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Eastern Bankshares, Inc. Reports Fourth Quarter 2021 Financial Results

January, 27, 2022

Company Announces a 25% Increase to Quarterly Dividend

BOSTON--(BUSINESS WIRE)-- 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 2021 fourth quarter financial results and the declaration of a quarterly cash dividend. Net income for the fourth quarter of 2021 was $35.1 million, or $0.20 per diluted share, compared to net income of $37.1 million, or $0.22 per diluted share, reported for the third quarter of 2021. Operating net income* for the fourth quarter of 2021 was $44.9 million, or $0.26 per diluted share, compared to $37.4 million, or $0.22 per diluted share, reported for the prior quarter.

“Eastern finished 2021 with record financial results, capping off another milestone year for the Company,” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. “At Eastern, 2021 will be most remembered for the acquisition of Century Bancorp, by far our largest acquisition to date, which added approximately $7 billion in assets and 12 net new branch locations, and brought us approximately 56,000 new customers and 250 new colleagues. The successful integration of our two companies represented yet another landmark achievement amidst the ongoing COVID-19 pandemic, and we are tremendously grateful and thankful to all of our employees for their commitment to our customers, colleagues and communities we serve. As we look forward to 2022 and beyond, we expect the continued growth and success of our Company will open up new ways to deliver our offerings and services to our customers, expand our role as an employer of choice, and contribute positively to our local community, while delivering greater value to our shareholders.”

The Company also announced the declaration of a quarterly cash dividend of $0.10 per share, representing a $0.02, or 25%, increase from past quarterly dividends.

Rivers continued, “Our Board’s approval of a 25% increase to the quarterly dividend reflects our increased earnings capacity with the integration of Century. We remain committed to and confident in our ability to continue to drive earnings growth and effectively deploy capital while creating shareholder value.”

HIGHLIGHTS FOR THE FOURTH QUARTER OF 2021

  • On November 12, 2021, the Company completed the merger with Century Bancorp, Inc. (“Century”), adding approximately $7 billion of total assets, $3 billion of total loans and $6 billion of total deposits. A full system conversion was successfully completed prior to the open of business on November 15, 2021.
  • Organic loan growth, excluding Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, was $133.6 million, or 6% on an annualized basis. Organic commercial loan growth, excluding PPP loans, was $115.4 million, or 7% on an annualized basis.
  • An improving economic outlook coupled with strong asset quality led to a $4.3 million release of allowance for loan losses.
  • The Company recorded a tax benefit of $2.9 million in the fourth quarter, compared to expense of $11.3 million in the prior quarter, a decrease of $14.2 million primarily attributable to an $11.3 million release of the deferred tax valuation allowance recorded in connection with the Company’s fourth quarter 2020 donation of stock to the Eastern Bank Foundation (“EBF,” formerly known as the Eastern Bank Charitable Foundation) in connection with the Company’s initial public offering.
  • The Company repurchased 1,135,878 shares of its common stock during the fourth quarter of 2021 at a weighted average price of $20.42 excluding commissions, representing a total market value of $23.2 million.

MERGER WITH CENTURY BANCORP, INC.

On November 12, 2021, the Company completed the merger with Century for $642 million in cash consideration. The merger extends Eastern’s presence in the Greater Boston and southern New Hampshire markets with the addition of approximately $7 billion of total assets, $3 billion of total loans and $6 billion in deposits, each at fair value. Please see Appendix G for more information on organic loan growth and the impact of the Century merger. Fourth quarter results for 2021 reflect inclusion of Century since November 12, 2021.

BALANCE SHEET

Total assets were $23.5 billion at December 31, 2021, representing an increase of $6.1 billion, or 35%, from September 30, 2021.

  • Available for sale securities increased $2.8 billion, or 50%, on a consecutive quarter basis, to $8.5 billion, primarily due to the merger with Century. Cash and equivalents declined $20.0 million to $1.2 billion.
  • Total loans were $12.3 billion, representing an increase of $2.8 billion, or 29% from the prior quarter. The growth was due to the addition of the Century loan portfolio, which totaled $2.9 billion at the time of merger and organic loan growth excluding PPP loans of $133.6 million, partially offset by a reduction in PPP loans of $276.3 million from the prior quarter.
  • Deposits totaled $19.6 billion, representing an increase of $6.0 billion, or 44%, from the prior quarter. The Century merger added $6.1 billion in total deposits which was partially offset by declines of $121.5 million due to post-acquisition deposit attrition in higher rate categories and a seasonal decline in municipal deposit balances.
  • Shareholders’ equity was $3.4 billion, representing a decrease of $22.9 million from the prior quarter. The increase in retained earnings of $21.4 million was more than offset by a decrease in accumulated other comprehensive income of $23.6 million, driven by a decrease in the market value of the available for sale investment portfolio as well as a decrease in additional paid-in capital of $21.9 million associated primarily with the Company’s share repurchase activity during the quarter. Tangible shareholders’ equity* declined $292.9 million primarily due to an increase in goodwill and other intangibles of $269.9 million resulting primarily from the Century merger. Please refer to Appendix I for a roll forward of tangible shareholders’ equity*.
  • At December 31, 2021, book value per share was $18.28 and tangible book value per share* was $14.80.

NET INTEREST INCOME

Net interest income was $122.4 million for the fourth quarter, compared to $102.7 million in the prior quarter, representing an increase of $19.7 million on a consecutive quarter basis due primarily to increased average earning assets as a result of the Century merger, as well as higher PPP fee accretion.

  • Included in net interest income was $10.8 million and $5.9 million of PPP fee accretion net of deferred cost amortization in the fourth quarter and prior quarter, respectively. During the fourth quarter, $276.3 million in PPP loans were forgiven by the SBA or otherwise paid down compared to $291.8 million in the prior quarter.
  • The net interest margin on a fully tax equivalent (“FTE”) basis* was 2.54% for the fourth quarter, representing a one basis point increase from the prior quarter. The net interest margin benefited from higher PPP fee accretion compared to the prior quarter. The margin on a core basis continued to be pressured by the low interest rate environment and excess liquidity. The core net interest margin* in Appendix E demonstrates the impact of excess cash and the PPP program.

NONINTEREST INCOME

Noninterest income was $49.0 million for the fourth quarter, compared to $43.2 million for the prior quarter, representing an increase of $5.8 million. Noninterest income on an operating basis* was $44.5 million for the fourth quarter, compared to $43.0 million for the prior quarter, an increase of $1.5 million.

  • Insurance commissions decreased $1.0 million to $20.9 million in the fourth quarter, compared to $22.0 million in the prior quarter.
  • Service charges on deposit accounts increased $1.3 million to $7.3 million in the fourth quarter, primarily due to higher account analysis fees.
  • Trust and investment advisory fees increased $0.2 million on a consecutive quarter basis to $6.5 million.
  • Loan-level interest rate swap income was $0.5 million in the fourth quarter, compared to $0.9 million in the prior quarter, representing a decrease of $0.4 million that was driven primarily by a decrease in the fair value of such interest rate swap transactions.
  • Income from investments held in rabbi trust accounts were $4.4 million in the fourth quarter compared to losses of $0.3 million in the prior quarter, representing an increase of $4.7 million primarily due to stronger investment performance in the period as compared to the prior quarter.
  • Other noninterest income increased $0.9 million in the fourth quarter, due primarily to an $0.8 million increase in gains on bank owned life insurance policies.

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

NONINTEREST EXPENSE

Noninterest expense was $143.6 million for the fourth quarter, compared to $99.0 million in the prior quarter, representing an increase of $44.6 million. The increase was primarily driven by Century-related merger and acquisition costs of $30.7 million. Noninterest expense on an operating basis* for the fourth quarter of 2021 was $110.3 million, compared to $97.2 million in the prior quarter, an increase of $13.1 million, primarily because of the Century merger.

