~ Company Announces Authorization of Share Repurchase Program ~

Eastern Bankshares, Inc. (the "Company," or together with its subsidiaries, "Eastern") (NASDAQ Global Select Market: EBC), the stock holding company of Eastern Bank, today announced its 2024 second quarter financial results, the declaration of a quarterly cash dividend, and the authorization of a share repurchase program.

On July 12, 2024, the Company completed its merger ("the merger") with Cambridge Bancorp ("Cambridge") and surpassed $25 billion in assets. The merger also added approximately $4.8 billion in assets under management and administration ("AUM/A"), 11 net new branch locations, and 4 net new wealth management offices to the Company. The Company plans to provide an update on the financial impact of the merger with the third quarter earnings release.

"I'm very pleased with our second quarter financial results, which demonstrate the continued strength and stability of our franchise," said Bob Rivers, Executive Chair and Chair of the Board of the Company and Eastern Bank. "Shortly after the close of the second quarter, we joined forces with Cambridge. The complementary strengths of each bank will allow us to better serve our customers with a full suite of commercial and consumer banking products and services, as well as wealth management offerings, supported by strong digital capabilities. This enhanced ability to serve our customers – combined with our financial strength and community focus – will continue to drive value for all our stakeholders and further solidify Eastern as Greater Boston's leading local bank."

Mr. Rivers continued, "Our Board's approval of a new share repurchase program is a testament to the Company's strong capital and liquidity position, and our commitment to creating shareholder value."

FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2024

Net income of $26.3 million, or $0.16 per diluted share. Operating net income* of $36.5 million, or $0.22 per diluted share.
The net interest margin on a fully tax equivalent ("FTE") basis* declined modestly to 2.64% as compared to 2.68% in the prior quarter.
Total loans increased $56.8 million, or 1.6% on an annualized basis, from the prior quarter, to $14.1 billion.
Deposits declined $129 million, or 2.9% on an annualized basis, driven by the early withdrawal of a $100 million omnibus deposit contract for which the bank received an early termination payment of $7.8 million. Excluding this early withdrawal, deposits were relatively stable from the prior quarter.
Average deposits increased $192.9 million in the second quarter, or 1.1%.
Eastern sold securities totaling $85 million in the quarter at a loss of $7.6 million.
Non-performing loans ("NPLs") reduced from $57.2 million to $39.8 million or from 0.41% to 0.28% of total loans. The reduction was driven by the resolution of two NPLs in the second quarter.
Net recoveries of 0.02% of average total loans, compared to net charge-offs of 0.21% in the prior quarter, both on an annualized basis.

BALANCE SHEET

Total assets were $21.0 billion at June 30, 2024, representing a decrease of $130.6 million, or 0.6% from March 31, 2024.

Cash and equivalents increased $11.8 million from the prior quarter to $750.8 million.
Total securities decreased $196.9 million, or 4.2%, from the prior quarter, to $4.5 billion, due to the sale of approximately $85 million in available for sale securities ("AFS securities") and principal runoff.
Loans totaled $14.1 billion, representing an increase of $56.8 million, or 0.4%, from the prior quarter, driven primarily by consumer loan growth of $51.3 million.
Deposits totaled $17.5 billion, representing a decrease of $128.9 million, or 0.7%, from the prior quarter, driven primarily by the early withdrawal of a $100 million omnibus deposit contract, which was inherited from Eastern's acquisition of Century Bank and Trust Company in 2021. Average deposits increased $192.9 million in the second quarter, or 1.1%. The Company had no brokered deposits at June 30, 2024 and March 31, 2024.
Federal Home Loan Bank advances decreased $0.2 million from the prior quarter to $17.4 million.
Shareholders' equity was $3.0 billion, representing an increase of $14.6 million from the prior quarter, driven primarily by an increase in retained earnings.
At June 30, 2024, book value per share was $16.80 and tangible book value per share* was $13.60. Please refer to Appendix D to this press release for a roll-forward of tangible shareholders' equity*.

NET INTEREST INCOME

Net interest income was $128.6 million for the second quarter of 2024, compared to $129.9 million for the prior quarter, representing a decrease of $1.3 million.

The net interest margin on a FTE basis* was 2.64% for the second quarter, representing a 4 basis point decrease from the prior quarter, as higher funding costs more than offset increases in interest-earning asset yields.
Total interest-earning assets yield increased 6 basis points from the prior quarter to 4.19%, due primarily to an increase in loan yields of 3 basis points, as well as higher other short-term investments volume.
Total interest-bearing liabilities cost increased 12 basis points from the prior quarter to 2.44%, due primarily to higher deposit costs resulting from deposit mix shifts.

