EX-99.1 2 ebc-20241231xq42024earninga.htm EX-99.1 - Q4 2024 EARNINGS PRESS RELEASE Document
Exhibit 99.1
Eastern Bankshares, Inc. Reports Fourth Quarter 2024 Net Income of $60.8 Million, or $0.30 per Diluted Share
~ Company Announces 2025 Investment Portfolio Repositioning ~

•Operating net income* of $68.3 million, or $0.34 per diluted share.
•$1.2 billion investment portfolio repositioning in Q1 2025 anticipated to add approximately $0.13 to 2025 operating EPS.
•Net interest margin on a fully tax equivalent basis* expanded 8 basis points to 3.05%, primarily due to lower cost of funds.
•Annualized net charge-offs of 0.71% of average total loans primarily driven by purchased credit deteriorated loans acquired from Cambridge Trust.
•Strong balance sheet with robust capital and reserve levels. Year-end CET1 ratio of 15.73%(1) and allowance coverage of total loans of 1.29%.

BOSTON, January 23, 2025 (BUSINESS WIRE) — Eastern Bankshares, Inc. (the “Company”) (NASDAQ: EBC), the holding company of Eastern Bank, today announced its fourth quarter 2024 financial results.
FINANCIAL HIGHLIGHTS
As of and for three months endedLinked quarter Change
(Unaudited, $ in millions, except per share data)Dec 31, 2024Sep 30, 2024△ $△ %
Earnings
Net income (loss) $60.8 $(6.2)$67.0 NM
Per share, diluted$0.30 $(0.03)$0.33 NM
Operating net income*$68.3 $49.7 $18.6 37 %
Per share, diluted*$0.34 $0.25 $0.09 36 %
Net interest income$179.2 $169.9 $9.3 5 %
NIM - FTE *3.05 %2.97 %0.08 %NM
Noninterest income$37.3 $33.5 $3.8 11 %
Operating noninterest income*$36.9 $32.9 $4.0 12 %
Noninterest expense$137.5 $159.8 $(22.2)(14)%
Operating noninterest expense*$133.7 $130.9 $2.9 2 %
Efficiency ratio63.5 %78.5 %(15.0)%NM
Operating efficiency ratio*57.2 %60.1 %(2.9)%NM
Balance sheet
Period-end balances
  Loans$18,079 $18,064 $15 0.1 %
  Deposits$21,292 $21,217 $75 0.4 %
Average balances
  Loans$17,803 $17,275 $528 3 %
  Deposits $21,439 $20,858 $581 3 %
Capital
Tangible shareholders’ equity / tangible assets*10.45 %10.69 %(0.24)%NM
CET1 capital ratio (1)15.73 %15.50 %0.23 %NM
Book value per share$16.89 $17.09 $(0.20)(1)%
Tangible book value per share*$11.98 $12.17 $(0.19)(2)%
Asset quality
Non-performing loans$135.8 $124.5 $11.3 9 %
Total non-performing loans to total loans0.76 %0.70 %0.06 %NM
Net charge-offs to average total loans 0.71 %0.12 %0.59 %NM
(1) CET1 capital ratio as of December 31, 2024 is a preliminary estimate.
*Non-GAAP Financial Measure.

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The Company’s fourth quarter results reflect the first full quarter impact of the merger with Cambridge Bancorp (“Cambridge”) (“the merger”). The Company’s third quarter financial results included a partial quarter impact of the merger, which closed on July 12, 2024.

“As we close out the fourth quarter and reflect on another successful year, our most significant milestone was the merger with Cambridge Trust,” said Bob Rivers, Executive Chair and Chair of the Board of Directors of the Company and Eastern Bank. “This combination not only solidifies our position as a leading financial institution in our region but also allows us to deliver a broader suite of offerings to our customers, greater opportunities for our colleagues, and even stronger commitment to our communities.”

Denis Sheahan, Chief Executive Officer, added, “We remain focused on continuing to capitalize on merger synergies, long-term growth opportunities, and our overall financial performance. After meeting or exceeding our merger related financial targets, we posted full year operating net income of $192.6 million, 18% higher than 2023. We are well positioned to continue to deepen and expand customer relationships in our retail, commercial and wealth divisions as we continue to leverage our market presence in and around Boston.“

“Our fourth quarter financial results were very positive,” said David Rosato, Chief Financial Officer. “Our margin expanded by 8 basis points, supported by a reduction in deposit costs. We continue to maintain a strong balance sheet with exceptional levels of liquidity, capital, and credit reserves. In early 2025, we are in the process of repositioning our investment portfolio which will accelerate improvement in our financial performance, adding approximately 18 basis points to the margin and $0.13 to operating earnings per share in 2025. Our CET1 capital ratio will decline by less than one percent, and we expect to rebuild approximately half of that capital position by the end of 2025 through stronger earnings.”

BALANCE SHEET

Total assets were $25.6 billion at December 31, 2024, an increase of $50.7 million, or 0.2% from September 30, 2024.

•Cash and equivalents increased $117.4 million to $1.0 billion.
•Securities decreased $148.5 million, or 3.2%, to $4.4 billion, due to a decline in the market value of available for sale securities (“AFS securities”) driven by higher interest rates, sale of $116 million in AFS securities, and principal runoff, partially offset by the purchase of $200 million in AFS securities.
•Loans totaled $18.1 billion, an increase of $15.0 million.

Deposits totaled $21.3 billion, an increase of $74.8 million, primarily driven by growth in business checking deposits, as well as a seasonal growth in municipal deposits, partially offset by a decrease in time deposits.

Shareholders’ equity was $3.6 billion, a decrease of $59.2 million, due primarily to decreases in accumulated other comprehensive income, partially offset by an increase in retained earnings.

•Book value per share and tangible book value per share* ended the quarter at $16.89 and $11.98, respectively.

Please refer to Appendix D for a roll-forward of tangible shareholders’ equity*.

NET INTEREST INCOME

Net interest income was $179.2 million for the fourth quarter, an increase of $9.3 million, due to an increase in the net interest margin and average earning assets.

•The net interest margin on a FTE basis* was 3.05%, an 8 basis point increase, as funding costs declined faster than asset yields.
•The yield on total interest-earning assets decreased 4 basis points from the prior quarter to 4.56%, due primarily to decreases in loan yields of 8 basis points and average securities volume, partially offset by higher short-term investments volume.
•Total interest-bearing liabilities cost decreased 17 basis points to 2.33%, due primarily to deposit pricing decreases.
•Net interest income included net discount accretion of $12.9 million from purchase accounting adjustments in connection with the Cambridge merger, compared to $10.8 million in the prior quarter.

2


NONINTEREST INCOME

Noninterest income was $37.3 million for the fourth quarter, an increase of $3.8 million. Operating noninterest income* was $36.9 million, an increase of $4.0 million.

