Eastern Bankshares, Inc. Reports Fourth Quarter 2024 Net Income of $60.8 Million, or $0.30 per Diluted Share

~ Company Announces 2025 Investment Portfolio Repositioning ~

Operating net income* of $68.3 million, or $0.34 per diluted share. $1.2 billion investment portfolio repositioning in Q1 2025 anticipated to add approximately $0.13 to 2025 operating EPS. Net interest margin on a fully tax equivalent basis* expanded 8 basis points to 3.05%, primarily due to lower cost of funds. Annualized net charge-offs of 0.71% of average total loans primarily driven by purchased credit deteriorated loans acquired from Cambridge Trust. Strong balance sheet with robust capital and reserve levels. Year-end CET1 ratio of 15.73%(1) and allowance coverage of total loans of 1.29%.

BOSTON, January 23, 2025--(BUSINESS WIRE)--Eastern Bankshares, Inc. (the "Company") (NASDAQ: EBC), the holding company of Eastern Bank, today announced its fourth quarter 2024 financial results.

FINANCIAL HIGHLIGHTS

As of and for three months ended  Linked quarter Change (Unaudited, $ in millions, except per share data) Dec 31, 2024 Sep 30, 2024  △ $ △ % Earnings  Net income (loss) $ 60.8  $ (6.2 )  $ 67.0  NM  Per share, diluted $ 0.30  $ (0.03 )  $ 0.33  NM   Operating net income* $ 68.3  $ 49.7   $ 18.6  37 % Per share, diluted* $ 0.34  $ 0.25   $ 0.09  36 %  Net interest income $ 179.2  $ 169.9   $ 9.3  5 % NIM - FTE *  3.05 %  2.97 %   0.08 % NM   Noninterest income $ 37.3  $ 33.5   $ 3.8  11 % Operating noninterest income* $ 36.9  $ 32.9   $ 4.0  12 % Noninterest expense $ 137.5  $ 159.8   $ (22.2 ) (14 )% Operating noninterest expense* $ 133.7  $ 130.9   $ 2.9  2 % Efficiency ratio  63.5 %  78.5 %   (15.0 )% NM  Operating efficiency ratio*  57.2 %  60.1 %   (2.9 )% NM   Balance sheet  Period-end balances  Loans $ 18,079  $ 18,064   $ 15  0.1 % Deposits $ 21,292  $ 21,217   $ 75  0.4 % Average balances  Loans $ 17,803  $ 17,275   $ 528  3 % Deposits $ 21,439  $ 20,858   $ 581  3 %  Capital  Tangible shareholders’ equity / tangible assets*  10.45 %  10.69 %   (0.24 )% NM  CET1 capital ratio (1)  15.73 %  15.50 %   0.23 % NM  Book value per share $ 16.89  $ 17.09   $ (0.20 ) (1 )% Tangible book value per share* $ 11.98  $ 12.17   $ (0.19 ) (2 )%  Asset quality  Non-performing loans $ 135.8  $ 124.5   $ 11.3  9 % Total non-performing loans to total loans  0.76 %  0.70 %   0.06 % NM  Net charge-offs to average total loans  0.71 %  0.12 %   0.59 % NM   (1) CET1 capital ratio as of December 31, 2024 is a preliminary estimate. *Non-GAAP Financial Measure.

The Company’s fourth quarter results reflect the first full quarter impact of the merger with Cambridge Bancorp ("Cambridge") ("the merger"). The Company’s third quarter financial results included a partial quarter impact of the merger, which closed on July 12, 2024.

Story Continues

"As we close out the fourth quarter and reflect on another successful year, our most significant milestone was the merger with Cambridge Trust," said Bob Rivers, Executive Chair and Chair of the Board of Directors of the Company and Eastern Bank. "This combination not only solidifies our position as a leading financial institution in our region but also allows us to deliver a broader suite of offerings to our customers, greater opportunities for our colleagues, and even stronger commitment to our communities."

Denis Sheahan, Chief Executive Officer, added, "We remain focused on continuing to capitalize on merger synergies, long-term growth opportunities, and our overall financial performance. After meeting or exceeding our merger related financial targets, we posted full year operating net income of $192.6 million, 18% higher than 2023. We are well positioned to continue to deepen and expand customer relationships in our retail, commercial and wealth divisions as we continue to leverage our market presence in and around Boston."

"Our fourth quarter financial results were very positive," said David Rosato, Chief Financial Officer. "Our margin expanded by 8 basis points, supported by a reduction in deposit costs. We continue to maintain a strong balance sheet with exceptional levels of liquidity, capital, and credit reserves. In early 2025, we are in the process of repositioning our investment portfolio which will accelerate improvement in our financial performance, adding approximately 18 basis points to the margin and $0.13 to operating earnings per share in 2025. Our CET1 capital ratio will decline by less than one percent, and we expect to rebuild approximately half of that capital position by the end of 2025 through stronger earnings."

BALANCE SHEET

Total assets were $25.6 billion at December 31, 2024, an increase of $50.7 million, or 0.2% from September 30, 2024.

Cash and equivalents increased $117.4 million to $1.0 billion. Securities decreased $148.5 million, or 3.2%, to $4.4 billion, due to a decline in the market value of available for sale securities ("AFS securities") driven by higher interest rates, sale of $116 million in AFS securities, and principal runoff, partially offset by the purchase of $200 million in AFS securities. Loans totaled $18.1 billion, an increase of $15.0 million.

Deposits totaled $21.3 billion, an increase of $74.8 million, primarily driven by growth in business checking deposits, as well as a seasonal growth in municipal deposits, partially offset by a decrease in time deposits.

Shareholders’ equity was $3.6 billion, a decrease of $59.2 million, due primarily to decreases in accumulated other comprehensive income, partially offset by an increase in retained earnings.

Book value per share and tangible book value per share* ended the quarter at $16.89 and $11.98, respectively.

Please refer to Appendix D for a roll-forward of tangible shareholders’ equity*.

NET INTEREST INCOME

Net interest income was $179.2 million for the fourth quarter, an increase of $9.3 million, due to an increase in the net interest margin and average earning assets.

The net interest margin on a FTE basis* was 3.05%, an 8 basis point increase, as funding costs declined faster than asset yields. The yield on total interest-earning assets decreased 4 basis points from the prior quarter to 4.56%, due primarily to decreases in loan yields of 8 basis points and average securities volume, partially offset by higher short-term investments volume. Total interest-bearing liabilities cost decreased 17 basis points to 2.33%, due primarily to deposit pricing decreases. Net interest income included net discount accretion of $12.9 million from purchase accounting adjustments in connection with the Cambridge merger, compared to $10.8 million in the prior quarter.

NONINTEREST INCOME

Noninterest income was $37.3 million for the fourth quarter, an increase of $3.8 million. Operating noninterest income* was $36.9 million, an increase of $4.0 million.

Trust and investment advisory fees increased $3.1 million to $18.0 million, which included a one-time item of $1.2 million. Service charges on deposit accounts increased $0.3 million to $8.4 million. Customer swap income increased $0.6 million to $1.2 million, driven primarily by higher transaction volume. Non-operating income from investments held in rabbi trust accounts were less than $0.1 million, compared to $3.6 million in the prior quarter due to investment performance. Non-operating losses on sales of AFS securities were $9.2 million due to the sale of approximately $116 million of AFS securities. There were no losses on sales of AFS securities in the prior quarter. Other noninterest income increased $12.8 million to $15.8 million, due primarily to the non-operating gain of $9.3 million from the sale of an equity investment. The prior quarter included a non-operating loss on merger-related disposal of fixed assets totaling $3.0 million.

NONINTEREST EXPENSE

Noninterest expense was $137.5 million, a decrease of $22.2 million. The decrease was primarily driven by a reduction in merger-related expenses of $24.0 million. Operating noninterest expense* was $133.7 million, an increase of $2.9 million.

