BOSTON, Mass., June 7, 2004 – Eastern Bank has created a Correspondent Banking Department to offer investments, check processing, coin and currency delivery, foreign exchange and other services to banks and credit unions throughout the region, Eastern announced today.

The unit is led by four existing Eastern executives, Stephen MacQuarrie, John McKinlay, Edward Stabler and Thomas Morris, who are joined by two executives recently hired from Fleet’s correspondent banking division, Mary Ann Jordan and David Brooks.

Eastern is targeting banks and credit unions with $1 billion or less in assets, because these institutions have been largely ignored as the number of players in the correspondent banking business has dwindled.

“We’re delighted to add Mary Ann and David to our Correspondent Banking team,” said Lloyd Hamm, executive vice president of Eastern Bank.  “Their combined 20 years of experience calling on New England financial institutions provides us the additional credibility needed to grow the business dramatically.”

Eastern has already enlisted more than one dozen banks to open Fed Funds, or “Sweep Accounts,” which enable these banks to sell excess deposits to Eastern and earn interest on these overnight investments.

In addition to Fed Funds accounts, correspondent banking services include:

• Cash Letter: Processing checks for banks;
• Coin and Currency: Arrange pickup and delivery of coin and currency for bank branches and ATMs;
• International Banking/Foreign Exchange: Services include foreign check collection, international wire transfers, trade services and foreign exchange services;
• Fixed Income Securities: Purchase of money market instruments, U.S. Government and agency securities, and tax-exempt notes and bonds through Eastern’s Capital Markets Group, and;
• Balance Sheet Management: Analyze bank’s balance sheet and customer base to develop liquidity and investment strategy.

In addition to adding new staffers, Eastern has invested in the technology such as imaging software and Internet Banking that is needed to provide new customers with high quality service at a competitive price.

“In Massachusetts alone, there are more than 200 banks and credit unions with $1 billion or less in assets.  While that number has remained steady, the number of banks providing correspondent banking has steadily decreased due to mergers,” Hamm said. “We are courting community institutions.  They are used to providing quality service.  They also expect quality service from their vendors.  We share that belief and that’s why we believe they will be attracted to Eastern.”

Based in Boston, Eastern Bank is the largest independent, mutually owned commercial bank in New England.  With $4.7 billion in assets and 52 branches in Greater Boston, Eastern offers a full range of financial products for consumers, businesses, investors, government agencies and nonprofit organizations. Its wholly owned 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.