Eastern Bankshares, Inc. Reports Fourth Quarter 2022 Financial Results

Company Declares Quarterly Cash Dividend

Eastern Bankshares, Inc. (the “Company,” or together with its affiliates and subsidiaries, “Eastern”) (NASDAQ Global Select Market: EBC), the stock holding company of Eastern Bank, today announced its 2022 fourth quarter financial results and the declaration of a quarterly cash dividend. Net income for the fourth quarter of 2022 was $42.3 million, or $0.26 per diluted share, compared to net income of $54.8 million, or $0.33 per diluted share, reported for the third quarter of 2022. Operating net income* for the fourth quarter of 2022 was $49.9 million, or $0.31 per diluted share, compared to $55.7 million, or $0.34 per diluted share, reported for the prior quarter.

“I’d like to thank my 2,100 colleagues at Eastern for all of their good work in making 2022 such a successful year for the Company” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. “Together, we posted record net income for 2022 of $199.8 million, 29% higher than 2021. As always, this bottom line result is the product of a number of significant achievements, including the completion of the integration of Century Bank, record commercial loan and home equity originations, outstanding asset quality, the acquisition of two insurance agencies, the continued upgrade of our technology platforms, as well as many other notable accomplishments. All of this, along with the strength of the underlying franchise, is a testament to their hard work and tremendous commitment."

HIGHLIGHTS FOR THE FOURTH QUARTER OF 2022

  • Net income of $42.3 million, or $0.26 per diluted share, and operating net income* of $49.9 million, or $0.31 per diluted share, for the fourth quarter of 2022.
  • Net interest income of $150.0 million for the fourth quarter of 2022 was 1% lower than the prior quarter as the increase in interest income was more than offset by the increase in interest expense.
  • The net interest margin on a fully tax equivalent (“FTE”) basis* of 2.81% for the fourth quarter was 6 basis points lower than the prior quarter.
  • Core loan growth, excluding residential loans purchased from Embrace Home Loans, was 11.8% on an annualized basis. Commercial loan growth was 13.2% on an annualized basis.
  • Asset quality remains strong, with annualized net charge-offs of just 0.01% of average total loans and non-performing loans of $38.6 million, or just 0.28% of total loans.

Please refer to Appendices A and B to this press release for reconciliations of operating net income* and fully-taxable equivalent net interest income*, respectively.

BALANCE SHEET

Total assets were $22.6 billion at December 31, 2022, representing an increase of $603.9 million, or 3%, from September 30, 2022.

  • Total securities decreased $159.2 million, or 2%, from the prior quarter, to $7.2 billion, primarily due to principal runoff and security sales, partially offset by a reduction in the unrealized losses on the portfolio.
  • Total loans were $13.6 billion, representing an increase of $671.6 million, or 5%, from the prior quarter. The increase was driven by strong loan growth in all major categories. Commercial loans grew $313.0 million, residential loans grew $342.0 million, and consumer loans grew $16.6 million, reflecting growth of 13%, 64%, and 5%, respectively, on an annualized basis. Residential loans at December 31, 2022 and September 30, 2022 included purchased loans from Embrace Home Loans totaling $366.7 million and $77.7 million excluding purchase premiums, respectively.
  • Deposits totaled $19.0 billion, representing an increase of $241.0 million, or 1%, from the prior quarter. Deposit levels were supported by brokered certificates of deposit which totaled $928.6 million at year end. On a quarterly average basis, deposits decreased $418.3 million from the prior quarter.
  • Borrowed funds increased $318.1 million from the prior quarter to $740.8 million to provide funding for strong loan growth in the fourth quarter.
  • Shareholders’ equity was $2.5 billion, representing an increase of $55.6 million from the prior quarter driven primarily by increases in accumulated other comprehensive income and retained earnings, partially offset by share repurchases. Please refer to Appendix D to this press release for a roll forward of tangible shareholders’ equity*.
  • At December 31, 2022, book value per share was $14.03 and tangible book value per share* was $10.28.

Please refer to Appendix C to this press release for a reconciliation of book value per share and tangible book value per share*.

NET INTEREST INCOME

Net interest income was $150.0 million for the fourth quarter of 2022, compared to $152.2 million in the prior quarter, representing a decrease of $2.2 million.

  • The decrease in net interest income on a consecutive quarter basis was primarily due to a decrease in the net interest margin, as increases in earning asset yields were more than offset by increased funding costs. This was partially offset by an increase in average interest-earning asset balances of $170.3 million from the prior quarter, attributable primarily to loan growth.
  • The net interest margin on a FTE basis* was 2.81% for the fourth quarter, representing a 6 basis point decrease from the prior quarter, as funding costs increased faster than asset yields.
  • Total interest-earning asset yields increased 29 basis points from the prior quarter to 3.27%, due primarily to increased loan yields as a result of higher short-term interest rates during the quarter.
  • Total interest-bearing funding costs increased 59 basis points from the prior quarter to 77 basis points, due to core deposit pricing increases and increases in brokered deposits and borrowings during the quarter.

Please refer to Appendix B to this press release for a reconciliation of operating revenues and expenses* and of fully-taxable equivalent net interest income*.

NONINTEREST INCOME

Noninterest income was $44.5 million for the fourth quarter of 2022, compared to $43.4 million for the prior quarter, representing an increase of $1.2 million. Noninterest income on an operating basis* was $42.0 million for the fourth quarter of 2022, compared to $45.3 million for the prior quarter, a decrease of $3.3 million.

  • Insurance commissions decreased $1.7 million to $22.0 million in the fourth quarter, compared to $23.8 million in the prior quarter. Compared to the comparable prior year quarter, insurance commissions increased $1.1 million, or 5%.
  • Service charges on deposit accounts increased $0.1 million on a consecutive quarter basis to $6.8 million.
  • Trust and investment advisory fees decreased $0.2 million on a consecutive quarter basis to $5.6 million.
  • Debit card processing fees were unchanged from the prior quarter at $3.2 million.
  • Loan-level interest rate swap income decreased $1.6 million to a loss of $0.1 million in the fourth quarter, compared to income of $1.6 million in the prior quarter. The decrease was driven primarily by a decrease in the fair value of such interest rate swap transactions.
  • Market performance drove gains on investments held in rabbi trust accounts totaling $3.2 million in the fourth quarter compared to losses of $2.2 million in the prior quarter.
  • Realized losses on sales of available for sale securities were $0.7 million in the fourth quarter compared to $0.2 million in the prior quarter.
  • Other noninterest income decreased $0.3 million in the fourth quarter to $4.3 million.

Please refer to Appendix B to this press release for a reconciliation of operating revenues and expenses*.

NONINTEREST EXPENSE

Noninterest expense was $132.8 million for the fourth quarter of 2022, compared to $116.8 million in the prior quarter, representing an increase of $15.9 million. Noninterest expense on an operating basis* for the fourth quarter of 2022 was $119.6 million, compared to $117.4 million in the prior quarter, an increase of $2.2 million.

  • Salaries and employee benefits expense was $77.6 million in the fourth quarter, representing a decrease of $0.5 million from the prior quarter.
  • Office occupancy and equipment expense was $9.6 million in the fourth quarter, a decrease of $0.1 million from the prior quarter.
  • Data processing expenses were $14.3 million in the fourth quarter, an increase of $1.0 million from the prior quarter, due primarily to higher software services and support expense.
  • Professional services expense was $4.6 million in the fourth quarter, a decrease of $0.2 million from the prior quarter.
  • Marketing expense was $3.1 million in the fourth quarter, an increase of $0.9 million from the prior quarter, due primarily to higher advertising expense during the quarter.
  • Loan expenses were $0.6 million in the fourth quarter, a decrease of $1.6 million from the prior quarter, due in part to a decrease in legal and appraisal expense.
  • Other noninterest expense was $20.4 million in the fourth quarter, an increase of $16.4 million from the prior quarter, due primarily to a previously disclosed Defined Benefit Plan settlement accounting charge of $12.0 million, as well as an increase in the provision for credit losses on off-balance sheet credit exposure.