Salaries and employee benefits expense was $78.9 million, a decrease of $14.9 million, due primarily to a decrease in merger-related expenses of $12.0 million, as well as decreases in operating incentive compensation costs of $1.4 million, operating federal payroll tax expense of $0.7 million, and non-operating rabbi trust employee benefit expense of $1.1 million. Occupancy and equipment expense was $12.8 million, a decrease of $1.7 million, due primarily to a reduction in merger-related expenses. Data processing expense was $21.4 million, an increase of $1.9 million. Professional services expense was $3.3 million, a decrease of $5.7 million, due primarily to a reduction in merger-related expenses of $5.4 million. Marketing expense was $2.8 million, an increase of $1.2 million. Federal Deposit Insurance Corporation insurance expense was $3.9 million, an increase of $0.7 million. Amortization of intangible assets was $7.4 million, an increase of $1.1 million. Other noninterest expense was $7.1 million, a decrease of $4.9 million, due primarily to decreases in provision for off balance sheet credit exposures of $1.4 million, and merger-related costs.

Please refer to Appendix E for additional detail on merger charges*.

ASSET QUALITY

Non-performing loans totaled $135.8 million, or 0.76% of total loans, at December 31, 2024 compared to $124.5 million, or 0.70% of total loans, at the end of the prior quarter. The increase was driven primarily by commercial real estate office loans, partially offset by charge-off activity.

During the fourth quarter 2024, the Company recorded total net charge-offs of $31.7 million, or 0.71% of average total loans, compared to $5.1 million, or 0.12% in the prior quarter. The increase in total net charge-offs was due primarily to partial charge-offs of the purchased credit deteriorated ("PCD") loans acquired from Cambridge.

The Company recorded a provision for loan losses totaling $6.8 million in the quarter.

The allowance for loan losses was $229.0 million at December 31, 2024, or 1.29% of total loans, compared to $253.8 million, or 1.43% of total loans, at September 30, 2024.

2025 INVESTMENT PORTFOLIO REPOSITIONING

The Company announced an investment portfolio repositioning was underway in 2025 whereby approximately $1.2 billion of low yielding available-for-sale securities would be sold and reinvested at current market rates. The transaction is expected to be completed by the middle of the first quarter of 2025, and result in an after-tax non-operating loss of approximately $200 million. The after-tax losses are already reflected in shareholders’ equity.

DIVIDENDS AND SHARE REPURCHASES

The Company’s Board of Directors declared a quarterly cash dividend of $0.12 per common share. The dividend will be payable on March 14, 2025 to shareholders of record as of the close of business on March 3, 2025.

The Company repurchased 908,425 shares of common stock during the fourth quarter at a weighted average price of $17.41, for an aggregate purchase price of $15.8 million.

CONFERENCE CALL AND PRESENTATION INFORMATION

A conference call and webcast covering Eastern’s fourth quarter 2024 earnings will be held on Friday, January 24, 2025 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (800) 549-8228 from within the U.S. and reference conference ID 65981. The conference call will be simultaneously webcast. Participants may join the webcast on the Company’s Investor Relations website at investor.easternbank.com. A presentation providing additional information for the quarter is also available at investor.easternbank.com. A replay of the webcast will be available on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the holding company for Eastern Bank. Founded in 1818, Eastern Bank is Greater Boston’s leading local bank with more than 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut. As of December 31, 2024, Eastern Bank had approximately $25.6 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management division, the largest bank-owned independent investment advisor in Massachusetts with approximately $8.3 billion in assets under management, and takes pride in its outspoken advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. For investor information, visit investor.easternbank.com.

NON-GAAP FINANCIAL MEASURES

*Denotes a non-GAAP financial measure used in the press release.

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 to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") in the Company’s statement of income, balance sheet or statement of cash flows (or equivalent statements).

The Company presents non-GAAP financial measures, which management uses to evaluate the Company’s performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company’s core business as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures. Except as otherwise indicated, these non-GAAP financial measures presented in this press release exclude discontinued operations.

There are items in the Company’s financial statements that impact its financial results, but which management believes are unrelated to the Company’s core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders’ equity, operating return on average tangible shareholders’ equity (discussed further below), and the operating efficiency ratio. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company’s core business and underlying trends. Such items that management does not consider to be core to the Company’s business include (i) income and expenses from investments held in rabbi trusts, (ii) gains and losses on sales of securities available for sale, net, (iii) gains and losses on the sale of other assets, (iv) rabbi trust employee benefits, (v) impairment charges on tax credit investments and associated tax credit benefits, (vi) other real estate owned ("OREO") gains, (vii) merger and acquisition expenses, including the "day-2" provision for allowance for loan losses for non-PCD acquired loans, (viii) the non-cash pension settlement charge recognized related to the defined benefit plan, (ix) certain discrete tax items, and (x) net income from discontinued operations. Return on average tangible shareholders’ equity, operating return on average tangible shareholders’ equity as well as the operating efficiency ratio also further exclude the effect of amortization of intangible assets. The Company does not provide an outlook for its total noninterest income and total noninterest expense because each contains income or expense components, as applicable, such as income associated with rabbi trust accounts and rabbi trust employee benefit expense, which are market-driven, and over which the Company cannot exercise control. Accordingly, reconciliations of the Company’s outlook for its noninterest income on an operating basis and its noninterest expense on an operating basis to an outlook for total noninterest income and total noninterest expense are not provided.

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 return on average shareholders’ equity (discussed further above), each of which excludes the impact of goodwill and other intangible assets and in the case of tangible net income (loss), return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity excludes the after-tax impact of amortization of intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company’s performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company includes the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.

In the third quarter of 2024, we changed our (loss) return on average tangible shareholders' equity and operating return on average tangible shareholders’ equity computations to utilize tangible net (loss) income from continuing operations and tangible operating net income, respectively, in the numerators of the computations. Tangible net (loss) income from continuing operations excludes the amortization of intangible assets and the related tax effect and tangible operating net income excludes, in addition to the adjustments to derive operating net income, the amortization of intangible assets and related tax effect. In addition, in the third quarter of 2024, we changed the computation of our operating efficiency ratio to exclude, in addition to the adjustments made to operating net income, the amortization of intangible assets. Management believes the changes to such ratios result in a more meaningful measure of our financial performance and such measures are used by management when analyzing corporate performance.

These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company’s cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular period. In addition, management’s methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company’s reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-E for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.

FORWARD-LOOKING STATEMENTS

This press release 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 events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target", "outlook" and similar expressions. Forward-looking statements, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements.

Certain factors that could cause actual results to differ materially from expected results include; adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; increased competitive pressures; changes in interest rates and resulting changes in competitor or customer behavior, mix or costs of sources of funding, and deposit amounts and composition; risks associated with the Company’s implementation of the merger, including that revenue or expense synergies may not fully materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that Eastern’s business may not perform as expected in the years following the merger; that Eastern’s expansion of services or capabilities resulting from the merger may be more challenging than anticipated; and disruptions arising from transitions in management personnel; adverse national or regional economic conditions or conditions within the securities markets or banking sector; legislative and regulatory changes and related compliance costs that could adversely affect the business in which the Company and its subsidiaries, including Eastern Bank, are engaged, including the effect of, and changes in, monetary and fiscal policies and laws, such as the interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations, including inflationary or recessionary pressures, interest rate sensitivity, liquidity constraints, increased borrowing and funding costs, and fluctuations due to actual or anticipated changes to federal tax laws; the realizability of deferred tax assets; the Company’s ability to successfully implement its risk mitigation strategies; asset and credit quality deterioration, including adverse developments in local or regional real estate markets that decrease collateral values associated with existing loans; operational risks such as cybersecurity incidents, natural disasters, and pandemics and the failure of the Company to execute its planned share repurchases. For further discussion of such factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC’s website at www.sec.gov.

You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements.

