |
) |
(2 |
)% |
|||||
Income tax expense (benefit) |
|
17,613 |
|
|
(62,244 |
) |
|
16,273 |
|
|
|
79,857 |
|
(128 |
)% |
|
|
1,340 |
|
8 |
% |
|||||
Net income (loss) |
$ |
48,657 |
|
$ |
(194,096 |
) |
$ |
51,172 |
|
|
$ |
242,753 |
|
(125 |
)% |
|
$ |
(2,515 |
) |
(5 |
)% |
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Share data: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average common shares outstanding, basic (1) |
|
162,232,236 |
|
|
161,991,373 |
|
|
166,533,920 |
|
|
|
240,863 |
|
0 |
% |
|
|
(4,301,684 |
) |
(3 |
)% |
|||||
Weighted average common shares outstanding, diluted (1) |
|
162,246,675 |
|
|
162,059,431 |
|
|
166,573,627 |
|
|
|
187,244 |
|
0 |
% |
|
|
(4,326,952 |
) |
(3 |
)% |
|||||
Earnings (loss) per share, basic |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.31 |
|
|
$ |
1.50 |
|
(125 |
)% |
|
$ |
(0.01 |
) |
(2 |
)% |
|||||
Earnings (loss) per share, diluted |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.31 |
|
|
$ |
1.50 |
|
(125 |
)% |
|
$ |
(0.01 |
) |
(2 |
)% |
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(1) Shares held by the Company’s ESOP that have not been allocated to employees in accordance with the terms of the ESOP are not deemed outstanding for earnings per share calculations. |
||||||||||||||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
Six months ended |
|
|
|
|||||||||||
(Unaudited, dollars in thousands, except per-share data) |
Jun 30, 2023 |
Jun 30, 2022 |
|
Change |
|||||||||||
|
|
|
|
|
|
||||||||||
Interest and dividend income: |
|
|
|
△ $ |
△ % |
||||||||||
Interest and fees on loans |
$ |
314,402 |
|
$ |
208,603 |
|
|
$ |
105,799 |
|
51 |
% |
|||
Taxable interest and dividends on securities |
|
53,260 |
|
|
58,997 |
|
|
|
(5,737 |
) |
(10 |
)% |
|||
Non-taxable interest and dividends on securities |
|
2,868 |
|
|
3,668 |
|
|
|
(800 |
) |
(22 |
)% |
|||
Interest on federal funds sold and other short-term investments |
|
20,115 |
|
|
1,088 |
|
|
|
19,027 |
|
1749 |
% |
|||
Total interest and dividend income |
|
390,645 |
|
|
272,356 |
|
|
|
118,289 |
|
43 |
% |
|||
Interest expense: |
|
|
|
|
|
||||||||||
Interest on deposits |
|
99,079 |
|
|
6,383 |
|
|
|
92,696 |
|
1452 |
% |
|||
Interest on borrowings |
|
11,669 |
|
|
92 |
|
|
|
11,577 |
|
12584 |
% |
|||
Total interest expense |
|
110,748 |
|
|
6,475 |
|
|
|
104,273 |
|
1610 |
% |
|||
Net interest income |
|
279,897 |
|
|
265,881 |
|
|
|
14,016 |
|
5 |
% |
|||
Provision for allowance for loan losses |
|
7,526 |
|
|
565 |
|
|
|
6,961 |
|
1232 |
% |
|||
Net interest income after provision for allowance for loan losses |
|
272,371 |
|
|
265,316 |
|
|
|
7,055 |
|
3 |
% |
|||
Noninterest income: |
|
|
|
|
|
||||||||||
Insurance commissions |
|
59,112 |
|
|
53,395 |
|
|
|
5,717 |
|
11 |
% |
|||
Service charges on deposit accounts |
|
13,714 |
|
|
16,850 |
|
|
|
(3,136 |
) |
(19 |
)% |
|||
Trust and investment advisory fees |
|
11,901 |
|
|
12,135 |
|
|
|
(234 |
) |
(2 |
)% |
|||
Debit card processing fees |
|
6,683 |
|
|
6,168 |
|
|
|
515 |
|
8 |
% |
|||
Interest rate swap income |
|
417 |
|
|
4,525 |
|
|
|
(4,108 |
) |
(91 |
)% |
|||
Income (losses) from investments held in rabbi trusts |
|
5,859 |
|
|
(11,749 |
) |
|
|
17,608 |
|
(150 |
)% |
|||
(Losses) gains on sales of mortgage loans held for sale, net |
|
(124 |
) |
|
218 |
|
|
|
(342 |
) |
(157 |
)% |
|||
Losses on sales of securities available for sale, net |
|
(333,170 |
) |
|
(2,276 |
) |
|
|
(330,894 |
) |
14538 |
% |
|||
Other |
|
11,109 |
|
|
9,026 |
|
|
|
2,083 |
|
23 |
% |
|||
Total noninterest (loss) income |
|
(224,499 |
) |
|
88,292 |
|
|
|
(312,791 |
) |
(354 |
)% |
|||
Noninterest expense: |
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
157,702 |
|
|
142,522 |
|
|
|
15,180 |
|
11 |
% |
|||
Office occupancy and equipment |
|
19,680 |
|
|
21,502 |
|
|
|
(1,822 |
) |
(8 |
)% |
|||
Data processing |
|
27,315 |
|
|
29,665 |
|
|
|
(2,350 |
) |
(8 |
)% |
|||
Professional services |
|
7,476 |
|
|
7,482 |
|
|
|
(6 |
) |
— |
% |
|||
Marketing |
|
3,233 |
|
|
4,225 |
|
|
|
(992 |
) |
(23 |
)% |
|||
Loan expenses |
|
2,210 |
|
|
3,545 |
|
|
|
(1,335 |
) |
(38 |
)% |
|||
Federal Deposit Insurance Corporation ("FDIC") insurance |
|
5,580 |
|
|
3,132 |
|
|
|
2,448 |
|
78 |
% |
|||
Amortization of intangible assets |
|
2,132 |
