Eastern Bankshares, Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
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.
Jun 30, 2025 · Filed Aug 8, 2025
EBC$22.84+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001628280-25-023680
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001628280-25-039203
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 268 previous paragraphs and 301 current paragraphs.
193 unchanged; 72 reworded; 22 added; 3 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 29 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Acquisitions
Current report
Proposed Acquisition
Current report
On April 24, 2025, Eastern Bankshares, Inc. and our wholly owned subsidiary, Eastern Bank, HarborOne Bancorp, Inc. (“HarborOne”) and HarborOne Bank, a wholly owned subsidiary of HarborOne Bancorp, Inc. (“HarborOne”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, we will acquire HarborOne and HarborOne Bank through the merger of HarborOne with and into the Eastern Bankshares, Inc., with Eastern Bankshares, Inc. as the surviving entity (the “Merger”). The Merger Agreement further provides that following the Merger, HarborOne Bank will merge with and into Eastern Bank, with Eastern Bank as the surviving entity.
Current report
Prior to the effective time of the Merger (the “Effective Time”), shareholders of HarborOne will elect to receive for each share of HarborOne common stock (“HarborOne Common Stock”) either (i) 0.765 shares of Eastern Bankshares, Inc. common stock (the “Stock Consideration” or the “Exchange Ratio”) or (ii) $12.00 in cash (the “Cash Consideration”). Subject to proration, HarborOne shareholders will have the right to elect the Stock Consideration or Cash Consideration so long as the total number of shares of HarborOne Common Stock that receive the Stock Consideration represents between 75% and 85% of the total number of shares of HarborOne Common Stock outstanding immediately prior to the Effective Time.
Current report
Subject to the fulfillment or, if permissible, waiver of the closing conditions under the Merger, we anticipate that the Merger will close during the fourth quarter of 2025, although we have the right under the Merger Agreement to defer the closing until February 20, 2026 if the closing conditions are satisfied after October 31, 2025 but before February 20, 2026.
Current report
HarborOne, a Massachusetts corporation, is a federally registered bank holding company headquartered in Brockton, Massachusetts. HarborOne Bank, a state-chartered trust company that was originally established in 1917, is a wholly-owned subsidiary of HarborOne that operates through a network of 30 full-service branches in Massachusetts and Rhode Island with $5.6 billion in total assets and $4.5 billion in total deposits as of June 30, 2025. HarborOne’s core services also include its mortgage company, HarborOne Mortgage, which is a wholly-owned subsidiary of HarborOne Bank. HarborOne Mortgage is a residential mortgage company headquartered in New Hampshire that maintains offices in Massachusetts, New Hampshire, Rhode Island, Maine, New Jersey, and Florida, and is licensed to lend in five additional states.
Current report
During the three and six months ended June 30, 2025, we incurred and recorded merger and acquisition costs related to our proposed acquisition of HarborOne of $2.6 million. The following table presents HarborOne-related merger and acquisition costs by expense category, which are included in non-operating expenses on the Consolidated Statements of Income, for the three and six months ended June 30, 2025:
Current report
(2)For the six-month period ended June 30, 2025, which ended in a net loss, common stock equivalents are excluded from the calculation of diluted earnings per share for GAAP purposes as inclusion would have had an anti-dilutive effect. Common stock equivalents were included for purposes of computing diluted operating earnings per share.
Current report
(1)At June 30, 2025, we refined the presentation of CRE office risk segments resulting in the addition of the “laboratory/life science” risk segment. Loans in this risk segment were reported in other risk segments as of December 31, 2024 and were reclassified above for comparative purposes.
Current report
Interest and dividend income increased by $135.1 million, or 32.9%, to $545.0 million during the six months ended June 30, 2025 from $410.0 million during the six months ended June 30, 2024. The increase was due to an increase in both the average balance and yields of our loan portfolio.
Current report
•Interest income on loans increased $127.1 million, or 37.1%, to $469.6 million during the six months ended June 30, 2025 from $342.5 million during the six months ended June 30, 2024. The increase in interest income on our loans was primarily due to an increase in the average balance of our loans and an increase in the yield on our loans. The average balance of our loan portfolio increased $3.9 billion, or 27.7%, to $18.0 billion during the six months ended June 30, 2025 from $14.1 billion during the six months ended June 30, 2024, which was primarily due to loans acquired in connection with our merger with Cambridge. The overall yield on our loans increased 35 basis points during the six months ended June 30, 2025 in comparison to the six months ended June 30, 2024, which was primarily due to accretion of the discount recorded related to loans acquired in our merger with Cambridge.
Current report
During the three months ended June 30, 2025, interest expense decreased by $1.4 million to $77.3 million from $78.7 million during the three months ended June 30, 2024. This decrease was primarily due to deposit interest expense which decreased during the three months ended June 30, 2025 by $1.8 million to $76.7 million from $78.5 million during the three months ended June 30, 2024. This decrease was due to a decrease in rates paid on deposits.
Current report
Net interest income increased by $132.4 million, or 51.2%, to $390.9 million during the six months ended June 30, 2025 from $258.5 million for the six months ended June 30, 2024. Net interest income increased due to an increase in our net interest margin as well as an increase in the average balance of net interest-earning assets of $0.5 billion, or 7.1%, to $8.0 billion during the six months ended June 30, 2025 from $7.5 billion during the six months ended June 30, 2024.
Current report
Net interest margin increased 82 basis points to 3.48% during the six months ended June 30, 2025 from 2.66% during the six months ended June 30, 2024. The increase in net interest margin for the six months ended June 30, 2025 from the six months ended June 30, 2024 was primarily due to an increase in our average balance and yield on interest-earning assets combined with a decrease in the cost of our interest-bearing liabilities.
