Eastern Bankshares, Inc. (NASDAQ:EBC) Q1 2023 Earnings Conference Call April 28, 2023 9:00 AM ET Company Participants Robert F. Rivers - Chairman and CEO James B. Fitzgerald - CAO, Treasurer, and CFO Conference Call Participants Damon DelMonte - Keefe, Bruyette, & Woods Janet Lee - J.P. Morgan Chase Operator Hello, and welcome to the Eastern Bankshares, Inc. First Quarter 2023 Earnings Conference Call. Today's call will include forward-looking statements, including statements about Eastern's future financia ...

Commission File Number 001-39610 ___________________________ Eastern Bankshares, Inc. (Exact name of the registrant as specified in its charter) ___________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-K _____________________________________________ (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 Or ☐ TRANSITION REPORT ...

Eastern Bankshares, Inc. (NASDAQ:EBC) Q4 2022 Earnings Conference Call January 27, 2023 9:00 AM ET Company Participants Robert F. Rivers - Chairman and CEO James B. Fitzgerald - CAO, Treasurer, and CFO Conference Call Participants Janet Lee - J.P. Morgan Chase Mark Fitzgibbon - Piper Sandler Laurie Hunsicker - Compass Point Research Damon DelMonte - Keefe, Bruyette, & Woods Operator Hello, and welcome to the Eastern Bankshares, Inc. Fourth Quarter 2022 Earnings Conference Call. Today's call will include for ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q3 2022 show decreased total assets and equity, with net income growth driven by net interest income, following CECL adoption [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a decrease in total assets and shareholders' equity, primarily due to reduced cash and securities values, while net loans increased Consolidated Balance Sheet Highlights (Unaudited) | Metric | Sep 30, 2022 ($ thousands) | Dec 31, 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | 22,042,933 | 23,512,128 | (6.2%) | | Cash and cash equivalents | 158,437 | 1,231,792 | (87.1%) | | Net Loans | 12,752,942 | 12,157,281 | 4.9% | | Total Securities | 7,326,578 | 8,511,224 | (13.9%) | | **Total Liabilities** | 19,626,770 | 20,105,776 | (2.4%) | | Total Deposits | 18,733,381 | 19,628,311 | (4.6%) | | **Total Shareholders' Equity** | 2,416,163 | 3,406,352 | (29.1%) | - Shareholders' equity decreased significantly by **29.1%** from year-end 2021, primarily due to a large increase in accumulated other comprehensive loss from **($56.7 million)** to **($978.8 million)**, reflecting the impact of rising interest rates on the fair value of available-for-sale securities[6](index=6&type=chunk) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated income statements show significant growth in net interest income and net income for both the quarter and nine-month periods Consolidated Income Statement Highlights (Unaudited) | Metric ($ thousands) | Q3 2022 | Q3 2021 | YoY Change (%) | 9 Months 2022 | 9 Months 2021 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 152,179 | 102,691 | 48.2% | 418,060 | 307,390 | 36.0% | | Provision for loan losses | 6,480 | (1,488) | N/A | 7,045 | (5,368) | N/A | | Noninterest Income | 43,353 | 43,209 | 0.3% | 131,645 | 144,154 | (8.7%) | | Noninterest Expense | 116,840 | 98,970 | 18.1% | 336,845 | 300,354 | 12.1% | | **Net Income** | **54,777** | **37,106** | **47.6%** | **157,465** | **119,578** | **31.7%** | | **Diluted EPS** | **$0.33** | **$0.22** | **50.0%** | **$0.94** | **$0.69** | **36.2%** | - The significant year-over-year growth in net income was primarily driven by a **48.2%** increase in net interest income for the third quarter, reflecting both organic growth and the impact of the Century acquisition[11](index=11&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Key notes include the adoption of CECL, segment reporting for banking and insurance, and a probable non-cash settlement charge related to the Defined Benefit Plan - On January 1, 2022, the Company adopted the CECL accounting standard (ASU 2016-13), which replaced the incurred loss methodology. This resulted in a cumulative-effect adjustment that decreased retained earnings by **$20.1 million**, net of tax[31](index=31&type=chunk)[33](index=33&type=chunk) - The Company has two primary reportable segments: the banking business and the insurance agency business. For the nine months ended September 30, 2022, the banking business generated **$143.2 million** in net income, while the insurance agency business generated **$11.4 million**[289](index=289&type=chunk)[290](index=290&type=chunk) - Subsequent to the reporting period, management determined it is probable that a non-cash settlement charge between **$10.0 million** and **$15.0 million** will be recognized in Q4 2022 related to lump sum payments from the Defined Benefit Plan[291](index=291&type=chunk)[293](index=293&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=74&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights increased net income from higher net interest income, driven by asset growth and rising rates, alongside loan portfolio growth, deposit decreases, and strong asset quality [Financial Position](index=85&type=section&id=Financial%20Position) The company's financial position shows growth in gross loans, a decrease in total