EBC - Earnings call transcript Q4 2020 | Eastern Bankshares, Inc.

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Operator

Good morning. My name is Amy and I will be your conference operator today. I would like to welcome everyone to the Eastern Bankshares, Inc. Q4 2020 Earnings Call. Today's call will include forward-looking statements, including statements about Eastern's future financial and operating results, outlook, business strategies, and plans, as well as other opportunities and potential risks that management foresees. timing management's and or that or unknown actual or reflect subject and may implied statements differ results known to statements. to risks the in forward-looking such current those beliefs estimates are cause materially forward-looking Such from events expressed of and uncertainties with set company's to other uncertainties. Securities as caption the such the factors under and forward-looking recent release statements for Listeners are about forth press well referred in contained as the in disclosures filings the disclosures Commission information Exchange the the earnings and risk more and risks Any the this while and the statements specifically to obligation company point forward-looking even represent today, estimates elect may management some to update disclaims management’s change. any forward-looking views estimates made so, views during or company statements do of future, only if the as at call in such not of to date should subsequent rely you And as on as views, representing any management today. statements

certain the financial During of the non-GAAP measures. call company also will discuss

financial be noise. Instructions] the been to mute prevent there any to a at investor.easternbank.com. please release, Bob is found session. Thank of over be call CEO. question-and-answer the For have placed reconciliation speakers’ and remarks, background will you. Company's I'll can lines on note, which turn measures such this a All to to [Operator the being refer event Please GAAP earnings After measures, comparable the recorded. non-GAAP now Chair Rivers,

Bob Rivers

the earnings accomplishments Officer, for Officer, year be call. And was well by for segment XXX you Sullivan, Officer significant Eastern’s you hope I the best Dan morning. the year-history. at Amy. of question-and-answer of the in Thanks joining Thank and happy our us first our families months. Jim ahead. who From Credit Chief Chief one Financial safe been XXXX destined I Good the Administrative am as call you to wish and participate Eastern. a over will almost the Great. well your joined in as have past very XX.X that for Fitzgerald; the Chief doing and today very beginning

began, address our a year our and we justice a to dedicated mission-driven committed helping the the with As providing to history our build impacting to social workplace. equitable, long our mutual to communities diverse, issues and colleagues as work customers, bank, upon inclusive

the history, was when the Our new public two on offering creating online on platforms of team the also agency our significant and same continued we're upgrade initiatives, completion ordinary next in the undertaking our a Eastern’s of the the of circumstances. in management the chapter implementation focused mobile hit. most At insurance banking system, under time, transformative additional initial of pandemic and

could team customers. serve is pivoted safely in continue our our work to Our to our offices to ensure and branches colleagues

to those as SBA loans are low-interest maintaining their loan consumers, clock our establishing banks. this own who the small while And and who leading remote workforce have up colleagues, we number our setting for While totally over secure, needed also XX% there never been billion, X,XXX loans, like same for including production prior much programs to all needed We away the provide Program at outsized $X.X for turned processed suddenly work-from-home. before. Through loans, around an working businesses Protection lifeline, Paycheck of level year. customers, region of to from loan this, of our the

way and fees extreme selected addition, the help restructured many. of reduce by burden borne thousands in In a to we loans financial so

been have unprecedented an way. our We there in also for communities

our the in million communities. Furthermore, in Bank to million a grants Eastern times growing throughout the IPO, donated than our long-term Foundation, which annual greatest share communities serve the in we million, growth. along value our over of Charitable seeing X.X of in As more nonprofit shares, the more XXXX, to Eastern part and our to $XX.X at almost than need Charitable Bank foundation XXXX XX% in our the we are communities, Foundation organizations and high, $XX we previous donated making these

aware and public communities wealth, the gaping widening and people are acutely health, for recognized the the Eastern the and by law impacts Campaign best education highlighted has there other George equity Equality, year of and Rights underscored our work eighth in long been that are Eastern by of and Floyd the wretchedly that XXXX designated by disparities acutely black a places people and tragically laid earning by hurdling, experienced on to last to We as And announced were perfect the as in pandemic and Corporate score color Equality the of most very hard enforcement. Index. the Wall inclusion diversity, as Journal committed its a Street Human in LGBTQ the consecutive was yesterday, leader month. of just one murder

us While much the board, diverse our senior much executive better an with diversity our we we to management do review encouragement have and proud inclusion work are of have that a internal achieve and and equity now support within – for more especially been recognized long to ranks. focus still of undertook we the equity,

regarding in and We acquisition securement transparency introduce tracking improved drive results and with growth continue toward order accountability in along for past of these our a story XXXX metrics greater we to efforts key increased to action build a and was more also upon and Eastern. plan philanthropy, areas. robust talent intentional as development,

