Eastern Bank
| Company type | Public |
|---|---|
| Industry | Banking |
| Founded | April 15, 1818 in Salem, Massachusetts, United States |
| Headquarters | Boston , United States |
Area served | Massachusetts, New Hampshire |
| Products | Banking services |
Number of employees | 100+ (from acquisition of Wainwright Bank) (2010) |
| Website | easternbank |
Eastern Bank, headquartered in Boston, is a prominent financial institution. Prior to its transition from mutual ownership in 2020, it held the distinction of being the oldest and largest mutual bank nationwide, as well as the biggest community bank within Massachusetts.
By 2016, Eastern operated 95 branches and commanded a 3.2% share of the Massachusetts banking market. Established in Salem in 1818, the bank subsequently relocated first to Lynn and later to Boston’s Financial District. The late 1990s saw Eastern embark on an ambitious growth strategy. In 2020, the bank declared its intention to become a publicly listed company.
History
Eastern Bank was originally chartered on April 15, 1818, under the name Salem Savings Bank by a Canadian dentist and obtained FDIC insurance in 1983. In 1989, its parent entity rebranded it as Eastern Bank and restructured it into Massachusetts’ inaugural mutual holding company.
Post-reorganization, Eastern expanded through acquisitions of several local banks, including Shore Bank And Trust Company and Malden Trust Company in 1992, First Colonial Bank For Savings in 1993, and Saugus Bank And Trust Company in 1994.
In 1997, Eastern launched an expansion initiative targeting a twofold increase in size within five years. The acquisition of Hibernia Savings Bank from Quincy for $80 million in 1998 marked its first significant step south of Boston.
In November 2002, Eastern merged with its subsidiary Eastern Bank & Trust Company. The following year, headquarters relocated from Lynn to Boston’s Financial District, positioning it alongside major regional banks such as FleetBoston Financial and Citizens Bank.
Subsequent purchases included Plymouth Savings Bank in 2005, Sharon Co-operative Bank in 2007, and MassBank Corp., based in Reading, acquired for $170 million in 2008. This last transaction doubled Eastern’s deposits in Middlesex County to over $1.4 billion and secured approximately a 4% market share there.
Eastern further expanded in June 2010 by acquiring Wainwright Bank along with its 12 branches for $163 million, adding more than 100 employees and strengthening its presence around Boston.
The July 2012 merger with The Community Bank of Brockton represented Eastern’s fifth mutual-to-mutual consolidation.
In March 2014, Eastern entered an agreement to acquire Centrix Bank & Trust, headquartered in Bedford, New Hampshire; finalized in October 2015, this deal introduced six branches in southern New Hampshire—marking Eastern’s initial retail expansion beyond Massachusetts borders.
Following the de-mutualization announcement earlier that year, Eastern completed its initial public offering in October 2020, raising $1.8 billion at a valuation of $19 billion.
On April 7, 2021, Eastern agreed to merge with Century Bank of Medford for $642 million, with Eastern remaining as the continuing entity.
In September 2023, Eastern divested its Natick-based subsidiary Eastern Insurance Group to Arthur J. Gallagher & Co.
Most recently, on July 15, 2024, Cambridge Bancorp merged with Eastern Bankshares, Inc., further broadening Eastern’s footprint within regional banking markets.
Philanthropy
The bank’s charitable division, Eastern Bank Charitable Foundation, has dedicated over $10 million towards aiding communities impacted by the COVID-19 pandemic.