Eastern Bankshares, Inc. Reports Third Quarter 2024 Financial Results

Business Wire10-25

~ Company Announces a 9% Increase to Quarterly Dividend ~ BOSTON, October 24, 2024--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the "Company") (NASDAQ: EBC), the holding company of Eastern Bank, today ...

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(the \"Company\") (NASDAQ: EBC), the holding company of Eastern Bank, today ...</p>\n\n<a href=\"https://finance.yahoo.com/news/eastern-bankshares-inc-reports-third-201800136.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Eastern Bankshares, Inc. Reports Third Quarter 2024 Financial Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEastern Bankshares, Inc. Reports Third Quarter 2024 Financial Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 04:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/eastern-bankshares-inc-reports-third-201800136.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>~ Company Announces a 9% Increase to Quarterly Dividend ~\nBOSTON, October 24, 2024--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the \"Company\") (NASDAQ: EBC), the holding company of Eastern Bank, today ...</p>\n\n<a href=\"https://finance.yahoo.com/news/eastern-bankshares-inc-reports-third-201800136.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EML","symbol_name":"Eastern Company ","start_time":0,"source_url":"https://finance.yahoo.com/news/eastern-bankshares-inc-reports-third-201800136.html","article_id":"2478169512","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/WsLFjVQaNf_i9UHDtG8oNw--~B/aD01MTI7dz0xMDI0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/business-wire.com/f954a39958050750fcc4991a6b5a1a0f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478169512","pubTimestamp":1729801080,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"~ Company Announces a 9% Increase to Quarterly Dividend ~BOSTON, October 24, 2024----Eastern Bankshares, Inc.  , the holding company of Eastern Bank, today announced its 2024 third quarter financial results.Net loss of $6.2 million included the initial provision on non-purchased credit deteriorated  loans of $40.9 million and merger-related charges of $30.5 million. Operating net income of $49.7 million, or 0.25 per diluted share.Merger EPS accretion and cost saves on track to exceed original estimates.Net interest margin on a fully tax equivalent  basis of 2.97%, an increase of 0.33%, including net discount accretion from the Cambridge merger of 0.18%.Trust and investment advisory fees increased $8.2 million, or 122%, from the prior quarter to $14.9 million, due primarily to increased assets under management  as a result of the merger.Book value per share and tangible book value per share ended the quarter at $17.09 and $12.17, respectively.Non-performing loans  increased by $84.7 mil","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EML":"Eastern Company ","BK4211":"区域性银行","BK4161":"工业机械","EBC":"Eastern Bankshares Inc","WRD":"文远知行"},"translate_title":"东方银行股份公司报告2024年第三季度财务业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EML":1,"WRD":1,"EBC":0.9},"content_text":"~ Company Announces a 9% Increase to Quarterly Dividend ~\nBOSTON, October 24, 2024--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the \"Company\") (NASDAQ: EBC), the holding company of Eastern Bank, today announced its 2024 third quarter financial results.\nFINANCIAL HIGHLIGHTS\n\nNet loss of $6.2 million included the initial provision on non-purchased credit deteriorated (\"non-PCD\") loans of $40.9 million and merger-related charges of $30.5 million. Operating net income of $49.7 million, or 0.25 per diluted share.\nMerger EPS accretion and cost saves on track to exceed original estimates.\nNet interest margin on a fully tax equivalent (\"FTE\") basis of 2.97%, an increase of 0.33%, including net discount accretion from the Cambridge merger of 0.18%.\nTrust and investment advisory fees increased $8.2 million, or 122%, from the prior quarter to $14.9 million, due primarily to increased assets under management (\"AUM\") as a result of the merger.\nBook value per share and tangible book value per share ended the quarter at $17.09 and $12.17, respectively.\nNon-performing loans (\"NPLs\") increased by $84.7 million to $124.5 million, or 0.70% of total loans, due primarily to purchased credit deteriorated (\"PCD\") loans acquired from Cambridge that were thoroughly assessed by the Credit teams and adequately reserved.\nThe Board declared a 9% increase in the quarterly cash dividend to $0.12 per share.\n\n\n\n\n\nAs of and for three months ended\n\nLinked quarter Change\n\n\n(Unaudited, $ in thousands, except per share data)\nSep 30, 2024\nJun 30, 2024\n\n△ $\n△ %\n\n\nEarnings\n\n\n\n\n\n\n\nNet (loss) income\n$\n(6,188\n)\n$\n26,331\n\n\n$\n(32,519\n)\n(124\n)%\n\n\nPer share, diluted\n$\n(0.03\n)\n$\n0.16\n\n\n$\n(0.19\n)\n(119\n)%\n\n\n\n\n\n\n\n\n\n\nOperating net income*\n$\n49,665\n\n$\n36,519\n\n\n$\n13,146\n\n36\n%\n\n\nPer share, diluted*\n$\n0.25\n\n$\n0.22\n\n\n$\n0.03\n\n14\n%\n\n\n\n\n\n\n\n\n\n\nNet interest income\n$\n169,855\n\n$\n128,649\n\n\n$\n41,206\n\n32\n%\n\n\nNIM - FTE (1)*\n\n2.97\n%\n\n2.64\n%\n\n\n0.33\n%\nNM\n\n\n\n\n\n\n\n\n\n\n\nNoninterest income\n$\n33,528\n\n$\n25,348\n\n\n$\n8,180\n\n32\n%\n\n\nOperating noninterest income*\n$\n32,907\n\n$\n31,146\n\n\n$\n1,761\n\n6\n%\n\n\nNoninterest expense\n$\n159,753\n\n$\n109,869\n\n\n$\n49,884\n\n45\n%\n\n\nOperating noninterest expense*\n$\n130,850\n\n$\n105,255\n\n\n$\n25,595\n\n24\n%\n\n\nEfficiency ratio\n\n78.5\n%\n\n71.3\n%\n\n\n7.2\n%\nNM\n\n\n\nOperating efficiency ratio*\n\n60.1\n%\n\n63.7\n%\n\n\n(3.6\n)%\nNM\n\n\n\n\n\n\n\n\n\n\n\nBalance sheet\n\n\n\n\n\n\n\nPeriod-end balances\n\n\n\n\n\n\n\nLoans\n$\n18,064,126\n\n$\n14,145,520\n\n\n$\n3,918,606\n\n28\n%\n\n\nDeposits\n$\n21,216,854\n\n$\n17,537,809\n\n\n$\n3,679,045\n\n21\n%\n\n\nAverage balances\n\n\n\n\n\n\n\nLoans\n$\n17,274,903\n\n$\n14,113,343\n\n\n$\n3,161,560\n\n22\n%\n\n\nDeposits\n$\n20,858,252\n\n$\n17,751,502\n\n\n$\n3,106,750\n\n18\n%\n\n\n\n\n\n\n\n\n\n\nCapital\n\n\n\n\n\n\n\nTangible shareholders’ equity / tangible assets*\n\n10.69\n%\n\n11.73\n%\n\n\n(1.04\n)%\nNM\n\n\n\nCET1 capital ratio (2)\n\n15.52\n%\n\n18.63\n%\n\n\n(3.11\n)%\nNM\n\n\n\nBook value per share\n$\n17.09\n\n$\n16.80\n\n\n$\n0.29\n\n2\n%\n\n\nTangible book value per share*\n$\n12.17\n\n$\n13.60\n\n\n$\n(1.43\n)\n(11\n)%\n\n\n\n\n\n\n\n\n\n\nAsset quality\n\n\n\n\n\n\n\nNon-performing loans\n$\n124,503\n\n$\n39,771\n\n\n$\n84,732\n\n213\n%\n\n\nTotal non-performing loans to total loans\n\n0.70\n%\n\n0.28\n%\n\n\n0.42\n%\nNM\n\n\n\nNet charge-offs (recoveries) to average total loans (1)\n\n0.12\n%\n\n(0.02\n)%\n\n\n0.14\n%\nNM\n\n\n\n\n\n\n\n\n\n\n\n(1) Presented on an annualized basis.\n\n\n(2) CET1 capital ratio as of September 30, 2024 is a preliminary estimate.\n\n\n*Non-GAAP\n\n\n\n\n\n\n\n\nOn July 12, 2024, the Company completed its merger (\"the merger\") with Cambridge Bancorp (\"Cambridge\"), the parent company of Cambridge Trust Company, and therefore the third quarter financial results reflect the partial quarter impact of the merger. The merger added approximately $3.7 billion in loans, $3.9 billion in deposits, each at fair value, and $4.7 billion in AUM.\n\"This quarter marked a transformational moment in Eastern’s history, as we closed on our merger with Cambridge Trust,\" said Bob Rivers, Executive Chair and Chair of the Board of Directors of the Company and Eastern Bank. \"This combination represents a powerful step forward in achieving our strategic vision, positioning us as a stronger, more competitive institution and Greater Boston’s leading local bank. I want to acknowledge the hard work and dedication of our entire team.\"\nDenis Sheahan, Chief Executive Officer, added, \"While we’ve grown, our focus remains deeply rooted in the Greater Boston community. Our expanded capabilities allow us to better serve the consumers and businesses that drive this region’s economy, by providing comprehensive, one-stop banking and wealth management solutions, ensuring that we remain a committed resource in their success.\"\n\"Following successful bank and wealth system conversions, we are on track to achieve the merger-related financial targets that were set forth at the time of our announcement just over a year ago,\" said David Rosato, Chief Financial Officer. \"This accomplishment underscores the strength of our integration strategy and our commitment to deliver shareholder value.\"\nBALANCE SHEET\nTotal assets were $25.5 billion at September 30, 2024, representing an increase of $4.5 billion, or 21.2% from June 30, 2024.