Current report
(6)Represents net income divided by average total assets.
Current report
•Losses on sales of securities available for sale were $7.6 million during the three months ended June 30, 2024. In May 2024 an early withdrawal of an omnibus deposit contract occurred which had a balance of $100.0 million at the time of contract termination. Management made the decision to sell certain available for sale securities following the early termination in order to recoup liquidity. There were no sales of securities during the three months ended June 30, 2025.
Current report
•Miscellaneous income and fees decreased primarily as a result of non-recurring fee income received during the three months ended June 30, 2024 from the early withdrawal of an omnibus deposit contract described above.
Current report
Noninterest income decreased $246.3 million to a net loss of $193.3 million for the six months ended June 30, 2025 from net income of $53.0 million for the six months ended June 30, 2024. This decrease was primarily due to a $262.1 million increase in losses on sales of securities available for sale and a $4.7 million decrease in miscellaneous income and fees. These items were partially offset by a $20.5 million increase in investment advisory fees.
Current report
•Miscellaneous income and fees decreased primarily as a result of non-recurring fee income received during the six months ended June 30, 2024 from the early withdrawal of an omnibus deposit contract described above.
Current report
◦DC SERP increased $1.4 million primarily due to an increase in investment performance related to investments held in rabbi trusts during the three months ended June 30, 2025. Participant benefits are adjusted based upon deemed investment performance. Accordingly, such investments experienced an increase in value during the three months ended June 30, 2025, resulting in a corresponding increase in the related benefit expense.
Current report
Noninterest expense increased by $56.0 million, or 26.5%, to $267.1 million during the six months ended June 30, 2025 from $211.1 million during the six months ended June 30, 2024. This increase was primarily due to an $31.3 million increase in salaries and employee benefits expense and an $14.6 million increase in amortization of intangible assets.
Current report
Income tax expense for the three and six months ended June 30, 2025 was $0.1 million and $33.8 million, respectively, compared to $11.7 million and $22.0 million for the three and six months ended June 30, 2024, respectively.
Removed paragraphs (3)
Previous report
During the three months ended March 31, 2025, interest expense increased $4.1 million to $76.8 million from $72.7 million during the three months ended March 31, 2024. This increase was primarily attributable to an increase in deposit interest expense and an increase in borrowings interest expense.
Previous report
Interest expense related to our borrowings increased by $0.6 million to $0.8 million during three months ended March 31, 2025 from $0.3 million during the three months ended March 31, 2024. The increase in borrowings interest expense during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due to an increase in our utilization of our FHLB borrowing capacity.
Previous report
Income tax expense increased by $23.4 million to $33.7 million for the three months ended March 31, 2025 from $10.3 million for the three months ended March 31, 2024. We recorded net income tax expense during the three months ended March 31, 2025 despite a net loss recognized during the period. The loss on sale of securities recognized during the three months ended March 31, 2025 is not considered to be a discrete item for tax purposes and, therefore, the associated tax benefit of $67.9 million is realizable ratably over the full year. The increase in income tax expense for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to the previously discussed partial recognition of the tax benefit associated with the sale of securities during the three months ended March 31, 2025.
Reworded paragraphs (72)
Previous wording
This section is intended to assist in the understanding of the financial performance of the Company and its subsidiaries through a discussion of our financial condition at March 31, 2025, and our results of operations for the three months ended March 31, 2025 and 2024. This section should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto of the Company appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Company’s 2024 Form 10-K.
Current wording
This section is intended to assist in the understanding of the financial performance of the Company and its subsidiaries through a discussion of our financial condition at June 30, 2025, and our results of operations for the three and six months ended June 30, 2025 and 2024. This section should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto of the Company appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Company’s 2024 Form 10-K.
Previous wording
There have been no other material changes in critical accounting policies during the three months ended March 31, 2025.
Current wording
There have been no other material changes in critical accounting policies during the three and six months ended June 30, 2025.
Previous wording
We are a bank holding company, and our principal subsidiary, Eastern Bank, is a Massachusetts-chartered bank that has served the banking needs of our customers since 1818. Our business philosophy is to operate as a diversified financial services enterprise providing a broad array of banking and other financial services primarily to retail, commercial and small business customers. We had total assets of $25.0 billion and $25.6 billion at March 31, 2025 and December 31, 2024, respectively. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the New Hampshire Banking Department, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau. Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct under our “Cambridge Trust Wealth Management, a division of Eastern Bank” brand name (“Cambridge Trust Wealth Management division”).
Current wording
We are a bank holding company, and our principal subsidiary, Eastern Bank, is a Massachusetts-chartered bank that has served the banking needs of our customers since 1818. Our business philosophy is to operate as a diversified financial services enterprise providing a broad array of banking and other financial services primarily to retail, commercial and small business customers. We had total assets of $25.5 billion and $25.6 billion at June 30, 2025 and December 31, 2024, respectively. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the New Hampshire Banking Department, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau. Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct under our “Cambridge Trust Wealth Management, a division of Eastern Bank” brand name (“Cambridge Trust Wealth Management division”).
Previous wording
Net loss for the three months ended March 31, 2025 computed in accordance with GAAP was $217.7 million as compared to net income of $38.6 million for the three months ended March 31, 2024. The decrease in net income to a net loss for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to losses on sales of securities during the three months ended March 31, 2025. Refer to the later section titled“Results of Operations”within this Item 2 for additional discussion.
