Business Wire | Apr 29, 2021 04:17PM EDT

Eastern Bankshares, Inc. Reports First Quarter 2021 Financial Results

Apr. 29, 2021

BOSTON--(BUSINESS WIRE)--Apr. 29, 2021--Eastern Bankshares, Inc. (the "Company," or together with its affiliates and subsidiaries, "Eastern") (NASDAQ Global Select Market: EBC), the stock holding company of Eastern Bank, today announced 2021 first quarter financial results. Net income for the first quarter of 2021 was $47.7 million, or $0.28 per share, compared to a net loss of $44.1 million, or $0.26 per share, reported for the fourth quarter of 2020. Operating net income* for the first quarter of 2021 was $46.5 million, or $0.27 per share, compared to $31.6 million, or $0.18 per share, reported for the fourth quarter of 2020.

The quarter over quarter increase in operating net income* of $14.9 million is attributed to a combination of seasonally high insurance revenues which increased $5.7 million, notably higher interest rate swap revenue driven by an increase in the fair value of these transactions which was due to higher longer term interest rates, higher salary and wage expense deferrals in part due to Paycheck Protection Program ("PPP") lending activity, and lower incentive compensation expense. In addition to these items, which are expected to be specific to the first quarter, Eastern continued to make progress on improving its overall profitability and efficiency.

The release of the Company's quarterly financial results follows its announcement of the pending merger with Century Bancorp, Inc. ("Century"). Eastern expects the merger will create a combined franchise with approximately $22 billion in total assets and solidify Eastern's leading position in Boston and eastern Massachusetts. The merger is expected to close in the middle of the fourth quarter of 2021, subject to certain conditions, including the receipt of required regulatory approvals, shareholder approval, and other standard conditions. The Company also recently announced a 33% increase to its quarterly cash dividend to $0.08 per share.

"We're off to a tremendous start in 2021 and I'd like to thank all of our employees for their contributions," said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank. "Our financial results for the first quarter show strong organic growth, sound asset quality, and reflect our continued commitment to be a source of financial support to businesses in need during the pandemic with the origination of $453 million in PPP loans in the first quarter. As we look to the future, our recently announced agreement to merge with Century is the next step in our journey towards expanding our presence in the communities we serve, and we look forward to welcoming Century's customers."

HIGHLIGHTS FOR THE FIRST QUARTER OF 2021

* Net income was $47.7 million, or $0.28 per share, and operating net income* was $46.5 million, or $0.27 per share. * Total revenue was $155.3 million and total operating revenue* was $153.6 million driven by seasonally high insurance revenues of $28.1 million. * Release of loan loss reserves of $0.6 million, with $178.4 million in remaining COVID-19 modified loans. * Originated $452.6 million in new PPP loans to approximately 4,700 borrowers. * Book value and tangible book value per share* were $18.14 and $16.12, respectively.

BALANCE SHEET

Total assets were $16.7 billion at March 31, 2021, representing an increase of $0.8 billion or 5% from December 31, 2020.

* Available for sale securities increased $0.8 billion, or 25%, on a consecutive quarter basis, to $4.0 billion, as excess liquidity was deployed into U.S. Agency securities. Cash and equivalents declined $0.2 billion to $1.9 billion. * Total loans were $9.9 billion, representing an increase of $186.0 million or 2% from the prior quarter as originations, including $452.6 million in new PPP loans, outpaced PPP forgiveness and other loan paydowns. Total PPP loans were $1.2 billion at March 31, 2021. * Deposits totaled $13.0 billion, representing an increase of $0.8 billion, or 7%, from December 31, 2020. * Shareholders' equity was $3.4 billion, representing a decrease of $41.0 million or 1% from the prior quarter. The increase in retained earnings of $37.3 million was more than offset by the after-tax market value decline of the available for sale investment portfolio, which drove the decrease in accumulated other comprehensive income of $80.4 million. The decline in market value can be attributed to the increase in medium and long-term rates during the quarter. * At March 31, 2021, book value per share was $18.14 and tangible book value per share* was $16.12.

NET INTEREST INCOME

Net interest income was $100.1 million for the first quarter, compared to $103.6 million in the prior quarter, representing a decrease of $3.5 million on a consecutive quarter basis. There were two fewer days in the first quarter as compared to the prior quarter. Included in net interest income was $8.3 million and $6.1 million of Small Business Administration ("SBA") PPP fee accretion net of deferred cost amortization in the first quarter and prior quarter, respectively. Also included in prior quarter net interest income was a favorable nonrecurring item of $3.8 million. The increase in PPP fee recognition on a consecutive quarter basis was attributable primarily to an increase in PPP loan forgiveness rates in the first quarter. Between December 31, 2020 and March 31, 2021, $240.7 million in PPP loans were forgiven through the SBA or otherwise paid down.

The net interest margin on a fully tax equivalent ("FTE") basis* was 2.71% for the first quarter, representing a 13 basis points decrease from the prior quarter, primarily due to lower earning asset yields driven by the low rate environment coupled with higher average balances.

Please refer to Appendix E for a four-quarter trend analysis of the adjusted core margin*.

NONINTEREST INCOME

Noninterest income was $55.2 million for the first quarter, compared to $49.6 million for the prior quarter, representing an increase of $5.6 million.

* Insurance commissions increased $5.7 million to $28.1 million in the first quarter, compared to $22.4 million in the prior quarter, driven by seasonality. Compared to the prior year quarter, insurance commissions increased $0.7 million, or 2%. * Trust and investment advisory fees increased $0.2 million on a consecutive quarter basis to $5.7 million due to higher equity values. * Loan-level interest rate swap revenue was $5.4 million in the first quarter, compared to $2.5 million in the prior quarter, representing an increase of $2.9 million that was primarily driven by a $3.0 million increase in the fair value of such interest rate swap transactions due to higher market interest rates. * Income on securities held in rabbi trust accounts was $1.8 million in the first quarter compared to $5.5 million in the prior quarter, a decrease of $3.7 million primarily due to lower equity market gains in the first quarter of 2021 as compared to the fourth quarter of 2020. * Mortgage origination activity was lower in the first quarter as compared to the prior quarter with the gain on sale of loans totaling $1.5 million, down $1.9 million from the prior quarter. This was partially offset by a $1.5 million increase in the gain/loss on commitments to sell mortgage loans which is recorded in other income. * The gain on sale of available for sale securities was $1.2 million in the first quarter, representing an increase of $1.2 million from the prior quarter, due to portfolio repositioning.

Please refer to Appendix B for a reconciliation of operating revenues and expenses*.

NONINTEREST EXPENSE

Noninterest expense was $94.0 million for the first quarter representing a decrease of $105.1 million, or 53%, from the prior quarter of $199.2 million. Prior quarter noninterest expense included costs associated with the Company's mutual-to-stock conversion and initial public offering ("IPO"), including a $91.3 million donation of stock to the Eastern Bank Charitable Foundation ("EBCF"). Excluding this and other non-operating items for the respective quarters, noninterest expense on an operating basis* for the first quarter of 2021 was $92.5 million, compared to $101.8 million in the prior quarter.

* Salaries and benefits were $64.0 million in the first quarter, representing a decrease of $6.3 million from the prior quarter. The decline was driven by a reduction in incentive compensation expense of $3.9 million that was in part due to the decline in total shareholders' equity attributable to higher market interest rates, a decrease in the defined contribution supplemental executive retirement plan ("DC SERP") expense of $1.9 million associated with the lower market value increase in assets held in rabbi trust accounts, and higher expense deferrals of $1.8 million due in part to PPP lending activity. Partially offsetting these declines was an increase in payroll taxes of $2.3 million quarter over quarter. * Other noninterest expense declined from $6.2 million in the prior quarter to $0.5 million in the first quarter, a decline of $5.7 million. The Company recorded impairment charges on tax credit investments of $3.2 million in the prior quarter, whereas no impairment was recorded in the first quarter. Included in other noninterest expense are components of the Company's pension expense which were $2.3 million lower in the first quarter compared to the prior quarter. This was partially offset by an increase in pension service cost of $0.8 million which is included in salary and benefit expense. * Professional services expenses were $4.1 million in the first quarter, representing a decrease of $1.2 million from the prior quarter. * Marketing expenses were $1.7 million in the first quarter, representing a decrease of $1.1 million from the prior quarter.

Please refer to Appendix B for a reconciliation of operating revenues and expenses*.

ASSET QUALITY

The allowance for credit losses was $111.1 million at March 31, 2021, or 1.12% of total loans, compared to $113.0 million or 1.16% of total loans at December 31, 2020. The Company released loan loss reserves totaling $0.6 million in the first quarter, compared to a provision for credit losses of $0.9 million in the prior quarter. The Company followed the incurred loss allowance GAAP accounting model at March 31, 2021 and all preceding periods.

Non-performing loans totaled $44.0 million at March 31, 2021 compared to $43.3 million at the end of the prior quarter. During the first quarter of 2021, the Company recorded total net charge-offs of $1.4 million, or 0.06% of average total loans on an annualized basis compared to $3.3 million and 0.13% in the prior quarter, respectively.

At March 31, 2021, approximately $178.4 million in COVID-19 modified loans remained under modified payment terms, down from $332.7 million at December 31, 2020. Of the $178.4 million in COVID-19 modified loans at March 31, 2021, $86.4 million were loans that have been modified at least twice.

Please refer to Appendix F and Appendix G for detail on the Company's lending exposure to industries which management believes are most likely to experience adverse effects of the COVID-19 pandemic, as well as a detailed breakout on COVID-19 related loan modifications.

CONFERENCE CALL INFORMATION

A conference call and webcast covering Eastern's first quarter 2021 earnings will be held on Friday, April 30, 2021 at 9:00 a.m. Eastern Time. To join by telephone, participants can call the toll-free dial-in number (833) 233-4460 from within the U.S. or (647) 689-4543 if outside the U.S. and reference conference ID 9757837. The conference call will be simultaneously webcast. Participants may join the webcast on the Company's Investor Relations website at investor.easternbank.com. A replay of the webcast will be made available on demand on this site.

ABOUT EASTERN BANKSHARES, INC.

Eastern Bankshares, Inc. is the stock holding company for Eastern Bank. Founded in 1818, Boston-based Eastern Bank has more than 110 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of March 31, 2021, Eastern Bank had approximately $17 billion in total assets. Eastern provides banking, investment and insurance products and services for consumers and businesses of all sizes, including through its Eastern Wealth Management division and its Eastern Insurance Group LLC subsidiary. Eastern takes pride in its outspoken advocacy and community support that includes $240 million in charitable giving since 1994. An inclusive company, Eastern employs approximately 1,900 deeply committed professionals who value relationships with their customers, colleagues, and communities. For investor information, visit investor.easternbank.com.

NON-GAAP FINANCIAL MEASURES

*Denotes a non-GAAP financial measure used in this press release.

A non-GAAP financial measure is defined as a numerical measure of the Company's historical or future financial performance, financial position or cash flows that excludes (or includes) amounts, or is subject to adjustments that have the effect of excluding (or including) amounts that are included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") in the Company's statement of income, balance sheet or statement of cash flows (or equivalent statements).

The Company presents non-GAAP financial measures, which management uses to evaluate the Company's performance, and which exclude the effects of certain transactions that management believes are unrelated to its core business and are therefore not necessarily indicative of its current performance or financial position. Management believes excluding these items facilitates greater visibility for investors into the Company's core businesses as well as underlying trends that may, to some extent, be obscured by inclusion of such items in the corresponding GAAP financial measures.

There are items in the Company's financial statements that impact its financial results, but which management believes are unrelated to the Company's core business. Accordingly, the Company presents noninterest income on an operating basis, total operating revenue, noninterest expense on an operating basis, operating net income, operating earnings per share, operating return on average assets, operating return on average shareholders' equity, the operating efficiency ratio, and the ratio of noninterest income to total revenue on an operating basis. Each of these figures excludes the impact of such applicable items because management believes such exclusion can provide greater visibility into the Company's core business and underlying trends. Such items that management does not consider to be core to the Company's business include (i) income and expenses from investments held in rabbi trusts, (ii) gains and losses on sales of securities available for sale, net, (iii) gains and losses on the sale of other assets, (iv) rabbi trust employee benefits, (v) impairment charges on tax credit investments and associated tax credit benefits, (vi) expenses indirectly associated with the Company's IPO, (vii) other real estate owned ("OREO") gains, (viii) merger and acquisition expenses, and (ix) the stock donation to the EBCF in connection with the Company's mutual-to-stock conversion and IPO. The Company does not provide an outlook for its total noninterest expense because it contains expense components, such as expense associated with rabbi trust accounts, which is market-driven, over which the Company cannot exercise control. Accordingly a reconciliation of the Company's outlook for its noninterest expense on an operating basis to an outlook for total noninterest expense cannot be made available without unreasonable effort.

Management also presents the Company's core net interest margin which excludes the impact of items management determines as being one-time in nature or not indicative of its core operating results. Such items include the impact of excess liquidity in the form of excess cash volume, PPP loans originated in response to the COVID-19 pandemic, and material purchase accounting adjustments. Similarly, management presents certain asset quality metrics excluding PPP loans which it does not consider to be part of the Company's core portfolios. These metrics include the ratio of total nonperforming loans to total loans excluding PPP loans, the ratio of the allowance for loan losses to total loans excluding PPP loans, and the ratio of annualized net charge-offs to average total loans excluding PPP loans. The Company anticipates that the vast majority of its PPP loans outstanding at March 31, 2021 will be forgiven during 2021, and to the extent not forgiven, a PPP loan is intended to be 100% guaranteed by the SBA.

Management also presents tangible assets, tangible shareholders' equity, tangible book value per share, and the ratio of tangible shareholders' equity to tangible assets, each of which excludes the impact of goodwill and other intangible assets, as management believes these financial measures provide investors with the ability to further assess the Company's performance, identify trends in its core business and provide a comparison of its capital adequacy to other companies. The Company included the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.

These non-GAAP financial measures presented in this press release should not be considered an alternative or substitute for financial results or measures determined in accordance with GAAP or as an indication of the Company's cash flows from operating activities, a measure of its liquidity position or an indication of funds available for its cash needs. An item which management considers to be non-core and excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular period. In addition, management's methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other banking companies to calculate the same or similar performance measures, and accordingly, the Company's reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other banking companies. Please refer to Appendices A-E for reconciliations of the Company's GAAP financial measures to the non-GAAP financial measures in this press release.

FORWARD-LOOKING STATEMENTS

This press release contains "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. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. You can identify these statements from 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, by their nature, are subject to risks and uncertainties. There are many factors that could cause actual results to differ materially from expected results described in the forward-looking statements.

Certain factors that could cause actual results to differ materially from expected results include developments in the Company's market relating to the COVID-19 pandemic, including the severity and duration of the associated economic slowdown, adverse developments in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses, increased competitive pressures, changes in the interest rate environment, risks associated with its proposed merger with Century, including the possibility that revenue or expense synergies or the other expected benefits of the transaction may not materialize for the Company in the timeframe expected or at all, or may be more costly to achieve; that the transaction may not be timely completed, if at all; that prior to the completion of the transaction or thereafter, the Company's or Century's businesses may not perform as expected due to transaction-related uncertainty or other factors; that the Company is unable to successfully implement integration strategies; that required regulatory, shareholder or other approvals are not obtained or other closing conditions are not satisfied in a timely manner or at all; that the timing of completion of the proposed merger is dependent on various factors that cannot be predicted with precision at this point; reputational risks and the reaction of the companies' customers to the transaction; the inability to implement onboarding plans and other consequences associated with mergers; and diversion of management time on merger-related issues, as well as general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiary Eastern Bank are engaged. For further discussion of such factors, please see the Company's most recent Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC's website at www.sec.gov.

Further, given the ongoing and dynamic nature of the COVID-19 pandemic, it is difficult to predict what continued effects the COVID-19 pandemic will have on the Company's business and results of operations. The COVID-19 pandemic and the related local and national economic disruption may result in a continued decline in demand for the Company's products and services; increased levels of loan delinquencies, problem assets and foreclosures; an increase in the Company's allowance for loan losses; a decline in the value of loan collateral, including real estate; a greater decline in the yield on the Company's interest-earning assets than the decline in the cost of the Company's interest-bearing liabilities; and increased cybersecurity risks, as employees continue to work remotely. You should not place undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this press release. The Company does not undertake any obligation to update forward-looking statements.

EASTERN BANKSHARES, INC. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS

Certain information in this press release is presented as reviewed by the Company's management and includes information derived from the Company's Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of and for the three months ended

(Unaudited,dollars inthousands, Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020except pershareamounts)



Earnings data

Net interest $ 100,091 $ 103,608 $ 98,742 $ 98,755 $ 100,146 income

Noninterest 55,212 49,638 47,709 47,657 33,369 income

Total revenue 155,303 153,246 146,451 146,412 133,515

Noninterest 94,049 199,169 109,817 100,765 95,172 expense

Pre-tax,pre-provision 61,254 (45,923 ) 36,634 45,647 38,343 income (loss)

Provision for (580 ) 900 700 8,600 28,600 credit losses

Pre-tax 61,834 (46,823 ) 35,934 37,047 9,743 income (loss)

Net income 47,663 (44,062 ) 28,505 29,850 8,445 (loss)

Operating netincome 46,537 31,612 32,322 27,301 10,858 (non-GAAP)



Per-share data

Earnings(loss) per $ 0.28 $ (0.26 ) n.a. n.a. n.a.share

Operatingearnings per $ 0.27 $ 0.18 n.a. n.a. n.a.share(non-GAAP)

Book value $ 18.14 $ 18.36 n.a. n.a. n.a.per share

Tangible bookvalue per $ 16.12 $ 16.34 n.a. n.a. n.a.share(non-GAAP)



Profitability

Return on )average 1.19 % (1.11 % 0.80 % 0.88 % 0.29 %assets (1)

Operatingreturn onaverage 1.15 % 0.79 % 0.90 % 0.81 % 0.38 %assets(non-GAAP)(1)

Return onaverage 5.66 % (5.61 ) 6.65 % 7.11 % 2.08 %shareholders' %equity (1)

Operatingreturn onaverageshareholders' 5.53 % 4.02 % 7.54 % 6.51 % 2.67 %equity(non-GAAP)(1)

Net interestmargin (FTE) 2.71 % 2.84 % 3.04 % 3.23 % 3.80 %(1)

Cost of 0.03 % 0.03 % 0.06 % 0.11 % 0.23 %deposits (1)

Fee income 35.55 % 32.39 % 32.58 % 32.55 % 24.99 %ratio

Efficiency 60.56 % 129.97 % 74.99 % 68.82 % 71.28 %ratio

Operatingefficiency 60.22 % 68.33 % 69.95 % 68.90 % 69.54 %ratio(non-GAAP)



Balance Sheet(end of period)

Total assets $ 16,726,795 $ 15,964,190 $ 15,460,594 $ 13,996,523 $ 12,343,754

Total loans 9,916,475 9,730,525 9,944,241 10,014,338 9,087,103

Total 12,980,875 12,155,784 13,332,585 11,846,765 10,309,011 deposits

Total loans /total 76 % 80 % 75 % 85 % 88 %deposits

PPP loans $ 1,238,053 $ 1,026,117 $ 1,123,493 $ 1,100,181 $ -



Asset quality

Allowance forloan losses $ 111,080 $ 113,031 $ 115,432 $ 116,636 $ 109,138 ("ALLL")

ALLL / totalnonperforming 252.72 % 261.33 % 257.47 % 210.55 % 222.34 %loans("NPLs")

Total NPLs / 0.44 % 0.45 % 0.45 % 0.56 % 0.54 %total loans

Total NPLs /total loans(excl. PPP 0.51 % 0.50 % 0.51 % 0.62 % 0.54 %loans)(non-GAAP)

Netcharge-offs(NCOs) / 0.06 % 0.13 % 0.08 % 0.04 % 0.08 %average totalloans (1)

NCOs /average totalloans (excl. 0.06 % 0.15 % 0.09 % 0.05 % 0.08 %PPP loans)(non-GAAP)(1)

RemainingCOVID-19 loan $ 178,430 $ 332,682 $ 701,227 $ 945,995 $ - modifications(2)



Capital adequacy

Shareholders'equity / 20.25 % 21.47 % 11.08 % 12.10 % 13.47 %assets

Tangibleshareholders'equity / 18.42 % 19.58 % 8.87 % 9.67 % 10.74 %tangibleassets(non-GAAP)



(1) Presented on an annualized basis.

(2) See Appendix G: COVID-19 Related Loan Modifications



EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of

Mar 31, 2021 change from

(Unaudited, dollars in thousands)

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

Dec 31, 2020

Mar 31, 2020

ASSETS

? $

? %

? $

? %

Cash and due from banks

$

79,497

$

116,591

$

94,215

(37,094

)

(32

)%

(14,718

)

(16

)%

Short-term investments

1,780,835

1,937,479

672,234

(156,644

)

(8

)%

1,108,601

165

%

Cash and cash equivalents

1,860,332

2,054,070

766,449

(193,738

)

(9

)%

1,093,883

143

%

Securities held for trading

-

-

652

-

-

%

(652

)

(100

)%

Available for sale securities

3,986,253

3,183,861

1,549,927

802,392

25

%

2,436,326

157

%

Total securities

3,986,253

3,183,861

1,550,579

802,392

25

%

2,435,674

157

%

Loans held for sale

2,022

1,140

2,843

882

77

%

(821

)

(29

)%

Loans:

Commercial and industrial

1,986,366

1,995,016

1,771,122

(8,650

)

-

%

215,244

12

%

Commercial real estate

3,676,941

3,573,630

3,523,721

103,311

3

%

153,220

4

%

Commercial construction

249,416

305,708

293,135

(56,292

)

(18

)%

(43,719

)

(15

)%

Business banking

1,513,051

1,339,164

779,916

173,887

13

%

733,135

94

%

Total commercial loans

7,425,774

7,213,518

6,367,894

212,256

3

%

1,057,880

17

%

Residential real estate

1,406,510

1,370,957

1,420,003

35,553

3

%

(13,493

)

(1

)%

Consumer home equity

832,466

868,270

929,554

(35,804

)

(4

)%

(97,088

)

(10

)%

Other consumer

251,725

277,780

369,652

(26,055

)

(9

)%

(117,927

)

(32

)%

Total loans

9,916,475

9,730,525

9,087,103

185,950

2

%

829,372

9

%

Allowance for loan losses

(111,080

)

(113,031

)

(109,138

)

1,951

(2

)%

(1,942

)

2

%

Unamortized prem./disc. and def. fees

(32,673

)

(23,536

)

(6,360

)

(9,137

)

39

%

(26,313

)

414

%

Net loans

9,772,722

9,593,958

8,971,605

178,764

2

%

801,117

9

%

Federal Home Loan Bank stock, at cost

8,805

8,805

8,805

-

-

%

-

-

%

Premises and equipment

46,619

49,398

54,867

(2,779

)

(6

)%

(8,248

)

(15

)%

Bank-owned life insurance

79,110

78,561

78,170

549

1

%

940

1

%

Goodwill and other intangibles, net

376,002

376,534

377,033

(532

)

-

%

(1,031

)

-

%

Deferred income taxes, net

31,508

13,229

5,152

18,279

138

%

26,356

512

%

Prepaid expenses

150,453

148,680

87,960

1,773

1

%

62,493

71

%

Other assets

412,969

455,954

440,291

(42,985

)

(9

)%

(27,322

)

(6

)%

Total assets

16,726,795

15,964,190

12,343,754

762,605

5

%

4,383,041

36

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Demand

5,369,164

4,910,794

3,646,052

458,370

9

%

1,723,112

47

%

Interest checking accounts

2,482,731

2,380,497

2,318,609

102,234

4

%

164,122

7

%

Savings accounts

1,362,463

1,256,736

1,002,709

105,727

8

%

359,754

36

%

Money market investment

3,522,990

3,348,898

3,016,932

174,092

5

%

506,058

17

%

Certificates of deposit

243,527

258,859

324,709

(15,332

)

(6

)%

(81,182

)

(25

)%

Total deposits

12,980,875

12,155,784

10,309,011

825,091

7

%

2,671,864

26

%

Borrowed funds:

Federal Home Loan Bank advances

14,473

14,624

15,070

(151

)

(1

)%

(597

)

(4

)%

Escrow deposits of borrowers

14,878

13,425

16,357

1,453

11

%

(1,479

)

(9

)%

Total borrowed funds

29,351

28,049

31,427

1,302

5

%

(2,076

)

(7

)%

Other liabilities

329,524

352,305

340,582

(22,781

)

(6

)%

(11,058

)

(3

)%

Total liabilities

13,339,750

12,536,138

10,681,020

803,612

6

%

2,658,730

25

%

Shareholders' equity:

Common shares

1,868

1,868

-

-

-

%

1,868

-

%

Additional paid-in capital

1,854,895

1,854,068

-

827

-

%

1,854,895

-

%

Unallocated common shares held by the employee stock ownership plan ("ESOP")

(146,472

)

(147,725

)

-

1,253

(1

)%

(146,472

)

-

%

Retained earnings

1,702,946

1,665,607

1,651,314

37,339

2

%

51,632

3

%

Accumulated other comprehensive income (AOCI), net of tax

(26,192

)

54,234

11,420

(80,426

)

(148

)%

(37,612

)

(329

)%

Total shareholders' equity

3,387,045

3,428,052

1,662,734

(41,007

)

(1

)%

1,724,311

104

%

Total liabilities and shareholders' equity

16,726,795

15,964,190

12,343,754

762,605

5

%

4,383,041

36

%

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of Mar 31, 2021 change from

(Unaudited,dollars in Mar 31, 2021 Dec 31, 2020 Mar 31, 2020 Dec 31, 2020 Mar 31, 2020thousands)

ASSETS ? $ ? % ? $ ? %

Cash and due $ 79,497 $ 116,591 $ 94,215 (37,094 ) (32 ) (14,718 ) (16 )from banks % %

Short-term 1,780,835 1,937,479 672,234 (156,644 ) (8 ) 1,108,601 165 %investments %

Cash and cash 1,860,332 2,054,070 766,449 (193,738 ) (9 ) 1,093,883 143 %equivalents %

Securities )held for - - 652 - - % (652 ) (100 %trading

Available forsale 3,986,253 3,183,861 1,549,927 802,392 25 % 2,436,326 157 %securities

Total 3,986,253 3,183,861 1,550,579 802,392 25 % 2,435,674 157 %securities

Loans held 2,022 1,140 2,843 882 77 % (821 ) (29 )for sale %

Loans:

