Eastern Bankshares (EBC) 25 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to the Eastern Bankshares, Inc.

Third Quarter 2024 Earnings Conference Call. Today's call will include forward-looking statements including statements about Eastern's future financial and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to risks and uncertainties that may cause actual results or the timing of events to differ materially from the views expressed today.

More information about such risks and uncertainties is set forth under the caption forward-looking statements in the earnings press release as well as in the Risk Factors section and other disclosures in the company's periodic filings with the Securities and Exchange Commission. a during today, represent no and update statements made estimates views obligation statements information these of new as the as forward-looking this events. management's call and to or Any future of result company undertakes

company During both GAAP measures. also and the will discuss non-GAAP certain call, financial the

Instructions] Please the being For press be can release, to measures, note this refer is non-GAAP investor.easternbank.com. event that a [Operator reconciliation of to please recorded. which found financial GAAP the earnings at company's

now the of Rivers, Board. I'd turn Executive Chair Please Bob to over to like call ahead. and the Chair go

you, Thanks and our CFO, our a continuing to quarter is third Thank team James CFO, good senior and me CEO, who is adviser Eastern's Lori, and morning, former new for joining today our as With management call. everyone. Board serve David our our Sheahan; Directors. to Denis of Rosato; earnings Fitzgerald,

in Boston more achieving institution a a our in solutions step combined wealth as offerings. our vision, and as personalized bank our management forward third organization. transformational history Board stronger, and comprehensive local newly future we quarter leading to represents completed combination positioning and This powerful the us strategic our private banking Trust, robust full-service in forward greater Eastern's offering region's commercial competitive Cambridge look the on personal, moment addition as closed integration, team to with and a a marked more leadership The expanded merger

our geography. Whereas on focus larger competitors wider a

only management that our but community Hampshire New within lending which other make of investments raises is to England, a families markets as Southern serve. Eastern team not well demonstrated strategic commitment we Massachusetts as and the here, and New Our and entirely lives is areas by

is Time deep of and understanding markets our differentiation a our of we and that communities. again, local customers point from hear

our true and compete we community for at our the better our larger a have we technology have as core, remain communities we serve. only strong and that talent we can Although business, our the customers' grown be to colleagues customers, bank to understanding serve and as

during companies to named lender of As charitable Disability Ranked XXth XX was for as Eastern Boston XXth the Business recognized Massachusetts most the Place And Disability:IN Inclusion. Best Work for the in recent among by consecutive the this, a past #X evidence in the year. quarter Massachusetts SBA Journal the for XXXX time. by was

organizations Eastern the the women-led was once recognized top And Women's again Foundation in among by Bank the Edge. Massachusetts leading

hard X,XXX in to to our deliver upgrade wealth Of major of make mobile greater my addition possible our a online Eastern, deliver communities. for at is requires a from very dedication all results course, our successfully and and to for value who each commitment completed customers systems these their team also work, our banking management colleagues this to to other, transitioning new platform. effort It customers which shareholders order in our and total incredibly of support and banking and

discuss Denis, I'll business detail our handing to financial will before off the that, over to more in it it to David hand With results. who discuss

commentary. Thank we reference will we and our number slide posted Bob. you them you, encourage a on a of review David I slides, Please have in presentation note as the website to our and

operational quarter I wealth want team our to reiterate the completed and colleagues proud has Bob's banking, I'm divisions. work across comments of our about at the Eastern. our incredibly during

us, on opportunity can ahead. benefits and we now the With realizing the the conversions merger the and merger of behind growth focus

Hampshire. Greater includes attractive bank deposit Greater community serving Southern Boston which share Massachusetts New markets the largest are Boston, Hampshire New Eastern and market largest with the the We the fourth within MSA,

the state Massachusetts business with largest in bank-owned and management largest under makes investment us assets $X our addition, overall. over wealth in in adviser In combined the management the billion XXth

future to are to and greater why wealth our the in firm, in fuller position the I'll market. of the bring how and the in spend to We services greater I time is our banking compelling excited base client like and speaking our management but suite capability giving on understand detail to you'd we know performed the you merger. sense to a of of

get let's into So that.