NONINTEREST INCOME

Noninterest income was $25.3 million for the second quarter of 2024, compared to $27.7 million for the prior quarter, representing a decrease of $2.3 million. Noninterest income on an operating basis* was $31.1 million for the second quarter of 2024, compared to $23.4 million for the prior quarter, representing an increase of $7.8 million.

Service charges on deposit accounts increased $0.4 million from the prior quarter to $7.9 million.
Trust and investment advisory fees increased $0.2 million from the prior quarter to $6.7 million.
Debit card processing fees increased $0.3 million from the prior quarter to $3.5 million.
Loan-level interest rate swap income decreased $0.2 million from the prior quarter to $0.4 million.
Income from investments held in rabbi trust accounts decreased $2.6 million from the prior quarter to $1.8 million. The quarter over quarter change was driven by investment performance.
Losses on sales of mortgage loans held for sale were $0.2 million, compared to losses of $0.1 million in the prior quarter.
Losses on sales of AFS securities were $7.6 million due to the sale of approximately $85 million of AFS securities. There were no losses on sales of AFS securities in the prior quarter.
Other noninterest income increased $7.2 million in the second quarter to $12.7 million. The increase was driven primarily by the early termination payment of $7.8 million received from the aforementioned omnibus deposit early withdrawal.

NONINTEREST EXPENSE

Noninterest expense was $109.9 million for the second quarter of 2024, compared to $101.2 million in the prior quarter, representing an increase of $8.7 million. Noninterest expense on an operating basis* for the second quarter of 2024 was $105.3 million, compared to $97.6 million in the prior quarter, representing an increase of $7.6 million.

Salaries and employee benefits expense was $65.2 million, an increase of $0.7 million from the prior quarter.
Office occupancy and equipment expense was $10.1 million, an increase of $0.9 million from the prior quarter, due primarily to the move to the Company's new corporate headquarters.
Data processing expense was $18.0 million, an increase of $1.5 million from the prior quarter, due primarily to an increase of $1.4 million in merger related data processing expenses from the prior quarter.
Professional services expense was $4.3 million in the second quarter, an increase of $0.7 million from the prior quarter.
Marketing expense was $1.9 million, an increase of $0.4 million from the prior quarter, due primarily to higher advertising expenses.
Federal Deposit Insurance Corporation ("FDIC") insurance expense was $4.5 million, an increase of $2.2 million from the prior quarter, primarily due to an increase of $1.9 million to the FDIC special assessment first incurred in the fourth quarter of 2023.
Other noninterest expense was $5.4 million, an increase of $2.2 million from the prior quarter, due primarily to a lower level of provision release for off balance sheet exposures of $1.5 million.

Please refer to Appendix E for additional detail on M&A expenses*.

ASSET QUALITY

Non-performing loans ("NPLs") totaled $39.8 million at June 30, 2024 compared to $57.2 million at the end of the prior quarter. The reduction was driven primarily by the resolution of two NPLs in the second quarter.

During the second quarter of 2024, the Company recorded total net recoveries of $0.8 million, or 0.02% of average total loans on an annualized basis, compared to total net charge-offs of $7.3 million, or 0.21% of average total loans on an annualized basis, in the prior quarter, respectively. The net recoveries were driven by the partial recoveries of $2.0 million on the aforementioned two NPLs resolved in the second quarter.

The Company recorded a provision for loan losses totaling $6.1 million in the second quarter of 2024 driven primarily by an increase in individual loan reserves on commercial real estate loans in the second quarter. The allowance for loan losses was $156.1 million at June 30, 2024, or 1.11% of total loans, compared to $149.2 million, or 1.06% of total loans, at March 31, 2024.

DIVIDENDS AND SHARE REPURCHASES

The Company's Board of Directors has declared a quarterly cash dividend of $0.11 per common share. The dividend will be payable on September 16, 2024 to shareholders of record as of the close of business on September 3, 2024.

The Company's Board of Directors has authorized a share repurchase program of up to 10.8 million shares, representing 5% of the Company's outstanding shares of common stock. The repurchase program, which is limited to $200 million through July 31, 2025, may be modified or terminated by the Board of Directors of the Company at any time.

CONFERENCE CALL AND PRESENTATION INFORMATION

A conference call and webcast covering Eastern's second quarter 2024 earnings will be held on Friday, July 26, 2024 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 26729. 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 made available on demand on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the stock holding company for Eastern Bank. Founded in 1818, Boston-based Eastern Bank is Greater Boston's leading local bank and the largest bank-owned independent investment advisor in Massachusetts with approximately 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, Rhode Island and Connecticut. 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 and Private Banking divisions, 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 this 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, (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. 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, respectively, cannot be made available without unreasonable effort.