Commercialand 1,986,366 1,995,016 1,771,122 (8,650 ) - % 215,244 12 %industrial

Commercial 3,676,941 3,573,630 3,523,721 103,311 3 % 153,220 4 %real estate

Commercial 249,416 305,708 293,135 (56,292 ) (18 ) (43,719 ) (15 )construction % %

Business 1,513,051 1,339,164 779,916 173,887 13 % 733,135 94 %banking

Totalcommercial 7,425,774 7,213,518 6,367,894 212,256 3 % 1,057,880 17 %loans

Residential 1,406,510 1,370,957 1,420,003 35,553 3 % (13,493 ) (1 )real estate %

Consumer home 832,466 868,270 929,554 (35,804 ) (4 ) (97,088 ) (10 )equity % %

Other 251,725 277,780 369,652 (26,055 ) (9 ) (117,927 ) (32 )consumer % %

Total loans 9,916,475 9,730,525 9,087,103 185,950 2 % 829,372 9 %

Allowance for (111,080 ) (113,031 ) (109,138 ) 1,951 (2 ) (1,942 ) 2 %loan losses %

Unamortizedprem./disc. (32,673 ) (23,536 ) (6,360 ) (9,137 ) 39 % (26,313 ) 414 %and def. fees

Net loans 9,772,722 9,593,958 8,971,605 178,764 2 % 801,117 9 %

Federal HomeLoan Bank 8,805 8,805 8,805 - - % - - %stock, atcost

Premises and 46,619 49,398 54,867 (2,779 ) (6 ) (8,248 ) (15 )equipment % %

Bank-ownedlife 79,110 78,561 78,170 549 1 % 940 1 %insurance

Goodwill andother 376,002 376,534 377,033 (532 ) - % (1,031 ) - %intangibles,net

Deferredincome taxes, 31,508 13,229 5,152 18,279 138 % 26,356 512 %net

Prepaid 150,453 148,680 87,960 1,773 1 % 62,493 71 %expenses

Other assets 412,969 455,954 440,291 (42,985 ) (9 ) (27,322 ) (6 ) % %

Total assets 16,726,795 15,964,190 12,343,754 762,605 5 % 4,383,041 36 %

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Demand 5,369,164 4,910,794 3,646,052 458,370 9 % 1,723,112 47 %

Interestchecking 2,482,731 2,380,497 2,318,609 102,234 4 % 164,122 7 %accounts

Savings 1,362,463 1,256,736 1,002,709 105,727 8 % 359,754 36 %accounts

Money market 3,522,990 3,348,898 3,016,932 174,092 5 % 506,058 17 %investment

Certificates 243,527 258,859 324,709 (15,332 ) (6 ) (81,182 ) (25 )of deposit % %

Total 12,980,875 12,155,784 10,309,011 825,091 7 % 2,671,864 26 %deposits

Borrowed funds:

Federal Home ) )Loan Bank 14,473 14,624 15,070 (151 ) (1 % (597 ) (4 %advances

Escrow )deposits of 14,878 13,425 16,357 1,453 11 % (1,479 ) (9 %borrowers

Total )borrowed 29,351 28,049 31,427 1,302 5 % (2,076 ) (7 %funds

Other 329,524 352,305 340,582 (22,781 ) (6 ) (11,058 ) (3 )liabilities % %

Total 13,339,750 12,536,138 10,681,020 803,612 6 % 2,658,730 25 %liabilities

Shareholders' equity:

Common shares 1,868 1,868 - - - % 1,868 - %

Additionalpaid-in 1,854,895 1,854,068 - 827 - % 1,854,895 - %capital

Unallocatedcommon sharesheld by the )employee (146,472 ) (147,725 ) - 1,253 (1 % (146,472 ) - %stockownershipplan ("ESOP")

Retained 1,702,946 1,665,607 1,651,314 37,339 2 % 51,632 3 %earnings

Accumulatedothercomprehensive (26,192 ) 54,234 11,420 (80,426 ) (148 ) (37,612 ) (329 )income % %(AOCI), netof tax

Total )shareholders' 3,387,045 3,428,052 1,662,734 (41,007 ) (1 % 1,724,311 104 %equity

Totalliabilitiesand 16,726,795 15,964,190 12,343,754 762,605 5 % 4,383,041 36 %shareholders'equity

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

Three months ended

Three months ended Mar 31, 2021 change from three months ended

(Unaudited, dollars in thousands, except share data)

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

Dec 31, 2020

Mar 31, 2020

Interest and dividend income:

? $

? %

? $

? %

Interest and fees on loans

$

88,639

$

93,767

$

95,538

(5,128

)

(5

)%

(6,899

)

(7

)%

Taxable interest and dividends on available for sale securities

10,206

8,493

8,178

1,713

20

%

2,028

25

%

Non-taxable interest and dividends on available for sale securities

1,856

1,879

1,921

(23

)

(1

)%

(65

)

(3

)%

Interest on federal funds sold and other short-term investments

432

584

517

(152

)

(26

)%

(85

)

(16

)%

Interest and dividends on trading securities

-

-

5

-

-

%

(5

)

(100

)%

Total interest and dividend income

101,133

104,723

106,159

(3,590

)

(3

)%

(5,026

)

(5

)%

Interest expense:

Interest on deposits

1,002

1,070

5,414

(68

)

(6

)%

(4,412

)

(81

)%

Interest on borrowings

40

45

599

(5

)

(11

)%

(559

)

(93

)%

Total interest expense

1,042

1,115

6,013

(73

)

(7

)%

(4,971

)

(83

)%

Net interest income

100,091

103,608

100,146

(3,517

)

(3

)%

(55

)

-

%

(Release of) provision for allowance for loan losses

(580

)

900

28,600

(1,480

)

(164

)%

(29,180

)

(102

)%

Net interest income after provision for credit losses

100,671

102,708

71,546

(2,037

)

(2

)%

29,125

41

%

Noninterest income:

Insurance commissions

28,147

22,437

27,477

5,710

25

%

670

2

%

Service charges on deposit accounts

5,367

6,046

6,098

(679

)

(11

)%

(731

)

(12

)%

Trust and investment advisory fees

5,663

5,502

5,095

161

3

%

568

11

%

Debit card processing fees

2,749

2,749

2,470

-

-

%

279

11

%

Interest rate swap income (losses)

5,405

2,538

(6,009

)

2,867

113

%

11,414

(190

)%

Income (losses) from investments held in rabbi trusts

1,846

5,535

(6,743

)

(3,689

)

(67

)%

8,589

(127

)%

Gains (losses) on trading securities, net

-

(1

)

(2

)

1

(100

)%

2

(100

)%

Gains on sales of mortgage loans held for sale, net

1,479

3,334

93

(1,855

)

(56

)%

1,386

1490

%

Gains on sales of securities available for sale, net

1,164

3

122

1,161

38700

%

1,042

854

%

Other

3,392

1,495

4,768

1,897

127

%

(1,376

)

(29

)%

Total noninterest income

55,212

49,638

33,369

5,574

11

%

21,843

65

%

Noninterest expense:

Salaries and employee benefits

64,040

70,310

61,589

(6,270

)

(9

)%

2,451

4

%

Office occupancy and equipment

8,217

8,198

8,689

19

-

%

(472

)

(5

)%

Data processing

12,129

11,354

10,004

775

7

%

2,125

21

%

Professional services

4,148

5,307

3,689

(1,159

)

(22

)%

459

12

%

Charitable contributions

-

91,288

1,187

(91,288

)

(100

)%

(1,187

)

(100

)%

Marketing

1,691

2,823

2,468

(1,132

)

(40

)%

(777

)

(31

)%

Loan expenses

1,847

2,025

1,112

(178

)

(9

)%

735

66

%

FDIC insurance

948

946

906

2

-

%

42

5

%

Amortization of intangible assets

532

755

702

(223

)

(30

)%

(170

)

(24

)%

Other

497

6,163

4,826

(5,666

)

(92

)%

(4,329

)

(90

)%

Total noninterest expense

94,049

199,169

95,172

(105,120

)

(53

)%

(1,123

)

(1

)%

Income (loss) before income tax expense (benefit)

61,834

(46,823

)

9,743

108,657

(232

)%

52,091

535

%

Income tax expense (benefit)

14,171

(2,761

)

1,298

16,932

(613

)%

12,873

992

%

Net income (loss)

47,663

(44,062

)

8,445

91,725

(208

)%

39,218

464

%

Share data:

Weighted average common shares outstanding

172,049,044

171,812,535

n.a.

