Slides
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Q1 Earnings Presentation April 24, 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 2 Q1 2025 financial highlights • Net loss of $217.7 million, or $1.08 per diluted share due to the sale of $1.3 billion of low-yielding available-for sale ("AFS") securities. Proceeds were reinvested at higher rates and expected to be $0.13 accretive to 2025 operating EPS • Operating net income of $67.5 million, or $0.34 per diluted share • Net interest margin on a fully tax equivalent basis expanded 33 basis points to 3.38%, primarily due to higher asset yields and lower cost of funds • Non-performing loans of $91.6 million or 0.51% of totals loans, an improvement from $135.8 million or 0.76% at year-end 2024 • Strong balance sheet with robust capital and reserve levels. Quarter-end CET1 ratio of 14.15(1) and allowance coverage to total loans of 1.25% • Repurchased 2.9 million shares for $48.7 million at weighted average price of $16.62 • Board approved an 8% quarterly dividend increase to $0.13 per share Key Metrics Highlights $0.13 per share Dividend declared $67.5 million Operating net income* $(217.7) million Net loss $(1.08) $0.34 Diluted EPS Diluted operating EPS* $16.94 $12.01 BV/Share TBV/Share* 3.38% 1.48% NIM* Total deposit cost 0.51% 0.26% NPLs / total loans NCOs / avg. loans *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. 1CET1 ratio as of March 31, 2025 is preliminary.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 3 $ in millions, except per share amounts Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Net interest income $ 188.9 $ 179.2 $ 169.9 $ 128.6 $ 129.9 Noninterest (loss) income (236.1) 37.3 33.5 25.3 27.7 Total revenue (47.2) 216.5 203.4 153.9 157.6 Noninterest expense 130.1 137.5 159.8 109.9 101.2 Pre-tax, pre-provision income (177.3) 79.0 43.6 44.1 56.4 Provision for allowance for loan losses 6.6 6.8 47.0 6.1 7.5 Pre-tax (loss) income (183.9) 72.2 (3.4) 38.0 48.9 Income tax expense 33.7 11.4 2.8 11.7 10.3 Net (loss) income (217.7) 60.8 (6.2) 26.3 38.6 Net income $ (217.7) $ 60.8 $ (6.2) $ 26.3 $ 38.6 Operating net income* $ 67.5 $ 68.2 $ 51.3 $ 37.1 $ 40.0 EPS $ (1.08) $ 0.30 $ (0.03) $ 0.16 $ 0.24 Operating EPS* $ 0.34 $ 0.34 $ 0.26 $ 0.23 $ 0.24 ROA (3.52) % 0.94 % (0.10) % 0.50 % 0.74 % Operating ROA* 1.09 % 1.06 % 0.82 % 0.70 % 0.76 % ROATCE* (33.9) % 10.2 % (0.3) % 4.5 % 6.5 % Operating ROATCE* 11.7 % 11.3 % 8.7 % 6.4 % 6.7 % Efficiency ratio (275.6) % 63.5 % 78.5 % 71.3 % 64.2 % Operating efficiency ratio*1 53.7 % 57.3 % 59.7 % 63.6 % 61.0 % *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. 1Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income. Income statement • Net loss of $217.7 million • Operating net income of $67.5 million • Net interest income of $188.9 million • Noninterest loss of $236.1 million and noninterest income of $34.2 million on an operating basis* • Noninterest expense of $130.1 million on both a GAAP and operating basis* • Provision for loan losses of $6.6 million
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 4 Financial metrics* 61.0% 63.6% 59.7% 57.3% 53.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 0.24 $0.23 $0.26 $0.34 $0.34 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 0.76% 0.70% 0.82% 1.06% 1.09% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Operating efficiency ratio1 Operating ROA 6.7% 6.4% 8.7% 11.3% 11.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Operating EPS Operating ROATCE *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. 1Excludes amortization of intangible assets, in addition to non-GAAP adjustments made to operating net income.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 5 $ in millions. *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. 1Presented on a fully tax equivalent basis. 2Q1 2025 net interest income included Cambridge Trust net discount accretion of $12.2 million, compared to $12.9 million in Q4 2024 Net interest margin QoQ changes in FTE net interest income*2 Q1 2025 Q4 2024 Change Avg. Balance Cost Avg. Balance Cost Avg. Balance Cost Savings $ 1,648 0.29 % $ 1,685 0.36 % $ (37) (0.07) % DDAWI 4,493 0.91 % 4,626 1.10 % (133) (0.19) % MMDA 5,734 2.24 % 5,774 2.49 % (40) (0.25) % CD 3,211 4.17 % 3,495 4.63 % (284) (0.46) % Total I.B. deposits 15,086 2.04 % 15,580 2.33 % (494) (0.29) % Borrowings 86 3.82 % 58 3.12 % 28 0.70 % Total I.B. liab. 15,172 2.05 % 15,638 2.33 % (466) (0.28) % DDA 5,742 5,884 (142) Total deposits 20,828 1.48 % 21,464 1.69 % (636) (0.21) % Funding sources Q1 2025 Q4 2024 Change Avg. Balance Yield1 Avg. Balance Yield1 Avg. Balance Yield1 Commercial loans $ 12,305 5.40 % $ 12,266 5.48 % $ 39 (0.08) % Residential loans 3,914 4.42 % 3,938 4.33 % (24) 0.09 % Consumer loans 1,616 6.57 % 1,601 6.79 % 15 (0.22) % Total loans 17,835 5.29 % 17,805 5.34 % 30 (0.05) % Securities 4,967 2.69 % 5,173 1.84 % (206) 0.85 % Cash 438 4.29 % 1,043 4.78 % (605) (0.49) % Total I.E. assets 23,241 4.72 % 24,022 4.56 % (781) 0.16 % Earning assets $134.4 $133.2 $174.6 $184.0 $193.5 2.68% 2.64% 2.97% 3.05% 3.38% NII - FTE NIM - FTE Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 FTE net interest income and margin trend $184.0 $(6.4) $1.2 $15.1 $(0.4) $193.5 3.05% 3.38% Q4 2024 Loans Inv. & cash DepositsBorrowingsQ1 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 6 Noninterest income Q1 2025 Q4 2024 Q1 2024 QoQ YoY Investment advisory fees $ 16.4 $ 18.0 $ 6.5 $ (1.5) $ 9.9 Service charges on deposit accounts 8.3 8.4 7.5 (0.1) 0.8 Card Income 3.9 4.2 3.9 (0.3) — Customer swap income 0.5 1.2 0.7 (0.7) (0.2) (Losses) Income from investments held in rabbi trusts (1.3) — 4.3 (1.3) (5.6) Losses on sale of AFS securities (269.6) (9.2) — (260.4) (269.6) Other 5.6 14.8 4.7 (9.2) 0.9 Total noninterest (loss) income $ (236.1) $ 37.3 $ 27.7 $ (273.4) $ (263.8) Total operating noninterest income* $ 34.2 $ 36.9 $ 27.7 $ (2.7) $ 6.5 • Noninterest loss was $236.1 million • Included pre-tax non-operating losses on the sale of AFS securities of $269.6 million related to investment portfolio repositioning • Q4 2024 had $9.2 million non- operating gain on sale of an equity investment included in Other • Operating noninterest income was $34.2 million, a decrease of $2.7 million linked-quarter: • $1.5 million decrease in investment advisory fees. Prior year quarter included a favorable one-time item of $1.2 million • $1.3 million decrease in income from investments held in rabbi trusts • $0.7 million decrease in customer swap income $ in millions. *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 7 $3,384 $3,416 $8,353 $8,309 $8,442 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Assets under management AUM asset allocation 61% 30% 8%1% Equity Fixed IncomeCash OtherFees $6.5 $6.7 $14.9 $18.0 $16.4 24% 20% 41% 49% 48% Fees Fees as a % of total operating noninterest income Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $ in millions. • AUM increased from year-end due to net client flows, partially offset by market performance • Fees decreased $1.5 million. Q4 2024 included a favorable one-time item of $1.2 million • AUM fees as a percentage of AUM: 75 bps Wealth management