EASTERN BANKSHARES, INC. SELECTED FINANCIAL HIGHLIGHTS (1)

Certain information in this press release is presented as reviewed by the Company’s management and includes information derived from the Company’s Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of and for the three months ended (Unaudited, dollars in thousands, except per-share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Earnings data  Net interest income $ 179,193  $ 169,855  $ 128,649  $ 129,900  $ 133,307  Noninterest income  37,349   33,528   25,348   27,692   26,739  Total revenue  216,542   203,383   153,997   157,592   160,046  Noninterest expense  137,544   159,753   109,869   101,202   121,029  Pre-tax, pre-provision income  78,998   43,630   44,128   56,390   39,017  Provision for allowance for loan losses  6,820   46,983   6,126   7,451   5,198  Pre-tax income (loss)  72,178   (3,353 )  38,002   48,939   33,819  Net income (loss) from continuing operations  60,771   (6,188 )  26,331   38,647   31,509  Net income from discontinued operations  —   —   —   —   286,994  Net income (loss)  60,771   (6,188 )  26,331   38,647   318,503  Operating net income (non-GAAP)  68,331   49,665   36,519   38,081   16,875   Per-share data  Earnings (loss) per share, diluted $ 0.30  $ (0.03 ) $ 0.16  $ 0.24  $ 1.95  Continuing operations $ 0.30  $ (0.03 ) $ 0.16  $ 0.24  $ 0.19  Discontinued operations $ —  $ —  $ —  $ —  $ 1.76  Operating earnings per share, diluted (non-GAAP) $ 0.34  $ 0.25  $ 0.22  $ 0.23  $ 0.10  Book value per share $ 16.89  $ 17.09  $ 16.80  $ 16.72  $ 16.86  Tangible book value per share (non-GAAP) $ 11.98  $ 12.17  $ 13.60  $ 13.51  $ 13.65   Profitability  Return on average assets  0.94 %  (0.10 )%  0.50 %  0.74 %  0.59 % Operating return on average assets (non-GAAP)  1.05 %  0.79 %  0.70 %  0.72 %  0.31 % Return on average shareholders' equity  6.64 %  (0.70 )%  3.62 %  5.23 %  4.66 % Operating return on average shareholders' equity  7.47 %  5.60 %  5.03 %  5.17 %  2.51 % Return on average tangible shareholders' equity (non-GAAP) (2)  10.16 %  (0.26 )%  4.54 %  6.52 %  6.06 % Operating return on average tangible shareholders' equity (non-GAAP) (2)  11.33 %  8.45 %  6.28 %  6.42 %  3.27 % Net interest margin (FTE)  3.05 %  2.97 %  2.64 %  2.68 %  2.69 % Cost of deposits  1.69 %  1.82 %  1.78 %  1.66 %  1.51 % Efficiency ratio  63.5 %  78.5 %  71.3 %  64.2 %  75.6 % Operating efficiency ratio (non-GAAP) (3)  57.2 %  60.1 %  63.7 %  61.6 %  73.3 %  Balance Sheet (end of period)  Total assets $ 25,557,880  $ 25,507,187  $ 21,044,169  $ 21,174,804  $ 21,133,278  Total loans  18,079,084   18,064,126   14,145,520   14,088,747   13,973,428  Total deposits  21,291,619   21,216,854   17,537,809   17,666,733   17,596,217  Total loans / total deposits  85 %  85 %  81 %  80 %  79 %  Asset quality  Allowance for loan losses ("ALLL") $ 228,952  $ 253,821  $ 156,146  $ 149,190  $ 148,993  ALLL / total nonperforming loans ("NPLs")  168.57 %  203.87 %  392.61 %  260.94 %  283.49 % Total NPLs / total loans  0.76 %  0.70 %  0.28 %  0.41 %  0.38 % Net charge-offs (&quo...t;NCOs") (recoveries) / average total loans  0.71 %  0.12 %  (0.02 )%  0.21 %  0.32 %  Capital adequacy  Shareholders' equity / assets  14.13 %  14.39 %  14.10 %  13.95 %  14.08 % Tangible shareholders' equity / tangible assets (non-GAAP)  10.45 %  10.69 %  11.73 %  11.58 %  11.71 %  (1) Average assets and average tangible shareholders' equity components as of and for the three months ended Dec 31, 2023 presented in this table include discontinued operations. (2) The return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax. (3) The operating efficiency ratio excludes the amortization of intangible assets.

EASTERN BANKSHARES, INC. SELECTED FINANCIAL HIGHLIGHTS (1)

Certain information in this press release is presented as reviewed by the Company’s management and includes information derived from the Company’s Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of and for the twelve months ended (Unaudited, dollars in thousands, except per-share data) Dec 31, 2024 Dec 31, 2023 Earnings data  Net interest income $ 607,597  $ 550,409  Noninterest income  123,917   (237,753 ) Total revenue  731,514   312,656  Noninterest expense  508,368   418,602  Pre-tax, pre-provision income (loss)  223,146   (105,946 ) Provision for allowance for loan losses  67,380   20,052  Pre-tax income (loss)  155,766   (125,998 ) Net income (loss) from continuing operations  119,561   (62,689 ) Net income from discontinued operations  —   294,866  Net income (loss)  119,561   232,177  Operating net income (non-GAAP)  192,596   163,186   Per-share data  Earnings (loss) per share, diluted $ 0.66  $ 1.43  Continuing operations $ 0.66  $ (0.39 ) Discontinued operations $ —  $ 1.82  Operating earnings per share, diluted (non-GAAP) $ 1.06  $ 1.00  Book value per share $ 16.89  $ 16.86  Tangible book value per share (non-GAAP) $ 11.98  $ 13.65   Profitability  Return on average assets  0.51 %  (0.29 )% Operating return on average assets (non-GAAP)  0.83 %  0.76 % Return on average shareholders' equity  3.66 %  (2.44 )% Operating return on average shareholders' equity  5.89 %  6.35 % Return on average tangible shareholders' equity (non-GAAP) (2)  5.25 %  (3.19 )% Operating return on average tangible shareholders' equity (non-GAAP) (2)  8.20 %  8.54 % Net interest margin (FTE)  2.85 %  2.73 % Cost of deposits  1.74 %  1.24 % Efficiency ratio  69.5 %  133.9 % Operating efficiency ratio (non-GAAP) (3)  60.3 %  62.3 %  Balance Sheet (end of period)  Total assets $ 25,557,880  $ 21,133,278  Total loans  18,079,084   13,973,428  Total deposits  21,291,619   17,596,217  Total loans / total deposits  85 %  79 %  Asset quality  Allowance for loan losses ("ALLL") $ 228,952  $ 148,993  ALLL / total nonperforming loans ("NPLs")  168.57 %  283.49 % Total NPLs / total loans  0.76 %  0.38 % Net charge-offs ("NCOs") (recoveries) / average total loans  0.27 %  0.09 %  Capital adequacy  Shareholders' equity / assets  14.13 %  14.08 % Tangible shareholders' equity / tangible assets (non-GAAP)  10.45 %  11.71 %  (1) Average assets and average tangible shareholders' equity components as of and for the twelve months ended Dec 31, 2023 presented in this table include discontinued operations. (2) The return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax. (3) The operating efficiency ratio excludes the amortization of intangible assets.