|
|
1,734 |
|
|
|
398 |
|
23 |
% |
|||
Other |
|
12,614 |
|
|
6,198 |
|
|
|
6,416 |
|
104 |
% |
|||
Total noninterest expense |
|
237,942 |
|
|
220,005 |
|
|
|
17,937 |
|
8 |
% |
|||
(Loss) income before income tax (benefit) expense |
|
(190,070 |
) |
|
133,603 |
|
|
|
(323,673 |
) |
(242 |
)% |
|||
Income tax (benefit) expense |
|
(44,631 |
) |
|
30,915 |
|
|
|
(75,546 |
) |
(244 |
)% |
|||
Net (loss) income |
$ |
(145,439 |
) |
$ |
102,688 |
|
|
$ |
(248,127 |
) |
(242 |
)% |
|||
|
|
|
|
|
|
||||||||||
Share data: |
|
|
|
|
|
||||||||||
Weighted average common shares outstanding, basic (1) |
|
162,112,223 |
|
|
168,184,528 |
|
|
|
(6,072,305 |
) |
(4 |
)% |
|||
Weighted average common shares outstanding, diluted (1) |
|
162,136,984 |
|
|
168,248,246 |
|
|
|
(6,111,262 |
) |
(4 |
)% |
|||
(Loss) earnings per share, basic |
$ |
(0.90 |
) |
$ |
0.61 |
|
|
$ |
(1.51 |
) |
(247 |
)% |
|||
(Loss) earnings per share, diluted |
$ |
(0.90 |
) |
$ |
0.61 |
|
|
$ |
(1.51 |
) |
(247 |
)% |
|||
|
|
|
|
|
|
||||||||||
(1) Shares held by the Company’s ESOP that have not been allocated to employees in accordance with the terms of the ESOP are not deemed outstanding for earnings per share calculations. |
|||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS |
|||||||||||||||||||||||||||
|
As of and for the three months ended |
||||||||||||||||||||||||||
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
||||||||||||||||||||||
(Unaudited, dollars in thousands) |
Avg. Balance |
|
Interest |
|
Yield / Cost (5) |
|
Avg. Balance |
|
Interest |
|
Yield / Cost (5) |
|
Avg. Balance |
|
Interest |
|
Yield / Cost (5) |
||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial |
$ |
9,920,608 |
|
$ |
121,319 |
|
4.91 |
% |
|
$ |
9,765,236 |
|
$ |
115,929 |
|
4.81 |
% |
|
$ |
8,944,652 |
|
$ |
83,586 |
|
3.75 |
% |
|
Residential |
|
2,513,941 |
|
|
21,992 |
|
3.51 |
% |
|
|
2,513,413 |
|
|
21,614 |
|
3.49 |
% |
|
|
1,960,014 |
|
|
14,683 |
|
3.00 |
% |
|
Consumer |
|
1,370,011 |
|
|
21,045 |
|
6.16 |
% |
|
|
1,358,616 |
|
|
20,059 |
|
5.99 |
% |
|
|
1,309,864 |
|
|
11,494 |
|
3.52 |
% |
|
Total loans |
|
13,804,560 |
|
|
164,356 |
|
4.78 |
% |
|
|
13,637,265 |
|
|
157,602 |
|
4.69 |
% |
|
|
12,214,530 |
|
|
109,763 |
|
3.60 |
% |
|
Investment securities |
|
5,885,545 |
|
|
26,435 |
|
1.80 |
% |
|
|
7,684,665 |
|
|
30,459 |
|
1.61 |
% |
|
|
8,883,710 |
|
|
33,479 |
|
1.51 |
% |
|
Federal funds sold and other short-term investments |
|
1,174,964 |
|
|
14,851 |
|
5.07 |
% |
|
|
449,543 |
|
|
5,264 |
|
4.75 |
% |
|
|
345,731 |
|
|
652 |
|
0.76 |
% |
|
Total interest-earning assets |
|
20,865,069 |
|
|
205,642 |
|
3.95 |
% |
|
|
21,771,473 |
|
|
193,325 |
|
3.60 |
% |
|
|
21,443,971 |
|
|
143,894 |
|
2.69 |
% |
|
Non-interest-earning assets |
|
1,084,413 |
|
|
|
|
|
|
739,270 |
|
|
|
|
|
|
962,734 |
|
|
|
|
|||||||
Total assets |
$ |
21,949,482 |
|
|
|
|
|
$ |
22,510,743 |
|
|
|
|
|
$ |
22,406,705 |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings |
$ |
1,552,702 |
|
$ |
47 |
|
0.01 |
% |
|
$ |
1,721,143 |
|
$ |
81 |
|
0.02 |
% |
|
$ |
2,041,495 |
|
$ |
51 |
|
0.01 |
% |
|
Interest checking |
|
4,270,945 |
|
|
6,141 |
|
0.58 |
% |
|
|
4,363,528 |
|
|
4,711 |
|
0.44 |
% |
|
|
4,877,256 |
|
|
2,061 |
|
0.17 |
% |
|
Money market |
|
5,064,469 |
|
|
26,611 |
|
2.11 |
% |
|
|
5,040,330 |
|
|
20,305 |
|
1.63 |
% |
|
|
5,069,609 |
|
|
745 |
|
0.06 |
% |
|
Time deposits |
|
2,275,844 |
|
|
23,347 |
|
4.11 |
% |
|
|
1,931,860 |
|
|
17,836 |
|
3.74 |
% |
|
|
426,923 |
|
|
204 |
|
0.19 |
% |
|
Total interest-bearing deposits |
|
13,163,960 |
|
|
56,146 |
|
1.71 |
% |
|
|
13,056,861 |
|
|
42,933 |
|
1.33 |
% |
|
|
12,415,283 |
|
|
3,061 |
|
0.10 |
% |
|
Borrowings |
|
348,597 |
|
|
4,031 |
|
4.64 |
% |
|
|
675,056 |
|
|
7,638 |
|
4.59 |
% |
|
|
35,330 |
|
|
53 |
|
0.60 |
% |
|
Total interest-bearing liabilities |
|
13,512,557 |
|
|
60,177 |
|
1.79 |
% |
|
|
13,731,917 |
|
|
50,571 |
|
1.49 |
% |
|
|
12,450,613 |
|
|
3,114 |
|
0.10 |
% |
|
Demand deposit accounts |
|
5,332,045 |
|
|
|
|
|
|
5,825,269 |
|
|
|
|
|
|
6,661,920 |
|
|
|
|
|||||||
Other noninterest-bearing liabilities |
|
505,555 |
|
|
|
|
|
|
493,387 |
|
|
|
|
|
|
428,373 |
|
|
|
|
|||||||
Total liabilities |
|
19,350,157 |
|
|
|
|
|
|
20,050,573 |
|
|
|
|
|
|
19,540,906 |
|
|
|
|
|||||||