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 8 $101.2 $109.9 $159.8 $137.5 $130.1 $99.4 $106.2 $132.2 $134.0 $130.1 Noninterest expense Operating noninterest expense Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Noninterest expense $ in millions. *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. • Noninterest expense decreased $7.4 million linked-quarter • Q4 2024 included $3.6 million of merger-related costs • Operating noninterest expense decreased $3.8 million linked quarter: • $2.9 million decrease in operating technology and data processing costs • $1.1 million decrease in marketing expense • $0.6 million decrease in FDIC insurance • $2.1 million increase in operating salaries and benefits Q1 2025 Q4 2024 Q1 2024 QoQ YoY Salaries and employee benefits $ 79.9 $ 78.9 $ 64.5 $ 1.0 $ 15.4 Technology and data processing 18.0 21.4 16.5 (3.4) 1.5 Occupancy and equipment 10.6 12.8 9.2 (2.2) 1.4 Professional services 2.9 3.3 3.5 (0.4) (0.6) FDIC Insurance 3.3 3.9 2.3 (0.6) 1.0 Marketing 1.7 2.8 1.5 (1.1) 0.2 Amortization of intangible assets 7.8 7.4 0.5 0.4 7.3 All other 5.9 7.1 3.2 (1.2) 2.7 Total noninterest expense $ 130.1 $ 137.5 $ 101.2 $ (7.4) $ 28.9 Total operating noninterest expense* $ 130.1 $ 134.0 $ 99.4 $ (3.8) $ 30.7
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 9 • Deposits decreased $522 million linked-quarter, primarily due to seasonal outflows and runoff of high cost CDs • Total deposit cost decreased 21 basis points to 1.48% • 50% of deposits are checking, in line with prior quarter Period-end deposit balances Cost of depositsHigh quality deposit portfolio 1.66% 1.78% 1.82% 1.69% 1.48% 2.32% 2.44% 2.50% 2.33% 2.04% Interest-bearing deposit costTotal deposit cost Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Deposits $ in billions. 49% 48% 49% 50% 50% 27% 29% 26% 27% 27% 7% 7% 8% 8% 8% 16% 17% 17% 15% 15% CD Sav MMDA Checking Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025 $17.7 $17.6 $21.2 $21.3 $20.8 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 10 • Loans increased $125 million, or 3% annualized, linked quarter • Commercial increased $142 million, primarily driven by higher C&I balances, partially offset by payoffs • Residential decreased $25 million • Consumer increased $8 million driven by higher home equity balances, partially offset by a decrease in Other Consumer Loan portfolio Commercial loan composition 14,089 14,146 18,064 18,079 18,204 $10,093 $10,080 $12,350 $12,359 $12,501 $2,544 $2,563 $4,081 $4,064 $4,039$1,452 $1,503 $1,634 $1,657 $1,665 Total commercial Residential real estate Total Consumer Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025Historical loan composition 28% 57% 4% 11% Commercial and industrialCommercial real estate Commercial constructionBusiness banking $ in millions. $$$ $$
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 11 Securities portfolio Investment composition as of March 31, 20251Portfolio trends1 65% 28% 2%4% Agency RMBS Agency CMBS Treasuries Munis Corporate Debt $ in billions. 1Includes both AFS and HTM portfolios at amortized cost. $5.5 $5.3 $5.2 $5.2 $4.9 $5.1 $4.9 $4.8 $4.8 $4.4 $0.4 $0.4 $0.4 $0.4 $0.4 AFS securities HTM securities Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 • Sold $1.3 billion low yielding AFS securities and proceeds reinvested at market rates • Purchases and sales were similar security types • Sold yield: 1.43%, purchased yield: 5.0% • High quality portfolio with 96% in US Agency securities and Treasury bonds • Portfolio yield of 2.69% in Q1 2025, and 2.97% as of March 31, 2025 • The AFS unrealized loss was $333 million after tax, compared to $584 million at year-end 2024
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 12 Capital1 Regulatory capital ratios as of March 31, 2025 *Non-GAAP Financial Measure. Please refer to Appendices A-D for applicable reconciliation. 1Regulatory capital ratios as of March 31, 2025 are preliminary estimates. Capital threshold refers to the regulatory minimum to be categorized as "Well capitalized" based on the Federal Agencies' Prompt Corrective Action ("PCA") provisions. 11.7% 14.2% 14.2% 15.2% 5.0% 6.5% 8.0% 10.0% Well capitalized regulatory minimumExcess capital Tier 1 Leverage CET1 Tier 1 Capital Total Capital Capital metrics 3/31/2025 12/31/2024 3/31/2024 Tier 1 leverage ratio 11.7% 12.4% 14.3% Common equity tier 1 ("CET1") capital ratio 14.2% 15.7% 18.5% Tier 1 capital ratio 14.2% 15.7% 18.5% Total risk-based capital ("RBC") ratio 15.2% 16.8% 19.5% Tangible common equity ratio* 10.6% 10.5% 11.6% Tangible book value per share* $12.01 $11.98 $13.51 • Strong capital ratios. CET1 ratio and TCE ratio* of 14.2% and 10.6%, respectively • Strong capital position provides significant support for balance sheet optimization strategies, growth and strategic initiatives, as well as capital management strategies • Continue to strategically deploy capital during the quarter: • Completed investment portfolio repositioning of approximately $1.3 billion • Repurchased $48.7 million worth of shares at $16.62 • Board approved an 8% quarterly dividend increase to $0.13 per share • Medium-term CET1 target of ~12% Capital ratios
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 13 Net charge-offs Non-performing loans Asset quality $ in millions. • NPLs of $92 million, or 0.51% of total loans, decreased $44 million from year-end • Commercial: $71 million, (Investor office: $43 million) • Residential: $12 million • Consumer: $9 million • Allowance of $224 million, or 1.25% of total loans $57 $40 $45 $76 $44 $79 $59 $48 0.41% 0.28% 0.70% 0.76% 0.51% EB Legacy Cambridge NPL (%) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $7 $5 $12 $11 $20 0.21% (0.02)% 0.12% 0.71% 0.26% EB Legacy Cambridge NCOs / Avg. loans (%) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Commercial criticized & classified loans $549 $648 $588 $426 $416 $241 $169 $180 5.44% 6.44% 6.78% 4.86% 4.82% EB Legacy Cambridge Criticized & Classified (%) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ($1)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 14 CRE exposure1 $ in millions. 1CRE exposure excludes Construction and Business Banking except for the NOO CRE to total RBC ratio. 