Business
Eastern Bankshares, Inc. Reports First Quarter 2023 Financial Results
~ Strengthens Liquidity Through Balance Sheet Repositioning – Provides 107% Coverage of All Uninsured and Uncollateralized Deposits While Maintaining Strong
About this update from Eastern Bankshares, Inc.
[{"type":"text","content":"\n~ Strengthens Liquidity Through Balance Sheet Repositioning – Provides 107% Coverage of All Uninsured and Uncollateralized Deposits While Maintaining Strong Capital Position ~\n\n\n BOSTON--(BUSINESS WIRE)--\nEastern 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 2023 first quarter financial results and the declaration of a quarterly cash dividend.\n\n\nFINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER OF 2023\n\n\n\nNet loss of $194.1 million, or $1.20 per diluted share, compared to net income of $42.3 million, or $0.26 per diluted share for the fourth quarter of 2022.\n\n\n\nExcluding the $280.0 million after-tax loss from the sale of $1.9 billion in available-for-sale (“AFS”) securities (see “Balance Sheet Repositioning, Liquidity and Capital Update” below), and certain other non-recurring items, operating net income* was a record $61.1 million, or $0.38 per diluted share, compared to $49.9 million, or $0.31 per diluted share, reported for the prior quarter.\n\n\n\nTotal securities decreased $2.0 billion, or 28%, from the prior quarter, to $5.2 billion, primarily due to securities sales and principal runoff, partially offset by an increase in the market value of AFS securities.\n\n\n\nDeposits totaled $18.5 billion, representing a decrease of $432.8 million, or 2%, from the prior quarter. Excluding a reduction in brokered certificates of deposit of $319.0 million, total core deposits decreased $113.8 million or 0.6%.\n\n\n\nCustomer uninsured and uncollateralized deposits totaled $6.7 billion, representing 36% of total deposits.\n\n\n\nCash and cash equivalents were $2.1 billion and secured borrowing capacity at the Federal Reserve Bank and Federal Home Loan Bank totaled $5.0 billion, providing total liquidity sources of $7.1 billion, or 107% of customer uninsured and uncollateralized deposits.\n\n\n\nTotal loans were $13.7 billion, representing an increase of $99.7 million, or 1%, from the prior quarter. The increase was driven primarily by an increase in commercial loans of $73.4 million and residential loans of $36.6 million, partially offset by a decrease in consumer loans of $10.3 million.\n\n\n\nShareholders’ equity was $2.6 billion, representing an increase of $107.3 million from ...