Net income hits $36.1 million for 10th straight year of record earnings

BOSTON, Mass., March 11, 2002 – Eastern Bank reached a milestone in 2001, with assets growing 15.5 percent to surpass $4 billion, while loans grew 10.5 percent to $2.9 billion and deposits rose 15.4 percent to $3.2 billion, the bank announced today.

Eastern’s net income rose 6 percent to $36.1 million in 2001, its tenth consecutive year of record earnings, in a year marked by solid growth in investment management sales and commercial and residential real estate brokerage activity. After removing amortization of goodwill and our $3.6 million contribution to the Eastern Bank Charitable Foundation, tangible net income was up 10.4 percent to $43.1 million.

“With the sluggish economy and the September 11th tragedy, Eastern is pleased with its accomplishments in 2001,” said Stanley J. Lukowski, Eastern’s chairman and chief executive officer. “Our performance was satisfying in light of the Federal Reserve’s 11 interest rate cuts, which lowered net interest income as the year progressed.

In 2001, Eastern attracted 25,000 new consumer, commercial and investment management customers, thanks to aggressive marketing and sales efforts that promoted our products and commitment to quality service. The bank now serves about 300,000 customers.

In August, the bank acquired Fantini & Gorga Incorporated of Boston, a premier name in the commercial mortgage brokerage business. The move creating Fantini & Gorga/iCap Realty Advisors was well timed. With the refinancing boom brought on by lower interest rates, Fantini & Gorga/iCap Realty provided strong fee revenue in the last half of the year.

Last June, Eastern officially opened One Eastern Place, its five-story, $20 million operations, technology and lending center on the Lynnway in Lynn. In 2002, Eastern plans to move its corporate headquarters from 53 State Street in Boston to 265 Franklin Street. The building will include a new branch, which is slated to open in July and will become the bank’s main office.

“The new Boston location will enable us to expand our headquarters and consolidate three administrative offices now spread throughout downtown Boston,” said Richard E. Holbrook, Eastern’s president and chief operating officer. “The new headquarters will improve service and enhance our growth opportunities in the Greater Boston market.”

Eastern’s 2001 performance will be presented tonight to its Directors, Trustees and Corporators, during the bank’s annual meeting, which is being held at the Museum of Fine Arts in Boston.

Eastern Bank is a $4 billion full-service commercial bank with 46 offices in Greater Boston. Eastern’s lines of business include consumer banking, corporate lending, capital markets, small business banking, cash management, equipment leasing, private banking, trust and investment management, mortgage banking, and consumer finance.

For more information, contact: Joe Bartolotta, Public Relations Director, Eastern Bank,
(781) 596-4411, or e-mail Joe Bartolotta.