2NOO CRE to total RBC ratio in Q1 2025 is estimated. 3Excludes affordable housing loans. Composition Non-performing CRE loans Balance % of total CRE Avg. loan balance % in MA/ NH NPL% Multi-family $ 2,538 35 % $ 4.8 87 % — % Retail 1,026 14 % 3.1 88 % 0.9 % Office 996 14 % 3.7 100 % 4.3 % Industrial/ Warehouse 724 10 % 2.9 94 % — % Affordable housing 474 7 % 3.9 90 % 1.3 % Education 316 4 % 5.7 67 % — % Self storage 250 3 % 5.8 75 % — % All others 854 12 % 2.8 93 % — % Total CRE $ 7,177 100 % $ 3.7 89 % 0.8 % $37 $23 $25 $55 $20 $48 $38 0.7% 0.4% 1.3% 1.5% 0.8% EB legacy Cambridge NPL (%) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 • CRE portfolio of $7.2 billion, or 39% of total loans • Non-owner occupied CRE to total risk-based capital ratio2 of 217% • Composed of diversified property types • Multi-family3 is the largest segment, representing 35% of total CRE and has not had any charge-offs in the past 10+ years • Weighted average LTV at origination in low-to mid-50%s • 89% of properties are in MA or NH; 98% are in New England • $385 million criticized or classified, or 5.4% of total CRE loans, increased 0.1% from prior quarter • $58 million in NPLs, or 0.8% of total CRE loans, decreased 70 basis points from prior quarter • 84% of loans mature in 2027 or later • See slide 15 for CRE investor office exposure
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 15 CRE investor office exposure1 Risk segment and location Office 54% Mixed Use Office 38% Medical Office 8% MA suburban 57% Boston/ Cambridge 35% NH 8% Classification Balance Average loan size Criticized & Classified NPL Specific reserve Class A2 $ 80 $ 16 $ 58 $ 13 $ 5 Class B/C 796 4 105 30 10 Total $ 876 $ 5 $ 163 $ 43 $ 15 $ in millions. 1 CRE investor office exposure excludes construction and Business Banking. 2Class A defined as high-rise institutional quality buildings in Boston/Cambridge. • CRE investor office loans totaled $876 million, or 5% of total loans • Weighted average LTV of 53% at origination • 46% mixed-use or medical office • Maturities proactively managed: 12% in 2025, 12% in 2026 and 75% in 2027 or later • 100% in our footprint and 65% in suburban areas • $163 million criticized or classified, or 19% of CRE investor office loans • Adequately reserved $42 million, or 4.9% of CRE investor office, including specific reserves of $15 million • Thorough ongoing risk-based reviews on the office portfolio Maturity schedule 2Q25 3Q25 4Q25 1Q26 Accruing $ 65 $ 28 $ 10 $ 11 Non-accruing — — — 5 Total $ 65 $ 28 $ 10 $ 16
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 16 *Denotes a non-GAAP financial measure used in the document. A non-GAAP financial measure is defined as a numerical measure of the Company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements). The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures. There are items in the Company’s financial statements that impact its financial results, but which management believes are unrelated to the Company’s core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders’ equity, operating return on average tangible shareholders’ equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company’s core business and underlying trends. Such items that management does not consider to be core to the Company’s business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) other real estate owned (“OREO”) gains, (v) merger and acquisition expenses, including the “day-2” provision for allowance for loan losses for non-PCD acquired loans, (vi) certain discrete tax items. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. Non-GAAP financial measures (1)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 17 Management also presents tangible assets, tangible shareholders’ equity, average tangible shareholders’ equity, tangible book value per share, the ratio of tangible shareholders’ equity to tangible assets, return on average tangible shareholders’ equity, and operating return on average shareholders’ equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company includes the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends. In the third quarter of 2024, the Company changed its (loss) return on average tangible shareholders' equity and operating return on average tangible shareholders’ equity computations to utilize tangible net (loss) income from continuing operations and tangible operating net income, respectively, in the numerators of the computations. Tangible net (loss) income from continuing operations excludes the amortization of intangible assets and the related tax effect and tangible operating net income excludes, in addition to the adjustments to derive operating net income, the amortization of intangible assets and related tax effect. In addition, in the third quarter of 2024, the Company changed the computation of our operating efficiency ratio to exclude, in addition to the adjustments made to operating net income, the amortization of intangible assets. Management believes the changes to such ratios result in a more meaningful measure of our financial performance and such measures are used by management when analyzing corporate performance. In the first quarter of 2025, the Company changed its computation of operating net income to include income from investments held in rabbi trust and rabbi trust employee benefit expense. Management believes these changes result in a more meaningful measure of the Company’s financial performance and allow for better comparability to peer companies. These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-E for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this presentation. Non-GAAP financial measures (2)
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 18 Forward-looking statements This document contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target”, “outlook” and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements. Certain factors that could cause actual results to differ materially from expected results include; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks associated with the Company’s implementation of the merger, including that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that Eastern’s business may not perform as expected in the years following the merger; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; and disruptions arising from transitions in management personnel; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiaries, including Eastern Bank, are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics and the failure of the Company to execute its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements.