model understand I'm XXXX, to sure otherwise you and was in important backdrop a is original interest differences the can in economy the there from number are the the this September merger since an and guidance. of merger rates, variances announced

In Slide short, outperformed per on charges, X cost deal we accretion outperformed. overview. the earnings original savings. We gives share an guidance and

common of of a the equity tangible tangible are year. sheet over smaller past the either value due than capital to or changes better projected and balance Importantly, significantly form originally book in combination a rate

sheet the is balance balance Trust to resulted we along sell Securities in borrowings pay Cambridge in healthier as lower with smaller marks on and interest portfolio as Street the Estimates. share decided quarter compared the value lower even than sheet. fair decision, X, The announcement, Slide resulted off associated which projected per earnings changes This the rates an shown with in in to since

hard loans front, real in On and category, the cycle. office, particularly are estate took will appropriate note Cambridge commercial we a look the we which at the of at stage reserves you this credit feel increased

in was take for for reserving X.X% We allowance aggressive loan expanded The in quarter. an company's losses the prudently approach challenges. potential overall to

in total for loans X% investor category. that our represents reserve loans of example, an As office

has are So marked is and stronger quality terrific. in expectations. the We is asset for. good original summary, merger, accounted Capital regarding relative about to well and we feel where client been retention

it financial balance sheet future earnings pre-merger than by David will stronger Eastern and providing liquidity, the of for outlook capacity some for markedly are rest top provide regarding of the and I with an capital very strong detail growth. metrics and QX, saying, preface

our a per share. finally, And to Board David? dividend I'm report that to pleased increase $X.XX X% approved has

Thank financial I'll merger the the the you, with the moving into for Denis. full of Cambridge quarter. before review start results third

on July XX. third the the quarter a reminder, merger in As closed early

announced that on mentioned, the a successfully we just to achieve year ago. Denis As are financial track over merger-related were targets

part we closing, the the sheet. mark-to-market merger Cambridge balance As of

X but The a accounting $XXX I'll expected, adjustments year closing, million relative came million estimated Slide interest $XXX key at the through a value rate significantly in differences. final the outlines as fair mark for time estimates than lower at walk of was ago. Those purchase to loans on announcement. few

credit current I'll by asset of for on year estate from PCD color driven provide remarks million a The The quality. The of loans credit increase mark mark loans Cambridge was later very given commercial additional result on $XX review the the loans. was environment. real in the that my expectations at ago mainly office in sector is thorough challenges closing. a all

of therefore, after days and eliminate This mark Cambridge closing income. sold not the accreted mentioned, into all Cambridge's $XX The million to $XXX investments million, per annum. Denis wholesale funding. used As equates the to of be will securities in Eastern $XX original the to proceeds million

X, for acquired estimated the and accretion will accretion amortization schedule going loans. notable fair earnings have is impact we Slide an discount the marks of value provided the that on of On forward. Most

lives totals a into million income $XXX over we million reminder, will those which credit loans. $XX loans non-PCD As interest the loans, accrete on on of million rate plus mark the $XXX mark a

quarter income of approximately $XX for create will $XX each this expect the million to next year. We million

subject best changes we rates will based will Those on loan to available, rates. prepayments schedule based you the on actual interest in accretion prepayment as time. but have have loan know, be We modeled information be market accretion over the recognized

If decline, in see rates loan accelerated recognition to the we'd creating of prepayments faster categories, certain discount. expect associated

loans pretty on loans. levels, to it's the rates where refinance current underlying fall they although to borrowers these to rate incentive remember from However, the rate interest far and important that This low. are loans are have before rates fixed have off means today that marked are relatively to pay would

strong reason, merger, and and stream the predictability. all of a on its believe have we Eastern is with that customers. with income higher has to against level growing protection strong prepayment risk committed these aspects Cambridge we fostered this Consistent For should the relationships of have continuing this assets

pay new to accretion will acquired As income. yields drive creating in income, reduction at replaced market continuing time, down a Cambridge loans the loans interest with the over loans be legacy

half non-interest quarters. be expect these bottom quarter over $X the about per Combined, to Slide core amortization of and the which wealth X, intangibles, expected we provide expense. deposit intangible few next non-cash expenses million will we in included the In also of be

