Eastern Bank

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the bank founded originally as Salem Savings Bank in 1818 in Massachusetts, USA. For the other banks with similar names, see Eastern Bank (disambiguation).
Eastern Bank
Type Cooperative
Industry Banking
Founded Salem Savings Bank, 1818
Headquarters Boston, Massachusetts, USA
Key people Richard Holbrook, Chairman and CEO
Net income IncreaseUS$27.238 million (2009)[1]
Total assets US$6.59 billion (2009)[2]
Website www.EasternBank.com

Eastern Bank is the largest independent, mutually owned bank in New England and the largest community bank in Massachusetts.[3][4] With 82 branches, Eastern has a 2.83% market share in Massachusetts as of 2009.[5] 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.

History[edit]

Eastern Bank was established on April 15, 1818 as Salem Savings Bank and became FDIC insured on October 1, 1983.[6] 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.[6][7]

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).[6]

Former MassBank location in Downtown Melrose. Divested after temporary rebranding.

In 1997, Eastern began an aggressive expansion program with the aim of doubling its size within five years.[8] 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.[7][9] 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.[6] 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.[6][8]

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.[3][10] 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.[10] 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", was purchased for $163 million or $19 a share; almost double its $9.62 closing stock price prior to the announcement.[11]

References[edit]

  1. ^ https://www.easternbank.com/SiteCollectionDocuments/PDFs/eb_annual_report.pdf
  2. ^ https://www.easternbank.com/site/about_us/services/Pages/balance_sheet.aspx
  3. ^ a b Staff (March 11, 2008). "Eastern Bank Corp. acquires Massbank Corp. for $170". The Boston Globe. Retrieved April 20, 2010. 
  4. ^ McLaughlin, Tim (February 23, 2010). "Bay State banks saw profit bounce in 2009 Read more: Bay State banks saw profit bounce in 2009 - Boston Business Journal:". Boston Business Journal. Retrieved April 20, 2010. 
  5. ^ Douglas, Craig (October 16, 2009). "The Top 20: Massachusetts bank deposits and market share leaders Read more: The Top 20: Massachusetts bank deposits and market share leaders - Boston Business Journal:". Boston Business Journal. Retrieved April 20, 2010. 
  6. ^ a b c d e "History of Eastern Savings Bank, Salem, Massachusetts". Federal Deposit Insurance Corporation. Retrieved April 20, 2010. 
  7. ^ a b Division of Banks (February 26, 1998). "Decision in the matter of the merger of the Hibernia Savings Bank, Quincy, Massachusetts with and into Eastern Bank, Lynn, Massachusetts". Office of Consumer Affairs & Business Regulation. Retrieved April 20, 2010. 
  8. ^ a b Staff (January 8, 2010). "The Best of the Decade: Eastern Bank". Boston Business Journal. Retrieved April 20, 2010. 
  9. ^ McCabe, Kathy (November 2, 1997). "Eastern Bank is thinking big Acquisition of Hibernia Savings in Quincy to start a 5-year plan". The Boston Globe. Retrieved April 20, 2010. 
  10. ^ a b McLaughlin, Tim (March 11, 2008). "Eastern Bank buying MassBank for $170M". Boston Business Journal. Retrieved April 20, 2010. 
  11. ^ Wallack, Todd (June 30, 2010). "Eastern Bank to buy Wainwright". The Boston Globe. Retrieved August 30, 2010. 

External links[edit]