EASTERN BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS  As of  Dec 31, 2024 change from (Unaudited, dollars in thousands) Dec 31, 2024 Sep 30, 2024 Dec 31, 2023  Sep 30, 2024  Dec 31, 2023 ASSETS     △ $ △ %  △ $ △ % Cash and due from banks $ 92,590  $ 98,299  $ 87,233   $ (5,709 ) (6 )%  $ 5,357  6 % Short-term investments  914,290   791,177   605,843    123,113  16 %   308,447  51 % Cash and cash equivalents  1,006,880   889,476   693,076    117,404  13 %   313,804  45 % Available for sale ("AFS") securities  4,021,598   4,163,352   4,407,521    (141,754 ) (3 )%   (385,923 ) (9 )% Held to maturity ("HTM") securities  420,715   427,459   449,721    (6,744 ) (2 )%   (29,006 ) (6 )% Total securities  4,442,313   4,590,811   4,857,242    (148,498 ) (3 )%   (414,929 ) (9 )% Loans held for sale  372   1,993   1,124    (1,621 ) (81 )%   (752 ) (67 )% Loans:  Commercial and industrial  3,296,068   3,340,029   3,034,068    (43,961 ) (1 )%   262,000  9 % Commercial real estate  7,119,523   7,174,861   5,457,349    (55,338 ) (1 )%   1,662,174  30 % Commercial construction  494,842   513,519   386,999    (18,677 ) (4 )%   107,843  28 % Business banking  1,448,176   1,321,179   1,085,763    126,997  10 %   362,413  33 % Total commercial loans  12,358,609   12,349,588   9,964,179    9,021  — %   2,394,430  24 % Residential real estate  4,063,659   4,080,736   2,565,485    (17,077 ) — %   1,498,174  58 % Consumer home equity  1,385,394   1,361,971   1,208,231    23,423  2 %   177,163  15 % Other consumer  271,422   271,831   235,533    (409 ) — %   35,889  15 % Total loans  18,079,084   18,064,126   13,973,428    14,958  — %   4,105,656  29 % Allowance for loan losses  (228,952 )  (253,821 )  (148,993 )   24,869  (10 )%   (79,959 ) 54 % Unamortized prem./disc. and def. fees  (300,730 )  (308,243 )  (25,068 )   7,513  (2 )%   (275,662 ) 1100 % Net loans  17,549,402   17,502,062   13,799,367    47,340  — %   3,750,035  27 % Federal Home Loan Bank stock, at cost  5,865   5,865   5,904    —  — %   (39 ) (1 )% Premises and equipment  66,641   78,776   60,133    (12,135 ) (15 )%   6,508  11 % Bank-owned life insurance  204,704   203,635   164,702    1,069  1 %   40,002  24 % Goodwill and other intangibles, net  1,050,158   1,057,509   566,205    (7,351 ) (1 )%   483,953  85 % Deferred income taxes, net  332,128   319,206   266,185    12,922  4 %   65,943  25 % Prepaid expenses  231,944   201,285   183,073    30,659  15 %   48,871  27 % Other assets  667,473   656,569   536,267    10,904  2 %   131,206  24 % Total assets $ 25,557,880  $ 25,507,187  $ 21,133,278   $ 50,693  — %  $ 4,424,602  21 % LIABILITIES AND SHAREHOLDERS' EQUITY  Deposits:  Demand $ 5,992,082  $ 5,856,171  $ 5,162,218   $ 135,911  2 %  $ 829,864  16 % Interest checking accounts  4,606,250   4,562,226   3,737,361    44,024  1 %   868,889  23 % Savings accounts  1,620,602   1,681,093   1,323,126    (60,491 ) (4 )%   297,476  22 % Money market investment  5,736,362   5,572,277   4,664,475    164,085  3 %   1,071,887  23 % Certificates of deposit  3,336,323   3,545,087   2,709,037    (208,764 ) (6 )%   627,286  23 % Total deposits  21,291,619   21,216,854   17,596,217    74,765  — %   3,695,402  21 % Borrowed funds:  Federal Home Loan Bank advances  17,589   17,342   17,738    247  1 %   (149 ) (1 )% Escrow deposits of borrowers  27,721   29,405   21,978    (1,684 ) (6 )%   5,743  26 % Interest rate swap collateral funds  48,590   24,070   8,500    24,520  102 %   40,090  472 % Total borrowed funds  93,900   70,817   48,216    23,083  33 %   45,684  95 % Other liabilities  560,394   548,378   513,990    12,016  2 %   46,404  9 % Total liabilities  21,945,913   21,836,049   18,158,423    109,864  1 %   3,787,490  21 % Shareholders' equity:  Common shares  2,141   2,150   1,767    (9 ) — %   374  21 % Additional paid-in capital  2,237,494   2,246,134   1,666,441    (8,640 ) — %   571,053  34 % Unallocated common shares held by the employee stock ownership plan ("ESOP")  (127,842 )  (129,077 )  (132,755 )   1,235  (1 )%   4,913  (4 )% Retained earnings  2,084,503   2,048,042   2,047,754    36,461  2 %   36,749  2 % Accumulated other comprehensive income ("AOCI"), net of tax  (584,329 )  (496,111 )  (608,352 )   (88,218 ) 18 %   24,023  (4 )% Total shareholders' equity  3,611,967   3,671,138   2,974,855    (59,171 ) (2 )%   637,112  21 % Total liabilities and shareholders' equity $ 25,557,880  $ 25,507,187  $ 21,133,278   $ 50,693  — %  $ 4,424,602  21 %

EASTERN BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME  Three months ended  Three months ended Dec 31, 2024 change from three months ended (Unaudited, dollars in thousands, except per-share data) Dec 31, 2024 Sep 30, 2024 Dec 31, 2023  Sep 30, 2024  Dec 31, 2023  Interest and dividend income:     △ $ △ %  △ $ △ % Interest and fees on loans $ 234,722  $ 230,824  $ 168,419   $ 3,898  2 %  $ 66,303  39 % Taxable interest and dividends on securities  22,064   22,421   23,782    (357 ) (2 )%   (1,718 ) (7 )% Non-taxable interest and dividends on securities  1,446   1,444   1,434    2  — %   12  1 % Interest on federal funds sold and other short-term investments  12,529   11,329   10,011    1,200  11 %   2,518  25 % Total interest and dividend income  270,761   266,018   203,646    4,743  2 %   67,115  33 % Interest expense:  Interest on deposits  91,102   95,334   67,389    (4,232 ) (4 )%   23,713  35 % Interest on borrowings  466   829   2,950    (363 ) (44 )%   (2,484 ) (84 )% Total interest expense  91,568   96,163   70,339    (4,595 ) (5 )%   21,229  30 % Net interest income  179,193   169,855   133,307    9,338  5 %   45,886  34 % Provision for allowance for loan losses  6,820   46,983   5,198    (40,163 ) (85 )%   1,622  31 % Net interest income after provision for allowance for loan losses  172,373   122,872   128,109    49,501  40 %   44,264  35 % Noninterest income:  Trust and investment advisory fees  17,962   14,909   6,128    3,053  20 %   11,834  193 % Service charges on deposit accounts  8,426   8,140   7,514    286  4 %   912  12 % Debit card processing fees  3,602   3,806   3,398    (204 ) (5 )%   204  6 % Interest rate swap income (losses)  1,169   565   (576 )   604  107 %   1,745  (303 )% Income from investments held in rabbi trusts  5   3,591   4,969    (3,586 ) (100 )%   (4,964 ) (100 )% Losses on sales of commercial and industrial loans  —   —   (87 )   —  — %   87  (100 )% Losses on sales of mortgage loans held for sale, net  (325 )  (385 )  (219 )   60  (16 )%   (106 ) 48 % Losses on sales of securities available for sale, net  (9,241 )  —   —    (9,241 ) — %   (9,241 ) — % Other  15,751   2,902   5,612    12,849  443 %   10,139  181 % Total noninterest income  37,349   33,528   26,739    3,821  11 %   10,610  40 % Noninterest expense:  Salaries and employee benefits  78,897   93,759   67,773    (14,862 ) (16 )%   11,124  16 % Office occupancy and equipment  12,752   14,470   9,195    (1,718 ) (12 )%   3,557  39 % Data processing  21,380   19,504   16,753    1,876  10 %   4,627  28 % Professional services  3,329   8,982   4,108    (5,653 ) (63 )%   (779 ) (19 )% Marketing expenses  2,823   1,576   2,693    1,247  79 %   130  5 % Federal Deposit Insurance Corporation ("FDIC") insurance  3,873   3,200   13,486    673  21 %   (9,613 ) (71 )% Amortization of intangible assets  7,351   6,210   505    1,141  18 %   6,846  1356 % Other  7,139   12,052   6,516    (4,913 ) (41 )%   623  10 % Total noninterest expense  137,544   159,753   121,029    (22,209 ) (14 )%   16,515  14 % Income (loss) from continuing operations before income tax expense  72,178   (3,353 )  33,819    75,531  (2253 )%   38,359  113 % Income tax expense  11,407   2,835   2,310    8,572  302 %   9,097  394 % Net income (loss) from continuing operations $ 60,771  $ (6,188 ) $ 31,509   $ 66,959  (1082 )%  $ 29,262  93 % Net income from discontinued operations $ —  $ —  $ 286,994   $ —  — %  $ (286,994 ) (100 )% Net income (loss) $ 60,771  $ (6,188 ) $ 318,503   $ 66,959  (1082 )%  $ (257,732 ) (81 )%  Share data:  Weighted average common shares outstanding, basic  201,237,749   196,700,222   162,571,066    4,537,527  2 %   38,666,683  24 % Weighted average common shares outstanding, diluted  202,638,608   197,706,644   162,724,398    4,931,964  2 %   39,914,210  25 % Earnings (loss) per share, basic:  Continuing operations $ 0.30  $ (0.03 ) $ 0.19   $ 0.33  (1100 )%  $ 0.11  58 % Discontinued operations $ —  $ —  $ 1.77   $ —   %  $ (1.77 ) (100 )% Earnings (loss) per share, basic $ 0.30  $ (0.03 ) $ 1.96   $ 0.33  (1100 )%  $ (1.66 ) (85 )% Earnings (loss) per share, diluted:  Continuing operations $ 0.30  $ (0.03 ) $ 0.19   $ 0.33  (1100 )%  $ 0.11  58 % Discontinued operations $ —  $ —  $ 1.76   $ —   %  $ (1.76 ) (100 )% Earnings (loss) per share, diluted $ 0.30  $ (0.03 ) $ 1.95   $ 0.33  (1100 )%  $ (1.65 ) (85 )%