Earnings (loss) per share

$

0.28

$

(0.26

)

n.a.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

Three months ended Three months ended Mar 31, 2021 change from three months ended

(Unaudited,dollars in Mar 31,thousands, Mar 31, 2021 Dec 31, 2020 2020 Dec 31, 2020 Mar 31, 2020except sharedata)



Interest anddividend ? $ ? % ? $ ? %income:

Interest and $ 88,639 $ 93,767 $ 95,538 (5,128 ) (5 ) (6,899 ) (7 )fees on loans % %

Taxableinterest anddividends on 10,206 8,493 8,178 1,713 20 % 2,028 25 %available forsalesecurities

Non-taxableinterest anddividends on 1,856 1,879 1,921 (23 ) (1 ) (65 ) (3 )available for % %salesecurities

Interest onfederal fundssold and 432 584 517 (152 ) (26 ) (85 ) (16 )other % %short-terminvestments

Interest anddividends on - - 5 - - % (5 ) (100 )trading %securities

Totalinterest and 101,133 104,723 106,159 (3,590 ) (3 ) (5,026 ) (5 )dividend % %income

Interest expense:

Interest on 1,002 1,070 5,414 (68 ) (6 ) (4,412 ) (81 )deposits % %

Interest on 40 45 599 (5 ) (11 ) (559 ) (93 )borrowings % %

Total ) )interest 1,042 1,115 6,013 (73 ) (7 % (4,971 ) (83 %expense

Net interest 100,091 103,608 100,146 (3,517 ) (3 ) (55 ) - %income %

(Release of)provision for (580 ) 900 28,600 (1,480 ) (164 ) (29,180 ) (102 )allowance for % %loan losses

Net interestincome after 100,671 102,708 71,546 (2,037 ) (2 ) 29,125 41 %provision for %credit losses

Noninterest income:

Insurance 28,147 22,437 27,477 5,710 25 % 670 2 %commissions

Servicecharges on 5,367 6,046 6,098 (679 ) (11 ) (731 ) (12 )deposit % %accounts

Trust andinvestment 5,663 5,502 5,095 161 3 % 568 11 %advisory fees

Debit cardprocessing 2,749 2,749 2,470 - - % 279 11 %fees

Interest rate )swap income 5,405 2,538 (6,009 ) 2,867 113 % 11,414 (190 %(losses)

Income(losses) from ) )investments 1,846 5,535 (6,743 ) (3,689 ) (67 % 8,589 (127 %held in rabbitrusts

Gains(losses) on ) )trading - (1 ) (2 ) 1 (100 % 2 (100 %securities,net

Gains onsales of )mortgage 1,479 3,334 93 (1,855 ) (56 % 1,386 1490 %loans heldfor sale, net

Gains onsales ofsecurities 1,164 3 122 1,161 38700 % 1,042 854 %available forsale, net

Other 3,392 1,495 4,768 1,897 127 % (1,376 ) (29 ) %

Totalnoninterest 55,212 49,638 33,369 5,574 11 % 21,843 65 %income

Noninterest expense:

Salaries and )employee 64,040 70,310 61,589 (6,270 ) (9 % 2,451 4 %benefits

Office )occupancy and 8,217 8,198 8,689 19 - % (472 ) (5 %equipment

Data 12,129 11,354 10,004 775 7 % 2,125 21 %processing

Professional 4,148 5,307 3,689 (1,159 ) (22 ) 459 12 %services %

Charitable - 91,288 1,187 (91,288 ) (100 ) (1,187 ) (100 )contributions % %

Marketing 1,691 2,823 2,468 (1,132 ) (40 ) (777 ) (31 ) % %

Loan expenses 1,847 2,025 1,112 (178 ) (9 ) 735 66 % %

FDIC 948 946 906 2 - % 42 5 %insurance

Amortization ) )of intangible 532 755 702 (223 ) (30 % (170 ) (24 %assets

Other 497 6,163 4,826 (5,666 ) (92 ) (4,329 ) (90 ) % %

Total ) )noninterest 94,049 199,169 95,172 (105,120 ) (53 % (1,123 ) (1 %expense

Income (loss)before income 61,834 (46,823 ) 9,743 108,657 (232 ) 52,091 535 %tax expense %(benefit)

Income tax )expense 14,171 (2,761 ) 1,298 16,932 (613 % 12,873 992 %(benefit)

Net income 47,663 (44,062 ) 8,445 91,725 (208 ) 39,218 464 %(loss) %



Share data:

Weightedaverage 172,049,044 171,812,535 n.a. common sharesoutstanding

Earnings(loss) per $ 0.28 $ (0.26 ) n.a. share

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN

As of and for the three months ended

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

(Unaudited, dollars in thousands)

Avg.

Balance

Interest

Yield /

Cost (5)

Avg.

Balance

Interest

Yield /

Cost (5)

Avg.

Balance

Interest

Yield /

Cost (5)

Interest-earning assets:

Loans (1):

Commercial

$

7,317,951

$

69,210

3.84

%

$

7,265,156

$

73,289

4.01

%

$

6,275,057

$

69,615

4.46

%

Residential

1,393,139

11,274

3.28

%

1,367,073

11,641

3.39

%

1,429,994

13,303

3.74

%

Consumer

1,105,698

8,937

3.28

%

1,164,468

9,621

3.29

%

1,311,172

13,407

4.11

%

Total loans

9,816,788

89,421

3.69

%

9,796,697

94,551

3.84

%

9,016,223

96,325

4.30

%

Investment securities

3,631,530

12,577

1.40

%

2,627,679

10,945

1.66

%

1,500,413

10,685

2.86

%

Cash and other short-term investments

1,740,561

432

0.10

%

2,291,118

584

0.10

%

240,440

517

0.86

%

Total interest earning assets

15,188,879

102,430

2.73

%

14,715,494

106,080

2.87

%

10,757,076

107,527

4.02

%

Non-interest-earning assets

1,120,603

1,123,550

1,022,216

Total assets

$

16,309,482

$

15,839,044

$

11,779,292

Interest-bearing liabilities:

Deposits:

Savings

$

1,300,057

$

64

0.02

%

$

1,232,669

$

62

0.02

%

$

976,881

$

54

0.02

%

Interest checking

2,391,025

234

0.04

%

2,282,786

232

0.04

%

1,902,128

819

0.17

%

Money market

3,440,214

587

0.07

%

3,362,335

609

0.07

%

2,981,427

3,904

0.53

%

Time deposits

251,115

117

0.19

%

267,378

167

0.25

%

327,144

638

0.78

%

Total interest-bearing deposits

7,382,411

1,002

0.06

%

7,145,168

1,070

0.06

%

6,187,580

5,415

0.35

%

Borrowings

25,625

40

0.63

%

25,529

45

0.70

%

163,463

599

1.47

%

Total interest-bearing liabilities

7,408,036

1,042

0.06

%

7,170,697

1,115

0.06

%

6,351,043

6,014

0.38

%

Demand deposit accounts

5,125,831

5,167,221

3,477,377

Other non-interest-bearing liabilities

358,087

376,197

318,656

Total liabilities

12,891,954

12,714,115

10,147,076

Shareholders' equity

3,417,528

3,124,929

1,632,216

Total liabilities and shareholders' equity

$

16,309,482

$

15,839,044

$

11,779,292

Net interest income - FTE

$

101,388

$

104,965

$

101,513

Net interest rate spread (2)

2.67

%

2.81

%

3.64

%

Net interest-earning assets (3)

$

7,780,843

$

7,544,797

$

4,406,033

Net interest margin - FTE (4)

2.71

%

2.84

%

3.80

%

(1) Includes non-accrual loans.

(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.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

(5) Presented on an annualized basis.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN

As of and for the three months ended

Mar 31, 2021 Dec 31, 2020 Mar 31, 2020

Yield Yield Yield(Unaudited, dollars in Avg. / Avg. / Avg. /thousands) Interest Interest Interest Balance Cost Balance Cost Balance Cost (5) (5) (5)

Interest-earning assets:

Loans (1):

Commercial $ 7,317,951 $ 69,210 3.84 % $ 7,265,156 $ 73,289 4.01 % $ 6,275,057 $ 69,615 4.46 %

Residential 1,393,139 11,274 3.28 % 1,367,073 11,641 3.39 % 1,429,994 13,303 3.74 %

Consumer 1,105,698 8,937 3.28 % 1,164,468 9,621 3.29 % 1,311,172 13,407 4.11 %

Total loans 9,816,788 89,421 3.69 % 9,796,697 94,551 3.84 % 9,016,223 96,325 4.30 %

Investment securities 3,631,530 12,577 1.40 % 2,627,679 10,945 1.66 % 1,500,413 10,685 2.86 %

Cash and other 1,740,561 432 0.10 % 2,291,118 584 0.10 % 240,440 517 0.86 %short-term investments

Total interest earning 15,188,879 102,430 2.73 % 14,715,494 106,080 2.87 % 10,757,076 107,527 4.02 %assets

Non-interest-earning 1,120,603 1,123,550 1,022,216 assets

Total assets $ 16,309,482 $ 15,839,044 $ 11,779,292



Interest-bearing liabilities:

Deposits:

Savings $ 1,300,057 $ 64 0.02 % $ 1,232,669 $ 62 0.02 % $ 976,881 $ 54 0.02 %

Interest checking 2,391,025 234 0.04 % 2,282,786 232 0.04 % 1,902,128 819 0.17 %

Money market 3,440,214 587 0.07 % 3,362,335 609 0.07 % 2,981,427 3,904 0.53 %

Time deposits 251,115 117 0.19 % 267,378 167 0.25 % 327,144 638 0.78 %

Total interest-bearing 7,382,411 1,002 0.06 % 7,145,168 1,070 0.06 % 6,187,580 5,415 0.35 %deposits

Borrowings 25,625 40 0.63 % 25,529 45 0.70 % 163,463 599 1.47 %

Total interest-bearing 7,408,036 1,042 0.06 % 7,170,697 1,115 0.06 % 6,351,043 6,014 0.38 %liabilities

Demand deposit 5,125,831 5,167,221 3,477,377 accounts

Othernon-interest-bearing 358,087 376,197 318,656 liabilities

Total liabilities 12,891,954 12,714,115 10,147,076

Shareholders' equity 3,417,528 3,124,929 1,632,216

Total liabilities and $ 16,309,482 $ 15,839,044 $ 11,779,292 shareholders' equity





Net interest income - $ 101,388 $ 104,965 $ 101,513 FTE

Net interest rate 2.67 % 2.81 % 3.64 %spread (2)

Net interest-earning $ 7,780,843 $ 7,544,797 $ 4,406,033 assets (3)

Net interest margin - 2.71 % 2.84 % 3.80 %FTE (4)



(1) Includes non-accrual loans.