Shareholders' equity |
|
2,599,325 |
|
|
|
|
|
|
2,460,170 |
|
|
|
|
|
|
2,865,799 |
|
|
|
|
|||||||
Total liabilities and shareholders' equity |
$ |
21,949,482 |
|
|
|
|
|
$ |
22,510,743 |
|
|
|
|
|
$ |
22,406,705 |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income - FTE |
|
|
$ |
145,465 |
|
|
|
|
|
$ |
142,754 |
|
|
|
|
|
$ |
140,780 |
|
|
|||||||
Net interest rate spread (2) |
|
|
|
|
2.16 |
% |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
2.59 |
% |
|||||||
Net interest-earning assets (3) |
$ |
7,352,512 |
|
|
|
|
|
$ |
8,039,556 |
|
|
|
|
|
$ |
8,993,358 |
|
|
|
|
|||||||
Net interest margin - FTE (4) |
|
|
|
|
2.80 |
% |
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
2.63 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Includes non-accrual loans. |
|||||||||||||||||||||||||||
(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
|||||||||||||||||||||||||||
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
|||||||||||||||||||||||||||
(4) Net interest margin - FTE represents fully-taxable equivalent net interest income* divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income. |
|||||||||||||||||||||||||||
(5) Presented on an annualized basis. |
|||||||||||||||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS |
||||||||||||||||||
|
As of and for the six months ended |
|||||||||||||||||
|
Jun 30, 2023 |
|
Jun 30, 2022 |
|||||||||||||||
(Unaudited, dollars in thousands) |
Avg. Balance |
|
Interest |
|
Yield / Cost (5) |
|
Avg. Balance |
|
Interest |
|
Yield / Cost (5) |
|||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans (1): |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial |
$ |
9,843,351 |
|
$ |
237,248 |
|
4.86 |
% |
|
$ |
8,958,795 |
|
$ |
161,811 |
|
3.64 |
% |
|
Residential |
|
2,513,679 |
|
|
43,605 |
|
3.50 |
% |
|
|
1,948,816 |
|
|
29,155 |
|
3.02 |
% |
|
Consumer |
|
1,364,345 |
|
|
41,105 |
|
6.08 |
% |
|
|
1,301,721 |
|
|
21,944 |
|
3.40 |
% |
|
Total loans |
|
13,721,375 |
|
|
321,958 |
|
4.73 |
% |
|
|
12,209,332 |
|
|
212,910 |
|
3.52 |
% |
|
Non-taxable investment securities |
|
197,755 |
|
|
3,634 |
|
3.71 |
% |
|
|
262,082 |
|
|
4,645 |
|
3.57 |
% |
|
Taxable investment securities |
|
6,582,380 |
|
|
53,260 |
|
1.63 |
% |
|
|
8,504,026 |
|
|
58,997 |
|
1.40 |
% |
|
Total investment securities |
|
6,780,135 |
|
|
56,894 |
|
1.69 |
% |
|
|
8,766,108 |
|
|
63,642 |
|
1.46 |
% |
|
Federal funds sold and other short-term investments |
|
814,257 |
|
|
20,115 |
|
4.98 |
% |
|
|
672,757 |
|
|
1,088 |
|
0.33 |
% |
|
Total interest-earning assets |
|
21,315,767 |
|
|
398,967 |
|
3.77 |
% |
|
|
21,648,197 |
|
|
277,640 |
|
2.59 |
% |
|
Non-interest-earning assets |
|
912,120 |
|
|
|
|
|
|
1,198,409 |
|
|
|
|
|||||
Total assets |
$ |
22,227,887 |
|
|
|
|
|
$ |
22,846,606 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Savings |
$ |
1,636,457 |
|
$ |
129 |
|
0.02 |
% |
|
$ |
2,059,027 |
|
$ |
102 |
|
0.01 |
% |
|
Interest checking |
|
4,316,981 |
|
|
10,853 |
|
0.51 |
% |
|
|
4,737,418 |
|
|
4,093 |
|
0.17 |
% |
|
Money market |
|
5,052,467 |
|
|
46,916 |
|
1.87 |
% |
|
|
5,317,559 |
|
|
1,665 |
|
0.06 |
% |
|
Time deposits |
|
2,104,802 |
|
|
41,181 |
|
3.95 |
% |
|
|
454,226 |
|
|
523 |
|
0.23 |
% |
|
Total interest-bearing deposits |
|
13,110,707 |
|
|
99,079 |
|
1.52 |
% |
|
|
12,568,230 |
|
|
6,383 |
|
0.10 |
% |
|
Borrowings |
|
510,925 |
|
|
11,669 |
|
4.61 |
% |
|
|
33,012 |
|
|
92 |
|
0.56 |
% |
|
Total interest-bearing liabilities |
|
13,621,632 |
|
|
110,748 |
|
1.64 |
% |
|
|
12,601,242 |
|
|
6,475 |
|
0.10 |
% |
|
Demand deposit accounts |
|
5,577,294 |
|
|
|
|
|
|
6,741,424 |
|
|
|
|
|||||
Other noninterest-bearing liabilities |
|
498,829 |
|
|
|
|
|
|
435,443 |
|
|
|
|
|||||
Total liabilities |
|
19,697,755 |
|
|
|
|
|
|
19,778,109 |
|
|
|
|
|||||
Shareholders' equity |
|
2,530,132 |
|
|
|
|
|
|
3,068,497 |
|
|
|
|
|||||
Total liabilities and shareholders' equity |
$ |
22,227,887 |
|
|
|
|
|
$ |
22,846,606 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income - FTE |
|
|
$ |
288,219 |
|
|
|
|
|
$ |
271,165 |
|
|
|||||
Net interest rate spread (2) |
|
|
|
|
2.13 |
% |
|
|
|
|
|
2.49 |
% |
|||||
Net interest-earning assets (3) |
$ |
7,694,135 |
|
|
|
|
|
$ |
9,046,955 |
|
|
|
|
|||||
Net interest margin - FTE (4) |
|
|
|
|
2.73 |
% |
|
|
|
|
|
