Eastern Bankshares(EBC) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income was $60.8 million, or $0.30 per diluted share, a significant increase from a net loss of $6.2 million in the previous quarter[2]. - Operating net income for the fourth quarter was $68.3 million, or $0.34 per diluted share, representing a 37% increase from the prior quarter[2]. - Total revenue for Q4 2024 reached $216,542,000, up 6.4% from $203,383,000 in Q3 2024[34]. - Net income from continuing operations for Q4 2024 was $60,771,000, compared to a loss of $6,188,000 in Q3 2024[34]. - The company reported a net income of $119,561,000 for the twelve months ended December 31, 2024, down 49% from $232,177,000 in the previous year[44]. - Earnings per share for continuing operations was $0.66, compared to a loss of $0.39 in the previous year, indicating a strong turnaround[44]. Income and Expenses - Net interest income increased to $179.2 million, up $9.3 million or 5% from the previous quarter, driven by an expanded net interest margin of 3.05%[2][7]. - Noninterest income rose to $37.3 million, an increase of $3.8 million or 11% from the prior quarter[2][10]. - Noninterest expense decreased by $22.2 million to $137.5 million, primarily due to a reduction in merger-related expenses[2][11]. - Total noninterest expense decreased to $137,544,000, down 14% from the previous quarter and up 14% year-over-year[42]. - Noninterest income totaled $37,349,000, reflecting an 11% increase from the previous quarter and a 40% increase year-over-year[42]. Loans and Assets - Total loans were $18.1 billion, reflecting a slight increase of $15 million from the previous quarter[2][8]. - Total loans increased to $18,079,084,000 in Q4 2024, compared to $18,064,126,000 in Q3 2024[34]. - Total assets as of December 31, 2024, were $25,557,880,000, slightly up from $25,507,187,000 at the end of Q3 2024[34]. - Total assets increased to $25,738,494 thousand as of December 31, 2024, up from $25,038,905 thousand in the previous quarter[46]. - Total loans reached $17,805,289 thousand with a net interest income of $239,115 thousand, yielding a margin of 5.34% for the three months ended December 31, 2024[46]. Capital and Ratios - The CET1 capital ratio was 15.73% at year-end, an increase of 0.23% from the previous quarter[2]. - The efficiency ratio improved to 63.5% in Q4 2024, down from 78.5% in Q3 2024[34]. - Return on average assets for Q4 2024 was 0.94%, a recovery from a negative 0.10% in Q3 2024[34]. - The allowance for loan losses (ALLL) was $228,952,000, down from $253,821,000 in Q3 2024[34]. - The shareholders' equity to assets ratio (GAAP) is 14.13% as of December 31, 2024, down from 14.39% as of September 30, 2024[63]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.12 per common share, payable on March 14, 2025[2][17]. - Common shares outstanding decreased to 213,909,472 as of December 31, 2024, from 214,802,602 as of September 30, 2024[64]. - Book value per share (GAAP) is $16.89 as of December 31, 2024, a decrease from $17.09 as of September 30, 2024[64]. Non-GAAP Measures and Adjustments - The Company presents non-GAAP financial measures to provide greater visibility into its core business performance, excluding certain non-core items[24]. - Management emphasizes that non-GAAP measures should not be considered substitutes for GAAP financial results, as they may differ from methodologies used by other banking companies[28]. - The Company adjusted its calculations for return on average tangible shareholders' equity and operating efficiency ratio to exclude amortization of intangible assets[26][27]. - The operating efficiency ratio (non-GAAP) was 60.3% for the twelve months ended December 31, 2024, compared to 62.3% in the previous year[62]. Risks and Forward-Looking Statements - The Company anticipates potential risks including loan delinquencies, competitive pressures, and challenges in achieving merger synergies[30]. - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations[29]. - The Company does not undertake any obligation to update forward-looking statements after the date of the press release[31].