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Appendix
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 20 Appendix A: Reconciliation of non-GAAP earnings metrics (1 of 3) Three Months Ended (Unaudited, dollars in millions, except per-share data) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Net (loss) income (GAAP) $ (217.7) $ 60.8 $ (6.2) $ 26.3 $ 38.6 Add: Provision for non-PCD acquired loans — — 40.9 — — Noninterest income components: Losses on sales of securities available for sale, net 269.6 9.2 — 7.6 — Gain on sale of other equity investment — (9.3) — — — Losses (gains) on sales of other assets 0.6 (0.4) 3.0 — — Noninterest expense components: Merger and acquisition expenses — 3.6 27.6 3.7 1.8 Total impact of non-GAAP adjustments 270.3 3.2 71.4 11.2 1.8 Less: net tax (expense) benefit associated with non-GAAP adjustments (14.9) (4.2) 13.9 0.4 0.5 Non-GAAP adjustments, net of tax $ 285.2 $ 7.4 $ 57.5 $ 10.8 $ 1.3 Operating net income (non-GAAP) $ 67.5 $ 68.2 $ 51.3 $ 37.1 $ 40.0 Weighted average common shares outstanding during the period: Basic 200.0 201.2 196.7 163.1 162.9 Diluted 201.4 202.6 197.7 163.5 163.2 (Loss) earnings per share, basic: $ (1.09) $ 0.30 $ (0.03) $ 0.16 $ 0.24 (Loss) earnings per share, diluted: $ (1.08) $ 0.30 $ (0.03) $ 0.16 $ 0.24 Operating earnings per share, basic (non-GAAP) $ 0.34 $ 0.34 $ 0.26 $ 0.23 $ 0.25 Operating earnings per share, diluted (non-GAAP) $ 0.34 $ 0.34 $ 0.26 $ 0.23 $ 0.24 Note: columns may not foot due to rounding.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 21 Appendix A: Reconciliation of non-GAAP earnings metrics (2 of 3) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Return on average assets (1) (3.52) % 0.94 % (0.10) % 0.50 % 0.74 % Add: Provision for non-PCD acquired loans (1) 0.00 % 0.00 % 0.65 % 0.00 % 0.00 % Losses on sales of securities available for sale, net (1) 4.36 % 0.14 % 0.00 % 0.14 % 0.00 % Gain on sale of other equity investment (1) 0.00 % (0.14) % 0.00 % 0.00 % 0.00 % Losses (gains) on sales of other assets (1) 0.01 % (0.01) % 0.05 % 0.00 % 0.00 % Merger and acquisition expenses (1) 0.00 % 0.06 % 0.44 % 0.07 % 0.03 % Less: net tax (expense) benefit associated with non-GAAP adjustments (1) (0.24) % (0.07) % 0.22 % 0.01 % 0.01 % Operating return on average assets (non-GAAP) (1) 1.09 % 1.06 % 0.82 % 0.70 % 0.76 % Return on average shareholders' equity (1) (24.64) % 6.64 % (0.70) % 3.62 % 5.23 % Add: Provision for non-PCD acquired loans (1) 0.00 % 0.00 % 4.61 % 0.00 % 0.00 % Losses on sales of securities available for sale, net (1) 30.52 % 1.01 % 0.00 % 1.04 % 0.00 % Gain on sale of other equity investment (1) 0.00 % (1.01) % 0.00 % 0.00 % 0.00 % Losses (gains) on sales of other assets (1) 0.07 % (0.04) % 0.34 % 0.00 % 0.00 % Merger and acquisition expenses (1) 0.00 % 0.39 % 3.11 % 0.51 % 0.25 % Less: net tax benefit (expense) associated with non-GAAP adjustments (1) (1.68) % (0.46) % 1.57 % 0.06 % 0.07 % Operating return on average shareholders' equity (non-GAAP) (1) 7.63 % 7.45 % 5.79 % 5.11 % 5.41 % (1) Metrics for the three months presented on an annualized basis.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 22 Appendix A: Reconciliation of non-GAAP earnings metrics (3 of 3) Three Months Ended (Unaudited, dollars in millions) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Tangible net income Net (loss) income (GAAP) $ (217.7) $ 60.8 $ (6.2) $ 26.3 $ 38.6 Add: Amortization of intangible assets 7.8 7.4 6.2 0.5 0.5 Less: Tax effect of amortization of intangible assets (2) 2.2 2.0 1.7 0.1 0.1 Tangible net (loss) income (non-GAAP) (3) $ (212.0) $ 66.1 $ (1.7) $ 26.7 $ 39.0 Average tangible shareholders' equity: Average total shareholders' equity (GAAP) $ 3,583.3 $ 3,643.4 $ 3,526.3 $ 2,928.1 $ 2,970.8 Less: Average goodwill and other intangibles 1,047.5 1,055.0 974.5 565.5 566.0 Average tangible shareholders' equity (non-GAAP) $ 2,535.8 $ 2,588.4 $ 2,551.7 $ 2,362.6 $ 2,404.7 Return on average tangible shareholders' equity (non-GAAP) (1) (3) (33.91) % 10.16 % (0.26) % 4.54 % 6.52 % Add: Provision for non-PCD acquired loans (1) — % — % 6.38 % — % — % Losses on sales of securities available for sale, net (1) 43.12 % 1.42 % — % 1.29 % — % Gain on sale of other equity investment (1) — % (1.43) % — % — % — % Losses (gains) on sales of other assets (1) 0.10 % (0.05) % 0.46 % — % — % Merger and acquisition expenses (1) — % 0.55 % 4.30 % 0.63 % 0.30 % Less: net tax (expense) benefit associated with non-GAAP adjustments (1) (2.38) % (0.65) % 2.17 % 0.07 % 0.08 % Operating return on average tangible shareholders' equity (non-GAAP) (1) (3) 11.70 % 11.30 % 8.71 % 6.39 % 6.74 % (1) Metrics for the three months presented on an annualized basis. (2) The tax effect of amortization of intangible assets is calculated using the Company's combined statutory tax rate of 27.7%. . (3) The tangible net income (loss), return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax. Note: columns may not foot due to rounding.