Eastern Bankshares Inc
For the period ended Dec 31, 2023. Filed Feb 26, 2024.
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FY2023 · Filed Feb 26, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
| For the Year Ended December 31, | |||
|---|---|---|---|
| (In thousands) | 2023 | 2022 | 2021 |
| Operating activities | |||
| Net (loss) income from continuing operations | $(62,689) | $186,511 | $145,531 |
| Net income from discontinued operations | 294,866 | 13,248 | 9,134 |
| Net income | 232,177 | 199,759 | 154,665 |
| Adjustments to reconcile net income to net cash provided by operating activities | |||
| Provision for (release of) allowance for loan losses | 20,052 | 17,925 | (9,686) |
| Depreciation and amortization | 12,295 | 11,985 | 11,900 |
| Amortization (accretion) of of deferred loan fees and premiums, net | 6,445 | (1,441) | (27,991) |
| Deferred income tax (benefit) expense | (18,267) | 5,262 | (5,663) |
| Amortization of investment security premiums and discounts, net | 6,281 | 18,274 | 16,713 |
| Right-of-use asset amortization | 11,348 | 11,432 | 10,982 |
| Share-based compensation | 16,047 | 10,507 | — |
| Increase in cash surrender value of bank-owned life insurance | (3,912) | (3,699) | (2,348) |
| Loss (gain) on life insurance benefits | — | 663 | (1,813) |
| Loss (gain) on sales of securities available for sale, net | 333,170 | 3,157 | (1,166) |
| (Gain) loss on sales of bank premises and equipment, net | — | (1,412) | 4,715 |
| Loss on lease termination/modification, net | 395 | 593 | 2,582 |
| Accretion of gains from terminated interest rate swaps | (46) | (10,193) | (31,234) |
| Employee Stock Ownership Plan expense | 7,129 | 9,923 | 9,408 |
| Loss on sales of commercial loans | 2,738 | — | — |
| Proceeds from sale of commercial loan transferred to held for sale | 22,126 | — | — |
| Other | 25 | 17 | (106) |
| Change in: | |||
| Loans held for sale | 3,403 | (3,354) | (47) |
| Prepaid pension expense | 4,260 | 4,338 | 1,130 |
| Other assets | (14,394) | 5,431 | 62,380 |
| Other liabilities | 39,035 | (52,800) | (16,132) |
| Net cash provided by operating activities - continuing operations | 385,441 | 213,119 | 169,155 |
| Net cash (used in) provided by operating activities - discontinued operations | (123,749) | 16,823 | 5,335 |
| Net cash provided by operating activities | 261,692 | 229,942 | 174,490 |
| Investing activities | |||
| Proceeds from sales of securities available for sale | 1,899,724 | 431,193 | 23,798 |
| Proceeds from maturities and principal paydowns of securities available for sale | 423,885 | 1,049,522 | 939,575 |
| Purchases of securities available for sale | — | (740,770) | (3,323,893) |
| Proceeds from maturities and principal paydowns of securities held to maturity | 27,397 | 17,399 | — |
| Purchases of securities held to maturity | — | (493,678) | — |
| Proceeds from sale of Federal Home Loan Bank stock | 286,309 | 63,715 | 6,692 |
| Purchases of Federal Home Loan Bank stock | (250,850) | (94,174) | (2,101) |
| Contributions to low income housing tax credit investments | (36,939) | (19,487) | (11,379) |
| Contributions to other equity investments | (720) | (788) | (2,519) |
| Distributions from other equity investments | 362 | 1,170 | 337 |
| Proceeds from life insurance policies | — | 20,446 | — |
| Net (increase) decrease in outstanding loans, excluding loan purchases and sales | (586,584) | (926,255) | 380,807 |
| Proceeds from sales of commercial loans held for investment | 189,296 | — | — |
| Purchases of loans | (31,980) | (380,234) | — |
| Acquisitions, net of cash and cash equivalents acquired | — | — | (9,085) |
| Purchased banking premises and equipment | (8,140) | (8,627) | (5,728) |
| Proceeds from sale of bank premises and equipment | — | 17,313 | 21,981 |
| Proceeds from sale of other real estate owned | — | — | 125 |
| Net cash provided by (used in) investing activities - continuing operations | 1,911,760 | (1,063,255) | (1,981,390) |
| Net cash provided by (used in) investing activities - discontinued operations | 488,505 | (13,400) | (4,354) |
| Net cash provided by (used in) investing activities | 2,400,265 | (1,076,655) | (1,985,744) |
| Financing activities | |||
| Net (decrease) increase in demand, savings, interest checking, and money market investment deposit accounts | (2,462,797) | (1,751,953) | 1,155,868 |
|---|---|---|---|
| Net increase (decrease) in time deposits | 1,084,655 | 1,098,001 | (58,144) |
| Net (decrease) increase in borrowed funds | (692,612) | 706,550 | 2,580 |
| Repayment of acquired subordinated debentures (1) | — | — | (36,277) |
| Payments for repurchases of common stock | — | (201,618) | (23,224) |
| Dividends declared and paid to common shareholders | (66,671) | (65,886) | (51,564) |
| Net cash (used in) provided by financing activities - continuing operations | (2,137,425) | (214,906) | 989,239 |
| Net cash used in financing activities - discontinued operations | (961) | (668) | (263) |
| Net cash (used in) provided by financing activities | (2,138,386) | (215,574) | 988,976 |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 523,571 | (1,062,287) | (822,278) |
| Cash, cash equivalents, and restricted cash at beginning of period | 169,505 | 1,231,792 | 2,054,070 |
| Cash, cash equivalents, and restricted cash at end of period | $693,076 | $169,505 | $1,231,792 |
| Supplemental disclosure of cash flow information | |||
| Cash paid during the period for: | |||
| Interest paid on deposits and borrowings | $231,765 | $35,241 | $5,354 |
| Income taxes | 65,921 | 41,751 | 43,299 |
| Non-cash activities | |||
| Net increase in capital commitments relating to low income housing tax credit projects | $102,001 | $55,233 | $28,291 |
| Maturity of acquired securities sold under agreements to repurchase (2) | — | — | 274,982 |
| Net decrease in operating lease right of use assets and operating lease liabilities relating to lease remeasurements | 3,881 | 14,836 | — |
(1)The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be a defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt.
(2)Includes non-cash item representing maturity of acquired securities sold under agreements to repurchase which were converted to deposits upon maturity.
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