I'll GAAP net as results a We into for merger expenses. of loss the items, our X on as in Slide well M&A move $XX.X the reported the million million now X. third third primarily day expense $XX.X in non-PCD quarter, to of $X beginning non-recurring loan reserve million the due quarter

to X.XX%. is which sheet, basis income $X.XX operating On million $XX.X a XX an by of higher operating was margin, This the driven per level points in quarter share. net increased earnings larger balance a basis, higher or

the On our balance revenues to million the $XX.X third fee The income than sheet very side, strong. remains more quarter. wealth doubled in

$XX.XX. value Tangible per book at share the ended quarter

raise a dividend, $X.XX stock quarterly Board quarter. in Our of in a XXX,XXX $XX.X the repurchased average total for of at price approved of $XX.XX an shares and the million we

remains also quality strong. Asset

$XXX increased been discuss reserved due million, loans was increase for. quality the to conservatively my Although PCD non-performing in more remarks. have asset loans to I'll that later

both Slide GAAP quarter. summary return a Transitioning results metrics. for of statement the income and provides XX operating to the and

to an higher GAAP mentioned, was prior the The increase reserve driven net quarter than $XX.X million which XX%. of Operating non-PCD considerable the merger for of $X in loans. merger, Cambridge our credit appeared income of As provision the loss due on million in included I the $XX for places. by quarter, items. million quarter losses There $XX.X million three was was noise in

that Non-interest $XX.X and expense income asset expenses non-interest write-down income. million of million $X other salaries non-interest in concentrated included was in benefits. a fixed And contained

operating breakout when at the Note expect Slide in going cover tax tax for XX outlook update And for elevated a full I'll XX.X%. rate few that provide Please our during we a forward modestly the an costs M&A quarter. rate minutes. of on was quarter our the I see

that to It's had of we the the margin partial XX. Slide July on on XX. beginning impact important quarter a remember merger to Moving

X.XX%. margin our basis on September, FTE an For was

margin which XX was and we had basis. Slide an QX deposit on payment provide million, benefit, towards our operating Remember, cuts non-interest of curve especially Fed $X.X results. We on income yield third $XX.X normalizes the $XX.X quarter in the if in by encouraged an recent the million shape. are and traditional additional Total rate termination growth skewed upward early a expect to the sloping by million

increased $X.X the fees driven Cambridge performance. from Deposit in under million $X.X third in $XX.X as million market strong assets well increase the management as were million $XXX,XXX. in from quarter. mid-QX. the $XXX,XXX were will quarter, be fees by charges Wealth to in in of temporarily income Please increase These reinstated weighed note deposit contracting the that our customers, for new an certain quarter, Cambridge service third approximately charges service for

$XXX.X and on basis. There to million to Slide quarter linked the an $XXX.X million XX. noninterest in Moving primary Total drivers operating expense was change were two operating expenses.

First, salaries increased colleagues operating of the Cambridge. an due and $XX.X benefits million basis on to addition from

to increase amortization expense core wealth an $X.X saw management the of in we Second, million deposit amortization of and due intangibles. the

reflected mentioned earlier, merger-related we of I As the cost in QX results. vast have majority saves