  • Salaries and employee benefits expense was $96.4 million in the fourth quarter, representing an increase of $30.1 million from the prior quarter. The increase in salaries was due primarily to expenses associated with the Century merger including severance payments, retention bonuses and the addition of colleagues. The increase in benefits expense was attributable to the increased market value of investments held in rabbi trust accounts by the Company’s defined contribution supplemental executive retirement plan (“DC SERP”) as well as a $1.0 million increase in payroll tax expense.
  • Office occupancy and equipment expense was $16.2 million in the fourth quarter, an increase of $8.2 million from the prior quarter, primarily due to expenses of $7.1 million associated with the Century merger.
  • Professional services expense was $9.9 million in the fourth quarter, an increase of $5.8 million from the prior quarter, primarily due to expenses of $5.7 million associated with the Century merger.

Please refer to Appendix B for a reconciliation of operating revenues and expenses* and Appendix H for a detailed listing of Century-related merger expenses.

ASSET QUALITY

The allowance for loan losses was $97.8 million at December 31, 2021, or 0.80% of total loans, compared to $103.4 million or 1.09% of total loans at September 30, 2021. The decline in the reserve ratio was primarily due to the increase in total loans resulting from the Century merger. Century loans were recorded at fair value at the time of acquisition and therefore no reserve was required. The Company released loan loss reserves totaling $4.3 million in the fourth quarter, compared to a release of $1.5 million in the prior quarter. The Company followed the incurred loss allowance GAAP accounting model at December 31, 2021 and for all preceding periods. The Company has adopted the current expected credit losses methodology, known as CECL, as of January 1, 2022.

Non-performing loans totaled $35.0 million at December 31, 2021 compared to $42.1 million at the end of the prior quarter. During the fourth quarter of 2021, the Company recorded total net charge-offs of $1.3 million, or 0.05% of average total loans on an annualized basis compared to $0.8 million and 0.03% in the prior quarter, respectively.

At December 31, 2021, approximately $106.7 million in COVID-19 modified loans remained under modified payment terms, down from $110.6 million at September 30, 2021. The commercial real estate portfolio contained $93.5 million of the remaining COVID-19 modifications at period end, of which $71.0 million or 76% were in the hotel segment.

Please refer to Appendix F for a detailed breakout of COVID-19 related loan modifications.

DIVIDENDS AND SHARE REPURCHASES

The Company’s Board of Directors has declared a quarterly cash dividend of $0.10 per common share. The dividend represents a $0.02, or 25%, increase from the dividend declared in the past three quarters, and will be payable on March 15, 2022, to shareholders of record as of the close of business on March 3, 2022.

The Company repurchased 1,135,878 shares of its common stock during the fourth quarter of 2021 at a weighted average price of $20.42 excluding commissions representing a total market value of $23.2 million. At December 31, 2021, there were 8,202,022 shares available for repurchase under the Company’s current repurchase program, which expires on November 30, 2022 and is limited to $225.0 million in total market value.

CONFERENCE CALL INFORMATION

A conference call and webcast covering Eastern’s fourth quarter 2021 earnings will be held on Friday, January 28, 2022 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (833) 233-4460 from within the U.S. or (647) 689-4543 if outside the U.S. and reference conference ID 7188051. The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website 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, 2021, Eastern Bank had approximately $24 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 businesses 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, 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) expenses indirectly associated with the Company’s initial public offering (“IPO”), (vii) other real estate owned (“OREO”) gains, (viii) merger and acquisition expenses, (ix) the stock donation to the EBF in connection with the Company’s mutual-to-stock conversion and IPO, and (x) settlement of putative consumer class action litigation matters related to overdraft and non-sufficient funds fees, and associated settlement expenses. 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 the Company’s core net interest margin which excludes the impact of items management determines as being one-time in nature or not indicative of its core operating results. Such items include the impact of excess liquidity in the form of excess cash volume, PPP loans originated in response to the COVID-19 pandemic, and material purchase accounting adjustments. Similarly, management presents certain asset quality metrics excluding PPP loans which it does not consider to be part of the Company’s core portfolios. These metrics include the ratio of total nonperforming loans to total loans excluding PPP loans, the ratio of the allowance for loan losses to total loans excluding PPP loans, and the ratio of annualized net charge-offs to average total loans excluding PPP loans. The Company anticipates that the vast majority of its PPP loans outstanding at December 31, 2021 will be forgiven, and to the extent not forgiven, a PPP loan is intended to be 100% guaranteed by the SBA.

Management also presents tangible assets, tangible shareholders’ equity, tangible book value per share, and the ratio of tangible shareholders’ equity to tangible assets, each of which excludes the impact of goodwill and other intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company included the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.

These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-E for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.

FORWARD-LOOKING STATEMENTS

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

Certain factors that could cause actual results to differ materially from expected results include 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 the interest rate environment, risks that revenue or expense synergies or the other expected benefits of the Company’s merger with Century (“Transaction”) may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that the Company is unable to successfully implement integration strategies; reputational risks and the reaction of customers to the Transaction; and diversion of management time on Transaction-related issues, as well as general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiary Eastern Bank are engaged, including inflation, interest rates, interest rate sensitivity and liquidity, 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 fluctuations due to actual or anticipated changes to federal tax laws; credit quality, 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.

Further, given the ongoing and dynamic nature of the COVID-19 pandemic, it is difficult to predict what continued effects the COVID-19 pandemic will have on the Company's business and results of operations. The COVID-19 pandemic and the related local and national economic disruption may result in a continued decline in demand for the Company's products and services; increased levels of loan delinquencies, problem assets and foreclosures; an increase in the Company's allowance for loan losses; a decline in the value of loan collateral, including real estate; reduced demand for office space in our markets due to remote and/or hybrid work arrangements; a greater decline in the yield on the Company's interest-earning assets than the decline in the cost of the Company's interest-bearing liabilities; and increased cybersecurity risks, as employees continue to work remotely. 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 amounts)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

 

 

 

 

 

 

Earnings data

 

 

 

 

 

Net interest income

$

122,437

 

$

102,691

 

$

104,608

 

$

100,091

 

$

103,608

 

Noninterest income

 

49,001

 

 

43,209

 

 

45,733

 

 

55,212

 

 

49,638

 

Total revenue

 

171,438

 

 

145,900

 

 

150,341

 

 

155,303

 

 

153,246

 

Noninterest expense

 

143,602

 

 

98,970

 

 

107,335

 

 

94,049

 

 

199,169

 

Pre-tax, pre-provision income (loss)

 

27,836

 

 

46,930

 

 

43,006

 

 

61,254

 

 

(45,923

)

(Release of) provision for allowance for loan losses

 

(4,318

)

 

(1,488

)

 

(3,300

)

 

(580

)

 

900

 

Pre-tax income (loss)

 

32,154

 

 

48,418

 

 

46,306

 

 

61,834

 

 

(46,823

)

Net income (loss)

 

35,087

 

 

37,106

 

 

34,809

 

 

47,663

 

 

(44,062

)

Operating net income (non-GAAP)

 

44,860

 

 

37,391

 

 

37,097

 

 

46,537

 

 

31,612

 

 

 

 

 

 

 

Per-share data

 

 

 

 

 

Earnings (loss) per share, basic

$

0.20

 

$

0.22

 

$

0.20

 

$

0.28

 

$

(0.26

)

Earnings (loss) per share, diluted

$

0.20

 

$

0.22

 

$

0.20

 

$

0.28

 

$

(0.26

)

Operating earnings per share, basic (non-GAAP)

$

0.26

 

$

0.22

 

$

0.22

 

$

0.27

 

$

0.18

 

Operating earnings per share, diluted (non-GAAP)

$

0.26

 

$

0.22

 

$

0.22

 

$

0.27

 

$

0.18

 

Book value per share

$

18.28

 

$

18.36

 

$

18.37

 

$

18.14

 

$

18.36

 

Tangible book value per share (non-GAAP)

$

14.80

 

$

16.33

 

$

16.33

 