Please refer to Appendix B to this press release for a reconciliation of operating revenues and expenses*.

ASSET QUALITY

The allowance for loan losses was $142.2 million at December 31, 2022, or 1.05% of total loans, compared to $131.7 million or 1.02% of total loans at September 30, 2022. The Company recorded a provision for loan losses totaling $10.9 million in the fourth quarter of 2022, of which $7.2 million was due to loan growth.

Non-performing loans totaled $38.6 million at December 31, 2022 compared to $34.0 million at the end of the prior quarter. During the fourth quarter of 2022, the Company recorded total net charge-offs of $0.3 million, or 0.01% of average total loans on an annualized basis, compared to $0.3 million or 0.01% of average total loans in the prior quarter, respectively.

DIVIDENDS AND SHARE REPURCHASES

The Company’s Board of Directors has declared a quarterly cash dividend of $0.10 per common share. The dividend will be payable on March 15, 2023 to shareholders of record as of the close of business on March 3, 2023.

The Company repurchased 1,547,934 shares of its common stock during the fourth quarter of 2022 at a weighted average price of $19.91 excluding commissions, for an aggregate purchase price of $30.8 million.

As announced in September of 2022, the Company received regulatory non-objection for its second share repurchase program of up to 8,900,000 shares, representing approximately 5% of its shares of common stock then outstanding. The repurchase program, which is limited to $200 million through August 31, 2023, may be modified or terminated by the Board of Directors of the Company at any time. At December 31, 2022, there were 6,989,750 shares available for repurchase and $161.8 million in total market value remaining under the repurchase authorization.

CONFERENCE CALL AND PRESENTATION INFORMATION

A conference call and webcast covering Eastern’s fourth quarter 2022 earnings will be held on Friday, January 27, 2023 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (888) 396-8049 from within the U.S. and reference conference ID 15857557. 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 has more than 120 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of December 31, 2022, Eastern Bank had approximately $23 billion in total assets. Eastern provides banking, investment and insurance products and services for consumers and businesses of all sizes, including through its Eastern Wealth Management division and its Eastern Insurance Group LLC subsidiary. Eastern takes pride in its outspoken advocacy and community support that includes $240 million in charitable giving since 1994. An inclusive company, Eastern employs approximately 2,100 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.

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), the operating efficiency ratio, and the ratio of noninterest income to total revenue on an operating basis. 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, and (viii) the non-cash pension settlement charge recognized related to the Defined Benefit Plan. 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, 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-D for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements.

Certain factors that could cause actual results to differ materially from expected results include developments in the Company’s market relating to the COVID-19 pandemic, including the severity and duration of the associated economic slowdown; 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 and mix or costs of sources of funding; risks that revenue or expense synergies or the other expected benefits of the Company’s merger with Century Bank in November 2021 may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; adverse national or regional economic conditions or conditions within the securities markets; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiary Eastern Bank are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the Company’s ability to successfully implement its risk mitigation strategies; and asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; and the failure of the Company to execute all of its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the 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

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)

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

 

 

 

 

 

 

Earnings data

 

 

 

 

 

Net interest income

$

149,994

 

$

152,179

 

$

137,757

 

$

128,124

 

$

122,437

 

Noninterest income

 

44,516

 

 

43,353

 

 

41,877

 

 

46,415

 

 

49,001

 

Total revenue

 

194,510

 

 

195,532

 

 

179,634

 

 

174,539

 

 

171,438

 

Noninterest expense

 

132,757

 

 

116,840

 

 

111,139

 

 

108,866

 

 

143,602

 

Pre-tax, pre-provision income

 

61,753

 

 

78,692

 

 

68,495

 

 

65,673

 

 

27,836

 

Provision for (release of) allowance for loan losses

 

10,880

 

 

6,480

 

 

1,050

 

 

(485

)

 

(4,318

)

Pre-tax income

 

50,873

 

 

72,212

 

 

67,445

 

 

66,158

 

 

32,154

 

Net income

 

42,294

 

 

54,777

 

 

51,172

 

 

51,516

 

 

35,087

 

Operating net income (non-GAAP)

 

49,912

 

 

55,742

 

 

52,518

 

 

55,107

 

 

44,860

 

 

 

 

 

 

 

Per-share data

 

 

 

 

 

Earnings per share, basic

$

0.26

 

$

0.33

 

$

0.31

 

$

0.30

 

$

0.20

 

Earnings per share, diluted

$

0.26

 

$

0.33

 

$

0.31

 

$

0.30

 

$

0.20

 

Operating earnings per share, basic (non-GAAP)

$

0.31

 

$

0.34

 

$

0.32

 

$

0.32

 

$

0.26

 

Operating earnings per share, diluted (non-GAAP)

$

0.31

 

$

0.34

 

$

0.32

 

$

0.32

 

$

0.26

 

Book value per share

$

14.03

 

$

13.59

 

$

15.17

 

$

16.40

 

$

18.28

 

Tangible book value per share (non-GAAP)

$

10.28

 

$

9.87

 

$

11.52

 

$

12.83

 

$

14.80

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

Return on average assets (1)

 

0.75

%

 

0.97

%

 

0.92

%

 

0.90

%

 

0.67

%

Operating return on average assets (non-GAAP) (1)

 

0.88

%

 

0.97

%

 

0.94

%

 

0.96

%

 

0.86

%

Return on average shareholders' equity (1)

 

6.93

%

 

7.83

%

 

7.16

%

 

6.38

%

 

4.07

%

Operating return on average shareholders' equity (1)

 

8.17

%

 

7.98

%

 

7.34

%

 

6.82

%

 

5.19

%

Return on average tangible shareholders' equity (non-GAAP) (1)

 

9.54

%

 

10.25

%

 

9.28

%

 

7.96

%

 

4.80

%

Operating return on average tangible shareholders' equity (non-GAAP) (1)

 

11.26

%

 

10.44

%

 

9.53

%

 

8.53

%

 

6.14

%

Net interest margin (FTE) (1)

 

2.81

%

 

2.87

%

 

2.63

%

 

2.42

%

 

2.54

%

Cost of deposits (1)

 

0.37

%

 

0.10

%

 

0.06

%

 

0.07

%

 

0.06

%

Fee income ratio

 

22.89

%

 

22.17

%

 

23.31

%

 

26.59

%

 

28.58

%

Efficiency ratio

 

68.25

%

 

59.75

%

 

61.87

%

 

62.37

%

 

83.76

%

Operating efficiency ratio (non-GAAP)

 

61.11

%

 

58.38

%

 

60.61

%

 

60.39

%

 

65.21

%

 

 

 

 

 

 

Balance Sheet (end of period)

 

 

 

 

 

Total assets

$

22,646,858

 

$

22,042,933

 

$

22,350,848

 

$

22,836,072

 

$

23,512,128

 

Total loans

 

13,575,531

 

 

12,903,954

 

 

12,398,694

 

 

12,182,203

 

 

12,281,510

 

Total deposits

 

18,974,359

 

 

18,733,381

 

 

19,163,801

 

 

19,392,816

 

 

19,628,311

 

Total loans / total deposits

 

72

%

 

69

%

 

65

%

 

63

%

 

63

%

 

 

 

 

 

 

Asset quality

 

 

 

 

 

Allowance for loan losses ("ALLL") (2)

$

142,211

 

$

131,663

 

$

125,531

 

$

124,166

 

$

97,787

 

ALLL / total nonperforming loans ("NPLs")

 

368.38

%

 

387.77

%

 

209.64

%

 

367.13

%

 

279.53

%

Total NPLs / total loans

 

0.28

%

 

0.26

%

 

0.48

%

 

0.28

%

 

0.29

%

Net charge-offs (recoveries) ("NCOs") / average total loans (1)

 

0.01

%

 

0.01

%

 

(0.01

)%

 

0.01

%

 

0.05

%

 

 

 

 

 

 

Capital adequacy

 

 

 

 

 

Shareholders' equity / assets

 

10.91

%

 

10.96

%

 

12.16

%

 

13.17

%

 

14.49

%

Tangible shareholders' equity / tangible assets (non-GAAP)

 

8.24

%

 

8.20

%

 

9.52

%

 

10.61

%

 

12.06

%

 

 

 

 

 

 

(1) Presented on an annualized basis.