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 including the impact of mark-to-market adjustments on held-to-maturity securities, 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, 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 included 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.

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 with Cambridge Bancorp, including that the combined companies may not perform as expected due to transaction-related uncertainty or other factors; 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 following completion of the transaction, Eastern's business may not perform as expected due to transaction-related uncertainty or other factors; that Eastern is unable to successfully implement integration strategies; that Eastern's expansion of services or capabilities resulting from the merger may be more challenging than anticipated; reputational risks and the reaction of customers to the transaction; the inability to implement onboarding plans and other consequences associated with mergers; the diversion of management time and Company resources on merger-related issues; 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, including COVID-19 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. AND SUBSIDIARIES

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)	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023

Earnings data
Net interest income	$	128,649		$	129,900		$	133,307		$	137,205		$	141,588
Noninterest income		25,348			27,692			26,739			19,157			26,204
Total revenue		153,997			157,592			160,046			156,362			167,792
Noninterest expense		109,869			101,202			121,029			101,748			99,934
Pre-tax, pre-provision income		44,128			56,390			39,017			54,614			67,858
Provision for allowance for loan losses		6,126			7,451			5,198			7,328			7,501
Pre-tax income		38,002			48,939			33,819			47,286			60,357
Net income from continuing operations		26,331			38,647			31,509			63,464			44,419
Net income (loss) from discontinued operations		—			—			286,994			(4,351	)		4,238
Net income		26,331			38,647			318,503			59,113			48,657
Operating net income (non-GAAP)		36,519			38,081			16,875			52,085			41,092

Per-share data
Earnings (loss) per share, diluted	$	0.16		$	0.24		$	1.95		$	0.36		$	0.30
Continuing operations	$	0.16		$	0.24		$	0.19		$	0.39		$	0.27
Discontinued operations	$	—		$	—		$	1.76		$	(0.03	)	$	0.03
Operating earnings per share, diluted (non-GAAP)	$	0.22		$	0.23		$	0.10		$	0.32		$	0.25
Book value per share	$	16.80		$	16.72		$	16.86		$	13.87		$	14.33
Tangible book value per share (non-GAAP)	$	13.60		$	13.51		$	13.65		$	10.14		$	10.59

Profitability
Return on average assets (2)		0.50	%		0.74	%		0.59	%		1.18	%		0.81	%
Operating return on average assets (non-GAAP) (2)		0.70	%		0.72	%		0.31	%		0.97	%		0.75	%
Return on average shareholders' equity (2)		3.62	%		5.23	%		4.66	%		9.91	%		6.85	%
Operating return on average shareholders' equity (2)		5.03	%		5.17	%		2.51	%		8.14	%		6.34	%
Return on average tangible shareholders' equity (non-GAAP) (2)		4.48	%		6.46	%		5.99	%		13.38	%		9.19	%
Operating return on average tangible shareholders' equity (non-GAAP) (2)		6.22	%		6.36	%		3.20	%		10.99	%		8.50	%
Net interest margin (FTE) (2)		2.64	%		2.68	%		2.69	%		2.77	%		2.80	%
Cost of deposits (2)		1.78	%		1.66	%		1.51	%		1.33	%		1.22	%
Efficiency ratio		71.34	%		64.22	%		75.62	%		65.07	%		59.56	%
Operating efficiency ratio (non-GAAP)		64.04	%		61.89	%		73.59	%		60.83	%		58.47	%

Balance Sheet (end of period)
Total assets	$	21,044,169		$	21,174,804		$	21,133,278		$	21,146,292		$	21,583,493
Total loans		14,145,520			14,088,747			13,973,428			13,919,275			13,961,878
Total deposits		17,537,809			17,666,733			17,596,217			17,424,169			18,180,972
Total loans / total deposits		81	%		80	%		79	%		80	%		77	%

Asset quality
Allowance for loan losses ("ALLL")	$	156,146		$	149,190		$	148,993		$	155,146		$	147,955
ALLL / total nonperforming loans ("NPLs")		392.61	%		260.94	%		283.49	%		326.86	%		484.18	%
Total NPLs / total loans		0.28	%		0.41	%		0.38	%		0.34	%		0.22	%
Net (recoveries) charge-offs ("NCOs") / average total loans (2)		(0.02	)%		0.21	%		0.32	%		0.00	%		0.01	%

Capital adequacy
Shareholders' equity / assets		14.10	%		13.95	%		14.08	%		11.57	%		11.71	%
Tangible shareholders' equity / tangible assets (non-GAAP)		11.73	%		11.58	%		11.71	%		8.73	%		8.93	%

(1) Total assets, average assets and average tangible shareholders' equity components as of and for the three months ended Dec 31, 2023 and preceding periods presented in this table include discontinued operations.
(2) Presented on an annualized basis.


EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

	As of									Jun 30, 2024 change from
(Unaudited, dollars in thousands)	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023			Mar 31, 2024					Jun 30, 2023
ASSETS										△ $			△ %		△ $			△ %
Cash and due from banks	$	72,890		$	71,492		$	105,066		$	1,398		2	%	$	(32,176	)	(31	)%
Short-term investments		677,958			667,526			768,436			10,432		2	%		(90,478	)	(12	)%
Cash and cash equivalents		750,848			739,018			873,502			11,830		2	%		(122,654	)	(14	)%
Available for sale ("AFS") securities		4,097,842			4,287,585			4,520,293			(189,743	)	(4	)%		(422,451	)	(9	)%
Held to maturity ("HTM") securities		436,712			443,833			465,061			(7,121	)	(2	)%		(28,349	)	(6	)%
Total securities		4,534,554			4,731,418			4,985,354			(196,864	)	(4	)%		(450,800	)	(9	)%
Loans held for sale		1,308			2,204			2,835			(896	)	(41	)%		(1,527	)	(54	)%
Loans:
Commercial and industrial		3,084,186			3,084,580			3,341,976			(394	)	—	%		(257,790	)	(8	)%
Commercial real estate		5,440,411			5,519,505			5,242,290			(79,094	)	(1	)%		198,121		4	%
Commercial construction		447,157			388,024			371,367			59,133		15	%		75,790		20	%
Business banking		1,108,163			1,100,637			1,089,548			7,526		1	%		18,615		2	%
Total commercial loans		10,079,917			10,092,746			10,045,181			(12,829	)	—	%		34,736		—	%
Residential real estate		2,562,808			2,544,462			2,510,705			18,346		1	%		52,103		2	%
Consumer home equity		1,254,105			1,217,141			1,198,290			36,964		3	%		55,815		5	%
Other consumer		248,690			234,398			207,702			14,292		6	%		40,988		20	%
Total loans		14,145,520			14,088,747			13,961,878			56,773		—	%		183,642		1	%
Allowance for loan losses		(156,146	)		(149,190	)		(147,955	)		(6,956	)	5	%		(8,191	)	6	%
Unamortized prem./disc. and def. fees		(35,601	)		(32,947	)		(15,202	)		(2,654	)	8	%		(20,399	)	134	%
Net loans		13,953,773			13,906,610			13,798,721			47,163		—	%		155,052		1	%
Federal Home Loan Bank stock, at cost		5,879			5,879			26,894			—		—	%		(21,015	)	(78	)%
Premises and equipment		60,910			59,790			59,421			1,120		2	%		1,489		3	%
Bank-owned life insurance		166,710			165,734			162,718			976		1	%		3,992		2	%
Goodwill and other intangibles, net		565,196			565,701			567,213			(505	)	—	%		(2,017	)	—	%
Deferred income taxes, net		276,064			272,344			352,060			3,720		1	%		(75,996	)	(22	)%
Prepaid expenses		183,245			187,211			157,675			(3,966	)	(2	)%		25,570		16	%
Other assets		545,682			538,895			476,074			6,787		1	%		69,608		15	%
Assets of discontinued operations		—			—			121,026			—		—	%		(121,026	)	(100	)%
Total assets	$	21,044,169		$	21,174,804		$	21,583,493		$	(130,635	)	(1	)%	$	(539,324	)	(2	)%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand	$	4,808,938		$	4,952,487		$	5,346,693		$	(143,549	)	(3	)%	$	(537,755	)	(10	)%
Interest checking accounts		3,532,811			3,739,631			4,173,079			(206,820	)	(6	)%		(640,268	)	(15	)%
Savings accounts		1,238,009			1,291,260			1,495,540			(53,251	)	(4	)%		(257,531	)	(17	)%
Money market investment		5,014,900			4,770,058			4,814,412			244,842		5	%		200,488		4	%
Certificates of deposit		2,943,151			2,913,297			2,351,248			29,854		1	%		591,903		25	%
Total deposits		17,537,809			17,666,733			18,180,972			(128,924	)	(1	)%		(643,163	)	(4	)%
Borrowed funds:
Federal Home Loan Bank advances		17,415			17,576			314,021			(161	)	(1	)%		(296,606	)	(94	)%
Escrow deposits of borrowers		20,155			24,368			22,980			(4,213	)	(17	)%		(2,825	)	(12	)%
Interest rate swap collateral funds		11,370			10,810			14,210			560		5	%		(2,840	)	(20	)%
Total borrowed funds		48,940			52,754			351,211			(3,814	)	(7	)%		(302,271	)	(86	)%
Other liabilities		489,947			502,486			488,007			(12,539	)	(2	)%		1,940		—	%
Liabilities of discontinued operations		—			—			36,531			—		—	%		(36,531	)	(100	)%
Total liabilities		18,076,696			18,221,973			19,056,721			(145,277	)	(1	)%		(980,025	)	(5	)%
Shareholders' equity:
Common shares		1,770			1,769			1,766			1		—	%		4		—	%
Additional paid-in capital		1,673,722			1,669,133			1,656,750			4,589		—	%		16,972		1	%
Unallocated common shares held by the employee stock ownership plan ("ESOP")		(130,295	)		(131,512	)		(135,232	)		1,217		(1	)%		4,937		(4	)%
Retained earnings		2,076,566			2,068,315			1,704,470			8,251		—	%		372,096		22	%
Accumulated other comprehensive income ("AOCI"), net of tax		(654,290	)		(654,874	)		(700,982	)		584		—	%		46,692		(7	)%
Total shareholders' equity		2,967,473			2,952,831			2,526,772			14,642		—	%		440,701		17	%
Total liabilities and shareholders' equity	$	21,044,169		$	21,174,804		$	21,583,493		$	(130,635	)	(1	)%	$	(539,324	)	(2	)%


