(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
, | | |||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit | Description | ||||
99.1 | |||||
99.2 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
EASTERN BANKSHARES, INC. | |||||||||||
DATE: January 27, 2022 | By: | /s/ James B. Fitzgerald | |||||||||
James B. Fitzgerald | |||||||||||
Chief Financial Officer |
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 |
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 | % |
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) |
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. |
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. |
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. | |||||||||||||||||||||||||||||||||||
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. |
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. |
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. |
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 | % |
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 |
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 | |||||||
NCOs / Average total loans (GAAP) (2) | 0.05 | % | 0.03 | % | 0.09 | % | 0.06 | % | 0.13 | % | |||||||
NCOs / Average total loans (excl. PPP loans) (non-GAAP) (2) | 0.05 | % | 0.03 | % | 0.10 | % | 0.06 | % | 0.15 | % | |||||||
(1) Includes unamortized premiums, net of unearned discounts and deferred fees. | |||||||||||||||||
(2) Presented on an annualized basis. |
As of and for the three months ended | |||||||||||||||||||||||
Dec 31, 2021 | Sep 30, 2021 | ||||||||||||||||||||||
(Unaudited, dollars in thousands) | Volume | Interest | Margin Impact (1) | Volume | Interest | Margin Impact (1) | |||||||||||||||||
Reported total average interest-earning assets, net interest income, and net interest margin (2) | $ | 19,484,101 | $ | 124,648 | 2.54 | % | $ | 16,282,183 | $ | 104,007 | 2.53 | % | |||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
PPP loan volume earning 1% | (419,894) | (1,060) | 0.03 | % | (649,443) | (1,688) | 0.06 | % | |||||||||||||||
PPP loan fee accretion, net of deferred origination cost amortization | — | (10,755) | (0.22) | % | — | (5,913) | (0.14) | % | |||||||||||||||
Excess cash (3) | (811,541) | (307) | 0.10 | % | (1,178,275) | (445) | 0.19 | % | |||||||||||||||
Core margin (Non-GAAP) (4) | $ | 18,252,666 | $ | 112,526 | 2.45 | % | $ | 14,454,465 | $ | 95,961 | 2.63 | % | |||||||||||
Core margin change from prior quarter | (0.18) | % | (0.17) | % | |||||||||||||||||||
Jun 30, 2021 | Mar 31, 2021 | ||||||||||||||||||||||
Volume | Interest | Margin Impact (1) | Volume | Interest | Margin Impact (1) | ||||||||||||||||||
Reported total average interest-earning assets, net interest income, and net interest margin (2) | $ | 15,759,132 | $ | 105,877 | 2.69 | % | $ | 15,188,879 | $ | 101,388 | 2.71 | % | |||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
PPP loan volume earning 1% | (1,073,688) | (2,742) | 0.12 | % | (1,131,516) | (2,887) | 0.13 | % | |||||||||||||||
PPP loan fee accretion, net of deferred origination cost amortization | — | (9,258) | (0.24) | % | — | (8,339) | (0.22) | % | |||||||||||||||
Excess cash (3) | (1,302,558) | (357) | 0.23 | % | (1,436,783) | (354) | 0.27 | % | |||||||||||||||
Core margin (Non-GAAP) (4) | $ | 13,382,886 | $ | 93,520 | 2.80 | % | $ | 12,620,580 | $ | 89,808 | 2.89 | % | |||||||||||
Core margin change from prior quarter | (0.09) | % | |||||||||||||||||||||
(1) Presented on an annualized basis. | |||||||||||||||||||||||
(2) Presented on a fully taxable equivalent basis. | |||||||||||||||||||||||
(3) Consists of cash above 2% of average total earning assets at a yield of 0.15% for the three months ended December 31, 2021 and September 30, 2021, 0.11% for the three months ended June 30, 2021 and 0.10% for the three months ended March 31, 2021. | |||||||||||||||||||||||
(4) Core margin is the margin that results from the combined volume and interest adjustments taken together. |
Remaining COVID-19 Modifications as of June 30, 2021 (1) | Remaining COVID-19 Modifications as of September 30, 2021 (1) | Remaining COVID-19 Modifications as of December 31, 2021 (1) | |||||||||||||||||||||||||||
(Dollars in thousands) | Remaining Modifications | % of Total Loan Balance | Remaining Modifications | % of Total Loan Balance | Remaining Modifications | % of Total Loan Balance | |||||||||||||||||||||||
Portfolio | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 18,850 | 1.1 | % | $ | 4,548 | 0.3 | % | $ | 4,548 | 0.2 | % | |||||||||||||||||
Commercial real estate | 113,301 | 3.0 | % | 92,377 | 2.4 | % | 93,519 | 2.1 | % | ||||||||||||||||||||
Commercial construction | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
