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Eastern Bankshares, Inc. Reports Second Quarter 2022 Financial Results

July, 28, 2022

Company Declares Quarterly Cash 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 2022 second quarter financial results and the declaration of a quarterly cash dividend. Net income for the second quarter of 2022 was $51.2 million, or $0.31 per diluted share, compared to net income of $51.5 million, or $0.30 per diluted share, reported for the first quarter of 2022. Operating net income* for the second quarter of 2022 was $52.5 million, or $0.32 per diluted share, compared to $55.1 million, or $0.32 per diluted share, reported for the prior quarter.

“Our financial results for the second quarter were strong, with net interest income benefiting from the combination of the rising rate environment and our asset-sensitive balance sheet,” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. “Our net interest margin expanded by twenty-one basis points from the prior quarter, driving an eight percent increase in net interest income and record quarterly revenue. Loan growth was also strong, as we achieved double-digit annualized growth in each of our major lending categories while maintaining excellent credit quality and underwriting standards. We remain focused on achieving our strategic priorities and are optimistic about the strength and resiliency of our local economy."

HIGHLIGHTS FOR THE SECOND QUARTER OF 2022

  • Operating net income* of $52.5 million, or $0.32 per diluted share, for the second quarter of 2022 was 42% higher than the comparable prior year quarter.
  • Net interest income of $137.8 million for the second quarter of 2022 was 8% higher than the prior quarter and 32% higher than the comparable prior year quarter.
  • The net interest margin on a fully tax equivalent (“FTE”) basis* of 2.63% for the second quarter was 21 basis points higher than the prior quarter.
  • The cost of deposits was 6 basis points in the second quarter, a decrease of one basis point from the prior quarter.
  • Loan growth excluding Paycheck Protection Program (“PPP”) loans was 10.5% on an annualized basis, and included double-digit annualized growth in commercial (excluding PPP loans), residential, and consumer lending.
  • The Company repurchased 4,216,469 shares of its common stock during the second quarter of 2022 at a weighted average price of $19.24 excluding commissions, for an aggregate purchase price of $81.1 million.

The results for the comparable prior year quarter do not reflect the Company’s acquisition of Century Bancorp, Inc. (“Century”), which was completed on November 12, 2021.

BALANCE SHEET

Total assets were $22.4 billion at June 30, 2022, representing a decrease of $485.2 million, or 2%, from March 31, 2022.

  • Total securities decreased $287.2 million, or 3%, from the prior quarter, to $8.0 billion, primarily due to a decline in the market value of available for sale securities driven by higher interest rates. Cash and equivalents declined $461.6 million from the prior quarter to $368.9 million.
  • Total loans were $12.4 billion, representing an increase of $216.5 million, or 2%, from the prior quarter. The increase was driven by strong loan growth in all categories, partially offset by PPP loan paydowns of $98.7 million. Excluding PPP loans, commercial loans grew $218.6 million, residential loans grew $53.4 million and consumer loans grew $43.1 million, reflecting growth of 10.0%, 11.1%, and 13.3%, respectively, on an annualized basis.
  • Deposits totaled $19.2 billion, representing a decrease of $229.0 million, or 1%, from the prior quarter. Deposits declined by approximately $300 million on April 1, 2022 in connection with the previously announced transfer to Needham Bank of the Company’s cannabis and money services business originally acquired through the Century transaction.
  • Shareholders’ equity was $2.7 billion, representing a decrease of $290.0 million from the prior quarter driven primarily by decreases in accumulated other comprehensive income of $248.5 million and additional paid-in capital of $77.2 million and partially offset by an increase in retained earnings of $34.5 million. Please refer to Appendix D to this press release for a roll forward of tangible shareholders’ equity*.
  • At June 30, 2022, book value per share was $15.17 and tangible book value per share* was $11.52.

NET INTEREST INCOME

Net interest income was $137.8 million for the second quarter of 2022, compared to $128.1 million in the prior quarter, representing an increase of $9.6 million from the prior quarter.

  • The increase in net interest income on a consecutive quarter basis was primarily due to an increase in the net interest margin, which benefited primarily from higher short-term interest rates. This was partially offset by a decline in average interest-earning asset balances of $410.7 million from the prior quarter, attributable to a lower average cash balance for the period, which was driven by lower average deposits.
  • The net interest margin on a FTE basis* was 2.63% for the second quarter, representing a 21 basis point increase from the prior quarter, as asset yields benefited from higher interest rates in the period, partially offset by lower net PPP fee accretion compared to the prior quarter.
  • Included in net interest income in the second quarter and prior quarter, respectively, was $2.5 million and $5.8 million of PPP fee accretion net of deferred cost amortization. During the second quarter, $98.7 million in PPP loans were forgiven by the U.S. Small Business Administration or otherwise paid down, compared to $190.2 million in the prior quarter.

NONINTEREST INCOME

Noninterest income was $41.9 million for the second quarter of 2022, compared to $46.4 million for the prior quarter, representing a decrease of $4.5 million. Noninterest income on an operating basis* was $48.0 million for the second quarter of 2022, compared to $53.3 million for the prior quarter, a decrease of $5.2 million.

  • Insurance commissions decreased $4.0 million to $24.7 million in the second quarter, compared to $28.7 million in the prior quarter, driven by lower annual incentive payments received. Compared to the comparable prior year quarter, insurance commissions increased $1.0 million, or 4%.
  • Service charges on deposit accounts decreased $0.2 million on a consecutive quarter basis to $8.3 million.
  • Trust and investment advisory fees decreased $0.1 million on a consecutive quarter basis to $6.0 million.
  • Debit card processing fees increased $0.3 million on a consecutive quarter basis to $3.2 million.
  • Loan-level interest rate swap income was $1.6 million in the second quarter, compared to $2.9 million in the prior quarter, representing a decrease of $1.3 million. The decrease was driven by a $0.8 million decrease in the fair value adjustment of such interest rate swap transactions and a $0.5 million decrease in cash income due to lower swap transaction volume.
  • Losses from investments held in rabbi trust accounts were $7.3 million in the second quarter compared to losses of $4.4 million in the prior quarter due to weaker investment performance in the period as compared to the prior quarter.
  • Realized losses on available for sale securities were $0.1 million in the second quarter compared to $2.2 million in the prior quarter.
  • Other noninterest income increased $1.9 million in the second quarter to $5.4 million, due primarily to increases in income on bank owned life insurance policies, gains on the sale of fixed assets, and other miscellaneous fee income.

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

NONINTEREST EXPENSE

Noninterest expense was $111.1 million for the second quarter of 2022, compared to $108.9 million in the prior quarter, representing an increase of $2.3 million. Noninterest expense on an operating basis* for the second quarter of 2022 was $114.4 million, compared to $110.9 million in the prior quarter, an increase of $3.5 million.

  • Salaries and employee benefits expense was $73.0 million in the second quarter, representing an increase of $3.5 million from the prior quarter, primarily due to an increase in equity award and incentive compensation expense which was partially offset by a decrease in benefits expense primarily attributable to the lower market value of investments held in rabbi trust accounts associated with the Company’s defined contribution supplemental executive retirement plan.
  • Office occupancy and equipment expense was $9.9 million in the second quarter, a decrease of $1.7 million from the prior quarter, in part due to lower costs related to Century compared to the prior quarter.
  • Data processing expenses were $14.3 million in the second quarter, a decrease of $1.0 million from the prior quarter, primarily due to lower core data processing expenses.
  • Professional services expense was $4.0 million in the second quarter, a decrease of $0.7 million from the prior quarter due primarily to lower legal fees and other professional fees.
  • Marketing expense was $2.7 million in the second quarter, an increase of $1.1 million from the prior quarter, primarily due to higher advertising expenses in the period.