Current wording
Net income and net loss for the three and six months ended June 30, 2025, respectively, computed in accordance with GAAP was $100.2 million and $117.4 million, respectively, as compared to net income of $26.3 million and $65.0 million for the three and six months ended June 30, 2024, respectively. The increase in net income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to increased net interest income and increased noninterest income during the three months ended June 30, 2025. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion. The decrease in net income from the six months ended June 30, 2024 to a net loss for six months ended June 30, 2025 was primarily due to losses on sales of securities during the six months ended June 30, 2025. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion
Previous wording
Net loss for the three months ended March 31, 2025 and net income for the three months ended March 31, 2024 included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure. Operating net income for the three months ended March 31, 2025 was $67.5 million compared to operating net income for the three months ended March 31, 2024 of $40.0 million, representing a increase of 68.9%. This increase was primarily due to higher net interest income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 partially offset by higher noninterest expense on an operating basis for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. See“Non-GAAP Financial Measures”and“Results of Operations” within this Item 2 for a reconciliation of operating net income to net income on a GAAP basis and further discussion of noninterest income and noninterest expense.
Current wording
Net income and loss for the three and six months ended June 30, 2025, respectively, and net income for the three and six months ended June 30, 2024 included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure. Operating net income for the three and six months ended June 30, 2025 was $81.7 million and $149.2 million, respectively, compared to operating net income for the three and six months ended June 30, 2024 of $37.1 million and $77.1 million, respectively, representing increases of 120.1% and 93.5%, respectively. These increases were primarily due to higher net interest income for both the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 partially offset by higher noninterest expense on an operating basis for both the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. See“Non-GAAP Financial Measures”and“Results of Operations” within this Item 2 for a reconciliation of operating net income to net income on a GAAP basis and further discussion of noninterest income and noninterest expense.
Previous wording
•Commercial and industrial: Loans in this category consist of revolving and term loans extended to businesses and corporate enterprises for the purpose of financing working capital, facilitating equipment purchases and facilitating acquisitions. As of March 31, 2025 and December 31, 2024, we had total commercial and industrial loans of $3.4 billion and $3.3 billion, respectively, representing 19.0% and 18.4%, respectively, of our total loans. The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Our primary focus for commercial and industrial loans is middle-market companies located in the markets we serve. In addition, we participate in the syndicated loan market and the SNC Program. Our commercial and industrial portfolio also includes our Asset Based Lending Portfolio (“ABL Portfolio”) and industrial revenue bonds (“IRBs”) which are municipal bonds issued to finance major capital projects. The majority of our IRB portfolio is in educational and other non-profit sectors.
Current wording
•Commercial and industrial: Loans in this category consist of revolving and term loans extended to businesses and corporate enterprises for the purpose of financing working capital, facilitating equipment purchases and facilitating acquisitions. As of June 30, 2025 and December 31, 2024, we had total commercial and industrial loans of $3.6 billion and $3.3 billion, respectively, representing 19.8% and 18.4%, respectively, of our total loans. The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Our primary focus for commercial and industrial loans is middle-market companies located in the markets we serve. In addition, we participate in the syndicated loan market and the SNC Program. Our commercial and industrial portfolio also includes our Asset Based Lending Portfolio (“ABL Portfolio”) and industrial revenue bonds (“IRBs”) which are municipal bonds issued to finance major capital projects. The majority of our IRB portfolio is in educational and other non-profit sectors.
Previous wording
•Commercial real estate: Loans in this category include mortgage loans and lines of credit on commercial real estate, both investment and owner occupied. Property types financed include office, industrial, multi-family, affordable housing, retail, hotel, and other type properties. As of March 31, 2025 and December 31, 2024, we had total commercial real estate loans of $7.1 billion and $7.0 billion, representing 39.7% and 39.6%, respectively, of our total loans as of each period end. As of March 31, 2025 and December 31, 2024, owner occupied loans totaled $929.1 million and $947.2 million, respectively, representing 13.1% and 13.4%, respectively, of our commercial real estate loans. Collateral values are established by independent third-party appraisals and evaluations. The primary repayment sources include operating income generated by the real estate, permanent debt refinancing and/or the sale of the real estate. Our commercial real estate loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Current wording
39.6%, respectively, of our total loans as of each period end. As of June 30, 2025 and December 31, 2024, owner occupied loans totaled $948.5 million and $947.2 million, respectively, representing 13.1% and 13.4%, respectively, of our commercial real estate loans. Collateral values are established by independent third-party appraisals and evaluations. The primary repayment sources include operating income generated by the real estate, permanent debt refinancing and/or the sale of the real estate. Our commercial real estate loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Previous wording
•Commercial construction: Loans in this category include construction project financing and are comprised of commercial real estate, business banking and residential loans for the purpose of constructing and developing real estate. As of March 31, 2025 and December 31, 2024, we had total commercial construction loans of $459.1 million and $491.6 million, respectively, representing 2.6% and 2.8%, respectively, of our total loans. Our commercial construction loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Current wording
•Commercial construction: Loans in this category include construction project financing and are comprised of commercial real estate, business banking and residential loans for the purpose of constructing and developing real estate. As of June 30, 2025 and December 31, 2024, we had total commercial construction loans of $470.5 million and $491.6 million, respectively, representing 2.6% and 2.8%, respectively, of our total loans. Our commercial construction loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Previous wording
•Business banking: Loans in this category are comprised of loans to small businesses with exposures of under $1.0 million and small investment real estate projects with exposures of under $3.0 million. These loans are separate and distinct from our commercial and industrial and commercial real estate portfolios described above due to the size of the loans. As of both March 31, 2025 and December 31, 2024, we had total business banking loans of $1.4 billion, representing 7.9% and 8.1% of our total loans for each period end, respectively. In this category, commercial and industrial loans and commercial real estate loans totaled $238.8 million and $1.2 billion, respectively, as of March 31, 2025, and $244.4 million and $1.2 billion, respectively, as of December 31, 2024.