EASTERN BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME  Twelve months ended  (Unaudited, dollars in thousands, except per-share data) Dec 31, 2024 Dec 31, 2023  Change  Interest and dividend income:    △ $ △ % Interest and fees on loans $ 808,041  $ 652,095   $ 155,946  24 % Taxable interest and dividends on securities  90,582   101,233    (10,651 ) (11 )% Non-taxable interest and dividends on securities  5,766   5,736    30  1 % Interest on federal funds sold and other short-term investments  42,377   37,395    4,982  13 % Total interest and dividend income  946,766   796,459    150,307  19 % Interest expense:  Interest on deposits  337,367   226,075    111,292  49 % Interest on borrowings  1,802   19,975    (18,173 ) (91 )% Total interest expense  339,169   246,050    93,119  38 % Net interest income  607,597   550,409    57,188  10 % Provision for allowance for loan losses  67,380   20,052    47,328  236 % Net interest income after provision for allowance for loan losses  540,217   530,357    9,860  2 % Noninterest income:  Trust and investment advisory fees  46,126   24,264    21,862  90 % Service charges on deposit accounts  32,004   28,631    3,373  12 % Debit card processing fees  14,177   13,469    708  5 % Interest rate swap income  2,819   1,536    1,283  84 % Income from investments held in rabbi trusts  9,675   9,305    370  4 % Losses on sales of commercial and industrial loans  —   (2,738 )   2,738  (100 )% Losses on sales of mortgage loans held for sale, net  (920 )  (507 )   (413 ) 81 % Losses on sales of securities available for sale, net  (16,798 )  (333,170 )   316,372  (95 )% Other  36,834   21,457    15,377  72 % Total noninterest income (loss)  123,917   (237,753 )   361,670  (152 )% Noninterest expense:  Salaries and employee benefits  302,345   253,037    49,308  19 % Office occupancy and equipment  46,515   35,992    10,523  29 % Data processing  75,383   55,308    20,075  36 % Professional services  20,073   17,385    2,688  15 % Marketing expenses  7,824   7,592    232  3 % Federal Deposit Insurance Corporation ("FDIC") insurance  13,866   21,874    (8,008 ) (37 )% Amortization of intangible assets  14,569   1,804    12,765  708 % Other  27,793   25,610    2,183  9 % Total noninterest expense  508,368   418,602    89,766  21 % Income (loss) from continuing operations before income tax expense  155,766   (125,998 )   281,764  (224 )% Income tax expense (benefit)  36,205   (63,309 )   99,514  (157 )% Net income (loss) from continuing operations  119,561   (62,689 )   182,250  (291 )% Net income from discontinued operations  —   294,866    (294,866 ) (100 )% Net income $ 119,561  $ 232,177   $ (112,616 ) (49 )%  Share data:  Weighted average common shares outstanding, basic  181,126,320   162,293,020    18,833,300  12 % Weighted average common shares outstanding, diluted  182,181,073   162,403,097    19,777,976  12 %  Earnings (loss) per share, basic:  Continuing operations $ 0.66  $ (0.39 )  $ 1.05  (269 )% Discontinued operations $ —  $ 1.82   $ (1.82 ) (100 )% Earnings (loss) per share, basic $ 0.66  $ 1.43   $ (0.77 ) (54 )% Earnings (loss) per share, diluted:  Continuing operations $ 0.66  $ (0.39 )  $ 1.05  (269 )% Discontinued operations $ —  $ 1.82   $ (1.82 ) (100 )% Earnings (loss) per share, diluted $ 0.66  $ 1.43   $ (0.77 ) (54 )%

EASTERN BANKSHARES, INC.

AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS  As of and for the three months ended Dec 31, 2024  Sep 30, 2024  Dec 31, 2023 (Unaudited, dollars in thousands) Avg. Balance  Interest  Yield / Cost  Avg. Balance  Interest  Yield / Cost  Avg. Balance  Interest  Yield / Cost Interest-earning assets:  Loans (1):  Commercial $ 12,265,758  $ 168,930  5.48 %  $ 11,935,922  $ 167,712  5.59 %  $ 9,978,154  $ 126,128  5.01 % Residential  3,938,128   42,857  4.33 %   3,772,420   40,484  4.27 %   2,573,032   23,546  3.63 % Consumer  1,601,403   27,328  6.79 %   1,568,372   27,026  6.86 %   1,411,374   22,835  6.42 % Total loans  17,805,289   239,115  5.34 %   17,276,714   235,222  5.42 %   13,962,560   172,509  4.90 % Total investment securities  5,173,480   23,909  1.84 %   5,322,650   24,259  1.81 %   5,670,742   25,609  1.79 % Federal funds sold and other short-term investments  1,042,771   12,529  4.78 %   833,184   11,329  5.41 %   720,384   10,011  5.51 % Total interest-earning assets  24,021,540   275,553  4.56 %   23,432,548   270,810  4.60 %   20,353,686   208,129  4.06 % Non-interest-earning assets  1,716,954       1,606,357       834,391  Total assets $ 25,738,494      $ 25,038,905      $ 21,188,077   Interest-bearing liabilities:  Deposits:  Savings $ 1,660,095  $ 1,527  0.37 %  $ 1,646,532  $ 1,526  0.37 %  $ 1,352,239  $ 45  0.01 % Interest checking  4,626,205   12,745  1.10 %   4,548,231   13,428  1.17 %   3,753,352   7,080  0.75 % Money market  5,774,240   36,183  2.49 %   5,631,626   39,994  2.83 %   4,735,917   29,390  2.46 % Time deposits  3,494,638   40,647  4.63 %   3,365,392   40,386  4.77 %   2,656,313   30,874  4.61 % Total interest-bearing deposits  15,555,178   91,102  2.33 %   15,191,781   95,334  2.50 %   12,497,821   67,389  2.14 % Borrowings  82,829   466  2.24 %   89,398   829  3.69 %   242,437   2,950  4.83 % Total interest-bearing liabilities  15,638,007   91,568  2.33 %   15,281,179   96,163  2.50 %   12,740,258   70,339  2.19 % Demand deposit accounts  5,884,058       5,666,471       5,210,185  Other noninterest-bearing liabilities  573,077       564,961       555,034  Total liabilities  22,095,142       21,512,611       18,505,477  Shareholders' equity  3,643,352       3,526,294       2,682,600  Total liabilities and shareholders' equity $ 25,738,494      $ 25,038,905      $ 21,188,077    Net interest income - FTE   $ 183,985      $ 174,647      $ 137,790  Net interest-earning assets (2) $ 8,383,533      $ 8,151,369      $ 7,613,428  Net interest margin - FTE (3)     3.05 %      2.97 %      2.69 %    (1) Includes non-accrual loans. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.

EASTERN BANKSHARES, INC.