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 $125.5 million at June 30, 2022, or 1.01% of total loans, compared to $124.2 million or 1.02% of total loans at March 31, 2022. The Company recorded a provision for the allowance for loan losses totaling $1.1 million in the second quarter of 2022.

Non-performing loans totaled $59.9 million at June 30, 2022 compared to $33.8 million at the end of the prior quarter. The increase from the prior quarter was primarily attributable to the migration to nonaccrual status of one syndicated credit facility which is in an active workout process. During the second quarter of 2022, the Company recorded total net recoveries of $0.3 million, or 0.01% of average total loans on an annualized basis, compared to net charge-offs of $0.2 million or 0.01% of average total loans in the prior quarter, respectively.

At June 30, 2022, approximately $19.9 million in COVID-19 modified loans remained under modified payment terms, down from $49.0 million at March 31, 2022. The commercial real estate portfolio contained $12.8 million of the remaining COVID-19 modifications at period end, all of which were in the hotel segment.

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 September 15, 2022 to shareholders of record as of the close of business on September 2, 2022.

The Company repurchased 4,216,469 shares of its common stock during the second quarter of 2022 at a weighted average price of $19.24 excluding commissions, for an aggregate purchase price of $81.1 million. Beginning in the fourth quarter of 2021 and through June 30, 2022, the Company had repurchased 8,218,968 shares of its common stock in total under the Company’s current repurchase authorization at a weighted average price of $20.06 excluding commissions, for an aggregate purchase price of $164.9 million. At June 30, 2022, there were 1,118,932 shares available for repurchase and $60.1 million in total market value remaining under the Company’s current repurchase authorization, 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 second quarter 2022 earnings will be held on Friday, July 29, 2022 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 97071632. 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 June 30, 2022, Eastern Bank had approximately $22 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, 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) 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 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 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; risks that the Company is unable to successfully implement integration strategies for the Transaction; 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 and related compliance costs 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 the Company’s 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)

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

 

 

 

 

 

 

Earnings data

 

 

 

 

 

Net interest income

$

137,757

 

$

128,124

 

$

122,437

 

$

102,691

 

$

104,608

 

Noninterest income

 

41,877

 

 

46,415

 

 

49,001

 

 

43,209

 

 

45,733

 

Total revenue

 

179,634

 

 

174,539

 

 

171,438

 

 

145,900

 

 

150,341

 

Noninterest expense

 

111,139

 

 

108,866

 

 

143,602

 

 

98,970

 

 

107,335

 

Pre-tax, pre-provision income

 

68,495

 

 

65,673

 

 

27,836

 

 

46,930

 

 

43,006

 

Provision for (release of) allowance for loan losses

 

1,050

 

 

(485

)

 

(4,318

)

 

(1,488

)

 

(3,300

)

Pre-tax income

 

67,445

 

 

66,158

 

 

32,154

 

 

48,418

 

 

46,306

 

Net income

 

51,172

 

 

51,516

 

 

35,087

 

 

37,106

 

 

34,809

 

Operating net income (non-GAAP)

 

52,518

 

 

55,107

 

 

44,860

 

 

37,391

 

 

37,097

 

 

 

 

 

 

 

Per-share data

 

 

 

 

 

Earnings per share, basic

$

0.31

 

$

0.30

 

$

0.20

 

$

0.22

 

$

0.20

 

Earnings per share, diluted

$

0.31

 

$

0.30

 

$

0.20

 

$

0.22

 

$

0.20

 

Operating earnings per share, basic (non-GAAP)

$

0.32

 

$

0.32

 

$

0.26

 

$

0.22

 

$

0.22

 

Operating earnings per share, diluted (non-GAAP)

$

0.32

 

$

0.32

 

$

0.26

 

$

0.22

 

$

0.22

 

Book value per share

$

15.17

 

$

16.40

 

$

18.28

 

$

18.36

 

$

18.37

 

Tangible book value per share (non-GAAP)

$

11.52

 

$

12.83

 

$

14.80

 

$

16.33

 

$

16.33

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

Return on average assets (1)

 

0.92

%

 

0.90

%

 

0.67

%

 

0.84

%

 

0.83

%

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

 

0.94

%

 

0.96

%

 

0.86

%

 

0.86

%

 

0.89

%

Return on average shareholders' equity (1)

 

7.16

%

 

6.38

%

 

4.07

%

 

4.27

%

 

4.10

%

Operating return on average shareholders' equity (1)

 

7.34

%

 

6.82

%

 

5.19

%

 

4.30

%

 

4.36

%

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

 

9.28

%

 

7.96

%

 

4.80

%

 

4.79

%

 

4.61

%

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

 

9.53

%

 

8.53

%

 

6.14

%

 

4.84

%

 

4.91

%

Net interest margin (FTE) (1)

 

2.63

%

 

2.42

%

 

2.54

%

 

2.53

%

 

2.69

%

Cost of deposits (1)

 

0.06

%

 

0.07

%

 

0.06

%

 

0.02

%

 

0.03

%

Fee income ratio

 

23.31

%

 

26.59

%

 

28.58

%

 

29.62

%

 

30.42

%

Efficiency ratio

 

61.87

%

 

62.37

%

 

83.76

%

 

67.83

%

 

71.39

%

Operating efficiency ratio (non-GAAP)

 

60.61

%

 

60.39

%

 

65.21

%

 

66.14

%

 

67.78

%

 

 

 

 

 

 

Balance Sheet (end of period)

 

 

 

 

 

Total assets

$

22,350,848

 

$

22,836,072

 

$

23,512,128

 

$

17,461,223

 

$

17,047,453

 

Total loans

 

12,398,694

 

 

12,182,203

 

 

12,281,510

 

 

9,504,562

 

 

9,621,075

 

Total deposits

 

19,163,801

 

 

19,392,816

 

 

19,628,311

 

 

13,649,964

 

 

13,250,433

 

Total loans / total deposits

 

65

%

 

63

%

 

63

%

 

70

%

 

73

%

PPP loans

$

42,463

 

$

141,166

 

$

331,385

 

$

533,965

 

$

825,784

 

 

 

 

 

 

 

Asset quality

 

 

 

 

 

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

$

125,531

 

$

124,166

 

$

97,787

 

$

103,398

 

$

105,637

 

ALLL / total nonperforming loans ("NPLs")

 

209.64

%

 

367.13

%

 

279.53

%

 

245.77

%

 

253.74

%

Total NPLs / total loans

 

0.48

%

 

0.28

%

 

0.29

%

 

0.44

%

 

0.43

%

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

 

(0.01

) %

 

0.01

%

 

0.05

%

 

0.03

%

 

0.09

%

Remaining COVID-19 loan modifications

$

19,914

 

$

49,033

 

$

106,657

 

$

110,596

 

$

149,805

 

 

 

 

 

 

 

Capital adequacy

 

 

 

 

 

Shareholders' equity / assets

 

12.16

%

 

13.17

%

 

14.49

%

 

19.64

%

 

20.12

%

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

 

9.52

%

 

10.61

%

 

12.06

%

 