2.53 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Includes non-accrual loans. |
||||||||||||||||||
(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
||||||||||||||||||
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
||||||||||||||||||
(4) Net interest margin - FTE represents fully-taxable equivalent net interest income* divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income. |
||||||||||||||||||
(5) Presented on an annualized basis. |
||||||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES ASSET QUALITY - NON-PERFORMING ASSETS (1) |
||||||||||||||||||||
|
As of |
|||||||||||||||||||
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
|||||||||||||||
Non-accrual loans: |
|
|
|
|
|
|||||||||||||||
Commercial |
$ |
14,178 |
|
$ |
17,271 |
|
$ |
21,474 |
|
$ |
19,886 |
|
$ |
43,628 |
|
|||||
Residential |
|
8,796 |
|
|
9,603 |
|
|
9,750 |
|
|
8,513 |
|
|
9,486 |
|
|||||
Consumer |
|
7,584 |
|
|
7,699 |
|
|
7,380 |
|
|
5,555 |
|
|
6,766 |
|
|||||
Total non-accrual loans |
|
30,558 |
|
|
34,573 |
|
|
38,604 |
|
|
33,954 |
|
|
59,880 |
|
|||||
Total accruing loans past due 90 days or more: |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Total non-performing loans |
|
30,558 |
|
|
34,573 |
|
|
38,604 |
|
|
33,954 |
|
|
59,880 |
|
|||||
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Other non-performing assets: |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Total non-performing assets |
$ |
30,558 |
|
$ |
34,573 |
|
$ |
38,604 |
|
$ |
33,954 |
|
$ |
59,880 |
|
|||||
Total accruing troubled debt restructured ("TDR") (2) |
$ |
— |
|
$ |
— |
|
$ |
28,834 |
|
$ |
36,275 |
|
$ |
33,518 |
|
|||||
Total non-performing loans to total loans |
|
0.22 |
% |
|
0.25 |
% |
|
0.28 |
% |
|
0.26 |
% |
|
0.48 |
% |
|||||
Total non-performing assets to total assets |
|
0.14 |
% |
|
0.15 |
% |
|
0.17 |
% |
|
0.15 |
% |
|
0.27 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
(1) Non-performing assets are comprised of NPLs, other real estate owned ("OREO"), and non-performing securities. NPLs consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest. OREO consists of real estate properties, which primarily serve as collateral to secure the Company’s loans, that it controls due to foreclosure or acceptance of a deed in lieu of foreclosure. |
||||||||||||||||||||
(2) The Company adopted ASU 2022-02 on January 1, 2023 which eliminated the TDR recognition and measurement guidance. Accordingly, the Company had no TDRs to report as of March 31, 2023 and subsequent periods. |
||||||||||||||||||||
EASTERN BANKSHARES, INC. AND SUBSIDIARIES ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES) |
||||||||||||||||||||
|
Three months ended |
|||||||||||||||||||
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
|||||||||||||||
Average total loans |
$ |
13,803,292 |
|
$ |
13,633,165 |
|
$ |
13,203,450 |
|
$ |
12,521,426 |
|
$ |
12,213,706 |
|
|||||
Allowance for loan losses, beginning of the period |
|
140,938 |
|
|
142,211 |
|
|
131,663 |
|
|
125,531 |
|
|
124,166 |
|
|||||
Total cumulative effect of change in accounting principle (1): |
|
— |
|
|
(1,143 |
) |
|
— |
|
|
— |
|
|
— |
|
|||||
Charged-off loans: |
|
|
|
|
|
|||||||||||||||
Commercial and industrial |
|
— |
|
|
— |
|
|
256 |
|
|
11 |
|
|
1 |
|
|||||
Commercial real estate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Business banking |
|
254 |
|
|
343 |
|
|
370 |
|
|
369 |
|
|
608 |
|
|||||
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Consumer home equity |
|
— |
|
|
7 |
|
|
1 |
|
|
— |
|
|
— |
|
|||||
Other consumer |
|
591 |
|
|
561 |
|
|
515 |
|
|
603 |
|
|
490 |
|
|||||
Total charged-off loans |
|
845 |
|
|
911 |
|
|
1,142 |
|
|
983 |
|
|
1,099 |
|
|||||
Recoveries on loans previously charged-off: |
|
|
|
|
|
|||||||||||||||
Commercial and industrial |
|
26 |
|
|
139 |
|
|
248 |
|
|
126 |
|
|
698 |
|
|||||
Commercial real estate |
|
2 |
|
|
4 |
|
|
38 |
|
|
3 |
|
|
36 |
|
|||||
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Business banking |
|
204 |
|
|
481 |
|
|
391 |
|
|
286 |
|
|
464 |
|
|||||
Residential real estate |
|
18 |
|
|
15 |
|
|
14 |
|
|
56 |
|
|
14 |
|
|||||
Consumer home equity |
|
— |
|
|
1 |
|
|
8 |
|
|
6 |
|
|
6 |
|
|||||
Other consumer |
|
111 |
|
|
116 |
|
|
111 |
|
|
158 |
|
|
196 |
|
|||||
