In This Article:
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Full Year Operating Net Income: $192.6 million, up 18% from 2023.
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Net Interest Income: $607.6 million, increased 10% from 2023.
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Net Interest Margin: Expanded by 12 basis points.
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Period-End Loans: Increased by 29% year-over-year.
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Period-End Deposits: Increased by 21% year-over-year.
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Share Repurchase: $28.4 million worth of shares repurchased.
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Dividend Increase: 9% increase in dividend.
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Assets Under Management: $8.3 billion.
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Assets Under Administration: $8.8 billion.
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GAAP Net Income (Q4): $60.8 million or $0.30 per share.
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Operating Net Income (Q4): $68.3 million, up 37% linked quarter.
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Net Operating Income Per Share (Q4): Increased 36% to $0.34.
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Operating ROA (Q4): 105 basis points, increased 26 basis points linked quarter.
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Operating Return on Average Tangible Common Equity (Q4): 11.3%, up from 8.5% in Q3.
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Operating Efficiency Ratio (Q4): Improved to 57.2%.
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CET1 Ratio: 15.7% at year-end.
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Allowance for Loan Losses: 129 basis points.
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Charge-Offs (Q4): 71 basis points.
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Noninterest Income (Q4): $37.3 million, increased $3.8 million linked quarter.
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Noninterest Expense (Q4): $137.5 million, decreased $22.2 million linked quarter.
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Deposit Costs (Q4): Reduced by 13 basis points to 169 basis points.
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Commercial Loan Pipeline: Approximately $400 million.
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Investment Portfolio Repositioning: $1.2 billion repositioning expected to be $0.13 accretive to operating EPS in 2025.
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Share Repurchase (Q4): 908,000 shares at an average price of $17.41.
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Dividend (Q1 2025): $0.12 per share.
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Non-Performing Loans (Q4): $136 million or 76 basis points of total loans.
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Criticized and Classified Loans (Q4): $595 million or 4.9% of total loans.
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eastern Bankshares Inc (NASDAQ:EBC) reported a full-year operating net income of $192.6 million, an 18% increase from 2023.
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The merger with Cambridge Trust solidified EBC's position as the largest commercial bank headquartered in Greater Boston.
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Net interest income increased by 10% from 2023, with a 12 basis points expansion in the net interest margin.
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EBC's liquidity position remains strong with a 21% year-over-year increase in period-end deposits and no wholesale funding.
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The company successfully repurchased $28.4 million worth of shares and increased the dividend by 9%.
Negative Points
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Charge-offs were elevated in the quarter at 71 basis points, primarily from PCD loans acquired from Cambridge.
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The company faces potential headwinds from the overall economic and rate environment, which could impact growth.
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There were significant credit marks taken through merger accounting, impacting financial performance.
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The investor office loan portfolio remains a primary focus due to ongoing credit cycle challenges.
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The earn-back period for the investment portfolio repositioning is longer than typical, at approximately 5.7 years.