17.85

%

 

18.30

%

(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

 

Jun 30, 2022 change from

(Unaudited, dollars in thousands)

Jun 30, 2022

Mar 31, 2022

Jun 30, 2021

 

Mar 31, 2022

 

Jun 30, 2021

ASSETS

 

 

 

 

△ $

△ %

 

△ $

△ %

Cash and due from banks

$

100,309

 

$

118,362

 

$

58,490

 

 

 

(18,053

)

(15

) %

 

 

41,819

 

71

%

Short-term investments

 

268,605

 

 

712,132

 

 

1,505,757

 

 

 

(443,527

)

(62

) %

 

 

(1,237,152

)

(82

) %

Cash and cash equivalents

 

368,914

 

 

830,494

 

 

1,564,247

 

 

 

(461,580

)

(56

) %

 

 

(1,195,333

)

(76

) %

Available for sale ("AFS") securities

 

7,536,921

 

 

7,917,305

 

 

4,848,781

 

 

 

(380,384

)

(5

) %

 

 

2,688,140

 

55

%

Held to maturity ("HTM") securities

 

488,581

 

 

395,434

 

 

 

 

 

93,147

 

24

%

 

 

488,581

 

%

Total securities

 

8,025,502

 

 

8,312,739

 

 

4,848,781

 

 

 

(287,237

)

(3

) %

 

 

3,176,721

 

66

%

Loans held for sale

 

764

 

 

1,166

 

 

2,734

 

 

 

(402

)

(34

) %

 

 

(1,970

)

(72

) %

Loans:

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

2,840,734

 

 

2,886,560

 

 

1,740,679

 

 

 

(45,826

)

(2

) %

 

 

1,100,055

 

63

%

Commercial real estate

 

4,792,345

 

 

4,609,824

 

 

3,775,771

 

 

 

182,521

 

4

%

 

 

1,016,574

 

27

%

Commercial construction

 

303,463

 

 

246,093

 

 

237,927

 

 

 

57,370

 

23

%

 

 

65,536

 

28

%

Business banking

 

1,126,853

 

 

1,201,007

 

 

1,339,852

 

 

 

(74,154

)

(6

) %

 

 

(212,999

)

(16

) %

Total commercial loans

 

9,063,395

 

 

8,943,484

 

 

7,094,229

 

 

 

119,911

 

1

%

 

 

1,969,166

 

28

%

Residential real estate

 

1,989,621

 

 

1,936,182

 

 

1,457,498

 

 

 

53,439

 

3

%

 

 

532,123

 

37

%

Consumer home equity

 

1,147,425

 

 

1,099,211

 

 

834,938

 

 

 

48,214

 

4

%

 

 

312,487

 

37

%

Other consumer

 

198,253

 

 

203,326

 

 

234,410

 

 

 

(5,073

)

(2

) %

 

 

(36,157

)

(15

) %

Total loans

 

12,398,694

 

 

12,182,203

 

 

9,621,075

 

 

 

216,491

 

2

%

 

 

2,777,619

 

29

%

Allowance for loan losses

 

(125,531

)

 

(124,166

)

 

(105,637

)

 

 

(1,365

)

1

%

 

 

(19,894

)

19

%

Unamortized prem./disc. and def. fees

 

(20,988

)

 

(24,434

)

 

(29,739

)

 

 

3,446

 

(14

) %

 

 

8,751

 

(29

) %

Net loans

 

12,252,175

 

 

12,033,603

 

 

9,485,699

 

 

 

218,572

 

2

%

 

 

2,766,476

 

29

%

Federal Home Loan Bank stock, at cost

 

5,714

 

 

10,904

 

 

10,601

 

 

 

(5,190

)

(48

) %

 

 

(4,887

)

(46

) %

Premises and equipment

 

69,019

 

 

73,180

 

 

44,733

 

 

 

(4,161

)

(6

) %

 

 

24,286

 

54

%

Bank-owned life insurance

 

158,890

 

 

157,954

 

 

79,634

 

 

 

936

 

1

%

 

 

79,256

 

100

%

Goodwill and other intangibles, net

 

653,853

 

 

654,759

 

 

380,402

 

 

 

(906

)

%

 

 

273,451

 

72

%

Deferred income taxes, net

 

244,153

 

 

183,137

 

 

26,161

 

 

 

61,016

 

33

%

 

 

217,992

 

833

%

Prepaid expenses

 

188,115

 

 

188,704

 

 

145,941

 

 

 

(589

)

%

 

 

42,174

 

29

%

Other assets

 

383,749

 

 

389,432

 

 

458,520

 

 

 

(5,683

)

(1

) %

 

 

(74,771

)

(16

) %

Total assets

$

22,350,848

 

$

22,836,072

 

$

17,047,453

 

 

$

(485,224

)

(2

) %

 

$

5,303,395

 

31

%

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Demand

$

6,604,154

 

$

6,788,742

 

$

5,399,297

 

 

$

(184,588

)

(3

) %

 

$

1,204,857

 

22

%

Interest checking accounts

 

5,348,181

 

 

4,662,134

 

 

2,656,610

 

 

 

686,047

 

15

%

 

 

2,691,571

 

101

%

Savings accounts

 

2,015,865

 

 

2,089,427

 

 

1,403,472

 

 

 

(73,562

)

(4

) %

 

 

612,393

 

44

%

Money market investment

 

4,787,603

 

 

5,406,198

 

 

3,544,897

 

 

 

(618,595

)

(11

) %

 

 

1,242,706

 

35

%

Certificates of deposit

 

407,998

 

 

446,315

 

 

246,157

 

 

 

(38,317

)

(9

) %

 

 

161,841

 

66

%

Total deposits

 

19,163,801

 

 

19,392,816

 

 

13,250,433

 

 

 

(229,015

)

(1

) %

 

 

5,913,368

 

45

%

Borrowed funds:

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

13,560

 

 

13,689

 

 

14,323

 

 

 

(129

)

(1

) %

 

 

(763

)

(5

) %

Escrow deposits of borrowers

 

19,456

 

 

21,233

 

 

14,119

 

 

 

(1,777

)

(8

) %

 

 

5,337

 

38

%

Interest rate swap collateral funds

 

10,100

 

 

 

 

 

 

 

10,100

 

%

 

 

10,100

 

%

Total borrowed funds

 

43,116

 

 

34,922

 

 

28,442

 

 

 

8,194

 

23

%

 

 

14,674

 

52

%

Other liabilities

 

425,535

 

 

399,942

 

 

337,956

 

 

 

25,593

 

6

%

 

 

87,579

 

26

%

Total liabilities

 

19,632,452

 

 

19,827,680

 

 

13,616,831

 

 

 

(195,228

)

(1

) %

 

 

6,015,621

 

44

%

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Common shares

 

1,793

 

 

1,834

 

 

1,868

 

 

 

(41

)

(2

) %

 

 

(75

)

(4

) %

Additional paid-in capital

 

1,700,495

 

 

1,777,670

 

 

1,856,241

 

 

 

(77,175

)

(4

) %

 

 

(155,746

)

(8

) %

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

 

(140,203

)

 

(141,455

)

 

(145,219

)

 

 

1,252

 

(1

) %

 

 

5,016

 

(3

) %

Retained earnings

 

1,817,474

 

 

1,782,997

 

 

1,723,979

 

 

 

34,477

 

2

%

 

 

93,495

 

5

%

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

 

(661,163

)

