Eastern Bankshares (EBC) Q3 2024 earnings summary

Executive summary

• Completed merger with Cambridge Trust/Cambridge Bancorp, adding $3.7B in loans, $3.9B in deposits, and expanding wealth management services and AUM.

• Q3 2024 reported net loss of $6.2M, driven by $40.9M provision on non-PCD loans and $30.5M in merger-related charges; operating net income was $49.7M, or $0.25 per share.

• Board approved a 9% dividend increase to $0.12 per share and repurchased 836,399 shares for $12.6M.

• Achieved key strategic goals, including becoming the largest community bank and bank-owned investment advisor in Massachusetts.

• Recognized for community impact, charitable giving, and workplace inclusion.

Financial highlights

• Net interest income rose to $169.9M, up 23.8% year-over-year and 32% sequentially; net interest margin increased to 2.97%.

• Noninterest income grew 75% year-over-year to $33.5M, with trust and investment advisory fees up to $14.9M.

• Noninterest expense increased to $159.8M, mainly due to merger-related costs.

• Allowance for loan losses rose to $253.8M (1.43% of loans), up from $149.0M (1.07%) at year-end 2023.

• Book value per share was $17.09; tangible book value per share was $12.17.

Outlook and guidance

• Q4 2024 net interest income expected at $175–$180M; FTE NIM projected at 3.00%–3.05%.

• Operating noninterest income forecasted at $33–$34M; operating noninterest expense at $130–$132M.

• Tax rate anticipated at 22%–23% for the full year.

• Loan balances expected to be stable; deposit declines anticipated due to seasonality.

• 2025 guidance to be provided in January after budget process.