Eastern Bankshares, Inc. (NASDAQ:EBC), a Massachusetts-based federally chartered savings institution with a market capitalization of $3.4 billion and an attractive dividend yield of 2.78%, announced the departure of two long-serving board members.
The bank has demonstrated strong momentum, with InvestingPro data showing a remarkable 28% price return over the past six months. Effective December 31, 2024, Paul M. Connolly and Paul D. Spiess resigned from their positions on the Board of Directors, both for the company and its subsidiary Eastern Bank.
The resignations were in accordance with the company's Corporate Governance Guidelines, which include mandatory age limitations for board members. Both Connolly and Spiess stepped down without expressing any disagreements with the company's operations, policies, or practices.
According to InvestingPro analysis, Eastern Bankshares maintains strong financial health with expected net income growth and sales expansion in the current year. For deeper insights into EBC's financial outlook and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Connolly, who joined the Eastern Bank board in 2011, was a part of the Audit and Nominating and Governance Committees before his resignation. With a 36-year background in banking operations, payment systems, and regulatory oversight, he retired from the Federal Reserve Bank of Boston as the First Vice President and Chief Operating Officer.
Spiess, a board member since 2014, served on the Audit, Compensation and Human Capital Management, and Risk Management Committees. His experience includes decades in community banking and financial services, notably as the former Chairman of the Board of Centrix Bank and Trust, which merged with Eastern in 2014.
Robert F. Rivers, Chair of the Board and Executive Chair of the Company, expressed appreciation for the contributions of both Connolly and Spiess, particularly during the last five years of significant transformation for the company. Rivers highlighted Connolly's extensive experience and Spiess's expertise in community banking, wishing them well in retirement.
The company filed the 8-K form with the Securities and Exchange Commission on January 7, 2025, to report these changes. This filing, as required by the SEC, provides shareholders and the public with timely information on events that could affect the company's financial condition or operations.
Trading at a P/E ratio of 7.74, Eastern Bankshares has maintained a consistent dividend growth track record, having raised its dividend for four consecutive years. Investors seeking detailed valuation metrics and additional ProTips can explore the comprehensive analysis available on InvestingPro.
In other recent news, Eastern Bankshares has reported significant growth following its merger with Cambridge Trust, securing its position as the largest community bank in Eastern Massachusetts and New Hampshire.
Despite a GAAP net loss of $6 million due to merger-related expenses, the bank posted an operating net income of $49.7 million, a 36% increase from the previous quarter. Furthermore, Eastern's wealth management assets have exceeded $8 billion, and it continues to be the leading SBA (LON:SBA) lender in Massachusetts for the 16th consecutive year.
In terms of future expectations, Eastern projects a net interest income of $175 million to $180 million for Q4. Operating non-interest income is estimated to be between $33 million and $34 million. The full-year tax rate is expected to normalize between 22% and 23%. However, the bank also reported an increase in non-performing loans to $125 million, primarily due to PCD loans from Cambridge.
These recent developments reflect Eastern's strategic moves, such as a 9% dividend increase and a share repurchase program, indicating confidence in the bank's post-merger financial health. As Eastern continues to integrate Cambridge Trust's operations, it remains focused on driving growth while maintaining its strong community ties.
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