Current wording
•Business banking: Loans in this category are comprised of loans to small businesses with exposures of under $1.0 million and small investment real estate projects with exposures of under $3.0 million. These loans are separate and distinct from our commercial and industrial and commercial real estate portfolios described above due to the size of the loans. As of both June 30, 2025 and December 31, 2024, we had total business banking loans of $1.4 billion, representing 7.7% and 8.1%, respectively, of our total loans for each period end. In this category, commercial and industrial loans and commercial real estate loans totaled $236.0 million and $1.2 billion, respectively, as of June 30, 2025, and $244.4 million and $1.2 billion, respectively, as of December 31, 2024.
Previous wording
•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both March 31, 2025 and December 31, 2024, we had total residential real estate loans of $3.9 billion, representing 21.8% and 22.1%, respectively, of our total loans. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources including cash reserves and the value of the collateral. We maintain policy standards for minimum credit scores and cash reserves and maximum loan-to-value consistent with a “prime” portfolio. Collateral consists of mortgage liens on residential dwellings. We do not originate or purchase sub-prime or other high-risk loans. Residential real estate loans are originated either for sale to investors or to retain in our loan portfolio. Decisions about whether to sell or retain residential real estate loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and our capital needs. During the three months ended March 31, 2025, residential real estate mortgage loan originations were $55.5 million, of which $13.1 million were sold on the secondary markets. Comparatively, during the three months ended March 31, 2024, residential real estate mortgage loan originations were $38.3 million, of which $19.9 million were sold on the secondary markets.
Current wording
•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both June 30, 2025 and December 31, 2024, we had total residential real estate loans of $3.9 billion, representing 21.2% and 22.1%, respectively, of our total loans. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources including cash reserves and the value of the collateral. We maintain policy standards for minimum credit scores and cash reserves and maximum loan-to-value consistent with a “prime” portfolio. Collateral consists of mortgage liens on residential dwellings. We do not originate or purchase sub-prime or other high-risk loans. Residential real estate loans are originated either for sale to investors or to retain in our loan portfolio. Decisions about whether to sell or retain residential real estate loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and our capital needs. During the three and six months ended June 30, 2025, residential real estate mortgage loan originations were $128.0 million and $183.5 million, respectively, of which $9.7 million and $22.8 million, respectively, were sold on the secondary markets. Comparatively, during the three and six months ended June 30, 2024, residential real estate mortgage loan originations were $89.3 million and $127.6 million, respectively, of which $14.8 million and $34.7 million, respectively, were sold on the secondary markets.
Previous wording
•Consumer home equity: Loans in this category consist of home equity lines of credit and home equity loans. As of both March 31, 2025 and December 31, 2024, we had total consumer home equity loans of $1.4 billion, representing 7.8% of our total loans at each period end. Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity lines of credit can be converted to term loans that are fully amortized. Underwriting considerations are materially consistent with those utilized in the residential real estate category. Collateral consists of a senior or subordinate lien on owner-occupied residential property.
Current wording
•Consumer home equity: Loans in this category consist of home equity lines of credit and home equity loans. As of June 30, 2025 and December 31, 2024, we had total consumer home equity loans of $1.5 billion and $1.4 billion, respectively, representing 8.0% and 7.8%, respectively, of our total loans. Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity lines of credit can be converted to term loans that are fully amortized. Underwriting considerations are materially consistent with those utilized in the residential real estate category. Collateral consists of a senior or subordinate lien on owner-occupied residential property.
Previous wording
•Other consumer: Loans in this category consist of unsecured personal lines of credit, overdraft protection, automobile and aircraft loans, home improvement loans and other personal loans. As of March 31, 2025 and December 31, 2024, we had total other consumer loans of $218.1 million and $227.2 million, respectively, representing 1.2% and 1.3%, respectively, of our total loans. Our policy and underwriting in this category include the following factors, among others: income sources and reliability, credit histories, term of repayment and collateral value, as applicable.
Current wording
•Other consumer: Loans in this category consist of unsecured personal lines of credit, overdraft protection, automobile and aircraft loans, home improvement loans and other personal loans. As of June 30, 2025 and December 31, 2024, we had total other consumer loans of $222.6 million and $227.2 million, respectively, representing 1.2% and 1.3%, respectively, of our total loans. Our policy and underwriting in this category include the following factors, among others: income sources and reliability, credit histories, term of repayment and collateral value, as applicable.
Previous wording
•We offer a wide variety of deposit products and services to our consumer customers. We service these customers through our 109 branches located in eastern Massachusetts and New Hampshire, through our call center in our facility in Lynn, MA and through our online and mobile banking applications.
Current wording
•We offer a wide variety of deposit products and services to our consumer customers. We service these customers through our 109 branches located in eastern Massachusetts and New Hampshire, through our call center and through our online and mobile banking applications.
Previous wording
•Through our Cambridge Trust Wealth Management division, we provide a wide range of trust services, including (i) managing customer investments, (ii) serving as custodian for customer assets, and (iii) providing other fiduciary services, including serving as the trustee and personal representative of estates. As of March 31, 2025 and December 31, 2024, we held $8.9 billion and $8.7 billion, respectively, of assets in a fiduciary, custodial or agency capacity for customers, which are not our assets and therefore not included on the Consolidated Balance Sheets included in this Quarterly Report on Form 10-Q. For the three months ended March 31, 2025, we had noninterest income of $16.4 million from providing these services compared to $6.5 million for the three months ended March 31, 2024.
