Eastern Bankshares, Inc. Reports Second Quarter 2024 Financial Results
Eastern Bankshares, Inc. (NASDAQ: EBC) reported its Q2 2024 financial results, announcing net income of $26.3 million, or $0.16 per diluted share. The company completed its merger with Cambridge Bancorp on July 12, 2024, surpassing $25 billion in assets. Key highlights include:
- Operating net income of $36.5 million, or $0.22 per diluted share
- Net interest margin (FTE) declined to 2.64%
- Total loans increased by $56.8 million to $14.1 billion
- Deposits declined by $129 million to $17.5 billion
- Non-performing loans reduced from 0.41% to 0.28% of total loans
- Board approved a new share repurchase program of up to 10.8 million shares
The company declared a quarterly cash dividend of $0.11 per common share, payable on September 16, 2024.
Eastern Bankshares, Inc. (NASDAQ: EBC) ha riportato i risultati finanziari per il secondo trimestre del 2024, annunciando un , equivalenti a 0,16 dollari per azione diluita. L'azienda ha completato la sua fusione con Cambridge Bancorp il 12 luglio 2024, superando 25 miliardi di dollari in attivi. I punti salienti includono:
- Utile netto operativo di 36,5 milioni di dollari, o 0,22 dollari per azione diluita
- Il margine di interesse netto (FTE) è diminuito al 2,64%
- I prestiti totali sono aumentati di 56,8 milioni di dollari, raggiungendo 14,1 miliardi di dollari
- I depositi sono diminuiti di 129 milioni di dollari, portandosi a 17,5 miliardi di dollari
- I prestiti non performanti sono scesi dallo 0,41% allo 0,28% dei prestiti totali
- Il consiglio di amministrazione ha approvato un nuovo programma di riacquisto di azioni fino a 10,8 milioni di azioni
L'azienda ha dichiarato un dividendo in contante trimestrale di 0,11 dollari per azione ordinaria, pagabile il 16 settembre 2024.
Eastern Bankshares, Inc. (NASDAQ: EBC) reportó sus resultados financieros del segundo trimestre de 2024, anunciando un ingreso neto de 26,3 millones de dólares, o 0,16 dólares por acción diluida. La empresa completó su fusión con Cambridge Bancorp el 12 de julio de 2024, superando 25 mil millones de dólares en activos. Los aspectos destacados incluyen:
- Ingreso neto operativo de 36,5 millones de dólares, o 0,22 dólares por acción diluida
- El margen de interés neto (FTE) ha disminuido al 2,64%
- Los préstamos totales aumentaron en 56,8 millones de dólares, alcanzando 14,1 mil millones de dólares
- Los depósitos disminuyeron en 129 millones de dólares, totalizando 17,5 mil millones de dólares
- Los préstamos no productivos se redujeron del 0,41% al 0,28% de los préstamos totales
- La junta aprobó un nuevo programa de recompra de acciones de hasta 10,8 millones de acciones
La empresa declaró un dividendo en efectivo trimestral de 0,11 dólares por acción común, pagadero el 16 de septiembre de 2024.
이스턴 뱅크쉐어스 주식회사 (NASDAQ: EBC)는 2024년 2분기 재무 결과를 발표하며 순이익 2,630만 달러, 즉 희석 주당 0.16 달러를 보고했습니다. 이 회사는 2024년 7월 12일 케임브리지 뱅코프와의 합병을 완료하며 250억 달러 이상의 자산을 초과했습니다. 주요 하이라이트는 다음과 같습니다:
- 운영 순이익 3,650만 달러, 즉 희석 주당 0.22 달러
- 순이자마진(FTE)은 2.64%로 하락
- 총 대출이 5680만 달러 증가하여 141억 달러에 도달
- 예금이 1억 2900만 달러 감소하여 175억 달러로 하락
- 비수익 대출이 전체 대출에서 0.41%에서 0.28%로 감소
- 이사회는 최대 1,080만 주의 자사주 매입 프로그램을 승인했습니다
회사는 2024년 9월 16일 지급 예정인 보통주 0.11 달러의 분기 현금 배당금을 선언했습니다.
Eastern Bankshares, Inc. (NASDAQ: EBC) a annoncé ses résultats financiers pour le deuxième trimestre 2024, indiquant un revenu net de 26,3 millions de dollars, soit 0,16 dollar par action diluée. L'entreprise a finalisé sa fusion avec Cambridge Bancorp le 12 juillet 2024, dépassant 25 milliards de dollars d'actifs. Les principaux points saillants comprennent :
- Revenu net d'exploitation de 36,5 millions de dollars, soit 0,22 dollar par action diluée
- La marge d'intérêt nette (FTE) a diminué à 2,64%
- Les prêts totaux ont augmenté de 56,8 millions de dollars pour atteindre 14,1 milliards de dollars
- Les dépôts ont diminué de 129 millions de dollars pour s'établir à 17,5 milliards de dollars
- Les prêts non performants ont baissé de 0,41% à 0,28% des prêts totaux
- Le conseil d'administration a approuvé un nouveau programme de rachat d'actions pouvant aller jusqu'à 10,8 millions d'actions
L'entreprise a déclaré un dividende en espèces trimestriel de 0,11 dollar par action ordinaire, payable le 16 septembre 2024.
Eastern Bankshares, Inc. (NASDAQ: EBC) berichtete über seine finanziellen Ergebnisse für das 2. Quartal 2024 und gab bekannt, dass der Nettogewinn 26,3 Millionen Dollar betrug, was 0,16 Dollar pro verwässerter Aktie entspricht. Das Unternehmen schloss am 12. Juli 2024 seine Fusion mit Cambridge Bancorp ab und überschritt 25 Milliarden Dollar an Vermögenswerten. Zu den wichtigsten Highlights gehören:
- Operativer Nettogewinn von 36,5 Millionen Dollar, oder 0,22 Dollar pro verwässerter Aktie
- Die Nettomarge (FTE) fiel auf 2,64%
- Die Gesamtverpflichtungen erhöhten sich um 56,8 Millionen Dollar auf 14,1 Milliarden Dollar
- Die Einlagen sanken um 129 Millionen Dollar auf 17,5 Milliarden Dollar
- Die notleidenden Kredite sanken von 0,41% auf 0,28% der Gesamtkredite
- Der Vorstand genehmigte ein neues Aktienrückkaufprogramm von bis zu 10,8 Millionen Aktien
Das Unternehmen erklärte eine vierteljährliche Bardividende von 0,11 Dollar pro Stammaktie, zahlbar am 16. September 2024.
- Completed merger with Cambridge Bancorp, surpassing $25 billion in assets
- Total loans increased by $56.8 million to $14.1 billion
- Non-performing loans reduced from 0.41% to 0.28% of total loans
- Net recoveries of 0.02% of average total loans, compared to net charge-offs of 0.21% in the prior quarter
- Board approved a new share repurchase program of up to 10.8 million shares
- Declared quarterly cash dividend of $0.11 per common share
- Net income decreased to $26.3 million, compared to $36.5 million operating net income
- Net interest margin declined to 2.64% from 2.68% in the prior quarter
- Deposits declined by $129 million, or 2.9% on an annualized basis
- Sold securities totaling $85 million at a loss of $7.6 million
- Recorded a provision for loan losses of $6.1 million
Eastern Bankshares' Q2 2024 results reveal a mixed financial picture. The net income of
The net interest margin declined slightly to
The bank's decision to sell
The newly authorized share repurchase program of up to 10.8 million shares ( to
Overall, while Eastern Bankshares maintains a solid foundation, the slight margin compression, deposit volatility and securities losses warrant close monitoring in the coming quarters.
Eastern Bankshares' recent merger with Cambridge Bancorp marks a significant strategic move, propelling the company beyond
The merger's timing is crucial, coming as the banking sector faces challenges from rising interest rates and economic uncertainties. By expanding its wealth management offerings and digital capabilities, Eastern is diversifying its revenue streams and potentially insulating itself from some interest rate pressures.
However, the true test will be in the execution. The financial impact of the merger, set to be revealed in Q3, will be a critical indicator of its success. Integration costs and potential cultural clashes could pose short-term challenges.
The banking landscape in New England is highly competitive, with players like Citizens Financial Group and Berkshire Bank also vying for market share. Eastern's enhanced scale and expanded product suite could help it compete more effectively, but it may also face increased regulatory scrutiny as it approaches the
Investors should watch for synergy realization, deposit growth trends and any shifts in the loan portfolio mix in the coming quarters to gauge the merger's success and Eastern's competitive positioning in this evolving market.
~ Company Announces Authorization of Share Repurchase Program ~
On July 12, 2024, the Company completed its merger (“the merger”) with Cambridge Bancorp (“Cambridge”) and surpassed
“I’m very pleased with our second quarter financial results, which demonstrate the continued strength and stability of our franchise,” said Bob Rivers, Executive Chair and Chair of the Board of the Company and Eastern Bank. “Shortly after the close of the second quarter, we joined forces with Cambridge. The complementary strengths of each bank will allow us to better serve our customers with a full suite of commercial and consumer banking products and services, as well as wealth management offerings, supported by strong digital capabilities. This enhanced ability to serve our customers – combined with our financial strength and community focus – will continue to drive value for all our stakeholders and further solidify Eastern as Greater Boston’s leading local bank.”
Mr. Rivers continued, “Our Board’s approval of a new share repurchase program is a testament to the Company’s strong capital and liquidity position, and our commitment to creating shareholder value.”
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2024
-
Net income of
, or$26.3 million per diluted share. Operating net income* of$0.16 , or$36.5 million per diluted share.$0.22 -
The net interest margin on a fully tax equivalent (“FTE”) basis* declined modestly to
2.64% as compared to2.68% in the prior quarter. -
Total loans increased
, or$56.8 million 1.6% on an annualized basis, from the prior quarter, to .$14.1 billion -
Deposits declined
, or$129 million 2.9% on an annualized basis, driven by the early withdrawal of a omnibus deposit contract for which the bank received an early termination payment of$100 million . Excluding this early withdrawal, deposits were relatively stable from the prior quarter.$7.8 million -
Average deposits increased
in the second quarter, or$192.9 million 1.1% . -
Eastern sold securities totaling
in the quarter at a loss of$85 million .$7.6 million -
Non-performing loans (“NPLs”) reduced from
to$57.2 million or from$39.8 million 0.41% to0.28% of total loans. The reduction was driven by the resolution of two NPLs in the second quarter. -
Net recoveries of
0.02% of average total loans, compared to net charge-offs of0.21% in the prior quarter, both on an annualized basis.
