Eastern Bankshares, Inc. Reports Second Quarter 2024 Financial Results

~ Company Announces Authorization of Share Repurchase Program ~

Eastern Bankshares, Inc. (the “Company,” or together with its subsidiaries, “Eastern”) (NASDAQ Global Select Market: EBC), the stock holding company of Eastern Bank, today announced its 2024 second quarter financial results, the declaration of a quarterly cash dividend, and the authorization of a share repurchase program.

On July 12, 2024, the Company completed its merger (“the merger”) with Cambridge Bancorp (“Cambridge”) and surpassed $25 billion in assets. The merger also added approximately $4.8 billion in assets under management and administration (“AUM/A”), 11 net new branch locations, and 4 net new wealth management offices to the Company. The Company plans to provide an update on the financial impact of the merger with the third quarter earnings release.

“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 $26.3 million, or $0.16 per diluted share. Operating net income* of $36.5 million, or $0.22 per diluted share.
The net interest margin on a fully tax equivalent (“FTE”) basis* declined modestly to 2.64% as compared to 2.68% in the prior quarter.
Total loans increased $56.8 million, or 1.6% on an annualized basis, from the prior quarter, to $14.1 billion.
Deposits declined $129 million, or 2.9% on an annualized basis, driven by the early withdrawal of a $100 million omnibus deposit contract for which the bank received an early termination payment of $7.8 million. Excluding this early withdrawal, deposits were relatively stable from the prior quarter.
Average deposits increased $192.9 million in the second quarter, or 1.1%.
Eastern sold securities totaling $85 million in the quarter at a loss of $7.6 million.
Non-performing loans (“NPLs”) reduced from $57.2 million to $39.8 million or from 0.41% to 0.28% 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 of 0.21% in the prior quarter, both on an annualized basis.

BALANCE SHEET

Total assets were $21.0 billion at June 30, 2024, representing a decrease of $130.6 million, or 0.6% from March 31, 2024.

Cash and equivalents increased $11.8 million from the prior quarter to $750.8 million.
Total securities decreased $196.9 million, or 4.2%, from the prior quarter, to $4.5 billion, due to the sale of approximately $85 million in available for sale securities (“AFS securities”) and principal runoff.
Loans totaled $14.1 billion, representing an increase of $56.8 million, or 0.4%, from the prior quarter, driven primarily by consumer loan growth of $51.3 million.
Deposits totaled $17.5 billion, representing a decrease of $128.9 million, or 0.7%, from the prior quarter, driven primarily by the early withdrawal of a $100 million omnibus deposit contract, which was inherited from Eastern’s acquisition of Century Bank and Trust Company in 2021. Average deposits increased $192.9 million in the second quarter, or 1.1%. The Company had no brokered deposits at June 30, 2024 and March 31, 2024.
Federal Home Loan Bank advances decreased $0.2 million from the prior quarter to $17.4 million.
Shareholders’ equity was $3.0 billion, representing an increase of $14.6 million from the prior quarter, driven primarily by an increase in retained earnings.
At June 30, 2024, book value per share was $16.80 and tangible book value per share* was $13.60. Please refer to Appendix D to this press release for a roll-forward of tangible shareholders’ equity*.

NET INTEREST INCOME

Net interest income was $128.6 million for the second quarter of 2024, compared to $129.9 million for the prior quarter, representing a decrease of $1.3 million.

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 $25.3 million for the second quarter of 2024, compared to $27.7 million for the prior quarter, representing a decrease of $2.3 million. Noninterest income on an operating basis* was $31.1 million for the second quarter of 2024, compared to $23.4 million for the prior quarter, representing an increase of $7.8 million.

Service charges on deposit accounts increased $0.4 million from the prior quarter to $7.9 million.
Trust and investment advisory fees increased $0.2 million from the prior quarter to $6.7 million.
Debit card processing fees increased $0.3 million from the prior quarter to $3.5 million.
Loan-level interest rate swap income decreased $0.2 million from the prior quarter to $0.4 million.
Income from investments held in rabbi trust accounts decreased $2.6 million from the prior quarter to $1.8 million. The quarter over quarter change was driven by investment performance.
Losses on sales of mortgage loans held for sale were $0.2 million, compared to losses of $0.1 million in the prior quarter.
Losses on sales of AFS securities were $7.6 million due to the sale of approximately $85 million of AFS securities. There were no losses on sales of AFS securities in the prior quarter.
Other noninterest income increased $7.2 million in the second quarter to $12.7 million. The increase was driven primarily by the early termination payment of $7.8 million received from the aforementioned omnibus deposit early withdrawal.