 

(412,654

)

 

(6,247

)

 

 

(248,509

)

60

%

 

 

(654,916

)

10484

%

Total shareholders' equity

 

2,718,396

 

 

3,008,392

 

 

3,430,622

 

 

 

(289,996

)

(10

) %

 

 

(712,226

)

(21

) %

Total liabilities and shareholders' equity

$

22,350,848

 

$

22,836,072

 

$

17,047,453

 

 

$

(485,224

)

(2

) %

 

$

5,303,395

 

31

%

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Three months ended

 

Three months ended Jun 30, 2022 change from three months ended

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

Jun 30, 2022

Mar 31, 2022

Jun 30, 2021

 

Mar 31, 2022

 

Jun 30, 2021

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

△ $

△ %

 

△ $

△ %

Interest and fees on loans

$

107,236

 

$

101,367

 

$

90,936

 

 

$

5,869

 

6

%

 

$

16,300

 

18

%

Taxable interest and dividends on securities

 

31,121

 

 

27,876

 

 

12,457

 

 

 

3,245

 

12

%

 

 

18,664

 

150

%

Non-taxable interest and dividends on securities

 

1,862

 

 

1,806

 

 

1,857

 

 

 

56

 

3

%

 

 

5

 

%

Interest on federal funds sold and other short-term investments

 

652

 

 

436

 

 

431

 

 

 

216

 

50

%

 

 

221

 

51

%

Total interest and dividend income

 

140,871

 

 

131,485

 

 

105,681

 

 

 

9,386

 

7

%

 

 

35,190

 

33

%

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on deposits

 

3,061

 

 

3,322

 

 

1,031

 

 

 

(261

)

(8

) %

 

 

2,030

 

197

%

Interest on borrowings

 

53

 

 

39

 

 

42

 

 

 

14

 

36

%

 

 

11

 

26

%

Total interest expense

 

3,114

 

 

3,361

 

 

1,073

 

 

 

(247

)

(7

) %

 

 

2,041

 

190

%

Net interest income

 

137,757

 

 

128,124

 

 

104,608

 

 

 

9,633

 

8

%

 

 

33,149

 

32

%

Provision for (release of) allowance for loan losses

 

1,050

 

 

(485

)

 

(3,300

)

 

 

1,535

 

(316

) %

 

 

4,350

 

(132

) %

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

 

136,707

 

 

128,609

 

 

107,908

 

 

 

8,098

 

6

%

 

 

28,799

 

27

%

Noninterest income:

 

 

 

 

 

 

 

 

 

Insurance commissions

 

24,682

 

 

28,713

 

 

23,664

 

 

 

(4,031

)

(14

) %

 

 

1,018

 

4

%

Service charges on deposit accounts

 

8,313

 

 

8,537

 

 

5,708

 

 

 

(224

)

(3

) %

 

 

2,605

 

46

%

Trust and investment advisory fees

 

5,994

 

 

6,141

 

 

6,074

 

 

 

(147

)

(2

) %

 

 

(80

)

(1

) %

Debit card processing fees

 

3,223

 

 

2,945

 

 

3,170

 

 

 

278

 

9

%

 

 

53

 

2

%

Interest rate swap income (losses)

 

1,593

 

 

2,932

 

 

(1,164

)

 

 

(1,339

)

(46

) %

 

 

2,757

 

(237

) %

(Losses) income from investments held in rabbi trusts

 

(7,316

)

 

(4,433

)

 

4,216

 

 

 

(2,883

)

65

%

 

 

(11,532

)

(274

) %

Gains on sales of mortgage loans held for sale, net

 

49

 

 

169

 

 

848

 

 

 

(120

)

(71

) %

 

 

(799

)

(94

) %

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

 

(104

)

 

(2,172

)

 

1

 

 

 

2,068

 

(95

) %

 

 

(105

)

(10500

) %

Other

 

5,443

 

 

3,583

 

 

3,216

 

 

 

1,860

 

52

%

 

 

2,227

 

69

%

Total noninterest income

 

41,877

 

 

46,415

 

 

45,733

 

 

 

(4,538

)

(10

) %

 

 

(3,856

)

(8

) %

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

72,996

 

 

69,526

 

 

69,276

 

 

 

3,470

 

5

%

 

 

3,720

 

5

%

Office occupancy and equipment

 

9,888

 

 

11,614

 

 

8,094

 

 

 

(1,726

)

(15

) %

 

 

1,794

 

22

%

Data processing

 

14,345

 

 

15,320

 

 

13,572

 

 

 

(975

)

(6

) %

 

 

773

 

6

%

Professional services

 

4,034

 

 

4,701

 

 

6,439

 

 

 

(667

)

(14

) %

 

 

(2,405

)

(37

) %

Marketing

 

2,651

 

 

1,574

 

 

3,497

 

 

 

1,077

 

68

%

 

 

(846

)

(24

) %

Loan expenses

 

1,124

 

 

1,168

 

 

1,854

 

 

 

(44

)

(4

) %

 

 

(730

)

(39

) %

Federal Deposit Insurance Corporation ("FDIC") insurance

 

1,720

 

 

1,412

 

 

985

 

 

 

308

 

22

%

 

 

735

 

75

%

Amortization of intangible assets

 

907

 

 

827

 

 

625

 

 

 

80

 

10

%

 

 

282

 

45

%

Other

 

3,474

 

 

2,724

 

 

2,993

 

 

 

750

 

28

%

 

 

481

 

16

%

Total noninterest expense

 

111,139

 

 

108,866

 

 

107,335

 

 

 

2,273

 

2

%

 

 

3,804

 

4

%

Income before income tax expense

 

67,445

 

 

66,158

 

 

46,306

 

 

 

1,287

 

2

%

 

 

21,139

 

46

%

Income tax expense

 

16,273

 

 

14,642

 

 

11,497

 

 

 

1,631

 

11

%

 

 

4,776

 

42

%

Net income

$

51,172

 

$

51,516

 

$

34,809

 

 

$

(344

)

(1

) %

 

$

16,363

 

47

%

 

 

 

 

 

 

 

 

 

 

Share data:

 

 

 

 

 

 

 

 

 

Earnings per share, basic

$

0.31

 

$

0.30

 

$

0.20

 

 

 

 

 

 

 

Earnings per share, diluted

$

0.31

 

$

0.30

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

Six months ended

 

 

 

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

Jun 30, 2022

Jun 30, 2021

 

Change

 

 

 

 

 

 

Interest and dividend income:

 

 

 

△ $

△ %

Interest and fees on loans

$

208,603

 

$

179,575

 

 

$

29,028

 

16

%

Taxable interest and dividends on securities

 

58,997

 

 

22,663

 

 

 

36,334

 

160

%

Non-taxable interest and dividends on securities

 

3,668

 

 

3,713

 

 

 

(45

)

(1

) %

Interest on federal funds sold and other short-term investments

 

1,088

 

 

863

 

 

 

225

 

26

%

Total interest and dividend income

 

272,356

 

 

206,814

 

 

 

65,542

 

32

%

Interest expense:

 

 

 

 

 

Interest on deposits

 

6,383

 

 

2,033

 

 

 

4,350

 

214

%

Interest on borrowings

 

92

 

 

82

 

 

 

10

 

12

%

Total interest expense

 

6,475

 

 

2,115

 

 

 

4,360

 

206

%

Net interest income

 

265,881

 

 

204,699

 