$

16.12

 

$

16.34

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

Return on average assets (1)

 

0.67

%

 

0.84

%

 

0.83

%

 

1.19

%

 

(1.11

)%

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

 

0.86

%

 

0.86

%

 

0.89

%

 

1.15

%

 

0.79

%

Return on average shareholders' equity (1)

 

4.07

%

 

4.27

%

 

4.10

%

 

5.66

%

 

(5.61

)%

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

 

5.19

%

 

4.30

%

 

4.36

%

 

5.53

%

 

4.02

%

Net interest margin (FTE) (1)

 

2.54

%

 

2.53

%

 

2.69

%

 

2.71

%

 

2.84

%

Cost of deposits (1)

 

0.06

%

 

0.02

%

 

0.03

%

 

0.03

%

 

0.03

%

Fee income ratio

 

28.58

%

 

29.62

%

 

30.42

%

 

35.55

%

 

32.39

%

Efficiency ratio

 

83.76

%

 

67.83

%

 

71.39

%

 

60.56

%

 

129.97

%

Operating efficiency ratio (non-GAAP)

 

65.21

%

 

66.14

%

 

67.78

%

 

60.22

%

 

68.33

%

 

 

 

 

 

 

Balance Sheet (end of period)

 

 

 

 

 

Total assets

$

23,512,128

 

$

17,461,223

 

$

17,047,453

 

$

16,726,795

 

$

15,964,190

 

Total loans

 

12,281,510

 

 

9,504,562

 

 

9,621,075

 

 

9,916,475

 

 

9,730,525

 

Total deposits

 

19,628,311

 

 

13,649,964

 

 

13,250,433

 

 

12,980,875

 

 

12,155,784

 

Total loans / total deposits

 

63

%

 

70

%

 

73

%

 

76

%

 

80

%

PPP loans

$

331,385

 

$

533,965

 

$

825,784

 

$

1,238,053

 

$

1,026,117

 

 

 

 

 

 

 

Asset quality

 

 

 

 

 

Allowance for loan losses ("ALLL")

$

97,787

 

$

103,398

 

$

105,637

 

$

111,080

 

$

113,031

 

ALLL / total nonperforming loans ("NPLs")

 

279.53

%

 

245.77

%

 

253.74

%

 

252.72

%

 

261.33

%

Total NPLs / total loans

 

0.29

%

 

0.44

%

 

0.43

%

 

0.44

%

 

0.45

%

Total NPLs / total loans (excl. PPP loans) (non-GAAP)

 

0.29

%

 

0.47

%

 

0.47

%

 

0.51

%

 

0.50

%

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

 

0.05

%

 

0.03

%

 

0.09

%

 

0.06

%

 

0.13

%

NCOs / average total loans (excl. PPP loans) (non-GAAP) (1)

 

0.05

%

 

0.03

%

 

0.10

%

 

0.06

%

 

0.15

%

Remaining COVID-19 loan modifications (2)

$

106,657

 

$

110,596

 

$

149,805

 

$

178,430

 

$

332,682

 

 

 

 

 

 

 

Capital adequacy

 

 

 

 

 

Shareholders' equity / assets

 

14.49

%

 

19.64

%

 

20.12

%

 

20.25

%

 

21.47

%

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

 

12.06

%

 

17.85

%

 

18.30

%

 

18.42

%

 

19.58

%

 

 

 

 

 

 

(1) Presented on an annualized basis.

(2) See Appendix F: COVID-19 Related Loan Modifications

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

As of

 

Dec 31, 2021 change from

(Unaudited, dollars in thousands)

Dec 31,
2021

Sep 30,
2021

Dec 31,
2020

 

Sep 30,
2021

 

Dec 31,
2020

ASSETS

 

 

 

 

△ $

△ %

 

△ $

△ %

Cash and due from banks

$

144,634

 

$

78,805

 

$

116,591

 

 

65,829

 

84

%

 

28,043

 

24

%

Short-term investments

 

1,087,158

 

 

1,172,956

 

 

1,937,479

 

 

(85,798

)

(7

)%

 

(850,321

)

(44

)%

Cash and cash equivalents

 

1,231,792

 

 

1,251,761

 

 

2,054,070

 

 

(19,969

)

(2

)%

 

(822,278

)

(40

)%

Available for sale securities

 

8,511,224

 

 

5,689,312

 

 

3,183,861

 

 

2,821,912

 

50

%

 

5,327,363

 

167

%

Total securities

 

8,511,224

 

 

5,689,312

 

 

3,183,861

 

 

2,821,912

 

50

%

 

5,327,363

 

167

%

Loans held for sale

 

1,206

 

 

1,757

 

 

1,140

 

 

(551

)

(31

)%

 

66

 

6

%

Loans:

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

2,960,527

 

 

1,652,447

 

 

1,995,016

 

 

1,308,080

 

79

%

 

965,511

 

48

%

Commercial real estate

 

4,522,513

 

 

3,825,186

 

 

3,573,630

 

 

697,327

 

18

%

 

948,883

 

27

%

Commercial construction

 

222,328

 

 

243,146

 

 

305,708

 

 

(20,818

)

(9

)%

 

(83,380

)

(27

)%

Business banking

 

1,334,694

 

 

1,225,538

 

 

1,339,164

 

 

109,156

 

9

%

 

(4,470

)

%

Total commercial loans

 

9,040,062

 

 

6,946,317

 

 

7,213,518

 

 

2,093,745

 

30

%

 

1,826,544

 

25

%

Residential real estate

 

1,926,810

 

 

1,491,269

 

 

1,370,957

 

 

435,541

 

29

%

 

555,853

 

41

%

Consumer home equity

 

1,100,153

 

 

848,570

 

 

868,270

 

 

251,583

 

30

%

 

231,883

 

27

%

Other consumer

 

214,485

 

 

218,406

 

 

277,780

 

 

(3,921

)

(2

)%

 

(63,295

)

(23

)%

Total loans

 

12,281,510

 

 

9,504,562

 

 

9,730,525

 

 

2,776,948

 

29

%

 

2,550,985

 

26

%

Allowance for loan losses

 

(97,787

)

 

(103,398

)

 

(113,031

)

 

5,611

 

(5

)%

 

15,244

 

(13

)%

Unamortized prem./disc. and def. fees

 

(26,442

)

 

(23,104

)

 

(23,536

)

 

(3,338

)

14

%

 

(2,906

)

12

%

Net loans

 

12,157,281

 

 

9,378,060

 

 

9,593,958

 

 

2,779,221

 

30

%

 

2,563,323

 

27

%

Federal Home Loan Bank stock, at cost

 

10,904

 

 

10,601

 

 

8,805

 

 

303

 

3

%

 

2,099

 

24

%

Premises and equipment

 

80,984

 

 

44,048

 

 

49,398

 

 

36,936

 

84

%

 

31,586

 

64

%

Bank-owned life insurance

 

157,091

 

 

79,259

 

 

78,561

 

 

77,832

 

98

%

 

78,530

 

100

%

Goodwill and other intangibles, net

 

649,703

 

 

379,772

 

 

376,534

 

 

269,931

 

71

%

 

273,169

 

73

%

Deferred income taxes, net

 

76,535

 

 

34,135

 

 

13,229

 

 

42,400

 

124

%

 

63,306

 

479

%

Prepaid expenses

 

179,330

 

 

148,180

 

 

148,680

 

 

31,150

 

21

%

 

30,650

 

21

%

Other assets

 

456,078

 

 

444,338

 

 

455,954

 

 

11,740

 

3

%

 

124

 

%

Total assets

 

23,512,128

 

 

17,461,223

 

 

15,964,190

 

 

6,050,905

 

35

%

 

7,547,938

 

47

%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Demand

 

7,020,864

 

 

5,484,126

 

 

4,910,794

 

 

1,536,738

 

28

%

 

2,110,070

 

43

%

Interest checking accounts

 

4,478,566

 

