BOSTON, Mass., March 9 – Eastern Bank Corporation’s growth continued in 2003, with net income rising to $47.6 million from $44.8 million, thanks in part to strong performances by its residential mortgage and capital markets divisions, Eastern announced today. 

Eastern also saw strong growth in total loans, which increased 9.3 percent to $3.4 billion, and average core deposits, which increased 12.3 percent to $2.6 billion.  Eastern finished 2003 with $4.7 billion in assets – a 6.5 percent increase over 2002. 

On a core basis, which excludes a $4.7 million contribution to the Eastern Bank Charitable Foundation, amortization of goodwill and certain tax adjustments, net income rose 10.9 percent to $52.8 million.  Eastern’s 2003 performance will be presented during its annual meeting, which is being held tonight at the Museum of Fine Arts in Boston. 

“It was a challenging year, but a successful year,” said Chairman and CEO Stanley J. Lukowski.  “The economy really didn’t begin to pick up until the fourth quarter.  However, a strong sales effort throughout the year and a strong mix of businesses helped us succeed.” 

In 2003, Eastern also:

• Opened four new branches in Dedham, East Boston, Sharon and South Weymouth, bringing its total number of locations to 51 – including 10 that are open on Sundays;
• Announced plans to purchase Middlesex Bank & Trust Co.’s branch at 188 Needham St., Newton.  The acquisition is expected to close later this month;
• Originated a record $730 million in residential mortgages, driven largely by low interest rates that pushed the “refinancing boom” into its third year;
• Re-launched its investment management and trust division under the name Eastern Investment Advisors;
• Completed its first-year in the insurance agency business, after purchasing Natick-based Allied American Insurance Agency on Dec. 31, 2002.  In October, the 20-office agency was renamed Eastern Insurance Group, LLC;
• Eastern Bank Capital Markets generated $4.2 million in trading securities gains and finished the year among the nation’s 10 largest underwriters of short-term municipal debt issues, according to Thomson Financial. 

“In 2004, we’ll have many opportunities to build upon our 2003 accomplishments,” said bank President Richard E. Holbrook.  “Several bank mergers announced last year will be completed this year, creating a disruption in the market and an opportunity to attract new customers.” 

Based in Boston, Eastern Bank is the largest independent, mutually owned commercial bank in New England.  With $4.7 billion in assets and 51 branches in Greater Boston, Eastern offers a full range of financial products for consumers, businesses, investors, government agencies and nonprofit organizations.  Its subsidiaries are Eastern Insurance, one of New England’s largest insurers, and Fantini & Gorga/iCap Realty Advisors, a real estate advisory firm.

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