•Trust and investment advisory fees increased $3.1 million to $18.0 million, which included a one-time item of $1.2 million.
•Service charges on deposit accounts increased $0.3 million to $8.4 million.
•Customer swap income increased $0.6 million to $1.2 million, driven primarily by higher transaction volume.
•Non-operating income from investments held in rabbi trust accounts were less than $0.1 million, compared to $3.6 million in the prior quarter due to investment performance.
•Non-operating losses on sales of AFS securities were $9.2 million due to the sale of approximately $116 million of AFS securities. There were no losses on sales of AFS securities in the prior quarter.
•Other noninterest income increased $12.8 million to $15.8 million, due primarily to the non-operating gain of $9.3 million from the sale of an equity investment. The prior quarter included a non-operating loss on merger-related disposal of fixed assets totaling $3.0 million.

NONINTEREST EXPENSE

Noninterest expense was $137.5 million, a decrease of $22.2 million. The decrease was primarily driven by a reduction in merger-related expenses of $24.0 million. Operating noninterest expense* was $133.7 million, an increase of $2.9 million.

•Salaries and employee benefits expense was $78.9 million, a decrease of $14.9 million, due primarily to a decrease in merger-related expenses of $12.0 million, as well as decreases in operating incentive compensation costs of $1.4 million, operating federal payroll tax expense of $0.7 million, and non-operating rabbi trust employee benefit expense of $1.1 million.
•Occupancy and equipment expense was $12.8 million, a decrease of $1.7 million, due primarily to a reduction in merger-related expenses.
•Data processing expense was $21.4 million, an increase of $1.9 million.
•Professional services expense was $3.3 million, a decrease of $5.7 million, due primarily to a reduction in merger-related expenses of $5.4 million.
•Marketing expense was $2.8 million, an increase of $1.2 million.
•Federal Deposit Insurance Corporation insurance expense was $3.9 million, an increase of $0.7 million.
•Amortization of intangible assets was $7.4 million, an increase of $1.1 million.
•Other noninterest expense was $7.1 million, a decrease of $4.9 million, due primarily to decreases in provision for off balance sheet credit exposures of $1.4 million, and merger-related costs.

Please refer to Appendix E for additional detail on merger charges*.

ASSET QUALITY

Non-performing loans totaled $135.8 million, or 0.76% of total loans, at December 31, 2024 compared to $124.5 million, or 0.70% of total loans, at the end of the prior quarter. The increase was driven primarily by commercial real estate office loans, partially offset by charge-off activity.

During the fourth quarter 2024, the Company recorded total net charge-offs of $31.7 million, or 0.71% of average total loans, compared to $5.1 million, or 0.12% in the prior quarter. The increase in total net charge-offs was due primarily to partial charge-offs of the purchased credit deteriorated (“PCD”) loans acquired from Cambridge.

The Company recorded a provision for loan losses totaling $6.8 million in the quarter.

The allowance for loan losses was $229.0 million at December 31, 2024, or 1.29% of total loans, compared to $253.8 million, or 1.43% of total loans, at September 30, 2024.




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2025 INVESTMENT PORTFOLIO REPOSITIONING

The Company announced an investment portfolio repositioning was underway in 2025 whereby approximately $1.2 billion of low yielding available-for-sale securities would be sold and reinvested at current market rates. The transaction is expected to be completed by the middle of the first quarter of 2025, and result in an after-tax non-operating loss of approximately $200 million. The after-tax losses are already reflected in shareholders’ equity.

DIVIDENDS AND SHARE REPURCHASES

The Company’s Board of Directors declared a quarterly cash dividend of $0.12 per common share. The dividend will be payable on March 14, 2025 to shareholders of record as of the close of business on March 3, 2025.

The Company repurchased 908,425 shares of common stock during the fourth quarter at a weighted average price of $17.41, for an aggregate purchase price of $15.8 million.

CONFERENCE CALL AND PRESENTATION INFORMATION

A conference call and webcast covering Eastern’s fourth quarter 2024 earnings will be held on Friday, January 24, 2025 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (800) 549-8228 from within the U.S. and reference conference ID 65981. The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website at investor.easternbank.com. A presentation providing additional information for the quarter is also available at investor.easternbank.com. A replay of the webcast will be available on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the holding company for Eastern Bank. Founded in 1818, Eastern Bank is Greater Boston’s leading local bank with more than 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut. As of December 31, 2024, Eastern Bank had approximately $25.6 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management division, the largest bank-owned independent investment advisor in Massachusetts with approximately $8.3 billion in assets under management, and takes pride in its outspoken advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. For investor information, visit investor.easternbank.com.

CONTACT

Investor Contact

Andrew Hersom
Eastern Bankshares, Inc.
a.hersom@easternbank.com
860-707-4432

Media Contact

Andrea Goodman
Eastern Bank
a.goodman@easternbank.com
781-598-7847

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NON-GAAP FINANCIAL MEASURES

*Denotes a non-GAAP financial measure used in the press release.

A non-GAAP financial measure is defined as a numerical measure of the Company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements).

The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures. Except as otherwise indicated, these non-GAAP financial measures presented in this press release exclude discontinued operations.

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), and the operating efficiency ratio. 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, including the “day-2” provision for allowance for loan losses for non-PCD acquired loans, (viii) the non-cash pension settlement charge recognized related to the defined benefit plan, (ix) certain discrete tax items, and (x) net income from discontinued operations. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. 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 are not provided.

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 and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of 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 includes 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.

In the third quarter of 2024, we changed our (loss) return on average tangible shareholders' equity and operating return on average tangible shareholders’ equity computations to utilize tangible net (loss) income from continuing operations and tangible operating net income, respectively, in the numerators of the computations. Tangible net (loss) income from continuing operations excludes the amortization of intangible assets and the related tax effect and tangible operating net income excludes, in addition to the adjustments to derive operating net income, the amortization of intangible assets and related tax effect. In addition, in the third quarter of 2024, we changed the computation of our operating efficiency ratio to
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exclude, in addition to the adjustments made to operating net income, the amortization of intangible assets. Management believes the changes to such ratios result in a more meaningful measure of our financial performance and such measures are used by management when analyzing corporate performance.

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

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target”, “outlook” 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; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks associated with the Company’s implementation of the merger, including that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that Eastern’s business may not perform as expected in the years following the merger; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; and disruptions arising from transitions in management personnel; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiaries, including Eastern Bank, are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics and the failure of the Company to execute its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov.