deposits, an increase in the allowance for loan losses, and a reduction in the securities portfolio - Gross loans increased by **$622.4 million** (**5.1%**) to **$12.9 billion** at September 30, 2022, driven by growth in commercial real estate, retail, and commercial construction portfolios[364](index=364&type=chunk) - Total deposits decreased by **$894.9 million** (**4.6%**) to **$18.7 billion**, primarily due to runoff of higher-cost deposits from the Century acquisition, runoff of government stimulus funds, and the transfer of cannabis-related and money service business deposit relationships[415](index=415&type=chunk)[416](index=416&type=chunk) - The allowance for loan losses increased by **$33.9 million** to **$131.7 million**, mainly due to a **$27.1 million** one-time adjustment upon adopting the CECL accounting standard on January 1, 2022[398](index=398&type=chunk) - The securities portfolio decreased by **$1.2 billion** (**13.9%**) to **$7.3 billion**, largely due to a **$1.1 billion** decrease in the fair value of AFS securities caused by rising market interest rates[353](index=353&type=chunk)[354](index=354&type=chunk) [Results of Operations](index=98&type=section&id=Results%20of%20Operations) Results of operations show significant net interest income growth, a provision for loan losses, flat noninterest income, and increased noninterest expense - Net interest income for Q3 2022 increased **48.2%** year-over-year to **$152.2 million**, driven by asset growth from the Century acquisition and higher interest rates. The net interest margin expanded by **34 basis points** to **2.87%** in Q3 2022 compared to Q3 2021[422](index=422&type=chunk)[432](index=432&type=chunk)[436](index=436&type=chunk) - A provision for loan losses of **$6.5 million** was recorded in Q3 2022, compared to a release of **$1.5 million** in Q3 2021, reflecting increased loan balances[447](index=447&type=chunk) - Noninterest income was flat in Q3 2022 compared to Q3 2021, as increased insurance commissions and service charges were offset by losses from investments in rabbi trusts and lower gains on mortgage sales[450](index=450&type=chunk) - Noninterest expense rose **18.1%** in Q3 2022 year-over-year, primarily due to higher salaries and benefits related to the Century acquisition and new share-based compensation programs[456](index=456&type=chunk) [Management of Market Risk](index=111&type=section&id=Management%20of%20Market%20Risk) The company's market risk management focuses on interest rate sensitivity, with a shift in NII sensitivity profile due to hedging activities Net Interest Income (NII) Sensitivity Analysis | Change in Interest Rates (bps) | Estimated NII Change from Flat (as of Sep 30, 2022) | Estimated NII Change from Flat (as of Dec 31, 2021) | | :--- | :--- | :--- | | +400 | (2.5%) | 30.2% | | +300 | (2.0%) | 22.6% | | +200 | (1.3%) | 15.1% | | (100) | (2.3%) | (5.9%) | | (200) | (6.6%) | N/A | - The company's interest rate sensitivity profile has shifted. As of September 30, 2022, a **+200 bps** rate shock is projected to decrease NII by **1.3%**, whereas at year-end 2021 it was projected to increase NII by **15.1%**. This change is partly due to the extension of asset duration from the interest rate swap portfolio[488](index=488&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=116&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the market risk discussion in Item 2, detailing interest rate risk and the shift in net interest income sensitivity due to hedging - The company's primary market risk is interest rate sensitivity. The disclosure for this item is contained within the Management's Discussion and Analysis section[509](index=509&type=chunk) [Item 4. Controls and Procedures](index=116&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[509](index=509&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended September 30, 2022[511](index=511&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=117&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, with previous overdraft fee matters settled in Q1 2022 - As of the filing date, the company is not involved in any legal proceedings expected to have a material effect on its financial condition[514](index=514&type=chunk) [Item 1A. Risk Factors](index=117&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for a revised risk concerning potential increases in FDIC insurance assessment rates - A risk factor was revised to address the October 2020 FDIC decision to increase initial base deposit insurance assessment rates by **2 basis points**, effective in the first quarter of 2023, which could increase expenses[515](index=515&type=chunk)[516](index=516&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=117&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company completed its 2021 share repurchase program in Q3 2022 and initiated a new program authorizing the purchase of up to 8.9 million shares - The company completed its 2021 share repurchase program during Q3 2022[518](index=518&type=chunk) - A new share repurchase program was announced on September 7, 2022, authorizing the purchase of up to **8.9 million shares** through August 31, 2023, limited to **$200.0 million**[518](index=518&type=chunk)

