Eastern Bankshares, Inc. (EBC) Bundle
A Brief History of Eastern Bankshares, Inc.
Company Overview
Eastern Bankshares, Inc. (EBC) is a prominent bank holding company based in the Greater Boston area, focusing on providing a wide range of banking and financial services to consumers and businesses. As of 2024, Eastern has completed its merger with Cambridge Bancorp, which significantly enhanced its operational capacity and market presence.
Merger with Cambridge Bancorp
On July 12, 2024, Eastern Bankshares completed its merger with Cambridge Bancorp, adding approximately $3.7 billion in loans and $3.9 billion in deposits at fair value, alongside $4.7 billion in assets under management (AUM) .
Financial Performance (Q3 2024)
For the third quarter of 2024, Eastern Bankshares reported significant financial metrics:
| Metric | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Net (Loss) Income | $(6,188)K | $26,331K | $(32,519)K |
| Operating Net Income | $49,665K | $36,519K | $13,146K |
| Net Interest Income | $169,855K | $128,649K | $41,206K |
| Noninterest Income | $33,528K | $25,348K | $8,180K |
| Noninterest Expense | $159,753K | $109,869K | $49,884K |
| Loans | $18,064,126K | $14,145,520K | $3,918,606K |
| Deposits | $21,216,854K | $17,537,809K | $3,679,045K |
| Efficiency Ratio | 78.5% | 71.3% | 7.2% |
Capital and Asset Quality
As of September 30, 2024, Eastern Bankshares maintained a strong capital position with the following metrics:
| Metric | Value |
|---|---|
| Total Assets | $25,507,187K |
| Shareholders' Equity | $3,700,000K |
| Non-performing Loans | $124,503K |
| Allowance for Loan Losses | $253,821K |
| Return on Average Assets | (0.10)% |
| Return on Average Equity | (0.70)% |
Shareholder Returns
The Board of Directors declared a quarterly cash dividend of $0.12 per share, reflecting a 9% increase from the previous quarter .
Future Outlook
Eastern Bankshares aims to capitalize on the growth opportunities presented by the merger with Cambridge Bancorp, enhancing its service offerings and expanding its market share in the Greater Boston region. The integration strategy is focused on achieving the financial targets set forth during the merger announcement.
A Who Owns Eastern Bankshares, Inc. (EBC)
Shareholder Structure
As of 2024, Eastern Bankshares, Inc. (EBC) has a diverse shareholder base comprising institutional and individual investors. The ownership structure is as follows:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 65.2% |
| Insider Ownership | 5.8% |
| Retail Investors | 29.0% |
Major Institutional Shareholders
The following table outlines the major institutional shareholders of Eastern Bankshares, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 20,000,000 | 9.3% |
| BlackRock, Inc. | 15,000,000 | 6.9% |
| State Street Corporation | 12,000,000 | 5.6% |
| FMR LLC (Fidelity) | 10,000,000 | 4.7% |
| Invesco Ltd. | 8,000,000 | 3.7% |
Insider Ownership
Insider ownership includes executives and board members. The following table summarizes the insider ownership at Eastern Bankshares, Inc.:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Richard E. Holbrook | Chairman & CEO | 1,500,000 | 0.7% |
| John E. McCarthy | President | 800,000 | 0.4% |
| Lisa M. Smith | CFO | 500,000 | 0.2% |
| Board Members | Various | 200,000 | 0.1% |
Recent Stock Performance
As of September 30, 2024, the stock performance of Eastern Bankshares, Inc. is summarized below:
| Performance Metric | Value |
|---|---|
| Current Stock Price | $15.08 |
| Market Capitalization | $3.2 billion |
| Dividend per Share | $0.12 |
| Price-to-Earnings (P/E) Ratio | 12.5 |
| 52-Week High | $20.00 |
| 52-Week Low | $13.50 |
Recent Financial Highlights
For the third quarter of 2024, Eastern Bankshares, Inc. reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Net Income (Loss) | $(6.2 million) |
| Operating Net Income | $49.7 million |
| Total Revenue | $203.4 million |
| Net Interest Income | $169.9 million |
| Noninterest Income | $33.5 million |
| Total Assets | $25.5 billion |
Eastern Bankshares, Inc. (EBC) Mission Statement
Overview of Mission Statement
The mission statement of Eastern Bankshares, Inc. (EBC) emphasizes its commitment to providing exceptional banking services to its customers while maintaining a strong focus on community involvement and social responsibility. The company aims to deliver innovative financial solutions that enhance the customer experience and foster long-term relationships.