You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements.
6

EASTERN BANKSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (1)

Certain information in this press release is presented as reviewed by the Company’s management and includes information derived from the Company’s Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of and for the three months ended
(Unaudited, dollars in thousands, except per-share data)Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
Earnings data
Net interest income$179,193 $169,855 $128,649 $129,900 $133,307 
Noninterest income37,349 33,528 25,348 27,692 26,739 
Total revenue216,542 203,383 153,997 157,592 160,046 
Noninterest expense137,544 159,753 109,869 101,202 121,029 
Pre-tax, pre-provision income78,998 43,630 44,128 56,390 39,017 
Provision for allowance for loan losses6,820 46,983 6,126 7,451 5,198 
Pre-tax income (loss) 72,178 (3,353)38,002 48,939 33,819 
Net income (loss) from continuing operations60,771 (6,188)26,331 38,647 31,509 
Net income from discontinued operations— — — — 286,994 
Net income (loss)60,771 (6,188)26,331 38,647 318,503 
Operating net income (non-GAAP)68,331 49,665 36,519 38,081 16,875 
Per-share data
Earnings (loss) per share, diluted$0.30 $(0.03)$0.16 $0.24 $1.95 
Continuing operations$0.30 $(0.03)$0.16 $0.24 $0.19 
Discontinued operations$— $— $— $— $1.76 
Operating earnings per share, diluted (non-GAAP)$0.34 $0.25 $0.22 $0.23 $0.10 
Book value per share$16.89 $17.09 $16.80 $16.72 $16.86 
Tangible book value per share (non-GAAP)$11.98 $12.17 $13.60 $13.51 $13.65 
Profitability
Return on average assets0.94 %(0.10)%0.50 %0.74 %0.59 %
Operating return on average assets (non-GAAP) 1.05 %0.79 %0.70 %0.72 %0.31 %
Return on average shareholders' equity 6.64 %(0.70)%3.62 %5.23 %4.66 %
Operating return on average shareholders' equity 7.47 %5.60 %5.03 %5.17 %2.51 %
Return on average tangible shareholders' equity (non-GAAP) (2)10.16 %(0.26)%4.54 %6.52 %6.06 %
Operating return on average tangible shareholders' equity (non-GAAP) (2)11.33 %8.45 %6.28 %6.42 %3.27 %
Net interest margin (FTE)3.05 %2.97 %2.64 %2.68 %2.69 %
Cost of deposits 1.69 %1.82 %1.78 %1.66 %1.51 %
Efficiency ratio63.5 %78.5 %71.3 %64.2 %75.6 %
Operating efficiency ratio (non-GAAP) (3)57.2 %60.1 %63.7 %61.6 %73.3 %
Balance Sheet (end of period)
Total assets$25,557,880 $25,507,187 $21,044,169 $21,174,804 $21,133,278 
Total loans18,079,084 18,064,126 14,145,520 14,088,747 13,973,428 
Total deposits21,291,619 21,216,854 17,537,809 17,666,733 17,596,217 
Total loans / total deposits85 %85 %81 %80 %79 %
Asset quality
Allowance for loan losses ("ALLL")$228,952 $253,821 $156,146 $149,190 $148,993 
ALLL / total nonperforming loans ("NPLs")168.57 %203.87 %392.61 %260.94 %283.49 %
Total NPLs / total loans0.76 %0.70 %0.28 %0.41 %0.38 %
Net charge-offs ("NCOs") (recoveries) / average total loans0.71 %0.12 %(0.02)%0.21 %0.32 %
Capital adequacy
Shareholders' equity / assets14.13 %14.39 %14.10 %13.95 %14.08 %
Tangible shareholders' equity / tangible assets (non-GAAP)10.45 %10.69 %11.73 %11.58 %11.71 %
(1) Average assets and average tangible shareholders' equity components as of and for the three months ended Dec 31, 2023 presented in this table include discontinued operations.
(2) The return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.
(3) The operating efficiency ratio excludes the amortization of intangible assets.
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EASTERN BANKSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (1)

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 twelve months ended
(Unaudited, dollars in thousands, except per-share data)Dec 31, 2024Dec 31, 2023
Earnings data
Net interest income$607,597 $550,409 
Noninterest income123,917 (237,753)
Total revenue731,514 312,656 
Noninterest expense508,368 418,602 
Pre-tax, pre-provision income (loss)223,146 (105,946)
Provision for allowance for loan losses67,380 20,052 
Pre-tax income (loss) 155,766 (125,998)
Net income (loss) from continuing operations119,561 (62,689)
Net income from discontinued operations— 294,866 
Net income (loss)119,561 232,177 
Operating net income (non-GAAP)192,596 163,186 
Per-share data
Earnings (loss) per share, diluted$0.66 $1.43 
Continuing operations$0.66 $(0.39)
Discontinued operations$— $1.82 
Operating earnings per share, diluted (non-GAAP)$1.06 $1.00 
Book value per share$16.89 $16.86 
Tangible book value per share (non-GAAP)$11.98 $13.65 
Profitability
Return on average assets0.51 %(0.29)%
Operating return on average assets (non-GAAP) 0.83 %0.76 %
Return on average shareholders' equity3.66 %(2.44)%
Operating return on average shareholders' equity 5.89 %6.35 %
Return on average tangible shareholders' equity (non-GAAP) (2)5.25 %(3.19)%
Operating return on average tangible shareholders' equity (non-GAAP) (2)8.20 %8.54 %
Net interest margin (FTE) 2.85 %2.73 %
Cost of deposits 1.74 %1.24 %
Efficiency ratio69.5 %133.9 %
Operating efficiency ratio (non-GAAP) (3)60.3 %62.3 %
Balance Sheet (end of period)
Total assets$25,557,880 $21,133,278 
Total loans18,079,084 13,973,428 
Total deposits21,291,619 17,596,217 
Total loans / total deposits85 %79 %
Asset quality
Allowance for loan losses ("ALLL")$228,952 $148,993 
ALLL / total nonperforming loans ("NPLs")168.57 %283.49 %
Total NPLs / total loans0.76 %0.38 %
Net charge-offs ("NCOs") (recoveries) / average total loans 0.27 %0.09 %
Capital adequacy
Shareholders' equity / assets14.13 %14.08 %
Tangible shareholders' equity / tangible assets (non-GAAP)10.45 %11.71 %
(1) Average assets and average tangible shareholders' equity components as of and for the twelve months ended Dec 31, 2023 presented in this table include discontinued operations.
(2) The return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.
(3) The operating efficiency ratio excludes the amortization of intangible assets.
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EASTERN BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS
As ofDec 31, 2024 change from
(Unaudited, dollars in thousands)Dec 31, 2024Sep 30, 2024Dec 31, 2023Sep 30, 2024Dec 31, 2023
ASSETS△ $△ %△ $△ %
Cash and due from banks$92,590 $98,299 $87,233 $(5,709)(6)%$5,357 6 %
Short-term investments914,290 791,177 605,843 123,113 16 %308,447 51 %
Cash and cash equivalents1,006,880 889,476 693,076 117,404 13 %313,804 45 %
Available for sale ("AFS") securities4,021,598 4,163,352 4,407,521 (141,754)(3)%(385,923)(9)%
Held to maturity ("HTM") securities420,715 427,459 449,721 (6,744)(2)%(29,006)(6)%
Total securities4,442,313 4,590,811 4,857,242 (148,498)(3)%(414,929)(9)%
Loans held for sale372 1,993 1,124 (1,621)(81)%(752)(67)%
Loans:
Commercial and industrial3,296,068 3,340,029 3,034,068 (43,961)(1)%262,000 9 %
Commercial real estate7,119,523 7,174,861 5,457,349 (55,338)(1)%1,662,174 30 %
Commercial construction494,842 513,519 386,999 (18,677)(4)%107,843 28 %
Business banking1,448,176 1,321,179 1,085,763 126,997 10 %362,413 33 %
Total commercial loans12,358,609 12,349,588 9,964,179 9,021 — %2,394,430 24 %
Residential real estate4,063,659 4,080,736 2,565,485 (17,077)— %1,498,174 58 %
Consumer home equity1,385,394 1,361,971 1,208,231 23,423 2 %177,163 15 %
Other consumer271,422 271,831 235,533 (409)— %35,889 15 %
Total loans18,079,084 18,064,126 13,973,428 14,958 — %4,105,656 29 %
Allowance for loan losses(228,952)(253,821)(148,993)24,869 (10)%(79,959)54 %
Unamortized prem./disc. and def. fees(300,730)(308,243)(25,068)7,513 (2)%(275,662)1100 %
Net loans17,549,402 17,502,062 13,799,367 47,340 — %3,750,035 27 %
Federal Home Loan Bank stock, at cost5,865 5,865 5,904 — — %(39)(1)%
Premises and equipment66,641 78,776 60,133 (12,135)(15)%6,508 11 %
Bank-owned life insurance204,704 203,635 164,702 1,069 1 %40,002 24 %
Goodwill and other intangibles, net1,050,158 1,057,509 566,205 (7,351)(1)%483,953 85 %
Deferred income taxes, net332,128 319,206 266,185 12,922 4 %65,943 25 %
Prepaid expenses231,944 201,285 183,073 30,659 15 %48,871 27 %
Other assets667,473 656,569 536,267 10,904 2 %131,206 24 %
Total assets$25,557,880 $25,507,187 $21,133,278 $50,693 — %$4,424,602 21 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand$5,992,082 $5,856,171 $5,162,218 $135,911 2 %$829,864 16 %
Interest checking accounts4,606,250 4,562,226 3,737,361 44,024 1 %868,889 23 %
Savings accounts1,620,602 1,681,093 1,323,126 (60,491)(4)%297,476 22 %
Money market investment5,736,362 5,572,277 4,664,475 164,085 3 %1,071,887 23 %
Certificates of deposit3,336,323 3,545,087 2,709,037 (208,764)(6)%627,286 23 %
Total deposits21,291,619 21,216,854 17,596,217 74,765 — %3,695,402 21 %
Borrowed funds:
Federal Home Loan Bank advances17,589 17,342 17,738 247 1 %(149)(1)%
Escrow deposits of borrowers27,721 29,405 21,978 (1,684)(6)%5,743 26 %
Interest rate swap collateral funds48,590 24,070 8,500 24,520 102 %40,090 472 %
Total borrowed funds93,900 70,817 48,216 23,083 33 %45,684 95 %
Other liabilities560,394 548,378 513,990 12,016 2 %46,404 9 %
Total liabilities21,945,913 21,836,049 18,158,423 109,864 1 %3,787,490 21 %
Shareholders' equity:
Common shares2,141 2,150 1,767 (9)— %374 21 %
Additional paid-in capital 2,237,494 2,246,134 1,666,441 (8,640)— %571,053 34 %
Unallocated common shares held by the employee stock ownership plan ("ESOP")(127,842)(129,077)(132,755)1,235 (1)%4,913 (4)%
Retained earnings2,084,503 2,048,042 2,047,754 36,461 2 %36,749 2 %
Accumulated other comprehensive income ("AOCI"), net of tax(584,329)(496,111)(608,352)(88,218)18 %24,023 (4)%
Total shareholders' equity3,611,967 3,671,138 2,974,855 (59,171)(2)%637,112 21 %
Total liabilities and shareholders' equity$25,557,880 $25,507,187 $21,133,278 $50,693 — %$4,424,602 21 %
9

