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Eastern Bank Commences Stock Offering

Shares Will Sell for $10; Trade Under Symbol EBC On Nasdaq

Keith Griffin

August 19, 2020

Eastern Bank CEO Bob Rivers

Eastern Bankshares Inc., the proposed stock holding company of Eastern Bank, is commencing its stock offering in connection with Eastern’s conversion from the mutual holding company structure to the stock holding company form of organization. Eastern Bank also announced that the registration statement for the sale of the company’s common stock has been declared effective by the Securities and Exchange Commission.

The company is offering for sale up to 175,375,000 shares of common stock at a purchase price of $10 per share, although the company may sell up to 201,681,250 shares of common stock because of demand for the shares or changes in market conditions, without resoliciting investors.

Eastern’s common stock has been approved for listing on the Nasdaq Global Select Market under the symbol “EBC.”

The shares will first be offered in a subscription offering based upon the following priorities:

  1. To each Eastern Bank depositor with aggregate deposit account balances of $50 or more (a “qualifying deposit”) at the close of business on March 29, 2019;
  2. To each Eastern Bank depositor with a qualifying deposit at the close of business on March 31, 2020;
  3. To Eastern Bank’s employee stock ownership plan and Eastern Bank’s 401(k) Plan; and
  4. To employees, officers, directors, trustees and corporators of Eastern Bank, Eastern Insurance Group LLC, or Eastern Bank Corporation who are not otherwise eligible.

The company intends to mail the subscription materials beginning on Aug. 20, 2020. The subscription offering is expected to expire at 2 p.m., Eastern Time, on Sept. 16, 2020. Eastern may offer the shares of common stock remaining after the subscription offering for sale to members of the general public in a community offering, with preference given to residents of cities and towns of Massachusetts and New Hampshire that constitute Eastern Bank’s primary market area.

Completion of the offering is contingent upon Easterb selling at least 129,625,000 shares of common stock and also is subject to the receipt of final regulatory approvals for the offering and conversion and other customary closing conditions.

Eastern received all of the approvals required to commence the offering, including the approvals of the Massachusetts Commission of Banks, the Federal Reserve Board, and the corporators of Eastern Bank Corporation, which is the current mutual holding company of Eastern Bank. The corporators also approved the company’s plan to donate to the Eastern Bank Charitable Foundation upon the completion of the conversion a number of shares of common stock equal to 4% of the shares that will be outstanding immediately after that donation.

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