AVERAGE BALANCES, INTEREST EARNED/PAID, & AVERAGE YIELDS  As of and for the twelve months ended Dec 31, 2024  Dec 31, 2023 (Unaudited, dollars in thousands) Avg. Balance  Interest  Yield / Cost  Avg. Balance  Interest  Yield / Cost Interest-earning assets:  Loans (1):  Commercial $ 11,087,978  $ 591,885  5.34 %  $ 9,913,968  $ 491,427  4.96 % Residential  3,214,769   131,648  4.10 %   2,538,588   90,139  3.55 % Consumer  1,509,516   101,552  6.73 %   1,381,745   86,167  6.24 % Total loans  15,812,263   825,085  5.22 %   13,834,301   667,733  4.83 % Total investment securities  5,374,127   97,924  1.82 %   6,247,706   108,512  1.74 % Federal funds sold and other short-term investments  810,670   42,377  5.23 %   720,864   37,395  5.19 % Total interest-earning assets  21,997,060   965,386  4.39 %   20,802,871   813,640  3.91 % Non-interest-earning assets  1,296,780       921,622  Total assets $ 23,293,840      $ 21,724,493   Interest-bearing liabilities:  Deposits:  Savings $ 1,466,914  $ 3,136  0.21 %  $ 1,515,713  $ 217  0.01 % Interest checking  4,167,043   43,187  1.04 %   4,070,585   24,235  0.60 % Money market  5,283,231   140,695  2.66 %   4,918,343   104,002  2.11 % Time deposits  3,146,139   150,349  4.78 %   2,303,520   97,621  4.24 % Total interest-bearing deposits  14,063,327   337,367  2.40 %   12,808,161   226,075  1.77 % Borrowings  68,235   1,802  2.64 %   418,884   19,975  4.77 % Total interest-bearing liabilities  14,131,562   339,169  2.40 %   13,227,045   246,050  1.86 % Demand deposit accounts  5,348,124       5,404,208  Other noninterest-bearing liabilities  545,291       522,239  Total liabilities  20,024,977       19,153,492  Shareholders' equity  3,268,863       2,571,001  Total liabilities and shareholders' equity $ 23,293,840      $ 21,724,493    Net interest income - FTE   $ 626,217      $ 567,590  Net interest-earning assets (2) $ 7,865,498      $ 7,575,826  Net interest margin - FTE (3)     2.85 %      2.73 %   (1) Includes non-accrual loans.  (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Please refer to Appendix B to this press release for a reconciliation of fully-taxable equivalent net interest income.

EASTERN BANKSHARES, INC.

ASSET QUALITY - NON-PERFORMING ASSETS (1) As of Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (Unaudited, dollars in thousands)  Non-accrual loans:  Commercial $ 112,513  $ 105,099  $ 26,139  $ 40,986  $ 35,107  Residential  12,955   10,450   6,789   6,697   8,725  Consumer  10,352   8,954   6,843   9,490   8,725  Total non-accrual loans  135,820   124,503   39,771   57,173   52,557  Total accruing loans past due 90 days or more:  —   —   —   —   —  Total non-performing loans  135,820   124,503   39,771   57,173   52,557  Other real estate owned  —   —   —   —   —  Other non-performing assets:  —   —   —   —   —  Total non-performing assets (1) $ 135,820  $ 124,503  $ 39,771  $ 57,173  $ 52,557  Total non-performing loans to total loans  0.76 %  0.70 %  0.28 %  0.41 %  0.38 % Total non-performing assets to total assets  0.53 %  0.49 %  0.19 %  0.27 %  0.25 %  (1) Non-performing assets are comprised of NPLs, other real estate owned ("OREO"), and non-performing securities. NPLs consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest. OREO consists of real estate properties, which primarily serve as collateral to secure the Company’s loans, that it controls due to foreclosure or acceptance of a deed in lieu of foreclosure.

EASTERN BANKSHARES, INC.

ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE-OFFS (RECOVERIES)  Three months ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (Unaudited, dollars in thousands)  Average total loans $ 17,802,836  $ 17,274,903  $ 14,113,343  $ 14,013,714  $ 13,961,061  Allowance for loan losses, beginning of the period  253,821   156,146   149,190   148,993   155,146  Net loans charged-off (recovered):  Commercial and industrial  29   (7 )  (56 )  (25 )  (9 ) Commercial real estate  30,786   4,456   (2,011 )  7,118   7,818  Commercial construction  —   —   —   —   —  Business banking  458   356   803   (308 )  3,172  Residential real estate  (86 )  (43 )  (27 )  (21 )  (34 ) Consumer home equity  (1 )  (19 )  (59 )  2   (1 ) Other consumer  503   395   520   488   405  Total net loans charged-off (recovered)  31,689   5,138   (830 )  7,254   11,351  Initial allowance established for Cambridge's PCD loans  —   55,830   —   —   —  Provision for allowance for loan losses (2)  6,820   46,983   6,126   7,451   5,198  Total allowance for loan losses, end of period $ 228,952  $ 253,821  $ 156,146  $ 149,190  $ 148,993  Net charge-offs (recoveries) to average total loans outstanding during this period  0.71 %  0.12 %  (0.02 )%  0.21 %  0.32 % Allowance for loan losses as a percent of total loans  1.29 %  1.43 %  1.11 %  1.06 %  1.07 % Allowance for loan losses as a percent of nonperforming loans  168.57 %  203.87 %  392.61 %  260.94 %  283.49 %  (2) Provision for allowance for loan losses for the three months ended September 30, 2024 includes the initial provision on non-PCD loans acquired from Cambridge.

APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics (1)

