BOSTON, June 26, 2006 – Eastern Bank announced today that it is now serving 50 banks and credits unions with correspondent banking services, as it continues to attract new customers from its larger competitors.

The 50^th customer to select Eastern – South Shore Savings Bank of South Weymouth – agreed to use Eastern as its provider of Federal Funds, Cash Letter and Coin & Currency services.

“We were looking for a correspondent bank that would provide the same high level of personalized service we provide our own customers,” said Arthur Connelly, Chairman and CEO of South Shore Savings.  “We were impressed by both the quality of Eastern’s people and products, as well as what we’d heard from its other correspondent banking customers.”

Correspondent Banks provide a variety of specialized services to banks and credit units, including:

• Federal Funds – the overnight investment of excess funds;
• Cash Letters – clearing checks drawn on other banks;
• Coin & Currency – delivering coins and bills to branches and ATMs; and
• Fixed Income Securities – the purchase and sale of bonds for the bank’s investment portfolio.

Eastern entered the correspondent market in 2004, targeting mid-sized community banks in Eastern Massachusetts with assets up to $1 billion.  Eastern hired Mary Ann Jordan and David Brooks – two veterans of Bank of America’s Correspondent Banking business – to lead the effort.  At that time Eastern had only five correspondent customers. Now one of every three banks in Eastern’s market is a customer. 

“The many bank consolidations over the past few years created what we saw as an underserved market,” said Lloyd Hamm, Eastern’s Chief Administrative Officer, “but we really didn’t expect a ten-fold increase in customers in two years. We’re grateful for the confidence that South Shore Bank and our other 49 customers have shown in us with such a critical relationship.”

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.