Eastern Bank Corporation’s Net Income Up 39 Percent
in 2005
Plymouth Savings Bank merger, solid financials among year’s highlights

BOSTON, March 14, 2006 – Eastern Bank Corporation today reported net income rose 39 percent to $49.2 million in 2005, capping a solid year that saw the bank expand into southeastern Massachusetts and Cape Cod through its successful merger with Plymouth Savings Bank.

On a core basis, which excludes contributions to the Eastern Bank Charitable Foundation, amortization of intangibles, merger and other non-core expenses, and related tax adjustments, net income was $69.0 million in 2005, or 47 percent higher than 2004.

“While our financials were solid in 2005, our greatest accomplishment last year was the successful completion of our merger with Plymouth Savings, which united two great organizations committed to serving consumers and businesses in eastern Massachusetts,” said Stanley J. Lukowski, Eastern’s chairman and CEO.

“The businesses and management teams are now fully integrated, and all systems were converted to common platforms with minimal disruption to customers.  It was quite an accomplishment,” Lukowski said.

Completed on Jan. 1, 2005, the merger created the state’s premier independent banking franchise with 72 branches and 1,700 employees serving 350,000 customers from Merrimack Valley to Cape Cod.

“When we announced the merger in 2004, we told our customers and our competitors that we would be better together.  In 2005, we proved it,” said Richard E. Holbrook, Eastern’s president and chief operating officer.  “Our customers now have more products, services and convenience, while receiving the same level of superior service that they have come to expect from us.”

Eastern’s 2005 performance will be presented during the bank’s annual meeting, which is being held tonight at the Museum of Fine Arts in Boston.  Among the other highlights:

• Average total loans increased 4 percent to $4.4 billion, while average total deposits increased 2 percent to $4.8 billion
• Eastern Insurance Group, a full-service insurance agency and subsidiary of the corporation, finished 2005 with revenue of $32.8 million, a 10-percent increase over 2004
• The Eastern Bank Charitable Foundation, which is funded solely by the corporation, donated a record $3.9 million to not-for-profit organizations across eastern Massachusetts.

“Our employees played an important role in our success in 2005,” Holbrook said.  “From successfully integrating two banks to volunteering their time in the community, our employees’ dedication, professionalism and commitment to customer service have been critical to our past accomplishments and are the keys to our successful future.”

About Eastern Bank Corporation
Founded in 1818 and based in Boston, Eastern Bank is the largest independent, mutually owned commercial banking franchise in New England.  With $6.5 billion in assets and more than 70 branches stretching from Merrimack Valley to Cape Cod, Eastern offers superior service, convenience and a full range of financial products for consumers, businesses, investors, government agencies and not-for-profit organizations.  Its subsidiaries are Eastern Insurance and Fantini & Gorga, a real estate advisory firm.

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