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EX - 99.1 2 ebc - 20210630xq22021earning.htm EX - 99.1 - Q2 2021 EARNINGS PRESS RELEASE Exhibit 99.1 Eastern Bankshares , Inc. Reports Second Quarter 2021 Financial Results and Declares Quarterly Dividend BOSTON , July 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 its 2021 second quarter financial results and the declaration of a quarterly cash dividend of $ 0.08 per share . Net income for the second quarter of 2021 was $ 34.8 million , or $ 0.20 per share , compared to net income of $ 47.7 million , or $ 0.28 per share , reported for the first quarter of 2021 . Financial results for the second quarter of 2021 include $ 3.5 million in merger and acquisition expenses , primarily related to the pending merger with Century Bancorp , Inc. ( " Century ” ) announced on April 7 , 2021 and $ 3.3 million in expenses related to the anticipated settlement of overdraft litigation . Excluding these , and certain other non - operating expenses , operating net income * for the second quarter of 2021 was $ 37.1 million , or $ 0.22 per share , compared to $ 46.5 million , or $ 0.27 per share , reported for the prior quarter . " Our second quarter financial results continue to demonstrate our organic growth , strong fee income generation , sound asset quality , and focus on our long - term profitability , " said Bob Rivers , Chief Executive Officer and Chair of the Board of Eastern Bankshares , Inc. and Eastern Bank . “ COVID - 19 vaccination rates in our core markets are among the highest in the country , and we're seeing significant progress in our local economy as businesses were able to reopen their doors and look to the future . Excluding PPP loans , we saw loan growth of $ 117 million this quarter , or growth of over 5 % on an annualized basis , which provides further evidence of confidence and business expansion . We are optimistic about our continued growth as our colleagues work diligently on the integration of Century . We're pleased that Century shareholders approved the transaction earlier this month and are working towards a smooth integration later this year . " HIGHLIGHTS FOR THE SECOND QUARTER OF 2021 • • • Total loans excluding Small Business Administration ( " SBA " ) Paycheck Protection Program ( " PPP " ) loans grew $ 116.9 million , or 5 % on an annualized basis from the prior quarter . Residential and commercial loans excluding PPP loans grew 15 % and 5 % , respectively , on an annualized basis from the prior quarter . Net interest income increased $ 4.5 million from the prior quarter due to growth in the Company's securities portfolio and higher loan income , primarily attributable to higher PPP fee recognition . An improving economic outlook coupled with strong asset quality led to a $ 3.3 million release of loan loss reserves . Nonperforming loans were $ 41.6 million , or 0.43 % of total loans at the end of the second quarter . The second quarter saw solid fee generation with insurance , wealth management and debit card revenues up 4 % , 17 % and 36 % , respectively , from the prior year quarter . BALANCE SHEET Total assets were $ 17.0 billion at June 30 , 2021 , representing an increase of $ 320.7 million , or 2 % , from March 31 , 2021 . • • Available for sale securities increased $ 862.5 million , or 22 % , on a consecutive quarter basis , to $ 4.8 billion , as excess liquidity was deployed into U.S. Agency securities . Cash and equivalents declined $ 296.1 million to $ 1.6 billion . Total loans were $ 9.6 billion , representing a decrease of $ 295.4 million , or 3 % , from the prior quarter as the pace of forgiveness of PPP loans accelerated in the second quarter . Excluding PPP loans , total loans grew $ 116.9 million , or 1 % , from the prior quarter , driven by growth in commercial loans excluding PPP loans of $ 80.7 million and residential loans of $ 51.0 million . Deposits totaled $ 13.3 billion , representing an increase of $ 269.6 million , or 2 % , from March 31 , 2021 . Shareholders ' equity was $ 3.4 billion , representing an increase of $ 43.6 million , or 1 % , from the prior quarter . The increase is driven by higher retained earnings of $ 21.0 million as well as an increase in the after - tax market value of the available for sale investment portfolio , which drove the increase in accumulated other comprehensive income of $ 19.9 million . At June 30 , 2021 , book value per share was $ 18.37 and tangible book value per share * was $ 16.33 . NET INTEREST INCOME Net interest income was $ 104.6 million for the second quarter , compared to $ 100.1 million in the prior quarter , representing an increase of $ 4.5 million on a consecutive quarter basis . • Included in net interest income was $ 9.3 million and $ 8.3 million of SBA PPP fee accretion net of deferred cost amortization in the second quarter and prior quarter , respectively . Between March 31 , 2021 and June 30 , 2021 , $ 502.9 million in PPP loans were forgiven through the SBA or otherwise paid down compared to $ 240.7 million in