BALANCE SHEET
Total assets were
-
Cash and equivalents increased
from the prior quarter to$11.8 million .$750.8 million -
Total securities decreased
, or$196.9 million 4.2% , from the prior quarter, to , due to the sale of approximately$4.5 billion in available for sale securities (“AFS securities”) and principal runoff.$85 million -
Loans totaled
, representing an increase of$14.1 billion , or$56.8 million 0.4% , from the prior quarter, driven primarily by consumer loan growth of .$51.3 million -
Deposits totaled
, representing a decrease of$17.5 billion , or$128.9 million 0.7% , from the prior quarter, driven primarily by the early withdrawal of a omnibus deposit contract, which was inherited from Eastern’s acquisition of Century Bank and Trust Company in 2021. Average deposits increased$100 million in the second quarter, or$192.9 million 1.1% . The Company had no brokered deposits at June 30, 2024 and March 31, 2024. -
Federal Home Loan Bank advances decreased
from the prior quarter to$0.2 million .$17.4 million -
Shareholders’ equity was
, representing an increase of$3.0 billion from the prior quarter, driven primarily by an increase in retained earnings.$14.6 million -
At June 30, 2024, book value per share was
and tangible book value per share* was$16.80 . Please refer to Appendix D to this press release for a roll-forward of tangible shareholders’ equity*.$13.60
NET INTEREST INCOME
Net interest income was
-
The net interest margin on a FTE basis* was
2.64% for the second quarter, representing a 4 basis point decrease from the prior quarter, as higher funding costs more than offset increases in interest-earning asset yields. -
Total interest-earning assets yield increased 6 basis points from the prior quarter to
4.19% , due primarily to an increase in loan yields of 3 basis points, as well as higher other short-term investments volume. -
Total interest-bearing liabilities cost increased 12 basis points from the prior quarter to
2.44% , due primarily to higher deposit costs resulting from deposit mix shifts.
NONINTEREST INCOME
Noninterest income was
-
Service charges on deposit accounts increased
from the prior quarter to$0.4 million .$7.9 million -
Trust and investment advisory fees increased
from the prior quarter to$0.2 million .$6.7 million -
Debit card processing fees increased
from the prior quarter to$0.3 million .$3.5 million -
Loan-level interest rate swap income decreased
from the prior quarter to$0.2 million .$0.4 million -
Income from investments held in rabbi trust accounts decreased
from the prior quarter to$2.6 million . The quarter over quarter change was driven by investment performance.$1.8 million -
Losses on sales of mortgage loans held for sale were
, compared to losses of$0.2 million in the prior quarter.$0.1 million -
Losses on sales of AFS securities were
due to the sale of approximately$7.6 million of AFS securities. There were no losses on sales of AFS securities in the prior quarter.$85 million -
Other noninterest income increased
in the second quarter to$7.2 million . The increase was driven primarily by the early termination payment of$12.7 million received from the aforementioned omnibus deposit early withdrawal.$7.8 million
NONINTEREST EXPENSE
Noninterest expense was
-
Salaries and employee benefits expense was
, an increase of$65.2 million from the prior quarter.$0.7 million -
Office occupancy and equipment expense was
, an increase of$10.1 million from the prior quarter, due primarily to the move to the Company’s new corporate headquarters.$0.9 million -
Data processing expense was
, an increase of$18.0 million from the prior quarter, due primarily to an increase of$1.5 million in merger related data processing expenses from the prior quarter.$1.4 million -
Professional services expense was
in the second quarter, an increase of$4.3 million from the prior quarter.$0.7 million -
Marketing expense was
, an increase of$1.9 million from the prior quarter, due primarily to higher advertising expenses.$0.4 million -
Federal Deposit Insurance Corporation (“FDIC”) insurance expense was
, an increase of$4.5 million from the prior quarter, primarily due to an increase of$2.2 million to the FDIC special assessment first incurred in the fourth quarter of 2023.$1.9 million -
Other noninterest expense was
, an increase of$5.4 million from the prior quarter, due primarily to a lower level of provision release for off balance sheet exposures of$2.2 million .$1.5 million
Please refer to Appendix E for additional detail on M&A expenses*.
ASSET QUALITY
Non-performing loans (“NPLs”) totaled
During the second quarter of 2024, the Company recorded total net recoveries of
The Company recorded a provision for loan losses totaling
DIVIDENDS AND SHARE REPURCHASES
The Company’s Board of Directors has declared a quarterly cash dividend of
The Company’s Board of Directors has authorized a share repurchase program of up to 10.8 million shares, representing
CONFERENCE CALL AND PRESENTATION INFORMATION
A conference call and webcast covering Eastern’s second quarter 2024 earnings will be held on Friday, July 26, 2024 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (800) 549-8228 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. Except as otherwise indicated, these non-GAAP financial measures presented in this press release exclude discontinued operations.
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, (ix) certain discrete tax items, and (x) net income from discontinued operations. 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”, “outlook” 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 associated with the Company’s implementation of the merger with Cambridge Bancorp, including that the combined companies may not perform as expected due to transaction-related uncertainty or other factors; that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that following completion of the transaction, Eastern’s business may not perform as expected due to transaction-related uncertainty or other factors; that Eastern is unable to successfully implement integration strategies; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; reputational risks and the reaction of customers to the transaction; the inability to implement onboarding plans and other consequences associated with mergers; the diversion of management time and Company resources on merger-related issues; and disruptions arising from transitions in management personnel; 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 subsidiaries, including 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 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 (1)
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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
|
|
|
|
|
|
||||||||||
Earnings data |
|
|
|
|
|
||||||||||
Net interest income |
$ |
128,649 |
|
$ |
129,900 |
|
$ |
133,307 |
|
$ |
137,205 |
|
$ |
141,588 |
|
Noninterest income |
|
25,348 |
|
|
27,692 |
|
|
26,739 |
|
|
19,157 |
|
|
26,204 |
|
Total revenue |
|
153,997 |
|
|
157,592 |
|
|
160,046 |
|
|
156,362 |
|
|
167,792 |
|
Noninterest expense |
|
109,869 |
|
|
101,202 |
|
|
121,029 |
|
|
101,748 |
|
|
99,934 |
|
Pre-tax, pre-provision income |
|
44,128 |
|
|
56,390 |
|
|
39,017 |
|
|
54,614 |
|
|
67,858 |
|
Provision for allowance for loan losses |
|
6,126 |
|
|
7,451 |
|
|
5,198 |
|
|
7,328 |
|
|
7,501 |
|
Pre-tax income |
|
38,002 |
|
|
48,939 |
|
|
33,819 |
