Business
Eastern Bankshares, Inc. Reports Second Quarter 2023 Financial Results
~ Strong Margin Expansion the Result of the Prior Quarter’s Balance Sheet Repositioning ~ ~ Cash Raised in the Securities Sale Will Continue to Enhance the
About this update from Eastern Bankshares, Inc.
[{"type":"text","content":"\n~ Strong Margin Expansion the Result of the Prior Quarter’s Balance Sheet Repositioning ~\n\n\n~ Cash Raised in the Securities Sale Will Continue to Enhance the Company’s Financial 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 second quarter financial results and the declaration of a quarterly cash dividend.\n\n\nFINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2023\n\n\n\nTotal revenue of $195.4 million. Total operating revenue* of $196.3 million, an increase of $1.5 million from the prior quarter.\n\n\n\nNet income of $48.7 million, or $0.30 per diluted share, compared to net loss of $194.1 million, or $1.20 per diluted share, for the prior quarter.\n\n\n\nOperating net income* of $45.3 million, or $0.28 per diluted share, compared to $61.1 million, or $0.38 per diluted share, for the prior quarter.\n\n\n\nThe effective tax rate of 27% in the second quarter was higher than expected due in part to impacts of the repositioning in the prior quarter.\n\n\n\nTotal loans increased $286.6 million, or 2.1%, to $14.0 billion, as compared to the prior quarter.\n\n\n\nThe net interest margin on a fully tax equivalent (“FTE”) basis* expanded 14 basis points to 2.80%.\n\n\n\nContinued strong asset quality, with annualized net charge-offs (\"NCOs\") of 0.01% of average total loans and non-performing loans of $30.6 million, or 0.22% of total loans. Provision for allowance for loan losses was $7.5 million, up from $25 thousand in the prior quarter and contributing to an increase in the allowance of $7.0 million.\n\n\n\nHealthy balance sheet with 11.7% shareholders’ equity to assets, 8.9% tangible shareholders’ equity to tangible assets* and 15.7% common equity tier 1 capital ratio1. Total borrowings and brokered deposits of less than 5% of total assets.\n\n\n\nDuring the first quarter, the Company completed a balance sheet repositioning by selling $1.9 billion in lower-yielding available-for-sale (“AFS”) investment securities creating a non-recurring, after-tax loss of $280 million (“the repositioning”). Proceeds from the sale were primarily used in the second quarter to reduce Federal Home Loan Bank advances, support customer deposit activit...