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 23 Appendix B: Reconciliation of non-GAAP operating revenues and expenses Three Months Ended (Unaudited, dollars in millions) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Net interest income (GAAP) $ 188.9 $ 179.2 $ 169.9 $ 128.6 $ 129.9 Add: Tax-equivalent adjustment (non-GAAP) (1) 4.6 4.8 4.8 4.6 4.5 Fully-taxable equivalent net interest income (non-GAAP) $ 193.5 $ 184.0 $ 174.6 $ 133.2 $ 134.4 Noninterest (loss) income (GAAP) $ (236.1) $ 37.3 $ 33.5 $ 25.3 $ 27.7 Less: Losses on sales of securities available for sale, net (269.6) (9.2) — (7.6) — Gain on sale of other equity investment — 9.3 — — — (Losses) gains on sales of other assets (0.6) 0.4 (3.0) — — Noninterest income on an operating basis (non-GAAP) $ 34.2 $ 36.9 $ 36.5 $ 32.9 $ 27.7 Noninterest expense (GAAP) $ 130.1 $ 137.5 $ 159.8 $ 109.9 $ 101.2 Less: Merger and acquisition expenses — 3.6 27.6 3.7 1.8 Noninterest expense on an operating basis (non-GAAP) $ 130.1 $ 134.0 $ 132.2 $ 106.2 $ 99.4 Less: Amortization of intangible assets 7.8 7.4 6.2 0.5 0.5 Noninterest expense for calculating the operating efficiency ratio (non-GAAP) (2) $ 122.3 $ 126.6 $ 126.0 $ 105.7 $ 98.9 Total revenue (GAAP) $ (47.2) $ 216.5 $ 203.4 $ 154.0 $ 157.6 Total operating revenue (non-GAAP) $ 227.7 $ 220.9 $ 211.1 $ 166.1 $ 162.1 Efficiency ratio (GAAP) (275.6) % 63.5 % 78.5 % 71.3 % 64.2 % Operating efficiency ratio (non-GAAP) (2) 53.7 % 57.3 % 59.7 % 63.6 % 61.0 % (1) Interest income on tax-exempt loans and investment securities has been adjusted to a FTE basis using a marginal tax rate of 21.8%, 22.0%, 21.8%, 21.7%, and 21.7% for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. (2) The operating efficiency ratio excludes, in addition to the adjustments made to operating net income, the amortization of intangible assets. This measure is used by the Company when analyzing corporate performance and the Company believes that investors may find it useful. Note: columns may not foot due to rounding.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 24 Appendix C: Reconciliation of non-GAAP capital metrics As of Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 (Unaudited, dollars in millions, except per-share data) Tangible shareholders' equity: Total shareholders' equity (GAAP) $ 3,582.9 $ 3,612.0 $ 3,671.1 $ 2,967.5 $ 2,952.8 Less: Goodwill and other intangibles 1,042.4 1,050.2 1,057.5 565.2 565.7 Tangible shareholders' equity (non-GAAP) 2,540.6 2,561.8 2,613.6 2,402.3 2,387.1 Tangible assets: Total assets (GAAP) 24,986.0 25,557.9 25,507.2 21,044.2 21,174.8 Less: Goodwill and other intangibles 1,042.4 1,050.2 1,057.5 565.2 565.7 Tangible assets (non-GAAP) $ 23,943.7 $ 24,507.7 $ 24,449.7 $ 20,479.0 $ 20,609.1 Shareholders' equity to assets ratio (GAAP) 14.3 % 14.1 % 14.4 % 14.1 % 13.9 % Tangible shareholders' equity to tangible assets ratio (non-GAAP) 10.6 % 10.5 % 10.7 % 11.7 % 11.6 % Common shares outstanding 211.6 213.9 214.8 176.7 176.6 Book value per share (GAAP) $ 16.94 $ 16.89 $ 17.09 $ 16.80 $ 16.72 Tangible book value per share (non-GAAP) $ 12.01 $ 11.98 $ 12.17 $ 13.60 $ 13.51 Note: columns may not foot due to rounding.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 25 Appendix D: Tangible shareholders' equity roll forward As of Change from Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Dec 31, 2024 Mar 31, 2024 (Unaudited, dollars in millions, except per-share data) Common stock $ 2.1 $ 2.1 $ 1.8 $ — $ 0.3 Additional paid in capital 2,188.6 2,237.5 1,669.1 (48.9) 519.4 Unallocated ESOP common stock (126.6) (127.8) (131.5) 1.3 5.0 Retained earnings 1,842.6 2,084.5 2,068.3 (241.9) (225.7) AOCI, net of tax - available for sale securities (332.6) (583.9) (611.8) 251.3 279.2 AOCI, net of tax - pension 24.9 26.0 6.9 (1.1) 17.9 AOCI, net of tax - cash flow hedge (16.1) (26.5) (50.0) 10.4 33.9 Total shareholders' equity: $ 3,582.9 $ 3,612.0 $ 2,952.8 $ (29.0) $ 630.1 Less: Goodwill and other intangibles 1,042.4 1,050.2 565.7 (7.8) 476.7 Tangible shareholders' equity (non-GAAP) $ 2,540.6 $ 2,561.8 $ 2,387.1 $ (21.2) $ 153.5 Common shares outstanding 211.6 213.9 176.6 (2.3) 34.9 Per share: Common stock $ 0.01 $ 0.01 $ 0.01 $ — $ — Additional paid in capital 10.34 10.46 9.45 (0.12) 0.90 Unallocated ESOP common stock (0.60) (0.60) (0.74) — 0.15 Retained earnings 8.71 9.74 11.71 (1.04) (3.00) AOCI, net of tax - available for sale securities (1.57) (2.73) (3.46) 1.16 1.89 AOCI, net of tax - pension 0.12 0.12 0.04 — 0.08 AOCI, net of tax - cash flow hedge (0.08) (0.12) (0.28) 0.05 0.21 Total shareholders' equity: $ 16.94 $ 16.89 $ 16.72 $ 0.05 $ 0.22 Less: Goodwill and other intangibles 4.93 4.91 3.20 0.02 1.72 Tangible shareholders' equity (non-GAAP) $ 12.01 $ 11.98 $ 13.51 $ 0.03 $ (1.51) Note: columns may not foot due to rounding.