|
|
47,286 |
|
|
60,357 |
|
Net income from continuing operations |
|
26,331 |
|
|
38,647 |
|
|
31,509 |
|
|
63,464 |
|
|
44,419 |
|
Net income (loss) from discontinued operations |
|
— |
|
|
— |
|
|
286,994 |
|
|
(4,351 |
) |
|
4,238 |
|
Net income |
|
26,331 |
|
|
38,647 |
|
|
318,503 |
|
|
59,113 |
|
|
48,657 |
|
Operating net income (non-GAAP) |
|
36,519 |
|
|
38,081 |
|
|
16,875 |
|
|
52,085 |
|
|
41,092 |
|
|
|
|
|
|
|
||||||||||
Per-share data |
|
|
|
|
|
||||||||||
Earnings (loss) per share, diluted |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
1.95 |
|
$ |
0.36 |
|
$ |
0.30 |
|
Continuing operations |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.19 |
|
$ |
0.39 |
|
$ |
0.27 |
|
Discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
1.76 |
|
$ |
(0.03 |
) |
$ |
0.03 |
|
Operating earnings per share, diluted (non-GAAP) |
$ |
0.22 |
|
$ |
0.23 |
|
$ |
0.10 |
|
$ |
0.32 |
|
$ |
0.25 |
|
Book value per share |
$ |
16.80 |
|
$ |
16.72 |
|
$ |
16.86 |
|
$ |
13.87 |
|
$ |
14.33 |
|
Tangible book value per share (non-GAAP) |
$ |
13.60 |
|
$ |
13.51 |
|
$ |
13.65 |
|
$ |
10.14 |
|
$ |
10.59 |
|
|
|
|
|
|
|
||||||||||
Profitability |
|
|
|
|
|
||||||||||
Return on average assets (2) |
|
0.50 |
% |
|
0.74 |
% |
|
0.59 |
% |
|
1.18 |
% |
|
0.81 |
% |
Operating return on average assets (non-GAAP) (2) |
|
0.70 |
% |
|
0.72 |
% |
|
0.31 |
% |
|
0.97 |
% |
|
0.75 |
% |
Return on average shareholders' equity (2) |
|
3.62 |
% |
|
5.23 |
% |
|
4.66 |
% |
|
9.91 |
% |
|
6.85 |
% |
Operating return on average shareholders' equity (2) |
|
5.03 |
% |
|
5.17 |
% |
|
2.51 |
% |
|
8.14 |
% |
|
6.34 |
% |
Return on average tangible shareholders' equity (non-GAAP) (2) |
|
4.48 |
% |
|
6.46 |
% |
|
5.99 |
% |
|
13.38 |
% |
|
9.19 |
% |
Operating return on average tangible shareholders' equity (non-GAAP) (2) |
|
6.22 |
% |
|
6.36 |
% |
|
3.20 |
% |
|
10.99 |
% |
|
8.50 |
% |
Net interest margin (FTE) (2) |
|
2.64 |
% |
|
2.68 |
% |
|
2.69 |
% |
|
2.77 |
% |
|
2.80 |
% |
Cost of deposits (2) |
|
1.78 |
% |
|
1.66 |
% |
|
1.51 |
% |
|
1.33 |
% |
|
1.22 |
% |
Efficiency ratio |
|
71.34 |
% |
|
64.22 |
% |
|
75.62 |
% |
|
65.07 |
% |
|
59.56 |
% |
Operating efficiency ratio (non-GAAP) |
|
64.04 |
% |
|
61.89 |
% |
|
73.59 |
% |
|
60.83 |
% |
|
58.47 |
% |
|
|
|
|
|
|
||||||||||
Balance Sheet (end of period) |
|
|
|
|
|
||||||||||
Total assets |
$ |
21,044,169 |
|
$ |
21,174,804 |
|
$ |
21,133,278 |
|
$ |
21,146,292 |
|
$ |
21,583,493 |
|
Total loans |
|
14,145,520 |
|
|
14,088,747 |
|
|
13,973,428 |
|
|
13,919,275 |
|
|
13,961,878 |
|
Total deposits |
|
17,537,809 |
|
|
17,666,733 |
|
|
17,596,217 |
|
|
17,424,169 |
|
|
18,180,972 |
|
Total loans / total deposits |
|
81 |
% |
|
80 |
% |
|
79 |
% |
|
80 |
% |
|
77 |
% |
|
|
|
|
|
|
||||||||||
Asset quality |
|
|
|
|
|
||||||||||
Allowance for loan losses ("ALLL") |
$ |
156,146 |
|
$ |
149,190 |
|
$ |
148,993 |
|
$ |
155,146 |
|
$ |
147,955 |
|
ALLL / total nonperforming loans ("NPLs") |
|
392.61 |
% |
|
260.94 |
% |
|
283.49 |
% |
|
326.86 |
% |
|
484.18 |
% |
Total NPLs / total loans |
|
0.28 |
% |
|
0.41 |
% |
|
0.38 |
% |
|
0.34 |
% |
|
0.22 |
% |
Net (recoveries) charge-offs ("NCOs") / average total loans (2) |
|
(0.02 |
)% |
|
0.21 |
% |
|
0.32 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
|
|
|
|
|
||||||||||
Capital adequacy |
|
|
|
|
|
||||||||||
Shareholders' equity / assets |
|
14.10 |
% |
|
13.95 |
% |
|
14.08 |
% |
|
11.57 |
% |
|
11.71 |
% |
Tangible shareholders' equity / tangible assets (non-GAAP) |
|
11.73 |
% |
|
11.58 |
% |
|
11.71 |
% |
|
8.73 |
% |
|
8.93 |
% |
|
|
|
|
|
|
||||||||||
(1) Total assets, average assets and average tangible shareholders' equity components as of and for the three months ended Dec 31, 2023 and preceding periods presented in this table include discontinued operations. |
|||||||||||||||
(2) Presented on an annualized basis. |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||
|
As of |
|
Jun 30, 2024 change from |
||||||||||||||||||
(Unaudited, dollars in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Jun 30, 2023 |
|
Mar 31, 2024 |
|
Jun 30, 2023 |
||||||||||||||
ASSETS |
|
|
|
|
△ $ |
△ % |
|
△ $ |
△ % |
||||||||||||
Cash and due from banks |
$ |
72,890 |
|
$ |
71,492 |
|
$ |
105,066 |
|
|
$ |
1,398 |
|
2 |
% |
|
$ |
(32,176 |
) |
(31 |
)% |
Short-term investments |
|
677,958 |
|
|
667,526 |
|
|
768,436 |
|
|
|
10,432 |
|
2 |
% |
|
|
(90,478 |
) |
(12 |
)% |
Cash and cash equivalents |
|
750,848 |
|
|
739,018 |
|
|
873,502 |
|
|
|
11,830 |
|
2 |
% |
|
|
(122,654 |
) |
(14 |
)% |
Available for sale ("AFS") securities |
|
4,097,842 |
|
|
4,287,585 |
|
|
4,520,293 |
|
|
|
(189,743 |
) |
(4 |
)% |
|
|
(422,451 |
) |
(9 |
)% |
Held to maturity ("HTM") securities |
|
436,712 |
|
|
443,833 |
|
|
465,061 |
|
|
|
(7,121 |
) |
(2 |
)% |
|
|
(28,349 |
) |
(6 |
)% |
Total securities |
|
4,534,554 |
|
|
4,731,418 |
|
|
4,985,354 |
|
|
|
(196,864 |
) |
(4 |
)% |
|
|
(450,800 |
) |
(9 |
)% |
Loans held for sale |
|
1,308 |
|
|
2,204 |
|
|
2,835 |
|
|
|
(896 |
) |
(41 |
)% |
|
|
(1,527 |
) |
(54 |
)% |
Loans: |
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial |
|
3,084,186 |
|
|
3,084,580 |
|
|
3,341,976 |
|
|
|
(394 |
) |
— |
% |
|
|
(257,790 |
) |
(8 |
)% |
Commercial real estate |
|
5,440,411 |
|
|
5,519,505 |
|
|
5,242,290 |
|
|
|
(79,094 |
) |
(1 |
)% |
|
|
198,121 |
|
4 |
% |
Commercial construction |
|
447,157 |
|
|
388,024 |
|
|
371,367 |
|
|
|
59,133 |
|
15 |
% |
|
|
75,790 |
|
20 |
% |
Business banking |
|
1,108,163 |
|
|
1,100,637 |
|
|
1,089,548 |
|
|
|
7,526 |
|
1 |
% |
|
|
18,615 |
|
2 |
% |
Total commercial loans |
|
10,079,917 |
|
|
10,092,746 |
|
|
10,045,181 |
|
|
|
(12,829 |
) |
— |
% |
|
|
34,736 |
|
— |
% |
Residential real estate |
|
2,562,808 |
|
|
2,544,462 |
|
|
2,510,705 |
|
|
|
18,346 |
|
1 |
% |
|
|
52,103 |
|
2 |
% |
Consumer home equity |
|
1,254,105 |
|
|
1,217,141 |
|
|
1,198,290 |
|
|
|
36,964 |
|
3 |
% |
|
|
55,815 |
|
5 |
% |
Other consumer |
|
248,690 |
|
|
234,398 |
|
|
207,702 |
|
|
|
14,292 |
|
6 |
% |
|
|
40,988 |
|
20 |
% |
Total loans |
|
14,145,520 |
|
|
14,088,747 |
|
|
13,961,878 |
|
|
|
56,773 |
|
— |
% |
|
|
183,642 |
|
1 |
% |
Allowance for loan losses |
|
(156,146 |
) |
|
(149,190 |
) |
|
(147,955 |
) |
|
|
(6,956 |
) |
5 |
% |
|
|
(8,191 |
) |
6 |
% |
Unamortized prem./disc. and def. fees |
|
(35,601 |
) |
|
(32,947 |
) |
|
(15,202 |
) |
|
|
(2,654 |
) |
8 |
% |
|
|
(20,399 |
) |
134 |
% |
Net loans |
|
13,953,773 |
|
|
13,906,610 |
|
|
13,798,721 |
|
|
|
47,163 |
|
— |
% |
|
|
155,052 |
|
1 |
% |
Federal Home Loan Bank stock, at cost |
|
5,879 |
|
|
5,879 |
|
|
26,894 |
|
|
|
— |
|
— |
% |
|
|
(21,015 |
) |
(78 |
)% |
Premises and equipment |
|
60,910 |
|
|
59,790 |
|
|
59,421 |
|
|
|
1,120 |
|
2 |
% |
|
|
1,489 |
|
3 |
% |
Bank-owned life insurance |
|
166,710 |
|
|
165,734 |
|
|
162,718 |
|
|
|
976 |
|
1 |
% |
|
|
3,992 |
|
2 |
% |
Goodwill and other intangibles, net |
|
565,196 |
|
|
565,701 |
|
|
567,213 |
|
|
|
(505 |
) |
— |
% |
|
|
(2,017 |
) |
— |
% |
Deferred income taxes, net |
|
276,064 |
|
|
272,344 |
|
|
352,060 |
|
|
|
3,720 |
|
1 |
% |
|
|
(75,996 |
) |
(22 |
)% |
Prepaid expenses |
|
183,245 |
|
|
187,211 |
|
|
157,675 |
|
|
|
(3,966 |
) |
(2 |
)% |
|
|
25,570 |
|
16 |
% |
Other assets |
|
545,682 |
|
|
538,895 |
|
|
476,074 |
|
|
|
6,787 |
|
1 |
% |
|
|
69,608 |
|
15 |
% |
Assets of discontinued operations |
|
— |
|
|
— |
|
|
121,026 |
|
|
|
— |