Current wording
•Through our Cambridge Trust Wealth Management division, we provide a wide range of trust services, including (i) managing customer investments, (ii) serving as custodian for customer assets, and (iii) providing other fiduciary services, including serving as the trustee and personal representative of estates. As of June 30, 2025 and December 31, 2024, we held $9.2 billion and $8.7 billion, respectively, of assets in a fiduciary, custodial or agency capacity for customers, which are not our assets and therefore not included on the Consolidated Balance Sheets included in this Quarterly Report on Form 10-Q. For the three and six months ended June 30, 2025, we had noninterest income of $17.3 million and $33.7 million, respectively, from providing these services compared to $6.7 million and $13.3 million for the three and six months ended June 30, 2024, respectively.
Previous wording
Inevitably, not all of our interest rate-sensitive assets and liabilities will re-price simultaneously and in equal volume in response to changes in the federal funds rate, and therefore the potential for interest rate exposure exists. Management believes that several factors will affect the actual impact of interest rate changes on our balance sheet and operating results, including, but not limited to, actual changes in interest rates or expectations of future changes, the degree of volatility in the securities markets, inflation rates or expectations of inflation, and the slope of the interest rate yield curve. We attempt to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging our exposure. Approximately 34% of the outstanding principal balance of our loans, gross of outstanding interest rate swaps as described further below, as of March 31, 2025 was indexed to a market rate that is expected to reprice with similar magnitude and direction as the federal funds rate. A portion of these loans have been hedged using interest rate swaps to convert the floating rate interest receipts to a fixed rate. The notional amount of floating rate loans swapped totaled $2.4 billion on March 31, 2025, representing approximately 13.2% of the outstanding principal balance of our loans at that date. For more detail regarding such hedging financial instruments, refer to Note 11, “Derivative Financial Instruments”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q. Refer to the section titled“Management of Market Risk” within this Item 2 for additional discussion including the estimated change to our net interest income under interest rate risk measurement methodologies that use a variety of hypothetical scenarios assuming immediate and parallel changes in interest rates that may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
Current wording
Inevitably, not all of our interest rate-sensitive assets and liabilities will re-price simultaneously and in equal volume in response to changes in the federal funds rate, and therefore the potential for interest rate exposure exists. Management believes that several factors will affect the actual impact of interest rate changes on our balance sheet and operating results, including, but not limited to, actual changes in interest rates or expectations of future changes, the degree of volatility in the securities markets, inflation rates or expectations of inflation, and the slope of the interest rate yield curve. We attempt to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging our exposure. Approximately 35% of the outstanding principal balance of our loans, gross of outstanding interest rate swaps as described further below, as of June 30, 2025 was indexed to a market rate that is expected to re-price with similar magnitude and direction as the federal funds rate. A portion of these loans have been hedged using interest rate swaps to convert the floating rate interest receipts to a fixed rate. The notional amount of floating rate loans swapped totaled $2.4 billion on June 30, 2025, representing approximately 12.9% of the outstanding principal balance of our loans at that date. For more detail regarding such hedging financial instruments, refer to Note 11, “Derivative Financial Instruments”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q. Refer to the section titled“Management of Market Risk” within this Item 2 for additional discussion including the estimated change to our net interest income under interest rate risk measurement methodologies that use a variety of hypothetical scenarios assuming immediate and parallel changes in interest rates that may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
Previous wording
There are items in our financial statements that impact our results but which we believe are unrelated to our core business. Accordingly, we present operating net income, noninterest income on an operating basis, noninterest expense on an operating basis, total operating revenue, operating earnings per share, tangible net income to average tangible shareholders’ equity, tangible operating net income to average tangible shareholders' equity, tangible book value per share, and the operating efficiency ratio, each of which excludes the impact of such items because we believe such exclusion can provide greater visibility into our core business and underlying trends. Such items that we do not consider to be core to our business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) OREO gains and losses, (v) merger and acquisition expenses, and (vi) certain discrete tax items. There were no expenses indirectly associated with OREO gains or losses, impairment charges on tax credit investments and associated tax credit benefits, or merger and acquisition expenses during the periods presented in this Quarterly Report on Form 10-Q.
Current wording
There are items in our financial statements that impact our results but which we believe are unrelated to our core business. Accordingly, we present operating net income, noninterest income on an operating basis, noninterest expense on an operating basis, total operating revenue, operating earnings per share, tangible net income to average tangible shareholders’ equity, tangible operating net income to average tangible shareholders' equity, tangible book value per share, and the operating efficiency ratio, each of which excludes the impact of such items because we believe such exclusion can provide greater visibility into our core business and underlying trends. Such items that we do not consider to be core to our business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other assets, (iii) impairment charges on tax credit investments and associated tax credit benefits, (iv) OREO gains and losses, (v) merger and acquisition expenses, and (vi) certain discrete tax items. There were no expenses indirectly associated with OREO gains or losses, or impairment charges on tax credit investments and associated tax credit benefits during the periods presented in this Quarterly Report on Form 10-Q.
Previous wording
In the first quarter of 2025, we changed our computation of operating net income to exclude, as an adjustment to net (loss) income in arriving at operating net income, income from investments held in rabbi trust and rabbi trust employee benefit expense. Management believes these changes result in a more meaningful measure of our financial performance and allow for better comparability to peer companies. Prior period results have been recast for comparability purposes.
Current wording
In the first quarter of 2025, we changed our computation of operating net income to exclude, as an adjustment to net income (loss) in arriving at operating net income, income from investments held in rabbi trust and rabbi trust employee benefit expense. Management believes these changes result in a more meaningful measure of our financial performance and allow for better comparability to peer companies. Prior period results have been recast for comparability purposes
Previous wording
Our non-GAAP financial measures should not be considered as an alternative or substitute to GAAP net (loss) income, or as an indication of our cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. An item which we consider to be non-core and exclude when computing these non-GAAP financial measures can be of substantial importance to our results for any particular period. In addition, our methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other companies to calculate the same or similar performance measures and, accordingly, our reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other companies.
