Eastern Bankshares Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Unaudited Consolidated Statements of Changes in Shareholders’ Equity
Three Months Ended September 30, 2024 and 2023
| Shares of Common Stock Outstanding | Common Stock | Additional Paid in Capital | RetainedEarnings | AccumulatedOtherComprehensiveLoss | Unallocated Common Stock Held by ESOP | Total | |
|---|---|---|---|---|---|---|---|
| (In thousands, except share data) | |||||||
| Balance at June 30, 2023 | 176,376,675 | $1,766 | $1,656,750 | $1,704,470 | $(700,982) | $(135,232) | $2,526,772 |
| Dividends to common shareholders (1) | — | — | — | (16,358) | — | — | (16,358) |
| Share-based compensation | — | — | 3,675 | — | — | — | 3,675 |
| Net income | — | — | — | 59,113 | — | — | 59,113 |
| Other comprehensive loss, net of tax | — | — | — | — | (128,600) | — | (128,600) |
| ESOP shares committed to be released | — | — | 711 | — | — | 1,240 | 1,951 |
| Balance at September 30, 2023 | 176,376,675 | $1,766 | $1,661,136 | $1,747,225 | $(829,582) | $(133,992) | $2,446,553 |
| Balance at June 30, 2024 | 176,687,829 | $1,770 | $1,673,722 | $2,076,566 | $(654,290) | $(130,295) | $2,967,473 |
| Dividends to common shareholders (1) | — | — | — | (22,336) | — | — | (22,336) |
| Repurchased common stock | (836,399) | (8) | (12,620) | — | — | — | (12,628) |
| Restricted share awards cancelled (2) | (17,379) | (2) | (214) | — | — | — | (216) |
| Issuance of common shares under share-based compensation arrangements (3) | 80,296 | 1 | (619) | — | — | — | (618) |
| Share-based compensation | — | — | 5,745 | — | — | — | 5,745 |
| Net loss | — | — | — | (6,188) | — | — | (6,188) |
| Other comprehensive income, net of tax | — | — | — | — | 158,179 | — | 158,179 |
| ESOP shares committed to be released | — | — | 863 | — | — | 1,218 | 2,081 |
| Merger consideration: | |||||||
| Common stock issued for merger | 38,769,562 | 388 | 576,116 | — | — | — | 576,504 |
| Stock issuance costs | — | — | (941) | — | — | — | (941) |
| Cambridge Bancorp restricted share awards converted to restricted share awards of the Company at fair value (4) | 118,693 | 1 | 1,052 | — | — | — | 1,053 |
| Pre-merger service credit for restricted share units (5) | — | — | 3,030 | — | — | — | 3,030 |
| Balance at September 30, 2024 | 214,802,602 | $2,150 | $2,246,134 | $2,048,042 | $(496,111) | $(129,077) | $3,671,138 |
(1)The Company declared quarterly cash dividends of $0.11 and $0.10 per share of common stock during the three months ended September 30, 2024 and 2023, respectively.
