What drove EBC's earnings growth in 2024?

Eastern Bankshares Inc (EBC) experienced a notable earnings growth in 2024, driven by several key factors: 1. **Strategic Mergers and Acquisitions**: The merger with Cambridge Bancorp was a pivotal event. It not only expanded EBC's footprint but also enhanced its financial capabilities. The merger added significant assets and liabilities, with loans increasing by $3.7 billion and deposits growing by $3.9 billion. This strategic move bolstered EBC's market position, particularly in New England. 2. **Wealth Management Growth**: EBC's wealth management segment witnessed substantial growth, with assets under management surpassing $8 billion, making it the largest bank-owned investment advisor in Massachusetts. This segment's expansion contributed significantly to the overall earnings growth. 3. **Loan Growth and Asset Quality**: Total loans increased by $115.3 million or 3.3% on an annualized basis, ending at $14.1 billion. The company reported strong asset quality with a reduction in non-performing loans from $57 million to $40 million. This indicates effective risk management and a healthy loan portfolio, which supported earnings growth. 4. **Dividend Increase and Share Repurchase Authorization**: EBC announced a 9% increase in the quarterly cash dividend, reflecting confidence in future performance. Additionally, the authorization of share repurchases signaled confidence in financial stability and potential growth opportunities. 5. **Operating Efficiency and Cost Management**: EBC demonstrated resilience in net interest income, which increased to $169.9 million, up 32% from the previous quarter. The company's operating net income rose by 36% from the previous quarter to $49.7 million. This indicates effective cost management and operational efficiency, which supported earnings growth. In summary, EBC's earnings growth in 2024 was driven by strategic mergers, wealth management growth, loan growth, dividend increase, share repurchase authorization, and operating efficiency. These factors combined to deliver robust financial performance and improved profitability.