\n\nCash and equivalents increased $138.6 million to $889.5 million.\nSecurities increased $56.3 million, or 1.2%, to $4.6 billion, due to an increase in the market value of available for sale securities (\"AFS securities\") driven by lower interest rates, partially offset by principal runoff. Acquired securities totaling $883.0 million were sold following completion of the merger.\nLoans totaled $18.1 billion, representing an increase of $3.9 billion, or 27.7%, due to the addition of Cambridge. Eastern-originated loans declined modestly by $16.1 million, or 0.1%, in the quarter.\nDeposits totaled $21.2 billion, representing an increase of $3.7 billion, or 21.0%. The merger added $3.9 billion of deposits. Legacy Eastern deposits decreased $195 million, or 0.9%, due primarily to a seasonal decline in municipal deposits, partially offset by an increase in time deposits.\nFHLB advances decreased $0.1 million to $17.3 million. Proceeds from the securities sale were used to pay off FHLB advances of $782.0 million that the Company assumed through the merger.\nShareholders’ equity was $3.7 billion, representing an increase of $703.7 million, due primarily to the common shares issued in the merger, as well as an increase in AOCI, partially offset by a decrease in retained earnings.\n\nPlease refer to Appendix E for more information on organic loan and deposit growth and the impact of the Cambridge merger, and Appendix F for a roll-forward of tangible shareholders’ equity.\nNET INTEREST INCOME\nNet interest income was $169.9 million for the third quarter, compared to $128.6 million, representing an increase of $41.2 million, due to an increase in the net interest margin and increased average earning assets.\n\nNet interest income included net accretion income of $10.8 million from purchase accounting adjustments in connection with the merger.\nThe net interest margin on a FTE basis was 2.97%, representing a 33 basis point increase and included net discount accretion of 18 basis points from the Cambridge merger.\nTotal interest-earning assets yield increased 41 basis points from the prior quarter to 4.60%, due primarily to an increase in loan yields of 39 basis points, as well as higher other short-term investment balances.\nTotal interest-bearing liabilities cost increased 6 basis points to 2.50%.\n\nNONINTEREST INCOME\nNoninterest income was $33.5 million for the third quarter, compared to $25.3 million, representing an increase of $8.2 million. Operating noninterest income was $32.9 million, compared to $31.1 million, representing an increase of $1.8 million.\n\nTrust and investment advisory fees increased $8.2 million to $14.9 million, due primarily to increased AUM as a result of the merger.\nService charges on deposit accounts increased $0.2 million to $8.1 million.\nDebit card processing fees increased $0.3 million to $3.8 million.\nCustomer swap income increased $0.1 million to $0.6 million.\nIncome from investments held in rabbi trust accounts increased $1.8 million to $3.6 million.\nLosses on sales of mortgage loans held for sale were $0.4 million, compared to losses of $0.2 million in the prior quarter.\nThere were no losses on sales of AFS securities in the third quarter, compared to losses of $7.6 million in the prior quarter.\nOther noninterest income decreased $9.8 million to $2.9 million, due in part to the merger-related disposal of fixed assets totaling $3.0 million. The prior quarter included an early termination payment of $7.8 million received from the early withdrawal of a $100 million deposit contract.\n\nNONINTEREST EXPENSE\nNoninterest expense was $159.8 million, compared to $109.9 million, an increase of $49.9 million. The increase was primarily driven by the increase in merger-related expenses of $23.9 million. Operating noninterest expense was $130.9 million, compared to $105.3 million, representing an increase of $25.6 million.\n\nSalaries and employee benefits expense was $93.8 million, an increase of $28.5 million. The increase in salaries expense of $24.6 million was due primarily to the addition of colleagues, and an increase in merger-related expenses of $11.8 million, including retention bonuses and severance payments. The increase in employee benefits expense of $3.9 million was attributable to an increase in federal payroll tax expense of $1.4 million, as well as the addition of colleagues and the increased market value of investments held in rabbi trust accounts by the Company’s defined contribution supplemental executive retirement plan (\"DC SERP\").\nOffice occupancy and equipment expense was $14.5 million, an increase of $4.4 million, due primarily to merger-related expenses of $2.6 million, as well as the addition of leases and equipment from the merger.\nData processing expense was $19.5 million, an increase of $1.5 million.\nProfessional services expense was $9.0 million, an increase of $4.7 million, due primarily to merger-related expenses of $4.5 million.\nMarketing expense was $1.6 million, a decrease of $0.3 million.\nFederal Deposit Insurance Corporation (\"FDIC\") insurance expense was $3.2 million, a decrease of $1.3 million. The prior quarter included a FDIC special assessment of $1.9 million.\nAmortization of intangible assets was $6.2 million, an increase of $5.7 million, driven primarily by the amortization of core deposit intangibles and wealth management intangibles in connection with the merger.\nOther noninterest expense was $12.1 million, an increase of $6.7 million, due primarily to an increase in provision for off balance sheet credit exposures of $2.9 million, including a $1.9 million initial provision on off balance sheet credit exposures acquired from Cambridge, as well as merger-related contract termination fees of $2.6 million.\n\nPlease refer to Appendix D for additional detail on merger-related charges.\nASSET QUALITY\nNon-performing loans (\"NPLs\") totaled $124.5 million, or 0.70% of total loans, at September 30, 2024 compared to $39.8 million, or 0.28% of total loans, at the end of the prior quarter. The increase in NPLs was driven primarily by purchased credit deteriorated (\"PCD\") loans acquired from Cambridge that were on non-accrual status at September 30, 2024.\nDuring the third quarter of 2024, the Company recorded total net charge-offs of $5.1 million, or 0.12% of average total loans on an annualized basis, compared to total net recoveries of $0.8 million, or 0.02% of average total loans on an annualized basis, in the prior quarter, respectively.\nThe Company recorded a provision for loan losses totaling $47.0 million, including a $40.9 million initial provision on non-PCD loans acquired from Cambridge. The remaining provision was primarily associated with individual reserves on commercial real estate loans during the quarter.\nThe allowance for loan losses was $253.8 million at September 30, 2024, or 1.43% of total loans, compared to $156.1 million, or 1.11% of total loans, at June 30, 2024. The allowance in the third quarter included a $55.8 million initial allowance on PCD loans and a $40.9 million allowance established via the aforementioned initial provision on non-PCD loans, both related to the merger.\nDIVIDENDS AND SHARE REPURCHASES\nThe Company’s Board of Directors declared a quarterly cash dividend of $0.12 per common share, representing a $0.01, or 9%, increase. The dividend will be payable on December 16, 2024 to shareholders of record as of the close of business on December 3, 2024.\nThe Company repurchased 836,399 shares of common stock during the third quarter at a weighted average price of $15.08, for an aggregate purchase price of $12.6 million.\nCONFERENCE CALL AND PRESENTATION INFORMATION\nA conference call and webcast covering Eastern’s third quarter 2024 earnings will be held on Friday, October 25, 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 U.S. and reference conference ID 35193. The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website at investor.easternbank.com. A presentation providing additional information for the quarter is also available at investor.easternbank.com. A replay of the webcast will be available on this site.\nABOUT EASTERN BANKSHARES, INC.\nEastern Bankshares, Inc. is the holding company for Eastern Bank. Founded in 1818, Eastern Bank is Greater Boston’s leading local bank with more than 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut. As of September 30, 2024, Eastern Bank had approximately $25.5 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management division, the largest bank-owned investment advisor in Massachusetts with approximately $8.4 billion in assets under management, and takes pride in its outspoken advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. For investor information, visit investor.easternbank.com.