Eastern Bankshares Inc (EBC, Financial) announced its Q3 2023 financial results on October 26, 2023. The company reported a net income of $59.1 million, or $0.36 per diluted share, compared to a net income of $48.7 million, or $0.30 per diluted share, for the prior quarter. The company also announced a 10% increase in its quarterly dividend to $0.11 per share.
Financial Highlights
The company's operating net income, which excludes revenues, expenses, and tax provision of discontinued operations, was $52.1 million, or $0.32 per diluted share, compared to $41.1 million, or $0.25 per diluted share, for the prior quarter. The net interest margin on a fully tax equivalent basis held relatively steady at 2.77% compared to 2.80% in the prior quarter.
Eastern Bankshares Inc (EBC, Financial) also reported a healthy balance sheet with 11.6% shareholders’ equity to assets, 8.7% tangible shareholders’ equity to tangible assets, and a 16.0% common equity tier 1 capital ratio. The company's overall credit metrics remained strong with net charge-offs less than 1 basis point.
Strategic Transactions
The company's financial results follow its announcement of the sale of the insurance operations of Eastern Insurance Group, LLC and the pending merger with Cambridge Bancorp. The merger will create a combined franchise with approximately $27 billion in total assets and solidify Eastern Bankshares Inc (EBC, Financial) as the largest Boston-based mid-sized bank by deposits.
CEO Commentary
Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank, commented on the company's financial results, stating
Our results continue to demonstrate our robust capital position and the strength of our franchise. We are confident in our earnings capacity and remain focused on long-term shareholder value, and the increase in our quarterly dividend is further evidence of that confidence and commitment."
Future Outlook
Eastern Bankshares Inc (EBC, Financial) remains confident in its financial position and is focused on enhancing its liquidity position as it continues to operate in a challenging environment. The company's Board of Directors has declared a quarterly cash dividend of $0.11 per common share, representing a $0.01, or 10%, increase from the prior quarter.
Explore the complete 8-K earnings release (here) from Eastern Bankshares Inc for further details.
