Banker & Tradesman file photo
In the last full quarter before its expected merger with Rockland Trust Co., East Boston Savings Bank saw its earnings increase 10 percent over the same quarter last year.
East Boston Savings Bank had third quarter net income of $18.3 million, or $0.36 per diluted share, compared to $16.5 million, or $0.32 per diluted share, in the second quarter and $16.7 million, or $0.33 per diluted share, in the third quarter of 2020.
For the nine months ending Sept. 30, net income was $59.2 million, or $1.17 per diluted share, an increase of 26 percent compared to the same period last year, when net income was $46.9 million, or $0.93 per diluted share.
The bank did see its net interest income decline in the third quarter to $46 million, a decrease of $2.8 million, or 5.7 percent, from the third quarter of 2020. The net interest margin was 3.05 percent compared to 3.13 percent in the third quarter of 2020.
The bank had the same net interest margin from January through September of 2021 as it did during the first nine months of 2020, 3.07 percent. Net interest income increased $935,000 year-to-date, or 0.7 percent, to $142.2 million compared to $141.3 million for the nine months ending Sept. 30, 2020.
The bank saw its total interest and dividend income decrease year-over-year by $9 million, or 14.6 percent, to $52.6 million in the third quarter. The bank said in its earnings statement that the lower income was primarily due to a 12.8 percent decrease in average loan balances.
The bank’s total interest expenses did decrease year-over-year by $6.2 million, or 48.6 percent, to $6.6 million in the third quarter. Interest expenses on deposits declined primarily due to a decrease in the cost of average total deposits to 0.25 percent in the third quarter compared to 0.72 percent for the third quarter last year, the bank said.
East Boston Savings Bank’s total assets were $6.1 billion on Sept. 30, down 7.4 percent from $6.62 billion at the end of 2020. Net loans were $4.85 billion in the third quarter, down 10.9 percent from Dec. 31. The bank said it did have $701.1 million in loan originations during the first nine months of 2021.
Total deposits were $4.69 billion at the end of the third quarter, down $388 million, or 7.6 percent, from $5.08 billion at the end of 2020. Core deposits, which exclude certificates of deposit, decreased $50.3 million, or 1.3 percent, to $3.81 billion, or 81.2 percent of total deposits, compared to 76 percent at the end of 2020. The bank said the decrease in core deposits included the payoff of $175.6 million in brokered interest-bearing demand deposits.
Rockland Trust CEO Christopher Oddleifson said during the bank’s third quarter conference call on Friday that the banks are on target to complete the merger in mid-November. The deal as of last week was still awaiting approval from the Massachusetts Division of Banks.