\nNON-GAAP FINANCIAL MEASURES\n*Denotes a non-GAAP financial measure used in the press release.\nA 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 United States (\"GAAP\") in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements).\nThe 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.\nThere 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. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. 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 are not provided.\nManagement 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, 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 and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of 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 includes 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.\nThese 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.\nFORWARD-LOOKING STATEMENTS\nThis 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.\nCertain 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, including 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 merger, 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 U.S. Securities and Exchange Commission (the \"SEC\"), which are available on the SEC’s website at www.sec.gov.\nYou 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.\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nSELECTED FINANCIAL HIGHLIGHTS (1)\n\n\n\nCertain 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.\"\n\n\n\n\nAs of and for the three months ended\n\n\n(Unaudited, dollars in thousands, except per-share data)\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\nEarnings data\n\n\n\n\n\n\n\nNet interest income\n$\n169,855\n\n$\n128,649\n\n$\n129,900\n\n$\n133,307\n\n$\n137,205\n\n\n\nNoninterest income\n\n33,528\n\n\n25,348\n\n\n27,692\n\n\n26,739\n\n\n19,157\n\n\n\nTotal revenue\n\n203,383\n\n\n153,997\n\n\n157,592\n\n\n160,046\n\n\n156,362\n\n\n\nNoninterest expense\n\n159,753\n\n\n109,869\n\n\n101,202\n\n\n121,029\n\n\n101,748\n\n\n\nPre-tax, pre-provision income\n\n43,630\n\n\n44,128\n\n\n56,390\n\n\n39,017\n\n\n54,614\n\n\n\nProvision for allowance for loan losses\n\n46,983\n\n\n6,126\n\n\n7,451\n\n\n5,198\n\n\n7,328\n\n\n\nPre-tax (loss) income\n\n(3,353\n)\n\n38,002\n\n\n48,939\n\n\n33,819\n\n\n47,286\n\n\n\nNet (loss) income from continuing operations\n\n(6,188\n)\n\n26,331\n\n\n38,647\n\n\n31,509\n\n\n63,464\n\n\n\nNet income (loss) from discontinued operations\n\n—\n\n\n—\n\n\n—\n\n\n286,994\n\n\n(4,351\n)\n\n\nNet (loss) income\n\n(6,188\n)\n\n26,331\n\n\n38,647\n\n\n318,503\n\n\n59,113\n\n\n\nOperating net income (non-GAAP)\n\n49,665\n\n\n36,519\n\n\n38,081\n\n\n16,875\n\n\n52,085\n\n\n\n\n\n\n\n\n\n\n\nPer-share data\n\n\n\n\n\n\n\n(Loss) earnings per share, diluted\n$\n(0.03\n)\n$\n0.16\n\n$\n0.24\n\n$\n1.95\n\n$\n0.36\n\n\n\nContinuing operations\n$\n(0.03\n)\n$\n0.16\n\n$\n0.24\n\n$\n0.19\n\n$\n0.39\n\n\n\nDiscontinued operations\n$\n—\n\n$\n—\n\n$\n—\n\n$\n1.76\n\n$\n(0.03\n)\n\n\nOperating earnings per share, diluted (non-GAAP)\n$\n0.25\n\n$\n0.22\n\n$\n0.23\n\n$\n0.10\n\n$\n0.32\n\n\n\nBook value per share\n$\n17.09\n\n$\n16.80\n\n$\n16.72\n\n$\n16.86\n\n$\n13.87\n\n\n\nTangible book value per share (non-GAAP)\n$\n12.17\n\n$\n13.60\n\n$\n13.51\n\n$\n13.65\n\n$\n10.14\n\n\n\n\n\n\n\n\n\n\n\nProfitability\n\n\n\n\n\n\n\nReturn on average assets (2)\n\n(0.10\n)%\n\n0.50\n%\n\n0.74\n%\n\n0.59\n%\n\n1.18\n%\n\n\nOperating return on average assets (non-GAAP) (2)\n\n0.79\n%\n\n0.70\n%\n\n0.72\n%\n\n0.31\n%\n\n0.97\n%\n\n\nReturn on average shareholders' equity (2)\n\n(0.70\n)%\n\n3.62\n%\n\n5.23\n%\n\n4.66\n%\n\n9.91\n%\n\n\nOperating return on average shareholders' equity (2)\n\n5.60\n%\n\n5.03\n%\n\n5.17\n%\n\n2.51\n%\n\n8.14\n%\n\n\nReturn on average tangible shareholders' equity (non-GAAP) (2) (3)\n\n(0.26\n)%\n\n4.54\n%\n\n6.52\n%\n\n6.06\n%\n\n13.46\n%\n\n\nOperating return on average tangible shareholders' equity (non-GAAP) (2) (3)\n\n8.45\n%\n\n6.28\n%\n\n6.42\n%\n\n3.27\n%\n\n11.07\n%\n\n\nNet interest margin (FTE) (2)\n\n2.97\n%\n\n2.64\n%\n\n2.68\n%\n\n2.69\n%\n\n2.77\n%\n\n\nCost of deposits (2)\n\n1.82\n%\n\n1.78\n%\n\n1.66\n%\n\n1.51\n%\n\n1.33\n%\n\n\nEfficiency ratio\n\n78.5\n%\n\n71.3\n%\n\n64.2\n%\n\n75.6\n%\n\n65.1\n%\n\n\nOperating efficiency ratio (non-GAAP) (4)\n\n60.1\n%\n\n63.7\n%\n\n61.6\n%\n\n73.3\n%\n\n60.5\n%\n\n\n\n\n\n\n\n\n\n\nBalance Sheet (end of period)\n\n\n\n\n\n\n\nTotal assets\n$\n25,507,187\n\n$\n21,044,169\n\n$\n21,174,804\n\n$\n21,133,278\n\n$\n21,146,292\n\n\n\nTotal loans\n\n18,064,126\n\n\n14,145,520\n\n\n14,088,747\n\n\n13,973,428\n\n\n13,919,275\n\n\n\nTotal deposits\n\n21,216,854\n\n\n17,537,809\n\n\n17,666,733\n\n\n17,596,217\n\n\n17,424,169...\n   \n\n\nTotal loans / total deposits\n\n85\n%\n\n81\n%\n\n80\n%\n\n79\n%\n\n80\n%\n\n\n\n\n\n\n\n\n\n\nAsset quality\n\n\n\n\n\n\n\nAllowance for loan losses (\"ALLL\")\n$\n253,821\n\n$\n156,146\n\n$\n149,190\n\n$\n148,993\n\n$\n155,146\n\n\n\nALLL / total nonperforming loans (\"NPLs\")\n\n203.87\n%\n\n392.61\n%\n\n260.94\n%\n\n283.49\n%\n\n326.86\n%\n\n\nTotal NPLs / total loans\n\n0.70\n%\n\n0.28\n%\n\n0.41\n%\n\n0.38\n%\n\n0.34\n%\n\n\nNet charge-offs (\"NCOs\") (recoveries) / average total loans (2)\n\n0.12\n%\n\n(0.02\n)%\n\n0.21\n%\n\n0.32\n%\n\n0.00\n%\n\n\n\n\n\n\n\n\n\n\nCapital adequacy\n\n\n\n\n\n\n\nShareholders' equity / assets\n\n14.39\n%\n\n14.10\n%\n\n13.95\n%\n\n14.08\n%\n\n11.57\n%\n\n\nTangible shareholders' equity / tangible assets (non-GAAP)\n\n10.69\n%\n\n11.73\n%\n\n11.58\n%\n\n11.71\n%\n\n8.73\n%\n\n\n\n\n\n\n\n\n\n\n(1) Total assets, average assets and average tangible shareholders' equity components as of and for the three months ended Sep 30, 2023 and Dec 31, 2023 presented in this table include discontinued operations.\n\n\n(2) Presented on an annualized basis.\n\n\n(3) The return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.\n\n\n(4) The operating efficiency ratio excludes the amortization of intangible assets.\n\n\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nCONSOLIDATED BALANCE SHEETS\n\n\n\n\n\n \n\n\n\nAs of\n\nSep 30, 2024 change from\n\n\n(Unaudited, dollars in thousands)\nSep 30, 2024\nJun 30, 2024\nSep 30, 2023\n\nJun 30, 2024\n\nSep 30, 2023\n\n\nASSETS\n\n\n\n\n△ $\n△ %\n\n△ $\n△ %\n\n\nCash and due from banks\n$\n98,299\n\n$\n72,890\n\n$\n72,689\n\n\n$\n25,409\n\n35\n%\n\n$\n25,610\n\n35\n%\n\n\nShort-term investments\n\n791,177\n\n\n677,958\n\n\n536,119\n\n\n\n113,219\n\n17\n%\n\n\n255,058\n\n48\n%\n\n\nCash and cash equivalents\n\n889,476\n\n\n750,848\n\n\n608,808\n\n\n\n138,628\n\n18\n%\n\n\n280,668\n\n46\n%\n\n\nAvailable for sale (\"AFS\") securities\n\n4,163,352\n\n\n4,097,842\n\n\n4,261,518\n\n\n\n65,510\n\n2\n%\n\n\n(98,166\n)\n(2\n)%\n\n\nHeld to maturity (\"HTM\") securities\n\n427,459\n\n\n436,712\n\n\n455,900\n\n\n\n(9,253\n)\n(2\n)%\n\n\n(28,441\n)\n(6\n)%\n\n\nTotal securities\n\n4,590,811\n\n\n4,534,554\n\n\n4,717,418\n\n\n\n56,257\n\n1\n%\n\n\n(126,607\n)\n(3\n)%\n\n\nLoans held for sale\n\n1,993\n\n\n1,308\n\n\n23,892\n\n\n\n685\n\n52\n%\n\n\n(21,899\n)\n(92\n)%\n\n\nLoans:\n\n\n\n\n\n\n\n\n\n\n\nCommercial and industrial\n\n3,340,029\n\n\n3,084,186\n\n\n3,087,509\n\n\n\n255,843\n\n8\n%\n\n\n252,520\n\n8\n%\n\n\nCommercial real estate\n\n7,174,861\n\n\n5,440,411\n\n\n5,396,912\n\n\n\n1,734,450\n\n32\n%\n\n\n1,777,949\n\n33\n%\n\n\nCommercial construction\n\n513,519\n\n\n447,157\n\n\n382,615\n\n\n\n66,362\n\n15\n%\n\n\n130,904\n\n34\n%\n\n\nBusiness banking\n\n1,321,179\n\n\n1,108,163\n\n\n1,087,799\n\n\n\n213,016\n\n19\n%\n\n\n233,380\n\n21\n%\n\n\nTotal commercial loans\n\n12,349,588\n\n\n10,079,917\n\n\n9,954,835\n\n\n\n2,269,671\n\n23\n%\n\n\n2,394,753\n\n24\n%\n\n\nResidential real estate\n\n4,080,736\n\n\n2,562,808\n\n\n2,550,861\n\n\n\n1,517,928\n\n59\n%\n\n\n1,529,875\n\n60\n%\n\n\nConsumer home equity\n\n1,361,971\n\n\n1,254,105\n\n\n1,193,859\n\n\n\n107,866\n\n9\n%\n\n\n168,112\n\n14\n%\n\n\nOther consumer\n\n271,831\n\n\n248,690\n\n\n219,720\n\n\n\n23,141\n\n9\n%\n\n\n52,111\n\n24\n%\n\n\nTotal loans\n\n18,064,126\n\n\n14,145,520\n\n\n13,919,275\n\n\n\n3,918,606\n\n28\n%\n\n\n4,144,851\n\n30\n%\n\n\nAllowance for loan losses\n\n(253,821\n)\n\n(156,146\n)\n\n(155,146\n)\n\n\n(97,675\n)\n63\n%\n\n\n(98,675\n)\n64\n%\n\n\nUnamortized prem./disc. and def. fees\n\n(308,243\n)\n\n(35,601\n)\n\n(19,307\n)\n\n\n(272,642\n)\n766\n%\n\n\n(288,936\n)\n1497\n%\n\n\nNet loans\n\n17,502,062\n\n\n13,953,773\n\n\n13,744,822\n\n\n\n3,548,289\n\n25\n%\n\n\n3,757,240\n\n27\n%\n\n\nFederal Home Loan Bank stock, at cost\n\n5,865\n\n\n5,879\n\n\n37,125\n\n\n\n(14\n)\n—\n%\n\n\n(31,260\n)\n(84\n)%\n\n\nPremises