Parents Company Financial Statements

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed financial information relative to Eastern Bankshares Inc.'s (“the parent company”) balance sheets at December 31, 2023 and 2022 and the related statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021 are presented below. The statement of shareholders’ equity is not presented below as the parent company’s shareholders’ equity is that of the consolidated Company.


BALANCE SHEETS
	As of December 31,
	2023		2022
	(In thousands)
Assets
Cash and cash equivalents(1)	$	118,256	$	126,441
Goodwill and other intangibles, net	744		744
Deferred income taxes, net	6,763		13,182
Investment in subsidiaries	2,842,099		2,327,521
Other assets	8,202		4,557
Total assets	$	2,976,064	$	2,472,445
Liabilities and shareholders’ equity
Other liabilities	$	1,209	$	655
Total liabilities	1,209		655
Shareholders’ equity	2,974,855		2,471,790
Total liabilities and shareholders’ equity	$	2,976,064	$	2,472,445

(1)Includes $116.7 million and $125.0 that is eliminated in consolidation as of December 31, 2023 and 2022, respectively.


STATEMENTS OF INCOME
	For the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Income
Interest income	$	130	$	15	$	—
Total income	130		15		—
Expenses
Professional services	4,937		899		7,393
Other	3,706		3,070		222
Total expenses	8,643		3,969		7,615
Loss before income taxes and equity in undistributed income of subsidiaries	(8,513)		(3,954)		(7,615)
Income tax (benefit) expense	(1,773)		269		(11,344)
(Loss) income before equity in undistributed income of subsidiaries	(6,740)		(4,223)		3,729
Equity in undistributed income of subsidiaries	238,917		203,982		150,936
Net income	$	232,177	$	199,759	$	154,665


STATEMENTS OF CASH FLOWS
	For the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Cash flows provided by operating activities
Net income	$	232,177	$	199,759	$	154,665
Adjustments to reconcile net income to cash provided by operating activities
Equity in undistributed income of subsidiaries	(238,917)		(203,982)		(150,936)
Share-based compensation	16,513		10,507		—
ESOP expense	7,129		9,923		9,408
Change in:
Deferred income taxes, net	6,419		4,792		(7,157)
Other, net	(4,115)		(937)		(388)
Net cash provided by operating activities	19,206		20,062		5,592
Cash flows provided by (used in) investing activities
Cash paid for acquisition, net of cash acquired	—		—		(640,890)
Return of investments in subsidiary	40,000		240,000		140,000
Contributions to other equity investments	(720)		(788)		—
Net cash provided by (used in) investing activities	39,280		239,212		(500,890)
Cash flows used in financing activities
Payment of subordinated debentures assumed in business combination (1)	—		—		(36,277)
Payments for shares repurchased under share repurchase plans	—		(201,618)		(23,224)
Dividends declared and paid to common shareholders	(66,671)		(65,886)		(51,564)
Net cash used in financing activities	(66,671)		(267,504)		(111,065)
Net decrease in cash and cash equivalents	(8,185)		(8,230)		(606,363)
Cash and cash equivalents at beginning of year	126,441		134,671		741,034
Cash and cash equivalents at end of year	$	118,256	$	126,441	$	134,671

(1)The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt.