Eastern Bankshares, Inc. Files 2023 Annual Report on Form 10-K

Ticker: EBC · Form: 10-K · Filed: Feb 26, 2024 · CIK: 1810546

Eastern Bankshares, Inc. 10-K Filing Summary
FieldDetail
CompanyEastern Bankshares, Inc. (EBC)
Form Type10-K
Filed DateFeb 26, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$12, $0.01, $21.1 b, $14.0 b, $17.6 billion
Sentimentneutral

Sentiment: neutral

Topics: 10-K, Annual Report, Financials, Eastern Bankshares, Banking

TL;DR

<b>Eastern Bankshares, Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

Eastern Bankshares, Inc. (EBC) filed a Annual Report (10-K) with the SEC on February 26, 2024. Eastern Bankshares, Inc. filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Massachusetts (MA) and its fiscal year ends on December 31. Eastern Bankshares, Inc. is classified under SIC code 6035 (Savings Institution, Federally Chartered). The filing includes financial data and business operations for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking Eastern Bankshares, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Eastern Bankshares' financial performance, strategic initiatives, and risk factors for the 2023 fiscal year, crucial for investors to assess the company's health and future prospects. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's asset and liability structure, revenue streams, and overall profitability in the current economic environment.

Risk Assessment

Risk Level: medium — Eastern Bankshares, Inc. shows moderate risk based on this filing. The company operates in the savings institution sector, which is subject to significant regulatory oversight and interest rate fluctuations, posing medium-term risks to profitability and asset valuation.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Eastern Bankshares' exposure to interest rate risk and its strategies for managing its loan portfolio.

Key Numbers

  • 2023-12-31 — Fiscal Year End (Conformed period of report)
  • 2024-02-26 — Filing Date (Filed as of date)
  • 0001810546 — Central Index Key (Filer's Central Index Key)
  • 6035 — SIC Code (Standard Industrial Classification)

Key Players & Entities

  • Eastern Bankshares, Inc. (company) — Filer name and company conformed name
  • 2023-12-31 (date) — Conformed period of report
  • 2024-02-26 (date) — Filed as of date
  • 0001810546 (company) — Central Index Key
  • 6035 (industry) — Standard Industrial Classification
  • MA (location) — State of incorporation
  • 265 FRANKLIN STREET (address) — Business and mail address street
  • BOSTON (location) — Business and mail address city

FAQ

When did Eastern Bankshares, Inc. file this 10-K?

Eastern Bankshares, Inc. filed this Annual Report (10-K) with the SEC on February 26, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Eastern Bankshares, Inc. (EBC).

Where can I read the original 10-K filing from Eastern Bankshares, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Eastern Bankshares, Inc..

What are the key takeaways from Eastern Bankshares, Inc.'s 10-K?

Eastern Bankshares, Inc. filed this 10-K on February 26, 2024. Key takeaways: Eastern Bankshares, Inc. filed its 2023 Form 10-K on February 26, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company is incorporated in Massachusetts (MA) and its fiscal year ends on December 31..

Is Eastern Bankshares, Inc. a risky investment based on this filing?

Based on this 10-K, Eastern Bankshares, Inc. presents a moderate-risk profile. The company operates in the savings institution sector, which is subject to significant regulatory oversight and interest rate fluctuations, posing medium-term risks to profitability and asset valuation.

What should investors do after reading Eastern Bankshares, Inc.'s 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Eastern Bankshares' exposure to interest rate risk and its strategies for managing its loan portfolio. The overall sentiment from this filing is neutral.

How does Eastern Bankshares, Inc. compare to its industry peers?

Eastern Bankshares, Inc. operates as a savings institution, a sector characterized by its role in deposit-taking and lending, and is subject to the financial industry's regulatory landscape.

Are there regulatory concerns for Eastern Bankshares, Inc.?

As a federally chartered savings institution, Eastern Bankshares is subject to regulations from federal banking agencies, impacting its capital requirements, lending practices, and operational compliance.

Industry Context

Eastern Bankshares, Inc. operates as a savings institution, a sector characterized by its role in deposit-taking and lending, and is subject to the financial industry's regulatory landscape.

Regulatory Implications

As a federally chartered savings institution, Eastern Bankshares is subject to regulations from federal banking agencies, impacting its capital requirements, lending practices, and operational compliance.

What Investors Should Do

  1. Review the full 10-K filing for detailed financial statements, including balance sheets, income statements, and cash flow statements.
  2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and strategic outlook.
  3. Examine the Risk Factors section to understand potential challenges and uncertainties facing Eastern Bankshares.

Key Dates

  • 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
  • 2024-02-26: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year 2023, providing a comprehensive update compared to previous filings which would include quarterly reports (10-Q) and potentially other material event filings.

Filing Stats: 4,408 words · 18 min read · ~15 pages · Grade level 14.2 · Accepted 2024-02-26 17:08:10

Key Financial Figures

  • $12 — last sale price as of June 30, 2023 of $12.27, as reported by the Nasdaq Global Se
  • $0.01 — he Registrant's common stock, par value $0.01 per share, were issued and outstanding
  • $21.1 b — 23, we had total consolidated assets of $21.1 billion, total gross loans of $14.0 billi
  • $14.0 b — of $21.1 billion, total gross loans of $14.0 billion, total deposits of $17.6 billion
  • $17.6 billion — ans of $14.0 billion, total deposits of $17.6 billion and total shareholders' equity of $3.0
  • $3.0 billion — llion and total shareholders' equity of $3.0 billion. We are subject to comprehensive regula
  • $95,000 — cester–Providence CSA was approximately $95,000 compared to $75,000 for the United Stat
  • $75,000 — A was approximately $95,000 compared to $75,000 for the United States as a whole. The e
  • $401.7 million — ide of our traditional lending area was $401.7 million. Beginning in the third quarter of 202
  • $412.2 million — uarter of 2023, we purchased a total of $412.2 million of residential real estate loans. As of
  • $355.9 million — estate loans. As of December 31, 2023, $355.9 million of those acquired loans were outside of
  • $10 million — nd institutions with annual revenues of $10 million to $500 million and strive to serve as
  • $500 million — with annual revenues of $10 million to $500 million and strive to serve as the lead bank fo
  • $100 million — to extend credit aggregating more than $100 million or more at origination and shared by th
  • $3.0 b — otal commercial and industrial loans of $3.0 billion, representing 21.8% of our total

Filing Documents

Risk Factors

Item 1A. Risk Factors 27

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 48

Cybersecurity

Item 1C. Cybersecurity 48

Properties

Item 2. Properties 49

Legal Proceedings

Item 3. Legal Proceedings 49

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 49 PART II

Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 50

[Reserved]

Item 6. [Reserved] 51

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 52

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 97

Financial Statements

Item 8. Financial Statements 98 Consolidated Balance Sheets 101 Consolidated Statements of Income 102 Consolidated Statements of Comprehensive Income (Loss) 103 Consolidated Statements of Changes in Shareholders' Equity 104 Consolidated Statements of Cash Flows 105

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 107

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 189

Controls and Procedures

Item 9A. Controls and Procedures 189

Other Information

Item 9B. Other Information 192 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 193

Executive Compensation

Item 11. Executive Compensation 193

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 193 Item13. Certain Relationships and Related Transactions, and Director Independence 193

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 194 PART IV. Item15. Exhibits, Financial Statement Schedules 195

Form 10–K Summary

Item 16. Form 10–K Summary 197

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS When we use the terms "we", "us", "our," and the "Company," we mean Eastern Bankshares, Inc., a Massachusetts corporation, and its consolidated subsidiaries, taken as a whole, unless the context otherwise indicates. Certain statements contained in this Annual Report on Form 10-K that are not historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, factors: changes in regional, national or international macroeconomic conditions, including changes in inflation, recessionary pressures or interest rates in the United States; the possibility that future credit losses, loan defaults and charge-off rates are higher than expected due to changes in economic assumptions or adverse economic developments; general business and economic conditions on a national basis and in the local markets in which we operate, including those impacting credit quality; turbulence in the capital and debt markets and within the banking industry; decreases in the value of securities and other assets; decreases in deposit levels necessitating increased borrowing to fund loans,

BUSINESS

ITEM 1. BUSINESS General Corporate Overview Eastern Bankshares, Inc., a Massachusetts corporation, which we sometimes refer to as the "Company," is a bank holding company headquartered in Boston, Massachusetts that was incorporated under Massachusetts law in 2020. We are the sole shareholder of Eastern Bank, which we sometimes refer to as the "Bank," a Massachusetts-chartered bank founded in 1818. Through the Bank, we provide a variety of banking and trust and investment services. As of December 31, 2022, we had two reportable business segments: banking and insurance agency, which we conducted under the name Eastern Insurance Group LLC ("Eastern Insurance Group"). In the third quarter of 2023, we announced the sale of substantially all of the assets and transfer of substantially all of the liabilities of our insurance agency business. We completed the sale on October 31, 2023. Accordingly, as of December 31, 2023, we had one reportable segment: our banking business. As of December 31, 2023, we had total consolidated assets of $21.1 billion, total gross loans of $14.0 billion, total deposits of $17.6 billion and total shareholders' equity of $3.0 billion. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the Federal Deposit Insurance Corporation ("FDIC"), the Federal Reserve Board and the Consumer Financial Protection Bureau. Our diversified products and services include lending, deposit, and wealth management. Deposits obtained through the branch banking network have traditionally been the principal source of funds for use in lending and for other general business purposes. We offer a range of demand deposit accounts, interest checking accounts, money market accounts, savings accounts and time certificates of deposit accounts. Our lending focuses on the following loan categories: commercial and industrial, including our Asset Based Lending Portfolio, commercial real estate, commercial construction, small busine

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