Current wording
Our non-GAAP financial measures should not be considered as an alternative or substitute to GAAP net income (loss), or as an indication of our cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. An item which we consider to be non-core and exclude when computing these non-GAAP financial measures can be of substantial importance to our results for any particular period. In addition, our methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other companies to calculate the same or similar performance measures and, accordingly, our reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other companies.
Previous wording
(1)The net tax (expense) benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. For discussion regarding the net tax expense recognized for the three months ended March 31, 2025, refer to Note 8, “Income Taxes” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q
Current wording
(1)The net tax benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. For discussion regarding the net tax expense recognized for the three and six months ended June 30, 2025, refer to Note 8, “Income Taxes” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Previous wording
The following table summarizes the impact of non-core items with respect to our total revenue, noninterest (loss) income, noninterest expense, and the efficiency ratio, which reconciles to the most directly comparable respective GAAP financial measure, for the periods indicated:
Current wording
The following table summarizes the impact of non-core items with respect to our total revenue, noninterest income (loss), noninterest expense, and the efficiency ratio, which reconciles to the most directly comparable respective GAAP financial measure, for the periods indicated:
Previous wording
The following table summarizes the calculation of our average tangible shareholders’ equity and ratio of net (loss) income and operating net income to average tangible shareholders’ equity (“operating return on average tangible shareholders’ equity”), which reconciles to the most directly comparable GAAP measure, for the periods indicated:
Current wording
The following table summarizes the calculation of our average tangible shareholders’ equity and ratio of net income (loss) and operating net income to average tangible shareholders’ equity (“operating return on average tangible shareholders’ equity”), which reconciles to the most directly comparable GAAP measure, for the periods indicated:
Previous wording
(1)Refer to the table above within this “Non-GAAP Financial Measures” section for a reconciliation of operating net income to net (loss) income.
Current wording
(1)Refer to the table above within this “Non-GAAP Financial Measures” section for a reconciliation of operating net income to net income (loss).
Previous wording
(3)The tax effect of amortization of intangible assets was calculated using our combined statutory tax rate of 27.7% for the three months ended March 31, 2025 and 2024.
Current wording
(3)The tax effect of amortization of intangible assets was calculated using our combined statutory tax rate of 27.7%.
Previous wording
Total cash and cash equivalents decreased by $638.1 million, or 63.4%, to $368.8 million at March 31, 2025 from $1.0 billion at December 31, 2024. This decrease was primarily due to a decrease in total deposits of $522.2 million and an increase in gross loans of $125.4 million. For further discussion of the change in deposits and loans, refer to the later“Deposits”and “Loans” sections in this Item 2.
Current wording
Total cash and cash equivalents decreased by $453.4 million, or 45.0%, to $553.5 million at June 30, 2025 from $1.0 billion at December 31, 2024. This decrease was primarily due to an increase in gross loans of $510.7 million and a decrease in total deposits of $98.6 million. For further discussion of the change in deposits and loans, refer to the later“Deposits”and “Loans” sections in this Item 2.
Previous wording
Our securities portfolio decreased $2.5 million, or 0.1%, at December 31, 2024. This slight decrease was primarily due to the offsetting effect of sales of AFS securities of $1.3 billion and purchases of AFS and HTM securities of $1.3 billion.
Current wording
Our securities portfolio decreased $46.9 million, or 1.1%, to $4.4 billion at June 30, 2025 from $4.4 billion at December 31, 2024. This slight decrease was primarily due the offsetting effect of sales of AFS securities of $1.3 billion, AFS and HTM maturities and principal paydowns of $232.0 million, and purchases of AFS and HTM securities of $1.4 billion.
Previous wording
A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $186.7 million at March 31, 2025 compared to $183.1 million at December 31, 2024.
Current wording
A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $237.2 million at June 30, 2025 compared to $183.1 million at December 31, 2024.
Previous wording
We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans increased $0.1 billion, or 0.7%, to $18.2 billion at March 31, 2025 from $18.1 billion at December 31, 2024. The increase was primarily due to continued investment in resources targeted to grow our commercial and industrial loan portfolio.
Current wording
We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans increased $0.5 billion, or 2.8%, to $18.6 billion at June 30, 2025 from $18.1 billion at December 31, 2024. The increase was primarily due to continued investment in resources targeted to grow our commercial and industrial loan portfolio and an increase in our commercial real estate investment loans driven by steady growth in our multifamily property type segment.
Previous wording
We believe that our commercial loan portfolio composition is relatively diversified in terms of industry sectors, property types and various lending specialties, and it is concentrated in the New England geographical area, with 81.6% of our commercial loans in Massachusetts and New Hampshire as of March 31, 2025.
Current wording
We believe that our commercial loan portfolio composition is relatively diversified in terms of industry sectors, property types and various lending specialties, and it is concentrated in the New England geographical area, with 80.9% of our commercial loans in Massachusetts and New Hampshire as of June 30, 2025.
Previous wording
Special mention, substandard and doubtful loans totaled 4.8% and 4.9% of total commercial loans outstanding at March 31, 2025 and December 31, 2024, respectively.
Current wording
Special mention, substandard and doubtful loans totaled 3.6% and 4.9% of total commercial loans outstanding at June 30, 2025 and December 31, 2024, respectively.
Previous wording
The delinquency rate of our total loan portfolio was 0.62% at both March 31, 2025 and December 31, 2024.
Current wording
The delinquency rate of our total loan portfolio decreased to 0.38% at June 30, 2025, compared to 0.62% at December 31, 2024.
Previous wording
NPLs decreased $44.2 million, or 32.5%, to $91.6 million at March 31, 2025 from $135.8 million at December 31, 2024. NPLs as a percentage of total loans decreased to 0.51% at March 31, 2025 from 0.76% at December 31, 2024. The decrease was primarily due to the sale of one non-performing commercial and industrial loan and the transfer of another commercial real estate loan to held for sale during the three months ended March 31, 2025.