NONINTEREST EXPENSE

Noninterest expense was $109.9 million for the second quarter of 2024, compared to $101.2 million in the prior quarter, representing an increase of $8.7 million. Noninterest expense on an operating basis* for the second quarter of 2024 was $105.3 million, compared to $97.6 million in the prior quarter, representing an increase of $7.6 million.

Salaries and employee benefits expense was $65.2 million, an increase of $0.7 million from the prior quarter.
Office occupancy and equipment expense was $10.1 million, an increase of $0.9 million from the prior quarter, due primarily to the move to the Company’s new corporate headquarters.
Data processing expense was $18.0 million, an increase of $1.5 million from the prior quarter, due primarily to an increase of $1.4 million in merger related data processing expenses from the prior quarter.
Professional services expense was $4.3 million in the second quarter, an increase of $0.7 million from the prior quarter.
Marketing expense was $1.9 million, an increase of $0.4 million from the prior quarter, due primarily to higher advertising expenses.
Federal Deposit Insurance Corporation (“FDIC”) insurance expense was $4.5 million, an increase of $2.2 million from the prior quarter, primarily due to an increase of $1.9 million to the FDIC special assessment first incurred in the fourth quarter of 2023.
Other noninterest expense was $5.4 million, an increase of $2.2 million from the prior quarter, due primarily to a lower level of provision release for off balance sheet exposures of $1.5 million.

Please refer to Appendix E for additional detail on M&A expenses*.

ASSET QUALITY

Non-performing loans (“NPLs”) totaled $39.8 million at June 30, 2024 compared to $57.2 million at the end of the prior quarter. The reduction was driven primarily by the resolution of two NPLs in the second quarter.

During the second quarter of 2024, the Company recorded total net recoveries of $0.8 million, or 0.02% of average total loans on an annualized basis, compared to total net charge-offs of $7.3 million, or 0.21% of average total loans on an annualized basis, in the prior quarter, respectively. The net recoveries were driven by the partial recoveries of $2.0 million on the aforementioned two NPLs resolved in the second quarter.

The Company recorded a provision for loan losses totaling $6.1 million in the second quarter of 2024 driven primarily by an increase in individual loan reserves on commercial real estate loans in the second quarter. The allowance for loan losses was $156.1 million at June 30, 2024, or 1.11% of total loans, compared to $149.2 million, or 1.06% of total loans, at March 31, 2024.

DIVIDENDS AND SHARE REPURCHASES

The Company’s Board of Directors has declared a quarterly cash dividend of $0.11 per common share. The dividend will be payable on September 16, 2024 to shareholders of record as of the close of business on September 3, 2024.

The Company’s Board of Directors has authorized a share repurchase program of up to 10.8 million shares, representing 5% of the Company’s outstanding shares of common stock. The repurchase program, which is limited to $200 million through July 31, 2025, may be modified or terminated by the Board of Directors of the Company at any time.

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 U.S. and reference conference ID 26729. 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 made available on demand on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the stock holding company for Eastern Bank. Founded in 1818, Boston-based Eastern Bank is Greater Boston’s leading local bank and the largest bank-owned independent investment advisor in Massachusetts with approximately 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut. 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 and Private Banking divisions, 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.

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 United States (“GAAP”) in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements).

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 U.S. Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov.

