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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating activities      
Net income $ 199,759 $ 154,665 $ 22,738
Adjustments to reconcile net income to net cash provided by operating activities      
Provision for (release of) allowance for loan losses 17,925 (9,686) 38,800
Depreciation and amortization 14,957 14,479 15,827
Accretion of deferred loan fees and premiums, net (1,441) (27,991) (14,574)
Deferred income tax expense (benefit) 6,023 (5,313) (20,359)
Amortization of investment security premiums and discounts, net 18,274 16,713 5,585
Right-of-use asset amortization 13,016 12,703 12,082
Share-based compensation 10,507 0 0
Increase in cash surrender value of bank-owned life insurance (3,699) (2,348) (2,188)
Loss (gain) on life insurance benefits 663 (1,813) (174)
Loss (gain) on sales of securities available for sale, net 3,157 (1,166) (288)
(Gain) loss on sales of bank premises and equipment, net (1,412) 4,715 73
Loss on lease termination/modification, net 593 2,182 0
Amortization of gains from terminated interest rate swaps (10,193) (31,234) (15,889)
ESOP expense 9,923 9,408 2,351
Issuance of common shares donated to the Eastern Bank Foundation [1] 0 0 91,287
Other 17 (526) (587)
Change in:      
Trading securities 0 0 961
Loans held for sale (3,354) (47) (1,133)
Prepaid pension expense 4,338 1,130 (24,055)
Other assets 823 61,501 (89,590)
Other liabilities (49,934) (22,882) 48,984
Net cash provided by operating activities 229,942 174,490 69,851
Investing activities      
Proceeds from sales of securities available for sale 431,193 23,798 9,097
Proceeds from maturities and principal paydowns of securities available for sale 1,049,522 939,575 452,392
Purchases of securities available for sale (740,770) (3,323,893) (2,111,773)
Proceeds from maturities and principal paydowns of securities held to maturity 17,399 0 0
Purchases of securities held to maturity (493,678) 0 0
Proceeds from sale of Federal Home Loan Bank stock 63,715 6,692 749
Purchases of Federal Home Loan Bank stock (94,174) (2,101) (527)
Contributions to low income housing tax credit investments (19,487) (11,379) (12,372)
Contributions to other equity investments (788) (2,519) (4,395)
Distributions from other equity investments 1,170 337 201
Proceeds from life insurance policies 20,446 0 1,347
Net (increase) decrease in outstanding loans, excluding loan purchases (926,255) 380,807 (719,041)
Purchases of loans (380,234) 0 0
Acquisitions, net of cash and cash equivalents acquired (13,400) (13,439) (1,363)
Purchased banking premises and equipment, net (8,627) (5,728) (5,144)
Proceeds from sale of bank premises and equipment 17,313 21,981 0
Proceeds from sale of other real estate owned 0 125 646
Net cash provided by (used in) investing activities (1,076,655) (1,985,744) (2,390,183)
Financing activities      
Net (decrease) increase in demand, savings, interest checking, and money market investment deposit accounts (1,751,953) 1,155,868 2,674,672
Net increase (decrease) in time deposits 1,098,001 (58,144) (70,280)
Net increase (decrease) in borrowed funds 706,550 2,580 (207,346)
Repayments of acquired subordinated debentures [2] 0 (36,277) 0
Contingent consideration paid (668) (263) (165)
Proceeds from issuance of common shares 0 0 1,792,878
Purchase of shares by the ESOP 0 0 (149,407)
Payment of deferred offering costs 0 0 (28,552)
Payments for repurchases of common stock (201,618) (23,224) 0
Dividends declared and paid to common shareholders (65,886) (51,564) 0
Net cash (used in) provided by financing activities (215,574) 988,976 4,011,800
Net (decrease) increase in cash, cash equivalents, and restricted cash (1,062,287) (822,278) 1,691,468
Cash, cash equivalents, and restricted cash at beginning of period 1,231,792 2,054,070 362,602
Cash, cash equivalents, and restricted cash at end of period 169,505 1,231,792 2,054,070
Cash paid during the period for:      
Interest paid 35,241 5,354 13,684
Income taxes 41,751 43,299 35,128
Non-cash activities      
Net increase in capital commitments relating to low income housing tax credit projects 55,233 28,291 25,816
Net decrease in operating lease right-of-use assets and operating lease liabilities relating to lease remeasurements (see Note 8, “Leases” within the Notes to the Consolidated Financial Statements) 14,836 0 0
Maturity of acquired securities sold under agreements to repurchase [3] 0 274,982 0
Initial recognition of operating lease right-of-use assets upon adoption of ASU 2016-02 0 0 92,948
Initial recognition of operating lease liabilities upon adoption of ASU 2016-02 $ 0 $ 0 $ 96,426
[1] Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020.
[2] 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 a 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.
[3] Includes non-cash item representing maturity of acquired securities sold under agreements to repurchase which were converted to deposits upon maturity.