Current wording
NPLs decreased $81.1 million, or 59.7%, to $54.7 million at June 30, 2025 from $135.8 million at December 31, 2024. NPLs as a percentage of total loans decreased to 0.30% at June 30, 2025 from 0.76% at December 31, 2024. The decrease was primarily due to the sales of one non-performing commercial and industrial loan and several non-performing commercial real estate loans during the six months ended June 30, 2025. Also driving this decline is continued efforts to work with borrowers to either exit certain relationships through sales or otherwise alleviate non-performance through regular payoffs.
Previous wording
The total amount of interest recorded on NPLs during both the three months ended March 31, 2025 and 2024 was not significant. The gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $2.3 million and $1.5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
The total amount of interest recorded on NPLs during both the six months ended June 30, 2025 and 2024 was not significant. The gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $2.8 million and $1.6 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
In the course of resolving NPLs, we may choose to restructure the contractual terms of certain loans. We attempt to work-out alternative payment schedules with the borrowers in order to avoid foreclosure actions. The aggregate amortized cost balance as of March 31, 2025 and March 31, 2024 of loans modified during the three months ended March 31, 2025 and 2024, respectively, which were determined to be modifications to borrowers experiencing financial difficulty was $4.4 million and $1.1 million, respectively.
Current wording
In the course of resolving NPLs, we may choose to restructure the contractual terms of certain loans. We attempt to work-out alternative payment schedules with the borrowers in order to avoid foreclosure actions. The aggregate amortized cost balance as of June 30, 2025 of loans modified during the three and six months ended June 30, 2025 which were determined to be modifications to borrowers experiencing financial difficulty was $11.0 million and $14.2 million, respectively. The aggregate amortized cost balance as of June 30, 2024 of loans modified during the three and six months ended June 30, 2024 which were determined to be modifications to borrowers experiencing financial difficulty was $22.8 million and $23.7 million, respectively.
Previous wording
As of March 31, 2025 and 2024, there were no loans that had been modified to borrowers experiencing financial difficulty during the during the twelve-month periods then ended which had subsequently defaulted during the three months ended March 31, 2025 or 2024, respectively.
Current wording
As of June 30, 2025, there were no loans that had been modified to borrowers experiencing financial difficulty during the during the twelve-month period then ended which had subsequently defaulted during the six months ended June 30, 2025. As of June 30, 2024, there were two loans with an aggregate balance of $0.1 million that had been modified to borrowers experiencing financial difficulty during the twelve-month period then ended which had subsequently defaulted during the six months ended June 30, 2024.
Previous wording
Purchased credit deteriorated (“PCD”) loans are loans that we acquired that have shown evidence of deterioration of credit quality since origination and, therefore, it was deemed unlikely that all contractually required payments would be collected upon the merger date. We consider factors such as payment history, collateral values and accrual status when determining whether there was evidence of deterioration at the merger date. As of March 31, 2025 and December 31, 2024, the carrying amount of PCD loans was $288.6 million and $331.4 million, respectively.
Current wording
Purchased credit deteriorated (“PCD”) loans are loans that we acquired that have shown evidence of deterioration of credit quality since origination and, therefore, it was deemed unlikely that all contractually required payments would be collected upon the merger date. We consider factors such as payment history, collateral values and accrual status when determining whether there was evidence of deterioration at the merger date. As of June 30, 2025 and December 31, 2024, the carrying amount of PCD loans was $196.7 million and $331.4 million, respectively.
Previous wording
Potential Problem Loans. In the normal course of business, we become aware of possible credit problems in which borrowers exhibit the potential to be unable to comply in the future with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as NPLs. These loans are neither delinquent nor on non-accrual status. Our potential problem loans, or loans with potential weaknesses that were not included in the non-accrual loans or in the loans 90 or more past due categories, increased by $39.3 million, or 9.5%, to $451.3 million at March 31, 2025 from $412.0 million at December 31, 2024. These loans as a percentage of total loans increased to 2.5% at March 31, 2025 from 2.3% at December 31, 2024. The increase in potential problem loans from December 31, 2024 to March 31, 2025 was primarily due to the downgrade of certain commercial real estate loans during the three months ended March 31, 2025.
Current wording
Potential Problem Loans. In the normal course of business, we become aware of possible credit problems in which borrowers exhibit the potential to be unable to comply in the future with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as NPLs. These loans are neither delinquent nor on non-accrual status. Our potential problem loans, or loans with potential weaknesses that were not included in the non-accrual loans or in the loans 90 or more past due categories, decreased by $23.1 million, or 5.6%, to $388.9 million at June 30, 2025 from $412.0 million at December 31, 2024. These loans as a percentage of total loans decreased to 2.1% at June 30, 2025 from 2.3% at December 31, 2024. The decrease in potential problem loans from December 31, 2024 to June 30, 2025 was primarily due to the payoff of a commercial real estate loan during the six months ended June 30, 2025.
Previous wording
Commercial Real Estate Office Exposure. Our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, and mixed-use properties where rental income is primarily from office space) totaled $1.0 billion as of both March 31, 2025 and December 31, 2024. As of March 31, 2025, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 92.0% of the total recorded investment balance of office-related CRE loans are located, and approximately 21.6% of the total recorded investment balance of office-related CRE loans are located in the City of Boston.
Current wording
Commercial Real Estate Office Exposure. Our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, mixed-use, and laboratory/life sciences office properties where rental income is primarily from office space) totaled $1.0 billion as of both June 30, 2025 and December 31, 2024. As of June 30, 2025, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 91.7% of the total recorded investment balance of office-related CRE loans are located, and approximately 20.7% of the total recorded investment balance of office-related CRE loans are located in the City of Boston.
