Eastern Bankshares, Inc. · NASDAQ:EBC
Eastern Bankshares — Q1 2025 Earnings Presentation
26 slides from Eastern Bankshares's earnings presentation, Apr 24, 2025
Slide 1: Q1 Earnings Presentation
Q1 Earnings Presentation April 24, 2025
Slide 2: Q1 2025 financial highlights
Q1 2025 financial highlights Key Metrics Highlights $(217.7) million • 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 Net loss reinvested at higher rates and expected to be $0.13 accretive to
Slide 3: Income statement
Income statement $ in millions, except per share amounts Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 • Net loss of $217.7 million 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 • Operating net income of Total revenue (47.2) 216.5 203.4 1
Slide 4: Financial metrics*
Financial metrics* Operating EPS Operating efficiency ratio1 63.6% $0.34 $0.34 61.0% 59.7% $0.26 57.3% 0.24 $0.23 53.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Operating ROA Operating ROATCE 1.09% 11.3% 11.7% 1.06% 8.7% 0.82% 0.76% 0.70% 6.7% 6.4% Q1 2024 Q2 2
Slide 5: Net interest margin
Net interest margin Earning assets QoQ changes in FTE net interest income*2 Q1 2025 Q4 2024 Change $15.1 $193.5 $184.0 $1.2 Avg. Balance Yield1 Avg. Balance Yield1 Avg. Balance Yield1 $(0.4) 3.38% Commercial loans $ 12,305 5.40 % $ 12,266 5.48 % $ 39 (0.08)% $(6.4) 3.05% Residential loans 3,914 4.42
Slide 6: Noninterest income
Noninterest income • Noninterest loss was $236.1 million Q1 2025 Q4 2024 Q1 2024 QoQ YoY • Included pre-tax non-operating Investment advisory fees $ 16.4 $ 18.0 $ 6.5 $ (1.5) $ 9.9 losses on the sale of AFS securities of $269.6 million related to investment portfolio Service charges on deposit accou
Slide 7: Wealth management
Wealth management Assets under management $8,353 $8,309 $8,442 • AUM increased from year-end due to net client flows, partially offset by market performance • Fees decreased $1.5 million. Q4 2024 included a $3,384 $3,416 favorable one-time item of $1.2 million • AUM fees as a percentage of AUM: 75 b
Slide 8: Noninterest expense
Noninterest expense • Noninterest expense decreased $7.4 $159.8 million linked-quarter $132.2 $137.5 $134.0 $130.1 $130.1 $101.2 $99.4 $109.9 $106.2 • Q4 2024 included $3.6 million of merger-related costs Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 • Operating noninterest expense decreased Noninterest e
Slide 9: Deposits
Deposits Period-end deposit balances $21.2 $21.3 $20.8 • Deposits decreased $522 million linked-quarter, primarily $17.7 $17.6 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 Q1 20
Slide 10: Loan portfolio
Loan portfolio Historical loan composition Commercial loan composition $ 18,064 $ 18,079 $ 18,204 $1,634 $1,657 $1,665 $ 14,089 $ 14,146 $4,081 $4,064 $4,039 $1,452 $1,503 11% $2,544 $2,563 4% 28% $12,350 $12,359 $12,501 $10,093 $10,080 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total commercial Reside
Slide 11: Securities portfolio
Securities portfolio Portfolio trends1 Investment composition as of March 31, 20251 $5.5 $5.3 $5.2 $5.2 $0.4 $4.9 $0.4 $0.4 $0.4 $0.4 2% 4% $5.1 $4.9 $4.8 $4.8 $4.4 28% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 AFS securities HTM securities 65% • Sold $1.3 billion low yielding AFS securities and proce
Slide 12: Capital
Capital1 Capital ratios Capital metrics 3/31/2025 12/31/2024 3/31/2024 • Strong capital ratios. CET1 ratio and TCE ratio* of 14.2% and 10.6%, respectively Tier 1 leverage ratio 11.7% 12.4% 14.3% Common equity tier 1 ("CET1") capital ratio 14.2% 15.7% 18.5% • Strong capital position provides signific
Slide 13: Asset quality
Asset quality Non-performing loans 0.70% 0.76% 0.51% • NPLs of $92 million, or 0.51% of total loans, 0.41% 0.28% decreased $44 million from year-end $59 $79 • Commercial: $71 million, (Investor office: $43 million) $48 • Residential: $12 million $76 $57 $45 $44 $40 • Consumer: $9 million Q1 2024 Q2
Slide 14: CRE exposure
CRE exposure1 Composition • CRE portfolio of $7.2 billion, or 39% of total loans % of total Avg. loan % in MA/ Balance CRE balance NH NPL% • Non-owner occupied CRE to total risk-based capital Multi-family $ 2,538 35 % $ 4.8 87 % — % ratio2 of 217% Retail 1,026 14 % 3.1 88 % 0.9 % Office 996 14 % 3.7
Slide 15: CRE investor office exposure
CRE investor office exposure1 Maturity schedule 2Q25 3Q25 4Q25 1Q26 • CRE investor office loans totaled $876 million, or Accruing $ 65 $ 28 $ 10 $ 11 5% of total loans Non-accruing — — — 5 • Weighted average LTV of 53% at origination Total $ 65 $ 28 $ 10 $ 16 • 46% mixed-use or medical office Risk s
Slide 16: Non-GAAP financial measures (1)
Non-GAAP financial measures (1) *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
Slide 17: Non-GAAP financial measures (2)
Non-GAAP financial measures (2) 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
Slide 18: Forward-looking statements
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 e
Slide 19: Appendix
Appendix @eEastern Bankshares, Inc.
Slide 20: Appendix A: Reconciliation of non-GAAP earnings metrics (1 of 3)
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 acqu
Slide 21: Appendix A: Reconciliation of non-GAAP earnings metrics (2 of 3)
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
Slide 22: Appendix A: Reconciliation of non-GAAP earnings metrics (3 of 3)
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 as
Slide 23: Appendix B: Reconciliation of non-GAAP operating revenues and expenses
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)
Slide 24: Appendix C: Reconciliation of non-GAAP capital metrics
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 Les
Slide 25: Appendix D: Tangible shareholders' equity roll forward
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 U
Slide 26: Appendix E: Merger-related charges
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) $ — $ — Noninter