Total recoveries |
|
361 |
|
|
756 |
|
|
810 |
|
|
635 |
|
|
1,414 |
|
|||||
Net loans charged-off (recoveries): |
|
|
|
|
|
|||||||||||||||
Commercial and industrial |
|
(26 |
) |
|
(139 |
) |
|
8 |
|
|
(115 |
) |
|
(697 |
) |
|||||
Commercial real estate |
|
(2 |
) |
|
(4 |
) |
|
(38 |
) |
|
(3 |
) |
|
(36 |
) |
|||||
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Business banking |
|
50 |
|
|
(138 |
) |
|
(21 |
) |
|
83 |
|
|
144 |
|
|||||
Residential real estate |
|
(18 |
) |
|
(15 |
) |
|
(14 |
) |
|
(56 |
) |
|
(14 |
) |
|||||
Consumer home equity |
|
— |
|
|
6 |
|
|
(7 |
) |
|
(6 |
) |
|
(6 |
) |
|||||
Other consumer |
|
480 |
|
|
445 |
|
|
404 |
|
|
445 |
|
|
294 |
|
|||||
Total net loans charged-off (recoveries) |
|
484 |
|
|
155 |
|
|
332 |
|
|
348 |
|
|
(315 |
) |
|||||
Provision for allowance for loan losses |
|
7,501 |
|
|
25 |
|
|
10,880 |
|
|
6,480 |
|
|
1,050 |
|
|||||
Total allowance for loan losses, end of period |
$ |
147,955 |
|
$ |
140,938 |
|
$ |
142,211 |
|
$ |
131,663 |
|
$ |
125,531 |
|
|||||
Net charge-offs (recoveries) to average total loans outstanding during this period (2) |
|
0.01 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
(0.01 |
)% |
|||||
Allowance for loan losses as a percent of total loans |
|
1.06 |
% |
|
1.03 |
% |
|
1.05 |
% |
|
1.02 |
% |
|
1.01 |
% |
|||||
Allowance for loan losses as a percent of nonperforming loans |
|
484.18 |
% |
|
407.65 |
% |
|
368.38 |
% |
|
387.77 |
% |
|
209.64 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
(1) For the quarter ended March 31, 2023, represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2022-02 (i.e., cumulative effect adjustment related to the adoption of ASU 2022-02 as of January 1, 2023). The adjustment represents a |
||||||||||||||||||||
(2) Presented on an annualized basis. |
||||||||||||||||||||
APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics
|
||||||||||||||||||||
|
As of and for the Three Months Ended |
|||||||||||||||||||
(Unaudited, dollars in thousands, except per-share data) |
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net income (loss) (GAAP) |
$ |
48,657 |
|
$ |
(194,096 |
) |
$ |
42,294 |
|
$ |
54,777 |
|
$ |
51,172 |
|
|||||
Add: |
|
|
|
|
|
|||||||||||||||
Noninterest income components: |
|
|
|
|
|
|||||||||||||||
(Income) losses from investments held in rabbi trusts |
|
(3,002 |
) |
|
(2,857 |
) |
|
(3,235 |
) |
|
2,248 |
|
|
7,316 |
|
|||||
Losses on sales of securities available for sale, net |
|
— |
|
|
333,170 |
|
|
683 |
|
|
198 |
|
|
104 |
|
|||||
Gains on sales of other assets |
|
(12 |
) |
|
(1 |
) |
|
(14 |
) |
|
(501 |
) |
|
(1,251 |
) |
|||||
Noninterest expense components: |
|
|
|
|
|
|||||||||||||||
Rabbi trust employee benefit expense (income) |
|
1,314 |
|
|
1,274 |
|
|
1,103 |
|
|
(867 |
) |
|
(3,310 |
) |
|||||
Merger and acquisition expenses |
|
— |
|
|
— |
|
|
— |
|
|
271 |
|
|
— |
|
|||||
Defined Benefit Plan settlement loss |
|
— |
|
|
— |
|
|
12,045 |
|
|
— |
|
|
— |
|
|||||
Total impact of non-GAAP adjustments |
|
(1,700 |
) |
|
331,586 |
|
|
10,582 |
|
|
1,349 |
|
|
2,859 |
|
|||||
Less net tax benefit associated with non-GAAP adjustments (1) |
|
1,634 |
|
|
76,377 |
|
|
2,964 |
|
|
384 |
|
|
1,513 |
|
|||||
Non-GAAP adjustments, net of tax |
$ |
(3,334 |
) |
$ |
255,209 |
|
$ |
7,618 |
|
$ |
965 |
|
$ |
1,346 |
|
|||||
Operating net income (non-GAAP) |
$ |
45,323 |
|
$ |
61,113 |
|
$ |
49,912 |
|
$ |
55,742 |
|
$ |
52,518 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Weighted average common shares outstanding during the period (2): |
|
|
|
|
|
|||||||||||||||
Basic |
|
162,232,236 |
|
|
161,991,373 |
|
|
162,032,522 |
|
|
163,718,962 |
|
|
166,533,920 |
|
|||||
Diluted |
|
162,246,675 |
|
|
162,059,431 |
|
|
162,263,547 |
|
|
164,029,649 |
|
|
166,573,627 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Earnings (loss) per share, basic |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.26 |
|
$ |
0.33 |
|
$ |
0.31 |
|
|||||
Earnings (loss) per share, diluted |
$ |
0.30 |
|
$ |
(1.20 |
) |
$ |
0.26 |
|
$ |
0.33 |
|
$ |
0.31 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Operating earnings per share, basic (non-GAAP) |
$ |
0.28 |
|
$ |
0.38 |
|
$ |
0.31 |
|
$ |
0.34 |
|
$ |
0.32 |
|
|||||
Operating earnings per share, diluted (non-GAAP) |
$ |
0.28 |
|
$ |
0.38 |
|
$ |
0.31 |
|
$ |
0.34 |
|
$ |
0.32 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Return on average assets (3) |
|
0.89 |
% |
|
(3.50 |
)% |
|
0.75 |
% |
|
0.97 |
% |
|
0.92 |
% |
|||||
Add: |
|
|
|
|
|
|||||||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.05 |
)% |
|
(0.05 |
)% |
|
(0.06 |
)% |
|
0.04 |
% |
|
0.13 |
% |
|||||
Losses on sales of securities available for sale, net (3) |
|
0.00 |
% |
|
6.00 |
% |
|
0.01 |
% |
|
0.00 |
% |
|
0.00 |
% |
|||||
Gains on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
(0.01 |
)% |
|
(0.02 |
)% |
|||||
Rabbi trust employee benefit expense (income) (3) |
|
0.02 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
(0.02 |
)% |
|
(0.06 |
)% |
|||||
Merger and acquisition expenses (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|||||
Defined Benefit Plan settlement loss (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.21 |
% |
|
0.00 |
% |
|
0.00 |
% |
|||||
Less net tax benefit associated with non-GAAP adjustments (1) (3) |
|
0.03 |
% |
|
1.38 |
% |
|
0.05 |
% |
|
0.01 |
% |
|
0.03 |
% |
|||||
Operating return on average assets (non-GAAP) (3) |
|
0.83 |
% |
|
1.09 |
% |
|
0.88 |
% |
|
0.97 |
% |
|
0.94 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Return on average shareholders' equity (3) |
|
7.51 |
% |
|
(32.00 |
)% |
|
6.93 |
% |
|
7.83 |
% |
|
7.16 |
% |
|||||
Add: |
|
|
|
|
|
|||||||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.46 |
)% |
|
(0.47 |
)% |
|
(0.53 |
)% |
|
0.32 |
% |
|
1.02 |
% |
|||||
Losses on sales of securities available for sale, net (3) |
|
0.00 |
% |
|
54.92 |
% |
|
0.11 |
% |
|
0.03 |
% |
|
0.01 |
% |
|||||
Gains on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
(0.07 |
)% |
|
(0.18 |
)% |
|||||
Rabbi trust employee benefit expense (income) (3) |
|
0.20 |
% |
|
0.21 |
% |
|
0.18 |
% |
|
(0.12 |
)% |
|
(0.46 |
)% |
|||||
Merger and acquisition expenses (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.04 |
% |
|
0.00 |
% |
|||||
Defined Benefit Plan settlement loss (3) |
|
0.00 |
% |
|
0.00 |
% |
|
1.97 |
% |
|
0.00 |
% |
|
0.00 |
% |
|||||
Less net tax benefit associated with non-GAAP adjustments (1) (3) |
|
0.25 |
% |
|
12.59 |
% |
|
0.49 |
% |
|
0.05 |
% |
|
0.21 |
% |
|||||
Operating return on average shareholders' equity (non-GAAP) (3) |
|
7.00 |
% |
|
10.07 |
% |
|
8.17 |
% |
|
7.98 |
% |
|
7.34 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Average tangible shareholders' equity: |
|
|
|
|
|
|||||||||||||||
Average total shareholders' equity (GAAP) |
$ |
2,599,325 |
|
$ |
2,460,170 |
|
$ |
2,420,174 |
|
$ |
2,776,691 |
|
$ |
2,865,799 |
|
|||||
Less: Average goodwill and other intangibles |
|
659,825 |
|
|
660,795 |
|
|
661,841 |
|
|
656,684 |
|
|
654,444 |
|
|||||
Average tangible shareholders' equity (non-GAAP) |
$ |
1,939,500 |
|
$ |
1,799,375 |
|
$ |
1,758,333 |
|
$ |
2,120,007 |
|
$ |
2,211,355 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Return on average tangible shareholders' equity (non-GAAP) (3) |
|
10.06 |
% |
|
(43.75 |
)% |
|
9.54 |
% |
|
10.25 |
% |
|
9.28 |
% |
|||||
Add: |
|
|
|
|
|
|||||||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.62 |
)% |
|
(0.64 |
)% |
|
(0.73 |
)% |
|
0.42 |
% |
|
1.33 |
% |
|||||
Losses on sales of securities available for sale, net (3) |
|
0.00 |
% |
|
75.09 |
% |
|
0.15 |
% |
|
0.04 |
% |
|
0.02 |
% |
|||||
Gains on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
(0.09 |
)% |
|
(0.23 |
)% |
|||||
Rabbi trust employee benefit expense (income) (3) |
|
0.27 |
% |
|
0.29 |
% |
|
0.25 |
% |
|
(0.16 |
)% |
|
(0.60 |
)% |
|||||
Merger and acquisition expenses (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.05 |
% |
|
0.00 |
% |
|||||
Defined Benefit Plan settlement loss (3) |
|
0.00 |
% |
|
0.00 |
% |
|
2.72 |
% |
|
0.00 |
% |
|
0.00 |
% |
|||||
Less net tax benefit associated with non-GAAP adjustments (1) (3) |
|
0.34 |
% |
|
17.21 |
% |
|
0.67 |
% |
|
0.07 |
% |
|
0.27 |
% |
|||||
Operating return on average tangible shareholders' equity (non-GAAP) (3) |
|
9.37 |
% |
|
13.78 |
% |
|
11.26 |
% |
|
10.44 |
% |
|
9.53 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
(1) The net tax benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. The net tax benefit amount for the six months ended June 30, 2023 resulted from the sale of securities classified as available for sale and included a |