(2) The Company adopted ASU 2016-13 on January 1, 2022 using the modified retrospective approach. Accordingly, at March 31, 2022 and thereafter, the allowance for loan losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses” and ASC 310, “Receivables,” as amended. At December 31, 2021 and prior, the allowance for loan losses was determined in accordance with ASC 450, “Contingencies” and ASC 310, “Receivables.”

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

As of

 

Dec 31, 2022 change from

(Unaudited, dollars in thousands)

Dec 31, 2022

Sep 30, 2022

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2021

ASSETS

 

 

 

 

△ $

△ %

 

△ $

△ %

Cash and due from banks

$

106,040

 

$

102,776

 

$

144,634

 

 

$

3,264

 

3

%

 

$

(38,594

)

(27

)%

Short-term investments

 

63,465

 

 

55,661

 

 

1,087,158

 

 

 

7,804

 

14

%

 

 

(1,023,693

)

(94

)%

Cash and cash equivalents

 

169,505

 

 

158,437

 

 

1,231,792

 

 

 

11,068

 

7

%

 

 

(1,062,287

)

(86

)%

Available for sale ("AFS") securities (1)

 

6,690,778

 

 

6,844,615

 

 

8,511,224

 

 

 

(153,837

)

(2

)%

 

 

(1,820,446

)

(21

)%

Held to maturity ("HTM") securities (1)

 

476,647

 

 

481,963

 

 

 

 

 

(5,316

)

(1

)%

 

 

476,647

 

%

Total securities

 

7,167,425

 

 

7,326,578

 

 

8,511,224

 

 

 

(159,153

)

(2

)%

 

 

(1,343,799

)

(16

)%

Loans held for sale

 

4,543

 

 

951

 

 

1,206

 

 

 

3,592

 

378

%

 

 

3,337

 

277

%

Loans:

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

3,150,946

 

 

3,023,729

 

 

2,960,527

 

 

 

127,217

 

4

%

 

 

190,419

 

6

%

Commercial real estate

 

5,155,323

 

 

4,985,654

 

 

4,522,513

 

 

 

169,669

 

3

%

 

 

632,810

 

14

%

Commercial construction

 

336,276

 

 

314,193

 

 

222,328

 

 

 

22,083

 

7

%

 

 

113,948

 

51

%

Business banking

 

1,090,492

 

 

1,096,436

 

 

1,334,694

 

 

 

(5,944

)

(1

)%

 

 

(244,202

)

(18

)%

Total commercial loans

 

9,733,037

 

 

9,420,012

 

 

9,040,062

 

 

 

313,025

 

3

%

 

 

692,975

 

8

%

Residential real estate

 

2,460,849

 

 

2,118,852

 

 

1,926,810

 

 

 

341,997

 

16

%

 

 

534,039

 

28

%

Consumer home equity

 

1,187,547

 

 

1,168,476

 

 

1,100,153

 

 

 

19,071

 

2

%

 

 

87,394

 

8

%

Other consumer

 

194,098

 

 

196,614

 

 

214,485

 

 

 

(2,516

)

(1

)%

 

 

(20,387

)

(10

)%

Total loans

 

13,575,531

 

 

12,903,954

 

 

12,281,510

 

 

 

671,577

 

5

%

 

 

1,294,021

 

11

%

Allowance for loan losses

 

(142,211

)

 

(131,663

)

 

(97,787

)

 

 

(10,548

)

8

%

 

 

(44,424

)

45

%

Unamortized prem./disc. and def. fees

 

(13,003

)

 

(19,349

)

 

(26,442

)

 

 

6,346

 

(33

)%

 

 

13,439

 

(51

)%

Net loans

 

13,420,317

 

 

12,752,942

 

 

12,157,281

 

 

 

667,375

 

5

%

 

 

1,263,036

 

10

%

Federal Home Loan Bank stock, at cost

 

41,363

 

 

18,714

 

 

10,904

 

 

 

22,649

 

121

%

 

 

30,459

 

279

%

Premises and equipment

 

62,656

 

 

63,261

 

 

80,984

 

 

 

(605

)

(1

)%

 

 

(18,328

)

(23

)%

Bank-owned life insurance

 

160,790

 

 

159,838

 

 

157,091

 

 

 

952

 

1

%

 

 

3,699

 

2

%

Goodwill and other intangibles, net

 

661,126

 

 

662,222

 

 

649,703

 

 

 

(1,096

)

%

 

 

11,423

 

2

%

Deferred income taxes, net

 

331,648

 

 

342,550

 

 

76,535

 

 

 

(10,902

)

(3

)%

 

 

255,113

 

333

%

Prepaid expenses

 

165,900

 

 

180,742

 

 

179,330

 

 

 

(14,842

)

(8

)%

 

 

(13,430

)

(7

)%

Other assets

 

461,585

 

 

376,698

 

 

456,078

 

 

 

84,887

 

23

%

 

 

5,507

 

1

%

Total assets

$

22,646,858

 

$

22,042,933

 

$

23,512,128

 

 

$

603,925

 

3

%

 

$

(865,270

)

(4

)%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Demand

$

6,240,637

 

$

6,582,122

 

$

7,020,864

 

 

$

(341,485

)

(5

)%

 

$

(780,227

)

(11

)%

Interest checking accounts

 

4,568,122

 

 

5,047,018

 

 

4,478,566

 

 

 

(478,896

)

(9

)%

 

 

89,556

 

2

%

Savings accounts

 

1,831,123

 

 

1,990,188

 

 

2,077,495

 

 

 

(159,065

)

(8

)%

 

 

(246,372

)

(12

)%

Money market investment

 

4,710,095

 

 

4,757,477

 

 

5,525,005

 

 

 

(47,382

)

(1

)%

 

 

(814,910

)

(15

)%

Certificates of deposit

 

1,624,382

 

 

356,576

 

 

526,381

 

 

 

1,267,806

 

356

%

 

 

1,098,001

 

209

%

Total deposits

 

18,974,359

 

 

18,733,381

 

 

19,628,311

 

 

 

240,978

 

1

%

 

 

(653,952

)

(3

)%

Borrowed funds:

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

704,084

 

 

384,215

 

 

14,020

 

 

 

319,869

 

83

%

 

 

690,064

 

4922

%

Escrow deposits of borrowers

 

22,314

 

 

21,853

 

 

20,258

 

 

 

461

 

2

%

 

 

2,056

 

10

%

Interest rate swap collateral funds

 

14,430

 

 

16,650

 

 

 

 

 

(2,220

)

(13

)%

 

 

14,430

 

%

Total borrowed funds

 

740,828

 

 

422,718

 

 

34,278

 

 

 

318,110

 

75

%

 

 

706,550

 

2061

%

Other liabilities

 

459,881

 

 

470,671

 

 

443,187

 

 

 

(10,790

)

(2

)%

 

 

16,694

 

4

%

Total liabilities

 

20,175,068

 

 

19,626,770

 

 

20,105,776

 

 

 

548,298

 

3

%

 

 

69,292

 

%

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Common shares

 

1,762

 

 

1,778

 

 

1,863

 

 

 

(16

)

(1

)%

 

 

(101

)

(5

)%

Additional paid-in capital

 

1,649,141

 

 

1,676,396

 

 

1,835,241

 

 

 

(27,255

)

(2

)%

 

 

(186,100

)

(10

)%

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

 

(137,696

)

 

(138,950

)

 

(142,709

)

 

 

1,254

 

(1

)%

 

 

5,013

 

(4

)%

Retained earnings

 

1,881,775

 

 

1,855,757

 

 

1,768,653

 

 

 

26,018

 

1

%

 

 

113,122

 

6

%

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

 

(923,192

)

 

(978,818

)

 

(56,696

)

 

 

55,626

 

(6

)%

 

 

(866,496

)

1528

%

Total shareholders' equity

 

2,471,790

 

 

2,416,163

 

 

3,406,352

 

 

 

55,627

 

2

%

 

 

(934,562

)

(27

)%

Total liabilities and shareholders' equity

$

22,646,858

 

$

22,042,933

 

$

23,512,128

 

 

$

603,925

 

3

%

 

$

(865,270

)

(4

)%

 

 

 

 

 

 

 

 

 

 

(1) AFS and HTM securities represented at fair value and amortized cost, respectively.