and equipment\n\n78,776\n\n\n60,910\n\n\n59,033\n\n\n\n17,866\n\n29\n%\n\n\n19,743\n\n33\n%\n\n\nBank-owned life insurance\n\n203,635\n\n\n166,710\n\n\n163,700\n\n\n\n36,925\n\n22\n%\n\n\n39,935\n\n24\n%\n\n\nGoodwill and other intangibles, net\n\n1,057,509\n\n\n565,196\n\n\n566,709\n\n\n\n492,313\n\n87\n%\n\n\n490,800\n\n87\n%\n\n\nDeferred income taxes, net\n\n319,206\n\n\n276,064\n\n\n416,081\n\n\n\n43,142\n\n16\n%\n\n\n(96,875\n)\n(23\n)%\n\n\nPrepaid expenses\n\n201,285\n\n\n183,245\n\n\n156,113\n\n\n\n18,040\n\n10\n%\n\n\n45,172\n\n29\n%\n\n\nOther assets\n\n656,569\n\n\n545,682\n\n\n527,873\n\n\n\n110,887\n\n20\n%\n\n\n128,696\n\n24\n%\n\n\nAssets of discontinued operations\n\n—\n\n\n—\n\n\n124,718\n\n\n\n—\n\n—\n%\n\n\n(124,718\n)\n(100\n)%\n\n\nTotal assets\n$\n25,507,187\n\n$\n21,044,169\n\n$\n21,146,292\n\n\n$\n4,463,018\n\n21\n%\n\n$\n4,360,895\n\n21\n%\n\n\nLIABILITIES AND SHAREHOLDERS' EQUITY\n\n\n\n\n\n\n\n\n\n\n\nDeposits:\n\n\n\n\n\n\n\n\n\n\n\nDemand\n$\n5,856,171\n\n$\n4,808,938\n\n$\n5,177,015\n\n\n$\n1,047,233\n\n22\n%\n\n$\n679,156\n\n13\n%\n\n\nInterest checking accounts\n\n4,562,226\n\n\n3,532,811\n\n\n3,671,871\n\n\n\n1,029,415\n\n29\n%\n\n\n890,355\n\n24\n%\n\n\nSavings accounts\n\n1,681,093\n\n\n1,238,009\n\n\n1,393,545\n\n\n\n443,084\n\n36\n%\n\n\n287,548\n\n21\n%\n\n\nMoney market investment\n\n5,572,277\n\n\n5,014,900\n\n\n4,709,149\n\n\n\n557,377\n\n11\n%\n\n\n863,128\n\n18\n%\n\n\nCertificates of deposit\n\n3,545,087\n\n\n2,943,151\n\n\n2,472,589\n\n\n\n601,936\n\n20\n%\n\n\n1,072,498\n\n43\n%\n\n\nTotal deposits\n\n21,216,854\n\n\n17,537,809\n\n\n17,424,169\n\n\n\n3,679,045\n\n21\n%\n\n\n3,792,685\n\n22\n%\n\n\nBorrowed funds:\n\n\n\n\n\n\n\n\n\n\n\nFederal Home Loan Bank advances\n\n17,342\n\n\n17,415\n\n\n673,525\n\n\n\n(73\n)\n—\n%\n\n\n(656,183\n)\n(97\n)%\n\n\nEscrow deposits of borrowers\n\n29,405\n\n\n20,155\n\n\n24,947\n\n\n\n9,250\n\n46\n%\n\n\n4,458\n\n18\n%\n\n\nInterest rate swap collateral funds\n\n24,070\n\n\n11,370\n\n\n16,900\n\n\n\n12,700\n\n112\n%\n\n\n7,170\n\n42\n%\n\n\nTotal borrowed funds\n\n70,817\n\n\n48,940\n\n\n715,372\n\n\n\n21,877\n\n45\n%\n\n\n(644,555\n)\n(90\n)%\n\n\nOther liabilities\n\n548,378\n\n\n489,947\n\n\n525,378\n\n\n\n58,431\n\n12\n%\n\n\n23,000\n\n4\n%\n\n\nLiabilities of discontinued operations\n\n—\n\n\n—\n\n\n34,820\n\n\n\n—\n\n—\n%\n\n\n(34,820\n)\n(100\n)%\n\n\nTotal liabilities\n\n21,836,049\n\n\n18,076,696\n\n\n18,699,739\n\n\n\n3,759,353\n\n21\n%\n\n\n3,136,310\n\n17\n%\n\n\nShareholders' equity:\n\n\n\n\n\n\n\n\n\n\n\nCommon shares\n\n2,150\n\n\n1,770\n\n\n1,766\n\n\n\n380\n\n21\n%\n\n\n384\n\n22\n%\n\n\nAdditional paid-in capital\n\n2,246,134\n\n\n1,673,722\n\n\n1,661,136\n\n\n\n572,412\n\n34\n%\n\n\n584,998\n\n35\n%\n\n\nUnallocated common shares held by the employee stock ownership plan (\"ESOP\")\n\n(129,077\n)\n\n(130,295\n)\n\n(133,992\n)\n\n\n1,218\n\n(1\n)%\n\n\n4,915\n\n(4\n)%\n\n\nRetained earnings\n\n2,048,042\n\n\n2,076,566\n\n\n1,747,225\n\n\n\n(28,524\n)\n(1\n)%\n\n\n300,817\n\n17\n%\n\n\nAccumulated other comprehensive income (\"AOCI\"), net of tax\n\n(496,111\n)\n\n(654,290\n)\n\n(829,582\n)\n\n\n158,179\n\n(24\n)%\n\n\n333,471\n\n(40\n)%\n\n\nTotal shareholders' equity\n\n3,671,138\n\n\n2,967,473\n\n\n2,446,553\n\n\n\n703,665\n\n24\n%\n\n\n1,224,585\n\n50\n%\n\n\nTotal liabilities and shareholders' equity\n$\n25,507,187\n\n$\n21,044,169\n\n$\n21,146,292\n\n\n$\n4,463,018\n\n21\n%\n\n$\n4,360,895\n\n21\n%\n\n\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nCONSOLIDATED STATEMENTS OF INCOME\n\n\n\n\n\n \n\n\n\nThree months ended\n\nThree months ended Sep 30, 2024 change from three months ended\n\n\n(Unaudited, dollars in thousands, except per-share data)\nSep 30, 2024\nJun 30, 2024\nSep 30, 2023\n\nJun 30, 2024\n\nSep 30, 2023\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nInterest and dividend income:\n\n\n\n\n△ $\n△ %\n\n△ $\n△ %\n\n\nInterest and fees on loans\n$\n230,824\n\n$\n172,514\n\n$\n169,274\n\n\n$\n58,310\n\n34\n%\n\n$\n61,550\n\n36\n%\n\n\nTaxable interest and dividends on securities\n\n22,421\n\n\n22,724\n\n\n24,191\n\n\n\n(303\n)\n(1\n)%\n\n\n(1,770\n)\n(7\n)%\n\n\nNon-taxable interest and dividends on securities\n\n1,444\n\n\n1,439\n\n\n1,434\n\n\n\n5\n\n—\n%\n\n\n10\n\n1\n%\n\n\nInterest on federal funds sold and other short-term investments\n\n11,329\n\n\n10,699\n\n\n7,269\n\n\n\n630\n\n6\n%\n\n\n4,060\n\n56\n%\n\n\nTotal interest and dividend income\n\n266,018\n\n\n207,376\n\n\n202,168\n\n\n\n58,642\n\n28\n%\n\n\n63,850\n\n32\n%\n\n\nInterest expense:\n\n\n\n\n\n\n\n\n\n\n\nInterest on deposits\n\n95,334\n\n\n78,473\n\n\n59,607\n\n\n\n16,861\n\n21\n%\n\n\n35,727\n\n60\n%\n\n\nInterest on borrowings\n\n829\n\n\n254\n\n\n5,356\n\n\n\n575\n\n226\n%\n\n\n(4,527\n)\n(85\n)%\n\n\nTotal interest expense\n\n96,163\n\n\n78,727\n\n\n64,963\n\n\n\n17,436\n\n22\n%\n\n\n31,200\n\n48\n%\n\n\nNet interest income\n\n169,855\n\n\n128,649\n\n\n137,205\n\n\n\n41,206\n\n32\n%\n\n\n32,650\n\n24\n%\n\n\nProvision for allowance for loan losses\n\n46,983\n\n\n6,126\n\n\n7,328\n\n\n\n40,857\n\n667\n%\n\n\n39,655\n\n541\n%\n\n\nNet interest income after provision for allowance for loan losses\n\n122,872\n\n\n122,523\n\n\n129,877\n\n\n\n349\n\n—\n%\n\n\n(7,005\n)\n(5\n)%\n\n\nNoninterest income:\n\n\n\n\n\n\n\n\n\n\n\nTrust and investment advisory fees\n\n14,909\n\n\n6,711\n\n\n6,235\n\n\n\n8,198\n\n122\n%\n\n\n8,674\n\n139\n%\n\n\nService charges on deposit accounts\n\n8,140\n\n\n7,930\n\n\n7,403\n\n\n\n210\n\n3\n%\n\n\n737\n\n10\n%\n\n\nDebit card processing fees\n\n3,806\n\n\n3,522\n\n\n3,388\n\n\n\n284\n\n8\n%\n\n\n418\n\n12\n%\n\n\nInterest rate swap income\n\n565\n\n\n418\n\n\n1,695\n\n\n\n147\n\n35\n%\n\n\n(1,130\n)\n(67\n)%\n\n\nIncome (losses) from investments held in rabbi trusts\n\n3,591\n\n\n1,761\n\n\n(1,523\n)\n\n\n1,830\n\n104\n%\n\n\n5,114\n\n(336\n)%\n\n\nLosses on sales of commercial and industrial loans\n\n—\n\n\n—\n\n\n(2,651\n)\n\n\n—\n\n—\n%\n\n\n2,651\n\n(100\n)%\n\n\nLosses on sales of mortgage loans held for sale, net\n\n(385\n)\n\n(152\n)\n\n(164\n)\n\n\n(233\n)\n153\n%\n\n\n(221\n)\n135\n%\n\n\nLosses on sales of securities available for sale, net\n\n—\n\n\n(7,557\n)\n\n—\n\n\n\n7,557\n\n(100\n)%\n\n\n—\n\n—\n%\n\n\nOther\n\n2,902\n\n\n12,715\n\n\n4,774\n\n\n\n(9,813\n)\n(77\n)%\n\n\n(1,872\n)\n(39\n)%\n\n\nTotal noninterest income\n\n33,528\n\n\n25,348\n\n\n19,157\n\n\n\n8,180\n\n32\n%\n\n\n14,371\n\n75\n%\n\n\nNoninterest expense:\n\n\n\n\n\n\n\n\n\n\n\nSalaries and employee benefits\n\n93,759\n\n\n65,218\n\n\n60,898\n\n\n\n28,541\n\n44\n%\n\n\n32,861\n\n54\n%\n\n\nOffice occupancy and equipment\n\n14,470\n\n\n10,109\n\n\n8,641\n\n\n\n4,361\n\n43\n%\n\n\n5,829\n\n67\n%\n\n\nData processing\n\n19,504\n\n\n17,990\n\n\n13,443\n\n\n\n1,514\n\n8\n%\n\n\n6,061\n\n45\n%\n\n\nProfessional services\n\n8,982\n\n\n4,250\n\n\n7,125\n\n\n\n4,732\n\n111\n%\n\n\n1,857\n\n26\n%\n\n\nMarketing expenses\n\n1,576\n\n\n1,910\n\n\n1,765\n\n\n\n(334\n)\n(17\n)%\n\n\n(189\n)\n(11\n)%\n\n\nFederal Deposit Insurance Corporation (\"FDIC\") insurance\n\n3,200\n\n\n4,508\n\n\n2,808\n\n\n\n(1,308\n)\n(29\n)%\n\n\n392\n\n14\n%\n\n\nAmortization of intangible assets\n\n6,210\n\n\n504\n\n\n504\n\n\n\n5,706\n\n1132\n%\n\n\n5,706\n\n1132\n%\n\n\nOther\n\n12,052\n\n\n5,380\n\n\n6,564\n\n\n\n6,672\n\n124\n%\n\n\n5,488\n\n84\n%\n\n\nTotal noninterest expense\n\n159,753\n\n\n109,869\n\n\n101,748\n\n\n\n49,884\n\n45\n%\n\n\n58,005\n\n57\n%\n\n\n(Loss) income before income tax expense (benefit)\n\n(3,353\n)\n\n38,002\n\n\n47,286\n\n\n\n(41,355\n)\n(109\n)%\n\n\n(50,639\n)\n(107\n)%\n\n\nIncome tax expense (benefit)\n\n2,835\n\n\n11,671\n\n\n(16,178\n)\n\n\n(8,836\n)\n(76\n)%\n\n\n19,013\n\n(118\n)%\n\n\nNet (loss) income from continuing operations\n$\n(6,188\n)\n$\n26,331\n\n$\n63,464\n\n\n$\n(32,519\n)\n(124\n)%\n\n$\n(69,652\n)\n(110\n)%\n\n\nNet loss from discontinued operations\n$\n—\n\n$\n—\n\n$\n(4,351\n)\n\n$\n—\n\n—\n%\n\n$\n4,351\n\n(100\n)%\n\n\nNet (loss) income\n$\n(6,188\n)\n$\n26,331\n\n$\n59,113\n\n\n$\n(32,519\n)\n(124\n)%\n\n$\n(65,301\n)\n(110\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nShare data:\n\n\n\n\n\n\n\n\n\n\n\nWeighted average common shares outstanding, basic\n\n196,700,222\n\n\n163,145,255\n\n\n162,370,469\n\n\n\n33,554,967\n\n21\n%\n\n\n34,329,753\n\n21\n%\n\n\nWeighted average common shares outstanding, diluted\n\n197,706,644\n\n\n163,499,296\n\n\n162,469,887\n\n\n\n34,207,348\n\n21\n%\n\n\n35,236,757\n\n22\n%\n\n\n(Loss) earnings per share, basic:\n\n\n\n\n\n\n\n\n\n\n\nContinuing operations\n$\n(0.03\n)\n$\n0.16\n\n$\n0.39\n\n\n$\n(0.19\n)\n(119\n)%\n\n$\n(0.42\n)\n(108\n)%\n\n\nDiscontinued