XX post deposits, from the and on is in shows extremely deposits wholesale mid-XXs with ratio We the level in $X.X balance loans The assets, sheet Slide tangible ratio essentially funding. billion approximately and balance billion of billion of loan-to-deposit added sheet total and merger. $X.X no borrowings in equity The XX.X%, Cambridge. $XX.X a in investments loans, a common healthy

in and a in deposits was with slow flat essentially loan levels by Organic driven quarter decline growth seasonality. the

are local our for at our we economy, into optimistic point We in XXXX. about the moving and prospects rate the are growth cycle, inflection

and added Moving We quarter-over-quarter while XX deposits changes The high-quality deposits Cambridge XX. and key muted. merger. loans to Slides through activity organic to the on remain related

checking basis combined very XX% our and approximately deposits cost at of franchise. deposit points, is have demonstrating strength to contained deposit of our continue XXX accounts. the total total We And well the

and billion loans $X.X loan loans in residential $X.X billion another the Cambridge. added we from On side, of commercial

new serve are We and which customers are transition to for are making to customers, welcome efforts seamlessly, the about who went those continue and Eastern. concerted the enthusiastic Cambridge we to

points which basis Cambridge basis $XXX.X goodwill. the reserves credit The million million. stands impacts at to quarter the last of day was the increased from allowance build to recorded Slide of PCD the XXX XX. Moving to of offset points $XX and allowance this comprised to were quarter, XXX with X on The Cambridge

$X on $X of and line a million. was provision day several X $XX totaled The non-PCD Additionally, provision legacy with million. loans past Eastern million, the quarters in we charge-offs booked

loans million Let's $XX at office over expanded beginning how acquired closing. the now of at assess of announcement credit the last at the the year, estimated non-PCD of due impact look credit was million deterioration $XX time mark on we take a in primarily the market. on XX. was Cambridge loans closer and The to and versus Slide combined portfolio PCD The at loans PCD pool the

property us sales increased the of Over distressed past picture giving have office year, a values. clearer

the $XX million recorded Slide allowance balance via principal of goodwill. PCD these XX million recorded of of loans. associated was loans loans, through was or a shows with gross-up We of that PCD total X% unpaid total $XXX the Cambridge reserves

post Slide XX total to about total investor highlights office which loans of loans. Criticized legacy loans, of $XXX classified office pre-investor or totals merger, office unchanged XX% and exposure percentage. our from or increased investor million Eastern's $XXX million X%

investor $XXX reserves against X% have totaling office We million our of loans. $XX million or

loans. quarters. loans PCD driven non-performing basis Legacy $XXX looking points levels loans the increased or provides allowance or Slide of of the basis to the total We of coverage very loans total charge-offs with from points strong non-performing very Eastern addition recent XX million When $X.X XX at on loans. Cambridge of by portfolio. comfortable remained stable quarter asset $XXX million were for of overall feel Net XX, in the quality million loan

which our is only. to outlook, now QX Moving for

guidance to expect through once budget annual our We XXXX work process. in January, we provide

flat. we be QX, loan expect relatively For balances to

in acquired that indicator declines million While we Deposits are Bank year, we don't of late commercial the maturing positive in Century is lending QX, a anticipate seeing much in cater build typically loan leading and in mid-November. growth seasonal pipelines, exhibit growth. have maturity future for we the deposit $XXX from a

interest X.XX%. net margin interest and interest to -- to and expect between income $XXX X% net million $XXX of net margin million be We

going As benefit I on income rate. short-term interest of of XX% mentioned rates in net book Approximately the earlier, loan we expect declines hedges net forward. to interest the short-term margin and resets

book. to inclusive on XX% down, expect of interest-bearing the way be our CD to XX% We betas deposits on our

be is of about range and expense is million. with million non-interest fully expected be $XXX saves. million $XX expected includes in between to non-interest amortization Operating million This to the to income Operating million. intangible of $XX cost achieved $X $XXX

We also in non-operating anticipate in $X million million expenses to M&A $X QX.

the the the year rate Lastly, normalize full for we of to to XX%. tax XX% range expect in

for quarter, for your our concludes and open the That now questions. comments we'll line the

your comes line Instructions] Piper And Mark Sandler. of the Fitzgibbon [Operator first question with from

bring initial we deal on the Congratulations deal. anybody their It's charges in that rare see projections. below

you the of the up first job. points of follow guess made. On question, pipeline wondered strong. they I were share of to you great So said my David, that size you on a I pipelines, it. and could loan complexion couple if us with the