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Three months ended

 

Three months ended Dec 31, 2022 change from three

months ended

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

Dec 31, 2022

Sep 30, 2022

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2021

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

△ $

△ %

 

△ $

△ %

Interest and fees on loans

$

142,446

 

$

124,992

 

$

101,275

 

 

$

17,454

 

14

%

 

$

41,171

 

41

%

Taxable interest and dividends on securities

 

30,413

 

 

29,280

 

 

21,335

 

 

 

1,133

 

4

%

 

 

9,078

 

43

%

Non-taxable interest and dividends on securities

 

1,594

 

 

1,917

 

 

1,815

 

 

 

(323

)

(17

)%

 

 

(221

)

(12

)%

Interest on federal funds sold and other short-term investments

 

545

 

 

1,638

 

 

452

 

 

 

(1,093

)

(67

)%

 

 

93

 

21

%

Total interest and dividend income

 

174,998

 

 

157,827

 

 

124,877

 

 

 

17,171

 

11

%

 

 

50,121

 

40

%

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on deposits

 

17,457

 

 

4,781

 

 

2,398

 

 

 

12,676

 

265

%

 

 

15,059

 

628

%

Interest on borrowings

 

7,547

 

 

867

 

 

42

 

 

 

6,680

 

770

%

 

 

7,505

 

17869

%

Total interest expense

 

25,004

 

 

5,648

 

 

2,440

 

 

 

19,356

 

343

%

 

 

22,564

 

925

%

Net interest income

 

149,994

 

 

152,179

 

 

122,437

 

 

 

(2,185

)

(1

)%

 

 

27,557

 

23

%

Provision for (release of) allowance for loan losses

 

10,880

 

 

6,480

 

 

(4,318

)

 

 

4,400

 

68

%

 

 

15,198

 

(352

)%

Net interest income after provision for (release of) allowance for loan losses

 

139,114

 

 

145,699

 

 

126,755

 

 

 

(6,585

)

(5

)%

 

 

12,359

 

10

%

Noninterest income:

 

 

 

 

 

 

 

 

 

Insurance commissions

 

22,049

 

 

23,788

 

 

20,937

 

 

 

(1,739

)

(7

)%

 

 

1,112

 

5

%

Service charges on deposit accounts

 

6,834

 

 

6,708

 

 

7,261

 

 

 

126

 

2

%

 

 

(427

)

(6

)%

Trust and investment advisory fees

 

5,626

 

 

5,832

 

 

6,541

 

 

 

(206

)

(4

)%

 

 

(915

)

(14

)%

Debit card processing fees

 

3,227

 

 

3,249

 

 

3,169

 

 

 

(22

)

(1

)%

 

 

58

 

2

%

Interest rate swap income

 

(78

)

 

1,562

 

 

512

 

 

 

(1,640

)

(105

)%

 

 

(590

)

(115

)%

Gains (losses) from investments held in rabbi trusts

 

3,235

 

 

(2,248

)

 

4,444

 

 

 

5,483

 

(244

)%

 

 

(1,209

)

(27

)%

Gains on sales of mortgage loans held for sale, net

 

8

 

 

22

 

 

561

 

 

 

(14

)

(64

)%

 

 

(553

)

(99

)%

Losses on sales of securities available for sale, net

 

(683

)

 

(198

)

 

 

 

 

(485

)

245

%

 

 

(683

)

%

Other

 

4,298

 

 

4,638

 

 

5,576

 

 

 

(340

)

(7

)%

 

 

(1,278

)

(23

)%

Total noninterest income

 

44,516

 

 

43,353

 

 

49,001

 

 

 

1,163

 

3

%

 

 

(4,485

)

(9

)%

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

77,604

 

 

78,060

 

 

96,362

 

 

 

(456

)

(1

)%

 

 

(18,758

)

(19

)%

Office occupancy and equipment

 

9,559

 

 

9,703

 

 

16,194

 

 

 

(144

)

(1

)%

 

 

(6,635

)

(41

)%

Data processing

 

14,314

 

 

13,294

 

 

12,947

 

 

 

1,020

 

8

%

 

 

1,367

 

11

%

Professional services

 

4,566

 

 

4,767

 

 

9,188

 

 

 

(201

)

(4

)%

 

 

(4,622

)

(50

)%

Marketing

 

3,096

 

 

2,219

 

 

1,955

 

 

 

877

 

40

%

 

 

1,141

 

58

%

Loan expenses

 

627

 

 

2,211

 

 

1,907

 

 

 

(1,584

)

(72

)%

 

 

(1,280

)

(67

)%

Federal Deposit Insurance Corporation ("FDIC") insurance

 

1,540

 

 

1,578

 

 

1,237

 

 

 

(38

)

(2

)%

 

 

303

 

24

%

Amortization of intangible assets

 

1,097

 

 

1,033

 

 

726

 

 

 

64

 

6

%

 

 

371

 

51

%

Other

 

20,354

 

 

3,975

 

 

3,086

 

 

 

16,379

 

412

%

 

 

17,268

 

560

%

Total noninterest expense

 

132,757

 

 

116,840

 

 

143,602

 

 

 

15,917

 

14

%

 

 

(10,845

)

(8

)%

Income before income tax expense (benefit)

 

50,873

 

 

72,212

 

 

32,154

 

 

 

(21,339

)

(30

)%

 

 

18,719

 

58

%

Income tax expense (benefit)

 

8,579

 

 

17,435

 

 

(2,933

)

 

 

(8,856

)

(51

)%

 

 

11,512

 

(392

)%

Net income

$

42,294

 

$

54,777

 

$

35,087

 

 

$

(12,483

)

(23

)%

 

$

7,207

 

21

%

 

 

 

 

 

 

 

 

 

 

Share data:

 

 

 

 

 

 

 

 

 

Earnings per share, basic

$

0.26

 

$

0.33

 

$

0.20

 

 

 

 

 

 

 

Earnings per share, diluted

$

0.26

 

$

0.33

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Twelve months ended

 

 

 

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

Dec 31, 2022

Dec 31, 2021

 

Change

 

 

 

 

 

 

Interest and dividend income:

 

 

 

△ $

△ %

Interest and fees on loans

$

476,041

 

$

367,585

 

 

$

108,456

 

30

%

Taxable interest and dividends on securities

 

118,690

 

 

58,312

 

 

 

60,378

 

104

%

Non-taxable interest and dividends on securities

 

7,179

 

 

7,376

 

 

 

(197

)

(3

)%

Interest on federal funds sold and other short-term investments

 

3,271

 

 

1,886

 

 

 

1,385

 

73

%

Total interest and dividend income

 

605,181

 

 

435,159

 

 

 

170,022

 

39

%

Interest expense:

 

 

 

 

 

Interest on deposits

 

28,621

 

 

5,167

 

 

 

23,454

 

454

%

Interest on borrowings

 

8,506

 

 

165

 

 

 

8,341

 

5055

%

Total interest expense

 

37,127

 

 

5,332

 

 

 

31,795

 

596

%

Net interest income

 

568,054

 

 

429,827

 

 

 

138,227

 

32

%

Provision for (release of) allowance for loan losses

 

17,925

 

 

(9,686

)

 

 

27,611

 

(285

)%

Net interest income after provision for (release of) allowance for loan losses

 

550,129

 

 

439,513

 

 

 

110,616

 

25

%

Noninterest income:

 

 

 

 

 

Insurance commissions

 

99,232

 

 

94,704

 

 

 

4,528

 

5

%

Service charges on deposit accounts

 

30,392

 

 

24,271

 

 

 

6,121

 

25

%

Trust and investment advisory fees

 

23,593

 

 

24,588

 

 

 

(995

)

(4

)%

Debit card processing fees

 

12,644

 

 

12,118

 