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DO NOT REFRESH Color PaletteComplementary 000 / 000 / 051 Body text 074 / 075 / 076 030 / 152 / 213 185 / 197 / 212 023 / 061 / 110 119 / 139 / 154 255 / 107 / 000109 / 110 / 112 237 / 237 / 238 000 / 139 / 151 137 / 139 / 141 197 / 064 / 044 166 / 168 / 171 103 / 086 / 164 208 / 210 / 211 238 / 184 / 028 26 Appendix E: Merger-related charges As of and for the Three Months Ended (Unaudited, dollars in millions) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Noninterest income components: Other (1) $ — $ (0.1) $ (3.0) $ — $ — Total noninterest income $ — $ (0.1) $ (3.0) $ — $ — Noninterest expense components: Salaries and employee benefits $ — $ 1.2 $ 13.1 $ 0.4 $ — Occupancy and equipment — 1.9 2.6 — — Technology and data processing — 0.4 1.4 2.2 0.9 Professional services — 0.1 5.5 0.9 0.8 Other — (0.1) 4.9 0.1 0.2 Total noninterest expense $ — $ 3.6 $ 27.6 $ 3.7 $ 1.8 Total merger-related charges $ — $ 3.7 $ 30.6 $ 3.7 $ 1.8 (1) Disposal of acquired fixed assets. Note: columns may not foot due to rounding.
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Merger with April 24, 2025
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2 Transaction highlights: + o Bolsters Greater Boston density o Strengthens footprint south of the city o Expands into Rhode Island market o Sizable EPS accretion (~16%) o Manageable TBVPS dilution (~2.8 year earnback) o Results in top quartile profitability o Capture greater share of wealth and commercial opportunities o Enhance combined mortgage business o Opportunity to align deposit strategies o In-market transaction o Conservative assumptions o Experienced acquiror o Robust pro forma capital, liquidity and credit reserves o Flexibility for future capital deployment Enhances footprint Financially attractive Meaningful upside opportunities Low execution risk Fortress balance sheet Note: See page 13 for detailed assumptions
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3 Overview of Key metrics $5.7bn Total assets $4.6bn Total deposits $4.8bn Total loans ⚫ Founded in 1917 and headquartered in Brockton, MA ⚫ Focused on community banking and personalized financial services ⚫ 30 branches across Metro Boston, Southeast Massachusetts and Rhode Island ⚫ Ranked top 5 in deposit market share in >50% of markets served ⚫ Deep community engagement and recognized as one of the most charitable companies in Massachusetts ⚫ HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, provides mortgage lending services throughout New England and other states ⚫ Seasoned management team and Board led by Chairman Michael Sullivan and CEO Joseph Casey Source: FactSet; S&P Global Market Intelligence; Note: Financial data as of March 31, 2025; Market data as of April 23, 2025 ¹ FDIC Summary of Deposits data as of June 30, 2024 Company overview ~$430mm Market cap 11.9% CET1 9.2% TCE/TA #2 Deposit rank $106k Household income 66k Businesses Plymouth, MA $2,495 Top 5 counties Bristol, MA Providence, RI Kent, RI Norfolk, MA Deposits ($mm) Branches $613 $461 $406 $288 4 8 5 6 5 Attractive markets¹
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4 $3.1 $3.2 $3.7 $3.9 $3.9 $4.6 $5.3 $5.4 $5.6 $5.6 $14.9 $17.8 $20.8 $24.0 $25.1 $58.6 $88.8 Source: S&P Global Market Intelligence; Pro forma figures based on midpoint 80% stock / cash split ¹ Excludes trust banks; Mid-sized bank defined as <$100bn in total assets; Based on FDIC Summary of Deposits data as of June 30, 2024 ² Pro forma for pending transactions Transaction bolsters Eastern’s premier Boston area franchise and expands into Rhode Island Bank of America Citizens Santander JPMorgan Chase TD Independent² Brookline² Deposits ($bn) in Boston MSA Dense footprint in attractive markets Inst. for Savings Leader Needham M&T Salem Five Scale with top financial performance Solidifies position as largest Boston mid-sized bank by deposits¹ Cambridge Savings Middlesex Pro forma metrics ~1.40% Fully-synergized 2026E ROAA $31.0bn Assets ~$8.5bn Wealth AUM ~15.5% Fully-synergized 2026E ROATCE $26.2bn Deposits >12.5% CET1 CT RI MA NH Worcester Lowell Manchester Concord Salem Newport New Bedford New London Boston Providence HarborOne 30 branches in MA and RI HarborOne Corporate HQ Eastern Bank Corporate HQ Eastern Bank 109 branches in MA and NH Boston MSA Providence MSA
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5 Strong returns Enhanced profitability Fortress balance sheet Financially compelling ~7% / ~2.8 TBVPS dilution / earnback (yrs) ~1% / ~1.0 without rate marks ~18%+ IRR ~16%+ 2026E EPS accretion¹ ~3.70% Net interest margin ~50% Efficiency ratio¹ ~15.5% ROATCE¹ >12.5% CET1 ~90% Loans / deposits ~17% Cash and securities / assets Meaningful EPS accretion with manageable TBV dilution Increased earnings generation and profitability Ample capital and liquidity with flexibility to deleverage HarborOne’s balance sheet Source: FactSet; S&P Global Market Intelligence; Note: Financial data as of March 31, 2025; Market data as of April 23, 2025; Pro forma figures based on midpoint 80% stock / cash split ¹ Fully-synergized ~1.40% ROAA¹ ~250% CRE concentration
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6 Enhanced profitability drives top quartile performance Source: FactSet, S&P Global Market Intelligence; Note: Financial data as of March 31, 2025; Market data as of April 23, 2025; Pro forma figures based on midpoint 80% stock / cash split ¹ Fully-synergized ² Represents the Nasdaq Regional Banking Index ~3.60% 3.38% ~3.70% ~3.70% ~50% ~55% 54% ~52% ~1.25% 1.09% ~1.40% ~1.35% ~12.5% 11.7% ~15.5% ~15.3% Net interest margin Operating efficiency ratio Operating ROATCEOperating ROAA 1Q’25 2026E 1Q’25 2026E 1Q’25 2026E ✓ ✓ ✓ ✓ 2026E 2026E 2026E1Q’25 2026E 2026E (Standalone) (Pro forma)¹ KRX² top quartile (Standalone) (Pro forma)¹ KRX² top quartile (Standalone) (Pro forma)¹ KRX² top quartile (Standalone) (Pro forma)¹ KRX² top quartile Eastern 2026E consensus Merger impact
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7 Transaction summary Transaction summary and key assumptions Source: FactSet; S&P Global Market Intelligence; Note: Financial data as of March 31, 2025; Market data as of April 23, 2025 ¹ Assumes retirement of HarborOne’s unallocated ESOP shares ² Represents pre-tax figures ⚫ Deal price: HarborOne shareholders elect for each share $12.00 cash or 0.765x Eastern stock (subject to proration) ⚫ Consideration: 75-85% stock (24-27mm shares issued¹) ⚫ Deal value: $490mm¹ (at mid-point cash/stock) ⚫ Pricing: 1.00x P/TBV | 78% pay-to-trade Consideration and structure ⚫ Customary bank regulatory approvals ⚫ HarborOne shareholder approval ⚫ Expected closing in the fourth quarter of 2025 Approvals and anticipated closing ⚫ Directors: Joseph Casey and one other director from HarborOne to join Eastern’s Board of DirectorsGovernance Key assumptions ⚫ Cost saves: ~$55mm² or ~40% of HarborOne’s operating non-interest expenses o 75% phase-in during 1H26; 100% thereafter ⚫ One-time merger charges: ~$65mm² Cost savings and merger costs ⚫ Deleveraging: Sell HarborOne’s securities and paydown FHLB, with flexibility to further deleverage over time ⚫ Deposit run-off: 5% of non-brokered deposits ⚫ Durbin impact: $6mm P&L impact² ⚫ Capital raise: None Deleveraging and other ⚫ Gross credit mark: 2.0% of total loans ($104mm²) o 60% PCD / 40% non-PCD ⚫ Rate mark: $234mm² loan write-down (5 years SL) ⚫ CDI: 3.00% of core deposits (10 years SYD) Credit, rate marks and CDI
