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EX - 99.1 2 ebc - 20210930xq32021earning.htm EX - 99.1 - Q3 2021 EARNINGS PRESS RELEASE Exhibit 99.1 Eastern Bankshares , Inc. Reports Third Quarter 2021 Financial Results Company Announces Intent to Adopt Share Repurchase Program and Declares Quarterly Cash Dividend BOSTON , October 28 , 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 third quarter financial results , the declaration of a quarterly cash dividend of $ 0.08 per share , and the intent to adopt a share repurchase program . Net income for the third quarter of 2021 was $ 37.1 million , or $ 0.22 per share , compared to net income of $ 34.8 million , or $ 0.20 per share , reported for the second quarter of 2021. Operating net income * for the third quarter of 2021 was $ 37.4 million , or $ 0.22 per share , compared to $ 37.1 million , or $ 0.22 per share , reported for the prior quarter . " Our third quarter financial results continue to demonstrate strong financial performance , and as the economy continues to recover from the pandemic , we remain optimistic about our future and long - term profitability , " said Bob Rivers , Chief Executive Officer and Chair of the Board of Eastern Bankshares , Inc. and Eastern Bank . “ In the third quarter , we saw strong loan growth of $ 175 million excluding PPP loans , or a growth rate of over 8 % on an annualized basis , while continuing to demonstrate strong asset quality . As we look to the future , there's much to be excited about . We believe the combination with Century will solidify our position as the leading community bank here in Boston , and we look forward to continuing the high level of service that Century customers have come to expect . We are especially appreciative of the tremendous commitment our employees have demonstrated to our customers and the communities we serve , and thank them for their extraordinary efforts as our two organizations combine to become one . " The Company also announced that its Board of Directors has approved a share repurchase program to purchase up to 9,337,900 shares , which represents 5 % of the Company's outstanding shares of common stock over a 12 - month period . The authorization is contingent on receipt of approval or non - objection from the Board of Governors of the Federal Reserve System ( the " Federal Reserve " ) . The Company's request for non - objection is pending . Assuming receipt of approval or non- objection from the Federal Reserve , the Company does not expect the share repurchases to begin before December 2021 . Rivers continued , “ We remain committed to a thoughtful and holistic capital management strategy to deliver value for our shareholders . Our Board's approval of a share repurchase program , together with our regular quarterly dividends , demonstrates our ability to continue to drive growth and effectively deploy capital while creating shareholder value . " HIGHLIGHTS FOR THE THIRD QUARTER OF 2021 • . Operating net income * was $ 37.4 million in the third quarter , compared to $ 37.1 million in the prior quarter , and represented a 16 % increase from the prior year quarter . Loans , excluding Small Business Administration ( " SBA " ) Paycheck Protection Program ( " PPP " ) loans , grew $ 175.3 million , or 8 % on an annualized basis from the prior quarter . Commercial loans , excluding PPP loans , and residential loans each grew 9 % on an annualized basis from the prior quarter . An improving economic outlook coupled with strong asset quality led to a $ 1.5 million release of loan loss reserves . Nonperforming loans were $ 42.1 million , or 0.44 % of total loans , at the end of the third quarter compared to $ 41.7 million , or 0.43 % of total loans , at the end of the second quarter . BALANCE SHEET Total assets were $ 17.5 billion at September 30 , 2021 , representing an increase of $ 413.8 million , or 2 % , from June 30 , 2021 . • • • Available for sale securities increased $ 840.5 million , or 17 % , on a consecutive quarter basis , to $ 5.7 billion , as excess liquidity was deployed into U.S. Agency securities . Cash and equivalents declined $ 312.5 million to $ 1.3 billion . Total loans were $ 9.5 billion , representing a decrease of $ 116.5 million , or 1 % , as PPP loan forgiveness outpaced new loan originations in the third quarter . Excluding PPP loans , total loans grew $ 175.3 million , or 2 % , from the prior quarter , driven by growth in commercial loans , excluding PPP loans , of $ 143.9 million and in residential loans of $ 33.8 million . Deposits totaled $ 13.6 billion , representing an increase of $ 399.5 million , or 3 % , from June 30 , 2021 . Shareholders ' equity was $ 3.4 billion , representing a decrease of $ 1.3 million from the prior quarter . The increase in retained earnings of $ 23.3 million was more than offset by the decrease in accumulated other comprehensive income of $ 26.8 million driven by a decrease in the market value of the available for sale investment portfolio . At September 30 , 2021 , book value per share was $ 18.36 and tangible book value per share * was $ 16.33 . NET INTEREST INCOME