 

 

526

 

4

%

Interest rate swap income

 

6,009

 

 

5,634

 

 

 

375

 

7

%

(Losses) income from investments held in rabbi trusts

 

(10,762

)

 

10,217

 

 

 

(20,979

)

(205

)%

Gains on sales of mortgage loans held for sale, net

 

248

 

 

3,605

 

 

 

(3,357

)

(93

)%

(Losses) gains on sales of securities available for sale, net

 

(3,157

)

 

1,166

 

 

 

(4,323

)

(371

)%

Other

 

17,962

 

 

16,852

 

 

 

1,110

 

7

%

Total noninterest income

 

176,161

 

 

193,155

 

 

 

(16,994

)

(9

)%

Noninterest expense:

 

 

 

 

 

Salaries and employee benefits

 

298,186

 

 

295,916

 

 

 

2,270

 

1

%

Office occupancy and equipment

 

40,764

 

 

40,465

 

 

 

299

 

1

%

Data processing

 

57,273

 

 

50,839

 

 

 

6,434

 

13

%

Professional services

 

16,814

 

 

21,879

 

 

 

(5,065

)

(23

)%

Marketing

 

9,540

 

 

8,741

 

 

 

799

 

9

%

Loan expenses

 

6,384

 

 

9,114

 

 

 

(2,730

)

(30

)%

Federal Deposit Insurance Corporation ("FDIC") insurance

 

6,250

 

 

4,226

 

 

 

2,024

 

48

%

Amortization of intangible assets

 

3,864

 

 

2,512

 

 

 

1,352

 

54

%

Other

 

30,527

 

 

10,264

 

 

 

20,263

 

197

%

Total noninterest expense

 

469,602

 

 

443,956

 

 

 

25,646

 

6

%

Income before income tax expense

 

256,688

 

 

188,712

 

 

 

67,976

 

36

%

Income tax expense

 

56,929

 

 

34,047

 

 

 

22,882

 

67

%

Net income

$

199,759

 

$

154,665

 

 

$

45,094

 

29

%

 

 

 

 

 

 

Share data:

 

 

 

 

 

Weighted average common shares outstanding, basic (1)

 

165,510,357

 

 

172,192,336

 

 

 

(6,681,979

)

(4

)%

Weighted average common shares outstanding, diluted (1)

 

165,648,571

 

 

172,252,057

 

 

 

(6,603,486

)

(4

)%

Earnings per share, basic

$

1.21

 

$

0.90

 

 

$

0.31

 

34

%

Earnings per share, diluted

$

1.21

 

$

0.90

 

 

$

0.31

 

34

%

 

 

 

 

 

 

(1) Shares held by the Company’s ESOP that have not been allocated to employees in accordance with the terms of the ESOP are not deemed outstanding for earnings per share calculations.

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS

 

 

As of and for the three months ended

 

Dec 31, 2022

 

Sep 30, 2022

 

Dec 31, 2021

(Unaudited, dollars in thousands)

Avg. Balance

 

Interest

 

Yield /

Cost (5)

 

Avg. Balance

 

Interest

 

Yield /

Cost (5)

 

Avg. Balance

 

Interest

 

Yield /

Cost (5)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

9,528,386

 

$

108,015

 

4.50

%

 

$

9,138,029

 

$

96,270

 

4.18

%

 

$

8,021,665

 

$

80,326

 

3.97

%

Residential

 

2,313,810

 

 

18,837

 

3.23

%

 

 

2,043,219

 

 

15,811

 

3.07

%

 

 

1,735,324

 

 

12,993

 

2.97

%

Consumer

 

1,363,858

 

 

18,949

 

5.51

%

 

 

1,341,528

 

 

16,072

 

4.75

%

 

 

1,189,106

 

 

9,683

 

3.23

%

Total loans

 

13,206,054

 

 

145,801

 

4.38

%

 

 

12,522,776

 

 

128,153

 

4.06

%

 

 

10,946,095

 

 

103,002

 

3.73

%

Investment securities

 

8,422,385

 

 

32,432

 

1.53

%

 

 

8,716,105

 

 

31,708

 

1.44

%

 

 

7,336,783

 

 

23,633

 

1.28

%

Federal funds sold and other short-term investments

 

63,408

 

 

545

 

3.41

%

 

 

282,629

 

 

1,638

 

2.30

%

 

 

1,201,223

 

 

452

 

0.15

%

Total interest-earning assets

 

21,691,847

 

 

178,778

 

3.27

%

 

 

21,521,510

 

 

161,499

 

2.98

%

 

 

19,484,101

 

 

127,087

 

2.59

%

Non-interest-earning assets

 

653,158

 

 

 

 

 

 

911,025

 

 

 

 

 

 

1,373,219

 

 

 

 

Total assets

$

22,345,005

 

 

 

 

 

$

22,432,535

 

 

 

 

 

$

20,857,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

$

1,924,840

 

$

57

 

0.01

%

 

$

2,021,125

 

$

51

 

0.01

%

 

$

1,800,862

 

$

61

 

0.01

%

Interest checking

 

4,871,089

 

 

4,897

 

0.40

%

 

 

5,211,914

 

 

2,686

 

0.20

%

 

 

3,830,427

 

 

1,267

 

0.13

%

Money market

 

4,778,694

 

 

9,919

 

0.82

%

 

 

4,824,452

 

 

1,893

 

0.16

%

 

 

4,743,313

 

 

788

 

0.07

%

Time deposits

 

563,735

 

 

2,584

 

1.82

%

 

 

380,560

 

 

151

 

0.16

%

 

 

388,511

 

 

281

 

0.29

%

Total interest-bearing deposits

 

12,138,358

 

 

17,457

 

0.57

%

 

 

12,438,051

 

 

4,781

 

0.15

%

 

 

10,763,113

 

 

2,397

 

0.09

%

Borrowings

 

795,527

 

 

7,547

 

3.76

%

 

 

157,686

 

 

867

 

2.18

%

 

 

29,204

 

 

42

 

0.57

%

Total interest-bearing liabilities

 

12,933,885

 

 

25,004

 

0.77

%

 

 

12,595,737

 

 

5,648

 

0.18

%

 

 

10,792,317

 

 

2,439

 

0.09

%

Demand deposit accounts

 

6,495,817

 

 

 

 

 

 

6,614,467

 

 

 

 

 

 

6,226,291

 

 

 

 

Other noninterest-bearing liabilities

 

495,129

 

 

 

 

 

 

445,640

 

 

 

 

 

 

415,481

 

 

 

 

Total liabilities

 

19,924,831

 

 

 

 

 

 

19,655,844

 

 

 

 

 

 

17,434,089

 

 

 

 

Shareholders' equity

 

2,420,174

 

 

 

 

 

 

2,776,691

 

 

 

 

 

 

3,423,231

 

 

 

 

Total liabilities and shareholders' equity

$

22,345,005

 

 

 

 

 

$

22,432,535

 

 

 

 

 

$

20,857,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

153,774

 

 

 

 

 

$

155,851

 

 

 

 

 

$

124,648

 

 

Net interest rate spread (2)

 

 

 

 

2.50

%

 

 

 

 

 

2.80

%

 

 

 

 

 

2.50

%

Net interest-earning assets (3)

$

8,757,962

 

 

 

 

 

$

8,925,773

 

 

 

 

 

$

8,691,784

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.81

%

 

 

 

 

 

2.87

%

 

 

 

 

 

2.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 twelve months ended

 

Dec 31, 2022

 

Dec 31, 2021

(Unaudited, dollars in thousands)

Avg. Balance

 

Interest

 

Yield / Cost

 

Avg. Balance

 

Interest

 

Yield / Cost

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans (1):

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

9,147,540

 

$

366,097

 

4.00

%

 

$

7,410,024

 

$

288,557

 

3.89

%

Residential

 

2,064,609

 

 

63,803

 

3.09

%

 

 

1,510,703

 

 

47,143

 

3.12

%

Consumer

 

1,327,417

 

 

56,965

 

4.29

%

 

 

1,103,042

 

 

36,019

 

3.27

%

Total loans

 