operations\n$\n—\n\n$\n—\n\n$\n(0.03\n)\n\n$\n—\n\n0\n%\n\n$\n0.03\n\n(100\n)%\n\n\n(Loss) earnings per share, basic\n$\n(0.03\n)\n$\n0.16\n\n$\n0.36\n\n\n$\n(0.19\n)\n(119\n)%\n\n$\n(0.39\n)\n(108\n)%\n\n\n(Loss) earnings per share, diluted:\n\n\n\n\n\n\n\n\n\n\n\nContinuing operations\n$\n(0.03\n)\n$\n0.16\n\n$\n0.39\n\n\n$\n(0.19\n)\n(119\n)%\n\n$\n(0.42\n)\n(108\n)%\n\n\nDiscontinued operations\n$\n—\n\n$\n—\n\n$\n(0.03\n)\n\n$\n—\n\n0\n%\n\n$\n0.03\n\n(100\n)%\n\n\n(Loss) earnings per share, diluted\n$\n(0.03\n)\n$\n0.16\n\n$\n0.36\n\n\n$\n(0.19\n)\n(119\n)%\n\n$\n(0.39\n)\n(108\n)%\n\n\n\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nCONSOLIDATED STATEMENTS OF INCOME\n\n\n\n\n\n\n\n\n\n\nNine months ended\n\n\n\n\n\n(Unaudited, dollars in thousands, except per-share data)\nSep 30, 2024\nSep 30, 2023\n\nChange\n\n\n\n\n\n\n\n\n\n\nInterest and dividend income:\n\n\n\n△ $\n△ %\n\n\nInterest and fees on loans\n$\n573,319\n\n$\n483,676\n\n\n$\n89,643\n\n19\n%\n\n\nTaxable interest and dividends on securities\n\n68,518\n\n\n77,451\n\n\n\n(8,933\n)\n(12\n)%\n\n\nNon-taxable interest and dividends on securities\n\n4,320\n\n\n4,302\n\n\n\n18\n\n—\n%\n\n\nInterest on federal funds sold and other short-term investments\n\n29,848\n\n\n27,384\n\n\n\n2,464\n\n9\n%\n\n\nTotal interest and dividend income\n\n676,005\n\n\n592,813\n\n\n\n83,192\n\n14\n%\n\n\nInterest expense:\n\n\n\n\n\n\n\nInterest on deposits\n\n246,265\n\n\n158,686\n\n\n\n87,579\n\n55\n%\n\n\nInterest on borrowings\n\n1,336\n\n\n17,025\n\n\n\n(15,689\n)\n(92\n)%\n\n\nTotal interest expense\n\n247,601\n\n\n175,711\n\n\n\n71,890\n\n41\n%\n\n\nNet interest income\n\n428,404\n\n\n417,102\n\n\n\n11,302\n\n3\n%\n\n\nProvision for allowance for loan losses\n\n60,560\n\n\n14,854\n\n\n\n45,706\n\n308\n%\n\n\nNet interest income after provision for allowance for loan losses\n\n367,844\n\n\n402,248\n\n\n\n(34,404\n)\n(9\n)%\n\n\nNoninterest income:\n\n\n\n\n\n\n\nTrust and investment advisory fees\n\n28,164\n\n\n18,136\n\n\n\n10,028\n\n55\n%\n\n\nService charges on deposit accounts\n\n23,578\n\n\n21,117\n\n\n\n2,461\n\n12\n%\n\n\nDebit card processing fees\n\n10,575\n\n\n10,071\n\n\n\n504\n\n5\n%\n\n\nInterest rate swap income\n\n1,650\n\n\n2,112\n\n\n\n(462\n)\n(22\n)%\n\n\nIncome from investments held in rabbi trusts\n\n9,670\n\n\n4,336\n\n\n\n5,334\n\n123\n%\n\n\nLosses on sales of commercial and industrial loans\n\n—\n\n\n(2,651\n)\n\n\n2,651\n\n(100\n)%\n\n\nLosses on sales of mortgage loans held for sale, net\n\n(595\n)\n\n(288\n)\n\n\n(307\n)\n107\n%\n\n\nLosses on sales of securities available for sale, net\n\n(7,557\n)\n\n(333,170\n)\n\n\n325,613\n\n(98\n)%\n\n\nOther\n\n21,083\n\n\n15,845\n\n\n\n5,238\n\n33\n%\n\n\nTotal noninterest income (loss)\n\n86,568\n\n\n(264,492\n)\n\n\n351,060\n\n(133\n)%\n\n\nNoninterest expense:\n\n\n\n\n\n\n\nSalaries and employee benefits\n\n223,448\n\n\n185,264\n\n\n\n38,184\n\n21\n%\n\n\nOffice occupancy and equipment\n\n33,763\n\n\n26,797\n\n\n\n6,966\n\n26\n%\n\n\nData processing\n\n54,003\n\n\n38,555\n\n\n\n15,448\n\n40\n%\n\n\nProfessional services\n\n16,744\n\n\n13,277\n\n\n\n3,467\n\n26\n%\n\n\nMarketing expenses\n\n5,001\n\n\n4,899\n\n\n\n102\n\n2\n%\n\n\nFederal Deposit Insurance Corporation (\"FDIC\") insurance\n\n9,993\n\n\n8,388\n\n\n\n1,605\n\n19\n%\n\n\nAmortization of intangible assets\n\n7,218\n\n\n1,299\n\n\n\n5,919\n\n456\n%\n\n\nOther\n\n20,654\n\n\n19,094\n\n\n\n1,560\n\n8\n%\n\n\nTotal noninterest expense\n\n370,824\n\n\n297,573\n\n\n\n73,251\n\n25\n%\n\n\nIncome (loss) before income tax expense\n\n83,588\n\n\n(159,817\n)\n\n\n243,405\n\n(152\n)%\n\n\nIncome tax expense (benefit)\n\n24,798\n\n\n(65,619\n)\n\n\n90,417\n\n(138\n)%\n\n\nNet income (loss) from continuing operations\n\n58,790\n\n\n(94,198\n)\n\n\n152,988\n\n(162\n)%\n\n\nNet income from discontinued operations\n\n—\n\n\n7,872\n\n\n\n(7,872\n)\n(100\n)%\n\n\nNet income (loss)\n$\n58,790\n\n$\n(86,326\n)\n\n$\n145,116\n\n(168\n)%\n\n\n\n\n\n\n\n\n\n\nShare data:\n\n\n\n\n\n\n\nWeighted average common shares outstanding, basic\n\n174,398,692\n\n\n162,199,158\n\n\n\n12,199,534\n\n8\n%\n\n\nWeighted average common shares outstanding, diluted\n\n175,270,559\n\n\n162,260,503\n\n\n\n13,010,056\n\n8\n%\n\n\n\n\n\n\n\n\n\n\nEarnings (loss) per share, basic:\n\n\n\n\n\n\n\nContinuing operations\n$\n0.34\n\n$\n(0.58\n)\n\n$\n0.92\n\n(159\n)%\n\n\nDiscontinued operations\n$\n—\n\n$\n0.05\n\n\n$\n(0.05\n)\n(100\n)%\n\n\nEarnings (loss) per share, basic\n$\n0.34\n\n$\n(0.53\n)\n\n$\n0.87\n\n(164\n)%\n\n\nEarnings (loss) per share, diluted:\n\n\n\n\n\n\n\nContinuing operations\n$\n0.34\n\n$\n(0.58\n)\n\n$\n0.92\n\n(159\n)%\n\n\nDiscontinued operations\n$\n—\n\n$\n0.05\n\n\n$\n(0.05\n)\n(100\n)%\n\n\nEarnings (loss) per share, diluted\n$\n0.34\n\n$\n(0.53\n)\n\n$\n0.87\n\n(164\n)%\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nAVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS\n\n\n\n \n\n\n\nAs of and for the three months ended\n\n\n\nSep 30, 2024\n\nJun 30, 2024\n\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands)\nAvg. Balance\n\nInterest\n\nYield / Cost (5)\n\nAvg. Balance\n\nInterest\n\nYield / Cost (5)\n\nAvg. Balance\n\nInterest\n\nYield / Cost (5)\n\n\nInterest-earning assets:\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nLoans (1):\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCommercial\n$\n11,935,922\n\n$\n167,712\n\n5.59\n%\n\n$\n10,103,674\n\n$\n128,402\n\n5.11\n%\n\n$\n9,988,712\n\n$\n128,051\n\n5.09\n%\n\n\nResidential\n\n3,772,420\n\n\n40,484\n\n4.27\n%\n\n\n2,563,646\n\n\n24,313\n\n3.81\n%\n\n\n2,553,150\n\n\n22,988\n\n3.57\n%\n\n\nConsumer\n\n1,568,372\n\n\n27,026\n\n6.86\n%\n\n\n1,446,543\n\n\n23,960\n\n6.66\n%\n\n\n1,386,350\n\n\n22,227\n\n6.36\n%\n\n\nTotal loans\n\n17,276,714\n\n\n235,222\n\n5.42\n%\n\n\n14,113,863\n\n\n176,675\n\n5.03\n%\n\n\n13,928,212\n\n\n173,266\n\n4.94\n%\n\n\nTotal investment securities\n\n5,322,650\n\n\n24,259\n\n1.81\n%\n\n\n5,428,583\n\n\n24,555\n\n1.82\n%\n\n\n5,777,173\n\n\n26,009\n\n1.79\n%\n\n\nFederal funds sold and other short-term investments\n\n833,184\n\n\n11,329\n\n5.41\n%\n\n\n787,387\n\n\n10,699\n\n5.47\n%\n\n\n537,602\n\n\n7,269\n\n5.36\n%\n\n\nTotal interest-earning assets\n\n23,432,548\n\n\n270,810\n\n4.60\n%\n\n\n20,329,833\n\n\n211,929\n\n4.19\n%\n\n\n20,242,987\n\n\n206,544\n\n4.05\n%\n\n\nNon-interest-earning assets\n\n1,606,357\n\n\n\n\n\n\n912,302\n\n\n\n\n\n\n1,033,879\n\n\n\n\n\n\nTotal assets\n$\n25,038,905\n\n\n\n\n\n$\n21,242,135\n\n\n\n\n\n$\n21,276,866\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nInterest-bearing liabilities:\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nDeposits:\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSavings\n$\n1,646,532\n\n$\n1,526\n\n0.37\n%\n\n$\n1,259,573\n\n$\n42\n\n0.01\n%\n\n$\n1,441,636\n\n$\n43\n\n0.01\n%\n\n\nInterest checking\n\n4,548,231\n\n\n13,428\n\n1.17\n%\n\n\n3,739,590\n\n\n8,827\n\n0.95\n%\n\n\n3,903,062\n\n\n6,302\n\n0.64\n%\n\n\nMoney market\n\n5,631,626\n\n\n39,994\n\n2.83\n%\n\n\n4,975,843\n\n\n34,022\n\n2.75\n%\n\n\n4,836,895\n\n\n27,695\n\n2.27\n%\n\n\nTime deposits\n\n3,365,392\n\n\n40,386\n\n4.77\n%\n\n\n2,933,160\n\n\n35,582\n\n4.88\n%\n\n\n2,341,684\n\n\n25,567\n\n4.33\n%\n\n\nTotal interest-bearing deposits\n\n15,191,781\n\n\n95,334\n\n2.50\n%\n\n\n12,908,166\n\n\n78,473\n\n2.45\n%\n\n\n12,523,277\n\n\n59,607\n\n1.89\n%\n\n\nBorrowings\n\n89,398\n\n\n829\n\n3.69\n%\n\n\n49,536\n\n\n254\n\n2.06\n%\n\n\n414,252\n\n\n5,356\n\n5.13\n%\n\n\nTotal interest-bearing liabilities\n\n15,281,179\n\n\n96,163\n\n2.50\n%\n\n\n12,957,702\n\n\n78,727\n\n2.44\n%\n\n\n12,937,529\n\n\n64,963\n\n1.99\n%\n\n\nDemand deposit accounts\n\n5,666,471\n\n\n\n\n\n\n4,843,336\n\n\n\n\n\n\n5,257,704\n\n\n\n\n\n\nOther noninterest-bearing liabilities\n\n564,961\n\n\n\n\n\n\n512,996\n\n\n\n\n\n\n541,827\n\n\n\n\n\n\nTotal liabilities\n\n21,512,611\n\n\n\n\n\n\n18,314,034\n\n\n\n\n\n\n18,737,060\n\n\n\n\n\n\nShareholders' equity\n\n3,526,294\n\n\n\n\n\n\n2,928,101\n\n\n\n\n\n\n2,539,806\n\n\n\n\n\n\nTotal liabilities and shareholders' equity\n$\n25,038,905\n\n\n\n\n\n$\n21,242,135\n\n\n\n\n\n$\n21,276,866\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nNet interest income - FTE\n\n\n$\n174,647\n\n\n\n\n\n$\n133,202\n\n\n\n\n\n$\n141,581\n\n\n\n\nNet interest rate spread (2)\n\n\n\n\n2.10\n%\n\n\n\n\n\n1.75\n%\n\n\n\n\n\n2.06\n%\n\n\nNet interest-earning assets (3)\n$\n8,151,369\n\n\n\n\n\n$\n7,372,131\n\n\n\n\n\n$\n7,305,458\n\n\n\n\n\n\nNet interest margin - FTE (4)\n\n\n\n\n2.97\n%\n\n\n\n\n\n2.64\n%\n\n\n\n\n\n2.77\n%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Includes non-accrual loans.\n\n\n(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.