 

 

61,182

 

30

%

Provision for (release of) allowance for loan losses

 

565

 

 

(3,880

)

 

 

4,445

 

(115

) %

Net interest income after release of allowance for loan losses

 

265,316

 

 

208,579

 

 

 

56,737

 

27

%

Noninterest income:

 

 

 

 

 

Insurance commissions

 

53,395

 

 

51,811

 

 

 

1,584

 

3

%

Service charges on deposit accounts

 

16,850

 

 

11,075

 

 

 

5,775

 

52

%

Trust and investment advisory fees

 

12,135

 

 

11,737

 

 

 

398

 

3

%

Debit card processing fees

 

6,168

 

 

5,919

 

 

 

249

 

4

%

Interest rate swap income

 

4,525

 

 

4,241

 

 

 

284

 

7

%

(Losses) income from investments held in rabbi trusts

 

(11,749

)

 

6,062

 

 

 

(17,811

)

(294

) %

Gains on sales of mortgage loans held for sale, net

 

218

 

 

2,327

 

 

 

(2,109

)

(91

) %

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

 

(2,276

)

 

1,165

 

 

 

(3,441

)

(295

) %

Other

 

9,026

 

 

6,608

 

 

 

2,418

 

37

%

Total noninterest income

 

88,292

 

 

100,945

 

 

 

(12,653

)

(13

) %

Noninterest expense:

 

 

 

 

 

Salaries and employee benefits

 

142,522

 

 

133,316

 

 

 

9,206

 

7

%

Office occupancy and equipment

 

21,502

 

 

16,311

 

 

 

5,191

 

32

%

Data processing

 

29,665

 

 

25,701

 

 

 

3,964

 

15

%

Professional services

 

8,735

 

 

10,587

 

 

 

(1,852

)

(17

) %

Marketing

 

4,225

 

 

5,188

 

 

 

(963

)

(19

) %

Loan expenses

 

2,292

 

 

3,701

 

 

 

(1,409

)

(38

) %

Federal Deposit Insurance Corporation ("FDIC") insurance

 

3,132

 

 

1,933

 

 

 

1,199

 

62

%

Amortization of intangible assets

 

1,734

 

 

1,157

 

 

 

577

 

50

%

Other

 

6,198

 

 

3,490

 

 

 

2,708

 

78

%

Total noninterest expense

 

220,005

 

 

201,384

 

 

 

18,621

 

9

%

Income before income tax expense

 

133,603

 

 

108,140

 

 

 

25,463

 

24

%

Income tax expense

 

30,915

 

 

25,668

 

 

 

5,247

 

20

%

Net income

$

102,688

 

$

82,472

 

 

$

20,216

 

25

%

 

 

 

 

 

 

Share data:

 

 

 

 

 

Weighted average common shares outstanding, basic (1)

 

168,184,528

 

 

172,111,372

 

 

 

(3,926,844

)

(2

) %

Weighted average common shares outstanding, diluted (1)

 

168,248,246

 

 

172,111,372

 

 

 

(3,863,126

)

(2

) %

Earnings per share, basic

$

0.61

 

$

0.48

 

 

$

0.13

 

27

%

Earnings per share, diluted

$

0.61

 

$

0.48

 

 

$

0.13

 

27

%

(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

 

Jun 30, 2022

 

Mar 31, 2022

 

Jun 30, 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

$

8,944,652

 

$

83,586

 

3.75

%

 

$

8,973,094

 

$

78,226

 

3.54

%

 

$

7,301,745

 

$

71,747

 

3.94

%

Residential

 

1,960,014

 

 

14,683

 

3.00

%

 

 

1,937,494

 

 

14,471

 

3.03

%

 

 

1,433,056

 

 

11,397

 

3.19

%

Consumer

 

1,309,864

 

 

11,494

 

3.52

%

 

 

1,293,489

 

 

10,450

 

3.28

%

 

 

1,061,900

 

 

8,597

 

3.25

%

Total loans

 

12,214,530

 

 

109,763

 

3.60

%

 

 

12,204,077

 

 

103,147

 

3.43

%

 

 

9,796,701

 

 

91,741

 

3.76

%

Investment securities

 

8,883,710

 

 

33,479

 

1.51

%

 

 

8,647,200

 

 

30,163

 

1.41

%

 

 

4,344,690

 

 

14,778

 

1.36

%

Federal funds sold and other short-term investments

 

345,731

 

 

652

 

0.76

%

 

 

1,003,416

 

 

436

 

0.18

%

 

 

1,617,741

 

 

431

 

0.11

%

Total interest-earning assets

 

21,443,971

 

 

143,894

 

2.69

%

 

 

21,854,693

 

 

133,746

 

2.48

%

 

 

15,759,132

 

 

106,950

 

2.72

%

Non-interest-earning assets

 

962,734

 

 

 

 

 

 

1,436,702

 

 

 

 

 

 

1,061,121

 

 

 

 

Total assets

$

22,406,705

 

 

 

 

 

$

23,291,395

 

 

 

 

 

$

16,820,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

$

2,041,495

 

$

51

 

0.01

%

 

$

2,076,754

 

$

51

 

0.01

%

 

$

1,385,735

 

$

69

 

0.02

%

Interest checking

 

4,877,256

 

 

2,061

 

0.17

%

 

 

4,596,026

 

 

2,032

 

0.18

%

 

 

2,541,862

 

 

253

 

0.04

%

Money market

 

5,069,609

 

 

745

 

0.06

%

 

 

5,568,264

 

 

920

 

0.07

%

 

 

3,523,330

 

 

605

 

0.07

%

Time deposits

 

426,923

 

 

204

 

0.19

%

 

 

481,833

 

 

319

 

0.27

%

 

 

246,801

 

 

104

 

0.17

%

Total interest-bearing deposits

 

12,415,283

 

 

3,061

 

0.10

%

 

 

12,722,877

 

 

3,322

 

0.11

%

 

 

7,697,728

 

 

1,031

 

0.05

%

Borrowings

 

35,330

 

 

53

 

0.60

%

 

 

30,669

 

 

39

 

0.52

%

 

 

25,042

 

 

42

 

0.67

%

Total interest-bearing liabilities

 

12,450,613

 

 

3,114

 

0.10

%

 

 

12,753,546

 

 

3,361

 

0.11

%

 

 

7,722,770

 

 

1,073

 

0.06

%

Demand deposit accounts

 

6,661,920

 

 

 

 

 

 

6,821,811

 

 

 

 

 

 

5,355,170

 

 

 

 

Other noninterest-bearing liabilities

 

428,373

 

 

 

 

 

 

442,591

 

 

 

 

 

 

335,816

 

 

 

 

Total liabilities

 

19,540,906

 

 

 

 

 

 

20,017,948

 

 

 

 

 

 

13,413,756

 

 

 

 

Shareholders' equity

 

2,865,799

 

 

 

 

 

 

3,273,447

 

 

 

 

 

 

3,406,497

 

 

 

 

Total liabilities and shareholders' equity

$

22,406,705

 

 

 

 

 

$

23,291,395

 

 

 

 

 

$

16,820,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

140,780

 

 

 

 

 

$

130,385

 

 

 

 

 

$

105,877

 

 

Net interest rate spread (2)

 

 

 

 

2.59

%

 

 

 

 

 

2.37

%

 

 

 

 

 

2.66

%

Net interest-earning assets (3)

$

8,993,358

 

