Eastern Bankshares (EBC) Q4 2024 earnings summary

Executive summary

• Full-year 2024 operating net income was $192.6 million, up 18% year-over-year, with Q4 net income of $60.8 million ($0.30 per share) and operating net income of $68.3 million ($0.34 per share), driven by the Cambridge Trust merger and organic growth.

• The Cambridge Trust merger solidified regional leadership, expanded offerings, and marked Q4 as the first full quarter of combined operations.

• Maintained strong liquidity and capital, with period-end deposits up 21% year-over-year and a CET1 ratio of 15.73%.

• Strategic focus remains on organic growth, talent acquisition, and leveraging merger synergies.

Financial highlights

• Net interest income for Q4 was $179.2 million, up $9.3 million sequentially; net interest margin (FTE) expanded 8 bps to 3.05%.

• Noninterest income was $37.3 million, including a $9.3 million gain on equity investment sale and a $9.2 million securities loss.

• Noninterest expense was $137.5 million, down $22.2 million sequentially due to lower merger-related costs.

• Share repurchases totaled $28.4 million for the year, with 908,000 shares bought in Q4.

• Book value per share at quarter-end was $16.89; tangible book value per share was $11.98.

Outlook and guidance

• 2025 guidance: loan growth of 2%-4%, deposit growth of 1%-2%, net interest income of $815-$840 million, and operating noninterest income of $130-$140 million.

• Full-year FTE margin expected at 3.45%-3.55%; provision expense forecasted at $30-$40 million.

• Operating noninterest expense projected at $535-$555 million; tax rate expected at 22%-23%.

• $1.2 billion investment portfolio repositioning in Q1 2025 expected to add ~$0.13 to 2025 operating EPS and 18 bps to margin, with a ~$200 million after-tax non-operating loss already reflected in equity.

• CET1 capital ratio projected to decline by less than 1% post-repositioning, with half expected to be rebuilt by year-end 2025 through earnings.