\n\n\n(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.\n\n\n(4) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.\n\n\n(5) Presented on an annualized basis.\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nAVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS\n\n\n\n \n\n\n\nAs of and for the nine months ended\n\n\n\nSep 30, 2024\n\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands)\nAvg. Balance\n\nInterest\n\nYield / Cost (5)\n\nAvg. Balance\n\nInterest\n\nYield / Cost (5)\n\n\nInterest-earning assets:\n\n\n\n\n\n\n\n\n\n\n\n\n\nLoans (1):\n\n\n\n\n\n\n\n\n\n\n\n\n\nCommercial\n$\n10,692,519\n\n$\n422,955\n\n5.28\n%\n\n$\n9,892,337\n\n$\n365,298\n\n4.94\n%\n\n\nResidential\n\n2,971,889\n\n\n88,791\n\n3.99\n%\n\n\n2,526,980\n\n\n66,593\n\n3.52\n%\n\n\nConsumer\n\n1,478,664\n\n\n74,224\n\n6.71\n%\n\n\n1,371,761\n\n\n63,333\n\n6.17\n%\n\n\nTotal loans\n\n15,143,072\n\n\n585,970\n\n5.17\n%\n\n\n13,791,078\n\n\n495,224\n\n4.80\n%\n\n\nTotal investment securities\n\n5,441,498\n\n\n74,015\n\n1.82\n%\n\n\n6,442,141\n\n\n82,903\n\n1.72\n%\n\n\nFederal funds sold and other short-term investments\n\n732,738\n\n\n29,848\n\n5.44\n%\n\n\n721,025\n\n\n27,384\n\n5.08\n%\n\n\nTotal interest-earning assets\n\n21,317,308\n\n\n689,833\n\n4.32\n%\n\n\n20,954,244\n\n\n605,511\n\n3.86\n%\n\n\nNon-interest-earning assets\n\n1,157,155\n\n\n\n\n\n\n952,378\n\n\n\n\n\n\nTotal assets\n$\n22,474,463\n\n\n\n\n\n$\n21,906,622\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nInterest-bearing liabilities:\n\n\n\n\n\n\n\n\n\n\n\n\n\nDeposits:\n\n\n\n\n\n\n\n\n\n\n\n\n\nSavings\n$\n1,402,050\n\n$\n1,609\n\n0.15\n%\n\n$\n1,570,803\n\n$\n172\n\n0.01\n%\n\n\nInterest checking\n\n4,012,872\n\n\n30,442\n\n1.01\n%\n\n\n4,177,492\n\n\n17,155\n\n0.55\n%\n\n\nMoney market\n\n5,118,366\n\n\n104,512\n\n2.73\n%\n\n\n4,979,820\n\n\n74,612\n\n2.00\n%\n\n\nTime deposits\n\n3,029,125\n\n\n109,702\n\n4.84\n%\n\n\n2,184,631\n\n\n66,747\n\n4.08\n%\n\n\nTotal interest-bearing deposits\n\n13,562,413\n\n\n246,265\n\n2.43\n%\n\n\n12,912,746\n\n\n158,686\n\n1.64\n%\n\n\nBorrowings\n\n63,334\n\n\n1,336\n\n2.82\n%\n\n\n478,347\n\n\n17,025\n\n4.76\n%\n\n\nTotal interest-bearing liabilities\n\n13,625,747\n\n\n247,601\n\n2.43\n%\n\n\n13,391,093\n\n\n175,711\n\n1.75\n%\n\n\nDemand deposit accounts\n\n5,168,176\n\n\n\n\n\n\n5,469,593\n\n\n\n\n\n\nOther noninterest-bearing liabilities\n\n537,418\n\n\n\n\n\n\n512,546\n\n\n\n\n\n\nTotal liabilities\n\n19,331,341\n\n\n\n\n\n\n19,373,232\n\n\n\n\n\n\nShareholders' equity\n\n3,143,122\n\n\n\n\n\n\n2,533,390\n\n\n\n\n\n\nTotal liabilities and shareholders' equity\n$\n22,474,463\n\n\n\n\n\n$\n21,906,622\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nNet interest income - FTE\n\n\n$\n442,232\n\n\n\n\n\n$\n429,800\n\n\n\n\nNet interest rate spread (2)\n\n\n\n\n1.89\n%\n\n\n\n\n\n2.11\n%\n\n\nNet interest-earning assets (3)\n$\n7,691,561\n\n\n\n\n\n$\n7,563,151\n\n\n\n\n\n\nNet interest margin - FTE (4)\n\n\n\n\n2.77\n%\n\n\n\n\n\n2.74\n%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Includes non-accrual loans.\n\n\n(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.\n\n\n(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.\n\n\n(4) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.\n\n\n(5) Presented on an annualized basis.\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nASSET QUALITY - NON-PERFORMING ASSETS (1)\n\n\n\nAs of\n\n\n\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands)\n\n\n\n\n\n\n\nNon-accrual loans:\n\n\n\n\n\n\n\nCommercial\n$\n105,099\n\n$\n26,139\n\n$\n40,986\n\n$\n35,107\n\n$\n31,703\n\n\n\nResidential\n\n10,450\n\n\n6,789\n\n\n6,697\n\n\n8,725\n\n\n8,075\n\n\n\nConsumer\n\n8,954\n\n\n6,843\n\n\n9,490\n\n\n8,725\n\n\n7,687\n\n\n\nTotal non-accrual loans\n\n124,503\n\n\n39,771\n\n\n57,173\n\n\n52,557\n\n\n47,465\n\n\n\nTotal accruing loans past due 90 days or more:\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nTotal non-performing loans\n\n124,503\n\n\n39,771\n\n\n57,173\n\n\n52,557\n\n\n47,465\n\n\n\nOther real estate owned\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nOther non-performing assets:\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nTotal non-performing assets (1)\n$\n124,503\n\n$\n39,771\n\n$\n57,173\n\n$\n52,557\n\n$\n47,465\n\n\n\nTotal non-performing loans to total loans\n\n0.70\n%\n\n0.28\n%\n\n0.41\n%\n\n0.38\n%\n\n0.34\n%\n\n\nTotal non-performing assets to total assets\n\n0.49\n%\n\n0.19\n%\n\n0.27\n%\n\n0.25\n%\n\n0.22\n%\n\n\n\n\n\n\n\n\n\n\n(1) Non-performing assets are comprised of NPLs, other real estate owned (\"OREO\"), and non-performing securities. NPLs consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest. OREO consists of real estate properties, which primarily serve as collateral to secure the Company’s loans, that it controls due to foreclosure or acceptance of a deed in lieu of foreclosure.\n\n\n\n\n\n\n\n \n\n\nEASTERN BANKSHARES, INC.\n\n\nASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES)\n\n\n\n \n\n\n\nThree months ended\n\n\n\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands)\n\n\n\n\n\n\n\nAverage total loans\n$\n17,274,903\n\n$\n14,113,343\n\n$\n14,013,714\n\n$\n13,961,061\n\n$\n13,926,194\n\n\n\nAllowance for loan losses, beginning of the period\n\n156,146\n\n\n149,190\n\n\n148,993\n\n\n155,146\n\n\n147,955\n\n\n\nCharged-off loans:\n\n\n\n\n\n\n\nCommercial and industrial\n\n—\n\n\n—\n\n\n—\n\n\n2\n\n\n11\n\n\n\nCommercial real estate\n\n4,520\n\n\n—\n\n\n7,250\n\n\n8,008\n\n\n—\n\n\n\nCommercial construction\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nBusiness banking\n\n675\n\n\n1,002\n\n\n102\n\n\n3,745\n\n\n303\n\n\n\nResidential real estate\n\n18\n\n\n—\n\n\n10\n\n\n—\n\n\n—\n\n\n\nConsumer home equity\n\n—\n\n\n32\n\n\n2\n\n\n—\n\n\n—\n\n\n\nOther consumer\n\n561\n\n\n658\n\n\n651\n\n\n536\n\n\n731\n\n\n\nTotal charged-off loans\n\n5,774\n\n\n1,692\n\n\n8,015\n\n\n12,291\n\n\n1,045\n\n\n\nRecoveries on loans previously charged-off:\n\n\n\n\n\n\n\nCommercial and industrial\n\n7\n\n\n56\n\n\n25\n\n\n11\n\n\n120\n\n\n\nCommercial real estate\n\n64\n\n\n2,011\n\n\n132\n\n\n190\n\n\n2\n\n\n\nCommercial construction\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nBusiness banking\n\n319\n\n\n199\n\n\n410\n\n\n573\n\n\n609\n\n\n\nResidential real estate\n\n61\n\n\n27\n\n\n31\n\n\n34\n\n\n30\n\n\n\nConsumer home equity\n\n19\n\n\n91\n\n\n—\n\n\n1\n\n\n39\n\n\n\nOther consumer\n\n166\n\n\n138\n\n\n163\n\n\n131\n\n\n108\n\n\n\nTotal recoveries\n\n636\n\n\n2,522\n\n\n761\n\n\n940\n\n\n908\n\n\n\nNet loans charged-off (recovered):\n\n\n\n\n\n\n\nCommercial and industrial\n\n(7\n)\n\n(56\n)\n\n(25\n)\n\n(9\n)\n\n(109\n)\n\n\nCommercial real estate\n\n4,456\n\n\n(2,011\n)\n\n7,118\n\n\n7,818\n\n\n(2\n)\n\n\nCommercial construction\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nBusiness banking\n\n356\n\n\n803\n\n\n(308\n)\n\n3,172\n\n\n(306\n)\n\n\nResidential real estate\n\n(43\n)\n\n(27\n)\n\n(21\n)\n\n(34\n)\n\n(30\n)\n\n\nConsumer home equity\n\n(19\n)\n\n(59\n)\n\n2\n\n\n(1\n)\n\n(39\n)\n\n\nOther consumer\n\n395\n\n\n520\n\n\n488\n\n\n405\n\n\n623\n\n\n\nTotal net loans charged-off (recovered)\n\n5,138\n\n\n(830\n)\n\n7,254\n\n\n11,351\n\n\n137\n\n\n\nInitial allowance established for Cambridge's PCD loans\n\n55,830\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nProvision for allowance for loan losses (2)\n\n46,983\n\n\n6,126\n\n\n7,451\n\n\n5,198\n\n\n7,328\n\n\n\nTotal allowance for loan losses, end of period\n$\n253,821\n\n$\n156,146\n\n$\n149,190\n\n$\n148,993\n\n$\n155,146\n\n\n\nNet charge-offs (recoveries) to average total loans outstanding during this period (1)\n\n0.12\n%\n\n(0.02\n)%\n\n0.21\n%\n\n0.32\n%\n\n0.00\n%\n\n\nAllowance for loan losses as a percent of total loans\n\n1.43\n%\n\n1.11\n%\n\n1.06\n%\n\n1.07\n%\n\n1.12\n%\n\n\nAllowance for loan losses as a percent of nonperforming loans\n\n203.87\n%\n\n392.61\n%\n\n260.94\n%\n\n283.49\n%\n\n326.86\n%\n\n\n\n\n\n\n\n\n\n\n(1) Presented on an annualized basis.\n\n\n(2) Includes the initial provision on non-PCD loans acquired from Cambridge.\n\n\n\n\n\n\n\n \n\n\nAPPENDIX A: Reconciliation of Non-GAAP Earnings Metrics (1)\n\n\n\n\n\nFor information on non-GAAP financial measures, please see the section titled \"Non-GAAP Financial Measures.