|
— |
% |
|
|
(121,026 |
) |
(100 |
)% |
Total assets |
$ |
21,044,169 |
|
$ |
21,174,804 |
|
$ |
21,583,493 |
|
|
$ |
(130,635 |
) |
(1 |
)% |
|
$ |
(539,324 |
) |
(2 |
)% |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||||
Demand |
$ |
4,808,938 |
|
$ |
4,952,487 |
|
$ |
5,346,693 |
|
|
$ |
(143,549 |
) |
(3 |
)% |
|
$ |
(537,755 |
) |
(10 |
)% |
Interest checking accounts |
|
3,532,811 |
|
|
3,739,631 |
|
|
4,173,079 |
|
|
|
(206,820 |
) |
(6 |
)% |
|
|
(640,268 |
) |
(15 |
)% |
Savings accounts |
|
1,238,009 |
|
|
1,291,260 |
|
|
1,495,540 |
|
|
|
(53,251 |
) |
(4 |
)% |
|
|
(257,531 |
) |
(17 |
)% |
Money market investment |
|
5,014,900 |
|
|
4,770,058 |
|
|
4,814,412 |
|
|
|
244,842 |
|
5 |
% |
|
|
200,488 |
|
4 |
% |
Certificates of deposit |
|
2,943,151 |
|
|
2,913,297 |
|
|
2,351,248 |
|
|
|
29,854 |
|
1 |
% |
|
|
591,903 |
|
25 |
% |
Total deposits |
|
17,537,809 |
|
|
17,666,733 |
|
|
18,180,972 |
|
|
|
(128,924 |
) |
(1 |
)% |
|
|
(643,163 |
) |
(4 |
)% |
Borrowed funds: |
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Home Loan Bank advances |
|
17,415 |
|
|
17,576 |
|
|
314,021 |
|
|
|
(161 |
) |
(1 |
)% |
|
|
(296,606 |
) |
(94 |
)% |
Escrow deposits of borrowers |
|
20,155 |
|
|
24,368 |
|
|
22,980 |
|
|
|
(4,213 |
) |
(17 |
)% |
|
|
(2,825 |
) |
(12 |
)% |
Interest rate swap collateral funds |
|
11,370 |
|
|
10,810 |
|
|
14,210 |
|
|
|
560 |
|
5 |
% |
|
|
(2,840 |
) |
(20 |
)% |
Total borrowed funds |
|
48,940 |
|
|
52,754 |
|
|
351,211 |
|
|
|
(3,814 |
) |
(7 |
)% |
|
|
(302,271 |
) |
(86 |
)% |
Other liabilities |
|
489,947 |
|
|
502,486 |
|
|
488,007 |
|
|
|
(12,539 |
) |
(2 |
)% |
|
|
1,940 |
|
— |
% |
Liabilities of discontinued operations |
|
— |
|
|
— |
|
|
36,531 |
|
|
|
— |
|
— |
% |
|
|
(36,531 |
) |
(100 |
)% |
Total liabilities |
|
18,076,696 |
|
|
18,221,973 |
|
|
19,056,721 |
|
|
|
(145,277 |
) |
(1 |
)% |
|
|
(980,025 |
) |
(5 |
)% |
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
||||||||||||
Common shares |
|
1,770 |
|
|
1,769 |
|
|
1,766 |
|
|
|
1 |
|
— |
% |
|
|
4 |
|
— |
% |
Additional paid-in capital |
|
1,673,722 |
|
|
1,669,133 |
|
|
1,656,750 |
|
|
|
4,589 |
|
— |
% |
|
|
16,972 |
|
1 |
% |
Unallocated common shares held by the employee stock ownership plan ("ESOP") |
|
(130,295 |
) |
|
(131,512 |
) |
|
(135,232 |
) |
|
|
1,217 |
|
(1 |
)% |
|
|
4,937 |
|
(4 |
)% |
Retained earnings |
|
2,076,566 |
|
|
2,068,315 |
|
|
1,704,470 |
|
|
|
8,251 |
|
— |
% |
|
|
372,096 |
|
22 |
% |
Accumulated other comprehensive income ("AOCI"), net of tax |
|
(654,290 |
) |
|
(654,874 |
) |
|
(700,982 |
) |
|
|
584 |
|
— |
% |
|
|
46,692 |
|
(7 |
)% |
Total shareholders' equity |
|
2,967,473 |
|
|
2,952,831 |
|
|
2,526,772 |
|
|
|
14,642 |
|
— |
% |
|
|
440,701 |
|
17 |
% |
Total liabilities and shareholders' equity |
$ |
21,044,169 |
|
$ |
21,174,804 |
|
$ |
21,583,493 |
|
|
$ |
(130,635 |
) |
(1 |
)% |
|
$ |
(539,324 |
) |
(2 |
)% |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||||
|
Three months ended |
|
Three months ended Jun 30, 2024 change from three months ended |
||||||||||||||||||
(Unaudited, dollars in thousands, except per-share data) |
Jun 30, 2024 |
Mar 31, 2024 |
Jun 30, 2023 |
|
Mar 31, 2024 |
|
Jun 30, 2023 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and dividend income: |
|
|
|
|
△ $ |
△ % |
|
△ $ |
△ % |
||||||||||||
Interest and fees on loans |
$ |
172,514 |
|
$ |
169,981 |
|
$ |
160,862 |
|
|
$ |
2,533 |
|
1 |
% |
|
$ |
11,652 |
|
7 |
% |
Taxable interest and dividends on securities |
|
22,724 |
|
|
23,373 |
|
|
24,618 |
|
|
|
(649 |
) |
(3 |
)% |
|
|
(1,894 |
) |
(8 |
)% |
Non-taxable interest and dividends on securities |
|
1,439 |
|
|
1,437 |
|
|
1,434 |
|
|
|
2 |
|
— |
% |
|
|
5 |
|
— |
% |
Interest on federal funds sold and other short-term investments |
|
10,699 |
|
|
7,820 |
|
|
14,851 |
|
|
|
2,879 |
|
37 |
% |
|
|
(4,152 |
) |
(28 |
)% |
Total interest and dividend income |
|
207,376 |
|
|
202,611 |
|
|
201,765 |
|
|
|
4,765 |
|
2 |
% |
|
|
5,611 |
|
3 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest on deposits |
|
78,473 |
|
|
72,458 |
|
|
56,146 |
|
|
|
6,015 |
|
8 |
% |
|
|
22,327 |
|
40 |
% |
Interest on borrowings |
|
254 |
|
|
253 |
|
|
4,031 |
|
|
|
1 |
|
— |
% |
|
|
(3,777 |
) |
(94 |
)% |
Total interest expense |
|
78,727 |
|
|
72,711 |
|
|
60,177 |
|
|
|
6,016 |
|
8 |
% |
|
|
18,550 |
|
31 |
% |
Net interest income |
|
128,649 |
|
|
129,900 |
|
|
141,588 |
|
|
|
(1,251 |
) |
(1 |
)% |
|
|
(12,939 |
) |
(9 |
)% |
Provision for allowance for loan losses |
|
6,126 |
|
|
7,451 |
|
|
7,501 |
|
|
|
(1,325 |
) |
(18 |
)% |
|
|
(1,375 |
) |
(18 |
)% |
Net interest income after provision for allowance for loan losses |
|
122,523 |
|
|
122,449 |
|
|
134,087 |
|
|
|
74 |
|
— |
% |
|
|
(11,564 |
) |
(9 |
)% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts |
|
7,930 |
|
|
7,508 |
|
|
7,242 |
|
|
|
422 |
|
6 |
% |
|
|
688 |
|
10 |
% |
Trust and investment advisory fees |
|
6,711 |
|
|
6,544 |
|
|
6,131 |
|
|
|
167 |
|
3 |
% |
|
|
580 |
|
9 |
% |
Debit card processing fees |
|
3,522 |
|
|
3,247 |
|
|
3,513 |
|
|
|
275 |
|
8 |
% |
|
|
9 |
|
— |
% |
Interest rate swap income |
|
418 |
|
|
667 |
|
|
825 |
|
|
|
(249 |
) |
(37 |
)% |
|
|
(407 |
) |
(49 |
)% |
Income from investments held in rabbi trusts |
|
1,761 |
|
|
4,318 |
|
|
3,002 |
|
|
|
(2,557 |
) |
(59 |
)% |
|
|
(1,241 |
) |
(41 |
)% |
Losses on sales of mortgage loans held for sale, net |
|
(152 |
) |
|
(58 |
) |
|
(50 |
) |
|
|
(94 |
) |
162 |
% |
|
|
(102 |
) |
204 |
% |
Losses on sales of securities available for sale, net |
|
(7,557 |
) |
|
— |
|
|
— |
|
|
|
(7,557 |
) |
— |
% |
|
|
(7,557 |
) |
— |
% |
Other |
|
12,715 |
|
|
5,466 |
|
|
5,541 |
|
|
|
7,249 |
|
133 |
% |
|
|
7,174 |
|
129 |
% |
Total noninterest income |
|
25,348 |
|
|
27,692 |
|
|
26,204 |
|
|
|
(2,344 |
) |
(8 |
)% |
|
|
(856 |
) |
(3 |
)% |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries and employee benefits |
|
65,218 |
|
|
64,471 |
|
|
62,183 |
|
|
|
747 |
|
1 |
% |
|
|
3,035 |
|
5 |
% |
Office occupancy and equipment |
|
10,109 |
|
|
9,184 |
|
|
9,067 |
|
|
|
925 |
|
10 |
% |
|
|
1,042 |
|
11 |
% |
Data processing |
|
17,990 |
|
|
16,509 |
|
|
12,814 |
|
|
|
1,481 |
|
9 |
% |
|
|
5,176 |
|
40 |
% |
Professional services |
|
4,250 |
|
|
3,512 |
|
|
3,025 |
|
|
|
738 |
|
21 |
% |
|
|
1,225 |
|
40 |
% |
Marketing expenses |
|
1,910 |
|
|
1,515 |
|
|
2,111 |
|
|
|
395 |
|
26 |
% |
|
|
(201 |
) |
(10 |
)% |
Federal Deposit Insurance Corporation ("FDIC") insurance |
|
4,508 |
|
|
2,285 |
|
|
3,034 |
|
|
|
2,223 |
|
97 |
% |
|
|
1,474 |
|
49 |
% |
Amortization of intangible assets |
|
504 |
|
|
504 |
|
|
504 |
|
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
Other |
|
5,380 |
|
|
3,222 |
|
|
7,196 |
|
|
|
2,158 |
|
67 |
% |
|
|
(1,816 |
) |
(25 |
)% |
Total noninterest expense |
|
109,869 |
|
|
101,202 |
|
|
99,934 |
|
|
|
8,667 |
|
9 |
% |
|
|
9,935 |
|
10 |
% |
Income before income tax expense |
|
38,002 |
|
|
48,939 |
|
|
60,357 |
|
|
|
(10,937 |
) |
(22 |
)% |
|
|
(22,355 |
) |
(37 |
)% |
Income tax expense |
|
11,671 |
|
|
10,292 |
|
|
15,938 |
|
|
|
1,379 |
|
13 |
% |
|
|
(4,267 |
) |
(27 |
)% |
Net income from continuing operations |
$ |
26,331 |
|
$ |
38,647 |
|
$ |
44,419 |
|
|
$ |
(12,316 |
) |
(32 |
)% |
|
$ |
(18,088 |
) |
(41 |
)% |
Net income from discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
4,238 |
|
|
$ |
— |
|
— |
% |
|
$ |
(4,238 |
) |
