NASDAQ$EBC

Eastern Bankshares Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported growth in core deposits and loans, margin stabilization, and well-controlled expenses.

Eastern Bankshares, Inc. reported a net income of $38.6 million, or $0.24 per diluted share, for the first quarter of 2024. The company saw growth in core deposits and loans, with a stable net interest margin and well-controlled expenses. The merger with Cambridge Bancorp is expected to close early in the third quarter of 2024, pending regulatory approvals.

  • Net income was $38.6 million, or $0.24 per diluted share.
  • Core deposits increased by $121 million, or 2.8% on an annualized basis.
  • Total loans increased by $115.3 million, or 3.3% on an annualized basis, reaching $14.1 billion.
  • Net interest margin was stable at 2.68%.

Headline financials

Total Revenue

$158M

Previous: -$140M+212.5%
EPS

$0.24

Previous: $0.38-36.8%
Net interest margin - FTE

2.7%

Previous: 2.7%+0.8%
Total NPLs / total loans

0.4%

No prior period
Cost of deposits

1.7%

Previous: 0.9%+80.4%
Capital Expenditures

-$2.49M

Previous: -$1.22M-104.2%
Free Cash Flow

$36.2M

Previous: -$195M+118.5%
Net Income

$38.6M

Previous: -$194M+119.9%
Operating Income

$53.7M

Previous: -$219M+124.5%
Gross Profit

$158M

Previous: -$140M+212.5%

Revenue & EPS history

Eastern Bank · Revenue · Quarterly

$158M

Q1 2024-212.5%vs Q1 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Eastern Bank · $8.07M total across 2 segments · Q2 2023

  • Service charges on deposit accounts
    $7.24M
  • Interest rate swap income
    $825K

Forward guidance

Eastern Bankshares anticipates closing the merger with Cambridge Bancorp early in the third quarter of 2024, subject to regulatory approvals. The company expects continued growth as Eastern and Cambridge plan for integration.

Tailwinds

  • Anticipated merger with Cambridge Bancorp expected to close early in the third quarter of 2024.
  • Shareholder approvals received for the merger with Cambridge Bancorp.
  • Optimistic about continued growth as Eastern and Cambridge plan for integration.
  • Balance sheet remains healthy with strong capital and liquidity.
  • Quarter benefited from margin stabilization and well-controlled expenses.

Headwinds

  • Merger is subject to receipt of regulatory approvals.
  • Net interest income decreased by $3.4 million from the prior quarter.
  • Shareholders’ equity decreased by $22.0 million from the prior quarter.
  • Total securities decreased $125.8 million, or 2.6%, from the prior quarter.
  • Modest increase in non-performing loans from $52.6 million to $57.2 million.

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 2024

Historical avgQ1 2024

-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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