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

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

(32,176

)

(31

Short-term investments

677,958

667,526

768,436

10,432

(90,478

)

(12

Cash and cash equivalents

750,848

739,018

873,502

11,830

(122,654

)

(14

Available for sale ("AFS") securities

4,097,842

4,287,585

4,520,293

(189,743

)

(422,451

)

Held to maturity ("HTM") securities

436,712

443,833

465,061

(7,121

)

(28,349

)

Total securities

4,534,554

4,731,418

4,985,354

(196,864

)

(450,800

)

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

)

Commercial real estate

5,440,411

5,519,505

5,242,290

(79,094

)

198,121

Commercial construction

447,157

388,024

371,367

59,133

75,790

Business banking

1,108,163

1,100,637

1,089,548

7,526

18,615

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

52,103

Consumer home equity

1,254,105

1,217,141

1,198,290

36,964

55,815

Other consumer

248,690

234,398

207,702

14,292

40,988

Total loans

14,145,520

14,088,747

13,961,878

56,773

—

183,642

Allowance for loan losses

(156,146

)

(149,190

)

(147,955

)

(6,956

)

(8,191

)

Unamortized prem./disc. and def. fees

(35,601

)

(32,947

)

(15,202

)

(2,654

)

(20,399

)

134

Net loans

13,953,773

13,906,610

13,798,721

47,163

—

155,052

Federal Home Loan Bank stock, at cost

5,879

26,894

—

(21,015

)

(78

Premises and equipment

60,910

59,790

59,421

1,120

1,489

Bank-owned life insurance

166,710

165,734

162,718

976

3,992

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

(75,996

)

(22

Prepaid expenses

183,245

187,211

157,675

(3,966

)

25,570

Other assets

545,682

538,895

476,074

6,787

69,608

Assets of discontinued operations

—

121,026

—

(121,026

)

(100

Total assets

21,044,169

21,174,804

21,583,493

(130,635

)

(539,324

)

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Demand

4,808,938

4,952,487

5,346,693

(143,549

)

(537,755

)

(10

Interest checking accounts

3,532,811

3,739,631

4,173,079

(206,820

)

(640,268

)

(15

Savings accounts

1,238,009

1,291,260

1,495,540

(53,251

)

(257,531

)

(17

Money market investment

5,014,900

4,770,058

4,814,412

244,842

200,488

Certificates of deposit

2,943,151

2,913,297

2,351,248

29,854

591,903

Total deposits

17,537,809

17,666,733

18,180,972

(128,924

)

(643,163

)

Borrowed funds:

Federal Home Loan Bank advances

17,415

17,576

314,021

(161

)

(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

(2,840

)

(20

Total borrowed funds

48,940

52,754

351,211

(3,814

)

(302,271

)

(86

Other liabilities

489,947

502,486

488,007

(12,539

)

1,940

—

Liabilities of discontinued operations

—

36,531

—

(36,531

)

(100

Total liabilities

18,076,696

18,221,973

19,056,721

(145,277

)

(980,025

)

Shareholders' equity:

Common shares

1,770

1,769

1,766

—

Additional paid-in capital

1,673,722

1,669,133

1,656,750

4,589

—

16,972

Unallocated common shares held by the employee stock ownership plan ("ESOP")

(130,295

)

(131,512

)

(135,232

)

1,217

4,937

Retained earnings

2,076,566

2,068,315

1,704,470

8,251

—

372,096

Accumulated other comprehensive income ("AOCI"), net of tax

(654,290

)

(654,874

)

(700,982

)

584

—

46,692

Total shareholders' equity

2,967,473

2,952,831

2,526,772

14,642

—

440,701

Total liabilities and shareholders' equity

21,044,169

21,174,804

21,583,493

(130,635

)

(539,324

)

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

11,652

Taxable interest and dividends on securities

22,724

23,373

24,618

(649

)

(1,894

)

Non-taxable interest and dividends on securities

1,439

1,437

1,434

—

Interest on federal funds sold and other short-term investments

10,699

7,820

14,851

2,879

(4,152

)

(28

Total interest and dividend income

207,376

202,611

201,765

4,765

5,611

Interest expense:

Interest on deposits

78,473

72,458

56,146

6,015

22,327

Interest on borrowings

254

253

4,031

—

(3,777

)

(94

Total interest expense

78,727

72,711

60,177

6,016

18,550

Net interest income

128,649

129,900

141,588

(1,251

)

(12,939

)

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

—

(11,564

)

Noninterest income:

Service charges on deposit accounts

7,930

7,508

7,242

422

688

Trust and investment advisory fees

6,711

6,544

6,131

167

580

Debit card processing fees

3,522

3,247

3,513

275

—

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

)

