Banker & Tradesman file photo

Eastern Bank has further reduced the loans in its portfolio subject to COVID-19 modifications over the past two months, according to an SEC 8-K report issued today.

COVID-related loan modifications were down to 4.1 percent of Eastern Bank’s portfolio on Nov. 30 compared to 7.1 percent on Sept. 30. On June 30, 9.5 percent of the portfolio had COVID-related modifications. Eastern became a stock bank in mid-October.

Compared to some other banks, Eastern Bank had a higher percentage of loans remaining in COVID modifications on Sept. 30. Berkshire Bank had 5 percent of its portfolio receiving modifications, and Rockland Trust 6.2 percent had COVID-related modifications on Sept. 30.

Overall, 11.4 percent of Eastern’s loan portfolio, about $1.1 billion, is in industries considered at high risk due to the pandemic, the bank said.

Like at other banks, hotels, restaurants and retail are the industries receiving the most modifications at Eastern.

While less than 2 percent of Eastern Bank’s loan portfolio is in hotels, this sector has the highest loan balance in modification at 25 percent. Restaurants make up 2 percent of Eastern’s loan balance, with 13 percent receiving modifications as of Nov. 30. The retail industry, which makes up 5 percent of Eastern’s portfolio, had 9.4 percent in modifications.

The bank said most of its modifications were for six-month terms. Eastern also said that it believed it had “a well-diversified and granular loan portfolio.”