 

2,693,276

 

 

2,380,497

 

 

1,785,290

 

66

%

 

2,098,069

 

88

%

Savings accounts

 

2,077,495

 

 

1,444,928

 

 

1,256,736

 

 

632,567

 

44

%

 

820,759

 

65

%

Money market investment

 

5,525,005

 

 

3,802,319

 

 

3,348,898

 

 

1,722,686

 

45

%

 

2,176,107

 

65

%

Certificates of deposit

 

526,381

 

 

225,315

 

 

258,859

 

 

301,066

 

134

%

 

267,522

 

103

%

Total deposits

 

19,628,311

 

 

13,649,964

 

 

12,155,784

 

 

5,978,347

 

44

%

 

7,472,527

 

61

%

Borrowed funds:

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

14,020

 

 

14,172

 

 

14,624

 

 

(152

)

(1

)%

 

(604

)

(4

)%

Escrow deposits of borrowers

 

20,258

 

 

15,900

 

 

13,425

 

 

4,358

 

27

%

 

6,833

 

51

%

Total borrowed funds

 

34,278

 

 

30,072

 

 

28,049

 

 

4,206

 

14

%

 

6,229

 

22

%

Other liabilities

 

443,187

 

 

351,895

 

 

352,305

 

 

91,292

 

26

%

 

90,882

 

26

%

Total liabilities

 

20,105,776

 

 

14,031,931

 

 

12,536,138

 

 

6,073,845

 

43

%

 

7,569,638

 

60

%

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Common shares

 

1,863

 

 

1,868

 

 

1,868

 

 

(5

)

%

 

(5

)

%

Additional paid-in capital

 

1,835,241

 

 

1,857,165

 

 

1,854,068

 

 

(21,924

)

(1

)%

 

(18,827

)

(1

)%

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

 

(142,709

)

 

(143,966

)

 

(147,725

)

 

1,257

 

(1

)%

 

5,016

 

(3

)%

Retained earnings

 

1,768,653

 

 

1,747,300

 

 

1,665,607

 

 

21,353

 

1

%

 

103,046

 

6

%

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

 

(56,696

)

 

(33,075

)

 

54,234

 

 

(23,621

)

71

%

 

(110,930

)

(205

)%

Total shareholders' equity

 

3,406,352

 

 

3,429,292

 

 

3,428,052

 

 

(22,940

)

(1

)%

 

(21,700

)

(1

)%

Total liabilities and shareholders' equity

 

23,512,128

 

 

17,461,223

 

 

15,964,190

 

 

6,050,905

 

35

%

 

7,547,938

 

47

%

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Three months ended

 

Three months ended Dec 31, 2021 change from
three months ended

(Unaudited, dollars in thousands, except share data)

Dec 31,
2021

Sep 30,
2021

Dec 31,
2020

 

Sep 30, 2021

 

Dec 31, 2020

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

△ $

△ %

 

△ $

△ %

Interest and fees on loans

$

101,275

 

$

86,735

 

$

93,767

 

 

14,540

 

17

%

 

7,508

 

8

%

Taxable interest and dividends on available for sale securities

 

21,335

 

 

14,314

 

 

8,493

 

 

7,021

 

49

%

 

12,842

 

151

%

Non-taxable interest and dividends on available for sale securities

 

1,815

 

 

1,848

 

 

1,879

 

 

(33

)

(2

)%

 

(64

)

(3

)%

Interest on federal funds sold and other short-term investments

 

452

 

 

571

 

 

584

 

 

(119

)

(21

)%

 

(132

)

(23

)%

Total interest and dividend income

 

124,877

 

 

103,468

 

 

104,723

 

 

21,409

 

21

%

 

20,154

 

19

%

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on deposits

 

2,398

 

 

736

 

 

1,070

 

 

1,662

 

226

%

 

1,328

 

124

%

Interest on borrowings

 

42

 

 

41

 

 

45

 

 

1

 

2

%

 

(3

)

(7

)%

Total interest expense

 

2,440

 

 

777

 

 

1,115

 

 

1,663

 

214

%

 

1,325

 

119

%

Net interest income

 

122,437

 

 

102,691

 

 

103,608

 

 

19,746

 

19

%

 

18,829

 

18

%

(Release of) provision for loan losses

 

(4,318

)

 

(1,488

)

 

900

 

 

(2,830

)

190

%

 

(5,218

)

(580

)%

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

 

126,755

 

 

104,179

 

 

102,708

 

 

22,576

 

22

%

 

24,047

 

23

%

Noninterest income:

 

 

 

 

 

 

 

 

 

Insurance commissions

 

20,937

 

 

21,956

 

 

22,437

 

 

(1,019

)

(5

)%

 

(1,500

)

(7

)%

Service charges on deposit accounts

 

7,261

 

 

5,935

 

 

6,046

 

 

1,326

 

22

%

 

1,215

 

20

%

Trust and investment advisory fees

 

6,541

 

 

6,310

 

 

5,502

 

 

231

 

4

%

 

1,039

 

19

%

Debit card processing fees

 

3,169

 

 

3,030

 

 

2,749

 

 

139

 

5

%

 

420

 

15

%

Interest rate swap income

 

512

 

 

881

 

 

2,538

 

 

(369

)

(42

)%

 

(2,026

)

(80

)%

Income (losses) from investments held in rabbi trusts

 

4,444

 

 

(289

)

 

5,535

 

 

4,733

 

(1638

)%

 

(1,091

)

(20

)%

Losses on trading securities, net

 

 

 

 

 

(1

)

 

 

%

 

1

 

(100

)%

Gains on sales of mortgage loans held for sale, net

 

561

 

 

717

 

 

3,334

 

 

(156

)

(22

)%

 

(2,773

)

(83

)%

Gains on sales of securities available for sale, net

 

 

 

1

 

 

3

 

 

(1

)

(100

)%

 

(3

)

(100

)%

Other

 

5,576

 

 

4,668

 

 

1,495

 

 

908

 

19

%

 

4,081

 

273

%

Total noninterest income

 

49,001

 

 

43,209

 

 

49,638

 

 

5,792

 

13

%

 

(637

)

(1

)%

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

96,362

 

 

66,238

 

 

70,310

 

 

30,124

 

45

%

 

26,052

 

37

%

Office occupancy and equipment

 

16,194

 

 

7,960

 

 

8,198

 

 

8,234

 

103

%

 

7,996

 

98

%

Data processing

 

12,947

 

 

12,191

 

 

11,354

 

 

756

 

6

%

 

1,593

 

14

%

Professional services

 

9,866

 

 

4,024

 

 

5,307

 

 

5,842

 

145

%

 

4,559

 

86

%

Charitable contributions

 

 

 

 

 

91,288

 

 

 

%

 

(91,288

)

(100

)%

Marketing

 

1,955

 

 

1,598

 

 

2,823

 

 

357

 

22

%

 

(868

)

(31

)%

Operational losses

 

1,557

 

 

1,279

 

 

763

 

 

278

 

22

%

 

794

 

104

%

Loan expenses

 

1,229

 

 

1,586

 

 

2,025

 

 

(357

)

(23

)%

 

(796

)

(39

)%

Federal Deposit Insurance Corporation ("FDIC") insurance

 

1,237

 

 

1,056

 

 

946

 

 

181

 

17

%

 

291

 

31

%

Amortization of intangible assets

 

726

 

 

629

 

 

755

 

 

97

 

15

%

 

(29

)

(4

)%

Other

 

1,529

 

 

2,409

 

 

5,400

 

 

(880

)

(37

)%

 

(3,871

)

(72

)%

Total noninterest expense

 

143,602

 

 

98,970

 

 

199,169

 

 

44,632

 

45

%

 

(55,567

)

(28

)%

Income (loss) before income tax (benefit) expense

 

32,154

 

 

48,418

 

 

(46,823

)

 

(16,264

)

(34

)%

 

78,977

 