\"\n\n\n\n \n\n\n\nAs of and for the Three Months Ended\n\n\n(Unaudited, dollars in thousands, except per-share data)\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\n\n\n\n\n\n\n\n\nNet (loss) income from continuing operations (GAAP)\n$\n(6,188\n)\n$\n26,331\n\n$\n38,647\n\n$\n31,509\n\n$\n63,464\n\n\n\nAdd:\n\n\n\n\n\n\n\nProvision for non-PCD acquired loans\n\n40,899\n\n\n—\n\n\n—\n\n\n—\n\n\n—\n\n\n\nNoninterest income components:\n\n\n\n\n\n\n\n(Income) losses from investments held in rabbi trusts\n\n(3,591\n)\n\n(1,761\n)\n\n(4,318\n)\n\n(4,969\n)\n\n1,523\n\n\n\nLosses on sales of securities available for sale, net\n\n—\n\n\n7,557\n\n\n—\n\n\n—\n\n\n—\n\n\n\nLosses (gains) on sales of other assets\n\n2,970\n\n\n2\n\n\n—\n\n\n—\n\n\n(2\n)\n\n\nNoninterest expense components:\n\n\n\n\n\n\n\nRabbi trust employee benefit expense (income)\n\n1,326\n\n\n930\n\n\n1,746\n\n\n1,740\n\n\n(586\n)\n\n\nMerger and acquisition expenses\n\n27,577\n\n\n3,684\n\n\n1,816\n\n\n1,865\n\n\n3,630\n\n\n\nTotal impact of non-GAAP adjustments\n\n69,181\n\n\n10,412\n\n\n(756\n)\n\n(1,364\n)\n\n4,565\n\n\n\nLess: net tax benefit (expense) associated with non-GAAP adjustments (2)\n\n13,328\n\n\n224\n\n\n(190\n)\n\n13,270\n\n\n15,944\n\n\n\nNon-GAAP adjustments, net of tax\n$\n55,853\n\n$\n10,188\n\n$\n(566\n)\n$\n(14,634\n)\n$\n(11,379\n)\n\n\nOperating net income (non-GAAP)\n$\n49,665\n\n$\n36,519\n\n$\n38,081\n\n$\n16,875\n\n$\n52,085\n\n\n\n\n\n\n\n\n\n\n\nWeighted average common shares outstanding during the period:\n\n\n\n\n\n\n\nBasic\n\n196,700,222\n\n\n163,145,255\n\n\n162,863,540\n\n\n162,571,066\n\n\n162,370,469\n\n\n\nDiluted\n\n197,706,644\n\n\n163,499,296\n\n\n163,188,410\n\n\n162,724,398\n\n\n162,469,887\n\n\n\n\n\n\n\n\n\n\n\n(Loss) earnings per share from continuing operations, basic:\n$\n(0.03\n)\n$\n0.16\n\n$\n0.24\n\n$\n0.19\n\n$\n0.39\n\n\n\n(Loss) earnings per share from continuing operations, diluted:\n$\n(0.03\n)\n$\n0.16\n\n$\n0.24\n\n$\n0.19\n\n$\n0.39\n\n\n\n\n\n\n\n\n\n\n\nOperating earnings per share, basic (non-GAAP)\n$\n0.25\n\n$\n0.22\n\n$\n0.23\n\n$\n0.10\n\n$\n0.32\n\n\n\nOperating earnings per share, diluted (non-GAAP)\n$\n0.25\n\n$\n0.22\n\n$\n0.23\n\n$\n0.10\n\n$\n0.32\n\n\n\n\n\n\n\n\n\n\n\nReturn on average assets (3)\n\n(0.10\n)%\n\n0.50\n%\n\n0.74\n%\n\n0.59\n%\n\n1.18\n%\n\n\nAdd:\n\n\n\n\n\n\n\nProvision for non-PCD acquired loans (3)\n\n0.65\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\n(Income) losses from investments held in rabbi trusts (3)\n\n(0.06\n)%\n\n(0.03\n)%\n\n(0.08\n)%\n\n(0.09\n)%\n\n0.03\n%\n\n\nLosses on sales of securities available for sale, net (3)\n\n0.00\n%\n\n0.14\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nLosses (gains) on sales of other assets (3)\n\n0.05\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nRabbi trust employee benefit expense (income) (3)\n\n0.02\n%\n\n0.02\n%\n\n0.03\n%\n\n0.03\n%\n\n(0.01\n)%\n\n\nMerger and acquisition expenses (3)\n\n0.44\n%\n\n0.07\n%\n\n0.03\n%\n\n0.03\n%\n\n0.07\n%\n\n\nLess: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)\n\n0.21\n%\n\n0.00\n%\n\n0.00\n%\n\n0.25\n%\n\n0.30\n%\n\n\nOperating return on average assets (non-GAAP) (3)\n\n0.79\n%\n\n0.70\n%\n\n0.72\n%\n\n0.31\n%\n\n0.97\n%\n\n\n\n\n\n\n\n\n\n\nReturn on average shareholders' equity (3)\n\n(0.70\n)%\n\n3.62\n%\n\n5.23\n%\n\n4.66\n%\n\n9.91\n%\n\n\nAdd:\n\n\n\n\n\n\n\nProvision for non-PCD acquired loans (3)\n\n4.61\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\n(Income) losses from investments held in rabbi trusts (3)\n\n(0.41\n)%\n\n(0.24\n)%\n\n(0.58\n)%\n\n(0.73\n)%\n\n0.24\n%\n\n\nLosses on sales of securities available for sale, net (3)\n\n0.00\n%\n\n1.04\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nLosses (gains) on sales of other assets (3)\n\n0.34\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nRabbi trust employee benefit expense (income) (3)\n\n0.15\n%\n\n0.13\n%\n\n0.24\n%\n\n0.26\n%\n\n(0.09\n)%\n\n\nMerger and acquisition expenses (3)\n\n3.11\n%\n\n0.51\n%\n\n0.25\n%\n\n0.28\n%\n\n0.57\n%\n\n\nLess: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)\n\n1.50\n%\n\n0.03\n%\n\n(0.03\n)%\n\n1.96\n%\n\n2.49\n%\n\n\nOperating return on average shareholders' equity (non-GAAP) (3)\n\n5.60\n%\n\n5.03\n%\n\n5.17\n%\n\n2.51\n%\n\n8.14\n%\n\n\n\n\n\n\n\n\n\n\nTangible net income\n\n\n\n\n\n\n\nNet (loss) income (GAAP)\n\n(6,188\n)\n\n26,331\n\n\n38,647\n\n\n31,509\n\n\n63,464\n\n\n\nAdd: Amortization of intangible assets\n\n6,210\n\n\n504\n\n\n504\n\n\n505\n\n\n504\n\n\n\nLess: Tax effect of amortization of intangible assets (4)\n\n1,720\n\n\n140\n\n\n140\n\n\n140\n\n\n142\n\n\n\nTangible net (loss) income (non-GAAP) (5)\n\n(1,698\n)\n\n26,695\n\n\n39,011\n\n\n31,874\n\n\n63,826\n\n\n\n\n\n\n\n\n\n\n\nAverage tangible shareholders' equity:\n\n\n\n\n\n\n\nAverage total shareholders' equity (GAAP)\n$\n3,526,294\n\n$\n2,928,101\n\n$\n2,970,759\n\n$\n2,682,600\n\n$\n2,539,806\n\n\n\nLess: Average goodwill and other intangibles\n\n974,546\n\n\n565,523\n\n\n566,027\n\n\n597,234\n\n\n658,591\n\n\n\nAverage tangible shareholders' equity (non-GAAP)\n$\n2,551,748\n\n$\n2,362,578\n\n$\n2,404,732\n\n$\n2,085,366\n\n$\n1,881,215\n\n\n\n\n\n\n\n\n\n\n\nReturn on average tangible shareholders' equity (non-GAAP) (3) (5)\n\n(0.26\n)%\n\n4.54\n%\n\n6.52\n%\n\n6.06\n%\n\n13.46\n%\n\n\nAdd:\n\n\n\n\n\n\n\nProvision for non-PCD acquired loans (3)\n\n6.38\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\n(Income) losses from investments held in rabbi trusts (3)\n\n(0.56\n)%\n\n(0.30\n)%\n\n(0.72\n)%\n\n(0.95\n)%\n\n0.32\n%\n\n\nLosses on sales of securities available for sale, net (3)\n\n0.00\n%\n\n1.29\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nLosses (gains) on sales of other assets (3)\n\n0.46\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n0.00\n%\n\n\nRabbi trust employee benefit expense (income) (3)\n\n0.21\n%\n\n0.16\n%\n\n0.29\n%\n\n0.33\n%\n\n(0.12\n)%\n\n\nMerger and acquisition expenses (3)\n\n4.30\n%\n\n0.63\n%\n\n0.30\n%\n\n0.35\n%\n\n0.77\n%\n\n\nLess: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)\n\n2.08\n%\n\n0.04\n%\n\n(0.03\n)%\n\n2.52\n%\n\n3.36\n%\n\n\nOperating return on average tangible shareholders' equity (non-GAAP) (3) (5)\n\n8.45\n%\n\n6.28\n%\n\n6.42\n%\n\n3.27\n%\n\n11.07\n%\n\n\n\n\n\n\n\n\n\n\n(1) Average assets, average goodwill and other intangibles, and average tangible shareholders' equity components for the three months ended Sep 30, 2023 and Dec 31, 2023 presented in this section include discontinued operations.\n\n\n(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 $17.4 million, as it was determined at that time that it was not more-likely-than-not that the entirety of the deferred tax asset related to the loss on such securities would be realized. Included in that $17.4 million was $2.8 million in expected lost state tax benefits. Following the execution of the sale of our insurance agency business in October 2023 and the resulting capital gain, coupled with tax planning strategies, a state tax benefit of $13.6 million was realized on the security sale losses.\n\n\n(3) Presented on an annualized basis.\n\n\n(4) The tax effect of amortization of intangible assets is calculated using the Company's combined statutory tax rate of 27.7% for the three months ended Dec 31, 2023 and the following periods, and 28.23% for the three months ended Sep 30, 2023.\n\n\n(5) The tangible net income (loss), return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.\n\n\n\n\n\n\n\n \n\n\nAPPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses\n\n\n\n\n\nFor information on non-GAAP financial measures, please see the section titled \"Non-GAAP Financial Measures.\"\n\n\n\n \n\n\n\nThree Months Ended\n\n\n\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands)\n\n\n\n\n\n\n\nNet interest income (GAAP)\n$\n169,855\n\n$\n128,649\n\n$\n129,900\n\n$\n133,307\n\n$\n137,205\n\n\n\nAdd:\n\n\n\n\n\n\n\nTax-equivalent adjustment (non-GAAP) (1)\n\n4,792\n\n\n4,553\n\n\n4,483\n\n\n4,483\n\n\n4,376\n\n\n\nFully-taxable equivalent net interest income (non-GAAP)\n$\n174,647\n\n$\n133,202\n\n$\n134,383\n\n$\n137,790\n\n$\n141,581\n\n\n\n\n\n\n\n\n\n\n\nNoninterest income (GAAP)\n$\n33,528\n\n$\n25,348\n\n$\n27,692\n\n$\n26,739\n\n$\n19,157\n\n\n\nLess:\n\n\n\n\n\n\n\nIncome (losses) from investments held in rabbi trusts\n\n3,591\n\n\n1,761\n\n\n4,318\n\n\n4,969\n\n\n(1,523\n)\n\n\nLosses on sales of securities available for sale, net\n\n—\n\n\n(7,557\n)\n\n—\n\n\n—\n\n\n—\n\n\n\n(Losses) gains on sales of other assets\n\n(2,970\n)\n\n(2\n)\n\n—\n\n\n—\n\n\n2\n\n\n\nNoninterest income on an operating basis (non-GAAP)\n$\n32,907\n\n$\n31,146\n\n$\n23,374\n\n$\n21,770\n\n$\n20,678\n\n\n\n\n\n\n\n\n\n\n\nNoninterest expense (GAAP)\n$\n159,753\n\n$\n109,869\n\n$\n101,202\n\n$\n121,029\n\n$\n101,748\n\n\n\nLess:\n\n\n\n\n\n\n\nRabbi trust employee benefit expense (income)\n\n1,326\n\n\n930\n\n\n1,746\n\n\n1,740\n\n\n(586\n)\n\n\nMerger and acquisition expenses\n\n27,577\n\n\n3,684\n\n\n1,816\n\n\n1,865\n\n\n3,630\n\n\n\nNoninterest expense on an operating basis (non-GAAP)\n$\n130,850\n\n$\n105,255\n\n$\n97,640\n\n$\n117,424\n\n$\n98,704\n\n\n\nLess: Amortization of intangible assets\n$\n6,210\n\n$\n504\n\n$\n504\n\n$\n505\n\n$\n504\n\n\n\nNoninterest expense for calculating the operating efficiency ratio (non-GAAP) (2)\n$\n124,640\n\n$\n104,751\n\n$\n97,136\n\n$\n116,919\n\n$\n98,200\n\n\n\n\n\n\n\n\n\n\n\nTotal revenue (GAAP)\n$\n203,383\n\n$\n153,997\n\n$\n157,592\n\n$\n160,046\n\n$\n156,362\n\n\n\nTotal operating revenue (non-GAAP)\n$\n207,554\n\n$\n164,348\n\n$\n157,757\n\n$\n159,560\n\n$\n162,259\n\n\n\n\n\n\n\n\n\n\n\nEfficiency ratio (GAAP)\n\n78.5\n%\n\n71.3\n%\n\n64.2\n%\n\n75.6\n%\n\n65.1\n%\n\n\nOperating efficiency ratio (non-GAAP) (2)\n\n60.1\n%\n\n63.7\n%\n\n61.6\n%\n\n73.3\n%\n\n60.5\n%\n\n\n\n\n\n\n\n\n\n\n(1) Interest income on tax-exempt loans and investment securities has been adjusted to a FTE basis using a marginal tax rate of 21.8%, 21.7%, 21.7%, 21.9%, and 21.7% for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.