Why did EBC's earnings trend upward in 2024?

Eastern Bankshares Inc (EBC) experienced an upward trend in earnings in 2024 due to several key factors: 1. **Merger Impact**: The merger with Cambridge Trust has significantly enhanced EBC's position as a leading community bank, particularly in the Greater Boston area. This strategic move has resulted in a stronger balance sheet with a tangible common equity ratio of 10.7% and no wholesale funding. 2. **Wealth Management Growth**: EBC's wealth management business has seen substantial growth, with assets under management exceeding $8 billion, making it the largest bank-owned investment advisor in Massachusetts. This segment's performance has been a notable contributor to the overall financial health and earnings of the bank. 3. **Loan Growth and Diversification**: Despite challenges, EBC has seen growth in certain loan segments, such as commercial loans, which have contributed to the increase in net interest income. The company's focus on commercial real estate, C&I (Commercial and Industrial) loans, and community development lending has been successful in generating loan growth. 4. **Net Interest Margin Improvement**: EBC's net interest margin has improved, increasing by 33 basis points to 2.97%. This improvement is a result of effective interest rate management and the overall strength of the bank's net interest income. 5. **Dividend Increase and Share Repurchase**: EBC announced a 9% dividend increase, reflecting confidence in its financial stability and future growth prospects. Additionally, the company has been actively repurchasing shares, which can enhance shareholder value and contribute to earnings per share through reduced share count. These factors, among others, have collectively contributed to EBC's upward earnings trend in 2024. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |EBC|EBC.O|Eastern Bankshares|2024 Q1|1.57592E8|3.8647E7|0.24|185| |EBC|EBC.O|Eastern Bankshares|2024 Q2|1.53997E8|2.6331E7|0.16|185| |EBC|EBC.O|Eastern Bankshares|2024 Q3|2.03383E8|-6188000|-0.03|185| |EBC|EBC.O|Eastern Bankshares|2024 Q4|2.16542E8|6.0771E7|0.3|185| |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |EBC|EBC.O|Eastern Bankshares|2024 Q1|119.91128101557993|191.86680968148113|120|185| |EBC|EBC.O|Eastern Bankshares|2024 Q2|-45.884456501633885|-8.221488509583294|-46.666666666666664|185| |EBC|EBC.O|Eastern Bankshares|2024 Q3|-110.4680865461066|30.071884473209604|-108.33333333333334|185| |EBC|EBC.O|Eastern Bankshares|2024 Q4|-80.91980295319038|35.29985129275333|-84.61538461538461|185|