(100 |
)% |
Net income |
$ |
26,331 |
|
$ |
38,647 |
|
$ |
48,657 |
|
|
$ |
(12,316 |
) |
(32 |
)% |
|
$ |
(22,326 |
) |
(46 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Share data: |
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding, basic |
|
163,145,255 |
|
|
162,863,540 |
|
|
162,232,236 |
|
|
|
281,715 |
|
0 |
% |
|
|
913,019 |
|
1 |
% |
Weighted average common shares outstanding, diluted |
|
163,499,296 |
|
|
163,188,410 |
|
|
162,246,675 |
|
|
|
310,886 |
|
0 |
% |
|
|
1,252,621 |
|
1 |
% |
Earnings per share, basic: |
|
|
|
|
|
|
|
|
|
||||||||||||
Continuing operations |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.27 |
|
|
$ |
(0.08 |
) |
(33 |
)% |
|
$ |
(0.11 |
) |
(41 |
)% |
Discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
0.03 |
|
|
$ |
— |
|
0 |
% |
|
$ |
(0.03 |
) |
(100 |
)% |
Earnings per share, basic |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.30 |
|
|
$ |
(0.08 |
) |
(33 |
)% |
|
$ |
(0.14 |
) |
(47 |
)% |
Earnings per share, diluted: |
|
|
|
|
|
|
|
|
|
||||||||||||
Continuing operations |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.27 |
|
|
$ |
(0.08 |
) |
(33 |
)% |
|
$ |
(0.11 |
) |
(41 |
)% |
Discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
0.03 |
|
|
$ |
— |
|
0 |
% |
|
$ |
(0.03 |
) |
(100 |
)% |
Earnings per share, diluted |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.30 |
|
|
$ |
(0.08 |
) |
(33 |
)% |
|
$ |
(0.14 |
) |
(47 |
)% |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
|
Six months ended |
|
|
|
||||||||
(Unaudited, dollars in thousands, except per-share data) |
Jun 30, 2024 |
Jun 30, 2023 |
|
Change |
||||||||
|
|
|
|
|
|
|||||||
Interest and dividend income: |
|
|
|
△ $ |
△ % |
|||||||
Interest and fees on loans |
$ |
342,495 |
|
$ |
314,402 |
|
|
$ |
28,093 |
|
9 |
% |
Taxable interest and dividends on securities |
|
46,097 |
|
|
53,260 |
|
|
|
(7,163 |
) |
(13 |
)% |
Non-taxable interest and dividends on securities |
|
2,876 |
|
|
2,868 |
|
|
|
8 |
|
— |
% |
Interest on federal funds sold and other short-term investments |
|
18,519 |
|
|
20,115 |
|
|
|
(1,596 |
) |
(8 |
)% |
Total interest and dividend income |
|
409,987 |
|
|
390,645 |
|
|
|
19,342 |
|
5 |
% |
Interest expense: |
|
|
|
|
|
|||||||
Interest on deposits |
|
150,931 |
|
|
99,079 |
|
|
|
51,852 |
|
52 |
% |
Interest on borrowings |
|
507 |
|
|
11,669 |
|
|
|
(11,162 |
) |
(96 |
)% |
Total interest expense |
|
151,438 |
|
|
110,748 |
|
|
|
40,690 |
|
37 |
% |
Net interest income |
|
258,549 |
|
|
279,897 |
|
|
|
(21,348 |
) |
(8 |
)% |
Provision for allowance for loan losses |
|
13,577 |
|
|
7,526 |
|
|
|
6,051 |
|
80 |
% |
Net interest income after provision for allowance for loan losses |
|
244,972 |
|
|
272,371 |
|
|
|
(27,399 |
) |
(10 |
)% |
Noninterest income: |
|
|
|
|
|
|||||||
Service charges on deposit accounts |
|
15,438 |
|
|
13,714 |
|
|
|
1,724 |
|
13 |
% |
Trust and investment advisory fees |
|
13,255 |
|
|
11,901 |
|
|
|
1,354 |
|
11 |
% |
Debit card processing fees |
|
6,769 |
|
|
6,683 |
|
|
|
86 |
|
1 |
% |
Interest rate swap income |
|
1,085 |
|
|
417 |
|
|
|
668 |
|
160 |
% |
Income from investments held in rabbi trusts |
|
6,079 |
|
|
5,859 |
|
|
|
220 |
|
4 |
% |
Losses on sales of mortgage loans held for sale, net |
|
(210 |
) |
|
(124 |
) |
|
|
(86 |
) |
69 |
% |
Losses on sales of securities available for sale, net |
|
(7,557 |
) |
|
(333,170 |
) |
|
|
325,613 |
|
(98 |
)% |
Other |
|
18,181 |
|
|
11,071 |
|
|
|
7,110 |
|
64 |
% |
Total noninterest income (loss) |
|
53,040 |
|
|
(283,649 |
) |
|
|
336,689 |
|
(119 |
)% |
Noninterest expense: |
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
129,689 |
|
|
124,366 |
|
|
|
5,323 |
|
4 |
% |
Office occupancy and equipment |
|
19,293 |
|
|
18,156 |
|
|
|
1,137 |
|
6 |
% |
Data processing |
|
34,499 |
|
|
25,112 |
|
|
|
9,387 |
|
37 |
% |
Professional services |
|
7,762 |
|
|
6,152 |
|
|
|
1,610 |
|
26 |
% |
Marketing expenses |
|
3,425 |
|
|
3,134 |
|
|
|
291 |
|
9 |
% |
Federal Deposit Insurance Corporation ("FDIC") insurance |
|
6,793 |
|
|
5,580 |
|
|
|
1,213 |
|
22 |
% |
Amortization of intangible assets |
|
1,008 |
|
|
795 |
|
|
|
213 |
|
27 |
% |
Other |
|
8,602 |
|
|
12,530 |
|
|
|
(3,928 |
) |
(31 |
)% |
Total noninterest expense |
|
211,071 |
|
|
195,825 |
|
|
|
15,246 |
|
8 |
% |
Income (loss) before income tax expense |
|
86,941 |
|
|
(207,103 |
) |
|
|
294,044 |
|
(142 |
)% |
Income tax expense (benefit) |
|
21,963 |
|
|
(49,441 |
) |
|
|
71,404 |
|
(144 |
)% |
Net income (loss) from continuing operations |
|
64,978 |
|
|
(157,662 |
) |
|
|
222,640 |
|
(141 |
)% |
Net income from discontinued operations |
|
— |
|
|
12,223 |
|
|
|
(12,223 |
) |
(100 |
)% |
Net income (loss) |
$ |
64,978 |
|
$ |
(145,439 |
) |
|
$ |
210,417 |
|
(145 |
)% |
|
|
|
|
|
|
|||||||
Share data: |
|
|
|
|
|
|||||||
Weighted average common shares outstanding, basic |
|
163,004,093 |
|
|
162,112,223 |
|
|
|
891,870 |
|
1 |
% |
Weighted average common shares outstanding, diluted |
|
163,390,421 |
|
|
162,136,984 |
|
|
|
1,253,437 |
|
1 |
% |
|
|
|
|
|
|
|||||||
Earnings (loss) per share, basic: |
|
|
|
|
|
|||||||
Continuing operations |
$ |
0.40 |
|
$ |
(0.98 |
) |
|
$ |
1.38 |
|
(141 |
)% |
Discontinued operations |
$ |
— |
|
$ |
0.08 |
|
|
$ |
(0.08 |
) |
(100 |
)% |
Earnings (loss) per share, basic |
$ |
0.40 |
|
$ |
(0.90 |
) |
|
$ |
1.30 |
|
(144 |
)% |
Earnings (loss) per share, diluted: |
|
|
|
|
|
|||||||
Continuing operations |
$ |
0.40 |
|
$ |
(0.98 |
) |
|
$ |
1.38 |
|
(141 |
)% |
Discontinued operations |
$ |
— |
|
$ |
0.08 |
|
|
$ |
(0.08 |
) |
(100 |
)% |
Earnings (loss) per share, diluted |
$ |
0.40 |
|
$ |
(0.90 |
) |
|
$ |
1.30 |
|
(144 |
)% |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS |
||||||||||||||||||||||||||
|
As of and for the three months ended |
|||||||||||||||||||||||||
|
Jun 30, 2024 |
|
Mar 31, 2024 |
|
Jun 30, 2023 |
|||||||||||||||||||||
(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 |
$ |
10,103,674 |
|
$ |
128,402 |
|
5.11 |
% |
|
$ |
10,024,299 |
|
$ |
126,842 |
|
5.09 |
% |
|
$ |
9,920,608 |
|
$ |
121,319 |
|
4.91 |
% |
Residential |
|
2,563,646 |
|
|
24,313 |
|
3.81 |
% |
|
|
2,570,803 |
|
|
23,994 |
|
3.75 |
% |
|
|
2,513,941 |
|
|
21,992 |
|
3.51 |
% |
Consumer |
|
1,446,543 |
|
|
23,960 |
|
6.66 |
% |
|
|
1,420,091 |
|
|
23,237 |
|
6.58 |
% |
|
|
1,370,011 |
|
|
21,045 |
|
6.16 |
% |
Total loans |
|
14,113,863 |
|
|
176,675 |
|
5.03 |
% |
|
|
14,015,193 |
|
|
174,073 |
|
5.00 |
% |
|
|
13,804,560 |
|
|
164,356 |
|
4.78 |
% |
Total investment securities |
|
5,428,583 |
|
|
24,555 |
|
1.82 |
% |
|
|
5,574,568 |
|
|
25,201 |
|
1.82 |
% |
|
|
5,885,545 |
|
|
26,435 |
|
1.80 |
% |
Federal funds sold and other short-term investments |
|
787,387 |
|
|
10,699 |
|
5.47 |
% |
|
|
576,537 |
|
|
7,820 |
|
5.46 |
% |
|
|
1,174,964 |
|
|
14,851 |
|
5.07 |
% |
Total interest-earning assets |
|
20,329,833 |
|
|
211,929 |
|
4.19 |
% |
|
|
20,166,298 |
|
|
207,094 |
|
4.13 |
% |
|
|
20,865,069 |
|
|
205,642 |
|
3.95 |
% |
Non-interest-earning assets |
|
912,302 |
|
|
|
|
|
|
950,893 |
|
|
|
|
|
|
1,084,413 |
|
|
|
|
||||||
Total assets |
$ |
21,242,135 |
|
|
|
|
|
$ |
21,117,191 |
|
|
|
|
|
$ |
21,949,482 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings |
$ |
1,259,573 |
|
$ |
42 |
|
0.01 |
% |
|
$ |
1,297,360 |
|
$ |
41 |
|
0.01 |
% |
|
$ |
1,552,702 |
|
$ |
47 |
|
0.01 |
% |
Interest checking |
|
3,739,590 |
|
|
8,827 |
|