(169

)%

Income tax (benefit) expense

 

(2,933

)

 

11,312

 

 

(2,761

)

 

(14,245

)

(126

)%

 

(172

)

6

%

Net income

 

35,087

 

 

37,106

 

 

(44,062

)

 

(2,019

)

(5

)%

 

79,149

 

(180

)%

 

 

 

 

 

 

 

 

 

 

Share data:

 

 

 

 

 

 

 

 

 

Earnings (loss) per share, basic

$

0.20

 

$

0.22

 

$

(0.26

)

 

 

 

 

 

 

Earnings (loss) per share, diluted

$

0.20

 

$

0.22

 

$

(0.26

)

 

 

 

 

 

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Twelve months ended

 

 

 

(Unaudited, dollars in thousands, except share data)

Dec 31, 2021

Dec 31, 2020

 

Change

 

 

 

 

 

 

Interest and dividend income:

 

 

 

△ $

△ %

Interest and fees on loans

$

367,585

 

$

372,152

 

 

(4,567

)

(1

)%

Taxable interest and dividends on available for sale securities

 

58,312

 

 

31,825

 

 

26,487

 

83

%

Non-taxable interest and dividends on available for sale securities

 

7,376

 

 

7,588

 

 

(212

)

(3

)%

Interest on federal funds sold and other short-term investments

 

1,886

 

 

1,757

 

 

129

 

7

%

Interest and dividends on trading securities

 

 

 

6

 

 

(6

)

(100

)%

Total interest and dividend income

 

435,159

 

 

413,328

 

 

21,831

 

5

%

Interest expense:

 

 

 

 

 

Interest on deposits

 

5,167

 

 

11,315

 

 

(6,148

)

(54

)%

Interest on borrowings

 

165

 

 

762

 

 

(597

)

(78

)%

Total interest expense

 

5,332

 

 

12,077

 

 

(6,745

)

(56

)%

Net interest income

 

429,827

 

 

401,251

 

 

28,576

 

7

%

(Release of) provision for loan losses

 

(9,686

)

 

38,800

 

 

(48,486

)

(125

)%

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

 

439,513

 

 

362,451

 

 

77,062

 

21

%

Noninterest income:

 

 

 

 

 

Insurance commissions

 

94,704

 

 

94,495

 

 

209

 

%

Service charges on deposit accounts

 

24,271

 

 

21,560

 

 

2,711

 

13

%

Trust and investment advisory fees

 

24,588

 

 

21,102

 

 

3,486

 

17

%

Debit card processing fees

 

12,118

 

 

10,277

 

 

1,841

 

18

%

Interest rate swap income (losses)

 

5,634

 

 

(1,381

)

 

7,015

 

(508

)%

Income from investments held in rabbi trusts

 

10,217

 

 

10,337

 

 

(120

)

(1

)%

Losses on trading securities, net

 

 

 

(4

)

 

4

 

(100

)%

Gains on sales of mortgage loans held for sale, net

 

3,605

 

 

7,066

 

 

(3,461

)

(49

)%

Gains on sales of securities available for sale, net

 

1,166

 

 

288

 

 

878

 

305

%

Other

 

16,852

 

 

14,633

 

 

2,219

 

15

%

Total noninterest income

 

193,155

 

 

178,373

 

 

14,782

 

8

%

Noninterest expense:

 

 

 

 

 

Salaries and employee benefits

 

295,916

 

 

261,827

 

 

34,089

 

13

%

Office occupancy and equipment

 

40,465

 

 

33,796

 

 

6,669

 

20

%

Data processing

 

50,839

 

 

45,259

 

 

5,580

 

12

%

Professional services

 

24,477

 

 

18,902

 

 

5,575

 

29

%

Charitable contributions

 

 

 

95,272

 

 

(95,272

)

(100

)%

Marketing

 

8,741

 

 

8,879

 

 

(138

)

(2

)%

Operational losses

 

7,786

 

 

2,493

 

 

5,293

 

212

%

Loan expenses

 

6,516

 

 

6,727

 

 

(211

)

(3

)%

FDIC insurance

 

4,226

 

 

3,734

 

 

492

 

13

%

Amortization of intangible assets

 

2,512

 

 

2,857

 

 

(345

)

(12

)%

Other

 

2,478

 

 

25,177

 

 

(22,699

)

(90

)%

Total noninterest expense

 

443,956

 

 

504,923

 

 

(60,967

)

(12

)%

Income before income tax expense

 

188,712

 

 

35,901

 

 

152,811

 

426

%

Income tax expense

 

34,047

 

 

13,163

 

 

20,884

 

159

%

Net income

 

154,665

 

 

22,738

 

 

131,927

 

580

%

 

 

 

 

 

 

Share data:

 

 

 

 

 

Weighted average common shares outstanding, basic (1)

 

172,192,336

 

 

171,812,535

 

 

 

 

Weighted average common shares outstanding, diluted (1)

 

172,252,057

 

 

171,812,535

 

 

 

 

Earnings per share, basic

$

0.90

 

$

0.13

 

 

 

 

Earnings per share, diluted

$

0.90

 

$

0.13

 

 

 

 

 

 

 

 

 

 

(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, YIELDS AND RATES, AND NET INTEREST MARGIN

 

 

As of and for the three months ended

 

Dec 31, 2021

 

Sep 30, 2021

 

Dec 31, 2020

(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

$

8,021,665

 

$

80,326

 

3.97

%

 

$

6,995,556

 

$

67,276

 

3.82

%

 

$

7,265,156

 

$

73,289

 

4.01

%

Residential

 

1,735,324

 

 

12,993

 

2.97

%

 

 

1,477,891

 

 

11,479

 

3.08

%

 

 

1,367,073

 

 

11,641

 

3.39

%

Consumer

 

1,189,106

 

 

9,683

 

3.23

%

 

 

1,055,075

 

 

8,803

 

3.31

%

 

 

1,164,468

 

 

9,621

 

3.29

%

Total loans

 

10,946,095

 

 

103,002

 

3.73

%

 

 

9,528,522

 

 

87,558

 

3.65

%

 

 

9,796,697

 

 

94,551

 

3.84

%

Investment securities

 

7,336,783

 

 

23,633

 

1.28

%

 

 

5,249,742

 

 

16,656

 

1.26

%

 

 

2,627,679

 

 

10,945

 

1.66

%

Federal funds sold and other short-term investments

 

1,201,223

 

 

452

 

0.15

%

 

 

1,503,919

 

 

570

 

0.15

%

 

 

2,291,118

 

 

584

 

0.10

%

Total interest-earning assets

 

19,484,101

 

 

127,087

 

2.59

%

 

 

16,282,183

 

 

104,784

 

2.55

%

 

 

14,715,494

 

 

106,080

 

2.87

%

Non-interest-earning assets

 

1,373,219

 

 

 

 

 

 

1,141,168

 

 

 

 

 

 

1,123,550

 

 

 

 

Total assets

$

20,857,320

 

 

 

 

 

$

17,423,351

 

 

 

 

 

$

15,839,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

$

1,800,862

 

$

61

 

0.01

%

 

$

1,441,385

 

$

36

 

0.01

%

 

$

1,232,669

 

$

62

 

0.02

%

Interest checking

 

3,830,427

 

 

1,267

 

0.13

%

 

 

2,687,196

 

 

244

 

0.04

%

 

 

2,282,786

 

 

232

 

0.04

%

Money market

 

4,743,313

 

 

788

 

0.07

%

 

 

3,762,855

 

 

360

 

0.04

%

 

 

3,362,335

 

 

609

 

0.07

%

Time deposits

 

388,511

 

 

281

 

0.29

%

 

 

233,145

 

 

96

 

0.16

%

 

 

267,378

 

 

167

 

0.25

%

Total interest-bearing deposits

 

10,763,113

 

 

2,397

 

0.09

%

 

 

8,124,581

 

 

736

 

0.04

%

 

 

7,145,168

 

 