PPP largest strong in expanded Our and balance the the capital growth, originations, loan amount deposit sheet by driven our the through history, raised by offering.

our production sales We overall, mortgage years. by also residential highest strong a in many in had year highlighted

solid fintech our supplementing organic insurance are Eastern before excited billion completed current and very with a market company, better successfully our Despite acquisition future. helped the believe Eastern’s challenging raise, optimistic opportunities than growth. from new we and that to Armed we undertake conditions, capital in incubate remain acquisitions we We Labs. positioned about our ever two agency bank $X.X also region,

larger a than in scale rate We in of company against will the expect that us at the providing rapid better serve banks past, to and better allow and resources the to this our bandwidth position more region, customers compete the in component increasing our size and Boston interim, to on market a performance we that. doing improving we earnings key In the are over be our time. our focused like our greater realize efficiency elevating while our in the ratio,

and environment in through ownership That As our our said, plan, And of XXXX, public again, as to or over onsite have our challenging of by employee company we financial steps prior working recognize a stock our that, guidance a customers, community thank who well as the of we expenses XXX,XXX Eastern. more in insurance a to Jim testament accomplishments as of pandemic, with facing to interest it support partners commitment many as increased to performance. for the require stock have of the their Once transitioned rates our new number with believe these their I'll areas, management. offices XXXX. interest ownership over last all including our year, in and we revenue over and colleagues, that and employees in directly, Eastern the of performance, lower do possible. results you made bank Eastern's in especially purchases our reduce continuing expense or turn in-depth in taken in and and for well are driven customer and those the other review in and on financial to by your an talent Board, all our own focus our positions, alignment the fosters nearly years X,XXX us an work to XXX(k) critical those our of and

Jim Fitzgerald

Thanks, lack the and everyone new joining extend combination on a the the publicly of as with in history tables today large as We're $XX.X in million third shareholders fourth to be the We'll Foundation. one-time and you for foundation a quarter, related in who IPO, are a and Charitable to think put future. a to And donated company try will disclosures, provide X.X useful there us. the more we our to than going results a very forward. morning including $XX.X the created and good our of this previously help the pleased I during want assess at special recognize call financial non-GAAP to first This the tried S-X the some We We GAAP Bank drove the the and our they expense items all. this a that Bob. back million be to contribution, these quarter will thank to our to communicated traded everybody of of performance call the encourage make quarter welcome and the read quarter those company, difficult in to information public release. company. information of stock earnings earnings assess In IPO, had net the basis. fourth both our with We've a the XX-Q. shares our connection Eastern million contribution on expense loss on the

quarter this in demonstrates detail, Operating operating to per we is non-GAAP net GAAP $X.XX There income A net was prior income tables the stream operating sustainable quarter core our reconciliation derive million we that share, in especially net $XX.X results. indicate particular, For $XX.X or quarter. the good better believe compared the income. to Appendix earnings compared million, and for how in

liquidity. and $XX.XX pleased customer from quarterly will the results, our shareholders. part deposit and strong we our the to at quarter of financial strong also these $X.XX which company declared capital to return position and flows regularly capital and capital report a I’m performance strong believe dividend of Board allow strong per generating respectively. tangible the and evidenced history We of growth stable initiation per value value Directors of $XX.XX program. Book is cash and and the book dividend share us with pleased company’s our ample invest cash the both share. We’re asset of businesses, to this company’s quality, The fee continued in finished believe management very

the $X.X well the organically XXXX. liquidity the levels, of rate from interest decline to combined as effects margin, a and saw decline were XX net This which excess is interest to resulting of our $X.X basis. or due as to equivalent points X.XX% the raise Looking environment, from quarter up basis tax XX% linked fully we capital deposit our low of billion billion position end