0.95 |
% |
|
|
3,744,912 |
|
|
8,187 |
|
0.88 |
% |
|
|
4,270,945 |
|
|
6,141 |
|
0.58 |
% |
Money market |
|
4,975,843 |
|
|
34,022 |
|
2.75 |
% |
|
|
4,741,990 |
|
|
30,495 |
|
2.59 |
% |
|
|
5,064,469 |
|
|
26,611 |
|
2.11 |
% |
Time deposits |
|
2,933,160 |
|
|
35,582 |
|
4.88 |
% |
|
|
2,785,130 |
|
|
33,735 |
|
4.87 |
% |
|
|
2,275,844 |
|
|
23,347 |
|
4.11 |
% |
Total interest-bearing deposits |
|
12,908,166 |
|
|
78,473 |
|
2.45 |
% |
|
|
12,569,392 |
|
|
72,458 |
|
2.32 |
% |
|
|
13,163,960 |
|
|
56,146 |
|
1.71 |
% |
Borrowings |
|
49,536 |
|
|
254 |
|
2.06 |
% |
|
|
50,781 |
|
|
253 |
|
2.00 |
% |
|
|
348,597 |
|
|
4,031 |
|
4.64 |
% |
Total interest-bearing liabilities |
|
12,957,702 |
|
|
78,727 |
|
2.44 |
% |
|
|
12,620,173 |
|
|
72,711 |
|
2.32 |
% |
|
|
13,512,557 |
|
|
60,177 |
|
1.79 |
% |
Demand deposit accounts |
|
4,843,336 |
|
|
|
|
|
|
4,989,245 |
|
|
|
|
|
|
5,332,045 |
|
|
|
|
||||||
Other noninterest-bearing liabilities |
|
512,996 |
|
|
|
|
|
|
537,014 |
|
|
|
|
|
|
505,555 |
|
|
|
|
||||||
Total liabilities |
|
18,314,034 |
|
|
|
|
|
|
18,146,432 |
|
|
|
|
|
|
19,350,157 |
|
|
|
|
||||||
Shareholders' equity |
|
2,928,101 |
|
|
|
|
|
|
2,970,759 |
|
|
|
|
|
|
2,599,325 |
|
|
|
|
||||||
Total liabilities and shareholders' equity |
$ |
21,242,135 |
|
|
|
|
|
$ |
21,117,191 |
|
|
|
|
|
$ |
21,949,482 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income - FTE |
|
|
$ |
133,202 |
|
|
|
|
|
$ |
134,383 |
|
|
|
|
|
$ |
145,465 |
|
|
||||||
Net interest rate spread (2) |
|
|
|
|
1.75 |
% |
|
|
|
|
|
1.81 |
% |
|
|
|
|
|
2.16 |
% |
||||||
Net interest-earning assets (3) |
$ |
7,372,131 |
|
|
|
|
|
$ |
7,546,125 |
|
|
|
|
|
$ |
7,352,512 |
|
|
|
|
||||||
Net interest margin - FTE (4) |
|
|
|
|
2.64 |
% |
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
2.80 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(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, 2024 |
|
Jun 30, 2023 |
||||||||||||||
(Unaudited, dollars in thousands) |
Avg. Balance |
|
Interest |
|
Yield / Cost |
|
Avg. Balance |
|
Interest |
|
Yield / Cost |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial |
$ |
10,063,985 |
|
$ |
255,243 |
|
5.10 |
% |
|
$ |
9,843,351 |
|
$ |
237,248 |
|
4.86 |
% |
Residential |
|
2,567,225 |
|
|
48,307 |
|
3.78 |
% |
|
|
2,513,679 |
|
|
43,605 |
|
3.50 |
% |
Consumer |
|
1,433,317 |
|
|
47,198 |
|
6.62 |
% |
|
|
1,364,345 |
|
|
41,105 |
|
6.08 |
% |
Total loans |
|
14,064,527 |
|
|
350,748 |
|
5.02 |
% |
|
|
13,721,375 |
|
|
321,958 |
|
4.73 |
% |
Total investment securities |
|
5,501,575 |
|
|
49,756 |
|
1.82 |
% |
|
|
6,780,135 |
|
|
56,894 |
|
1.69 |
% |
Federal funds sold and other short-term investments |
|
681,963 |
|
|
18,519 |
|
5.46 |
% |
|
|
814,257 |
|
|
20,115 |
|
4.98 |
% |
Total interest-earning assets |
|
20,248,065 |
|
|
419,023 |
|
4.16 |
% |
|
|
21,315,767 |
|
|
398,967 |
|
3.77 |
% |
Non-interest-earning assets |
|
931,849 |
|
|
|
|
|
|
912,120 |
|
|
|
|
||||
Total assets |
$ |
21,179,914 |
|
|
|
|
|
$ |
22,227,887 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings |
$ |
1,278,466 |
|
$ |
83 |
|
0.01 |
% |
|
$ |
1,636,457 |
|
$ |
129 |
|
0.02 |
% |
Interest checking |
|
3,742,251 |
|
|
17,014 |
|
0.91 |
% |
|
|
4,316,981 |
|
|
10,853 |
|
0.51 |
% |
Money market |
|
4,858,917 |
|
|
64,517 |
|
2.67 |
% |
|
|
5,052,467 |
|
|
46,916 |
|
1.87 |
% |
Time deposits |
|
2,859,145 |
|
|
69,317 |
|
4.88 |
% |
|
|
2,104,802 |
|
|
41,181 |
|
3.95 |
% |
Total interest-bearing deposits |
|
12,738,779 |
|
|
150,931 |
|
2.38 |
% |
|
|
13,110,707 |
|
|
99,079 |
|
1.52 |
% |
Borrowings |
|
50,159 |
|
|
507 |
|
2.03 |
% |
|
|
510,925 |
|
|
11,669 |
|
4.61 |
% |
Total interest-bearing liabilities |
|
12,788,938 |
|
|
151,438 |
|
2.38 |
% |
|
|
13,621,632 |
|
|
110,748 |
|
1.64 |
% |
Demand deposit accounts |
|
4,916,290 |
|
|
|
|
|
|
5,577,294 |
|
|
|
|
||||
Other noninterest-bearing liabilities |
|
525,256 |
|
|
|
|
|
|
498,829 |
|
|
|
|
||||
Total liabilities |
|
18,230,484 |
|
|
|
|
|
|
19,697,755 |
|
|
|
|
||||
Shareholders' equity |
|
2,949,430 |
|
|
|
|
|
|
2,530,132 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
21,179,914 |
|
|
|
|
|
$ |
22,227,887 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income - FTE |
|
|
$ |
267,585 |
|
|
|
|
|
$ |
288,219 |
|
|
||||
Net interest rate spread (2) |
|
|
|
|
1.78 |
% |
|
|
|
|
|
2.13 |
% |
||||
Net interest-earning assets (3) |
$ |
7,459,127 |
|
|
|
|
|
$ |
7,694,135 |
|
|
|
|
||||
Net interest margin - FTE (4) |
|
|
|
|
2.66 |
% |
|
|
|
|
|
2.73 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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. |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES ASSET QUALITY - NON-PERFORMING ASSETS (1) |
|||||||||||||||
|
As of |
||||||||||||||
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
||||||||||
Non-accrual loans: |
|
|
|
|
|
||||||||||
Commercial |
$ |
26,139 |
|
$ |
40,986 |
|
$ |
35,107 |
|
$ |
31,703 |
|
$ |
14,178 |
|
Residential |
|
6,789 |
|
|
6,697 |
|
|
8,725 |
|
|
8,075 |
|
|
8,796 |
|
Consumer |
|
6,843 |
|
|
9,490 |
|
|
8,725 |
|
|
7,687 |
|
|
7,584 |
|
Total non-accrual loans |
|
39,771 |
|
|
57,173 |
|
|
52,557 |
|
|
47,465 |
|
|
30,558 |
|
Total accruing loans past due 90 days or more: |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-performing loans |
|
39,771 |
|
|
57,173 |
|
|
52,557 |
|
|
47,465 |
|
|
30,558 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other non-performing assets: |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-performing assets (1) |
$ |
39,771 |
|
$ |
57,173 |
|
$ |
52,557 |
|
$ |
47,465 |
|
$ |
30,558 |
|
Total non-performing loans to total loans |
|
0.28 |
% |
|
0.41 |
% |
|
0.38 |
% |
|
0.34 |
% |
|
0.22 |
% |
Total non-performing assets to total assets |
|
0.19 |
% |
|
0.27 |
% |
|
0.25 |
% |
|
0.22 |
% |
|
0.14 |
% |
|
|
|
|
|
|
||||||||||
(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. |
EASTERN BANKSHARES, INC. AND SUBSIDIARIES ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES) |
|||||||||||||||
|
Three months ended |
||||||||||||||
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
||||||||||
Average total loans |
$ |
14,113,343 |
|
$ |
14,013,714 |
|
$ |
13,961,061 |
|
$ |
13,926,194 |
|
$ |
13,803,292 |
|
Allowance for loan losses, beginning of the period |
|
149,190 |
|
|
148,993 |
|
|
155,146 |
|
|
147,955 |
|
|
140,938 |
|
Charged-off loans: |
|
|
|
|
|
||||||||||
Commercial and industrial |
|
— |
|
|
— |
|
|
2 |
|
|
11 |
|
|
— |
|
Commercial real estate |
|
— |
|
|
7,250 |
|
|
8,008 |
|
|
— |
|
|
— |
|
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Business banking |
|
1,002 |
|
|
102 |
|
|
3,745 |
|
|
303 |
|
|
254 |
|
Residential real estate |
|
— |
|
|
10 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer home equity |
|
32 |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer |
|
658 |
|
|
651 |
|
|
536 |
|
|
731 |
|
|
591 |
|
Total charged-off loans |
|
1,692 |
|
|
8,015 |
|
|
12,291 |
|
|
1,045 |
|
|
845 |
|
Recoveries on loans previously charged-off: |
|
|
|
|
|
||||||||||
Commercial and industrial |
|
56 |
|
|
25 |
|
|
11 |
|
|
120 |
|
|
26 |
|
Commercial real estate |
|
2,011 |
|
|
132 |
|
|
190 |
|
|
2 |
|
|
2 |
|
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Business banking |
|
199 |
|
|
410 |
|
|
573 |
|
|
609 |
|
|
204 |
|
Residential real estate |
|
27 |
|
|
31 |
|
|
34 |
|
|
30 |
|
|
18 |
|
Consumer home equity |
|
91 |