(2) Net interest rate spread represents the difference between the weightedaverage yield on interest-earning assets and the weighted average cost ofinterest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets lesstotal interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average totalinterest-earning assets.

(5) Presented on an annualized basis.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - NON-PERFORMING ASSETS (1)

As of

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

(Unaudited, dollars in thousands)

Non-accrual loans:

Commercial

$

30,275

$

30,059

$

28,968

$

31,273

$

38,054

Residential

8,127

6,815

7,419

11,693

5,594

Consumer

3,873

4,131

4,727

9,374

4,085

Total non-accrual loans

42,275

41,005

41,114

52,340

47,733

Accruing loans past due 90 days or more:

Commercial

1,390

1,959

3,384

2,802

1,345

Residential

280

279

326

244

-

Consumer

9

9

9

9

9

Total accruing loans past due 90 days or more

1,679

2,247

3,719

3,055

1,354

Total non-performing loans

43,954

43,252

44,833

55,395

49,087

Other real estate owned

-

-

40

40

40

Other non-performing assets:

-

-

-

-

-

Total non-performing assets

$

43,954

$

43,252

$

44,873

$

55,435

$

49,127

Total accruing troubled debt restructured loans

$

39,367

$

41,095

$

39,881

$

40,691

$

41,880

Total non-performing loans to total loans

0.44

%

0.45

%

0.45

%

0.56

%

0.54

%

Total non-performing assets to total assets

0.26

%

0.27

%

0.29

%

0.40

%

0.40

%

(1) Non-performing assets are comprised of NPLs, OREO, and non-performing securities. NPLs consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest. OREO consists of real estate properties, which primarily serve as collateral to secure the Company's loans, that it controls due to foreclosure. These properties are recorded at the lower of cost or fair value less estimated costs to sell on the date the Company obtains control.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - NON-PERFORMING ASSETS (1)

As of

Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2021 2020 2020 2020 2020

(Unaudited, dollars in thousands)

Non-accrual loans:

Commercial $ 30,275 $ 30,059 $ 28,968 $ 31,273 $ 38,054

Residential 8,127 6,815 7,419 11,693 5,594

Consumer 3,873 4,131 4,727 9,374 4,085

Total non-accrual 42,275 41,005 41,114 52,340 47,733 loans

Accruing loans pastdue 90 days or more:

Commercial 1,390 1,959 3,384 2,802 1,345

Residential 280 279 326 244 -

Consumer 9 9 9 9 9

Total accruingloans past due 90 1,679 2,247 3,719 3,055 1,354 days or more

Totalnon-performing 43,954 43,252 44,833 55,395 49,087 loans

Other real estate - - 40 40 40 owned

Othernon-performing - - - - - assets:

Totalnon-performing $ 43,954 $ 43,252 $ 44,873 $ 55,435 $ 49,127 assets

Total accruingtroubled debt $ 39,367 $ 41,095 $ 39,881 $ 40,691 $ 41,880 restructured loans

Totalnon-performing 0.44 % 0.45 % 0.45 % 0.56 % 0.54 %loans to totalloans

Totalnon-performing 0.26 % 0.27 % 0.29 % 0.40 % 0.40 %assets to totalassets



(1) Non-performing assets are comprised of NPLs, OREO, and non-performingsecurities. NPLs consist of non-accrual loans and loans that are more than 90days past due but still accruing interest. OREO consists of real estateproperties, which primarily serve as collateral to secure the Company's loans,that it controls due to foreclosure. These properties are recorded at the lowerof cost or fair value less estimated costs to sell on the date the Companyobtains control.

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE OFFS

Three months ended

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

(Unaudited, dollars in thousands)

Average total loans

$

9,816,788

$

9,796,697

$

9,914,731

$

9,875,110

$

9,016,223

Allowance for loan losses, beginning of the period

$

113,031

$

115,432

$

116,636

$

109,138

$

82,297

Charged-off loans:

Commercial and industrial

-

1,603

140

27

-

Commercial real estate

234

-

-

24

-

Commercial construction

-

-

-

-

-

Business banking

1,384

1,433

1,179

1,198

1,337

Residential real estate

-

-

-

-

-

Consumer home equity

-

79

22

-

473

Other consumer

364

713

1,077

15

533

Total charged-off loans

1,982

3,828

2,418

1,264

2,343

Recoveries on loans previously charged-off:

Commercial and industrial

9

92

306

58

322

Commercial real estate

-

220

4

5

1

Commercial construction

-

-

-

-

-

Business banking

365

47

91

27

127

Residential real estate

10

9

43

13

60

Consumer home equity

71

100

31

8

14

Other consumer

156

59

39

51

60

Total recoveries

611

527

514

162

584

Net loans charged-off (recoveries):

Commercial and industrial

(9

)

1,511

(166

)

(31

)

(322

)

Commercial real estate

234

(220

)

(4

)

19

(1

)

Commercial construction

-

-

-

-

-

Business banking

1,019

1,386

1,088

1,171

1,210

Residential real estate

(10

)

(9

)

(43

)

(13

)

(60

)

Consumer home equity

(71

)

(21

)

(9

)

(8

)

459

Other consumer

208

654

1,038

(36

)

473

Total net loans charged-off

1,371

3,301

1,904

1,102

1,759

(Release of) provision for loan losses

(580

)

900

700

8,600

28,600

Total allowance for loan losses, end of period

$

111,080

$

113,031

$

115,432

$

116,636

$

109,138

Net charge-offs to average total loans outstanding during this period (1)

0.06

%

0.13

%

0.08

%

0.04

%

0.08

%

Allowance for loan losses as a percent of total loans

1.12

%

1.16

%

1.16

%

1.17

%

1.20

%

Allowance for loan losses as a percent of nonperforming loans

252.72

%

261.33

%

257.47

%

210.55

%

222.34

%

(1) Presented on an annualized basis.

APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

EASTERN BANKSHARES, INC. AND SUBSIDIARIES

ASSET QUALITY - PROVISION, ALLOWANCE, AND NET CHARGE OFFS

Three months ended

Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020

(Unaudited,dollars in thousands)

Average total $ 9,816,788 $ 9,796,697 $ 9,914,731 $ 9,875,110 $ 9,016,223 loans

Allowance forloan losses, $ 113,031 $ 115,432 $ 116,636 $ 109,138 $ 82,297 beginning ofthe period

Charged-off loans:

Commercialand - 1,603 140 27 - industrial

Commercial 234 - - 24 - real estate

Commercial - - - - - construction

Business 1,384 1,433 1,179 1,198 1,337 banking

Residential - - - - - real estate

Consumer home - 79 22 - 473 equity

Other 364 713 1,077 15 533 consumer

Totalcharged-off 1,982 3,828 2,418 1,264 2,343 loans

Recoveries onloans previouslycharged-off:

Commercialand 9 92 306 58 322 industrial

Commercial - 220 4 5 1 real estate

Commercial - - - - - construction

Business 365 47 91 27 127 banking

Residential 10 9 43 13 60 real estate

Consumer home 71 100 31 8 14 equity

Other 156 59 39 51 60 consumer

Total 611 527 514 162 584 recoveries

Net loanscharged-off (recoveries):

Commercialand (9 ) 1,511 (166 ) (31 ) (322 )industrial

Commercial 234 (220 ) (4 ) 19 (1 )real estate

Commercial - - - - - construction

Business 1,019 1,386 1,088 1,171 1,210 banking

Residential (10 ) (9 ) (43 ) (13 ) (60 )real estate

Consumer home (71 ) (21 ) (9 ) (8 ) 459 equity

Other 208 654 1,038 (36 ) 473 consumer

Total netloans 1,371 3,301 1,904 1,102 1,759 charged-off

(Release of)provision for (580 ) 900 700 8,600 28,600 loan losses

Totalallowance for $ 111,080 $ 113,031 $ 115,432 $ 116,636 $ 109,138 loan losses,end of period

Netcharge-offsto averagetotal loans 0.06 % 0.13 % 0.08 % 0.04 % 0.08 %outstandingduring thisperiod (1)

Allowance forloan lossesas a percent 1.12 % 1.16 % 1.16 % 1.17 % 1.20 %of totalloans

Allowance forloan lossesas a percent 252.72 % 261.33 % 257.47 % 210.55 % 222.34 %ofnonperformingloans



(1) Presented on an annualized basis.