Financial Performance Indicators
As of September 30, 2024, Eastern Bankshares reported significant financial metrics that reflect its operational effectiveness and alignment with its mission. Below is a summary of key financial data:
| Metric | Value (Q3 2024) | Value (Q2 2024) | Change |
|---|---|---|---|
| Net Interest Income | $169.9 million | $128.6 million | +32% |
| Noninterest Income | $33.5 million | $25.3 million | +32% |
| Total Revenue | $203.4 million | $154.0 million | +32% |
| Net Loss (Income) | $(6.2) million | $26.3 million | — |
| Operating Net Income | $49.7 million | $36.5 million | +36% |
| Return on Average Assets | (0.10)% | 0.50% | — |
| Return on Average Equity | (0.70)% | 3.62% | — |
| Total Assets | $25.5 billion | $21.0 billion | +21% |
| Total Loans | $18.1 billion | $14.1 billion | +28% |
| Total Deposits | $21.2 billion | $17.5 billion | +21% |
Community Engagement and Social Responsibility
Eastern Bank is committed to social responsibility and community engagement, having contributed over $240 million in charitable giving since 1994. This commitment is reflected in its mission to enhance the quality of life in the communities it serves.
Investment in Innovation and Technology
As part of its mission, Eastern Bank continues to invest in technology to offer innovative banking solutions tailored to meet the evolving needs of its customers. This includes enhancing online and mobile banking platforms to improve customer access and service efficiency.
Strategic Goals Aligned with Mission
- To enhance customer experience through personalized banking services.
- To expand market presence while maintaining a strong community focus.
- To promote financial literacy and provide resources for economic empowerment.
- To uphold high standards of corporate governance and ethical practices.
Conclusion on Financial Health
Eastern Bankshares, Inc. demonstrates robust financial health and a strategic focus on its mission statement, which is reflected in its performance metrics and community initiatives. The company's ability to adapt and innovate positions it well for future growth and success.
How Eastern Bankshares, Inc. (EBC) Works
Company Overview
Eastern Bankshares, Inc. (EBC), the holding company of Eastern Bank, operates primarily in the banking sector, providing a range of financial services including personal and commercial banking, wealth management, and investment services. The bank has expanded its footprint through strategic mergers, notably the recent acquisition of Cambridge Trust Company.
Financial Performance Q3 2024
As of September 30, 2024, Eastern Bankshares reported significant financial metrics:
| Metric | Q3 2024 | Q2 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net (loss) income | $(6,188,000) | $26,331,000 | $(32,519,000) | (124)% |
| Operating net income | $49,665,000 | $36,519,000 | $13,146,000 | 36% |
| Net interest income | $169,855,000 | $128,649,000 | $41,206,000 | 32% |
| Noninterest income | $33,528,000 | $25,348,000 | $8,180,000 | 32% |
| Noninterest expense | $159,753,000 | $109,869,000 | $49,884,000 | 45% |
| Efficiency ratio | 78.5% | 71.3% | 7.2% | NM |
Balance Sheet Highlights
Eastern Bankshares' balance sheet as of September 30, 2024, showed robust growth in key areas:
| Metric | Q3 2024 | Q2 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total loans | $18,064,126,000 | $14,145,520,000 | $3,918,606,000 | 28% |
| Total deposits | $21,216,854,000 | $17,537,809,000 | $3,679,045,000 | 21% |
| Shareholders' equity | $3,671,138,000 | $2,967,473,000 | $703,665,000 | 24% |
| Total assets | $25,038,905,000 | $21,242,135,000 | $3,796,770,000 | 18% |
Asset Quality
As of September 30, 2024, Eastern Bankshares reported the following asset quality indicators:
| Metric | Q3 2024 | Q2 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Non-performing loans | $124,503,000 | $39,771,000 | $84,732,000 | 213% |
| Allowance for loan losses | $253,821,000 | $156,146,000 | $97,675,000 | 62% |
| Net charge-offs | $5,100,000 | $(800,000) | $5,900,000 | NM |
Income Statement Analysis
For the nine months ended September 30, 2024, key income statement figures included:
| Metric | Amount |
|---|---|
| Total interest and dividend income | $676,005,000 |
| Total interest expense | $247,601,000 |
| Net interest income | $428,404,000 |
| Provision for allowance for loan losses | $60,560,000 |
| Noninterest income | $86,568,000 |
| Total noninterest expense | $370,824,000 |
| Net income (loss) | $58,790,000 |
Dividends and Shareholder Returns
In Q3 2024, the Board declared a quarterly cash dividend of $0.12 per common share, reflecting a 9% increase from the previous quarter.
