Banker & Tradesman file photo
Eastern Bank saw record earnings in the first quarter, its first full quarter since going public in October, and remains on target for its largest bank acquisition later this year.
In a conference call Friday to discuss first quarter earnings, CEO Bob Rivers said Eastern Bank had the highest quarterly earnings in the bank’s history.
Eastern had first quarter net income of $47.7 million, or $0.28 per share, compared to a net loss of $44.1 million, or $0.26 per share, in the fourth quarter. The bank’s net loss in the fourth quarter reflected its contribution to the Eastern Bank Charitable Foundation, a donation planned as part of its conversion from a mutual bank.
Some of the increased income to activity was specific to the first quarter, including seasonally high insurance revenues, the bank said in its earnings statement. Eastern’s operating net income for the first quarter was $46.5 million, or $0.27 per share, compared to $31.6 million, or $0.18 per share, in the fourth quarter of 2020.
Eastern’s total assets were $16.7 billion in the first quarter, an increase of $0.8 billion or 5 percent from Dec. 31. Total deposits were $13 billion in the first quarter, up 7 percent from the fourth quarter.
Total loans were $9.9 billion, an increase of $186 million, or 2 percent, over the fourth quarter, with new originations, including $452.6 million in Paycheck Protection Program loans, outpacing PPP forgiveness and other loan paydowns, the bank said in the statement.
Jim Fitzgerald, Eastern Bank’s chief administrative officer, chief financial officer and treasurer, said during the conference call that Eastern has started to see improvements in the level of lending activity, with opportunities totaling $100 million currently in the pipeline.
Rivers during the call said that Eastern Bank has targeted November for closing its acquisition of Century Bank. He said Eastern has a “strong sense of urgency” to build its position in the market.
“In the months preceding our announcement of the Century acquisition and since, we continue to see transactions indicating a new wave of consolidation in our industry that has been driven by a similar rationale and a recognition that investments in technology and talent will ultimately determine long-term sustainability and relevance,” Rivers said.
Eastern Bank remains open to opportunities for more acquisitions but would not attempt another deal while working on the current transaction with Century Bank, Rivers said, adding that the $642 million deal was four times larger any deal Eastern had done in the past.
“Certainly we’d be open to discussing other potential opportunities if they were to come along, but first and foremost we’re very focused on Century,” Rivers said. “It’s a large deal for us relative to size. We want to make sure we execute it well.”
Rivers said future opportunities would be of a size similar to the Century deal and within the bank’s market area.