Eastern Bankshares, Inc. (NASDAQ:EBC) Q3 2022 Earnings Conference Call October 28, 2022 9:00 AM ET Company Participants Bob Rivers - Chairman and CEO Jim Fitzgerald - Chief Administrative Officer and CFO Conference Call Participants Mark Fitzgibbon - Piper Sandler Damon DelMonte - KBW Laurie Hunsicker - Compass Point Research Operator Hello, and welcome to the Eastern Bankshares, Inc. Third Quarter 2022 Earnings Conference Call. Today's call will include forward-looking statements, including statements abou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q _____________________________________________ (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39610 ___________________________ Eastern Bankshares, Inc. (Exact name ...

Eastern Bankshares, Inc. (NASDAQ:EBC) Q2 2022 Earnings Conference Call July 29, 2022 9:00 AM ET Company Participants Bob Rivers - Chair and CEO Jim Fitzgerald - Chief Administrative Officer and Chief Financial Officer Conference Call Participants Janet Lee - JPMorgan Mark Fitzgibbon - Piper Sandler Laurie Hunsicker - Compass Point Research Damon DelMonte - KBW Operator Hello, and welcome to the Eastern Bankshares, Inc. Second Quarter 2022 Earnings Call. Today's call will include forward-looking statements, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q _____________________________________________ (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39610 ___________________________ Eastern Bankshares, Inc. (Exact name ...

Financial Data and Key Metrics Changes - Operating earnings in Q1 2022 were $55.1 million or $0.32 per share, representing a 23% increase compared to the prior quarter and an 18% increase compared to Q1 2021 [11][15] - GAAP earnings for Q1 were $51.5 million or $0.30 per share [11] - Net interest income for the period was $130.4 million, up from $124.6 million in the prior quarter and $101.4 million in Q1 2021 [15] - Total assets decreased to $22.8 billion from $23.5 billion at the end of the previous year [13] - Shareholders' equity decreased by $400 million due to lower comprehensive income and share repurchases [13] Business Line Data and Key Metrics Changes - Organic commercial loan growth was 4.4% annualized, while overall loan growth was 3.1% annualized, indicating slower growth compared to previous quarters [11] - The company added a half-dozen relationship managers in various lending sectors during Q1 [8] - Insurance brokerage business continued to grow, with the acquisition of Michals Insurance Agency marking the 35th acquisition since 2002 [8] Market Data and Key Metrics Changes - The securities portfolio decreased by $200 million primarily due to lower market values and paydowns [14] - The net interest margin on a fully tax equivalent basis was 2.42%, down 12 basis points from the prior quarter [15] - The company expects net interest income to be between $530 million and $550 million in 2022, an increase from previous guidance [27] Company Strategy and Development Direction - The company aims to leverage its strong deposit base as a competitive advantage as interest rates rise [21][28] - Focus remains on organic growth and enhancing the commercial loan book, with readiness for future M&A opportunities [58] - The company plans to implement changes in overdraft practices, which are expected to reduce fees by $2.5 million to $3 million in 2022 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about commercial loan growth in the mid-to-high single digits for 2022, despite slower growth in Q1 [29] - The company anticipates that the impact of interest rate increases will be more significant in 2023 than in 2022 [27] - Management noted that asset quality remains excellent, with non-performing loans at a low level [24] Other Important Information - The company repurchased 2.9 million shares in Q1 at an average price of $21.12 [12] - The allowance for loan losses increased by $27 million due to the adoption of CECL [11] - The company transferred approximately $300 million in cannabis and money service business deposits to Needham Bank [8] Q&A Session Summary Question: Insights on commercial loan growth and market conditions - Management acknowledged slower growth in business banking but expressed confidence in the pipeline and activity levels, expecting mid-to-high single-digit growth [34][35] Question: Deposit trajectory and normalization - Management indicated that deposit growth would be challenging moving forward but remains confident in their market position [38] Question: Swap income expectations for Q2 - Management noted that swap income may be lighter in Q2 due to fair value adjustments [43] Question: M&A environment in the insurance agency business - Management confirmed an active pipeline for smaller deals in the insurance sector, expecting to acquire a few agencies this year [46] Question: Details on new relationship bankers - Management clarified that the new hires were individual bankers across various commercial banking lines, enhancing growth prospects [48] Question: Overdraft policy changes and fee impacts - Management confirmed that the new overdraft policy would take effect in the second half of 2022, with an expected annualized fee reduction of $5 million to $6 million [50][52]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-K _____________________________________________ (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39610 ___________________________ Eastern Bankshares, Inc. (Exact name of t ...