APPENDIX A: Reconciliation of Non-GAAP Earnings Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

Three Months Ended

(Unaudited,dollars in Sep 30, Jun 30, Mar 31,thousands, Mar 31, 2021 Dec 31, 2020 2020 2020 2020except sharedata)



Net income $ 47,663 $ (44,062 ) $ 28,505 $ 29,850 $ 8,445 (GAAP)

Add:

Noninterestincome components:

(Income) lossfrominvestments (1,846 ) (5,535 ) (3,800 ) (7,745 ) 6,743 held in rabbitrusts

(Gain) losson sales ofsecurities (1,164 ) (3 ) - (163 ) (122 )available forsale, net

(Gain) losson sale of (18 ) (49 ) 71 27 (29 )other assets

Noninterestexpense components:

Rabbi trustemployeebenefit 986 2,838 1,445 3,985 (3,479 )expense(income)

Impairmentcharge on tax - 3,189 7,590 - - creditinvestments

IPO costs (1) - - 549 380 270

(Gain) losson sale of - (61 ) (546 ) - - OREO

Merger andacquisition 589 90 - - - expenses

Stockdonation to - 91,287 - - - the EBCF

Total impactof non-GAAP (1,453 ) 91,756 5,309 (3,516 ) 3,383 adjustments

Less net tax(expense)benefitassociated (327 ) 16,082 1,492 (967 ) 970 with non-GAAPadjustments(2)

Non-GAAPadjustments, $ (1,126 ) $ 75,674 $ 3,817 $ (2,549 ) $ 2,413 net of tax

Operating netincome $ 46,537 $ 31,612 $ 32,322 $ 27,301 $ 10,858 (non-GAAP)



Weightedaveragecommon shares outstandingduring theperiod:

Basic 172,049,044 171,812,535 - - -

Diluted 172,049,044 171,812,535 - - -



Earnings(loss) per $ 0.28 $ (0.26 ) n.a. n.a. n.a.share, basic

Earnings(loss) per $ 0.28 $ (0.26 ) n.a. n.a. n.a.share,diluted



Operatingearnings per $ 0.27 $ 0.18 n.a. n.a. n.a.share, basic(non-GAAP)

Operatingearnings pershare, $ 0.27 $ 0.18 n.a. n.a. n.a.diluted(non-GAAP)



Return on )average 1.19 % (1.11 % 0.80 % 0.88 % 0.29 %assets (3)

Add:

(Income) lossfrom ) ) ) )investments (0.05 % (0.14 % (0.11 % (0.23 % 0.23 %held in rabbitrusts (3)

(Gain) losson sales of )securities (0.03 % - % - % - % - %available forsale, net (3)

(Gain) losson sale of - % - % - % - % - %other assets(3)

Rabbi trustemployee )benefit 0.02 % 0.07 % 0.04 % 0.12 % (0.12 %expense(income) (3)

Impairmentcharge on taxcredit - % 0.08 % 0.21 % - % - %investments(3)

IPO costs (1) - % - % 0.02 % 0.01 % 0.01 %(3)

(Gain) loss )on sale of - % - % (0.02 % - % - %OREO (3)

Merger andacquisition 0.01 % - % - % - % - %expenses (3)

Stockdonation to - % 2.29 % - % - % - %the EBCF (3)

Less net taxbenefit(expense) ) )associated (0.01 % 0.40 % 0.04 % (0.03 % 0.03 %with non-GAAPadjustments(2) (3)

Operatingreturn onaverage 1.15 % 0.79 % 0.90 % 0.81 % 0.38 %assets(non-GAAP)(3)



Return onaverage 5.66 % (5.61 ) 6.65 % 7.11 % 2.08 %shareholders' %equity (3)

Add:

(Income) lossfrom ) ) ) )investments (0.22 % (0.70 % (0.89 % (1.84 % 1.66 %held in rabbitrusts (3)

(Gain) losson sales of ) ) )securities (0.14 % - % - % (0.04 % (0.03 %available forsale, net (3)

(Gain) losson sale of - % (0.01 ) 0.02 % 0.01 % (0.01 )other assets % %(3)

Rabbi trustemployee )benefit 0.12 % 0.36 % 0.34 % 0.95 % (0.86 %expense(income) (3)

Impairmentcharge on taxcredit - % 0.41 % 1.77 % - % - %investments(3)

IPO costs (1) - % - % 0.13 % 0.09 % 0.07 %(3)

(Gain) loss ) )on sale of - % (0.01 % (0.13 % - % - %OREO (3)

Merger andacquisition 0.07 % 0.01 % - % - % - %expenses (3)

Stockdonation to - % 11.62 % - % - % - %the EBCF (3)

Less net taxbenefit(expense) ) )associated (0.04 % 2.05 % 0.35 % (0.23 % 0.24 %with non-GAAPadjustments(2) (3)

Operatingreturn onaverageshareholders' 5.53 % 4.02 % 7.54 % 6.51 % 2.67 %equity(non-GAAP)(3)



(1) Reflects costs associated with the Company's IPO that are indirectlyrelated to the offering and were not recorded as a reduction of capital.

(2) The net tax benefit (expense) associated with these items is determined byassessing whether each item is included or excluded from net taxable income andapplying the Company's combined statutory tax rate only to those items includedin net taxable income. Additionally, the net tax benefit (expense) for theimpairment charge of tax credit investment includes associated tax creditbenefits.

(3) Ratios have been annualized.

APPENDIX B: Reconciliation of Non-GAAP Operating Revenues and Expenses

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

Three Months Ended

Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2021 2020 2020 2020 2020

(Unaudited,dollars in thousands)

Net interest $ 100,091 $ 103,608 $ 98,742 $ 98,755 $ 100,146 income (GAAP)

Add:

Tax-equivalentadjustment 1,297 1,357 1,353 1,378 1,368 (non-GAAP)

Fully-taxableequivalent netinterest $ 101,388 $ 104,965 $ 100,095 $ 100,133 $ 101,514 income(non-GAAP)



Noninterest $ 55,212 $ 49,638 $ 47,709 $ 47,657 $ 33,369 income (GAAP)

Less:

Income (loss)frominvestments 1,846 5,535 3,800 7,745 (6,743 )held in rabbitrusts

Gain (loss) onsales ofsecurities 1,164 3 - 163 122 available forsale, net

Gain (loss) onsale of other 18 49 (71 ) (27 ) 29 assets

Noninterestincome on anoperating $ 52,184 $ 44,051 $ 43,980 $ 39,776 $ 39,961 basis(non-GAAP)



Noninterest $ 94,049 $ 199,169 $ 109,817 $ 100,765 $ 95,172 expense (GAAP)

Less:

Rabbi trustemployeebenefit 986 2,838 1,445 3,985 (3,479 )expense(income)

Impairmentcharge on tax - 3,189 7,590 - - creditinvestments

IPO costs (1) - - 549 380 270

(Gain) loss on - (61 ) (546 ) - - sale of OREO

Merger andacquisition 589 90 - - - expenses

Stock donation - 91,287 - - - to the EBCF

Noninterestexpense on anoperating $ 92,474 $ 101,826 $ 100,779 $ 96,400 $ 98,381 basis(non-GAAP)



Total revenue $ 155,303 $ 153,246 $ 146,451 $ 146,412 $ 133,515 (GAAP)

Totaloperating $ 153,572 $ 149,016 $ 144,075 $ 139,909 $ 141,475 revenue(non-GAAP)



Efficiency 60.56 % 129.97 % 74.99 % 68.82 % 71.28 %ratio (GAAP)

Operatingefficiency 60.22 % 68.33 % 69.95 % 68.90 % 69.54 %ratio(non-GAAP)



Noninterestincome / total 35.55 % 32.39 % 32.58 % 32.55 % 24.99 %revenue (GAAP)

Noninterestincome / totalrevenue on an 33.98 % 29.56 % 30.53 % 28.43 % 28.25 %operatingbasis(non-GAAP)



(1) Reflects costs associated with the Company's IPO that are indirectlyrelated to the offering and were not recorded as a reduction of capital.