(856

)

Noninterest expense:

Salaries and employee benefits

65,218

64,471

62,183

747

3,035

Office occupancy and equipment

10,109

9,184

9,067

925

1,042

Data processing

17,990

16,509

12,814

1,481

5,176

Professional services

4,250

3,512

3,025

738

1,225

Marketing expenses

1,910

1,515

2,111

395

(201

)

(10

Federal Deposit Insurance Corporation ("FDIC") insurance

4,508

2,285

3,034

2,223

1,474

Amortization of intangible assets

504

—

Other

5,380

3,222

7,196

2,158

(1,816

)

(25

Total noninterest expense

109,869

101,202

99,934

8,667

9,935

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

(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

913,019

Weighted average common shares outstanding, diluted

163,499,296

163,188,410

162,246,675

310,886

1,252,621

Earnings per share, basic:

Continuing operations

0.16

0.24

0.27

(0.08

)

(33

(0.11

)

(41

Discontinued operations

—

0.03

—

(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

—

(0.03

)

(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

Taxable interest and dividends on securities

46,097

53,260

(7,163

)

(13

Non-taxable interest and dividends on securities

2,876

2,868

—

Interest on federal funds sold and other short-term investments

18,519

20,115

(1,596

)

Total interest and dividend income

409,987

390,645

19,342

Interest expense:

Interest on deposits

150,931

99,079

51,852

Interest on borrowings

507

11,669

(11,162

)

(96

Total interest expense

151,438

110,748

40,690

Net interest income

258,549

279,897

(21,348

)

Provision for allowance for loan losses

13,577

7,526

6,051

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

Trust and investment advisory fees

13,255

11,901

1,354

Debit card processing fees

6,769

6,683

Interest rate swap income

1,085

417

668

160

Income from investments held in rabbi trusts

6,079

5,859

220

Losses on sales of mortgage loans held for sale, net

(210

)

(124

)

(86

)

Losses on sales of securities available for sale, net

(7,557

)

(333,170

)

325,613

(98

Other

18,181

11,071

7,110

Total noninterest income (loss)

53,040

(283,649

)

336,689

(119

Noninterest expense:

Salaries and employee benefits

129,689

124,366

5,323

Office occupancy and equipment

19,293

18,156

1,137

Data processing

34,499

25,112

9,387

Professional services

7,762

6,152

1,610

Marketing expenses

3,425

3,134

291

Federal Deposit Insurance Corporation ("FDIC") insurance

6,793

5,580

1,213

Amortization of intangible assets

1,008

795

213

Other

8,602

12,530

(3,928

)

(31

Total noninterest expense

211,071

195,825

15,246

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

Weighted average common shares outstanding, diluted

163,390,421

162,136,984

1,253,437

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

0.01

1,297,360

0.01

1,552,702

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

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.

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

—

Commercial real estate

—

7,250

8,008

—

Commercial construction

—

Business banking

1,002

102

3,745

303

254

Residential real estate

—

Consumer home equity

—

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

120

Commercial real estate

2,011

132

190

Commercial construction

—

Business banking

199

410

573

609

204

Residential real estate

Consumer home equity

—

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

)

(109

)

(26

)

Commercial real estate

(2,011

)

7,118

7,818

)

Commercial construction

—

Business banking

803

(308

)

3,172

(306

)

Residential real estate

(27

)

(21

)

(34

)

(30

)

(18

)

Consumer home equity

(59

)

(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

—

)

—

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

Losses (gains) on sales of other assets (3)

0.00

Rabbi trust employee benefit expense (income) (3)

0.02

0.03

(0.01

0.02

Merger and acquisition expenses (3)

0.07

0.03

0.07

0.00

Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)

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

Losses (gains) on sales of other assets (3)

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

Losses (gains) on sales of other assets (3)

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 $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.

(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

4,376

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

)

—

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 21.7%, 21.7%, 21.9%, 21.7%, and 21.8% for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

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

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

(Unaudited, dollars in thousands, except per-share data)

Common stock

1,770

1,769

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

—

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

—

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

—

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

—

Office occupancy and equipment

—

Data processing

2,249

865

1,357

—

Professional services

944

787

450

3,630

—

Other

155

—

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

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