from had this connection we offering half mid-October. expect be the the to our that in for X%, challenged this close loans Quarter-over-quarter environment at decline net And $XXX As over billion and of forgiveness. payoffs to PPP last be balances orders segments. deposit we week certain year the reminder, stock PPP or experienced deferred approximately end. just were quarter the with deferred came of at due a prior customers our million and investor total pay and in on the of growth subscription to PPP at or year in Loan We third customers primarily by instructions, million loans Many as PPP which temporarily in yet loans of were in most held half. $XX loans forgiveness we due $X many simplified proceeds end and declined of IPO, PPP to end. from came with commercial activity forgiven $XX.X remained much were million deposit conversion had costs fees, which the outstanding approximately economic off first the cautious out waiting elevated of were paydowns of year the recognized our of to the remain

securities to liquidity was third in $XXX.X the to the factors. million We prior fourth had PPP we of excess grew quarter, income of million interest $X included incremental than $X fees income in deployed quarter. few the billion more yield. non-recurring million due compared quarter; for million portfolio $X.X fourth fourth Net adjustment. quarter-over-quarter the Commercial $X.X quarter over $X to a [ph] securities as Our favorable agency loan in interest million a million $X our into increased the recognized quarter some for

the basis deposits Our points three points. and deposits quarter six overall cost of interest-bearing the basis was was in of cost

E cash point presentation, we to they don’t forward. and of core a have provide room where from we’re to four going statistics, this the Appendix we reductions to very point release reconciliation useful levels, press of I income our our one-time margin, think of and which future our would proud provided strips item excess very how – income interest the out PPP and in reconciliation a QX. the effects net loans, this and future think interest roadmap provides net about We for quarter everyone non-GAAP these like any Although margin. of

well rate Appendix from release. this Moving income unchanged performed recorded operating in interest to prior important million income, QX. for from environment as basis, non-interest wealth quarter. quarter the in B support $XX.X and in the management, we $XX.X outlined areas On in the of non-interest insurance, all Revenues very and more was million, mortgage an press

of Our non-interest our charitable mentioned, to expense, million from a $XX.X as donation expense included stock the previously foundation.

our the As cash and we’ll defined a plan reduction modest we balance reduce employee expense convert S-X incurred QX. in in forward. disclosed at pension and And also benefit plan conversion. going XX-Q, our $X.X costs expense million in QX. XXXX its pension the to company in of time created an and The we QX, in prior plan ownership related stock This created a of

earlier and gears, better Appendix For release XXXX useful the we would both of view provides provides a of currently non-interest in pandemic. non-interest onset quality items. think we for press B anticipated in operating very we five expense, results, the asset have the income than and our those stable roadmap Switching at quarters as which

in Our allowance of PPP quarter at loans total prior or loans quarter. stands the excluding provision the with for $XXX was X.XX% And and line million the loans. of $XXX,XXX X.XX%

opportunity significant As $X.X CECL which from the from fell work quarter, the reminder, we up for charge-offs modified Most timeframe still QX. pandemic $XX than total timeframe the million our which of points slightly loans Of quarter, excluding a $XXX the provide million down the from customers for at modification more granted and Eastern months in September, original modifications the quarter allow of to the our million modifications million believe the the is of and remaining their of the under end challenges basis loans, remained environment. XXXX for to highly this million change $XXX.X one to believe loan incurred million net in QX our back quarter, repaid We million loans little or end currently $XXX through $XXX been be uncertain an beginning at to expect to the $XXX loans for six-month COVID-XX-related operating has XX and at end the to demonstrates Non-performing of been work the the at PPP end, under six of progress. to their model. of were borrowers were and at granted loss the approach modification. are end were and through best had full. adopt

a expired terms We modified a loan loan typically report subsequent a at the have the which be made and XX% the approximately modified highest their balance is industry also On of modification customers been continue $XXX the continue modified million or as had $XX where is payment, first to XX the end. until a – of later. year totaled it levels modification in have end, hotel quarter been days of percentage at loan million basis, total total to

real second about In addition values. commercial have modifications, disclosures loan added the to loans to some that also estate we’ve