EASTERN BANKSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

	Three months ended									Three months ended Jun 30, 2024 change from three months ended
(Unaudited, dollars in thousands, except per-share data)	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023			Mar 31, 2024					Jun 30, 2023

Interest and dividend income:										△ $			△ %		△ $			△ %
Interest and fees on loans	$	172,514		$	169,981		$	160,862		$	2,533		1	%	$	11,652		7	%
Taxable interest and dividends on securities		22,724			23,373			24,618			(649	)	(3	)%		(1,894	)	(8	)%
Non-taxable interest and dividends on securities		1,439			1,437			1,434			2		—	%		5		—	%
Interest on federal funds sold and other short-term investments		10,699			7,820			14,851			2,879		37	%		(4,152	)	(28	)%
Total interest and dividend income		207,376			202,611			201,765			4,765		2	%		5,611		3	%
Interest expense:
Interest on deposits		78,473			72,458			56,146			6,015		8	%		22,327		40	%
Interest on borrowings		254			253			4,031			1		—	%		(3,777	)	(94	)%
Total interest expense		78,727			72,711			60,177			6,016		8	%		18,550		31	%
Net interest income		128,649			129,900			141,588			(1,251	)	(1	)%		(12,939	)	(9	)%
Provision for allowance for loan losses		6,126			7,451			7,501			(1,325	)	(18	)%		(1,375	)	(18	)%
Net interest income after provision for allowance for loan losses		122,523			122,449			134,087			74		—	%		(11,564	)	(9	)%
Noninterest income:
Service charges on deposit accounts		7,930			7,508			7,242			422		6	%		688		10	%
Trust and investment advisory fees		6,711			6,544			6,131			167		3	%		580		9	%
Debit card processing fees		3,522			3,247			3,513			275		8	%		9		—	%
Interest rate swap income		418			667			825			(249	)	(37	)%		(407	)	(49	)%
Income from investments held in rabbi trusts		1,761			4,318			3,002			(2,557	)	(59	)%		(1,241	)	(41	)%
Losses on sales of mortgage loans held for sale, net		(152	)		(58	)		(50	)		(94	)	162	%		(102	)	204	%
Losses on sales of securities available for sale, net		(7,557	)		—			—			(7,557	)	—	%		(7,557	)	—	%
Other		12,715			5,466			5,541			7,249		133	%		7,174		129	%
Total noninterest income		25,348			27,692			26,204			(2,344	)	(8	)%		(856	)	(3	)%
Noninterest expense:
Salaries and employee benefits		65,218			64,471			62,183			747		1	%		3,035		5	%
Office occupancy and equipment		10,109			9,184			9,067			925		10	%		1,042		11	%
Data processing		17,990			16,509

Eastern Bankshares, Inc. Reports Second Quarter 2024 Financial Results