EASTERN BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three months endedThree months ended Dec 31, 2024 change from three months ended
(Unaudited, dollars in thousands, except per-share data)Dec 31, 2024Sep 30, 2024Dec 31, 2023Sep 30, 2024Dec 31, 2023
Interest and dividend income:△ $△ %△ $△ %
Interest and fees on loans$234,722 $230,824 $168,419 $3,898 2 %$66,303 39 %
Taxable interest and dividends on securities22,064 22,421 23,782 (357)(2)%(1,718)(7)%
Non-taxable interest and dividends on securities1,446 1,444 1,434 2 — %12 1 %
Interest on federal funds sold and other short-term investments12,529 11,329 10,011 1,200 11 %2,518 25 %
Total interest and dividend income270,761 266,018 203,646 4,743 2 %67,115 33 %
Interest expense:
Interest on deposits91,102 95,334 67,389 (4,232)(4)%23,713 35 %
Interest on borrowings466 829 2,950 (363)(44)%(2,484)(84)%
Total interest expense91,568 96,163 70,339 (4,595)(5)%21,229 30 %
Net interest income179,193 169,855 133,307 9,338 5 %45,886 34 %
Provision for allowance for loan losses6,820 46,983 5,198 (40,163)(85)%1,622 31 %
Net interest income after provision for allowance for loan losses172,373 122,872 128,109 49,501 40 %44,264 35 %
Noninterest income:
Trust and investment advisory fees17,962 14,909 6,128 3,053 20 %11,834 193 %
Service charges on deposit accounts8,426 8,140 7,514 286 4 %912 12 %
Debit card processing fees3,602 3,806 3,398 (204)(5)%204 6 %
Interest rate swap income (losses)1,169 565 (576)604 107 %1,745 (303)%
Income from investments held in rabbi trusts5 3,591 4,969 (3,586)(100)%(4,964)(100)%
Losses on sales of commercial and industrial loans— — (87)— — %87 (100)%
Losses on sales of mortgage loans held for sale, net(325)(385)(219)60 (16)%(106)48 %
Losses on sales of securities available for sale, net(9,241)— — (9,241)— %(9,241)— %
Other15,751 2,902 5,612 12,849 443 %10,139 181 %
Total noninterest income 37,349 33,528 26,739 3,821 11 %10,610 40 %
Noninterest expense:
Salaries and employee benefits78,897 93,759 67,773 (14,862)(16)%11,124 16 %
Office occupancy and equipment12,752 14,470 9,195 (1,718)(12)%3,557 39 %
Data processing21,380 19,504 16,753 1,876 10 %4,627 28 %
Professional services3,329 8,982 4,108 (5,653)(63)%(779)(19)%
Marketing expenses2,823 1,576 2,693 1,247 79 %130 5 %
Federal Deposit Insurance Corporation ("FDIC") insurance3,873 3,200 13,486 673 21 %(9,613)(71)%
Amortization of intangible assets7,351 6,210 505 1,141 18 %6,846 1356 %
Other7,139 12,052 6,516 (4,913)(41)%623 10 %
Total noninterest expense137,544 159,753 121,029 (22,209)(14)%16,515 14 %
Income (loss) from continuing operations before income tax expense72,178 (3,353)33,819 75,531 (2253)%38,359 113 %
Income tax expense11,407 2,835 2,310 8,572 302 %9,097 394 %
Net income (loss) from continuing operations$60,771 $(6,188)$31,509 $66,959 (1082)%$29,262 93 %
Net income from discontinued operations$— $— $286,994 $— — %$(286,994)(100)%
Net income (loss)$60,771 $(6,188)$318,503 $66,959 (1082)%$(257,732)(81)%
Share data:
Weighted average common shares outstanding, basic201,237,749196,700,222162,571,0664,537,527 2 %38,666,683 24 %
Weighted average common shares outstanding, diluted202,638,608197,706,644162,724,3984,931,964 2 %39,914,210 25 %
Earnings (loss) per share, basic:
Continuing operations$0.30 $(0.03)$0.19 $0.33 (1100)%$0.11 58 %
Discontinued operations$— $— $1.77 $— 0 %$(1.77)(100)%
Earnings (loss) per share, basic$0.30 $(0.03)$1.96 $0.33 (1100)%$(1.66)(85)%
Earnings (loss) per share, diluted:
Continuing operations$0.30 $(0.03)$0.19 $0.33 (1100)%$0.11 58 %
Discontinued operations$— $— $1.76 $— 0 %$(1.76)(100)%
Earnings (loss) per share, diluted$0.30 $(0.03)$1.95 $0.33 (1100)%$(1.65)(85)%
10