||||||||||||||||||||
(2) Shares held by the Company’s employee stock ownership plan ("ESOP") that have not been allocated to employees in accordance with the terms of the ESOP are not deemed outstanding for earnings per share calculations. |
||||||||||||||||||||
(3) Presented on an annualized basis. |
||||||||||||||||||||
APPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses
|
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
|||||||||||||||
Net interest income (GAAP) |
$ |
141,588 |
|
$ |
138,309 |
|
$ |
149,994 |
|
$ |
152,179 |
|
$ |
137,757 |
|
|||||
Add: |
|
|
|
|
|
|||||||||||||||
Tax-equivalent adjustment (non-GAAP) (1) |
|
3,877 |
|
|
4,445 |
|
|
3,780 |
|
|
3,672 |
|
|
3,023 |
|
|||||
Fully-taxable equivalent net interest income (non-GAAP) |
$ |
145,465 |
|
$ |
142,754 |
|
$ |
153,774 |
|
$ |
155,851 |
|
$ |
140,780 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Noninterest income (loss) (GAAP) |
$ |
53,831 |
|
$ |
(278,330 |
) |
$ |
44,516 |
|
$ |
43,353 |
|
$ |
41,877 |
|
|||||
Less: |
|
|
|
|
|
|||||||||||||||
Income (losses) from investments held in rabbi trusts |
|
3,002 |
|
|
2,857 |
|
|
3,235 |
|
|
(2,248 |
) |
|
(7,316 |
) |
|||||
Losses on sales of securities available for sale, net |
|
— |
|
|
(333,170 |
) |
|
(683 |
) |
|
(198 |
) |
|
(104 |
) |
|||||
Gains on sales of other assets |
|
12 |
|
|
1 |
|
|
14 |
|
|
501 |
|
|
1,251 |
|
|||||
Noninterest income on an operating basis (non-GAAP) |
$ |
50,817 |
|
$ |
51,982 |
|
$ |
41,950 |
|
$ |
45,298 |
|
$ |
48,046 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Noninterest expense (GAAP) |
$ |
121,648 |
|
$ |
116,294 |
|
$ |
132,757 |
|
$ |
116,840 |
|
$ |
111,139 |
|
|||||
Less: |
|
|
|
|
|
|||||||||||||||
Rabbi trust employee benefit expense (income) |
|
1,314 |
|
|
1,274 |
|
|
1,103 |
|
|
(867 |
) |
|
(3,310 |
) |
|||||
Merger and acquisition expenses |
|
— |
|
|
— |
|
|
— |
|
|
271 |
|
|
— |
|
|||||
Defined Benefit Plan settlement loss |
|
— |
|
|
— |
|
|
12,045 |
|
|
— |
|
|
— |
|
|||||
Noninterest expense on an operating basis (non-GAAP) |
$ |
120,334 |
|
$ |
115,020 |
|
$ |
119,609 |
|
$ |
117,436 |
|
$ |
114,449 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Total revenue (loss) (GAAP) |
$ |
195,419 |
|
$ |
(140,021 |
) |
$ |
194,510 |
|
$ |
195,532 |
|
$ |
179,634 |
|
|||||
Total operating revenue (non-GAAP) |
$ |
196,282 |
|
$ |
194,736 |
|
$ |
195,724 |
|
$ |
201,149 |
|
$ |
188,826 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Efficiency ratio (GAAP) |
|
62.25 |
% |
|
(83.05 |
)% |
|
68.25 |
% |
|
59.75 |
% |
|
61.87 |
% |
|||||
Operating efficiency ratio (non-GAAP) |
|
61.31 |
% |
|
59.06 |
% |
|
61.11 |
% |
|
58.38 |
% |
|
60.61 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
(1) Interest income on tax-exempt loans and investment securities has been adjusted to an FTE basis using a marginal tax rate of |
||||||||||||||||||||
APPENDIX C: Reconciliation of Non-GAAP Capital Metrics
|
||||||||||||||||||||
|
As of |
|||||||||||||||||||
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|||||||||||||||
(Unaudited, dollars in thousands, except per-share data) |
|
|
|
|
|
|||||||||||||||
Tangible shareholders' equity: |
|
|
|
|
|
|||||||||||||||
Total shareholders' equity (GAAP) |
$ |
2,526,772 |
|
$ |
2,579,123 |
|
$ |
2,471,790 |
|
$ |
2,416,163 |
|
$ |
2,718,396 |
|
|||||
Less: Goodwill and other intangibles |
|
658,993 |
|
|
660,165 |
|
|
661,126 |
|
|
662,222 |
|
|
653,853 |
|
|||||
Tangible shareholders' equity (non-GAAP) |
|
1,867,779 |
|
|
1,918,958 |
|
|
1,810,664 |
|
|
1,753,941 |
|
|
2,064,543 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Tangible assets: |
|
|
|
|
|
|||||||||||||||
Total assets (GAAP) |
|
21,583,493 |
|
|
22,720,530 |
|
|
22,646,858 |
|
|
22,042,933 |
|
|
22,350,848 |
|
|||||
Less: Goodwill and other intangibles |
|
658,993 |
|
|
660,165 |
|
|
661,126 |
|
|
662,222 |
|
|
653,853 |
|
|||||
Tangible assets (non-GAAP) |
$ |
20,924,500 |
|
$ |
22,060,365 |
|
$ |
21,985,732 |
|
$ |
21,380,711 |
|
$ |
21,696,995 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Shareholders' equity to assets ratio (GAAP) |
|
11.71 |
% |
|
11.35 |
% |
|
10.91 |
% |
|
10.96 |
% |
|
12.16 |
% |
|||||