|
|
— |
|
|
1 |
|
|
39 |
|
|
— |
|
Other consumer |
|
138 |
|
|
163 |
|
|
131 |
|
|
108 |
|
|
111 |
|
Total recoveries |
|
2,522 |
|
|
761 |
|
|
940 |
|
|
908 |
|
|
361 |
|
Net loans charged-off (recovered): |
|
|
|
|
|
||||||||||
Commercial and industrial |
|
(56 |
) |
|
(25 |
) |
|
(9 |
) |
|
(109 |
) |
|
(26 |
) |
Commercial real estate |
|
(2,011 |
) |
|
7,118 |
|
|
7,818 |
|
|
(2 |
) |
|
(2 |
) |
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Business banking |
|
803 |
|
|
(308 |
) |
|
3,172 |
|
|
(306 |
) |
|
50 |
|
Residential real estate |
|
(27 |
) |
|
(21 |
) |
|
(34 |
) |
|
(30 |
) |
|
(18 |
) |
Consumer home equity |
|
(59 |
) |
|
2 |
|
|
(1 |
) |
|
(39 |
) |
|
— |
|
Other consumer |
|
520 |
|
|
488 |
|
|
405 |
|
|
623 |
|
|
480 |
|
Total net loans (recovered) charged-off |
|
(830 |
) |
|
7,254 |
|
|
11,351 |
|
|
137 |
|
|
484 |
|
Provision for allowance for loan losses |
|
6,126 |
|
|
7,451 |
|
|
5,198 |
|
|
7,328 |
|
|
7,501 |
|
Total allowance for loan losses, end of period |
$ |
156,146 |
|
$ |
149,190 |
|
$ |
148,993 |
|
$ |
155,146 |
|
$ |
147,955 |
|
Net (recoveries) charge-offs to average total loans outstanding during this period (1) |
|
(0.02 |
)% |
|
0.21 |
% |
|
0.32 |
% |
|
0.00 |
% |
|
0.01 |
% |
Allowance for loan losses as a percent of total loans |
|
1.11 |
% |
|
1.06 |
% |
|
1.07 |
% |
|
1.12 |
% |
|
1.06 |
% |
Allowance for loan losses as a percent of nonperforming loans |
|
392.61 |
% |
|
260.94 |
% |
|
283.49 |
% |
|
326.86 |
% |
|
484.18 |
% |
|
|
|
|
|
|
||||||||||
(1) Presented on an annualized basis. |
APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics (1)
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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
|
|
|
|
|
|
||||||||||
Net income from continuing operations (GAAP) |
$ |
26,331 |
|
$ |
38,647 |
|
$ |
31,509 |
|
$ |
63,464 |
|
$ |
44,419 |
|
Add: |
|
|
|
|
|
||||||||||
Noninterest income components: |
|
|
|
|
|
||||||||||
(Income) losses from investments held in rabbi trusts |
|
(1,761 |
) |
|
(4,318 |
) |
|
(4,969 |
) |
|
1,523 |
|
|
(3,002 |
) |
Losses on sales of securities available for sale, net |
|
7,557 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Losses (gains) on sales of other assets |
|
2 |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
Noninterest expense components: |
|
|
|
|
|
||||||||||
Rabbi trust employee benefit expense (income) |
|
930 |
|
|
1,746 |
|
|
1,740 |
|
|
(586 |
) |
|
1,314 |
|
Merger and acquisition expenses |
|
3,684 |
|
|
1,816 |
|
|
1,865 |
|
|
3,630 |
|
|
— |
|
Total impact of non-GAAP adjustments |
|
10,412 |
|
|
(756 |
) |
|
(1,364 |
) |
|
4,565 |
|
|
(1,688 |
) |
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) |
|
224 |
|
|
(190 |
) |
|
13,270 |
|
|
15,944 |
|
|
1,639 |
|
Non-GAAP adjustments, net of tax |
$ |
10,188 |
|
$ |
(566 |
) |
$ |
(14,634 |
) |
$ |
(11,379 |
) |
$ |
(3,327 |
) |
Operating net income (non-GAAP) |
$ |
36,519 |
|
$ |
38,081 |
|
$ |
16,875 |
|
$ |
52,085 |
|
$ |
41,092 |
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding during the period: |
|
|
|
|
|
||||||||||
Basic |
|
163,145,255 |
|
|
162,863,540 |
|
|
162,571,066 |
|
|
162,370,469 |
|
|
162,232,236 |
|
Diluted |
|
163,499,296 |
|
|
163,188,410 |
|
|
162,724,398 |
|
|
162,469,887 |
|
|
162,246,675 |
|
|
|
|
|
|
|
||||||||||
Earnings per share from continuing operations, basic: |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.19 |
|
$ |
0.39 |
|
$ |
0.27 |
|
Earnings per share from continuing operations, diluted: |
$ |
0.16 |
|
$ |
0.24 |
|
$ |
0.19 |
|
$ |
0.39 |
|
$ |
0.27 |
|
|
|
|
|
|
|
||||||||||
Operating earnings per share, basic (non-GAAP) |
$ |
0.22 |
|
$ |
0.23 |
|
$ |
0.10 |
|
$ |
0.32 |
|
$ |
0.25 |
|
Operating earnings per share, diluted (non-GAAP) |
$ |
0.22 |
|
$ |
0.23 |
|
$ |
0.10 |
|
$ |
0.32 |
|
$ |
0.25 |
|
|
|
|
|
|
|
||||||||||
Return on average assets (3) |
|
0.50 |
% |
|
0.74 |
% |
|
0.59 |
% |
|
1.18 |
% |
|
0.81 |
% |
Add: |
|
|
|
|
|
||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.03 |
)% |
|
(0.08 |
)% |
|
(0.09 |
)% |
|
0.03 |
% |
|
(0.05 |
)% |
Losses on sales of securities available for sale, net (3) |
|
0.14 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Losses (gains) on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Rabbi trust employee benefit expense (income) (3) |
|
0.02 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
(0.01 |
)% |
|
0.02 |
% |
Merger and acquisition expenses (3) |
|
0.07 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.07 |
% |
|
0.00 |
% |
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.25 |
% |
|
0.30 |
% |
|
0.03 |
% |
Operating return on average assets (non-GAAP) (3) |
|
0.70 |
% |
|
0.72 |
% |
|
0.31 |
% |
|
0.97 |
% |
|
0.75 |
% |
|
|
|
|
|
|
||||||||||
Return on average shareholders' equity (3) |
|
3.62 |
% |
|
5.23 |
% |
|
4.66 |
% |
|
9.91 |
% |
|
6.85 |
% |
Add: |
|
|
|
|
|
||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.24 |
)% |
|
(0.58 |
)% |
|
(0.73 |
)% |
|
0.24 |
% |
|
(0.46 |
)% |
Losses on sales of securities available for sale, net (3) |
|
1.04 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Losses (gains) on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Rabbi trust employee benefit expense (income) (3) |
|
0.13 |
% |
|
0.24 |
% |
|
0.26 |
% |
|
(0.09 |
)% |
|
0.20 |
% |
Merger and acquisition expenses (3) |
|
0.51 |
% |
|
0.25 |
% |
|
0.28 |
% |
|
0.57 |
% |
|
0.00 |
% |
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3) |
|
0.03 |
% |
|
(0.03 |
)% |
|
1.96 |
% |
|
2.49 |
% |
|
0.25 |
% |
Operating return on average shareholders' equity (non-GAAP) (3) |
|
5.03 |
% |
|
5.17 |
% |
|
2.51 |
% |
|
8.14 |
% |
|
6.34 |
% |
|
|
|
|
|
|
||||||||||
Average tangible shareholders' equity: |
|
|
|
|
|
||||||||||
Average total shareholders' equity (GAAP) |
$ |
2,928,101 |
|
$ |
2,970,759 |
|
$ |
2,682,600 |
|
$ |
2,539,806 |
|
$ |
2,599,325 |
|
Less: Average goodwill and other intangibles |
|
565,523 |
|
|
566,027 |
|
|
597,234 |
|
|
658,591 |
|
|
659,825 |
|
Average tangible shareholders' equity (non-GAAP) |
$ |
2,362,578 |
|
$ |
2,404,732 |
|
$ |
2,085,366 |
|
$ |
1,881,215 |
|
$ |
1,939,500 |
|
|
|
|
|
|
|
||||||||||
Return on average tangible shareholders' equity (non-GAAP) (3) |
|
4.48 |
% |
|
6.46 |
% |
|
5.99 |
% |
|
13.38 |
% |
|
9.19 |
% |
Add: |
|
|
|
|
|
||||||||||
(Income) losses from investments held in rabbi trusts (3) |
|
(0.30 |
)% |
|
(0.72 |
)% |
|
(0.95 |
)% |
|
0.32 |
% |
|
(0.62 |
)% |
Losses on sales of securities available for sale, net (3) |
|
1.29 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Losses (gains) on sales of other assets (3) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Rabbi trust employee benefit expense (income) (3) |
|
0.16 |
% |
|
0.29 |
% |
|
0.33 |
% |
|
(0.12 |
)% |
|
0.27 |
% |
Merger and acquisition expenses (3) |
|
0.63 |
% |
|
0.30 |
% |
|
0.35 |
% |
|
0.77 |
% |
|
0.00 |
% |
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3) |
|
0.04 |
% |
|
(0.03 |
)% |
|
2.52 |
% |
|
3.36 |
% |
|
0.34 |
% |
Operating return on average tangible shareholders' equity (non-GAAP) (3) |
|
6.22 |
% |
|
6.36 |
% |
|
3.20 |
% |
|
10.99 |
% |
|
8.50 |
% |
|
|
|
|
|
|
||||||||||
(1) Average assets, average goodwill and other intangibles, and average tangible shareholders' equity components for the three months ended Dec 31, 2023 and preceding periods presented in this section include discontinued operations. |