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8 $335 $39 $36 $44 ($14) consensus consensus Loan mark accretion¹ Cost savings² Other Pro forma Unlocks earnings potential and enhances returns Source: FactSet; S&P Global Market Intelligence; Note: Financial data as of March 31, 2025; Market data as of April 23, 2025; Pro forma figures based on midpoint 80% stock / cash split ¹ De minimis impact from deposit amortization ² Represents fully-phased in synergies 2026E fully-synergized net income, $mm Transaction results in meaningful EPS accretion post-close A B Confident in ability to deliver on financial targets EPS $1.98 $1.71 $440 C • Accretion represents current market yields • Represents sustainable earnings in current rate environment • New originations at market yields • Cost savings • ~40% of 2026E HarborOne cash expenses • In-market footprint; Low execution risk • Other merger impacts • Amortization of CDI • Lost interchange fees: $5mm post-tax • Accretion of non-PCD double count • Yield on cash: ~3.1% in 2026 • Paydown HarborOne’s FHLB borrowings with sale of HarborOne securities • Upside opportunities (not modeled) • Opportunity to align deposit strategies • Enhance combined mortgage business • Capture greater share of wealth and commercial banking opportunities in HarborOne markets A B C ~16% accretion D
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9 Comprehensive due diligence and integration plan Low integration risk Commercial Banking Retail Banking Mortgage Banking Information Technology Human Resources Finance, Accounting & Tax Diligence focus areas Process and integration timeline ⚫ Due diligence o In-depth review of Lending and Credit: Review of approximately 65% of the commercial loan portfolio outstanding, with a focus on the larger credits and CRE o Strategic review of branch network combination o Operations and Compliance review covering Cyber Security, AML/BSA o Thorough analysis of HarborOne Mortgage ⚫ Bank systems integration planned for Q1 2026 o Lean on extensive acquisition experience to unify operations o Proactively reach out to clients and minimize business disruption ⚫ Eastern has a proven track record of integration, having integrated 9 bank acquisitions since 1999 Credit Legal, Risk, BSA and Compliance
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10 Summary highlights Bolsters Greater Boston density, strengthens footprint south of the city, and expands into Rhode Island market Financially attractive and results in top quartile profitability In-market transaction with conservative assumptions and low execution risk Pro forma balance sheet has robust capital, liquidity and reserves Meaningful upside opportunities by delivering Eastern’s broader products and services in HarborOne’s markets
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Appendix
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12 $16.0 $23.5 $22.6 $21.1 $25.6 $30.7 2020 2021 2022 2023 2024 2025¹ Eastern is a seasoned acquiror and delivered on stated financial targets IPO Source: S&P Global Market Intelligence ¹ Projected at close Assets, $bn $30bn+ Sale of EIG Announced Executed $64mm $47mm $37mm $37mm ~55% ~60% Restructuring charge Cost savings EPS accretion ✓ ✓ ✓ Announced Executed $70mm $54mm $37mm $40mm 20%+ ~25% Restructuring charge Cost savings EPS accretion ✓ ✓ ✓ $30bn+
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13 ⚫ ~40% of HarborOne’s operating non-interest expense base (~$55mm pre-tax) ⚫ 75% phase-in in the first half of 2026 and 100% thereafterSynergies ⚫ Gross credit mark equal to 2.0% of total loans ($104mm) ⚫ 60% of the mark on PCD loans and 40% of the mark on non-PCD loans ⚫ Non-PCD mark is accreted back into earnings ⚫ PCD mark is not accreted into earnings ⚫ Day two CECL reserve of 1.0x non-PCD credit mark ($32mm after-tax); fully reflected in pro forma capital at closing Credit mark / CECL reserves ⚫ <$1mm pre-tax HTM securities write-down, not accreted due to sale of securities ⚫ $234mm pre-tax net loan write-down, accreted over 5 years, straight-line methodology ⚫ $4mm pre-tax real estate write-down ⚫ $1mm pre-tax deposits write-down, amortized over 1 year ⚫ <$1mm pre-tax borrowings write-down, not amortized due to paydown of FHLB advances Purchase accounting marks (Pre-tax) ⚫ Approximately $65mm pre-tax ($53mm after-tax)One-time merger charges Key transaction assumptions Source: FactSet; S&P Global Market Intelligence ⚫ 3.00% of all non-time deposits, amortized over 10 years, sum-of-year-digits methodology Core deposit intangibles ⚫ HarborOne Durbin dis-synergy of $6mm pre-tax annuallyOther adjustments Balance sheet deleveraging ⚫ Planned sale of HarborOne's securities (AFS + HTM) of $285mm with proceeds used to paydown HarborOne’s FHLB borrowings
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14 Summary of fair value marks Impact to equity $mm Carrying value Fair value Pre-tax After-tax Amortization term Assets Total investment securities $285 $285 ($0) ($0) –¹ Net loans 4,772 4,538 (234) (181) 5 years Real-estate – – (4) (3) – Total ($238) ($185) Liabilities Deposits $4,619 $4,618 $1 $1 1 year Borrowings 400 399 0 0 –¹ Total $1 $1 Total impact to equity ($237) ($184) Accumulated other comprehensive income ($46) –¹ ¹ Plan to sell HarborOne securities portfolio and pay down FHLB advances at close
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15 Purchase accounting summary Tangible book value per share impact Source: S&P Global Market Intelligence ¹ Based on expectations and assumptions as of announcement date; subject to change at transaction closing ² Based on $42mm pre-tax reserve allocated to non-PCD loans (40%) ³ Midpoint of cash / stock split $ millions Shares (mm) $ per share Eastern Standalone tangible book value (estimated at close) $2,700 209.8 $12.87 Pro forma Standalone Eastern tangible book value at close $2,700 209.8 (+) Estimated standalone HarborOne tangible book value at close 532 (–) Reversal of HarborOne equity capital and intangibles (532) (+) Common equity issued as consideration 391 25.2³ (–) Goodwill and other intangibles created¹ (203) (–) After-tax restructuring expenses (53) (–) CECL double count on non-PCD loans² (32) (=) Pro forma Eastern tangible book value at close $2,803 235.0 $11.92 $ accretion to Eastern ($0.95) % accretion to Eastern (7.3%)
