Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Each of these promotions is representative of long times thoughtful succession planning as well as the tremendous talent and bench strength within our organization |
| So I would say our managed asset team who does a very good job here |
| We are also very pleased to announce our Board approved a 10% increase in our dividend from $0.10 per share to $0.11 per share, which will be paid in December, demonstrating our confidence in both our strategic direction and our operating results |
| In the midst of these 2 significant transactions, we produced strong operating results during the quarter |
| We have very good regulatory relations as does Cambridge as did Century |
| A leading market share in some very attractive markets and a fully marked acquired balance sheet |
| In spite of the increase in costs, we continue to be confident that our lower cost deposit portfolio will be a long-term competitive advantage |
| We believe focusing on our balance sheet strength will position us well for when the environment improves |
| Aside from the office portfolio, all other loan categories are performing well and our credit metrics are in a very strong position |
| We believe that we have made significant progress on the efficiency goals we set at the time of our IPO in 2020, for both our efficiency ratio and expense to assets ratio and expect further improvement as we combine with Cambridge Trust |
| Our asset quality metrics continue to be very strong in Q3 with credit losses below 1 basis point and continuing low levels of nonperforming loans |
| Our balance sheet strength continues to be a focus and a source of strength |
| Both our regulatory and GAAP capital levels are strong relative to requirements, as compared with many of our peers, our loan deposit portfolios are of high quality and our wholesale funding levels at 5% of assets are low |
| We will continue to look for ways to strengthen the balance sheet even further over time, but believe this strength is a competitive advantage |
| Looking ahead, we are very excited about the future opportunities as we merge with Cambridge Trust, our enhanced market position, increased scale and capabilities, along with significantly larger wealth management and private banking businesses will provide a stronger platform for future growth in earnings than we have historically had |
| Asset quality remained very strong with essentially no net loan charge-offs and NPLs were up from Q2 but still a very low 34 basis points of loans |
| Capital levels remain very strong with a CET1 ratio of 16% and a fully marked tangible equity to tangible assets ratio, which includes unrealized losses on HTM securities of 8.5% |
| Both are very important strategic transactions for us and combined will lead to a stronger balance sheet, enhanced market share and a platform for future earnings growth that we are very excited about |
| As always, most of the credit for this goes to my 2,100 colleagues, who continue to ensure that Eastern remains the strong and reliable financial and community partner we have been for the past 25 years, as well as to our customers and community partners for their business, support and partnership |
| Once again, we are pleased with our results this quarter and feel very confident regarding Eastern's future growth and performance |
| Deposit costs were well contained, up 11 basis points in the quarter from 1.22% to 1.33% and interest-bearing deposit costs were up 18 basis points from 1.71% to 1.89% |
| Gallagher approaches, we send our best wishes for continued success |
| We have worked very hard to keep our wholesale funding levels at modest levels and we think an efficient balance sheet is in our long -- in our shareholders' long-term interest |
| As I conclude my remarks, I express my thanks and deepest appreciation to all of our Eastern Insurance Group colleagues for their many contributions to Eastern's overall success and culture over the past 21 years |
| We continue to be very focused on the challenges in commercial real estate in general and the office sector, in particular but we remain very confident in our long-term approach to dealing with customers, which serve us well throughout the rest of this cycle in all economic cycles |
| We are very pleased to announce a 10% increase in our dividend from $0.10 to $0.11 per share, which is payable in December |
| Although this was very positive and an additional economic benefit of the transaction, it's a onetime event |
| So good job on your part there |
| To repeat one of the comments Bob made, we have made significant progress on our expense efficiency since the IPO in 2020 and we look forward to creating more efficiencies as we merge with Cambridge in 2024 |
| I have every confidence they will continue to excel leveraging Gallagher's market-leading capabilities and we look forward to partnering with them and serving our mutual clients |
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| It's a challenging environment for all office properties, but especially those in urban markets and particularly those in the Boston Financial District |
| This will put additional pressure on our net interest margin and net interest income in Q4 and early 2024 |
| They had vacancies in the building, which led to deteriorating cash flow, and they had the borrowers have elected not to support the assets |
| The decline in net interest income was primarily due to the reduced size of the balance sheet |
| Net interest income was $137.2 million, down $4.4 million from the prior quarter |
| We are finding loan demand to be limited as our customers are being cautious in part due to the higher level of interest rates |
| Total assets declined approximately $400 million from June 30, due primarily to declines in cash and securities |
| As I mentioned, the net interest margin was 2.77%, which was down 3 basis points from Q2 |
| We expect the net interest margin to decline in Q4 to the mid-260s and for net interest income to be between $127 million and $132 million |
| They are battling vacancies now and cash flow issues |
| One reminder is that discontinued operations are not included in our operating net income, which makes comparisons with the overall expectations difficult |
| As I mentioned on the call in September, the transactions do create some short-term noise in our results |
| The combined company is expected to produce 20% earnings accretion in a very challenging environment, have significant levels of both regulatory and GAAP capital |
| It was volatile high in the first half of the year, it was volatile low and was actually negative in the third quarter, and we expect it to kind of revert to the mean in the fourth quarter |
| We took the opportunity to sell approximately $200 million of shared national credit loans out of our commercial loan portfolio at a $2.7 million loss during the quarter |
| The net interest margin of 2.77% was relatively stable quarter-to-quarter, down just 3 basis points from Q2 |
| So I get a little worried about the Class C because different people have different definitions |
| The one thing I always get worried about doing one specific month on the margin, there's always lots of ins and outs, and September happens to be a seasonally lower month for municipal deposits |
| Excluding the sale of the shared national credit loans we described in the presentation, core commercial loan growth in Q3 was modest, and we expect it to stay that way for the next few quarters |
| Actual charge-offs for the quarter were less than 1 basis point |
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