1,070

 

0.06

%

Borrowings

 

29,204

 

 

42

 

0.57

%

 

 

26,074

 

 

41

 

0.62

%

 

 

25,529

 

 

45

 

0.70

%

Total interest-bearing liabilities

 

10,792,317

 

 

2,439

 

0.09

%

 

 

8,150,655

 

 

777

 

0.04

%

 

 

7,170,697

 

 

1,115

 

0.06

%

Demand deposit accounts

 

6,226,291

 

 

 

 

 

 

5,471,906

 

 

 

 

 

 

5,167,221

 

 

 

 

Other noninterest-bearing liabilities

 

415,481

 

 

 

 

 

 

350,111

 

 

 

 

 

 

376,197

 

 

 

 

Total liabilities

 

17,434,089

 

 

 

 

 

 

13,972,672

 

 

 

 

 

 

12,714,115

 

 

 

 

Shareholders' equity

 

3,423,231

 

 

 

 

 

 

3,450,679

 

 

 

 

 

 

3,124,929

 

 

 

 

Total liabilities and shareholders' equity

$

20,857,320

 

 

 

 

 

$

17,423,351

 

 

 

 

 

$

15,839,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

124,648

 

 

 

 

 

$

104,007

 

 

 

 

 

$

104,965

 

 

Net interest rate spread (2)

 

 

 

 

2.50

%

 

 

 

 

 

2.51

%

 

 

 

 

 

2.81

%

Net interest-earning assets (3)

$

8,691,784

 

 

 

 

 

$

8,131,528

 

 

 

 

 

$

7,544,797

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.54

%

 

 

 

 

 

2.53

%

 

 

 

 

 

2.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 represents net interest income divided by average total interest-earning assets.

(5) Presented on an annualized basis.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN

 

 

As of and for the twelve months ended

 

Dec 31, 2021

 

Dec 31, 2020

(Unaudited, dollars in thousands)

Avg.
Balance

 

Interest

 

Yield /
Cost

 

Avg.
Balance

 

Interest

 

Yield /
Cost

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans (1):

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

7,410,024

 

$

288,557

 

3.89

%

 

$

7,014,044

 

$

281,816

 

4.02

%

Residential

 

1,510,703

 

 

47,143

 

3.12

%

 

 

1,400,907

 

 

49,767

 

3.55

%

Consumer

 

1,103,042

 

 

36,019

 

3.27

%

 

 

1,236,893

 

 

43,729

 

3.54

%

Total loans

 

10,023,769

 

 

371,719

 

3.71

%

 

 

9,651,844

 

 

375,312

 

3.89

%

Investment securities

 

5,151,136

 

 

67,647

 

1.31

%

 

 

1,826,121

 

 

41,730

 

2.29

%

Federal funds sold and other short-term investments

 

1,514,351

 

 

1,886

 

0.12

%

 

 

1,288,714

 

 

1,758

 

0.14

%

Total interest earning assets

 

16,689,256

 

 

441,252

 

2.64

%

 

 

12,766,679

 

 

418,800

 

3.28

%

Non-interest-earning assets

 

1,173,830

 

 

 

 

 

 

1,097,064

 

 

 

 

Total assets

$

17,863,086

 

 

 

 

 

$

13,863,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Savings

$

1,483,271

 

$

230

 

0.02

%

 

$

1,123,584

 

$

242

 

0.02

%

Interest checking

 

2,866,091

 

 

1,997

 

0.07

%

 

 

2,227,185

 

 

2,033

 

0.09

%

Money market

 

3,870,712

 

 

2,342

 

0.06

%

 

 

3,212,752

 

 

7,492

 

0.23

%

Time deposits

 

280,141

 

 

598

 

0.21

%

 

 

300,381

 

 

1,548

 

0.52

%

Total interest-bearing deposits

 

8,500,215

 

 

5,167

 

0.06

%

 

 

6,863,902

 

 

11,315

 

0.16

%

Borrowings

 

26,495

 

 

165

 

0.62

%

 

 

72,101

 

 

762

 

1.06

%

Total interest-bearing liabilities

 

8,526,710

 

 

5,332

 

0.06

%

 

 

6,936,003

 

 

12,077

 

0.17

%

Demand deposit accounts

 

5,547,615

 

 

 

 

 

 

4,535,066

 

 

 

 

Other noninterest-bearing liabilities

 

364,191

 

 

 

 

 

 

352,518

 

 

 

 

Total liabilities

 

14,438,516

 

 

 

 

 

 

11,823,587

 

 

 

 

Shareholders' equity

 

3,424,570

 

 

 

 

 

 

2,040,156

 

 

 

 

Total liabilities and shareholders' equity

$

17,863,086

 

 

 

 

 

$

13,863,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

435,920

 

 

 

 

 

$

406,723

 

 

Net interest rate spread (2)

 

 

 

 

2.58

%

 

 

 

 

 

3.11

%

Net interest-earning assets (3)

$

8,162,546

 

 

 

 

 

$

5,830,676

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.61

%

 

 

 

 

 

3.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 represents net interest income divided by average total interest-earning assets.

 

 

 

 

 

 

 

 

 

 

 

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - NON-PERFORMING ASSETS (1)

 

 

As of

 

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

(Unaudited, dollars in thousands)

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

Commercial

$

20,630

 

$

29,166

 

$

29,356

 

$

30,275

 

$

30,059

 

Residential

 

6,681

 

 

7,185

 

 

6,445

 

 

8,127

 

 

6,815

 

Consumer

 

5,682

 

 

4,262

 

 

4,106

 

 

3,873

 

 

4,131

 

Total non-accrual loans

 

32,993

 

 

40,613

 

 

39,907

 

 

42,275

 

 

41,005

 

Accruing loans past due 90 days or more:

 

 

 

 

 

Commercial

 

1,196

 

 

1,171

 

 

1,439

 

 

1,390

 

 

1,959

 

Residential

 

769

 

 

278

 

 

277

 

 

280

 

 

279

 

Consumer

 

25

 

 

9

 

 

9

 

 

9

 

 

9

 

Total accruing loans past due 90 days or more

 

1,990

 

 

1,458

 

 

1,725

 

 

1,679

 

 

2,247

 

Total non-performing loans

 

34,983

 

 

42,071

 

 

41,632

 

 

43,954

 

 

43,252

 

Other real estate owned

 

 

 

 

 

38

 

 

 

 

 

Other non-performing assets:

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

34,983

 

$

42,071

 

$

41,670

 

$

43,954

 

$

43,252

 

Total accruing troubled debt restructured loans

$

33,336

 

$

34,723

 

$

38,316

 

$

39,367

 

$

41,095

 

Total non-performing loans to total loans

 

0.29

%

 

0.44

%

 

0.43

%

 

0.44

%

 

0.45

%

Total non-performing assets to total assets

 

0.15

%

 

0.24

%

 

0.24

%

 

0.26

%

 

0.27

%

 

 

 

 

 

 

(1) Non-performing assets are comprised of NPLs, 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.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE OFFS

 

 

Three months ended

 

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

(Unaudited, dollars in thousands)

 

 

 

 

 

Average total loans

$

10,946,095

 

$

9,528,522

 

$

9,796,701

 

$

9,816,788

 

$

9,796,697

 

Allowance for loan losses, beginning of the period

$

103,398

 

$

105,637

 

$

111,080

 

$

113,031

 

$

115,432

 

Charged-off loans:

 

 

 

 

 

Commercial and industrial

 

1,008

 

 

 

 

550

 

 

 

 

1,603

 

Commercial real estate

 

5

 

 

8

 

 

 

 

234

 

 

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

1,002

 

 

867

 

 

1,838

 

 

1,384

 

 

1,433

 

Residential real estate

 

35

 

 

 

 

 

 

 

 

 

Consumer home equity

 

24

 

 

 

 

 

 

 

 

79

 

Other consumer

 

666

 

 

742

 

 

275

 