 

 

 

 

$

9,101,147

 

 

 

 

 

$

8,036,362

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.63

%

 

 

 

 

 

2.42

%

 

 

 

 

 

2.69

%

(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 EARNED/PAID, & AVERAGE YIELDS

 

 

As of and for the six months ended

 

Jun 30, 2022

 

Jun 30, 2021

(Unaudited, dollars in thousands)

Avg. Balance

 

Interest

 

Yield / Cost (5)

 

Avg. Balance

 

Interest

 

Yield / Cost (5)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans (1):

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

8,958,795

 

$

161,811

 

3.64

%

 

$

7,309,803

 

$

140,952

 

3.89

%

Residential

 

1,948,816

 

 

29,155

 

3.02

%

 

 

1,413,208

 

 

22,671

 

3.24

%

Consumer

 

1,301,721

 

 

21,944

 

3.40

%

 

 

1,083,677

 

 

17,534

 

3.26

%

Total loans

 

12,209,332

 

 

212,910

 

3.52

%

 

 

9,806,688

 

 

181,157

 

3.73

%

Total investment securities

 

8,766,108

 

 

63,642

 

1.46

%

 

 

3,990,080

 

 

27,360

 

1.38

%

Federal funds sold and other short-term investments

 

672,757

 

 

1,088

 

0.33

%

 

 

1,678,812

 

 

863

 

0.10

%

Total interest-earning assets

 

21,648,197

 

 

277,640

 

2.59

%

 

 

15,475,580

 

 

209,380

 

2.73

%

Non-interest-earning assets

 

1,198,409

 

 

 

 

 

 

1,089,585

 

 

 

 

Total assets

$

22,846,606

 

 

 

 

 

$

16,565,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Savings

$

2,059,027

 

$

102

 

0.01

%

 

$

1,343,133

 

$

133

 

0.02

%

Interest checking

 

4,737,418

 

 

4,093

 

0.17

%

 

 

2,466,860

 

 

487

 

0.04

%

Money market

 

5,317,559

 

 

1,665

 

0.06

%

 

 

3,482,002

 

 

1,193

 

0.07

%

Time deposits

 

454,226

 

 

523

 

0.23

%

 

 

248,946

 

 

220

 

0.18

%

Total interest-bearing deposits

 

12,568,230

 

 

6,383

 

0.10

%

 

 

7,540,941

 

 

2,033

 

0.05

%

Borrowings

 

33,012

 

 

92

 

0.56

%

 

 

25,332

 

 

82

 

0.65

%

Total interest-bearing liabilities

 

12,601,242

 

 

6,475

 

0.10

%

 

 

7,566,273

 

 

2,115

 

0.06

%

Demand deposit accounts

 

6,741,424

 

 

 

 

 

 

5,241,134

 

 

 

 

Other noninterest-bearing liabilities

 

435,443

 

 

 

 

 

 

345,776

 

 

 

 

Total liabilities

 

19,778,109

 

 

 

 

 

 

13,153,183

 

 

 

 

Shareholders' equity

 

3,068,497

 

 

 

 

 

 

3,411,982

 

 

 

 

Total liabilities and shareholders' equity

$

22,846,606

 

 

 

 

 

$

16,565,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

$

271,165

 

 

 

 

 

$

207,265

 

 

Net interest rate spread (2)

 

 

 

 

2.49

%

 

 

 

 

 

2.67

%

Net interest-earning assets (3)

$

9,046,955

 

 

 

 

 

$

7,909,307

 

 

 

 

Net interest margin - FTE (4)

 

 

 

 

2.53

%

 

 

 

 

 

2.70

%

(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

ASSET QUALITY - NON-PERFORMING ASSETS (1)

 

 

As of

 

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

Commercial

$

43,628

 

$

17,919

 

$

20,630

 

$

29,166

 

$

29,356

 

Residential

 

9,486

 

 

8,256

 

 

6,681

 

 

7,185

 

 

6,445

 

Consumer

 

6,766

 

 

7,646

 

 

5,682

 

 

4,262

 

 

4,106

 

Total non-accrual loans

 

59,880

 

 

33,821

 

 

32,993

 

 

40,613

 

 

39,907

 

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

 

 

 

 

 

1,990

 

 

1,458

 

 

1,725

 

Total non-performing loans

 

59,880

 

 

33,821

 

 

34,983

 

 

42,071

 

 

41,632

 

Other real estate owned

 

 

 

 

 

 

 

 

 

38

 

Other non-performing assets:

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

59,880

 

$

33,821

 

$

34,983

 

$

42,071

 

$

41,670

 

Total accruing troubled debt restructured loans

$

33,518

 

$

32,016

 

$

33,336

 

$

34,723

 

$

38,316

 

Total non-performing loans to total loans

 

0.48

%

 

0.28

%

 

0.29

%

 

0.44

%

 

0.43

%

Total non-performing assets to total assets

 

0.27

%

 

0.15

%

 

0.15

%

 

0.24

%

 

0.24

%

(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 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 (RECOVERIES) CHARGE-OFFS

 

 

Three months ended

 

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Average total loans (1)

$

12,213,706

 

$

12,203,212

 

$

10,944,091

 

$

9,526,766

 

$

9,794,045

 

Allowance for loan losses, beginning of the period

 

124,166

 

 

97,787

 

 

103,398

 

 

105,637

 

 

111,080

 

Total cumulative effect of change in accounting principle (2):

 

 

 

27,086

 

 

 

 

 

 

 

Charged-off loans:

 

 

 

 

 

Commercial and industrial

 

1

 

 

1

 

 

1,008

 

 

 

 

550

 

Commercial real estate

 

 

 

 

 

5

 

 

8

 

 

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

608

 

 

945

 

 

1,002

 

 

867

 

 

1,838

 

Residential real estate

 

 

 

 

 

35

 

 

 

 

 

Consumer home equity

 

 

 

 

 

24

 

 

 

 

 

Other consumer

 

490

 

 

661

 

 

666

 

 

742

 

 

275

 

Total charged-off loans

 

1,099

 

 

1,607

 

 

2,740

 

 

1,617

 

 

2,663

 

Recoveries on loans previously charged-off:

 

 

 

 

 

Commercial and industrial

 

698

 

 

250

 

 

873

 

 

40

 

 

13

 

Commercial real estate

 

36

 

 

14

 

 

 

 

 

 

4

 

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

464

 

 

928

 

 

399

 

 

469

 

 

291

 

Residential real estate

 

14

 

 

10

 

 

7

 

 

88

 

 

17

 

Consumer home equity

 

6

 

 

4

 

 

48

 

 

63

 

 

3

 

Other consumer

 

196

 

 

179

 

 

120

 

 

206

 

 

192

 

Total recoveries

 

1,414

 

 

1,385

 

 

1,447

 

 

866

 

 

520

 

Net loans charged-off (recoveries):

 

 

 

 

 

Commercial and industrial

 

(697

)

 

(249

)

 

135

 

 

(40

)

 

537

 

Commercial real estate

 

(36

)

 

(14

)

 

5

 

 

8

 

 

(4

)

Commercial construction

 

 

 

 

 

 

 

 

 

 

Business banking

 

144

 

 

17

 

 

603

 

 

398

 

 

1,547

 

Residential real estate

 

(14

)

 

(10

)

 

28

 

 

(88

)

 

(17

)

Consumer home equity

 

(6

)

 

(4

)

