Eastern Bank
Encyclopedia
Eastern Bank is the largest independent, mutually owned bank
in New England and the largest community bank in Massachusetts. With 82 branches, Eastern has a 2.83% market share in Massachusetts as of 2009. Founded in 1818 and originally based in Salem
and then Lynn, Massachusetts
, the company began an aggressive expansion campaign near the end of the 1990s and moved its headquarters to Boston's Financial District.
insured on October 1, 1983. On October 19, 1989, Eastern Savings Bank's parent company Lynn, Massachusetts
-based Eastern Bank Corporation, renamed it Eastern Bank, while also reorganizing it into a mutual holding company
, making it the first of its kind in Massachusetts.
In the years following its reorganization, it made several acquisitions of local banks. They included Shore Bank And Trust Company (Lynn, April 1992), Malden Trust Company (Malden
, May 1992), First Colonial Bank For Savings (Lynn, October 1993), and Saugus Bank And Trust Company (Saugus
, November 1994).
In 1997, Eastern began an aggressive expansion program with the aim of doubling its size within five years. The first acquisition of the program was initiated in early 1998 when Eastern bought the ten branch Quincy
-based Hibernia Savings Bank and its parent holding company Emerald Isle Bancorp, Inc for $80 million and converted all branches to Eastern Banks. Eastern, with the bulk of its branches north of Boston, gained exposure to the market south of Boston through the acquisition.
In November 2002, Eastern Bank merged its operations with its subsidiary, Salem
-based Eastern Bank & Trust Company. The following year in March 2003, company headquarters were moved from Lynn to Boston's Financial District, positioning it alongside the regional headquarters of other large banks including FleetBoston Financial
and Citizens Bank
.
Continually expanding its footprint in the region, Eastern purchased Wareham
's Plymouth Savings Bank in May 2005 and Sharon Co-operative Bank in May 2007. Eastern Bank announced in March 2008 its intention to buy Reading
-based MassBank Corp. for $170 million. Eastern's third acquisition in the past four years, it doubled its deposits in Middlesex County
to more than $1.4 billion, garnering a 4% market share in the county. In late June 2010, it was announced that Eastern Bank was the winning bidder to acquire independent Massachusetts bank Wainwright
and its 12 branches located in Boston and the surrounding communities. The bank, "known for its social activism and lending to nonprofit organizations", will be purchased for $163 million or $19 a share; almost double its $9.62 closing stock price prior to the announcement.
Cooperative banking
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world....
in New England and the largest community bank in Massachusetts. With 82 branches, Eastern has a 2.83% market share in Massachusetts as of 2009. Founded in 1818 and originally based in Salem
Salem, Massachusetts
Salem is a city in Essex County, Massachusetts, United States. The population was 40,407 at the 2000 census. It and Lawrence are the county seats of Essex County...
and then Lynn, Massachusetts
Lynn, Massachusetts
Lynn is a city in Essex County, Massachusetts, United States. The population was 89,050 at the 2000 census. An old industrial center, Lynn is home to Lynn Beach and Lynn Heritage State Park and is about north of downtown Boston.-17th century:...
, the company began an aggressive expansion campaign near the end of the 1990s and moved its headquarters to Boston's Financial District.
History
Eastern Bank was established on April 15, 1818 as Salem Savings Bank and became FDICFederal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
insured on October 1, 1983. On October 19, 1989, Eastern Savings Bank's parent company Lynn, Massachusetts
Lynn, Massachusetts
Lynn is a city in Essex County, Massachusetts, United States. The population was 89,050 at the 2000 census. An old industrial center, Lynn is home to Lynn Beach and Lynn Heritage State Park and is about north of downtown Boston.-17th century:...
-based Eastern Bank Corporation, renamed it Eastern Bank, while also reorganizing it into a mutual holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, making it the first of its kind in Massachusetts.
In the years following its reorganization, it made several acquisitions of local banks. They included Shore Bank And Trust Company (Lynn, April 1992), Malden Trust Company (Malden
Malden, Massachusetts
Malden is a suburban city in Middlesex County, Massachusetts, United States. The population was 59,450 at the 2010 census. In 2009 Malden was ranked as the "Best Place to Raise Your Kids" in Massachusetts by Bloomberg Businessweek Magazine.-History:...
, May 1992), First Colonial Bank For Savings (Lynn, October 1993), and Saugus Bank And Trust Company (Saugus
Saugus, Massachusetts
Saugus is a town in Essex County, Massachusetts, United States, in the Greater Boston area. The population was 26,628 at the 2010 census.-History:Saugus was first settled in 1629. Saugus is an Indian name believed to mean "great" or "extended"...
, November 1994).
In 1997, Eastern began an aggressive expansion program with the aim of doubling its size within five years. The first acquisition of the program was initiated in early 1998 when Eastern bought the ten branch Quincy
Quincy, Massachusetts
Quincy is a city in Norfolk County, Massachusetts, United States. Its nicknames are "City of Presidents", "City of Legends", and "Birthplace of the American Dream". As a major part of Metropolitan Boston, Quincy is a member of Boston's Inner Core Committee for the Metropolitan Area Planning Council...
-based Hibernia Savings Bank and its parent holding company Emerald Isle Bancorp, Inc for $80 million and converted all branches to Eastern Banks. Eastern, with the bulk of its branches north of Boston, gained exposure to the market south of Boston through the acquisition.
In November 2002, Eastern Bank merged its operations with its subsidiary, Salem
Salem, Massachusetts
Salem is a city in Essex County, Massachusetts, United States. The population was 40,407 at the 2000 census. It and Lawrence are the county seats of Essex County...
-based Eastern Bank & Trust Company. The following year in March 2003, company headquarters were moved from Lynn to Boston's Financial District, positioning it alongside the regional headquarters of other large banks including FleetBoston Financial
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts–based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo.-History:...
and Citizens Bank
Citizens Financial Group
Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont. Citizens is a wholly owned...
.
Continually expanding its footprint in the region, Eastern purchased Wareham
Wareham, Massachusetts
Wareham is a town located in Plymouth County, Massachusetts. As of the 2000 census, the town had a total population of 20,335, with an estimated 2008 population of 21,221....
's Plymouth Savings Bank in May 2005 and Sharon Co-operative Bank in May 2007. Eastern Bank announced in March 2008 its intention to buy Reading
Reading, Massachusetts
Reading is an affluent town situated in Middlesex County, Massachusetts, United States, some north of central Boston. The population was 24,747 at the 2010 census.-Settlement and Independence:...
-based MassBank Corp. for $170 million. Eastern's third acquisition in the past four years, it doubled its deposits in Middlesex County
Middlesex County, Massachusetts
-National protected areas:* Assabet River National Wildlife Refuge* Great Meadows National Wildlife Refuge* Longfellow National Historic Site* Lowell National Historical Park* Minute Man National Historical Park* Oxbow National Wildlife Refuge...
to more than $1.4 billion, garnering a 4% market share in the county. In late June 2010, it was announced that Eastern Bank was the winning bidder to acquire independent Massachusetts bank Wainwright
Wainwright Bank
Wainwright Bank was a nationally recognized socially progressive bank in Boston, lauded as a "rebel with a cause making its reputation as a champion of social-justice causes, throwing its support behind everything from the gay-rights movement and affordable housing initiatives to immigration reform...
and its 12 branches located in Boston and the surrounding communities. The bank, "known for its social activism and lending to nonprofit organizations", will be purchased for $163 million or $19 a share; almost double its $9.62 closing stock price prior to the announcement.