Eastern Bank, America's oldest and largest mutual bank, announced record financial performance in 2017. Annual net income was $86.7 million, an increase of nearly 40 percent from 2016 and an all-time record. Total assets ended the year at nearly $11 billion. Loans, deposits and capital levels also set records. Loans totaled $8.2 billion in 2017, up 7 percent over 2016; deposits were $8.8 billion, up 8 percent over 2016; and capital exceeded $1.3 billion, up 6 percent over 2016. Loan credit quality remained stellar with very low loan losses of .02 percent and non-performing assets below $20 million, leading measures among national and local banks.
"2017 was not only a record for us in many areas, but our strongest performance relative to industry peers in several years," says Bob Rivers, Eastern's chair and CEO. "Strong performance across all our businesses positions Eastern for continued success as we begin our third century in business this spring. We believe our success is proof that you can do well by doing good things that help people prosper. We especially thank our customers and communities we serve for entrusting us with their business, and our colleagues and partners for their many contributions."
Eastern benefitted from rising interest rates and a strong local economy to generate record results. Net interest income was $338.5 million, a $44.9 million increase over 2016 as higher interest rates on loans and investments exceeded higher costs on deposits and other funding. The net interest margin improved to 3.65 percent from 3.33 percent in 2016 and was in the top 15 percent of Eastern's selected peer group.
"All our businesses had strong lending volumes with our Commercial Banking Group having an exceptional year as commercial loans increased by 8 percent over 2016 to $5.4 billion in 2017," says James B. Fitzgerald, vice chair, CFO and CAO. "Our commitment to small business remains as strong as ever, with loan growth of 13 percent, and Eastern was once again ranked the #1 SBA lender in New England."
Other 2017 financial performance highlights include:
- Total premiums written by Eastern Insurance Group exceeded $1 billion for the first time, resulting in record revenues of over $80 million, up 12 percent from 2016, supported by two insurance agency acquisitions in 2017;
- Eastern Wealth Management's investment management fees increased 8 percent to $17.6 million; and
- Ending the year with over $1.3 billion in capital, which met the "well-capitalized" standards set by regulators and maintained an extremely strong balance sheet with excellent loan quality, ample liquidity and robust capital levels.
Eastern launched its Join Us for Good campaign last year in conjunction with the onset of its upcoming bicentennial. This program inspires customers, communities and others to join together to "create a movement" to do good things and help people prosper. It highlights the principles of community service, philanthropy and advocacy that are at the core of Eastern's mission.
In 2017, the Eastern Bank Charitable Foundation provided about $8 million in more than 2,000 grants. Supporting immigrants was a priority in 2017 with $1.7 million in 178 grants going to organizations addressing immigration across Massachusetts, New Hampshire and Rhode Island. In addition, Eastern employees donated more than 59,000 hours to organizations and causes important to them. In celebration of the Bank's 200th anniversary in 2018 and to honor its first depositor, Rebecca Sutton, Eastern Bank Charitable Foundation has announced Advancing Women as its 2018 Targeted Grant focus and will commit $1.8 million to community-based organizations focused on addressing a wide range of issues that disproportionately impact women and girls.
Founded in 1818 and celebrating its 200th anniversary in 2018, Boston-based Eastern Bank is America's oldest and largest mutual bank, with $11 billion in assets and over 120 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire and Rhode Island.
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