 

364

 

 

713

 

Total charged-off loans

 

2,740

 

 

1,617

 

 

2,663

 

 

1,982

 

 

3,828

 

Recoveries on loans previously charged-off:

 

 

 

 

 

Commercial and industrial

 

873

 

 

40

 

 

13

 

 

9

 

 

92

 

Commercial real estate

 

 

 

 

 

4

 

 

 

 

220

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

399

 

 

469

 

 

291

 

 

365

 

 

47

 

Residential real estate

 

7

 

 

88

 

 

17

 

 

10

 

 

9

 

Consumer home equity

 

48

 

 

63

 

 

3

 

 

71

 

 

100

 

Other consumer

 

120

 

 

206

 

 

192

 

 

156

 

 

59

 

Total recoveries

 

1,447

 

 

866

 

 

520

 

 

611

 

 

527

 

Net loans charged-off (recoveries):

 

 

 

 

 

Commercial and industrial

 

135

 

 

(40

)

 

537

 

 

(9

)

 

1,511

 

Commercial real estate

 

5

 

 

8

 

 

(4

)

 

234

 

 

(220

)

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

603

 

 

398

 

 

1,547

 

 

1,019

 

 

1,386

 

Residential real estate

 

28

 

 

(88

)

 

(17

)

 

(10

)

 

(9

)

Consumer home equity

 

(24

)

 

(63

)

 

(3

)

 

(71

)

 

(21

)

Other consumer

 

546

 

 

536

 

 

83

 

 

208

 

 

654

 

Total net loans charged-off

 

1,293

 

 

751

 

 

2,143

 

 

1,371

 

 

3,301

 

(Release of) provision for loan losses

 

(4,318

)

 

(1,488

)

 

(3,300

)

 

(580

)

 

900

 

Total allowance for loan losses, end of period

$

97,787

 

$

103,398

 

$

105,637

 

$

111,080

 

$

113,031

 

Net charge-offs to average total loans outstanding during this period (1)

 

0.05

%

 

0.03

%

 

0.09

%

 

0.06

%

 

0.13

%

Allowance for loan losses as a percent of total loans

 

0.80

%

 

1.09

%

 

1.10

%

 

1.12

%

 

1.16

%

Allowance for loan losses as a percent of nonperforming loans

 

279.53

%

 

245.77

%

 

253.74

%

 

252.72

%

 

261.33

%

 

 

 

 

 

 

(1) 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."

 

 

Three Months Ended

(Unaudited, dollars in thousands, except share data)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

 

 

 

 

 

 

Net income (GAAP)

$

35,087

 

$

37,106

 

$

34,809

 

$

47,663

 

$

(44,062

)

Add:

 

 

 

 

 

Noninterest income components:

 

 

 

 

 

(Income) losses from investments held in rabbi trusts

 

(4,444

)

 

289

 

 

(4,216

)

 

(1,846

)

 

(5,535

)

Gains on sales of securities available for sale, net

 

 

 

(1

)

 

(1

)

 

(1,164

)

 

(3

)

Gains on sales of other assets

 

(34

)

 

(490

)

 

(29

)

 

(18

)

 

(49

)

Noninterest expense components:

 

 

 

 

 

Rabbi trust employee benefit expense (income)

 

2,519

 

 

(53

)

 

2,063

 

 

986

 

 

2,838

 

Impairment charge (reversal) on tax credit investments

 

116

 

 

1,133

 

 

(1,419

)

 

 

 

3,189

 

Gain on sale of OREO

 

 

 

(87

)

 

 

 

 

 

(61

)

Merger and acquisition expenses

 

30,652

 

 

740

 

 

3,479

 

 

589

 

 

90

 

Settlement and expenses for putative consumer class action matters

 

 

 

 

 

3,325

 

 

 

 

 

Stock donation to the EBF

 

 

 

 

 

 

 

 

 

91,287

 

Total impact of non-GAAP adjustments

 

28,809

 

 

1,531

 

 

3,202

 

 

(1,453

)

 

91,756

 

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

 

19,036

 

 

1,246

 

 

914

 

 

(327

)

 

16,082

 

Non-GAAP adjustments, net of tax

$

9,773

 

$

285

 

$

2,288

 

$

(1,126

)

$

75,674

 

Operating net income (non-GAAP)

$

44,860

 

$

37,391

 

$

37,097

 

$

46,537

 

$

31,612

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

172,246,799

 

 

172,298,615

 

 

172,173,707

 

 

172,049,044

 

 

171,812,535

 

Diluted

 

172,481,829

 

 

172,298,615

 

 

172,173,707

 

 

172,049,044

 

 

171,812,535

 

 

 

 

 

 

 

Earnings (loss) per share, basic

$

0.20

 

$

0.22

 

$

0.20

 

$

0.28

 

$

(0.26

)

Earnings (loss) per share, diluted

$

0.20

 

$

0.22

 

$

0.20

 

$

0.28

 

$

(0.26

)

 

 

 

 

 

 

Operating earnings per share, basic (non-GAAP)

$

0.26

 

$

0.22

 

$

0.22

 

$

0.27

 

$

0.18

 

Operating earnings per share, diluted (non-GAAP)

$

0.26

 

$

0.22

 

$

0.22

 

$

0.27

 

$

0.18

 

 

 

 

 

 

 

Return on average assets (3)

 

0.67

%

 

0.84

%

 

0.83

%

 

1.19

%

 

(1.11

)%

Add:

 

 

 

 

 

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

 

(0.08

)%

 

0.01

%

 

(0.10

)%

 

(0.05

)%

 

(0.14

)%

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

 

%

 

%

 

%

 

(0.03

)%

 

%

Gains on sales of other assets (3)

 

%

 

(0.01

)%

 

%

 

%

 

%

Rabbi trust employee benefit expense (income) (3)

 

0.05

%

 

%

 

0.05

%

 

0.02

%

 

0.07

%

Impairment charge (reversal) on tax credit investments (3)

 

%

 

0.03

%

 

(0.03

)%

 

%

 

0.08

%

Gain on sale of OREO (3)

 

%

 

%

 

%

 

%

 

%

Merger and acquisition expenses (3)

 

0.58

%

 

0.02

%

 

0.08

%

 

0.01

%

 

%

Settlement and expenses for putative consumer class action matters (3)

 

%

 

%

 

0.08

%

 

%

 

%

Stock donation to the EBF (3)

 

%

 

%

 

%

 

%

 

2.29

%

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

 

0.36

%

 

0.03

%

 

0.02

%

 

(0.01

)%

 

0.40

%

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

 

0.86

%

 

0.86

%

 

0.89

%

 

1.15

%

 

0.79

%

 

 

 

 

 

 

Return on average shareholders' equity (3)

 

4.07

%

 

4.27

%

 

4.10

%

 

5.66

%

 

(5.61

)%

Add:

 

 

 

 

 

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

 

(0.52

)%

 

0.03

%

 

(0.50

)%

 

(0.22

)%

 

(0.70

)%

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

 

%

 

%

 

%

 

(0.14

)%

 

%

Gains on sale of other assets (3)

 

%

 

(0.06

)%

 

%

 

%

 

(0.01

)%

Rabbi trust employee benefit expense (income) (3)

 

0.29

%

 

(0.01

)%

 

0.24

%

 

0.12

%

 

0.36

%

Impairment charge (reversal) on tax credit investments (3)

 

0.01

%

 

0.13

%

 

(0.17

)%

 

%

 

0.41

%

Gain on sale of OREO (3)

 

%

 

(0.01

)%

 

%

 

%

 

(0.01

)%

Merger and acquisition expenses (3)

 

3.55

%

 

0.09

%

 

0.41

%

 

0.07

%

 

0.01

%

Settlement and expenses for putative consumer class action matters (3)

 

%

 

%

 

0.39

%

 

%

 

%

Stock donation to the EBF (3)

 

%

 

%

 

%

 

%

 

11.62

%

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

 

2.21

%

 

0.14

%

 

0.11

%

 

(0.04

)%

 

2.05

%

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

 

5.19

%

 

4.30

%

 

4.36

%

 

5.53

%

 

4.02

%

 

 

 

 

 

 

(1) The net tax benefit (expense) 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 Q4 2020 net tax benefit amount reflects the impact of the $12.0 million valuation allowance associated with the stock donation to the Eastern Bank Foundation. The Q4 2021 net tax benefit amount reflects the impact of the release of $11.3 million of the $12.0 million valuation allowance associated with the stock donation to the Eastern Bank Foundation.

