BOSTON, June 18, 2020 /PRNewswire/ — Eastern Bank Corporation, the mutual holding company of Eastern Bank, today announced that its Board has unanimously approved a plan to convert to a fully public stock holding company, which will be known as Eastern Bankshares, Inc. As part of the conversion, Eastern intends to give the Eastern Bank Charitable Foundation a 4% equity interest in Eastern Bankshares.
Since its founding in 1818, Eastern has been committed to providing competitive financial products and services and an outstanding customer experience, while making meaningful contributions to the communities it serves. The capital that is raised in the offering will enable Eastern to better serve its customers and communities by making additional loans to businesses and consumers, investing in new technology and delivery systems to enhance existing or the development of new products and services, and supporting the advancement of its employees. The additional capital will also allow Eastern to pursue strategic growth opportunities primarily by acquiring other banking and insurance agency businesses as opportunities arise.
“We are proud of Eastern Bank’s history as the oldest and largest mutual bank in the United States and our enduring commitment to our customers, colleagues and communities,” said Bob Rivers, Chair and CEO of Eastern Bank.
Mr. Rivers added, “The conversion also provides an opportunity to build upon the incredible commitment of our depositors, employees, corporators and community partners. We want to express our greatest appreciation to them and look forward to making this offering available. I am confident that Eastern’s dedication to building lasting relationships with our customers, colleagues and communities will remain as strong as ever after the conversion.”
Transformational Donation to the Eastern Bank Charitable Foundation
Since 1999, Eastern has historically donated an average of 10% of its net income every year to charitable giving. As a testament to this commitment, and as part of the conversion, Eastern will make a one-time stock donation to the Eastern Bank Charitable Foundation (EBCF). At the closing of the offering, the Foundation will own 4% of the shares of Eastern Bankshares common stock then outstanding. The donation is expected to increase the size of the Foundation’s endowment by approximately 50% to nearly $180 million, based upon the mid-point of the offering valuation range discussed below.
The stock donation will enhance EBCF’s partnerships with communities across its footprint through financial support of nonprofit organizations, employee volunteerism, advocacy, and collaboration with other businesses and community partners, and establish an even stronger endowment by which the Foundation will fund these ongoing operations and investments.
Mr. Rivers concluded, “For over 200 years, Eastern has…