I'll Sure, Mark. Well, Denis handle that. let

the is level its this yes, at So year. third commercial highest loan pipeline

I'll $XXX that's level June, admittedly, a our two off just of the numbers. coming $XXX give The now the It's low of was end pipeline at Now fairly but million. end June, you million.

that, optimistic than into certainly year we're to of continue June. heading better So that it's and grow it will at the end the was new

an and CRE? what mix it estate? is is Or of even that that look Or like? does real commercial And Denis, mostly C&I

and estate, very and lending, some of just we're increased all And will community commercial new year. continue activity seeing in three we're Good the development certainly real active into hopefully businesses. -- seeds early C&I mix of

I was Mark, ahead. go --

No, David, no, please. sorry.

bringing was the going completion the to just normal, inwardly of and that colleagues. I merger been our the of add on focused on we've to

an a just, sense in as to starting among I Fed is think, cycle customers build this demand positive well. other to easing aspect market of the the beginning and the

then, to like Slide forward interest helpful. net and to XXXX. think margin comments the around margin expect that the you you to your sort accounting X was year, might discussion Okay. Can the of I of It Great. where And able about in follow sounds the purchase heard end get adjustments help we be assuming curve? gradually across the by us rise the

if of I more So normalized liability would I interest changes we're liability we upward sensitive about would more we say becomes the a sloping. curve things. But sensitive parallel or think couple shape are of yield modestly in rates. the say when

So more interest of path rates. is the much which likely

and a relative as almost the impactful. X rate worth short you every if the point it parallel worth end So But Xx way move think is is if XX curve basis basis specific points XX long rates, to is, about instead had point. X the of falls moves, every margins, about about basis would I of basis points,

Great. of might that Okay. other wondered And the from, of then say, you share I could how sort the come loans have if increase related versus with $XX much million us PCI non-performing Eastern was side? stuff in

The $XX million increase.

the certainly were of office. the Cambridge the increase most from that loans in biggest in So the the Mark, and non-performers loans, component Cambridge PCD quarter, was of

the those that think, broadly that you I in and And office. entirety. year. the deteriorated were knowing with loans worth but think, And office the quarter. We also our its investor did loans, sharing that loans our a how the I million third all it's second the team through office went those in majority recognize $X over in review. through vast We've certainly team office re-underwritten of category process thorough evaluating has the very market this past

did massive We It team. it. by was a effort our

Our each of our close a with happening and very contact good borrowers loan. sense is team with what's have in

So and And every each every to we review determine reserved. $X are if risk it's they of over this loan again, rated quarter, credit million. re-underwritten appropriately

book investor as the X.X% been quarter. reserve, quarter. of X% the the is noted, end in reserve deterioration our portfolio, overall, comments, office mentioned we And against And at we've of result year, the our we've total the at And the with against clearly, established the this which as reserve this, has a and of those Cambridge some strong seen here office very loans. office end

the of quarter. at we We have in risk the strong fully the these So very loans accounted for believe actions. end

KBW. Damon with from line Your of the comes next DelMonte question

just with you I cost I you to regards the majority got of out. the guess, think, noted saves expenses,

little 'XX. go Just commentary there's savings from feel bit for you looking Do like of additional a we the of opportunities base? kind extract some expense as into to

bit coming short is, Damon, The little the Cambridge speed still of and learning work for that to organization with it's you. time most reasons. and of shorter spent shared I'm months. a transaction purchase on two I'm accounting David. just the my being caveat maybe. response I answer the just for here then only up we X

cycle. the budget at starting But we're the of secondly, we're just -- beginning

I So those, has Denis. haven't through worked one of neither

talking guidance for by fourth better So year, full lot about giving that the when have we'll quarter think because I better January, the and clarity, at the point. we're we'll a organization know

Okay. just And stronger and then with Fair the ratios the obviously, enough. to with value given in tangible closing. capital regards capital, the change in came book marks deal

wondering on do then flexibility? just the you active And Just your were this the thoughts quarter. kind have capital you thoughts of any potential are saw I securities also, on what restructuring, greater given buyback?