EASTERN BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME

Twelve months ended
(Unaudited, dollars in thousands, except per-share data)Dec 31, 2024Dec 31, 2023Change
Interest and dividend income:△ $△ %
Interest and fees on loans$808,041 $652,095 $155,946 24 %
Taxable interest and dividends on securities90,582 101,233 (10,651)(11)%
Non-taxable interest and dividends on securities5,766 5,736 30 1 %
Interest on federal funds sold and other short-term investments42,377 37,395 4,982 13 %
Total interest and dividend income946,766 796,459 150,307 19 %
Interest expense:
Interest on deposits337,367 226,075 111,292 49 %
Interest on borrowings1,802 19,975 (18,173)(91)%
Total interest expense339,169 246,050 93,119 38 %
Net interest income607,597 550,409 57,188 10 %
Provision for allowance for loan losses67,380 20,052 47,328 236 %
Net interest income after provision for allowance for loan losses540,217 530,357 9,860 2 %
Noninterest income:
Trust and investment advisory fees46,126 24,264 21,862 90 %
Service charges on deposit accounts32,004 28,631 3,373 12 %
Debit card processing fees14,177 13,469 708 5 %
Interest rate swap income2,819 1,536 1,283 84 %
Income from investments held in rabbi trusts9,675 9,305 370 4 %
Losses on sales of commercial and industrial loans— (2,738)2,738 (100)%
Losses on sales of mortgage loans held for sale, net(920)(507)(413)81 %
Losses on sales of securities available for sale, net(16,798)(333,170)316,372 (95)%
Other36,834 21,457 15,377 72 %
Total noninterest income (loss)123,917 (237,753)361,670 (152)%
Noninterest expense:
Salaries and employee benefits302,345 253,037 49,308 19 %
Office occupancy and equipment46,515 35,992 10,523 29 %
Data processing75,383 55,308 20,075 36 %
Professional services20,073 17,385 2,688 15 %
Marketing expenses7,824 7,592 232 3 %
Federal Deposit Insurance Corporation ("FDIC") insurance13,866 21,874 (8,008)(37)%
Amortization of intangible assets14,569 1,804 12,765 708 %
Other27,793 25,610 2,183 9 %
Total noninterest expense508,368 418,602 89,766 21 %
Income (loss) from continuing operations before income tax expense155,766 (125,998)281,764 (224)%
Income tax expense (benefit) 36,205 (63,309)99,514 (157)%
Net income (loss) from continuing operations119,561 (62,689)182,250 (291)%
Net income from discontinued operations— 294,866 (294,866)(100)%
Net income$119,561 $232,177 $(112,616)(49)%
Share data:
Weighted average common shares outstanding, basic181,126,320 162,293,020 18,833,300 12 %
Weighted average common shares outstanding, diluted182,181,073 162,403,097 19,777,976 12 %
Earnings (loss) per share, basic:
Continuing operations$0.66 $(0.39)$1.05 (269)%
Discontinued operations$— $1.82 $(1.82)(100)%
Earnings (loss) per share, basic$0.66 $1.43 $(0.77)(54)%
Earnings (loss) per share, diluted:
Continuing operations$0.66 $(0.39)$1.05 (269)%
Discontinued operations$— $1.82 $(1.82)(100)%
Earnings (loss) per share, diluted$0.66 $1.43 $(0.77)(54)%
11

EASTERN BANKSHARES, INC.
AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS

As of and for the three months ended
Dec 31, 2024Sep 30, 2024Dec 31, 2023
(Unaudited, dollars in thousands)Avg. BalanceInterestYield / CostAvg. BalanceInterestYield / CostAvg. BalanceInterestYield / Cost
Interest-earning assets:
Loans (1):
Commercial$12,265,758 $168,930 5.48 %$11,935,922 $167,712 5.59 %$9,978,154 $126,128 5.01 %
Residential3,938,128 42,857 4.33 %3,772,420 40,484 4.27 %2,573,032 23,546 3.63 %
Consumer1,601,403 27,328 6.79 %1,568,372 27,026 6.86 %1,411,374 22,835 6.42 %
Total loans17,805,289 239,115 5.34 %17,276,714 235,222 5.42 %13,962,560 172,509 4.90 %
   Total investment securities5,173,480 23,909 1.84 %5,322,650 24,259 1.81 %5,670,742 25,609 1.79 %
Federal funds sold and other short-term investments1,042,771 12,529 4.78 %833,184 11,329 5.41 %720,384 10,011 5.51 %
Total interest-earning assets24,021,540 275,553 4.56 %23,432,548 270,810 4.60 %20,353,686 208,129 4.06 %
Non-interest-earning assets1,716,954 1,606,357 834,391 
Total assets$25,738,494 $25,038,905 $21,188,077 
Interest-bearing liabilities:
Deposits:
Savings$1,660,095 $1,527 0.37 %$1,646,532 $1,526 0.37 %$1,352,239 $45 0.01 %
Interest checking4,626,205 12,745 1.10 %4,548,231 13,428 1.17 %3,753,352 7,080 0.75 %
Money market5,774,240 36,183 2.49 %5,631,626 39,994 2.83 %4,735,917 29,390 2.46 %
Time deposits3,494,638 40,647 4.63 %3,365,392 40,386 4.77 %2,656,313 30,874 4.61 %
Total interest-bearing deposits15,555,178 91,102 2.33 %15,191,781 95,334 2.50 %12,497,821 67,389 2.14 %
Borrowings82,829 466 2.24 %89,398 829 3.69 %242,437 2,950 4.83 %
Total interest-bearing liabilities15,638,007 91,568 2.33 %15,281,179 96,163 2.50 %12,740,258 70,339 2.19 %
Demand deposit accounts5,884,058 5,666,471 5,210,185 
Other noninterest-bearing liabilities573,077 564,961 555,034 
Total liabilities22,095,142 21,512,611 18,505,477 
Shareholders' equity3,643,352 3,526,294 2,682,600 
Total liabilities and shareholders' equity$25,738,494 $25,038,905 $21,188,077 
Net interest income - FTE$183,985 $174,647 $137,790 
Net interest-earning assets (2)$8,383,533 $8,151,369 $7,613,428 
Net interest margin - FTE (3)3.05 %2.97 %2.69 %
(1) Includes non-accrual loans.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.
12