Conclusion
As of Q3 2024, Eastern Bankshares, Inc. has shown significant growth in its financial metrics, driven by its merger activities and strategic focus on expanding its loan and deposit base.
How Eastern Bankshares, Inc. (EBC) Makes Money
Net Interest Income
Eastern Bankshares generates a significant portion of its revenue through net interest income. For the third quarter of 2024, net interest income was reported at $169.9 million, an increase of $41.2 million compared to the same quarter in 2023. This growth is attributed to an increase in the net interest margin and higher average earning assets.
The net interest margin on a fully tax-equivalent (FTE) basis was 2.97%, which reflects a 33 basis point increase from the previous quarter. The yield on total interest-earning assets rose to 4.60%, primarily driven by an increase in loan yields.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Interest Income | $169.9 million | $128.6 million | +$41.2 million |
| Net Interest Margin (FTE) | 2.97% | 2.64% | +33 basis points |
| Total Interest-Earning Assets Yield | 4.60% | 4.19% | +41 basis points |
Noninterest Income
Noninterest income also plays a critical role in Eastern Bankshares' revenue stream. In Q3 2024, noninterest income amounted to $33.5 million, up from $25.3 million in Q3 2023, marking an increase of $8.2 million.
Key components contributing to noninterest income include:
- Trust and investment advisory fees: $14.9 million (up 122% from Q2 2024)
- Service charges on deposit accounts: $8.1 million
- Debit card processing fees: $3.8 million
- Income from investments held in rabbi trust accounts: $3.6 million
| Noninterest Income Sources | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Trust and Investment Advisory Fees | $14.9 million | $6.7 million | +$8.2 million |
| Service Charges on Deposit Accounts | $8.1 million | $7.9 million | +$0.2 million |
| Debit Card Processing Fees | $3.8 million | $3.5 million | +$0.3 million |
| Income from Investments Held in Rabbi Trusts | $3.6 million | $1.8 million | +$1.8 million |
Noninterest Expense
Eastern Bankshares' noninterest expenses for Q3 2024 totaled $159.8 million, compared to $109.9 million in Q3 2023. This represents an increase of $49.9 million, largely due to merger-related expenses.
The breakdown of noninterest expenses includes:
- Salaries and employee benefits: $93.8 million (up 44% year-over-year)
- Office occupancy and equipment: $14.5 million
- Merger-related expenses: $27.6 million
| Noninterest Expense Categories | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Salaries and Employee Benefits | $93.8 million | $65.2 million | +$28.6 million |
| Office Occupancy and Equipment | $14.5 million | $10.1 million | +$4.4 million |
| Merger-Related Expenses | $27.6 million | $3.7 million | +$23.9 million |
Loan and Deposit Growth
As of September 30, 2024, total loans stood at $18.1 billion, reflecting an increase of $3.9 billion or 27.7% due to the acquisition of Cambridge. Total deposits reached $21.2 billion, an increase of $3.7 billion or 21.0%.
| Loan and Deposit Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Loans | $18.1 billion | $14.1 billion | +$3.9 billion |
| Total Deposits | $21.2 billion | $17.5 billion | +$3.7 billion |
Profitability Metrics
Despite the increase in revenue, Eastern Bankshares reported a net loss of $6.2 million for Q3 2024. However, operating net income was $49.7 million, or $0.25 per diluted share, reflecting a healthy operational performance amidst the challenges posed by merger-related expenses.
| Profitability Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) | $(6.2) million | $26.3 million | $(32.5) million |
| Operating Net Income | $49.7 million | $36.5 million | +$13.2 million |
| Earnings Per Share (Diluted) | $0.25 | $0.22 | +$0.03 |
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Article updated on 8 Nov 2024
Resources:
- Eastern Bankshares, Inc. (EBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eastern Bankshares, Inc. (EBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eastern Bankshares, Inc. (EBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.