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EX - 99.1 2 ebc - 20210331xq12021earning.htm EX - 99.1 - Q1 2021 EARNINGS PRESS RELEASE Exhibit 99.1 Eastern Bankshares , Inc. Reports First Quarter 2021 Financial Results BOSTON , April 29 , 2021 ( BUSINESS WIRE ) - Eastern Bankshares , Inc. ( the “ Company , ” or together with its affiliates and subsidiaries , " Eastern " ) ( NASDAQ Global Select Market : EBC ) , the stock holding company of Eastern Bank , today announced 2021 first quarter financial results . Net income for the first quarter of 2021 was $ 47.7 million , or $ 0.28 per share , compared to a net loss of $ 44.1 million , or $ 0.26 per share , reported for the fourth quarter of 2020. Operating net income * for the first quarter of 2021 was $ 46.5 million , or $ 0.27 per share , compared to $ 31.6 million , or $ 0.18 per share , reported for the fourth quarter of 2020 . The quarter over quarter increase in operating net income * of $ 14.9 million is attributed to a combination of seasonally high insurance revenues which increased $ 5.7 million , notably higher interest rate swap revenue driven by an increase in the fair value of these transactions which was due to higher longer term interest rates , higher salary and wage expense deferrals in part due to Paycheck Protection Program ( " PPP " ) lending activity , and lower incentive compensation expense . In addition to these items , which are expected to be specific to the first quarter , Eastern continued to make progress on improving its overall profitability and efficiency . The release of the Company's quarterly financial results follows its announcement of the pending merger with Century Bancorp , Inc. ( " Century ” ) . Eastern expects the merger will create a combined franchise with approximately $ 22 billion in total assets and solidify Eastern's leading position in Boston and eastern Massachusetts . The merger is expected to close in the middle of the fourth quarter of 2021 , subject to certain conditions , including the receipt of required regulatory approvals , shareholder approval , and other standard conditions . The Company also recently announced a 33 % increase to its quarterly cash dividend to $ 0.08 per share . " We're off to a tremendous start in 2021 and I'd like to thank all of our employees for their contributions , " said Bob Rivers , Chief Executive Officer and Chair of the Board of Eastern Bankshares , Inc. and Eastern Bank . " Our financial results for the first quarter show strong organic growth , sound asset quality , and reflect our continued commitment to be a source of financial support to businesses in need during the pandemic with the origination of $ 453 million in PPP loans in the first quarter . As we look to the future , our recently announced agreement to merge with Century is the next step in our journey towards expanding our presence in the communities we serve , and we look forward to welcoming Century's customers . " HIGHLIGHTS FOR THE FIRST QUARTER OF 2021 • • • Net income was $ 47.7 million , or $ 0.28 per share , and operating net income * was $ 46.5 million , or $ 0.27 per share . Total revenue was $ 155.3 million and total operating revenue * was $ 153.6 million driven by seasonally high insurance revenues of $ 28.1 million . Release of loan loss reserves of $ 0.6 million , with $ 178.4 million in remaining COVID - 19 modified loans . Originated $ 452.6 million in new PPP loans to approximately 4,700 borrowers . Book value and tangible book value per share * were $ 18.14 and $ 16.12 , respectively . BALANCE SHEET Total assets were $ 16.7 billion at March 31 , 2021 , representing an increase of $ 0.8 billion or 5 % from December 31 , 2020 . • Available for sale securities increased $ 0.8 billion , or 25 % , on a consecutive quarter basis , to $ 4.0 billion , as excess liquidity was deployed into U.S. Agency securities . Cash and equivalents declined $ 0.2 billion to $ 1.9 billion . Total loans were $ 9.9 billion , representing an increase of $ 186.0 million or 2 % from the prior quarter as originations , including $ 452.6 million in new PPP loans , outpaced PPP forgiveness and other loan paydowns . Total PPP loans were $ 1.2 billion at March 31 , 2021 . Deposits totaled $ 13.0 billion , representing an increase of $ 0.8 billion , or 7 % , from December 31 , 2020 . Shareholders ' equity was $ 3.4 billion , representing a decrease of $ 41.0 million or 1 % from the prior quarter . The increase in retained earnings of $ 37.3 million was more than offset by the after - tax market value decline of the available for sale investment portfolio , which drove the decrease in accumulated other comprehensive income of $ 80.4 million . The decline in market value can be attributed to the increase in medium and long - term rates during the quarter . At March 31 , 2021 , book value per share was $ 18.14 and tangible book value per share * was $ 16.12 . NET INTEREST INCOME Net interest income was $ 100.1 million for the first quarter , compared to $ 103.6 million in the prior quarter , representing a decrease of $ 3.5 million on a consecutive quarter basis . There were two fewer days in the first quarter as compared to