1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
EBC
Event Date
2020-10-15
Sector
Financials
Subsector
Banks
Offer Range
—
Shares Offered
179.3M
186.76M
$1.9B
96.0%
Implied Upside vs Midpoint
Description
Eastern Bankshares, Inc. is a Massachusetts corporation formed in 2020 to conduct the offering. Upon completion of the offering, Eastern Bankshares, Inc. will own all of Eastern Bank’s capital stock, and through Eastern Bank and its wholly owned subsidiary Eastern Insurance Group LLC, Eastern Bankshares, Inc. will provide a variety of banking, trust and investment, and insurance services. Eastern Bankshares, Inc. currently does not intend to engage in any material business activity other than those relating to owning all of the capital stock of Eastern Bank. --- Eastern Bank is a Massachusetts-chartered bank headquartered in Boston that has served our community for over 200 years. Founded in 1818 as a local savings bank, we have evolved over the years into a diversified commercial bank, providing a broad array of products and services to retail, commercial and small business customers. We operate primarily in the greater Boston market with 89 banking offices located in eastern Massachusetts and southern and coastal New Hampshire. We have two business segments: banking and insurance agency operations. As of March 31, 2020, we had consolidated total assets of $12.3 billion, total gross loans of $9.1 billion, total deposits of $10.3 billion and total stockholders’ equity of $1.7 billion. Our mission is to invest in our customers, communities and colleagues to help them prosper and grow. We pride ourselves on understanding our customers’ financial needs and delivering a diverse suite of tailored, high-quality solutions through a consultative approach that fosters long-term relationships. We have stayed true to our communities since 1818, especially over the last few decades through the generosity of the Eastern Bank Charitable Foundation and the robust volunteerism of our talented employees. We consistently invest in our colleagues and believe our diverse and inclusive workforce is crucial to our success. Overall, we like to think of ourselves as good people, doing good things to help people prosper. We believe that, as a result of our differentiated approach to banking, we have established a distinctive brand and reputation in the market, contributing to Eastern having the greatest share of deposits in the Boston market for any full-service bank headquartered in Boston. (Based upon the most currently available FDIC data as of June 30, 2019, our total deposits of $8.7 billion represented 2.4% of the Boston market.) We believe our focus on long-term client relationships contributes to our stable, low-cost deposit base, and that our long-term presence in the market enables us to prudently underwrite and originate high-quality assets and deliver more stable returns. In addition, we believe these benefits from our focus on long-term client relationships position us well for times of stress and allow us to successfully manage through the full range of economic cycles. For the quarter ended March 31, 2020 our annualized return on average assets was 0.29% driven by a net interest margin of 0.94%, cost of total deposits of 0.23% and fee income as a percent of revenue of 29.49%. At March 31, 2020, our ratio of common equity tier 1 capital to total assets, which we refer to as our “CET1 ratio,” was 12.42%, and our ratio of net loans to deposits was 87.03%. We are committed to expanding our business in a disciplined manner with a long-term perspective. We believe that we have prudently grown our business over the past five years, with a focus on transaction deposits and loans to commercial clients. For the five-year period from January 1, 2015 through December 31, 2019, our checking accounts (our primary relationship deposit product) grew from $4.2 billion to $5.3 billion, representing a compounded annual growth rate of 5.2%, and our commercial loans (our primary strategic focus for loan growth) grew from $4.1 billion to $6.2 billion, representing a compounded annual growth rate of 8.6%. Our diversified products and services include lending, deposit, wealth and insurance products. Deposits obtained through our 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 deposits, interest checking, money market accounts, savings accounts, and time certificates of deposit. Our lending focuses on the following loan categories: commercial and industrial (including our Asset Based Lending Portfolio), commercial real estate, commercial construction, small business banking, residential real estate, and home equity loans. Through Eastern Bank’s wealth management offering, we provide a wide range of trust services. Eastern Insurance Group LLC, a wholly owned subsidiary of Eastern Bank, acts as an agent in offering insurance solutions for clients with personal, commercial or employee benefits-related insurance needs. Eastern Insurance Group LLC operates through 22 non-branch offices located primarily in eastern Massachusetts. --- Eastern Insurance Group LLC, a wholly owned subsidiary of Eastern Bank, acts as an agent in offering property and casualty as well as life and health insurance to both personal and commercial customers. Personal lines insurance products include life, accident and health, automobile, and property and liability insurance including fire, condominium, home and tenants, among others. Commercial insurance products include group life and health, commercial property and liability, surety, and workers compensation insurance, among others. Eastern Insurance Group LLC operates through 22 non-branch offices in Eastern Massachusetts, one office in Keene, New Hampshire, and one office in Providence, Rhode Island. From 2004 through 2018, we expanded Eastern Insurance Group LLC by acquiring 31 independent insurance agencies, having average revenue of $1.4 million. --- Eastern Bankshares, Inc.’s executive offices are located at 265 Franklin Street, Boston, MA 02110, and its telephone number is 1.800.EASTERN (1.800.327.8376). Our website address is www.easternbank.com.
Eastern Bankshares, Inc. annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | — | $76.9M | $113M | $134M |
| Net income | — | $232M | $120M | $88.2M |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | — | — | $25.6B | $30.6B |
| Total liabilities | — | — | $21.9B | $26.2B |
| Total equity | $2.5B | $3.0B | $3.6B | $4.3B |
| Cash & equivalents | $170M | $693M | $1.0B | $317M |