Yes.

-- sensitive the the you bought spent of we can mostly being We million We So under rather see stock. volume numbers. than sensitive. quarter just $XX price

execution You VWAP. $X the about can our below was see

certainly talking to are We is think it value. right. have growth, or And restructuring sense Hopefully, excess But about. still it the can still execute securities we talking our pipelines capital. about was supports is a whether stock that loan a on makes do Denis good very buybacks. not. plenty You're We the we of the reality

as it's But on -- knows, our there's or we're the we we pros those that's not, committees -- transactions. discussion thinking and may call about actively it. So to and everyone may an ALCO cons active at

a balances Great. quarter. quarter then were end the of bit the I higher last cash the just And appreciate that lastly, than color. little at

it Or be of asset used average curious of guys going the sheet? deposits kind about reinvested -- it there short as in will on stay Just you forward. earning of to of cash outflow how that? balance the an have fund be think we will the assets. securities? that Does are kind Just billion Is to earning $X.X base

the quarters? target what's kind a of Just good over coming

Sure. Thanks.

$XXX think, just up shy linked I million of right million, It's So quarter. part. cash around is $XXX

thinking that securities just to utilize about also So some is while just of cash. purchases we're said about our restructuring, security thinking I ALCO

expect So feeling growth, is XXXX. about we're we organic XXXX, planning QX the we beginning sorry, flat our we're -- of QX, but loan QX. the at loan in not just just goal growth for I'm telegraphed, better though,

We expected Century did from call legacy out deposit. the maturity

million what -- If early you'll a November, because won't termination. won't prepayment that's a we that in happen We an in was penalty. maturity. to We just to QX. go it's -- recall, deposit happened similar until QX expect received it $X.X

fund deposit security will, will b, that a a, So we're have we'll little some cash fund not that, probably purchases. very still but on cash growth, outflows some of sitting healthy loan bit all that, additional a position of that plus lead to modest seasonal

comes And from Research. Laurie with line the Seaport your of Hunsicker question next

And start specifics. Wondered could just to if echo some office, though Mark's congratulations. we with just

non-accruals can commercial very of the you much specifically, So the versus breakdown just us banking? is gave with versus of of CRE then business share you that non-performers? that how million, C&I $XXX office million, And $XXX

to we're on the to -- talk with the in PCD share and the terms loan, happy of you go not into what increase going is is Laurie, detail But in categories. specific about -- PCD against the in category overall, So and assigned loans I'm that non-accruals we given as largest We're largely environment had you was there at weakening office can the reserves in it. office significant understand, the Cambridge. the was and specific the -- office

Right. Okay.

the disclosing PCD -- plus you $XXX was Am you're I -- on just all that an don't legacy to have have how million commercial going much So real office you whatever well, estate, so Eastern your office? performers? not is assume

the significant About were that PCD that's against office, reserve X/X most it. $XXX and million of the loans, had the category the

totally that. I understand

we can I Just for I'm Or non-performers back just understand to come the mean, what that. purposes, tracking to maybe are? trying office

rates, can then coming about guess, coming that of the those much on due color And how $XXX of you quarters? classified in help million, you're office, think of that? any and criticized about loans in here me is vacancy I just your terms thinking how So

closed this ability value transaction, the of fair start PCD, non-PCD. do from would Laurie, all So to we starting we the marks, had these point I

quarter was distressed which So since especially deal the real in estate, then year, and announcement ascertain in last more easier you're to values there translates fourth distressed announcement, into deal and office. -- sale late commercial prior it's to the starting of starting this to and year quarter into, it's property much see sales, then one in third