EASTERN BANKSHARES, INC.
AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS

As of and for the twelve months ended
Dec 31, 2024Dec 31, 2023
(Unaudited, dollars in thousands)Avg. BalanceInterestYield / CostAvg. BalanceInterestYield / Cost
Interest-earning assets:
Loans (1):
Commercial$11,087,978 $591,885 5.34 %$9,913,968 $491,427 4.96 %
Residential3,214,769 131,648 4.10 %2,538,588 90,139 3.55 %
Consumer1,509,516 101,552 6.73 %1,381,745 86,167 6.24 %
Total loans15,812,263 825,085 5.22 %13,834,301 667,733 4.83 %
Total investment securities5,374,127 97,924 1.82 %6,247,706 108,512 1.74 %
Federal funds sold and other short-term investments810,670 42,377 5.23 %720,864 37,395 5.19 %
Total interest-earning assets21,997,060 965,386 4.39 %20,802,871 813,640 3.91 %
Non-interest-earning assets1,296,780 921,622 
Total assets$23,293,840 $21,724,493 
Interest-bearing liabilities:
Deposits:
Savings$1,466,914 $3,136 0.21 %$1,515,713 $217 0.01 %
Interest checking4,167,043 43,187 1.04 %4,070,585 24,235 0.60 %
Money market5,283,231 140,695 2.66 %4,918,343 104,002 2.11 %
Time deposits3,146,139 150,349 4.78 %2,303,520 97,621 4.24 %
Total interest-bearing deposits14,063,327 337,367 2.40 %12,808,161 226,075 1.77 %
Borrowings68,235 1,802 2.64 %418,884 19,975 4.77 %
Total interest-bearing liabilities14,131,562 339,169 2.40 %13,227,045 246,050 1.86 %
Demand deposit accounts5,348,124 5,404,208 
Other noninterest-bearing liabilities545,291 522,239 
Total liabilities20,024,977 19,153,492 
Shareholders' equity3,268,863 2,571,001 
Total liabilities and shareholders' equity$23,293,840 $21,724,493 
Net interest income - FTE$626,217 $567,590 
Net interest-earning assets (2)$7,865,498 $7,575,826 
Net interest margin - FTE (3)2.85 %2.73 %
(1) Includes non-accrual loans.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.
13

EASTERN BANKSHARES, INC.
ASSET QUALITY - NON-PERFORMING ASSETS (1)

As of
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(Unaudited, dollars in thousands)
Non-accrual loans:
Commercial$112,513 $105,099 $26,139 $40,986 $35,107 
Residential12,955 10,450 6,789 6,697 8,725 
Consumer10,352 8,954 6,843 9,490 8,725 
Total non-accrual loans135,820 124,503 39,771 57,173 52,557 
Total accruing loans past due 90 days or more:— — — — — 
Total non-performing loans135,820 124,503 39,771 57,173 52,557 
Other real estate owned— — — — — 
Other non-performing assets:— — — — — 
Total non-performing assets (1)$135,820 $124,503 $39,771 $57,173 $52,557 
Total non-performing loans to total loans0.76 %0.70 %0.28 %0.41 %0.38 %
Total non-performing assets to total assets0.53 %0.49 %0.19 %0.27 %0.25 %
(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.

EASTERN BANKSHARES, INC.
ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES)

Three months ended
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(Unaudited, dollars in thousands)
Average total loans$17,802,836 $17,274,903 $14,113,343 $14,013,714 $13,961,061 
Allowance for loan losses, beginning of the period253,821 156,146 149,190 148,993 155,146 
Net loans charged-off (recovered):
Commercial and industrial29 (7)(56)(25)(9)
Commercial real estate30,786 4,456 (2,011)7,118 7,818 
Commercial construction— — — — — 
Business banking458 356 803 (308)3,172 
Residential real estate(86)(43)(27)(21)(34)
Consumer home equity(1)(19)(59)2 (1)
Other consumer503 395 520 488 405 
Total net loans charged-off (recovered)31,689 5,138 (830)7,254 11,351 
Initial allowance established for Cambridge's PCD loans— 55,830 — — — 
Provision for allowance for loan losses (2)6,820 46,983 6,126 7,451 5,198 
Total allowance for loan losses, end of period$228,952 $253,821 $156,146 $149,190 $148,993 
Net charge-offs (recoveries) to average total loans outstanding during this period 0.71 %0.12 %(0.02)%0.21 %0.32 %
Allowance for loan losses as a percent of total loans1.29 %1.43 %1.11 %1.06 %1.07 %
Allowance for loan losses as a percent of nonperforming loans168.57 %203.87 %392.61 %260.94 %283.49 %
(2) Provision for allowance for loan losses for the three months ended September 30, 2024 includes the initial provision on non-PCD loans acquired from Cambridge.
14

APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics (1)