believe will customers. progress in we’ve our through stable with pandemic asset we our and few the is and Officer Q&A As to questions. for Dan is the the your Credit our on very comments is to Sullivan, before available add made be working Chief I that additional view additional turning just questions. our in said like earlier, I’d any quality good a call

mentioned, to amount the I share $XX.XX. hard We estimate. year end previously book per this As was value realized was tangible

been growth H component our capital Appendix I our loan excluding assets equity equity for we’ve specifically reasonably and balances we pandemic. in We I earlier was are mortgage business and that roll parts. tangible call throughout strong. X%. commercial is new believe out didn’t And open XX%. an challenging in levels mentioned to in that business the but certainly with both tangible forward So, loans PPP activity provided have provides close to down QX the that ratios, our

until while commercial potential at to we modest hold, to at expect we and recovery the and pace take to over $XXX And we paydowns million this prepayments a late was be expect commercial Our which growth year year. vaccine the to pipeline year continue, expect the in return end. economic portfolio

the we Given we residential growth in a high few in we’re than to years. position, modest portfolio prepayments looking the in expect to and did our rate said more That mortgages XXXX. the portfolio add liquidity last very

We with we future, or spend future. well overall this it’s as expect on earnings customers, would but our the on digital pleased to the that investments much haven’t capabilities. be this of our more We story the in and we’re products our digital our call increased providing the important focused and or an part of technology as our our continue on release, very by technology to as usage channels time

Bob know example take our we need as expenses company, some we expecting This efficiency an we of transition I previously a As ratio. lower type mentioned and pension is mentioned, new changes time, the to the but to of improve change public our that will are undertake.

$XXX our We structural to in our B, in been This disclosed that annualized two no non-interest expense amount. we in third quarters. XXXX Appendix we’re business. assumes would fourth our three we’re were the As to expenses million today below expect changes $XXX million the operating general and and in in same points and between to there’s annualized environment operating percentage be

your We comments, XX%. to questions. very range This of my expect in rate XX% and be our concludes happy tax to the we’re to effective take

Operator

you. Thank line with DelMonte line your comes Your Instructions] Damon, [Operator open. question from KBW. first is Damon the of

Damon DelMonte

morning, taking my Hey, doing well everyone’s everyone. for Thanks good question. Hope today.

fully ask a you sheet? see balance of the outlook liquidity with vested margin bit core Jim, over next my little the the about that on margin become as first the moving quarters, couple So, wanted you of just direction question the to kind guys especially the and

Jim Fitzgerald

question. joining appreciate all, good of for your Thanks us and first Damon, Sure. morning.

that what we do really be. non-GAAP view comments, out I to is et that referenced tried give what loans, we and my PPP margin The first in we strip to the the liquidity, margin, I how place cetera, there was reconciliation direct you – you to excess core

transferring think forward, fees the PPP we existing securities see $XX.X of in that first in mentioned, a is from I for a forward most XXXX. going our in $XXX expect the that year’s pace. which And PPP million cash of incrementally do you existing gives securities to half million. certainly are I PPP investing that to – we I a this or loans last – – good year baseline going and come that month of from expectations. We at Obviously deferred the about the think the

I think to where be yields yields the feels like the with yields in points. in and quite continue Fed there are that sectors basis caution compressed there competing reinvestment is investment that are very we're buying. – XX investing. we're somewhere between honestly areas we're the It XX The

as So, although it's taken a the from we said do we've pretty do see there. we think very in are tough And going to take enhancement approach environment. past – we a that, measured

Damon DelMonte

it. Got

Okay. to this understood made – to That's Thank make the want respect good comments I the of with you one correctly. you. sure expenses, just about then last color. And

you $XXX to So, to X% expect about for full XXXX. said that third you or And fourth X% million. quarter year said $XXX million below you

kind you $XXX X% of a that X% So, the little at, it that that if cut right? million for is or by year, annualize full call over

Jim Fitzgerald

Correct.