(2)Includes 14,353 restricted stock award shares cancelled upon vesting for employee payroll tax withholding and 3,026 restricted stock award shares cancelled upon forfeiture. Shares withheld relate to awards issued by Cambridge Bancorp to its employees which were converted to awards of the Company upon completion of our merger with Cambridge Bancorp effective July 12, 2024 (“the merger”). Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(3)Represents shares issued, net of employee tax withheld, upon the vesting of restricted stock units. Refer to Note 11, “Employee Benefits” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(4)The Company issued 118,693 restricted stock award shares with a fair value of $1.1 million as part of the purchase consideration for the merger. Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(5)Represents credit for service for former employees of Cambridge Bancorp retained following the merger related to restricted share unit awards converted to Company restricted share units at the merger date of July 12, 2024. Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Nine Months Ended September 30, 2024 and 2023
| Shares of Common Stock Outstanding | Common Stock | Additional Paid in Capital | RetainedEarnings | AccumulatedOtherComprehensive(Loss) Income | Unallocated Common Stock Held by ESOP | Total | |
|---|---|---|---|---|---|---|---|
| (In thousands, except share data) | |||||||
| Balance at December 31, 2022 | 176,172,073 | $1,762 | $1,649,141 | $1,881,775 | $(923,192) | $(137,696) | $2,471,790 |
| Cumulative effect of accounting adjustment (6) | — | — | — | 822 | — | — | 822 |
| Dividends to common shareholders (1) | — | — | — | (49,046) | — | — | (49,046) |
| Issuance of restricted stock awards | 47,820 | 1 | (1) | — | — | — | — |
| Issuance of common stock under share-based compensation arrangements (3) | 156,782 | 3 | (1,167) | — | — | — | (1,164) |
| Share-based compensation | — | — | 11,387 | — | — | — | 11,387 |
| Net loss | — | — | — | (86,326) | — | — | (86,326) |
| Other comprehensive income, net of tax | — | — | — | — | 93,610 | — | 93,610 |
| ESOP shares committed to be released | — | — | 1,776 | — | — | 3,704 | 5,480 |
| Balance at September 30, 2023 | 176,376,675 | $1,766 | $1,661,136 | $1,747,225 | $(829,582) | $(133,992) | $2,446,553 |
| Balance at December 31, 2023 | 176,426,993 | $1,767 | $1,666,441 | $2,047,754 | $(608,352) | $(132,755) | $2,974,855 |
| Dividends to common shareholders (1) | — | — | — | (58,502) | — | — | (58,502) |
| Repurchased common stock | (836,399) | (8) | (12,620) | — | — | — | (12,628) |
| Issuance of restricted stock awards | 56,352 | 1 | (1) | — | — | — | — |
| Restricted stock awards cancelled (2) | (17,379) | (2) | (214) | — | — | — | (216) |
| Issuance of common stock under share-based compensation arrangements (3) | 284,780 | 3 | (1,883) | — | — | — | (1,880) |
| Share-based compensation | — | — | 13,576 | — | — | — | 13,576 |
| Net income | — | — | — | 58,790 | — | — | 58,790 |
| Other comprehensive income, net of tax | — | — | — | — | 112,241 | — | 112,241 |
| ESOP shares committed to be released | — | — | 1,578 | — | — | 3,678 | 5,256 |
| Merger consideration: | |||||||
| Common stock issued for merger | 38,769,562 | 388 | 576,116 | — | — | — | 576,504 |
| Stock issuance costs | — | — | (941) | — | — | — | (941) |
| Cambridge Bancorp restricted share awards converted to restricted share awards of the Company at fair value (4) | 118,693 | 1 | 1,052 | — | — | — | 1,053 |
| Pre-merger service credit for restricted share units (5) | — | — | 3,030 | — | — | — | 3,030 |
| Balance at September 30, 2024 | 214,802,602 | $2,150 | $2,246,134 | $2,048,042 | $(496,111) | $(129,077) | $3,671,138 |
(1)The Company declared cumulative cash dividends of $0.33 and $0.30 per share of common stock during the nine months ended September 30, 2024 and 2023, respectively.
(2)Includes 14,353 restricted stock award shares cancelled upon vesting for employee payroll tax withholding and 3,026 restricted stock award shares cancelled upon forfeiture. Shares withheld relate to awards issued by Cambridge Bancorp to its employees which were converted to awards of the Company upon completion of the merger. Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(3)Represents shares issued, net of employee tax withheld, upon the vesting of restricted stock units. Refer to Note 11, “Employee Benefits” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(4)The Company issued 118,693 restricted stock award shares with a fair value of$1.1 million as part of the purchase consideration for the merger. Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(5)Represents credit for service for Company employees retained following the merger related to restricted share unit awards converted to Company restricted share units at the merger date of July 12, 2024. Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
(6)Represents gross transition adjustment amount of $1.1 million, net of taxes of $0.3 million, to reflect the cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2022-02. Refer to Note 5, “Loans and Allowance for Credit Losses” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q for additional discussion.
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