NASDAQ$EBC
Eastern Bankshares Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Eastern Bank reported a net income of $318.5 million, driven by the sale of Eastern Insurance Group, with strategic repositioning efforts underway including a pending merger with Cambridge Bancorp.
Eastern Bankshares, Inc. reported a strong fourth quarter in 2023, marked by strategic repositioning including the sale of its insurance operations which resulted in an after-tax gain of $294.5 million. Net income stood at $318.5 million, or $1.95 per diluted share. The company also focused on growing core deposits and reducing wholesale funding, while preparing for its merger with Cambridge Bancorp.
- Completed the sale of Eastern Insurance to Gallagher for $515 million, resulting in an after-tax gain of $294.5 million.
- Net income reached $318.5 million, or $1.95 per diluted share, compared to $59.1 million in the prior quarter.
- Core deposits increased by $516.2 million, or 3.0%, from the previous quarter.
- Borrowings and brokered deposits decreased to less than 1% of total assets.
Headline financials
Revenue & EPS history
Eastern Bank · Revenue · Quarterly
$160M
Revenue by segment
Eastern Bank · $8.07M total across 2 segments · Q2 2023
- Service charges on deposit accounts$7.24M—89.8%
- Interest rate swap income$825K—10.2%
Forward guidance
Eastern Bankshares is focusing on the growth of its core banking business and the upcoming merger with Cambridge Bancorp, expected to close early in the second quarter of 2024.
Tailwinds
- Strategic repositioning of the securities portfolio improved liquidity and earnings outlook.
- The insurance transaction provided additional liquidity and capital.
- The merger with Cambridge Bancorp will create a leading market share in the company's footprint.
- The company anticipates stronger earnings for shareholders.
- The merger will add a valuable wealth management business.
Headwinds
- Higher interest rates and changing customer deposit preferences pose significant challenges.
- The macroeconomic environment is difficult.
- Net interest margin decreased by 8 basis points from the prior quarter.
- Operating net income includes a $10.8 million special assessment from the FDIC.
- Increase in total net charge-offs in the fourth quarter was primarily due to partial charge-offs of two credits secured by investor commercial real estate office properties.
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 Q4 2023
-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
| Quarter | Report date | Reaction (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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