(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, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

(Unaudited, dollars in thousands)

 

 

 

 

 

Net interest income (GAAP)

$

122,437

 

$

102,691

 

$

104,608

 

$

100,091

 

$

103,608

 

Add:

 

 

 

 

 

Tax-equivalent adjustment (non-GAAP)

 

2,211

 

 

1,316

 

 

1,269

 

 

1,297

 

 

1,357

 

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

$

124,648

 

$

104,007

 

$

105,877

 

$

101,388

 

$

104,965

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

49,001

 

$

43,209

 

$

45,733

 

$

55,212

 

$

49,638

 

Less:

 

 

 

 

 

Income (losses) from investments held in rabbi trusts

 

4,444

 

 

(289

)

 

4,216

 

 

1,846

 

 

5,535

 

Gains on sales of securities available for sale, net

 

 

 

1

 

 

1

 

 

1,164

 

 

3

 

Gains on sales of other assets

 

34

 

 

490

 

 

29

 

 

18

 

 

49

 

Noninterest income on an operating basis (non-GAAP)

$

44,523

 

$

43,007

 

$

41,487

 

$

52,184

 

$

44,051

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

143,602

 

$

98,970

 

$

107,335

 

$

94,049

 

$

199,169

 

Less:

 

 

 

 

 

Rabbi trust employee benefit expense (income)

 

2,519

 

 

(53

)

 

2,063

 

 

986

 

 

2,838

 

Impairment charge (reversal) on tax credit investments

 

116

 

 

1,133

 

 

(1,419

)

 

 

 

3,189

 

Gain on sale of OREO

 

 

 

(87

)

 

 

 

 

 

(61

)

Merger and acquisition expenses

 

30,652

 

 

740

 

 

3,479

 

 

589

 

 

90

 

Settlement and expenses for putative consumer class action matters

 

 

 

 

 

3,325

 

 

 

 

 

Stock donation to the EBF

 

 

 

 

 

 

 

 

 

91,287

 

Noninterest expense on an operating basis (non-GAAP)

$

110,315

 

$

97,237

 

$

99,887

 

$

92,474

 

$

101,826

 

 

 

 

 

 

 

Total revenue (GAAP)

$

171,438

 

$

145,900

 

$

150,341

 

$

155,303

 

$

153,246

 

Total operating revenue (non-GAAP)

$

169,171

 

$

147,014

 

$

147,364

 

$

153,572

 

$

149,016

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

83.76

%

 

67.83

%

 

71.39

%

 

60.56

%

 

129.97

%

Operating efficiency ratio (non-GAAP)

 

65.21

%

 

66.14

%

 

67.78

%

 

60.22

%

 

68.33

%

 

 

 

 

 

 

Noninterest income / total revenue (GAAP)

 

28.58

%

 

29.62

%

 

30.42

%

 

35.55

%

 

32.39

%

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

 

26.32

%

 

29.25

%

 

28.15

%

 

33.98

%

 

29.56

%

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, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

(Unaudited, dollars in thousands, except share data)

 

 

 

 

 

Tangible shareholders' equity:

 

 

 

 

 

Total shareholders' equity (GAAP)

$

3,406,352

 

$

3,429,292

 

$

3,430,622

 

$

3,387,045

 

$

3,428,052

 

Less: Goodwill and other intangibles

 

649,703

 

 

379,772

 

 

380,402

 

 

376,002

 

 

376,534

 

Tangible shareholders' equity (non-GAAP)

 

2,756,649

 

 

3,049,520

 

 

3,050,220

 

 

3,011,043

 

 

3,051,518

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

Total assets (GAAP)

 

23,512,128

 

 

17,461,223

 

 

17,047,453

 

 

16,726,795

 

 

15,964,190

 

Less: Goodwill and other intangibles

 

649,703

 

 

379,772

 

 

380,402

 

 

376,002

 

 

376,534

 

Tangible assets (non-GAAP)

$

22,862,425

 

$

17,081,451

 

$

16,667,051

 

$

16,350,793

 

$

15,587,656

 

 

 

 

 

 

 

Shareholders' equity to assets ratio (GAAP)

 

14.49

%

 

19.64

%

 

20.12

%

 

20.25

%

 

21.47

%

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

 

12.06

%

 

17.85

%

 

18.30

%

 

18.42

%

 

19.58

%

 

 

 

 

 

 

Common shares outstanding

 

186,305,332

 

 

186,758,154

 

 

186,758,154

 

 

186,758,154

 

 

186,758,154

 

 

 

 

 

 

 

Book value per share (GAAP)

$

18.28

 

$

18.36

 

$

18.37

 

$

18.14

 

$

18.36

 

Tangible book value per share (non-GAAP)

$

14.80

 

$

16.33

 

$

16.33

 

$

16.12

 

$

16.34

 

APPENDIX D: Reconciliation of Non-GAAP Credit Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

 

As of

(Unaudited, dollars in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

 

 

 

 

 

 

Total loans excluding PPP loans:

 

 

 

 

 

Total loans (GAAP) (1)

$

12,255,068

 

$

9,481,458

 

$

9,591,336

 

$

9,883,802

 

$

9,706,989

 

Less: PPP loans (1)

 

321,215

 

 

514,018

 

 

799,964

 

 

1,210,598

 

 

1,007,487

 

Total loans excluding PPP loans (non-GAAP)

$

11,933,853

 

$

8,967,440

 

$

8,791,372

 

$

8,673,204

 

$

8,699,502

 

 

 

 

 

 

 

Total nonperforming loans (NPLs) (GAAP)

$

34,983

 

$

42,071

 

$

41,632

 

$

43,954

 

$

43,252

 

 

 

 

 

 

 

Total NPLs / total loans (GAAP)

 

0.29

%

 

0.44

%

 

0.43

%

 

0.44

%

 

0.45

%

Total NPLs / total loans (excl. PPP loans) (non-GAAP)

 

0.29

%

 

0.47

%

 

0.47

%

 

0.51

%

 

0.50

%

 

 

 

 

 

 

Allowance for loan losses (ALLL) (GAAP)

$

97,787

 

$

103,398

 

$

105,637

 

$

111,080

 

$

113,031

 

 

 

 

 

 

 

ALLL / total loans (GAAP)

 

0.80

%

 

1.09

%

 

1.10

%

 

1.12

%

 

1.16

%

ALLL / total loans (excl. PPP loans) (non-GAAP)

 

0.82

%

 

1.15

%

 

1.20

%

 

1.28

%

 

1.30

%

 

 

 

 

 

 

 

As of and for the three months ended

(Unaudited, dollars in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

 

 

 

 

 

 

Average total loans excluding PPP Loans:

 

 

 

 

 

Average total loans (GAAP)

$

10,946,095

 

$

9,528,522

 

$

9,796,701

 

$

9,816,788

 

$

9,796,697

 

Less: Average PPP loans

 

419,894

 

 

649,443

 

 

1,073,688

 

 

1,131,516

 

 

1,076,155

 

Average total loans excluding PPP loans (non-GAAP)

$

10,526,201

 

$

8,879,079

 

$

8,723,013

 

$

8,685,272

 

$

8,720,542

 

 

 

 

 

 

 

Total net loans charged-off (NCOs) (GAAP)

$

1,293

 

$

751

 

$

2,143

 

$

1,371

 

$

3,301