APPENDIX C: Reconciliation of Non-GAAP Capital Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of

Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020

(Unaudited,dollars inthousands, except sharedata)

Tangibleshareholders' equity:

Totalshareholders' $ 3,387,045 $ 3,428,052 $ 1,713,372 $ 1,693,630 $ 1,662,734 equity (GAAP)

Less:Goodwill and 376,002 376,534 375,632 376,331 377,033 otherintangibles

Tangibleshareholders' 3,011,043 3,051,518 1,337,740 1,317,299 1,285,701 equity(non-GAAP)



Tangible assets:

Total assets 16,726,795 15,964,190 15,460,594 13,996,523 12,343,754 (GAAP)

Less:Goodwill and 376,002 376,534 375,632 376,331 377,033 otherintangibles

Tangibleassets $ 16,350,793 $ 15,587,656 $ 15,084,962 $ 13,620,192 $ 11,966,721 (non-GAAP)



Shareholders'equity to 20.25 % 21.47 % 11.08 % 12.10 % 13.47 %assets ratio(GAAP)

Tangibleshareholders'equity to 18.42 % 19.58 % 8.87 % 9.67 % 10.74 %tangibleassets ratio(non-GAAP)



Common shares 186,758,154 186,758,154 - - - outstanding



Book valueper share $ 18.14 $ 18.36 n.a. n.a. n.a.(GAAP)

Tangible bookvalue per $ 16.12 $ 16.34 n.a. n.a. n.a.share(non-GAAP)

APPENDIX D: Reconciliation of Non-GAAP Credit Metrics

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of

(Unaudited,dollars in Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020thousands)



Total loansexcluding PPP loans:

Total loans $ 9,883,802 $ 9,706,989 $ 9,911,494 $ 9,979,616 $ 9,080,743 (GAAP) (1)

Less: PPP 1,210,598 1,007,487 1,098,883 1,072,312 - loans (1)

Total loansexcluding PPP $ 8,673,204 $ 8,699,502 $ 8,812,611 $ 8,907,304 $ 9,080,743 loans(non-GAAP)



Totalnonperforming $ 43,954 $ 43,252 $ 44,833 $ 55,395 $ 49,087 loans (NPLs)(GAAP)



Total NPLs /total loans 0.44 % 0.45 % 0.45 % 0.56 % 0.54 %(GAAP)

Total NPLs /total loans(excl. PPP 0.51 % 0.50 % 0.51 % 0.62 % 0.54 %loans)(non-GAAP)



Allowance forloan losses $ 111,080 $ 113,031 $ 115,432 $ 116,636 $ 109,138 (ALLL) (GAAP)



ALLL / total 1.12 % 1.16 % 1.16 % 1.17 % 1.20 %loans (GAAP)

ALLL / totalloans (excl. 1.28 % 1.30 % 1.31 % 1.31 % 1.20 %PPP loans)(non-GAAP)



As of and for the three months ended

(Unaudited,dollars in Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020thousands)



Average totalloans excluding PPPLoans:

Average total $ 9,816,788 $ 9,796,697 $ 9,914,731 $ 9,875,110 $ 9,016,223 loans (GAAP)

Less: Average 1,131,516 1,076,155 1,091,464 818,665 - PPP loans

Average totalloansexcluding PPP $ 8,685,272 $ 8,720,542 $ 8,823,267 $ 9,056,445 $ 9,016,223 loans(non-GAAP)



Total netloans $ 1,371 $ 3,301 $ 1,904 $ 1,102 $ 1,759 charged-off(NCOs) (GAAP)



NCOs /Average total 0.06 % 0.13 % 0.08 % 0.04 % 0.08 %loans (GAAP)(2)

NCOs /Average totalloans (excl. 0.06 % 0.15 % 0.09 % 0.05 % 0.08 %PPP loans)(non-GAAP)(2)



(1) Includes unamortized premiums, net of unearned discounts and deferred fees.

(2) Presented on an annualized basis

Appendix E: Reconciliation of Non-GAAP Core Margin

For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

As of and for the three months ended

Mar 31, 2021 Dec 31, 2020

(Unaudited, Margin Margindollars in Volume Interest Volume Interestthousands) Impact Impact (1) (1)



Reportedtotalaverageinterestearnings $ 15,188,879 $ 101,388 2.71 % $ 14,715,494 $ 104,965 2.84 %assets, netinterestincome, andnet interestmargin (2)

Non-GAAP adjustments:

PPP loanvolume (1,131,516 ) (2,887 ) 0.13 % (1,076,155 ) (2,741 ) 0.14 %earning 1%

SBA PPP loanfeeaccretion,net of - (8,339 ) (0.22 ) - (6,102 ) (0.16 )deferred % %originationcostamortization

Excess cash (1,436,783 ) (354 ) 0.27 % (1,996,808 ) (502 ) 0.43 %(3)

Deferredloan fee - - - % - (3,774 ) (0.10 )income %adjustment

Core margin(Non-GAAP) $ 12,620,580 $ 89,808 2.89 % $ 11,642,531 $ 91,846 3.14 %(4)



Core marginchange from (0.25 ) (0.28 )prior % %quarter



Sep 30, 2020 Jun 30, 2020

Margin Margin Volume Interest Volume Interest Impact Impact (1) (1)



Reportedtotalaverageinterestearnings $ 13,089,839 $ 100,095 3.04 % $ 12,479,343 $ 100,137 3.23 %assets, netinterestincome, andnet interestmargin (2)

Non-GAAP adjustments:

PPP loanvolume (1,091,464 ) (2,795 ) 0.18 % (818,665 ) (2,175 ) 0.15 %earning 1%

SBA PPP loanfeeaccretion,net of - (4,125 ) (0.13 ) - (3,655 ) (0.12 )deferred % %originationcostamortization

Excess cash (1,200,250 ) (302 ) 0.30 % (898,745 ) (223 ) 0.24 %(3)

Deferredloan fee - - - % - - - %incomeadjustment

Core margin(Non-GAAP) $ 10,798,125 $ 92,873 3.42 % $ 10,761,933 $ 94,084 3.52 %(4)



Core marginchange from (0.10 ) prior %quarter



(1) Presented on an annualized basis.

(2) Presented on a fully taxable equivalent basis.

(3) Cash above 2% of average total earning assets at yield of 10 basis points.

(4) Core margin is the margin that results from the combined volume andinterest adjustments taken together.

APPENDIX F: Commercial Loan Portfolio Exposure to High-risk Industries

High-risk industries are those industries that the Company believes will likely experience the most adverse effects of COVID-19.

As of March 31, 2021

COVID-19 Loan balance Balance asIndustry (Dollars in a percent modification thousands) of total as a percent loans of loan type (2)

Retail (1) $ 491,210 5.0 % 1.0 %

Restaurants 199,239 2.0 % 10.7 %

Hotels 178,094 1.8 % 51.6 %

Construction contractors financing 83,112 0.8 % 0.9 %

Auto dealerships 77,658 0.8 % - %

Other high risk 81,529 0.8 % 0.8 %

All impacted industries total 1,110,842 11.2 % 10.8 %

Remaining commercial and business 6,314,932 63.7 % 0.7 %banking

Total Commercial and business 7,425,774 74.9 % 2.2 %banking

All Other Loans 2,490,701 25.1 % 0.7 %

Total $ 9,916,475 100.0 % 1.8 %



(1) The retail segment contains all retail commercial real estate loans andnon-essential commercial and industrial retail loans.

(2) Remaining COVID-19 modifications reflect those loans which underwent amodification and have not yet resumed payment. The Company defines a modifiedloan to have resumed payment if it is one month past the modification end dateand not more than 30 days past due. These modifications with active deferralsmet the criteria of either Section 4013 of the CARES Act or the InteragencyStatement on Loan Modifications and Reporting for Financial InstitutionsWorking with Customers Affected by the Coronavirus (Revised) and therefore arenot deemed troubled debt restructurings.

APPENDIX G: COVID-19 Related Loan Modifications

Remaining COVID-19 Remaining COVID-19 Remaining COVID-19 Modifications as of Modifications as of Modifications as of September 30, 2020 (1) December 31, 2020 (1) March 31, 2021 (1)

% of % of % of(Dollars in Remaining Total Remaining Total Remaining Totalthousands) Modifications Loan Modifications Loan Modifications Loan Balance Balance Balance



Portfolio

Commercialand $ 99,630 4.6 % $ 34,076 1.7 % $ 22,776 1.1 %industrial

Commercial 414,233 11.3 % 231,794 6.5 % 127,683 3.5 %real estate

Commercial 13,330 4.5 % 10,987 3.6 % - - %construction

Business 64,369 5.1 % 23,434 1.8 % 11,681 0.8 %banking

Residential 95,260 6.9 % 26,772 2.0 % 13,754 1.0 %real estate

Consumer 10,093 1.1 % 3,432 0.4 % 1,274 0.2 %home equity

Other 4,312 1.4 % 2,187 0.8 % 1,262 0.5 %consumer

Total $ 701,227 7.1 % $ 332,682 3.4 % $ 178,430 1.8 %



(1) Remaining COVID-19 modifications reflect those loans which underwent amodification and have not yet resumed payment. The Company defines a modifiedloan to have resumed payment if it is one month past the modification end dateand not more than 30 days past due. These modifications with active deferralsmet the criteria of either Section 4013 of the CARES Act or the InteragencyStatement on Loan Modifications and Reporting for Financial InstitutionsWorking with Customers Affected by the Coronavirus (Revised) and therefore arenot deemed troubled debt restructurings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006116/en/

CONTACT: Investor Contact

CONTACT: Jillian Belliveau Eastern Bankshares, Inc. InvestorRelations@easternbank.com 781-598-7920

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CONTACT: Andrea Goodman Eastern Bank a.goodman@easternbank.com 781-598-7847