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."  Three Months Ended  Twelve Months Ended (Unaudited, dollars in thousands, except per-share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023  Dec 31, 2024 Dec 31, 2023  Net income (loss) from continuing operations (GAAP) $ 60,771  $ (6,188 ) $ 26,331  $ 38,647  $ 31,509   $ 119,561  $ (62,689 ) Add:  Provision for non-PCD acquired loans  —   40,899   —   —   —    40,899   —  Noninterest income components:  Income from investments held in rabbi trusts  (5 )  (3,591 )  (1,761 )  (4,318 )  (4,969 )   (9,675 )  (9,305 ) Losses on sales of securities available for sale, net  9,241   —   7,557   —   —    16,798   333,170  Gain on sale of other equity investment  (9,291 )  —   —   —   —    (9,291 )  —  (Gains) losses on sales of other assets  (352 )  2,970   2   —   —    2,620   3  Noninterest expense components:  Rabbi trust employee benefit expense  239   1,326   930   1,746   1,740    4,241   3,742  Merger and acquisition expenses  3,587   27,577   3,684   1,816   1,865    36,664   5,495  Total impact of non-GAAP adjustments  3,419   69,181   10,412   (756 )  (1,364 )   82,256   333,105  Less: net tax benefit (expense) associated with non-GAAP adjustments (2)  (4,141 )  13,328   224   (190 )  13,270    9,221   107,230  Non-GAAP adjustments, net of tax $ 7,560  $ 55,853  $ 10,188  $ (566 ) $ (14,634 )  $ 73,035  $ 225,875  Operating net income (non-GAAP) $ 68,331  $ 49,665  $ 36,519  $ 38,081  $ 16,875   $ 192,596  $ 163,186   Weighted average common shares outstanding during the period:  Basic  201,237,749   196,700,222   163,145,255   162,863,540   162,571,066    181,126,320   162,293,020  Diluted  202,638,608   197,706,644   163,499,296   163,188,410   162,724,398    182,181,073   162,403,097   Earnings (loss) per share from continuing operations, basic: $ 0.30  $ (0.03 ) $ 0.16  $ 0.24  $ 0.19   $ 0.66  $ (0.39 ) Earnings (loss) per share from continuing operations, diluted: $ 0.30  $ (0.03 ) $ 0.16  $ 0.24  $ 0.19   $ 0.66  $ (0.39 )  Operating earnings per share, basic (non-GAAP) $ 0.34  $ 0.25  $ 0.22  $ 0.23  $ 0.10   $ 1.06  $ 1.01  Operating earnings per share, diluted (non-GAAP) $ 0.34  $ 0.25  $ 0.22  $ 0.23  $ 0.10   $ 1.06  $ 1.00   Return on average assets (3)  0.94 %  (0.10 )%  0.50 %  0.74 %  0.59 %   0.51 %  (0.29 )% Add:  Provision for non-PCD acquired loans (3)  0.00 %  0.65 %  0.00 %  0.00 %  0.00 %   0.18 %  0.00 % Income from investments held in rabbi trusts (3)  0.00 %  (0.06 )%  (0.03 )%  (0.08 )%  (0.09 )%   (0.04 )%  (0.04 )% Losses on sales of securities available for sale, net (3)  0.14 %  0.00 %  0.14 %  0.00 %  0.00 %   0.07 %  1.53 % Gain on sale of other equity investment (3)  (0.14 )%  0.00 %  0.00 %  0.00 %  0.00 %   (0.04 )%  0.00 % (Gains) losses on sales of other assets (3)  (0.01 )%  0.05 %  0.00 %  0.00 %  0.00 %   0.01 %  0.00 % Rabbi trust employee benefit expense (3)  0.00 %  0.02 %  0.02 %  0.03 %  0.03 %   0.02 %  0.02 % Merger and acquisition expenses (3)  0.06 %  0.44 %  0.07 %  0.03 %  0.03 %   0.16 %  0.03 % Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)  (0.06 )%  0.21 %  0.00 %  0.00 %  0.25 %   0.04 %  0.49 % Operating return on average assets (non-GAAP) (3)  1.05 %  0.79 %  0.70 %  0.72 %  0.31 %   0.83 %  0.76 %  Return on average shareholders' equity (3)  6.64 %  (0.70 )%  3.62 %  5.23 %  4.66 %   3.66 %  (2.44 )% Add:  Provision for non-PCD acquired loans (3)  0.00 %  4.61 %  0.00 %  0.00 %  0.00 %   1.25 %  0.00 % Income from investments held in rabbi trusts (3)  0.00 %  (0.41 )%  (0.24 )%  (0.58 )%  (0.73 )%   (0.30 )%  (0.36 )% Losses on sales of securities available for sale, net (3)  1.01 %  0.00 %  1.04 %  0.00 %  0.00 %   0.51 %  12.96 % Gain on sale of other equity investment (3)  (1.01 )%  0.00 %  0.00 %  0.00 %  0.00 %   (0.28 )%  0.00 % (Gains) losses on sales of other assets (3)  (0.04 )%  0.34 %  0.00 %  0.00 %  0.00 %   0.08 %  0.00 % Rabbi trust employee benefit expense (3)  0.03 %  0.15 %  0.13 %  0.24 %  0.26 %   0.13 %  0.15 % Merger and acquisition expenses (3)  0.39 %  3.11 %  0.51 %  0.25 %  0.28 %   1.12 %  0.21 % Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)  (0.45 )%  1.50 %  0.03 %  (0.03 )%  1.96 %   0.28 %  4.17 % Operating return on average shareholders' equity (non-GAAP) (3)  7.47 %  5.60 %  5.03 %  5.17 %  2.51 %   5.89 %  6.35 %  Tangible net income  Net (loss) income (GAAP)  60,771   (6,188 )  26,331   38,647   31,509    119,561   (62,689 ) Add: Amortization of intangible assets  7,351   6,210   504   504   505    14,569   1,804  Less: Tax effect of amortization of intangible assets (4)  2,036   1,720   140   140   143    4,036   509  Tangible net (loss) income (non-GAAP) (5)  66,086   (1,698 )  26,695   39,011   31,871    130,094   (61,394 )  Average tangible shareholders' equity:  Average total shareholders' equity (GAAP) $ 3,643,352  $ 3,526,294  $ 2,928,101  $ 2,970,759  $ 2,682,600   $ 3,268,863  $ 2,571,001  Less: Average goodwill and other intangibles  1,054,952   974,546   565,523   566,027   597,234    791,489   643,977  Average tangible shareholders' equity (non-GAAP) $ 2,588,400  $ 2,551,748  $ 2,362,578  $ 2,404,732  $ 2,085,366   $ 2,477,374  $ 1,927,024   Return on average tangible shareholders' equity (non-GAAP) (3) (5)  10.16 %  (0.26 )%  4.54 %  6.52 %  6.06 %   5.25 %  (3.19 )% Add:  Provision for non-PCD acquired loans (3)  0.00 %  6.38 %  0.00 %  0.00 %  0.00 %   1.65 %  0.00 % Income from investments held in rabbi trusts (3)  0.00 %  (0.56 )%  (0.30 )%  (0.72 )%  (0.95 )%   (0.39 )%  (0.48 )% Losses on sales of securities available for sale, net (3)  1.42 %  0.00 %  1.29 %  0.00 %  0.00 %   0.68 %  17.29 % Gain on sale of other equity investment (3)  (1.43 )%  0.00 %  0.00 %  0.00 %  0.00 %   (0.38 )%  0.00 % (Gains) losses on sales of other assets (3)  (0.05 )%  0.46 %  0.00 %  0.00 %  0.00 %   0.11 %  0.00 % Rabbi trust employee benefit expense (3)  0.04 %  0.21 %  0.16 %  0.29 %  0.33 %   0.17 %  0.19 % Merger and acquisition expenses (3)  0.55 %  4.30 %  0.63 %  0.30 %  0.35 %   1.48 %  0.29 % Less: net tax benefit (expense) associated with non-GAAP adjustments (2) (3)  (0.64 )%  2.08 %  0.04 %  (0.03 )%  2.52 %   0.37 %  5.56 % Operating return on average tangible shareholders' equity (non-GAAP) (3) (5)  11.33 %  8.45 %  6.28 %  6.42 %  3.27 %   8.20 %  8.54 %  (1) Average assets, average goodwill and other intangibles, and average tangible shareholders' equity components for the three months and twelve months ended Dec 31, 2023 presented in this section include discontinued operations. (2) The net tax benefit (expense) associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. Included in the net tax benefit for the three and twelve months ended December 31, 2024 is $2.6MM and a $7.4MM, respectively, of lost state tax benefit relating to Massachusetts net operating tax losses prohibited from carryover under Massachusetts tax law. The net operating tax loss position of the Company at December 31, 2024 is primarily a result of tax losses from the 2024 Cambridge's investment portfolio sale. Additionally, as federal net operating tax loss carryovers from 2024 lower projections of 2025 taxable income, the three and twelve months ended December 31, 2024 adjustments include a $2.8MM valuation allowance against the Company’s federal charitable contribution carryforward deferred tax asset that is set to expire at the end of 2025. The net tax benefit for the three months and twelve months ended December 31, 2023 was primarily due to the tax benefit from state tax strategies associated with the utilization of capital losses as a result of the sale of securities in the first quarter of 2023. Upon the sale of securities in the first quarter of 2023, we established a valuation allowance of $17.4 million, as it was determined at that time that it was not more-likely-than-not that the entirety of the deferred tax asset related to the loss on such securities would be realized. Included in that $17.4 million was $2.8 million in expected lost state tax benefits. Following the execution of the sale of our insurance agency business in October 2023 and the resulting capital gain, coupled with tax planning strategies, a state tax benefit of $13.6 million was realized on the securities sale losses. (3) Metrics for the three months presented on an annualized basis. (4) The tax effect of amortization of intangible assets is calculated using the Company's combined statutory tax rate of 28.23% for the twelve months ended December 31, 2024. Prior to the fourth quarter of 2024, the Company anticipated a combined statutory rate of 27.7% for the year as reflected in the tax effect of amortization of intangible assets for the corresponding three-month periods in 2024. (5) The tangible net income (loss), return on average tangible shareholders' equity ratio and operating return on average tangible shareholders' equity ratio exclude the amortization of intangible assets, net of tax.

APPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."  Three Months Ended  Twelve Months Ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023  Dec 31, 2024 Dec 31, 2023 (Unaudited, dollars in thousands)  Net interest income (GAAP) $ 179,193  $ 169,855  $ 128,649  $ 129,900  $ 133,307   $ 607,597  $ 550,409  Add:  Tax-equivalent adjustment (non-GAAP) (1)  4,792   4,792   4,553   4,483   4,483    18,620   17,181  Fully-taxable equivalent net interest income (non-GAAP) $ 183,985  $ 174,647  $ 133,202  $ 134,383  $ 137,790   $ 626,217  $ 567,590   Noninterest income (GAAP) $ 37,349  $ 33,528  $ 25,348  $ 27,692  $ 26,739   $ 123,917  $ (237,753 ) Less:  Income from investments held in rabbi trusts  5   3,591   1,761   4,318   4,969    9,675   9,305  Losses on sales of securities available for sale, net  (9,241 )  —   (7,557 )  —   —    (16,798 )  (333,170 ) Gain on sale of other equity investment  9,291   —   —   —   —    9,291   —  Gains (losses) on sales of other assets  352   (2,970 )  (2 )  —   —    (2,620 )  (3 ) Noninterest income on an operating basis (non-GAAP) $ 36,942  $ 32,907  $ 31,146  $ 23,374  $ 21,770   $ 124,369  $ 86,115   Noninterest expense (GAAP) $ 137,544  $ 159,753  $ 109,869  $ 101,202  $ 121,029   $ 508,368  $ 418,602  Less:  Rabbi trust employee benefit expense  239   1,326   930   1,746   1,740    4,241   3,742  Merger and acquisition expenses  3,587   27,577   3,684   1,816   1,865    36,664   5,495  Noninterest expense on an operating basis (non-GAAP) $ 133,718  $ 130,850  $ 105,255  $ 97,640  $ 117,424   $ 467,463  $ 409,365  Less: Amortization of intangible assets $ 7,351  $ 6,210  $ 504  $ 504  $ 505   $ 14,569  $ 1,804  Noninterest expense for calculating the operating efficiency ratio (non-GAAP) (2) $ 126,367  $ 124,640  $ 104,751  $ 97,136  $ 116,919   $ 452,894  $ 407,561   Total revenue (GAAP) $ 216,542  $ 203,383  $ 153,997  $ 157,592  $ 160,046   $ 731,514  $ 312,656  Total operating revenue (non-GAAP) $ 220,927  $ 207,554  $ 164,348  $ 157,757  $ 159,560   $ 750,586  $ 653,705   Efficiency ratio (GAAP)  63.5 %  78.5 %  71.3 %  64.2 %  75.6 %   69.5 %  133.9 % Operating efficiency ratio (non-GAAP) (2)  57.2 %  60.1 %  63.7 %  61.6 %  73.3 %   60.3 %  62.3 %  (1) Interest income on tax-exempt loans and investment securities has been adjusted to a FTE basis using a marginal tax rate of 22.0%, 21.8%, 21.7%, 21.7%, and 21.9% for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively, and of 21.8% for the twelve months ended December 31, 2024 and December 31, 2023. (2) The operating efficiency ratio excludes, in addition to the adjustments made to operating net income, the amortization of intangible assets. This measure is used by the Company when analyzing corporate performance and the Company believes that investors may find it useful.

APPENDIX C: Reconciliation of Non-GAAP Capital Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."  As of Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (Unaudited, dollars in thousands, except per-share data)  Tangible shareholders' equity:  Total shareholders' equity (GAAP) $ 3,611,967  $ 3,671,138  $ 2,967,473  $ 2,952,831  $ 2,974,855  Less: Goodwill and other intangibles  1,050,158   1,057,509   565,196   565,701   566,205  Tangible shareholders' equity (non-GAAP)  2,561,809   2,613,629   2,402,277   2,387,130   2,408,650   Tangible assets:  Total assets (GAAP)  25,557,880   25,507,187   21,044,169   21,174,804   21,133,278  Less: Goodwill and other intangibles  1,050,158   1,057,509   565,196   565,701   566,205  Tangible assets (non-GAAP) $ 24,507,722  $ 24,449,678  $ 20,478,973  $ 20,609,103  $ 20,567,073   Shareholders' equity to assets ratio (GAAP)  14.13 %  14.39 %  14.10 %  13.95 %  14.08 % Tangible shareholders' equity to tangible assets ratio (non-GAAP)  10.45 %  10.69 %  11.73 %  11.58 %  11.71 %  Common shares outstanding  213,909,472   214,802,602   176,687,829   176,631,477   176,426,993   Book value per share (GAAP) $ 16.89  $ 17.09  $ 16.80  $ 16.72  $ 16.86  Tangible book value per share (non-GAAP) $ 11.98  $ 12.17  $ 13.60  $ 13.51  $ 13.65

APPENDIX D: Tangible Shareholders’ Equity Roll Forward Analysis

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."  As of  Change from Dec 31, 2024 Sep 30, 2024 Dec 31, 2023  Sep 30, 2024 Dec 31, 2023 (Unaudited, dollars in thousands, except per-share data)  Common stock $ 2,141  $ 2,150  $ 1,767   $ (9 ) $ 374  Additional paid in capital  2,237,494   2,246,134   1,666,441    (8,640 )  571,053  Unallocated ESOP common stock  (127,842 )  (129,077 )  (132,755 )   1,235   4,913  Retained earnings  2,084,503   2,048,042   2,047,754    36,461   36,749  AOCI, net of tax - available for sale securities  (583,875 )  (490,698 )  (584,243 )   (93,177 )  368  AOCI, net of tax - pension  26,016   5,914   7,462    20,102   18,554  AOCI, net of tax - cash flow hedge  (26,470 )  (11,327 )  (31,571 )   (15,143 )  5,101  Total shareholders' equity: $ 3,611,967  $ 3,671,138  $ 2,974,855   $ (59,171 ) $ 637,112  Less: Goodwill and other intangibles  1,050,158   1,057,509   566,205    (7,351 )  483,953  Tangible shareholders' equity (non-GAAP) $ 2,561,809  $ 2,613,629  $ 2,408,650   $ (51,820 ) $ 153,159   Common shares outstanding  213,909,472   214,802,602   176,426,993    (893,130 )  37,482,479   Per share:  Common stock $ 0.01  $ 0.01  $ 0.01   $ —  $ —  Additional paid in capital  10.46   10.46   9.45    —   1.01  Unallocated ESOP common stock  (0.60 )  (0.60 )  (0.75 )   —   0.15  Retained earnings  9.74   9.53   11.61    0.21   (1.86 ) AOCI, net of tax - available for sale securities  (2.73 )  (2.28 )  (3.31 )   (0.45 )  0.58  AOCI, net of tax - pension  0.12   0.03   0.04    0.09   0.08  AOCI, net of tax - cash flow hedge  (0.12 )  (0.05 )  (0.18 )   (0.07 )  0.06  Total shareholders' equity: $ 16.89  $ 17.09  $ 16.86   $ (0.21 ) $ 0.02  Less: Goodwill and other intangibles  4.91   4.92   3.21    (0.01 )  1.70  Tangible shareholders' equity (non-GAAP) $ 11.98  $ 12.17  $ 13.65   $ (0.19 ) $ (1.68 )

APPENDIX E: Merger-related Charges  As of and for the Three Months Ended (Unaudited, dollars in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Noninterest income components:  Other (1) $ (142 ) $ (2,969 ) $ — $ — $ — Total noninterest income $ (142 ) $ (2,969 ) $ — $ — $ —  Noninterest expense components:  Salaries and employee benefits $ 1,185  $ 13,147  $ 383 $ 3 $ 5 Office occupancy and equipment  1,936   2,630   11  6  2 Data processing  421   1,384   2,249  865  1,357 Professional services  99   5,490   944  787  450 Other  (54 )  4,926   97  155  51 Total noninterest expense $ 3,587  $ 27,577  $ 3,684 $ 1,816 $ 1,865  Total merger-related charges $ 3,729  $ 30,546  $ 3,684 $ 1,816 $ 1,865  (1) Disposal of acquired fixed assets.

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Contacts

Investor Contact 

Andrew Hersom 
Eastern Bankshares, Inc.
[email protected] 
860-707-4432

Media Contact 

Andrea Goodman 
Eastern Bank
[email protected] 
781-598-7847

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