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
Three Months EndedTwelve Months Ended
(Unaudited, dollars in thousands, except per-share data)Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Dec 31, 2024Dec 31, 2023
Net income (loss) from continuing operations (GAAP)$60,771 $(6,188)$26,331 $38,647 $31,509 $119,561 $(62,689)
Add:
Provision for non-PCD acquired loans— 40,899 — — — 40,899 — 
Noninterest income components:
Income from investments held in rabbi trusts(5)(3,591)(1,761)(4,318)(4,969)(9,675)(9,305)
Losses on sales of securities available for sale, net9,241 — 7,557 — — 16,798 333,170 
Gain on sale of other equity investment(9,291)— — — — (9,291)— 
(Gains) losses on sales of other assets(352)2,970 2 — — 2,620 3 
Noninterest expense components:
Rabbi trust employee benefit expense239 1,326 930 1,746 1,740 4,241 3,742 
Merger and acquisition expenses3,587 27,577 3,684 1,816 1,865 36,664 5,495 
Total impact of non-GAAP adjustments3,419 69,181 10,412 (756)(1,364)82,256 333,105 
Less: net tax benefit (expense) associated with non-GAAP adjustments (2)(4,141)13,328 224 (190)13,270 9,221 107,230 
Non-GAAP adjustments, net of tax$7,560 $55,853 $10,188 $(566)$(14,634)$73,035 $225,875 
Operating net income (non-GAAP) $68,331 $49,665 $36,519 $38,081 $16,875 $192,596 $163,186 
Weighted average common shares outstanding during the period:
Basic201,237,749 196,700,222 163,145,255 162,863,540 162,571,066 181,126,320 162,293,020 
Diluted202,638,608 197,706,644 163,499,296 163,188,410 162,724,398 182,181,073 162,403,097 
Earnings (loss) per share from continuing operations, basic:$0.30 $(0.03)$0.16 $0.24 $0.19 $0.66 $(0.39)
Earnings (loss) per share from continuing operations, diluted:$0.30 $(0.03)$0.16 $0.24 $0.19 $0.66 $(0.39)
Operating earnings per share, basic (non-GAAP) $0.34 $0.25 $0.22 $0.23 $0.10 $1.06 $1.01 
Operating earnings per share, diluted (non-GAAP) $0.34 $0.25 $0.22 $0.23 $0.10 $1.06 $1.00 
Return on average assets (3)0.94 %(0.10)%0.50 %0.74 %0.59 %0.51 %(0.29)%
Add:
Provision for non-PCD acquired loans (3)0.00%0.65%0.00%0.00%0.00%0.18%0.00%
Income from investments held in rabbi trusts (3)0.00%(0.06)%(0.03)%(0.08)%(0.09)%(0.04)%(0.04)%
Losses on sales of securities available for sale, net (3)0.14%0.00%0.14%0.00%0.00%0.07%1.53%
Gain on sale of other equity investment (3)(0.14)%0.00%0.00%0.00%0.00%(0.04)%0.00%
(Gains) losses on sales of other assets (3)(0.01)%0.05%0.00%0.00%0.00%0.01%0.00%
Rabbi trust employee benefit expense (3)0.00%0.02%0.02%0.03%0.03%0.02%0.02%
Merger and acquisition expenses (3)0.06%0.44%0.07%0.03%0.03%0.16%0.03%
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)(0.06)%0.21%0.00%0.00%0.25%0.04%0.49%
Operating return on average assets (non-GAAP) (3)1.05 %0.79 %0.70 %0.72 %0.31 %0.83 %0.76 %
Return on average shareholders' equity (3)6.64 %(0.70)%3.62 %5.23 %4.66 %3.66 %(2.44)%
Add:
Provision for non-PCD acquired loans (3)0.00%4.61%0.00%0.00%0.00%1.25%0.00%
Income from investments held in rabbi trusts (3)0.00%(0.41)%(0.24)%(0.58)%(0.73)%(0.30)%(0.36)%
Losses on sales of securities available for sale, net (3)1.01%0.00%1.04%0.00%0.00%0.51%12.96%
Gain on sale of other equity investment (3)(1.01)%0.00%0.00%0.00%0.00%(0.28)%0.00%
(Gains) losses on sales of other assets (3)(0.04)%0.34%0.00%0.00%0.00%0.08%0.00%
Rabbi trust employee benefit expense (3)0.03%0.15%0.13%0.24%0.26%0.13%0.15%
Merger and acquisition expenses (3)0.39%3.11%0.51%0.25%0.28%1.12%0.21%
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)(0.45)%1.50%0.03%(0.03)%1.96%0.28%4.17%
Operating return on average shareholders' equity (non-GAAP) (3)7.47 %5.60 %5.03 %5.17 %2.51 %5.89 %6.35 %
Tangible net income
Net (loss) income (GAAP)60,771 (6,188)26,331 38,647 31,509 119,561 (62,689)
Add: Amortization of intangible assets7,351 6,210 504 504 505 14,569 1,804 
Less: Tax effect of amortization of intangible assets (4)2,036 1,720 140 140 143 4,036 509 
  Tangible net (loss) income (non-GAAP) (5)66,086 (1,698)26,695 39,011 31,871 130,094 (61,394)
Average tangible shareholders' equity:
Average total shareholders' equity (GAAP) $3,643,352 $3,526,294 $2,928,101 $2,970,759 $2,682,600 $3,268,863 $2,571,001 
Less: Average goodwill and other intangibles1,054,952 974,546 565,523 566,027 597,234 791,489 643,977 
Average tangible shareholders' equity (non-GAAP) $2,588,400 $2,551,748 $2,362,578 $2,404,732 $2,085,366 $2,477,374 $1,927,024 
Return on average tangible shareholders' equity (non-GAAP) (3) (5)10.16 %(0.26)%4.54 %6.52 %6.06 %5.25 %(3.19)%
Add:
Provision for non-PCD acquired loans (3)0.00%6.38%0.00%0.00%0.00%1.65%0.00%
Income from investments held in rabbi trusts (3)0.00%(0.56)%(0.30)%(0.72)%(0.95)%(0.39)%(0.48)%
Losses on sales of securities available for sale, net (3)1.42%0.00%1.29%0.00%0.00%0.68%17.29%
Gain on sale of other equity investment (3)(1.43)%0.00%0.00%0.00%0.00%(0.38)%0.00%
(Gains) losses on sales of other assets (3)(0.05)%0.46%0.00%0.00%0.00%0.11%0.00%
Rabbi trust employee benefit expense (3)0.04%0.21%0.16%0.29%0.33%0.17%0.19%
Merger and acquisition expenses (3)0.55%4.30%0.63%0.30%0.35%1.48%0.29%
Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)(0.64)%2.08%0.04%(0.03)%2.52%0.37%5.56%
Operating return on average tangible shareholders' equity (non-GAAP) (3) (5)11.33 %8.45 %6.28 %6.42 %3.27 %8.20 %8.54 %
(1) Average assets, average goodwill and other intangibles, and average tangible shareholders' equity components for the three months and twelve months ended Dec 31, 2023 presented in this section include discontinued operations.
(2) The net tax benefit (expense) associated with these items is generally 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. Included in the net tax benefit for the three and twelve months ended December 31, 2024 is $2.6MM and a $7.4MM, respectively, of lost state tax benefit relating to Massachusetts net operating tax losses prohibited from carryover under Massachusetts tax law. The net operating tax loss position of the Company at December 31, 2024 is primarily a result of tax losses from the 2024 Cambridge's investment portfolio sale. Additionally, as federal net operating tax loss carryovers from 2024 lower projections of 2025 taxable income, the three and twelve months ended December 31, 2024 adjustments include a $2.8MM valuation allowance against the Company’s federal charitable contribution carryforward deferred tax asset that is set to expire at the end of 2025. The net tax benefit for the three months and twelve months ended December 31, 2023 was primarily due to the tax benefit from state tax strategies associated with the utilization of capital losses as a result of the sale of securities in the first quarter of 2023. Upon the sale of securities in the first quarter of 2023, we established a valuation allowance of $17.4 million, as it was determined at that time that it was not more-likely-than-not that the entirety of the deferred tax asset related to the loss on such securities would be realized. Included in that $17.4 million was $2.8 million in expected lost state tax benefits. Following the execution of the sale of our insurance agency business in October 2023 and the resulting capital gain, coupled with tax planning strategies, a state tax benefit of $13.6 million was realized on the securities sale losses.
(3) Metrics for the three months presented on an annualized basis.
(4) The tax effect of amortization of intangible assets is calculated using the Company's combined statutory tax rate of 28.23% for the twelve months ended December 31, 2024. Prior to the fourth quarter of 2024, the Company anticipated a combined statutory rate of 27.7% for the year as reflected in the tax effect of amortization of intangible assets for the corresponding three-month periods in 2024.
(5) The tangible net income (loss), return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.