12,539,566

 

 

486,865

 

3.88

%

 

 

10,023,769

 

 

371,719

 

3.71

%

Total investment securities

 

8,666,868

 

 

127,781

 

1.47

%

 

 

5,151,136

 

 

67,647

 

1.31

%

Federal funds sold and other short-term investments

 

420,834

 

 

3,271

 

0.78

%

 

 

1,514,351

 

 

1,886

 

0.12

%

Total interest-earning assets

 

21,627,268

 

 

617,917

 

2.86

%

 

 

16,689,256

 

 

441,252

 

2.64

%

Non-interest-earning assets

 

986,865

 

 

 

 

 

 

1,173,830

 

 

 

 

Total assets

$

22,614,133

 

 

 

 

 

$

17,863,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Savings

$

2,015,651

 

$

209

 

0.01

%

 

$

1,483,271

 

$

230

 

0.02

%

Interest checking

 

4,890,709

 

 

11,675

 

0.24

%

 

 

2,866,091

 

 

1,997

 

0.07

%

Money market

 

5,057,445

 

 

13,479

 

0.27

%

 

 

3,870,712

 

 

2,342

 

0.06

%

Time deposits

 

463,261

 

 

3,258

 

0.70

%

 

 

280,141

 

 

598

 

0.21

%

Total interest-bearing deposits

 

12,427,066

 

 

28,621

 

0.23

%

 

 

8,500,215

 

 

5,167

 

0.06

%

Borrowings

 

256,632

 

 

8,506

 

3.31

%

 

 

26,495

 

 

165

 

0.62

%

Total interest-bearing liabilities

 

12,683,698

 

 

37,127

 

0.29

%

 

 

8,526,710

 

 

5,332

 

0.06

%

Demand deposit accounts

 

6,647,518

 

 

 

 

 

 

5,547,615

 

 

 

 

Other noninterest-bearing liabilities

 

451,384

 

 

 

 

 

 

364,191

 

 

 

 

Total liabilities

 

19,782,600

 

 

 

 

 

 

14,438,516

 

 

 

 

Shareholders' equity

 

2,831,533

 

 

 

 

 

 

3,424,570

 

 

 

 

Total liabilities and shareholders' equity

$

22,614,133

 

 

 

 

 

$

17,863,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

580,790

 

 

 

 

 

$

435,920

 

 

Net interest rate spread (2)

 

 

 

 

2.57

%

 

 

 

 

 

2.58

%

Net interest-earning assets (3)

$

8,943,570

 

 

 

 

 

$

8,162,546

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.69

%

 

 

 

 

 

2.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes non-accrual loans.

(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin - FTE represents fully-taxable equivalent net interest income* divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - NON-PERFORMING ASSETS (1)

 

 

As of

 

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

Commercial

$

21,474

 

$

19,886

 

$

43,628

 

$

17,919

 

$

20,630

 

Residential

 

9,750

 

 

8,513

 

 

9,486

 

 

8,256

 

 

6,681

 

Consumer

 

7,380

 

 

5,555

 

 

6,766

 

 

7,646

 

 

5,682

 

Total non-accrual loans

 

38,604

 

 

33,954

 

 

59,880

 

 

33,821

 

 

32,993

 

Total accruing loans past due 90 days or more (2):

 

 

 

 

 

 

 

 

 

1,990

 

Total non-performing loans

 

38,604

 

 

33,954

 

 

59,880

 

 

33,821

 

 

34,983

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

Other non-performing assets:

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

38,604

 

$

33,954

 

$

59,880

 

$

33,821

 

$

34,983

 

Total accruing troubled debt restructured loans

$

28,834

 

$

36,275

 

$

33,518

 

$

32,016

 

$

33,336

 

Total non-performing loans to total loans

 

0.28

%

 

0.26

%

 

0.48

%

 

0.28

%

 

0.29

%

Total non-performing assets to total assets

 

0.17

%

 

0.15

%

 

0.27

%

 

0.15

%

 

0.15

%

 

 

 

 

 

 

(1) Non-performing assets are comprised of NPLs, other real estate owned ("OREO"), and non-performing securities. NPLs consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest. OREO consists of real estate properties, which primarily serve as collateral to secure the Company’s loans, that it controls due to foreclosure or acceptance of a deed in lieu of foreclosure.

(2) Loans that were past due 90 days or more and still accruing in prior quarters were comprised solely of purchased credit impaired ("PCI") loans. PCI loans were not subject to classification as nonaccrual in the same manner as originated loans as their interest income related to the accretable yield recognized and not to contractual interest payments at the loan level. In connection with the Company’s adoption on January 1, 2022 of the loan loss methodology commonly referred to as the "current expected credit losses methodology" ("CECL"), the Company's PCI loans are now considered purchased credit deteriorated ("PCD") loans. Interest income recognition for PCD loans is consistent with originated loans and, therefore, PCD loans cease accruing interest at 90 days past due unless management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest. There were no PCD or originated loans at December 31, 2022, September 30, 2022, June 30, 2022 or March 31, 2022 that were past due 90 days or more and still accruing.

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES)

 

 

Three months ended

 

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Average total loans

$

13,203,450

 

$

12,521,426

 

$

12,213,706

 

$

12,203,212

 

$

10,944,091

 

Allowance for loan losses, beginning of the period

 

131,663

 

 

125,531

 

 

124,166

 

 

97,787

 

 

103,398

 

Total cumulative effect of change in accounting principle (1):

 

 

 

 

 

 

 

27,086

 

 

 

Charged-off loans:

 

 

 

 

 

Commercial and industrial

 

256

 

 

11

 

 

1

 

 

1

 

 

1,008

 

Commercial real estate

 

 

 

 

 

 

 

 

 

5

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

370

 

 

369

 

 

608

 

 

945

 

 

1,002

 

Residential real estate

 

 

 

 

 

 

 

 

 

35

 

Consumer home equity

 

1

 

 

 

 

 

 

 

 

24

 

Other consumer

 

515

 

 

603

 

 

490

 

 

661

 

 

666

 

Total charged-off loans

 

1,142

 

 

983

 

 

1,099

 

 

1,607

 

 

2,740

 

Recoveries on loans previously charged-off:

 

 

 

 

 

Commercial and industrial

 

248

 

 

126

 

 

698

 

 

250

 

 

873

 

Commercial real estate

 

38

 

 

3

 

 

36

 

 

14

 

 

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

391

 

 

286

 

 

464

 

 

928

 

 

399

 

Residential real estate

 

14

 

 

56

 

 

14

 

 

10

 

 

7

 

Consumer home equity

 

8

 

 

6

 

 

6

 

 

4

 

 

48

 

Other consumer

 

111

 

 

158

 

 

196

 

 

179

 

 

120

 

Total recoveries

 

810

 

 

635

 

 

1,414

 

 

1,385

 

 

1,447

 

Net loans charged-off (recoveries):

 

 

 

 

 

Commercial and industrial

 

8

 

 

(115

)

 

(697

)

 

(249

)

 

135

 

Commercial real estate

 

(38

)

 

(3

)

 

(36

)

 

(14

)

 

5

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

(21

)

 

83

 

 

144

 

 

17

 

 

603

 

Residential real estate

 

(14

)

 

(56

)

 

(14

)

 

(10

)

 

28

 

Consumer home equity

 

(7

)

 

(6

)

 

(6

)

 

(4

)

 

(24

)

Other consumer

 

404

 

 

445

 

 

294

 

 

482

 

 

546

 

Total net loans charged-off (recoveries)

 

332

 

 

348

 

 

(315

)

 

222

 

 

1,293

 

Provision for (release of) allowance for loan losses

 

10,880

 

 

6,480

 

 

1,050

 

 

(485

)

 

(4,318

)

Total allowance for loan losses, end of period

$

142,211

 

$

131,663

 

$

125,531

 

$

124,166

 

$

97,787

 

Net charge-offs (recoveries) to average total loans outstanding during this period (2)

 

0.01

%

 

0.01

%

 

(0.01

)%

 

0.01

%

 

0.05

%

Allowance for loan losses as a percent of total loans

 

1.05

%

 

1.02

%

 

1.01

%

 

1.02

%

 

0.80

%

Allowance for loan losses as a percent of nonperforming loans

 

368.38

%

 

387.77

%

 

209.64

%

 

367.13

%

 

279.53

%

 

 

 

 

 

 

 

(1) Represents the adjustment needed to reflect the cumulative day one impact pursuant to the Company’s adoption of ASU 2016-13 (i.e., cumulative effect adjustment related the adoption of ASU 2016-13 as of January 1, 2022). The adjustment represents a $27.1 million increase to the allowance for loan losses attributable to the change in accounting methodology which requires the estimation of the allowance for credit losses resulting from the Company’s adoption of the standard. The adjustment also includes the adjustment needed to reflect the day one reclassification of the Company’s financial assets that were previously classified as PCI financial assets as PCD financial assets and the associated gross-up of $0.1 million, pursuant to the Company’s adoption of ASU 2016-13.

(2) Presented on an annualized basis.

APPENDIX A: Reconciliation of Non-GAAP Earnings 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)

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

 

 

 

 

 

 

Net income (GAAP)

$

42,294

 

$

54,777

 

$

51,172

 

$

51,516

 

$

35,087

 

Add:

 

 

 

 

 

Noninterest income components:

 

 

 

 

 

(Income) losses from investments held in rabbi trusts

 

(3,235

)

 

2,248

 

 

7,316

 

 

4,433

 

 

(4,444

)

Losses on sales of securities available for sale, net

 

683

 

 

198

 

 

104

 

 

2,172

 

 

 

(Gains) losses on sales of other assets

 

(14

)

 

(501

)

 

(1,251

)

 

274

 

 

(34

)

Noninterest expense components:

 

 

 

 

 

Rabbi trust employee benefit expense (income)

 

1,103

 

 

(867

)

 

(3,310

)

 

(2,087

)

 

2,519

 

Impairment charge on tax credit investments

 

 

 

 

 

 

 

 

 

116

 

Merger and acquisition expenses

 

 

 

271

 

 

 

 

34

 

 

30,652

 

Defined Benefit Plan settlement loss

 

12,045

 

 

 

 

 

 

 

 

 

Total impact of non-GAAP adjustments

 

10,582

 

 

1,349

 

 

2,859

 

 

4,826

 

 

28,809

 

Less net tax benefit associated with non-GAAP adjustments (1)

 

2,964

 

 

384

 

 

1,513

 

 

1,235

 

 

19,036

 

Non-GAAP adjustments, net of tax

$

7,618

 

$

965

 

$

1,346

 

$

3,591

 

$

9,773

 

Operating net income (non-GAAP)

$

49,912

 

$

55,742

 

$

52,518

 

$

55,107

 

$

44,860

 

 

 

 

 

 

 

Weighted average common shares outstanding during the period (2):

 

 

 

 

 

Basic

 

162,032,522

 

 

163,718,962

 

 

166,533,920

 

 

169,857,950

 

 

172,246,799

 

Diluted

 

162,263,547

 

 

164,029,649

 

 

166,573,627

 

 

169,968,156

 

 

172,481,829

 

 

 

 

 

 

 

Earnings per share, basic

$

0.26

 

$

0.33

 

$

0.31

 

$

0.30

 

$

0.20

 

Earnings per share, diluted

$

0.26

 

$

0.33

 

$

0.31

 

$

0.30

 

$

0.20

 

 

 

 

 

 

 

Operating earnings per share, basic (non-GAAP)

$

0.31

 

$

0.34

 

$

0.32

 

$

0.32

 

$

0.26

 

Operating earnings per share, diluted (non-GAAP)

$

0.31

 

$

0.34

 

$

0.32

 

$

0.32

 

$

0.26

 

 

 

 

 

 

 

Return on average assets (3)

 

0.75

%

 

0.97

%

 

0.92

%

 

0.90

%

 

0.67

%

Add:

 

 

 

 

 

(Income) losses from investments held in rabbi trusts (3)

 

(0.06

)%

 

0.04

%

 

0.13

%

 

0.08

%

 

(0.08

)%

Losses on sales of securities available for sale, net (3)

 

0.01

%

 

0.00

%

 

0.00

%

 

0.04

%

 

0.00

%

(Gains) losses on sales of other assets (3)

 

0.00

%

 

(0.01

)%

 

(0.02

)%

 

0.00

%

 

0.00

%

Rabbi trust employee benefit expense (income) (3)

 

0.02

%

 

(0.02

)%

 

(0.06

)%

 

(0.04

)%

 

0.05

%

Impairment charge on tax credit investments (3)

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Merger and acquisition expenses (3)

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.58

%

Defined Benefit Plan settlement loss (3)

 

0.21

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Less net tax benefit associated with non-GAAP adjustments (1) (3)

 

0.05

%

 

0.01

%

 

0.03

%

 

0.02

%

 

0.36

%

Operating return on average assets (non-GAAP) (3)

 

0.88

%

 

0.97

%

 

0.94

%

 

0.96

%

 

0.86

%

 

 

 

 

 

 

Return on average shareholders' equity (3)

 

6.93

%

 

7.83

%

 

7.16

%

 

6.38

%

 

4.07

%

Add:

 

 

 

 

 

(Income) losses from investments held in rabbi trusts (3)

 

(0.53

)%

 

0.32

%

 

1.02

%

 

0.55

%

 

(0.52

)%

Losses on sales of securities available for sale, net (3)

 

0.11

%

 

0.03

%

 

0.01

%

 

0.27

%

 

0.00

%

(Gains) losses on sales of other assets (3)

 

0.00

%

 

(0.07

)%

 

(0.18

)%

 

0.03

%

 

0.00

%

Rabbi trust employee benefit expense (income) (3)

 

0.18

%

 

(0.12

)%

 

(0.46

)%

 

(0.26

)%

 

0.29

%

Impairment charge on tax credit investments (3)

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.01

%

Merger and acquisition expenses (3)

 

0.00

%

 

0.04

%

 

0.00

%

 

0.00

%

 

3.55

%

Defined Benefit Plan settlement loss (3)

 

1.97

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Less net tax benefit associated with non-GAAP adjustments (1) (3)

 

0.49

%

 

0.05

%

 

0.21

%

 

0.15

%

 

2.21

%

Operating return on average shareholders' equity (non-GAAP) (3)

 

8.17

%

 

7.98

%

 

7.34

%

 

6.82

%

 

5.19

%

 

 

 

 

 

 

Average tangible shareholders' equity:

 

 

 

 

 

Average total shareholders' equity (GAAP)

$

2,420,174

 

$

2,776,691

 

$

2,865,799

 

$

3,273,447

 

$

3,423,231

 

Less: Average goodwill and other intangibles

 

661,841

 

 

656,684

 

 

654,444

 

 

649,497

 

 

520,988

 

Average tangible shareholders' equity (non-GAAP)

$

1,758,333

 

$

2,120,007

 

$

2,211,355

 

$

2,623,950

 

$

2,902,243

 

 

 

 

 

 

 

Return on average tangible shareholders' equity (non-GAAP) (3)

 

9.54

%

 

10.25

%

 

9.28

%

 

7.96

%

 

4.80

%

Add:

 

 

 

 

 

(Income) losses from investments held in rabbi trusts (3)

 

(0.73

)%

 

0.42

%

 

1.33

%

 

0.69

%

 

(0.61

)%

Losses on sales of securities available for sale, net (3)

 

0.15

%

 

0.04

%

 

0.02

%

 

0.34

%

 

0.00

%

(Gains) losses on sales of other assets (3)

 

0.00

%

 

(0.09

)%

 

(0.23

)%

 

0.04

%

 

0.00

%

Rabbi trust employee benefit expense (income) (3)

 

0.25

%

 

(0.16

)%

 

(0.60

)%

 

(0.32

)%

 

0.34

%

Impairment charge on tax credit investments (3)

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.02

%

Merger and acquisition expenses (3)

 

0.00

%

 

0.05

%

 

0.00

%

 

0.01

%

 

4.19

%

Defined Benefit Plan settlement loss (3)

 

2.72

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Less net tax benefit associated with non-GAAP adjustments (1) (3)

 

0.67

%

 

0.07

%

 

0.27

%

 

0.19

%

 

2.60

%

Operating return on average tangible shareholders' equity (non-GAAP) (3)

 

11.26

%

 

10.44

%

 

9.53

%

 

8.53

%

 

6.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The net tax benefit associated with these items is determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. The net tax benefit amount for the quarters ended December 31, 2021 and June 30, 2022 reflect the impact of the release of $11.3 million and $0.7 million, respectively, of the $12.0 million valuation allowance associated with the Company's stock donation to the Eastern Bank Foundation made in the quarter ended December 31, 2020. There was no such release in other quarters.