Damon DelMonte

something non-annual maybe on just annually thoughts and your basis? given on established or is going capital to that's capacity the basis couple belt, And semi-annual to feel a you just to maybe that evaluated see a Okay, have your that, guys position, under nice of the that lastly, wondering you once on a you you quarters strong increase are, get then just what dividend, be great. that

Jim Fitzgerald

Board, That's a with Damon. we'll conversation our have

it's point. good So, a

the what level. and this to into work think reasonable it be a is initiated coming priorities think, get I we payout ratio have

that Board. I under to sort public with trying a a wouldn't think our we're time, up are the definitely [ph] say take review we'll time, the get legs of company. arrest at going appropriate think, Nothing I to at a forward expect minimum. at Board as quarters of for but I really couple that with that we'll And more our this still

Damon DelMonte

for Thank my very questions. Great. taking you much

Jim Fitzgerald

Damon. Thanks,

Operator

question the is JPMorgan. next Your Lee your open. of Janet comes line line with from Janet,

Janet Lee

to Good of way I on is morning, get of And Obviously, M&As provide into thresholds the you everyone. some of on color the one still deployed as capital. some bigger may more ton geography targets deploy in describe aspiration in bank primary that M&A landscape considering? the much us also, M&A And that. My be your value market? some have we securities ideal sitting know quarter, would size, Can such to around you and you M&A you're the capital. how a but current first have question of you

Bob Rivers

focused immediately acquisitions company. we're Bob, here is our this at you question. infrastructure in we it appreciate on mean heard and market and current are really is Janet, the past. what Certainly, adjacent is that the it have footprint Well, in Great. trying by the we that say may in or leverage that have the We're to

So, the we do think way that that's that. to best

the the size acquire were In to Generally, was remaining acquire we've as of fairly the in done what a have I terms loan than $X been say generated mutual driving banks past. in regular would around And of those assets billion the of in one did reasons that about acquisitions capital that a we certainly is of just bigger of for banks we've size internally going size. public size. not

that First of available us for acquire. they to size weren't all, at

for many also we a We're this did how us year has agency that'll past much So, remains at to We greater by two years, acquisitions definition, reported than continue. and going insurance at pattern size seen we greater from just you've that's be bank as certainly perspective. looking on a and we're that regular we're focused for as looking but what been have seen, that's public, acquisitions.

in space. capital of nice significant pipeline They're a deals have spend. not that We potential

But a agency, have already. what know, you it. it's As we will supplementary that pretty to sizable again, be

opportunities may again, waiting acquisition see the of what to here, In yield. landscape just terms we're

are this market sector us for in the banking think the in looking point. at I of many recovery

any generally anticipating made in opportunities opportunities we're but have So calls through near known in term, partnership nonetheless immediate interested and it like this certainly that potential not that regard.

Janet Lee

Right.

the prior the even would done acquisitions that obviously consider? MOE your capital with something like of capacity you like Some much past, have you is in that more you've

Bob Rivers

that point at that in time and not certainly Certainly we see anyway. regard in undertake this could don't particular opportunities any

Janet Lee

it. Got

Jim Fitzgerald

Janet, want it's restriction I reminder as a just of conversion. three-year there part add selling those to Jim. a – for Eastern as on was the

technical a to MOA on time. So, the quite this basis, Eastern at doesn't apply question

Janet Lee

Got it.

question for Another maybe Bob.

a donated million upfront you've $XX So, and stopped donation.

when So, I believe that donating few XX% larger done that significant advantage your your the distinction. upfront high-quality you've plan franchise the to what's combined. that known the stop now advocacy I of that have maybe which and your brand your core very combine donation and next But you're would been really deposit going what of donated competitive a company, you charity obviously in years for strategy to past. maintain has Eastern philanthropy, to that this becoming with franchise. That's public around probably to key income than you annual outspoken for and know is