So when we office over when signs the that purchase period, through knowledge benefit the is of than substantially starting estate time And went deal real to to we had the have hopefully, over weakened accounting we're some was weakened that stabilization. commercial announced. the better reality time period. And see

is that reserve. and we caught investor office So purview in I total million, our this. of called approach healthy script, of kind reserve $XXX Denis our against out as out very X%

So we $XX quarter, the next what very this on maturities, out million Page right, quarter. are in $XX XX, small future break billion

there So fully for accruing. is expected. of loans but The the loan are one that within $XX No rest on example, additional million, it's non-accrual, reserved for. loss

all there's no quarter second there's 'XX $XX any special concern of reserves. accruing, loans. go of They're to about you no through those million, If

We at maturity. expect all off to be paid

So $X point would legacy you our walk quarter charge-offs is, about XXX are only though add net and $X other just And points are QX, of by our we're linked driven. levels. up point reserves through reserve. Eastern million, I merger in basis million at being if reserve The think standing

of first you And all going of market, I Committee, that teams in my impressed. the I'll comments teams for CECL myself mean, in about has well whole understanding in our loans gives newcomer been of credit speak -- of a That short and here, practice our a his my this re-underwriting first portfolio here. QX awful allowance as committee time, heard here the understanding the our of on have Standard through that an talking confidence very of and process, period cycle. me around been commercial and portfolio, the lot observing credit QX. the top through loans, Denis

Right.

so so I I deck, guys appreciate And that. your helpful. details have it's and -- all given appreciate you the

here. more one question office sorry, So just

about Eastern $XX you of us maybe Or that had fully of, guess, said Any in to So color the terms just received, that I help next my from maturing it's color I was that about thinking going terms how credit, that is extended? reserved? that million of can vacancy is though. rates? and half that? quarter, actually an of should you think million in you loan, we notes Any be be $XX in

So $XX loan, David, it's million -- an it right? wasn't

Yes. loan for. There's reserved $XX non-accrual fully million on

what coming think was It's say say maturities did I mean or Laurie, Eastern to were portfolio. clarify I that you to more said, portfolio. Cambridge's those just legacy of from not some all

Right.

Okay.

that Your going in you're to forward us appreciate I and January. guidance, refresh

things. net and accretion two X? Just laid Number your Slide you out the one, that does schedule interest include income margin guide, in

Yes.

a Okay. rate, general this just is and And of question. sort then tax more

-- legacy would rate? a the forward are quarter back thinking such swing. added In other Sort we XX% fourth helpful they're give a there was we next guidance be of as Just on because there's CATC tax that beyond maybe you're we Eastern look to rate tax any can year, how looking words, higher helpful. to you or should be thinking it about wild

Yes.

going be year XX% It normal year. takes some just is what basically before, next through the to tax X have on stuff. from the XX%. we to outstanding years tax close still we I a issues page, Taxes have probably budget. gone nothing like We're years haven't think, every little look post-merger Again, complicated. can to

that least -- So of XX% is of run is I'm we XX% this a rate could quarters XX% for but QX, a thinking at bunch think some to today, probably to in have I variability forward.

see a help little Great. you us this bit think about And Can M&A you. just deal then how You've last to M&A? just Denis, you question, in completed Eastern?

Laurie. thanks, So

is merger lot even for and focus the Century thinking version, Cambridge us capitalize our the to back on. of there's to on the opportunity integration So a of

we're to call a focus be very, this were a organic lot if capability all on said, we And that very on about at I'm worked engage merger. very, again, the There's to team opportunity pleased growth. effectively. opportunity an that But is firm. focus be that growth. our it of this a going on the our So of primary primary well how with integration very organic But Cambridge so would to very team confident got arise, if able merger the is

are the this remarks. now Bob Rivers to call There at over questions I will time. no further closing for turn

interest your next more a call to Well, January. for you and the sharing thanks, your holiday we forward with wishes healthy then, Until and at our questions, season. best and end look for of happy during everyone, earnings

this concludes today's And Thank you. participating. call. conference all for Thank you

disconnect. now may You