 

(24

)

 

(63

)

 

(3

)

Other consumer

 

294

 

 

482

 

 

546

 

 

536

 

 

83

 

Total net loans charged-off

 

(315

)

 

222

 

 

1,293

 

 

751

 

 

2,143

 

Provision for (release of) allowance for loan losses

 

1,050

 

 

(485

)

 

(4,318

)

 

(1,488

)

 

(3,300

)

Total allowance for loan losses, end of period

$

125,531

 

$

124,166

 

$

97,787

 

$

103,398

 

$

105,637

 

Net (recoveries) charge-offs to average total loans outstanding during this period (3)

 

(0.01

) %

 

0.01

%

 

0.05

%

 

0.03

%

 

0.09

%

Allowance for loan losses as a percent of total loans

 

1.01

%

 

1.02

%

 

0.80

%

 

1.09

%

 

1.10

%

Allowance for loan losses as a percent of nonperforming loans

 

209.64

%

 

367.13

%

 

279.53

%

 

245.77

%

 

253.74

%

(1) Average total loans at June 30, 2022 excludes the average balance of loans held for sale. Prior period amounts were adjusted to reflect this revision and accommodate comparability.

(2) 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.

(3) 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)

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

 

 

 

 

 

 

Net income (GAAP)

$

51,172

 

$

51,516

 

$

35,087

 

$

37,106

 

$

34,809

 

Add:

 

 

 

 

 

Noninterest income components:

 

 

 

 

 

Losses (income) from investments held in rabbi trusts

 

7,316

 

 

4,433

 

 

(4,444

)

 

289

 

 

(4,216

)

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

 

104

 

 

2,172

 

 

 

 

(1

)

 

(1

)

(Gains) losses on sales of other assets

 

(1,251

)

 

274

 

 

(34

)

 

(490

)

 

(29

)

Noninterest expense components:

 

 

 

 

 

Rabbi trust employee benefit (income) expense

 

(3,310

)

 

(2,087

)

 

2,519

 

 

(53

)

 

2,063

 

Impairment charge (reversal) on tax credit investments

 

 

 

 

 

116

 

 

1,133

 

 

(1,419

)

Gain on sale of OREO

 

 

 

 

 

 

 

(87

)

 

 

Merger and acquisition expenses

 

 

 

34

 

 

30,652

 

 

740

 

 

3,479

 

Settlement and expenses for putative consumer class action matters

 

 

 

 

 

 

 

 

 

3,325

 

Total impact of non-GAAP adjustments

 

2,859

 

 

4,826

 

 

28,809

 

 

1,531

 

 

3,202

 

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

 

1,513

 

 

1,235

 

 

19,036

 

 

1,246

 

 

914

 

Non-GAAP adjustments, net of tax

$

1,346

 

$

3,591

 

$

9,773

 

$

285

 

$

2,288

 

Operating net income (non-GAAP)

$

52,518

 

$

55,107

 

$

44,860

 

$

37,391

 

$

37,097

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

166,533,920

 

 

169,857,950

 

 

172,246,799

 

 

172,298,615

 

 

172,173,707

 

Diluted

 

166,573,627

 

 

169,968,156

 

 

172,481,829

 

 

172,298,615

 

 

172,173,707

 

 

 

 

 

 

 

Earnings per share, basic

$

0.31

 

$

0.30

 

$

0.20

 

$

0.22

 

$

0.20

 

Earnings per share, diluted

$

0.31

 

$

0.30

 

$

0.20

 

$

0.22

 

$

0.20

 

 

 

 

 

 

 

Operating earnings per share, basic (non-GAAP)

$

0.32

 

$

0.32

 

$

0.26

 

$

0.22

 

$

0.22

 

Operating earnings per share, diluted (non-GAAP)

$

0.32

 

$

0.32

 

$

0.26

 

$

0.22

 

$

0.22

 

 

 

 

 

 

 

Return on average assets (3)

 

0.92

%

 

0.90

%

 

0.67

%

 

0.84

%

 

0.83

%

Add:

 

 

 

 

 

Losses (income) from investments held in rabbi trusts (3)

 

0.13

%

 

0.08

%

 

(0.08

) %

 

0.01

%

 

(0.10

) %

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

 

%

 

0.04

%

 

0.00

%

 

0.00

%

 

%

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

 

(0.02

) %

 

0.00

%

 

0.00

%

 

(0.01

) %

 

0.00

%

Rabbi trust employee benefit (income) expense (3)

 

(0.06

) %

 

(0.04

) %

 

0.05

%

 

0.00

%

 

0.05

%

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

 

%

 

0.00

%

 

0.00

%

 

0.03

%

 

(0.03

) %

Gain on sale of OREO (3)

 

%

 

%

 

0.00

%

 

%

 

%

Merger and acquisition expenses (3)

 

0.00

%

 

%

 

0.58

%

 

0.02

%

 

0.08

%

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

 

%

 

%

 

%

 

%

 

0.08

%

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

 

0.03

%

 

0.02

%

 

0.36

%

 

0.03

%

 

0.02

%

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

 

0.94

%

 

0.96

%

 

0.86

%

 

0.86

%

 

0.89

%

 

 

 

 

 

 

Return on average shareholders' equity (3)

 

7.16

%

 

6.38

%

 

4.07

%

 

4.27

%

 

4.10

%

Add:

 

 

 

 

 

Losses (income) from investments held in rabbi trusts (3)

 

1.02

%

 

0.55

%

 

(0.52

) %

 

0.03

%

 

(0.50

) %

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

 

0.01

%

 

0.27

%

 

0.00

%

 

0.00

%

 

%

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

 

(0.18

) %

 

0.03

%

 

0.00

%

 

(0.06

) %

 

0.00

%

Rabbi trust employee benefit (income) expense (3)

 

(0.46

) %

 

(0.26

) %

 

0.29

%

 

(0.01

) %

 

0.24

%

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

 

0.00

%

 

0.00

%

 

0.01

%

 

0.13

%

 

(0.17

) %

Gain on sale of OREO (3)

 

%

 

%

 

%

 

(0.01

) %

 

%

Merger and acquisition expenses (3)

 

0.00

%

 

0.00

%

 

3.55

%

 

0.09

%

 

0.41

%

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

 

%

 

%

 

%

 

%

 

0.39

%

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

 

0.21

%

 

0.15

%

 

2.21

%

 

0.14

%

 

0.11

%

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

 

7.34

%

 

6.82

%

 

5.19

%

 

4.30

%

 

4.36

%

 

 

 

 

 

 

Average tangible shareholders' equity:

 

 

 

 

 

Average total shareholders' equity (GAAP)

$

2,865,799

 

$

3,273,447

 

$

3,423,231

 

$

3,450,679

 

$

3,406,497

 

Less: Average goodwill and other intangibles

 

654,444

 

 

649,497

 

 

520,988

 

 

380,185

 

 

379,044

 

Average tangible shareholders' equity (non-GAAP)

$

2,211,355

 

$

2,623,950

 

$

2,902,243

 

$

3,070,494

 

$

3,027,453

 

 

 

 

 

 

 

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

 

9.28

%

 

7.96

%

 

4.80

%

 

4.79

%

 

4.61

%

Add:

 

 

 

 

 

Losses (income) from investments held in rabbi trusts (3)

 

1.33

%

 

0.69

%

 

(0.61

) %

 

0.04

%

 

(0.56

) %

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

 

