Parents Company Financial Statements

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed financial information relative to Eastern Bankshares Inc.'s (“the parent company”) balance sheets at December 31, 2021 and 2020 and the related statements of income and cash flows for the years ended December 31, 2021, 2020 and 2019 are presented below. The statement of shareholders’ equity is not presented below as the parent company’s shareholders’ equity is that of the consolidated Company.


BALANCE SHEETS
	As of December 31,
	2021		2020
	(In thousands)
Assets
Cash and cash equivalents(1)	$	134,671	$	741,034
Goodwill and other intangibles, net	744		744
Deferred income taxes, net	17,974		10,817
Investment in subsidiaries	3,250,133		2,674,133
Other assets	3,080		1,324
Total assets	$	3,406,602	$	3,428,052
Liabilities and shareholders’ equity
Other liabilities	$	250	$	—
Total liabilities	250		—
Shareholders’ equity	3,406,352		3,428,052
Total liabilities and shareholders’ equity	$	3,406,602	$	3,428,052

(1)Includes $133.5 million that is eliminated in consolidation as of December 31, 2021. The entire balance as of December 31, 2020 is eliminated in consolidation.


STATEMENTS OF INCOME
	For the Year Ended December 31,
	2021		2020		2019
	(In thousands)
Expenses
Professional services	$	7,393	$	1,485	$	360
Charitable contributions	—		91,287		—
Other	222		151		105
Total expenses	7,615		92,923		465
Loss before income taxes and equity in undistributed income of subsidiaries	(7,615)		(92,923)		(465)
Income tax benefit	(11,344)		(13,933)		(131)
Income (loss) before equity in undistributed income of subsidiaries	3,729		(78,990)		(334)
Equity in undistributed income of subsidiaries	150,936		101,728		135,432
Net income	$	154,665	$	22,738	$	135,098


STATEMENTS OF CASH FLOWS
	For the Year Ended December 31,
	2021		2020		2019
	(In thousands)
Cash flows provided by (used in) operating activities
Net income	$	154,665	$	22,738	$	135,098
Adjustments to reconcile net income to cash provided by operating activities
Equity in undistributed income of subsidiaries	(150,936)		(101,728)		(135,432)
Issuance of common shares donated to the Eastern Bank Foundation	—		91,287		—
ESOP expense	9,408		2,351		—
Change in:
Deferred income taxes, net	(7,157)		(10,817)		—
Other, net	(388)		(350)		25
Net cash provided by operating activities	5,592		3,481		(309)
Cash flows used in investing activities
Investment in Eastern Bank	—		(882,096)		—
Cash paid for acquisition, net of cash acquired	(640,890)		—		—
Return of investments in subsidiary	140,000		—		—
Net cash used in investing activities	(500,890)		(882,096)		—
Cash flows provided by (used in) financing activities
Proceeds from issuance of common shares	—		1,792,878		—
Purchase of shares by ESOP	—		(149,407)		—
Payments for deferred offering costs	—		(28,552)		(346)
Payment of subordinated debentures assumed in business combination (1)	(36,277)		—		—
Payments for shares repurchased under share repurchase plan	(23,224)		—		—
Dividends declared and paid to common shareholders	(51,564)		—		—
Net cash (used in) provided by financing activities	(111,065)		1,614,919		(346)
Net increase in cash and cash equivalents	(606,363)		736,304		(655)
Cash and cash equivalents at beginning of year	741,034		4,730		5,385
Cash and cash equivalents at end of year	$	134,671	$	741,034	$	4,730

(1)The Company deposited funds into escrow prior to the Century acquisition date to pay the balance of subordinated debentures assumed in the Century acquisition which was considered to be defeasance of the debt. Accordingly, Century recorded a payable to the Company in the amount of the escrow deposit and the Company recorded a receivable from Century in the same amount. The payable was reclassified to other assets upon acquisition and is reflected as such balance in the summary of net assets acquired included in Note 3 to the consolidated financial statements. Subsequent to the closing of the acquisition and prior to December 31, 2021, the amounts placed in escrow were disbursed to the holders of the subordinated debentures resulting in a full pay-off of the outstanding balance of the debt.