Tangible shareholders' equity to tangible assets ratio (non-GAAP) |
|
8.93 |
% |
|
8.70 |
% |
|
8.24 |
% |
|
8.20 |
% |
|
9.52 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Common shares outstanding |
|
176,376,675 |
|
|
176,328,426 |
|
|
176,172,073 |
|
|
177,772,553 |
|
|
179,253,801 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Book value per share (GAAP) |
$ |
14.33 |
|
$ |
14.63 |
|
$ |
14.03 |
|
$ |
13.59 |
|
$ |
15.17 |
|
|||||
Tangible book value per share (non-GAAP) |
$ |
10.59 |
|
$ |
10.88 |
|
$ |
10.28 |
|
$ |
9.87 |
|
$ |
11.52 |
|
|||||
APPENDIX D: Tangible Shareholders’ Equity Roll Forward Analysis
|
||||||
|
As of |
|
Change from |
|||
|
Jun 30, 2023 |
Mar 31, 2023 |
|
Mar 31, 2023 |
||
(Unaudited, dollars in thousands, except per-share data) |
|
|
|
|
||
Common stock |
|
|
|
|
||
Additional paid in capital |
1,656,750 |
1,651,524 |
|
5,226 |
||
Unallocated ESOP common stock |
(135,232) |
(136,470) |
|
1,238 |
||
Retained earnings |
1,704,470 |
1,672,169 |
|
32,301 |
||
AOCI, net of tax - available for sale securities |
(646,611) |
(588,125) |
|
(58,486) |
||
AOCI, net of tax - pension |
6,381 |
6,742 |
|
(361) |
||
AOCI, net of tax - cash flow hedge |
(60,752) |
(28,481) |
|
(32,271) |
||
Total shareholders' equity: |
|
|
|
|
||
Less: Goodwill and other intangibles |
658,993 |
660,165 |
|
(1,172) |
||
Tangible shareholders' equity (non-GAAP) |
|
|
|
|
||
|
|
|
|
|
||
Common shares outstanding |
176,376,675 |
176,328,426 |
|
48,249 |
||
|
|
|
|
|
||
Per share: |
|
|
|
|
||
Common stock |
|
|
|
$ — |
||
Additional paid in capital |
9.39 |
9.37 |
|
0.03 |
||
Unallocated ESOP common stock |
(0.77) |
(0.77) |
|
0.01 |
||
Retained earnings |
9.66 |
9.48 |
|
0.18 |
||
AOCI, net of tax - available for sale securities |
(3.67) |
(3.34) |
|
(0.33) |
||
AOCI, net of tax - pension |
0.04 |
0.04 |
|
— |
||
AOCI, net of tax - cash flow hedge |
(0.34) |
(0.16) |
|
(0.18) |
||
Total shareholders' equity: |
|
|
|
|
||
Less: Goodwill and other intangibles |
3.74 |
3.74 |
|
(0.01) |
||
Tangible shareholders' equity (non-GAAP) |
|
|
|
|
||
APPENDIX E: HTM-Marked Tangible Common Equity Ratio
|
||||||||
|
As of |
|||||||
|
Jun 30, 2023 |
Mar 31, 2023 |
||||||
(Unaudited, dollars in thousands, except per-share data) |
|
|
||||||
HTM-marked tangible shareholders' equity: |
|
|
||||||
Total shareholders' equity (GAAP) |
$ |
2,526,772 |
|
$ |
2,579,123 |
|
||
Less: Goodwill and other intangibles |
|
658,993 |
|
|
660,165 |
|
||
Less: After-tax fair value mark on HTM securities (1) |
|
37,462 |
|
|
32,841 |
|
||
HTM-marked tangible shareholders' equity (non-GAAP) |
|
1,830,317 |
|
|
1,886,117 |
|
||
|
|
|
||||||
HTM-marked tangible assets: |
|
|
||||||
Total assets (GAAP) |
|
21,583,493 |
|
|
22,720,530 |
|
||
Less: Goodwill and other intangibles |
|
658,993 |
|
|
660,165 |
|
||
Less: After-tax fair value mark on HTM securities (1) |
|
37,462 |
|
|
32,841 |
|
||
HTM-marked tangible assets (non-GAAP) |
|
20,887,038 |
|
|
22,027,524 |
|
||
|
|
|
||||||
Shareholders' equity to assets ratio (GAAP) |
|
11.71 |
% |
|
11.35 |
% |
||
HTM-marked tangible shareholders' equity to HTM-marked tangible assets ratio (non-GAAP) |
|
8.76 |
% |
|
8.56 |
% |
||
|
|
|
||||||
(1) Assumes pre-tax mark-to-market adjustments are tax-effected at an effective tax rate of |
|
|||||||
APPENDIX F: Regulatory Capital Ratios |
|||||||||
As of June 30, 2023 |
|||||||||
(Unaudited, dollars in thousands) |
Eastern Bankshares, Inc.1 |
Minimum Capital Required to be Well-Capitalized under Prompt Corrective Action Provisions |
Capital Amount Above Minimums1 |
||||||
Tier 1 capital (to average assets) leverage |
11.72 |
% |
5.00 |
% |
$ |
1,483,557 |
|||
Common equity Tier 1 capital (to risk-weighted assets) |
15.69 |
% |
6.50 |
% |
$ |
1,515,326 |
|||
Tier 1 capital (to risk-weighted assets) |
15.69 |
% |
8.00 |
% |
$ |
1,267,993 |
|||
Total regulatory capital (to risk-weighted assets) |
16.68 |
% |
10.00 |
% |
$ |
1,101,456 |
|||
|
|
|
|
||||||
|
|
|
|
||||||
1Regulatory capital figures are preliminary estimates. |
|||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230727698621/en/
Investor Contact
Jillian Belliveau
Eastern Bankshares, Inc.
InvestorRelations@easternbank.com
781-598-7920
Media Contact
Andrea Goodman
Eastern Bank
a.goodman@easternbank.com
781-598-7847
Source: Eastern Bank