Bob Rivers

future. initial sure contribution, our anything something exceed we was to that contribution this Sure. this Board that to would Well, do the the been sensitive essentially a higher the made our offering was something have it own. level in a would that the result made distribution we've as this into of that think we from could than foundation on we we very that do offering at much able and the And put

big of net to donate not charity, a continued if part income anywhere our We was near been XX% contribution example, we had that the have the foundation. would and For of could the to long to to see many the We've elevated in get as level over foundation for certainly levels many, to time. years that a – many, we could we many for already a as foundation. never

the foundation efforts of were with come of So, of We higher the resources year. total our distribution we before. at than to level indefinitely. X% support foundation much the every least assets think are engagement much we've really of grants that foundation. the a in distributed community really out at had And assets marketplace from a to higher the form the we've the they are Obviously, the started grants most those

primary non-profit about be grants the XX% continue insured future, $X.X are year much very, sponsorships because expensed every may charity that community than in plan really in A foundation. to just that million net or foundation in foundation year. contributions fuel basis, contribute but made Those more they organizations. in So of through will the to income to comes low lot our regardless so lower. really in of has be we the a which for again, lot of past were how form been will to this always the the to current the Those really muted that much we continue to again, of very contribution we've of

past brighter. and same sort that we've the So, even argue I been in short, be would of we'll be able to in the advocate to continue

Janet Lee

squeeze I makes if more right. Right, question. just That sense. And can one

do closer a level the to about ratio of you're into can have eventually Thanks. initiatives you to pension efficiency sort maybe the come So, you're as planning ratio? that look besides on And the if change, execute talk down to you you other maybe level efficiency any XXXX? targeting of pure out efficiency

Jim Fitzgerald

Sure. on it's Jim, going Janet, just that to I'm in jump one.

some think I successful going that time. we over we take we a and is way. – We've a what to tried that do going clearly expenses It as few in very to things very our a got appropriate to here, lower company say we're time. need to we've understand very

as that, things would this we're be had wanted gave gave more misconception second I really in And to more charitable think, looking been have mentioned just step at than make talk to guidance in included was ago, but be very a number I last and at started those the over of there There to would I we a while Nothing us it the are and sure Bob conscious ago time. direction. think, much for remarks thing plan wasn't actions a have a point. you. expense to was earlier. been. We report said, technical a numbers something will in of his I into it. the I difficult pension that It's One We, factored a contribution that very

Operator

comes question next Laurie, from is of line Laurie Your Compass the your Hunsicker line open. with Point.

Laurie Hunsicker

morning. the Hi, exciting And details congratulations on and deck say there. appreciate just Good the I want the I stay release. Very in we could thanks. appreciate and if expenses, the earnings time. to guide just really

look out from is assuming plan that we As XXXX, benefit your further a place. year in into now

numbers think mitigate bit round little maybe Thanks. that's that should that or us about a adding how about So expense help how million we $XX can modeling in? you you annually. Jim, think potentially

Jim Fitzgerald

the I Sure. would little Laura of And see that who to what benefit here. may this The background here have need and year. on plans that. I'm We – expense see approval. say bit very going know doing And you anticipate not a you give the benefit you a won't your you – for to are experience. would would those XXXX. shareholder lot of probably just just start late in is

what studying through. at second the to compensation up our take appropriate say year. would out we're we very We're that Board. that the is this that but that's we're anticipate studying that our need working eager something on to – very We Really doing it's understand on. and management total the it's what – don't of more, really think are half that, I we're and look levels Eastern figure to

it appropriate give other to At views it's coming, this at say studying it. anything of you than commentary we’ll the point, And we need on see we'll more the in our we out time. know what we get I’ll and that, that. hard do, to on closer, report As give process we're we

Laurie Hunsicker

– branch and on Jim, is and just But little and Bob maybe branches. How broadly across comment can just country currently? that banks a you your Can bit. ahead thinking jumping your We're approach this seeing thoughts there? you you the on regional about rationalization are close certainly

Bob Rivers

within it’s Certainly overall And past. typically branch is of a game network something we to a taking years, at the something of the in the look we of fact, our many evolve. that changer continue past at our and made to size, is in that to over physical Yes, something network. there of continue major the that. in improvement Again, efficient. than look the locations, don't the branches And we at at. branches, that given But But certainly the a past, all use that and here channels, channels those, it's rate acceleration In continues of in the in the franchise that make much in higher terms it's use as a et consolidations the think to context, general, can midst given we're with cetera. with branch accelerated we digital of restructuring context of pandemic branch in point, which that's decisions this look digital number we continue our need that see pretty to again, do things, are efficient. we've to number marketplace at others overall closer always we pretty any ways analyze again, in think

Laurie Hunsicker

out of start wondered us great. you thinking buyback kind the sort capital under months over that? you nine you your if about buyback And versus M&A from Okay, just That’s Thanks. would around thoughts Well, management, could of Just buyback. M&A? How Bob a Can just obviously or saw M&A, comment then rank dividend. a, three-pronged regarding buyback great. refresh just you M&A?