Business banking | 2,102 | 0.2 | % | 2,164 | 0.2 | % | 649 | 0.1 | % | ||||||||||||||||||||
Residential real estate | 13,428 | 0.9 | % | 9,947 | 0.7 | % | 5,870 | 0.3 | % | ||||||||||||||||||||
Consumer home equity | 1,124 | 0.1 | % | 875 | 0.1 | % | 1,365 | 0.1 | % | ||||||||||||||||||||
Other consumer | 999 | 0.4 | % | 685 | 0.3 | % | 706 | 0.3 | % | ||||||||||||||||||||
Total | $ | 149,804 | 1.6 | % | $ | 110,596 | 1.2 | % | $ | 106,657 | 0.9 | % | |||||||||||||||||
(1) Remaining COVID-19 modifications reflect those loans which underwent a modification and have not yet resumed payment. The Company defines a modified loan to have resumed payment if it is one month past the modification end date and not more than 30 days past due. These modifications with active deferrals met the criteria of either Section 4013 of the CARES Act or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) and therefore are not deemed troubled debt restructurings. |
(Unaudited, dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Century Acquired Balance (1) | Organic △ $ | Organic △ % | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,960,527 | $ | 1,652,447 | $ | 1,405,127 | $ | (97,047) | (5.9) | % | |||||||||||||||||||
Commercial real estate | 4,522,513 | 3,825,186 | 606,139 | 91,188 | 2.4 | % | |||||||||||||||||||||||
Commercial construction | 222,328 | 243,146 | 2,647 | (23,465) | (9.7) | % | |||||||||||||||||||||||
Business banking | 1,334,694 | 1,225,538 | 240,703 | (131,547) | (10.7) | % | |||||||||||||||||||||||
Total commercial loans | 9,040,062 | 6,946,317 | 2,254,616 | (160,871) | (2.3) | % | |||||||||||||||||||||||
Less: PPP loans | 331,385 | 533,965 | 73,734 | (276,314) | (51.7) | % | |||||||||||||||||||||||
Total commercial loans excl. PPP loans | 8,708,677 | 6,412,352 | 2,180,882 | 115,443 | 1.8 | % | |||||||||||||||||||||||
Residential real estate | 1,926,810 | 1,491,269 | 418,119 | 17,422 | 1.2 | % | |||||||||||||||||||||||
Consumer home equity | 1,100,153 | 848,570 | 237,522 | 14,061 | 1.7 | % | |||||||||||||||||||||||
Other consumer | 214,485 | 218,406 | 9,429 | (13,350) | (6.1) | % | |||||||||||||||||||||||
Total loans | $ | 12,281,510 | $ | 9,504,562 | $ | 2,919,686 | $ | (142,738) | (1.5) | % | |||||||||||||||||||
Less: PPP loans | $ | 331,385 | $ | 533,965 | $ | 73,734 | $ | (276,314) | (51.7) | % | |||||||||||||||||||
Total loans excl. PPP loans | 11,950,125 | 8,970,597 | 2,845,952 | 133,576 | 1.5 | % | |||||||||||||||||||||||
(1) Unpaid principal balances at time of merger. |
Three months ended | Twelve months ended | ||||||||||
(Unaudited, dollars in thousands) | Dec 31, 2021 | ||||||||||
Salaries and employee benefits | $ | 15,942 | $ | 15,947 | |||||||
Office occupancy and equipment | 7,112 | 7,198 | |||||||||
Data processing | 147 | 1,286 | |||||||||
Professional services | 5,699 | 9,223 | |||||||||
Other | 1,752 | 1,802 | |||||||||
Total | $ | 30,652 | $ | 35,456 |
As of | Dec 31, 2021 change from | |||||||||||||
Dec 31, 2021 | Sep 30, 2021 | Sep 30, 2021 | ||||||||||||
(Unaudited, dollars in thousands, except per share amounts) | ||||||||||||||
Common stock | $ | 1,863 | $ | 1,868 | $ | (5) | ||||||||
Additional paid in capital | 1,835,241 | 1,857,165 | (21,924) | |||||||||||
Unallocated ESOP common stock | (142,709) | (143,966) | 1,257 | |||||||||||
Retained earnings | 1,768,653 | 1,747,300 | 21,353 | |||||||||||
AOCI, net of tax - available for sale securities | (58,586) | (25,414) | (33,172) | |||||||||||
AOCI, net of tax - pension | (5,471) | (19,975) | 14,504 | |||||||||||
AOCI, net of tax - cash flow hedge | 7,361 | 12,314 | (4,953) | |||||||||||
Total shareholders' equity: | $ | 3,406,352 | $ | 3,429,292 | $ | (22,940) | ||||||||
Less: Goodwill and other intangibles | 649,703 | 379,772 | 269,931 | |||||||||||
Tangible shareholders' equity (non-GAAP) | $ | 2,756,649 | $ | 3,049,520 | $ | (292,871) | ||||||||
Common shares outstanding | 186,305,332 | 186,758,154 | (452,822) | |||||||||||
Per share: | ||||||||||||||
Common stock | $ | 0.01 | $ | 0.01 | $ | — | ||||||||
Additional paid in capital | 9.85 | 9.94 | (0.09) | |||||||||||
Unallocated ESOP common stock | (0.77) | (0.77) | — | |||||||||||
Retained earnings | 9.49 | 9.36 | 0.14 | |||||||||||
AOCI, net of tax - available for sale securities | (0.31) | (0.14) | (0.18) | |||||||||||
AOCI, net of tax - pension | (0.03) | (0.11) | 0.08 | |||||||||||
AOCI, net of tax - cash flow hedge | 0.04 | 0.07 | (0.03) | |||||||||||
Total shareholders' equity: | $ | 18.28 | $ | 18.36 | $ | (0.08) | ||||||||
Less: Goodwill and other intangibles | 3.49 | 2.03 | 1.45 | |||||||||||
Tangible shareholders' equity (non-GAAP) | $ | 14.80 | $ | 16.33 | $ | (1.53) |
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