15

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 EndedTwelve Months Ended
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Dec 31, 2024Dec 31, 2023
(Unaudited, dollars in thousands)
Net interest income (GAAP)$179,193 $169,855 $128,649 $129,900 $133,307 $607,597 $550,409 
Add:
Tax-equivalent adjustment (non-GAAP) (1)4,792 4,792 4,553 4,483 4,483 18,620 17,181 
Fully-taxable equivalent net interest income (non-GAAP)$183,985 $174,647 $133,202 $134,383 $137,790 $626,217 $567,590 
Noninterest income (GAAP) $37,349 $33,528 $25,348 $27,692 $26,739 $123,917 $(237,753)
Less:
Income from investments held in rabbi trusts5 3,591 1,761 4,318 4,969 9,675 9,305 
Losses on sales of securities available for sale, net(9,241)— (7,557)— — (16,798)(333,170)
Gain on sale of other equity investment9,291 — — — — 9,291 — 
Gains (losses) on sales of other assets352 (2,970)(2)— — (2,620)(3)
Noninterest income on an operating basis (non-GAAP) $36,942 $32,907 $31,146 $23,374 $21,770 $124,369 $86,115 
Noninterest expense (GAAP) $137,544 $159,753 $109,869 $101,202 $121,029 $508,368 $418,602 
Less:
Rabbi trust employee benefit expense239 1,326 930 1,746 1,740 4,241 3,742 
Merger and acquisition expenses 3,587 27,577 3,684 1,816 1,865 36,664 5,495 
Noninterest expense on an operating basis (non-GAAP)$133,718 $130,850 $105,255 $97,640 $117,424 $467,463 $409,365 
Less: Amortization of intangible assets$7,351 $6,210 $504 $504 $505 $14,569 $1,804 
Noninterest expense for calculating the operating efficiency ratio (non-GAAP) (2)$126,367 $124,640 $104,751 $97,136 $116,919 $452,894 $407,561 
Total revenue (GAAP)$216,542 $203,383 $153,997 $157,592 $160,046 $731,514 $312,656 
Total operating revenue (non-GAAP)$220,927 $207,554 $164,348 $157,757 $159,560 $750,586 $653,705 
Efficiency ratio (GAAP)63.5 %78.5 %71.3 %64.2 %75.6 %69.5 %133.9 %
Operating efficiency ratio (non-GAAP) (2)57.2 %60.1 %63.7 %61.6 %73.3 %60.3 %62.3 %
(1) Interest income on tax-exempt loans and investment securities has been adjusted to a FTE basis using a marginal tax rate of 22.0%, 21.8%, 21.7%, 21.7%, and 21.9% for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively, and of 21.8% for the twelve months ended December 31, 2024 and December 31, 2023.
(2) The operating efficiency ratio excludes, in addition to the adjustments made to operating net income, the amortization of intangible assets. This measure is used by the Company when analyzing corporate performance and the Company believes that investors may find it useful.
16

APPENDIX C: Reconciliation of Non-GAAP Capital Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."
As of
Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
(Unaudited, dollars in thousands, except per-share data)
Tangible shareholders' equity:
Total shareholders' equity (GAAP)$3,611,967 $3,671,138 $2,967,473 $2,952,831 $2,974,855 
Less: Goodwill and other intangibles1,050,158 1,057,509 565,196 565,701 566,205 
Tangible shareholders' equity (non-GAAP)2,561,809 2,613,629 2,402,277 2,387,130 2,408,650 
Tangible assets:
Total assets (GAAP)25,557,880 25,507,187 21,044,169 21,174,804 21,133,278 
Less: Goodwill and other intangibles1,050,158 1,057,509 565,196 565,701 566,205 
Tangible assets (non-GAAP)$24,507,722 $24,449,678 $20,478,973 $20,609,103 $20,567,073 
Shareholders' equity to assets ratio (GAAP)14.13 %14.39 %14.10 %13.95 %14.08 %
Tangible shareholders' equity to tangible assets ratio (non-GAAP) 10.45 %10.69 %11.73 %11.58 %11.71 %
Common shares outstanding213,909,472 214,802,602 176,687,829 176,631,477 176,426,993 
Book value per share (GAAP)$16.89 $17.09 $16.80 $16.72 $16.86 
Tangible book value per share (non-GAAP) $11.98 $12.17 $13.60 $13.51 $13.65 

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 ofChange from
Dec 31, 2024Sep 30, 2024Dec 31, 2023Sep 30, 2024Dec 31, 2023
(Unaudited, dollars in thousands, except per-share data)
Common stock$2,141 $2,150 $1,767 $(9)$374 
Additional paid in capital2,237,494 2,246,134 1,666,441 (8,640)571,053 
Unallocated ESOP common stock(127,842)(129,077)(132,755)1,235 4,913 
Retained earnings2,084,503 2,048,042 2,047,754 36,461 36,749 
AOCI, net of tax - available for sale securities(583,875)(490,698)(584,243)(93,177)368 
AOCI, net of tax - pension26,016 5,914 7,462 20,102 18,554 
AOCI, net of tax - cash flow hedge(26,470)(11,327)(31,571)(15,143)5,101 
Total shareholders' equity:$3,611,967 $3,671,138 $2,974,855 $(59,171)$637,112 
Less: Goodwill and other intangibles1,050,158 1,057,509 566,205 (7,351)483,953 
Tangible shareholders' equity (non-GAAP) $2,561,809 $2,613,629 $2,408,650 $(51,820)$153,159 
Common shares outstanding213,909,472 214,802,602 176,426,993 (893,130)37,482,479 
Per share:
Common stock$0.01 $0.01 $0.01 $— $— 
Additional paid in capital10.46 10.46 9.45 — 1.01 
Unallocated ESOP common stock(0.60)(0.60)(0.75)— 0.15 
Retained earnings9.74 9.53 11.61 0.21 (1.86)
AOCI, net of tax - available for sale securities(2.73)(2.28)(3.31)(0.45)0.58 
AOCI, net of tax - pension0.12 0.03 0.04 0.09 0.08 
AOCI, net of tax - cash flow hedge(0.12)(0.05)(0.18)(0.07)0.06 
Total shareholders' equity:$16.89 $17.09 $16.86 $(0.21)$0.02 
Less: Goodwill and other intangibles4.91 4.92 3.21 (0.01)1.70 
Tangible shareholders' equity (non-GAAP) $11.98 $12.17 $13.65 $(0.19)$(1.68)
17

APPENDIX E: Merger-related Charges

As of and for the Three Months Ended
(Unaudited, dollars in thousands)Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
Noninterest income components:
Other (1)$(142)$(2,969)$— $— $— 
  Total noninterest income $(142)$(2,969)$— $— $— 
Noninterest expense components:
Salaries and employee benefits$1,185 $13,147 $383 $3 $5 
Office occupancy and equipment1,936 2,630 11 6 2 
Data processing421 1,384 2,249 865 1,357 
Professional services99 5,490 944 787 450 
Other(54)4,926 97 155 51 
  Total noninterest expense$3,587 $27,577 $3,684 $1,816 $1,865 
    Total merger-related charges$3,729 $30,546 $3,684 $1,816 $1,865 
(1) Disposal of acquired fixed assets.

18