|||||||||||||||
(2) The net tax benefit (expense) 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 for the three months ended December 31, 2023 was primarily due to the tax benefit from state tax strategies associated with the utilization of capital losses as a result of the sale of securities in the first quarter of 2023. Upon the sale of securities in the first quarter of 2023, we established a valuation allowance of |
|||||||||||||||
(3) Presented on an annualized basis. |
|||||||||||||||
|
APPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses
For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
|
Three Months Ended |
||||||||||||||
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
(Unaudited, dollars in thousands) |
|
|
|
|
|
||||||||||
Net interest income (GAAP) |
$ |
128,649 |
|
$ |
129,900 |
|
$ |
133,307 |
|
$ |
137,205 |
|
$ |
141,588 |
|
Add: |
|
|
|
|
|
||||||||||
Tax-equivalent adjustment (non-GAAP) (1) |
|
4,553 |
|
|
4,483 |
|
|
4,483 |
|
|
4,376 |
|
|
3,877 |
|
Fully-taxable equivalent net interest income (non-GAAP) |
$ |
133,202 |
|
$ |
134,383 |
|
$ |
137,790 |
|
$ |
141,581 |
|
$ |
145,465 |
|
|
|
|
|
|
|
||||||||||
Noninterest income (GAAP) |
$ |
25,348 |
|
$ |
27,692 |
|
$ |
26,739 |
|
$ |
19,157 |
|
$ |
26,204 |
|
Less: |
|
|
|
|
|
||||||||||
Income (losses) from investments held in rabbi trusts |
|
1,761 |
|
|
4,318 |
|
|
4,969 |
|
|
(1,523 |
) |
|
3,002 |
|
Losses on sales of securities available for sale, net |
|
(7,557 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Gains (losses) on sales of other assets |
|
(2 |
) |
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
Noninterest income on an operating basis (non-GAAP) |
$ |
31,146 |
|
$ |
23,374 |
|
$ |
21,770 |
|
$ |
20,678 |
|
$ |
23,202 |
|
|
|
|
|
|
|
||||||||||
Noninterest expense (GAAP) |
$ |
109,869 |
|
$ |
101,202 |
|
$ |
121,029 |
|
$ |
101,748 |
|
$ |
99,934 |
|
Less: |
|
|
|
|
|
||||||||||
Rabbi trust employee benefit expense (income) |
|
930 |
|
|
1,746 |
|
|
1,740 |
|
|
(586 |
) |
|
1,314 |
|
Merger and acquisition expenses |
|
3,684 |
|
|
1,816 |
|
|
1,865 |
|
|
3,630 |
|
|
— |
|
Noninterest expense on an operating basis (non-GAAP) |
$ |
105,255 |
|
$ |
97,640 |
|
$ |
117,424 |
|
$ |
98,704 |
|
$ |
98,620 |
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
$ |
153,997 |
|
$ |
157,592 |
|
$ |
160,046 |
|
$ |
156,362 |
|
$ |
167,792 |
|
Total operating revenue (non-GAAP) |
$ |
164,348 |
|
$ |
157,757 |
|
$ |
159,560 |
|
$ |
162,259 |
|
$ |
168,667 |
|
|
|
|
|
|
|
||||||||||
Efficiency ratio (GAAP) |
|
71.34 |
% |
|
64.22 |
% |
|
75.62 |
% |
|
65.07 |
% |
|
59.56 |
% |
Operating efficiency ratio (non-GAAP) |
|
64.04 |
% |
|
61.89 |
% |
|
73.59 |
% |
|
60.83 |
% |
|
58.47 |
% |
|
|
|
|
|
|
||||||||||
(1) Interest income on tax-exempt loans and investment securities has been adjusted to a FTE basis using a marginal tax rate of |
|||||||||||||||
|
APPENDIX C: Reconciliation of Non-GAAP Capital Metrics
For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
|
As of |
||||||||||||||
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||||||
(Unaudited, dollars in thousands, except per-share data) |
|
|
|
|
|
||||||||||
Tangible shareholders' equity: |
|
|
|
|
|
||||||||||
Total shareholders' equity (GAAP) |
$ |
2,967,473 |
|
$ |
2,952,831 |
|
$ |
2,974,855 |
|
$ |
2,446,553 |
|
$ |
2,526,772 |
|
Less: Goodwill and other intangibles (1) |
|
565,196 |
|
|
565,701 |
|
|
566,205 |
|
|
657,824 |
|
|
658,993 |
|
Tangible shareholders' equity (non-GAAP) |
|
2,402,277 |
|
|
2,387,130 |
|
|
2,408,650 |
|
|
1,788,729 |
|
|
1,867,779 |
|
|
|
|
|
|
|
||||||||||
Tangible assets: |
|
|
|
|
|
||||||||||
Total assets (GAAP) |
|
21,044,169 |
|
|
21,174,804 |
|
|
21,133,278 |
|
|
21,146,292 |
|
|
21,583,493 |
|
Less: Goodwill and other intangibles (1) |
|
565,196 |
|
|
565,701 |
|
|
566,205 |
|
|
657,824 |
|
|
658,993 |
|
Tangible assets (non-GAAP) |
$ |
20,478,973 |
|
$ |
20,609,103 |
|
$ |
20,567,073 |
|
$ |
20,488,468 |
|
$ |
20,924,500 |
|
|
|
|
|
|
|
||||||||||
Shareholders' equity to assets ratio (GAAP) |
|
14.10 |
% |
|
13.95 |
% |
|
14.08 |
% |
|
11.57 |
% |
|
11.71 |
% |
Tangible shareholders' equity to tangible assets ratio (non-GAAP) |
|
11.73 |
% |
|
11.58 |
% |
|
11.71 |
% |
|
8.73 |
% |
|
8.93 |
% |
|
|
|
|
|
|
||||||||||
Common shares outstanding |
|
176,687,829 |
|
|
176,631,477 |
|
|
176,426,993 |
|
|
176,376,675 |
|
|
176,376,675 |
|
|
|
|
|
|
|
||||||||||
Book value per share (GAAP) |
$ |
16.80 |
|
$ |
16.72 |
|
$ |
16.86 |
|
$ |
13.87 |
|
$ |
14.33 |
|
Tangible book value per share (non-GAAP) |
$ |
13.60 |
|
$ |
13.51 |
|
$ |
13.65 |
|
$ |
10.14 |
|
$ |
10.59 |
|
|
|
|
|
|
|
||||||||||
(1) Includes goodwill and other intangible assets of discontinued operations as of September 30, 2023 and June 30, 2023. |
APPENDIX D: Tangible Shareholders’ Equity Roll Forward Analysis
For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
|
As of |
|
Change from |
|||||||
|
Jun 30, 2024 |
Mar 31, 2024 |
|
Mar 31, 2024 |
||||||
(Unaudited, dollars in thousands, except per-share data) |
|
|
|
|
||||||
Common stock |
$ |
1,770 |
|
$ |
1,769 |
|
|
$ |
1 |
|
Additional paid in capital |
|
1,673,722 |
|
|
1,669,133 |
|
|
|
4,589 |
|
Unallocated ESOP common stock |
|
(130,295 |
) |
|
(131,512 |
) |
|
|
1,217 |
|
Retained earnings |
|
2,076,566 |
|
|
2,068,315 |
|
|
|
8,251 |
|
AOCI, net of tax - available for sale securities |
|
(612,196 |
) |
|
(611,802 |
) |
|
|
(394 |
) |
AOCI, net of tax - pension |
|
6,430 |
|
|
6,946 |
|
|
|
(516 |
) |
AOCI, net of tax - cash flow hedge |
|
(48,524 |
) |
|
(50,018 |
) |
|
|
1,494 |
|
Total shareholders' equity: |
$ |
2,967,473 |
|
$ |
2,952,831 |
|
|
$ |
14,642 |
|
Less: Goodwill and other intangibles |
|
565,196 |
|
|
565,701 |
|
|
|
(505 |
) |
Tangible shareholders' equity (non-GAAP) |
$ |
2,402,277 |
|
$ |
2,387,130 |
|
|
$ |
15,147 |
|
|
|
|
|
|
||||||
Common shares outstanding |
|
176,687,829 |
|
|
176,631,477 |
|
|
|
56,352 |
|
|
|
|
|
|
||||||
Per share: |
|
|
|
|
||||||
Common stock |
$ |
0.01 |
|
$ |
0.01 |
|
|
$ |
— |
|
Additional paid in capital |
|
9.47 |
|
|
9.45 |
|
|
|
0.02 |
|
Unallocated ESOP common stock |
|
(0.74 |
) |
|
(0.74 |
) |
|
|
0.01 |
|
Retained earnings |
|
11.75 |
|
|
11.71 |
|
|
|
0.04 |
|
AOCI, net of tax - available for sale securities |
|
(3.46 |
) |
|
(3.46 |
) |
|
|
— |
|
AOCI, net of tax - pension |
|
0.04 |
|
|
0.04 |
|
|
|
— |
|
AOCI, net of tax - cash flow hedge |
|
(0.27 |
) |
|
(0.28 |
) |
|
|
0.01 |
|
Total shareholders' equity: |
$ |
16.80 |
|
$ |
16.72 |
|
|
$ |
0.08 |
|
Less: Goodwill and other intangibles |
|
3.20 |
|
|
3.20 |
|
|
|
— |
|
Tangible shareholders' equity (non-GAAP) |
$ |
13.60 |
|
$ |
13.51 |
|
|
$ |
0.08 |
|
|
|
|
|
|
APPENDIX E: M&A Expense
|
As of and for the Three Months Ended |
|||||||||
(Unaudited, dollars in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|||||
Salaries and employee benefits |
$ |
383 |
$ |
3 |
$ |
5 |
$ |
— |
$ |
— |
Office occupancy and equipment |
|
11 |
|
6 |
|
2 |
|
— |
|
— |
Data processing |
|
2,249 |
|
865 |
|
1,357 |
|
— |
|
— |
Professional services |
|
944 |
|
787 |
|
450 |
|
3,630 |
|
— |
Other |
|
97 |
|
155 |
|
51 |
|
— |
|
— |
Total |
$ |
3,684 |
$ |
1,816 |
$ |
1,865 |
$ |
3,630 |
$ |
— |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725055488/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
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