NASDAQ$EBC

Eastern Bankshares Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong organic growth, sound asset quality, and continued commitment to be a source of financial support to businesses.

Eastern Bankshares, Inc. reported a net income of $47.7 million, or $0.28 per share, for the first quarter of 2021, compared to a net loss of $44.1 million, or $0.26 per share, for the fourth quarter of 2020. The company originated $453 million in PPP loans during the quarter and announced a merger with Century Bancorp, Inc.

  • Net income was $47.7 million, or $0.28 per share, and operating net income was $46.5 million, or $0.27 per share.
  • Total revenue was $155.3 million and total operating revenue was $153.6 million driven by seasonally high insurance revenues of $28.1 million.
  • Originated $452.6 million in new PPP loans to approximately 4,700 borrowers.
  • Release of loan loss reserves of $0.6 million, with $178.4 million in remaining COVID-19 modified loans.

Headline financials

Total Revenue

$155M

Previous: $134M+16.3%
EPS (adj)

$0.27

Previous: $0.04+571.6%
Net interest margin - FTE

2.7%

No prior period
Efficiency ratio

60.6%

No prior period
Capital Expenditures

-$719K

No prior period
Free Cash Flow

$46.9M

No prior period
Net Income

$47.7M

Previous: $8.45M+464.4%
Operating Income

$135M

Previous: $15.8M+758.3%
Gross Profit

$155M

Previous: $134M+15.9%
Cash & Equivalents

$1.86B

No prior period
Total Assets

$16.7B

No prior period

Revenue & EPS history

Eastern Bank · Revenue · Quarterly

$155M

Q1 2021+16.3%vs Q1 2020
Beat estimate in 6 of 10 quarters(60%)
ActualEstimate

Revenue by segment

Eastern Bank · $5.41M total across 1 segment · Q1 2021

  • Interest rate swap income
    $5.41M

Forward guidance

Eastern expects the merger with Century will create a combined franchise with approximately $22 billion in total assets and solidify Eastern’s leading position in Boston and eastern Massachusetts. The merger is expected to close in the middle of the fourth quarter of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.0%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

36%

8 / 22 earnings

Positive

+5.6%

Q1 2023

Best reaction

-8.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-3.0%-3.3%
Q4 2025-1.5%-2.1%+5.2%
Q3 2025-3.8%-8.9%-0.8%
Q2 2025-2.0%-1.1%+8.1%
Q1 2025-6.5%-5.5%-6.4%
Q3 2024-4.6%+0.8%+12.9%
Q2 2024+4.8%+2.9%+3.4%
Q1 2024-0.7%-4.3%+3.4%
Q4 2023-0.2%+5.9%-5.6%
Q3 2023-2.6%-4.4%+4.9%
Q2 2023+1.3%-1.1%-8.0%
Q1 2023+5.6%-5.0%+2.5%
Q4 2022-8.6%-7.7%-9.6%
Q3 2022-8.4%-10.6%-8.8%
Q2 2022+2.4%+0.9%+0.8%
Q1 2022-2.0%-2.0%-0.3%
Q4 2021+0.3%+2.6%+6.3%
Q3 2021+2.6%+4.5%-0.9%
Q2 2021-1.4%-1.2%+7.6%
Q1 2021+0.4%+2.4%+5.4%
Q4 2020-0.4%+1.3%+10.1%
Q3 2020+5.1%+5.0%+15.9%
Q2 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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