Eastern Bankshares, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in total assets, which rose to $25.5 billion from $21.1 billion at the end of 2023, primarily driven by the merger with Cambridge Bancorp completed on July 12, 2024. This merger added approximately $5.3 billion in assets and $3.9 billion in deposits to Eastern Bank's balance sheet.

For the three months ended September 30, 2024, Eastern Bankshares reported total interest and dividend income of $266.0 million, a 31.6% increase from $202.2 million in the same period of 2023. Net interest income also rose to $169.9 million, up 23.8% from $137.2 million year-over-year. However, the company reported a net loss from continuing operations of $6.2 million, a stark contrast to the net income of $63.5 million for the same period in 2023. This loss was attributed to a significant increase in the provision for loan losses, which surged to $47.0 million from $7.3 million in the prior year, reflecting the impact of the merger and increased risk in the commercial real estate sector.

Total noninterest income for the quarter was $33.5 million, a substantial increase from $19.2 million in the previous year, bolstered by higher trust and investment advisory fees resulting from the merger. For the nine months ended September 30, 2024, net income was $58.8 million, a recovery from a net loss of $94.2 million in the same period of 2023.

The merger also led to a significant increase in total loans, which reached $18.1 billion, up 29.3% from $14.0 billion at the end of 2023. Commercial real estate loans rose to $7.2 billion, while residential real estate loans increased to $4.1 billion. The allowance for loan losses increased to $253.8 million, reflecting the merger's impact and a rise in non-performing loans, which reached $124.5 million, up 162.3% from the previous year.

On the expense side, total noninterest expenses for the quarter increased to $159.8 million, up 57.0% from $101.7 million in 2023, largely due to merger-related costs and increased salaries and benefits from the expanded workforce. The company also recognized $27.6 million in merger-related expenses during the quarter.

Overall, Eastern Bankshares' financial performance reflects the complexities of integrating a significant acquisition while navigating a challenging economic environment, marked by rising interest rates and increased provisions for loan losses.