\n\n\n(2) The operating efficiency ratio excludes, in addition to the adjustments made to operating net income, the amortization of intangible assets. This measure is used by the Company when analyzing corporate performance and the Company believes that investors may find it useful.\n\n\n\n\n\n\n\n \n\n\nAPPENDIX C: Reconciliation of Non-GAAP Capital Metrics\n\n\n\n\n\nFor information on non-GAAP financial measures, please see the section titled \"Non-GAAP Financial Measures.\"\n\n\n\n \n\n\n\nAs of\n\n\n\nSep 30, 2024\nJun 30, 2024\nMar 31, 2024\nDec 31, 2023\nSep 30, 2023\n\n\n(Unaudited, dollars in thousands, except per-share data)\n\n\n\n\n\n\n\nTangible shareholders' equity:\n\n\n\n\n\n\n\nTotal shareholders' equity (GAAP)\n$\n3,671,138\n\n$\n2,967,473\n\n$\n2,952,831\n\n$\n2,974,855\n\n$\n2,446,553\n\n\n\nLess: Goodwill and other intangibles (1)\n\n1,057,509\n\n\n565,196\n\n\n565,701\n\n\n566,205\n\n\n657,824\n\n\n\nTangible shareholders' equity (non-GAAP)\n\n2,613,629\n\n\n2,402,277\n\n\n2,387,130\n\n\n2,408,650\n\n\n1,788,729\n\n\n\n\n\n\n\n\n\n\n\nTangible assets:\n\n\n\n\n\n\n\nTotal assets (GAAP)\n\n25,507,187\n\n\n21,044,169\n\n\n21,174,804\n\n\n21,133,278\n\n\n21,146,292\n\n\n\nLess: Goodwill and other intangibles (1)\n\n1,057,509\n\n\n565,196\n\n\n565,701\n\n\n566,205\n\n\n657,824\n\n\n\nTangible assets (non-GAAP)\n$\n24,449,678\n\n$\n20,478,973\n\n$\n20,609,103\n\n$\n20,567,073\n\n$\n20,488,468\n\n\n\n\n\n\n\n\n\n\n\nShareholders' equity to assets ratio (GAAP)\n\n14.39\n%\n\n14.10\n%\n\n13.95\n%\n\n14.08\n%\n\n11.57\n%\n\n\nTangible shareholders' equity to tangible assets ratio (non-GAAP)\n\n10.69\n%\n\n11.73\n%\n\n11.58\n%\n\n11.71\n%\n\n8.73\n%\n\n\n\n\n\n\n\n\n\n\nCommon shares outstanding\n\n214,802,602\n\n\n176,687,829\n\n\n176,631,477\n\n\n176,426,993\n\n\n176,376,675\n\n\n\n\n\n\n\n\n\n\n\nBook value per share (GAAP)\n$\n17.09\n\n$\n16.80\n\n$\n16.72\n\n$\n16.86\n\n$\n13.87\n\n\n\nTangible book value per share (non-GAAP)\n$\n12.17\n\n$\n13.60\n\n$\n13.51\n\n$\n13.65\n\n$\n10.14\n\n\n\n\n\n\n\n\n\n\n\n(1) Includes goodwill and other intangible assets of discontinued operations as of September 30, 2023.\n\n\n\n\n\n\n\n \n\n\nAPPENDIX D: Merger-related Charges\n\n\n\n \n\n\n\nAs of and for the Three Months Ended\n\n\n(Unaudited, dollars in thousands)\nSep 30, 2024\n\nJun 30, 2024\n\nMar 31, 2024\n\nDec 31, 2023\n\nSep 30, 2023\n\n\nNoninterest income components:\n\n\n\n\n\n\n\n\n\n\n\nOther (1)\n$\n(2,969\n)\n\n$\n—\n\n$\n—\n\n$\n—\n\n$\n—\n\n\nTotal noninterest income\n$\n(2,969\n)\n\n$\n—\n\n$\n—\n\n$\n—\n\n$\n—\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nNoninterest expense components:\n\n\n\n\n\n\n\n\n\n\n\nSalaries and employee benefits\n$\n13,147\n\n\n$\n383\n\n$\n3\n\n$\n5\n\n$\n—\n\n\nOffice occupancy and equipment\n\n2,630\n\n\n\n11\n\n\n6\n\n\n2\n\n\n—\n\n\nData processing\n\n1,384\n\n\n\n2,249\n\n\n865\n\n\n1,357\n\n\n—\n\n\nProfessional services\n\n5,490\n\n\n\n944\n\n\n787\n\n\n450\n\n\n3,630\n\n\nOther\n\n4,926\n\n\n\n97\n\n\n155\n\n\n51\n\n\n—\n\n\nTotal noninterest expense\n$\n27,577\n\n\n$\n3,684\n\n$\n1,816\n\n$\n1,865\n\n$\n3,630\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTotal merger-related charges\n$\n30,546\n\n\n$\n3,684\n\n$\n1,816\n\n$\n1,865\n\n$\n3,630\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Disposal of acquired fixed assets.\n\n\n\n\n\n\n\n\n\n\n\n \n\n\nAPPENDIX E: Organic Loan & Deposit Growth\n\n\n\n\n\n\n\n \n\n\n\nAs of\n\n\n\nOrganic Growth From:\n\n\n\nSep 30, 2024\n\nJun 30, 2024\n\nCambridge Trust Acquired Balance (1)\n\nJun 30, 2024\n\n\n(Unaudited, dollars in thousands)\n\n\n\n\n\n\n△ $\n\n△ %\n\n\nLoans:\n\n\n\n\n\n\n\n\n\n\n\nCommercial and industrial\n3,340,029\n\n3,084,186\n\n339,581\n\n(83,738\n)\n\n(2.4\n)%\n\n\nCommercial real estate\n7,174,861\n\n5,440,411\n\n1,692,705\n\n41,745\n\n\n0.6\n%\n\n\nCommercial construction\n513,519\n\n447,157\n\n141,420\n\n(75,058\n)\n\n(12.8\n)%\n\n\nBusiness banking\n1,321,179\n\n1,108,163\n\n120,454\n\n92,562\n\n\n7.5\n%\n\n\nTotal commercial loans\n12,349,588\n\n10,079,917\n\n2,294,160\n\n(24,489\n)\n\n(0.2\n)%\n\n\nResidential real estate\n4,080,736\n\n2,562,808\n\n1,528,534\n\n(10,606\n)\n\n(0.3\n)%\n\n\nConsumer home equity\n1,361,971\n\n1,254,105\n\n87,785\n\n20,081\n\n\n1.5\n%\n\n\nOther consumer\n271,831\n\n248,690\n\n24,196\n\n(1,055\n)\n\n(0.4\n)%\n\n\nTotal loans\n18,064,126\n\n14,145,520\n\n3,934,675\n\n(16,069\n)\n\n(0.1\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nDeposits:\n\n\n\n\n\n\n\n\n\n\n\nDemand\n5,856,171\n\n4,808,938\n\n979,895\n\n67,338\n\n\n1.2\n%\n\n\nInterest checking accounts\n4,562,226\n\n3,532,811\n\n1,149,097\n\n(119,682\n)\n\n(2.6\n)%\n\n\nSavings accounts\n1,681,093\n\n1,238,009\n\n471,340\n\n(28,256\n)\n\n(1.7\n)%\n\n\nMoney market investment\n5,572,277\n\n5,014,900\n\n854,614\n\n(297,237\n)\n\n(5.1\n)%\n\n\nCertificates of deposit\n3,545,087\n\n2,943,151\n\n418,771\n\n183,165\n\n\n5.4\n%\n\n\nTotal deposits\n21,216,854\n\n17,537,809\n\n3,873,717\n\n(194,672\n)\n\n(0.9\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) For loans, represents the unpaid principal balance of Cambridge acquired loans at time of merger. For deposits, represents the book value of Cambridge acquired deposits at time of merger, except for time deposits which are shown at fair value.\n\n\n\n\n\n\n\n\n\n \n\n\nAPPENDIX F: Tangible Shareholders’ Equity Roll Forward Analysis\n\n\n\n\n\nFor information on non-GAAP financial measures, please see the section titled \"Non-GAAP Financial Measures.\"\n\n\n\n\n\n \n\n\n\nAs of\n\nChange from\n\n\n\nSep 30, 2024\nJun 30, 2024\n\nJun 30, 2024\n\n\n(Unaudited, dollars in thousands, except per-share data)\n\n\n\n\n\n\nCommon stock\n$\n2,150\n\n$\n1,770\n\n\n$\n380\n\n\n\nAdditional paid in capital\n\n2,246,134\n\n\n1,673,722\n\n\n\n572,412\n\n\n\nUnallocated ESOP common stock\n\n(129,077\n)\n\n(130,295\n)\n\n\n1,218\n\n\n\nRetained earnings\n\n2,048,042\n\n\n2,076,566\n\n\n\n(28,524\n)\n\n\nAOCI, net of tax - available for sale securities\n\n(490,698\n)\n\n(612,196\n)\n\n\n121,498\n\n\n\nAOCI, net of tax - pension\n\n5,914\n\n\n6,430\n\n\n\n(516\n)\n\n\nAOCI, net of tax - cash flow hedge\n\n(11,327\n)\n\n(48,524\n)\n\n\n37,197\n\n\n\nTotal shareholders' equity:\n$\n3,671,138\n\n$\n2,967,473\n\n\n$\n703,665\n\n\n\nLess: Goodwill and other intangibles\n\n1,057,509\n\n\n565,196\n\n\n\n492,313\n\n\n\nTangible shareholders' equity (non-GAAP)\n$\n2,613,629\n\n$\n2,402,277\n\n\n$\n211,352\n\n\n\n\n\n\n\n\n\n\nCommon shares outstanding\n\n214,802,602\n\n\n176,687,829\n\n\n\n38,114,773\n\n\n\n\n\n\n\n\n\n\nPer share:\n\n\n\n\n\n\nCommon stock\n$\n0.01\n\n$\n0.01\n\n\n$\n—\n\n\n\nAdditional paid in capital\n\n10.46\n\n\n9.47\n\n\n\n0.98\n\n\n\nUnallocated ESOP common stock\n\n(0.60\n)\n\n(0.74\n)\n\n\n0.14\n\n\n\nRetained earnings\n\n9.53\n\n\n11.75\n\n\n\n(2.22\n)\n\n\nAOCI, net of tax - available for sale securities\n\n(2.28\n)\n\n(3.46\n)\n\n\n1.18\n\n\n\nAOCI, net of tax - pension\n\n0.03\n\n\n0.04\n\n\n\n(0.01\n)\n\n\nAOCI, net of tax - cash flow hedge\n\n(0.05\n)\n\n(0.27\n)\n\n\n0.22\n\n\n\nTotal shareholders' equity:\n$\n17.09\n\n$\n16.80\n\n\n$\n0.30\n\n\n\nLess: Goodwill and other intangibles\n\n4.92\n\n\n3.20\n\n\n\n1.72\n\n\n\nTangible shareholders' equity (non-GAAP)\n$\n12.17\n\n$\n13.60\n\n\n$\n(1.43\n)\n\n\n\n\n\n\n\n\n\n\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241024681054/en/\nContacts\nInvestor Contact\nJillian Belliveau Eastern Bankshares, Inc.InvestorRelations@easternbank.com 781-598-7920\nMedia Contact\nAndrea Goodman Eastern Banka.goodman@easternbank.com 781-598-7847","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478169512"}