Bob Rivers

we'll mindful to our that's And said, we of by M&A. strong engaging a pricing really metrics of relative primary the use well. policy as over look transactions of critical way. again, as to going see mean, the levers our of That mean, capital again, But that certainly we associated M&A very as we're I as the that of buybacks at implementation in dividend in is manage I the discipline as to of grow lever which we're well benefits continue And on the as be to terms those company. M&A. both a to course, benchmark potential Well, in time, able focused capital. ways

Laurie Hunsicker

then one And M&A. question around Bob, thanks. Okay, just last

color a being how is book, a you. you terms and tangible I've that? in focus. certainly back. give process the about in it’s the books early tangible of protective us think And public, around realized earn that Thank of of line you but in sand being about approach Any that can Your dilution,

Bob Rivers

from heard a about as advice how about call, mean, lot that. lot of those on Yes, again, and certainly. guidance I to others received this think about and as this we've a well

those We're acquisitions. appreciate we certainly, metrics we we're something comments do that and thinking other when also about. of So important mindful are

particularly those those of two. know thinking work about a book sensitive and that to deal-by-deal we'll opportunity basis are. we're all as So, you be And look numbers, value those nonetheless, start I it undertake tangible think together. But to we will dilution consider as we at how many an

terms of. we something what going that But numbers. the opportunity see through the get to quite so, an a line of kind hard give mindful basis, an in in sand answer guess when on finally work there. happens And and we're I particular to we're that of

Laurie Hunsicker

Right. Thanks for my taking questions.

Operator

your finial with line comes Civiello Thanks. question your open. Jake, Jake And is of from the line Janney.

Jake Civiello

everyone. morning, Great, good

Bob Rivers

Jake. morning, Good

Jake Civiello

I PPP will your safe know half of be fees most that remarks forgiveness assume prepared it's you in said the to first that in recognized XXXX.

how update on or you're originations in and new two, PPP if ultimately an book have participating two? much You you round in round might

Jim Fitzgerald

sure yes from or may we Jake, double triple Actually, a here.

think round We the and great year customer just about great Eastern. round two. our ago a very in PPP our – one, participating level, at good a I view we're for in for customers a definitely process performance high a thing as felt and

at And me year. into – would read my early have than more. is would is be with last may be think than bit I slower is would very, year definitely Dan a that basis be response. – XX. we've last of he my activities the Coming very Sullivan that a slower it's think percentage little may It's add we I been early. got little we thought this are

Dan Sullivan

the spring billion. good of Yes, loans year in you. last And $X.X – thank our X,XXX we morning. Yes, approximately did year, for last

you totaling that, so in early. $XXX Today, million, year, Again, trying to not to we got materials. again, we've And date. it's received this it's right. about very over-interpret we're very there, round that in the applications X,XXX this found early think I but that's what

Jake Civiello

But that. thinking that point. understand terms I the starting of it in in of about me No, terms helps

So, thank you.

much in do is in the of decline non-interest-bearing subscription dynamics? and I'm quarter deposits, how conversion trying quarter the you estimate saw similar there What the an non-interest-bearing of terms to if you in savings what In in from to for was was growth understand core the have interest-bearing checking?

Dan Sullivan

I don't that right have here, Jake.

be not it. really able to to I'm answer going So,

half I the which the year third it's think increase because and offering. the and conversion the of first of answer the don't quarter hard experienced the I and one, because specific and a last we the good conversion, in what transitions those to most in We believe heavy question. the to I a subscription saw of have year. stuck because recognize your we of blip have were, is which of is question out your But deposits

Jake Civiello

later. follow-up I'll Maybe Okay.

Dan Sullivan

Sure.

Operator

for Ladies On call. conference thank and Eastern participation. concludes this today's behalf gentlemen, of Bankshares you your

now may disconnect. You

Eastern Bankshares (EBC) 29 Jan 212020 Q4 Earnings call transcript