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16 24% 8% 24% 28% 13% 3% 31% 4% 13% 39% 8% 4% 22% 9% 27% 25% 14% 3% Yield on loans: 5.40%²Yield on loans: 5.07%Yield on loans: 5.29% Pro forma loans Note: Financial data as of March 31, 2025; Figures may not total to 100% due to rounding ¹ Excludes purchase accounting adjustments ² Includes loan accretion income $18.2bn $4.8bn $23.0bn¹ 1-4 family Other consumer C&I CRE Multifamily C&D
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17 29% 21%27% 8% 15% 15% 7% 26% 20% 32% 26% 19% 27% 10% 18% Cost of deposits: 1.62%²Cost of deposits: 2.48%Cost of deposits: 1.48% Pro forma deposits Note: Financial data as of March 31, 2025; Figures may not total to 100% due to rounding ¹ Excludes purchase accounting adjustments ² Includes deposit mark amortization $20.8bn $4.6bn $25.4bn¹ Noninterest-bearing Interest-bearing checking SavingsMoney market Time
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18 Forward-looking statements Caution Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding anticipated future events and can be i dentified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. Forward -looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements. Factors relating to the proposed transaction that could cause or contribute to actual results differing materially from expec ted results include, but are not limited to, the possibility that revenue or expense synergies or the other expected benefits of the transaction may not materialize in the ti meframe expected or at all, or may be more costly to achieve; that the transaction may not be timely completed, if at all; that prior to the completion of the transacti on or thereafter, Eastern or HarborOne may not perform as expected due to transaction-related uncertainty or other factors; that Eastern is unable to successfully implement it s integration strategies; that required regulatory, shareholder or other approvals are not obtained or other closing conditions are not satisfied in a timely manner or at all; that the timing of completion of the proposed merger is dependent on various factors that cannot be predicted with precision at this point; reputational risks and the reaction of the companies’ customers to the transactions; the inability to implement onboarding or transition plans and other consequences associated with the merger ; continued pressures and uncertainties within the banking industry and Eastern and HarborOne’s markets, including changes in interest rates and deposit amounts and composition, adverse developments in the level and direction of loan delinquencies, charge-offs, and estimates of the adequacy of the allowance for loan losses, incr eased competitive pressures, asset and credit quality deterioration, and legislative, regulatory, and fiscal policy changes and related compliance costs; and divers ion of management time on transaction-related issues. These forward-looking statements are also subject to the risks and uncertainties applicable to our respective businesses general ly that are disclosed in Eastern’s and HarborOne’s respective 2024 Annual Reports on Form 10-K. Eastern’s and HarborOne’s SEC filings are accessible on the SEC's website at www.sec.gov and on their respective corporate websites at investor.easternbank.com and harboronebancorp.com. These web addresses are included as inact ive textual references only. Information on these websites is not part of this document. For any forward -looking statements made in this presentation, Easter n and HarborOne claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Except as requ ired by law, each company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this presentation.
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19 Additional information No Offer or Solicitation This presentation is not a proxy statement or solicitation or a proxy, consent or authorization with respect to any securitie s or in respect of the proposed transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of the Company or HarborOne, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the sec urities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Secu rities Act of 1933, as amended, and otherwise in accordance with applicable law. Additional Information and Where to Find It In connection with the proposed merger transaction, the Company intends to file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of HarborOne and a Prospectus of the Company (the “proxy statement/prospectus”), as well as other relevant documents concerning the propos ed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualif ication under the securities laws of any such jurisdiction. INVESTORS AND SHAREHOLDERS OF THE COMPANY AND HARBORONE ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE TRANSACTION WHEN IT BECOMES AVAILABLE AND EACH OTHER RELEVANT DOCUMENT FILED WITH THE SEC, AS WELL AS ANY AMENDMENT OR SUPPLEMENT TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. A copy of the definitive proxy statement/prospectus, as well as other filings containing information about the Company and HarborOne, can be obtained without charge, at the SEC’s website (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorp orated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to the Company’s Investor Relations via ema il at a.hersom@easternbank.com or by telephone at (860) 707-4432, or to HarborOne Investor Relations via email at SFinocchio@HarborOne.com or by telephone at (508) 895 -1180. Participants in the Solicitation HarborOne and certain of its directors and executive may be deemed to be participants in the solicitation of proxies from the sharehold ers of HarborOne in connection with the proposed transaction under the rules of the SEC. Information regarding HarborOne’s directors and executive officers is available in its definitive proxy statement relating to its 2025 Annual Meeting of Shareholders, which was filed with the SEC on April 1, 2025, its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 6, 2025, and other documents filed by HarborOne with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, will be included in the proxy statement/prospectus and other relevant materials filed with the SEC, which may be obtained free of charge as described in the preceding paragraph.
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20 GOOD INVESTS. GOOD ADVISES. GOOD LENDS. GOOD HELPS FEED HUNGRY KIDS. GOOD FUELS THE HUNGRY STARTUP. GOOD HELPS KIDS LEARN TO PAINT. AND DANCE. AND REALIZE HOW SPECIAL THEY ARE.GOOD BUILDS PLAYGROUNDS. AND REBUILDS LIVES. GOOD INSURES. GOOD ENDURES. GOOD FIGHTS DISCRIMINATION. GOOD STANDS UP FOR EQUAL OPPORTUNITY. GOOD INNOVATES. GOOD EDUCATES. GOOD ADVOCATES. GOOD HELPS PEOPLE BEAT ADDICTIONS. GOOD PAYS CLOSE ATTENTION. GOOD PAYS IT FORWARD.