0.02

%

 

0.34

%

 

%

 

%

 

%

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

 

(0.23

) %

 

0.04

%

 

%

 

(0.06

) %

 

%

Rabbi trust employee benefit (income) expense (3)

 

(0.60

) %

 

(0.32

) %

 

0.34

%

 

(0.01

) %

 

0.27

%

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

 

%

 

%

 

0.02

%

 

0.15

%

 

(0.19

) %

Gain on sale of OREO (3)

 

%

 

%

 

%

 

(0.01

) %

 

%

Merger and acquisition expenses (3)

 

%

 

0.01

%

 

4.19

%

 

0.10

%

 

0.46

%

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

 

%

 

%

 

%

 

%

 

0.44

%

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

 

0.27

%

 

0.19

%

 

2.60

%

 

0.16

%

 

0.12

%

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

 

9.53

%

 

8.53

%

 

6.14

%

 

4.84

%

 

4.91

%

(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

 

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

(Unaudited, dollars in thousands)

 

 

 

 

 

Net interest income (GAAP)

$

137,757

 

$

128,124

 

$

122,437

 

$

102,691

 

$

104,608

 

Add:

 

 

 

 

 

Tax-equivalent adjustment (non-GAAP)

 

3,023

 

 

2,261

 

 

2,211

 

 

1,316

 

 

1,269

 

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

$

140,780

 

$

130,385

 

$

124,648

 

$

104,007

 

$

105,877

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

41,877

 

$

46,415

 

$

49,001

 

$

43,209

 

$

45,733

 

Less:

 

 

 

 

 

(Losses) income from investments held in rabbi trusts

 

(7,316

)

 

(4,433

)

 

4,444

 

 

(289

)

 

4,216

 

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

 

(104

)

 

(2,172

)

 

 

 

1

 

 

1

 

Gain (losses) on sales of other assets

 

1,251

 

 

(274

)

 

34

 

 

490

 

 

29

 

Noninterest income on an operating basis (non-GAAP)

$

48,046

 

$

53,294

 

$

44,523

 

$

43,007

 

$

41,487

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

111,139

 

$

108,866

 

$

143,602

 

$

98,970

 

$

107,335

 

Less:

 

 

 

 

 

Rabbi trust employee benefit (income) expense

 

(3,310

)

 

(2,087

)

 

2,519

 

 

(53

)

 

2,063

 

Impairment charge (reversal) on tax credit investments

 

 

 

 

 

116

 

 

1,133

 

 

(1,419

)

Gain on sale of OREO

 

 

 

 

 

 

 

(87

)

 

 

Merger and acquisition expenses

 

 

 

34

 

 

30,652

 

 

740

 

 

3,479

 

Settlement and expenses for putative consumer class action matters

 

 

 

 

 

 

 

 

 

3,325

 

Noninterest expense on an operating basis (non-GAAP)

$

114,449

 

$

110,919

 

$

110,315

 

$

97,237

 

$

99,887

 

 

 

 

 

 

 

Total revenue (GAAP)

$

179,634

 

$

174,539

 

$

171,438

 

$

145,900

 

$

150,341

 

Total operating revenue (non-GAAP)

$

188,826

 

$

183,679

 

$

169,171

 

$

147,014

 

$

147,364

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

61.87

%

 

62.37

%

 

83.76

%

 

67.83

%

 

71.39

%

Operating efficiency ratio (non-GAAP)

 

60.61

%

 

60.39

%

 

65.21

%

 

66.14

%

 

67.78

%

 

 

 

 

 

 

Noninterest income / total revenue (GAAP)

 

23.31

%

 

26.59

%

 

28.58

%

 

29.62

%

 

30.42

%

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

 

25.44

%

 

29.01

%

 

26.32

%

 

29.25

%

 

28.15

%

APPENDIX C: Reconciliation of Non-GAAP Capital Metrics

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

 

As of

 

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

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

 

 

 

 

 

Tangible shareholders' equity:

 

 

 

 

 

Total shareholders' equity (GAAP)

$ 2,718,396

$ 3,008,392

$ 3,406,352

$ 3,429,292

$ 3,430,622

Less: Goodwill and other intangibles

653,853

654,759

649,703

379,772

380,402

Tangible shareholders' equity (non-GAAP)

2,064,543

2,353,633

2,756,649

3,049,520

3,050,220

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

Total assets (GAAP)

22,350,848

22,836,072

23,512,128

17,461,223

17,047,453

Less: Goodwill and other intangibles

653,853

654,759

649,703

379,772

380,402

Tangible assets (non-GAAP)

$ 21,696,995

$ 22,181,313

$ 22,862,425

$ 17,081,451

$ 16,667,051

 

 

 

 

 

 

Shareholders' equity to assets ratio (GAAP)

12.16 %

13.17 %

14.49 %

19.64 %

20.12 %

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

9.52 %

10.61 %

12.06 %

17.85 %

18.30 %

 

 

 

 

 

 

Common shares outstanding

179,253,801

183,438,711

186,305,332

186,758,154

186,758,154

 

 

 

 

 

 

Book value per share (GAAP)

$ 15.17

$ 16.40

$ 18.28

$ 18.36

$ 18.37

Tangible book value per share (non-GAAP)

$ 11.52

$ 12.83

$ 14.80

$ 16.33

$ 16.33

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

 

Jun 30, 2022 change from

 

Jun 30, 2022

Mar 31, 2022

 

Mar 31, 2022

(Unaudited, dollars in thousands, except per share amounts)

 

 

 

 

Common stock

$

1,793

 

$

1,834

 

 

$

(41

)

Additional paid in capital

 

1,700,495

 

 

1,777,670

 

 

 

(77,175

)

Unallocated ESOP common stock

 

(140,203

)

 

(141,455

)

 

 

1,252

 

Retained earnings

 

1,817,474

 

 

1,782,997

 

 

 

34,477

 

AOCI, net of tax - available for sale securities

 

(657,386

)

 

(410,611

)

 

 

(246,775

)

AOCI, net of tax - pension

 

(5,718

)

 

(5,595

)

 

 

(123

)

AOCI, net of tax - cash flow hedge

 

1,941

 

 

3,552

 

 

 

(1,611

)

Total shareholders' equity:

$

2,718,396

 

$

3,008,392

 

 

$

(289,996

)

Less: Goodwill and other intangibles

 

653,853

 

 

654,759

 

 

 

(906

)

Tangible shareholders' equity (non-GAAP)

$

2,064,543

 

$

2,353,633

 

 

$

(289,090

)

 

 

 

 

 

Common shares outstanding

 

179,253,801

 

 

183,438,711

 

 

 

(4,184,910

)

 

 

 

 

 

Per share:

 

 

 

 

Common stock

$

0.01

 

$

0.01

 

 

$

 

Additional paid in capital

 

9.49

 

 

9.69

 

 

 

(0.20

)

Unallocated ESOP common stock

 

(0.78

)

 

(0.77

)

 

 

(0.01

)

Retained earnings

 

10.14

 

 

9.72

 

 

 

0.42

 

AOCI, net of tax - available for sale securities

 

(3.67

)

 

(2.24

)

 

 

(1.43

)

AOCI, net of tax - pension

 

(0.03

)

 

(0.03

)

 

 

 

AOCI, net of tax - cash flow hedge

 

0.01

 

 

0.02

 

 

 

(0.01

)

Total shareholders' equity:

$

15.17