(2) Shares held by the Company’s ESOP that have not been allocated to employees in accordance with the terms of the ESOP are not deemed outstanding for earnings per share calculations.

(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

 

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Net interest income (GAAP)

$

149,994

 

$

152,179

 

$

137,757

 

$

128,124

 

$

122,437

 

Add:

 

 

 

 

 

Tax-equivalent adjustment (non-GAAP) (1)

 

3,780

 

 

3,672

 

 

3,023

 

 

2,261

 

 

2,211

 

Fully-taxable equivalent net interest income (non-GAAP)

$

153,774

 

$

155,851

 

$

140,780

 

$

130,385

 

$

124,648

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

44,516

 

$

43,353

 

$

41,877

 

$

46,415

 

$

49,001

 

Less:

 

 

 

 

 

Income (losses) from investments held in rabbi trusts

 

3,235

 

 

(2,248

)

 

(7,316

)

 

(4,433

)

 

4,444

 

Losses on sales of securities available for sale, net

 

(683

)

 

(198

)

 

(104

)

 

(2,172

)

 

 

Gain (losses) on sales of other assets

 

14

 

 

501

 

 

1,251

 

 

(274

)

 

34

 

Noninterest income on an operating basis (non-GAAP)

$

41,950

 

$

45,298

 

$

48,046

 

$

53,294

 

$

44,523

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

132,757

 

$

116,840

 

$

111,139

 

$

108,866

 

$

143,602

 

Less:

 

 

 

 

 

Rabbi trust employee benefit expense (income)

 

1,103

 

 

(867

)

 

(3,310

)

 

(2,087

)

 

2,519

 

Impairment charge on tax credit investments

 

 

 

 

 

 

 

 

 

116

 

Merger and acquisition expenses

 

 

 

271

 

 

 

 

34

 

 

30,652

 

Defined Benefit Plan settlement loss

 

12,045

 

 

 

 

 

 

 

 

 

Noninterest expense on an operating basis (non-GAAP)

$

119,609

 

$

117,436

 

$

114,449

 

$

110,919

 

$

110,315

 

 

 

 

 

 

 

Total revenue (GAAP)

$

194,510

 

$

195,532

 

$

179,634

 

$

174,539

 

$

171,438

 

Total operating revenue (non-GAAP)

$

195,724

 

$

201,149

 

$

188,826

 

$

183,679

 

$

169,171

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

68.25

%

 

59.75

%

 

61.87

%

 

62.37

%

 

83.76

%

Operating efficiency ratio (non-GAAP)

 

61.11

%

 

58.38

%

 

60.61

%

 

60.39

%

 

65.21

%

 

 

 

 

 

 

Noninterest income / total revenue (GAAP)

 

22.89

%

 

22.17

%

 

23.31

%

 

26.59

%

 

28.58

%

Noninterest income / total revenue on an operating basis (non-GAAP)

 

21.43

%

 

22.52

%

 

25.44

%

 

29.01

%

 

26.32

%

 

 

 

 

 

 

(1) Interest income on tax-exempt loans and investment securities has been adjusted to an FTE basis using a marginal tax rate of 21.6%, 21.5%, 21.5%, 21.5%, and 21.0% for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, 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

 

Dec 31, 2022

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

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

 

 

 

 

 

Tangible shareholders' equity:

 

 

 

 

 

Total shareholders' equity (GAAP)

$

2,471,790

 

$

2,416,163

 

$

2,718,396

 

$

3,008,392

 

$

3,406,352

 

Less: Goodwill and other intangibles

 

661,126

 

 

662,222

 

 

653,853

 

 

654,759

 

 

649,703

 

Tangible shareholders' equity (non-GAAP)

 

1,810,664

 

 

1,753,941

 

 

2,064,543

 

 

2,353,633

 

 

2,756,649

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

Total assets (GAAP)

 

22,646,858

 

 

22,042,933

 

 

22,350,848

 

 

22,836,072

 

 

23,512,128

 

Less: Goodwill and other intangibles

 

661,126

 

 

662,222

 

 

653,853

 

 

654,759

 

 

649,703

 

Tangible assets (non-GAAP)

$

21,985,732

 

$

21,380,711

 

$

21,696,995

 

$

22,181,313

 

$

22,862,425

 

 

 

 

 

 

 

Shareholders' equity to assets ratio (GAAP)

 

10.91

%

 

10.96

%

 

12.16

%

 

13.17

%

 

14.49

%

Tangible shareholders' equity to tangible assets ratio (non-GAAP)

 

8.24

%

 

8.20

%

 

9.52

%

 

10.61

%

 

12.06

%

 

 

 

 

 

 

Common shares outstanding

 

176,172,073

 

 

177,772,553

 

 

179,253,801

 

 

183,438,711

 

 

186,305,332

 

 

 

 

 

 

 

Book value per share (GAAP)

$

14.03

 

$

13.59

 

$

15.17

 

$

16.40

 

$

18.28

 

Tangible book value per share (non-GAAP)

$

10.28

 

$

9.87

 

$

11.52

 

$

12.83

 

$

14.80

 

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

 

Dec 31, 2022

Sep 30, 2022

 

Sep 30, 2022

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

 

 

 

 

Common stock

$

1,762

 

$

1,778

 

 

$

(16

)

Additional paid in capital

 

1,649,141

 

 

1,676,396

 

 

 

(27,255

)

Unallocated ESOP common stock

 

(137,696

)

 

(138,950

)

 

 

1,254

 

Retained earnings

 

1,881,775

 

 

1,855,757

 

 

 

26,018

 

AOCI, net of tax - available for sale securities

 

(880,156

)

 

(918,855

)

 

 

38,699

 

AOCI, net of tax - pension

 

7,123

 

 

(5,842

)

 

 

12,965

 

AOCI, net of tax - cash flow hedge

 

(50,159

)

 

(54,121

)

 

 

3,962

 

Total shareholders' equity:

$

2,471,790

 

$

2,416,163

 

 

$

55,627

 

Less: Goodwill and other intangibles

 

661,126

 

 

662,222

 

 

 

(1,096

)

Tangible shareholders' equity (non-GAAP)

$

1,810,664

 

$

1,753,941

 

 

$

56,723

 

 

 

 

 

 

Common shares outstanding

 

176,172,073

 

 

177,772,553

 

 

 

(1,600,480

)

 

 

 

 

 

Per share:

 

 

 

 

Common stock

$

0.01

 

$

0.01

 

 

$

 

Additional paid in capital

 

9.36

 

 

9.43

 

 

 

(0.07

)

Unallocated ESOP common stock

 

(0.78

)

 

(0.78

)

 

 

 

Retained earnings

 

10.68

 

 

10.44

 

 

 

0.24

 

AOCI, net of tax - available for sale securities

 

(5.00

)

 

(5.17

)

 

 

0.17

 

AOCI, net of tax - pension

 

0.04

 

 

(0.03

)

 

 

0.07

 

AOCI, net of tax - cash flow hedge

 

(0.28

)

 

(0.30

)

 

 

0.02

 

Total shareholders' equity:

$

14.03

 

$

13.59

 

 

$

0.44

 

Less: Goodwill and other intangibles

 

3.75

 

 

3.73

 

 

 

0.03

 

Tangible shareholders' equity (non-GAAP)

$

10.28

 

$

9.87

 

 

$

0.41

 

 

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