Previous wording
Given prevailing market conditions such as reduced occupancy as a result of the increase in hybrid and fully remote work arrangements post-COVID and lower commercial real estate valuations, we are carefully monitoring these loans for signs of deterioration in credit quality. Such monitoring includes incremental risk management strategies undertaken by management including monthly internal CRE office exposure portfolio reporting, more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis such as maturity risk analysis and rent rollover risk analysis. As of March 31, 2025, seven of these loans, which had a total recorded investment balance of $42.8 million, were on non-accrual status. As of December 31, 2024, twelve of these loans were on non-accrual status and had a total recorded investment balance of $87.0 million.
Current wording
Given prevailing market conditions such as reduced occupancy as a result of the increase in hybrid and fully remote work arrangements post-COVID and lower commercial real estate valuations, we are carefully monitoring these loans for signs of deterioration in credit quality. Such monitoring includes incremental risk management strategies undertaken by management including monthly internal CRE office exposure portfolio reporting, more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis such as maturity risk analysis and rent rollover risk analysis. As of June 30, 2025, one of these loans, which had an aggregate recorded investment balance of $10.1 million, was on non-accrual status. As of December 31, 2024, twelve of these loans were on non-accrual status and had an aggregate recorded investment balance of $87.0 million.
Previous wording
The allowance for loan losses decreased by $4.6 million, or 2.0%, to $224.3 million, or 1.25% of total loans, at March 31, 2025 from $229.0 million, or 1.29% of total loans at December 31, 2024. The decrease in the allowance for loan losses for the three months ended March 31, 2025 was primarily due to a reduction in specific reserves that was driven by the transfer of a non-performing commercial real estate loan to held-for-sale classification and the sale of a non-performing commercial and industrial loan, both of which had previously been reserved for on a specific reserve basis.
Current wording
The allowance for loan losses increased by $3.2 million, or 1.4%, to $232.1 million, or 1.27% of total loans, at June 30, 2025 from $229.0 million, or 1.29% of total loans at December 31, 2024. The increase in the allowance for loan losses for the six months ended June 30, 2025 was primarily due to an increase in commercial and industrial reserve rates and an increase in commercial loan balances, partially offset by a reduction in specific reserves that was driven by the sales of certain non-performing commercial real estate loans and the sale of a non-performing commercial and industrial loan, which had previously been reserved for on a specific reserve basis.
Previous wording
In the ordinary course of business, we enter into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Our reserve for unfunded lending commitments remained consistent at $13.0 million at March 31, 2025 compared to $13.1 million at December 31, 2024.
Current wording
In the ordinary course of business, we enter into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Our reserve for unfunded lending commitments remained consistent at $12.9 million at June 30, 2025 compared to $13.1 million at December 31, 2024.
Showing the first 40 of 72 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
•Commercial real estate: Loans in this category include mortgage loans and lines of credit on commercial real estate, both investment and owner occupied. Property types financed include office, industrial, multi-family, affordable housing, retail, hotel, and other type properties. As of June 30, 2025 and December 31, 2024, we had total commercial real estate loans of $7.2 billion and $7.0 billion, respectively, representing 39.5% and
Current report — wording carried from elsewhere
•Interest income on securities and other short-term investments increased by $8.0 million, or 11.8%, to $75.5 million during the six months ended June 30, 2025 from $67.5 million during the six months ended June 30, 2024. The increase was primarily due to an increase in our combined yield on our securities and other short- term investments, which increased 72 basis points during the six months ended June 30, 2025 in comparison to the six months ended June 30, 2024 due to sales of AFS securities and the purchase of new securities with higher yields. Partially offsetting this increase was a decrease in the average balance of our securities and other short-term investments during the six months ended June 30, 2025, which resulted from maturities and principal paydowns of AFS and HTM securities.
Current report — wording carried from elsewhere
(7)Represents net income divided by average equity.
Current report — wording carried from elsewhere
(1)Non-accrual loans are included in loans.
Current report — wording carried from elsewhere
(2)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
Current report — wording carried from elsewhere
(3)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Current report — wording carried from elsewhere
(4)Net interest margin - FTE represents fully-taxable equivalent net interest income divided by average total interest-earning assets. Refer to the earlier “Non-GAAP Financial Measures” section within this Item 2 for additional information.
Current report — wording carried from elsewhere
(5)Presented on an annualized basis.
Current report — wording carried from elsewhere
1.8%, with strong continued growth in 2026. Use of the upside scenario would have resulted in an incremental decrease in the allowance for loan losses of approximately $8.4 million as of June 30, 2025.
Current report — wording carried from elsewhere
•Investment advisory fees increased due to an increase in our assets under management, which increased due to our merger with Cambridge through which we acquired $5.0 billion in assets held in a fiduciary, custodial or agency capacity for customers.
Current report — wording carried from elsewhere
•Salaries and employee benefits increased primarily due to an increase in salaries and wages expense, an increase in incentive compensation, and an increase in benefit expense related to our defined contribution supplemental executive retirement plan (“DC SERP”).
Current report — wording carried from elsewhere
◦Salaries and wages expense increased $19.3 million primarily due to an increase in the number of employees as a result of our merger with Cambridge in addition to regular employee wage increases.
Current report — wording carried from elsewhere
◦Incentives increased $6.2 million primarily due to an increase in the number employees participating in our incentive compensation plans which was primarily the result of our merger with Cambridge.
Current report — wording carried from elsewhere
•Amortization of intangible assets increased primarily as a result of an increase in intangible asset balances subject to amortization resulting from our merger with Cambridge which led to a corresponding increase in amortization expense.