BOSTON, Mass., July 8, 2004 – Eastern Bank and Plymouth Savings Bank have agreed to merge, creating the state’s premier independent banking franchise with 70 branches stretching from Newburyport to Cape Cod, the companies announced today.

The combined entity will have $6.6 billion in assets, $4.9 billion in deposits and 1,900 employees serving more than 320,000 consumers and 33,000 commercial customers across eastern Massachusetts.

Eastern and Plymouth Savings are both mutually owned banks. The agreement is being called “A Partnership of Mutual Benefit,” because it enhances the ability of both banks to compete with larger competitors, while maintaining their mutual ownership.

Trustees at both banks approved the merger yesterday. The merger is expected to close in early 2005, subject to regulatory approvals. Plymouth is expected to operate separately under the holding company until integration occurs at year-end 2005.

“We have been successful operating separately, but together we can do more for our customers,” said Stanley J. Lukowski, chairman and CEO of Eastern Bank. “This partnership extends Eastern’s geographic reach into southeastern Massachusetts, while providing Plymouth Savings’ customers with greater resources in many specialized areas. By merging, we create the premier independent bank.”

Thomas S. Olsen, chairman, CEO and president of Plymouth Savings Bank, said, “This is good news for our customers, because Eastern shares our commitment to providing quality service. Combining our resources with Eastern allows us to offer an array of products and services to compete more effectively with the larger banks. Ultimately, it ensures the on-going viability of the franchise we have built throughout southeastern Massachusetts.”

Upon completion of the merger, Stanley J. Lukowski will be chairman and CEO of the holding company, Eastern Bank Corporation. Thomas S. Olsen will become vice chairman and will oversee integration of Plymouth into Eastern. Richard E. Holbrook will be president and chief operating officer.

No offices will be closed as a result of the merger. Plymouth Savings’ corporate headquarters in Middleborough will become the southeast regional headquarters for the combined companies.

The companies have adopted a “no layoff” policy, which ensures stability and enables both banks to maintain their hallmarks for superior service. In addition, all directors, trustees and corporators will retain their positions upon completion of the merger.

“This isn’t your typical merger,” said Richard E. Holbrook, president of Eastern. “This isn’t about cutting costs. It’s about improving service and convenience for customers in an increasingly competitive banking environment. This partnership accomplishes that goal.”

Eastern, which already contributes 10 percent of its net income annually to the Eastern Bank Charitable Foundation, plans to contribute an additional $5 million once the merger is completed. The earnings from that contribution will be donated to not-for-profit organizations in communities served by Plymouth Savings.

About Eastern Bank
Based in Boston, Eastern Bank is the largest independent, mutually owned commercial bank in New England. With $5 billion in assets and 52 branches in Greater Boston, Eastern offers a full range of financial products for consumers, businesses, investors, government agencies and non profit organizations. Its wholly owned subsidiaries are Eastern Insurance, one of New England’s largest insurers, and Fantini & Gorga, a real estate advisory firm

About Plymouth Savings Bank
Founded in 1847 and headquartered in Middleborough, Plymouth Savings Bank serves southeastern Massachusetts and Rhode Island through 18 banking offices and nine mortgage loan centers. Plymouth Savings’ residential lending portfolio totals $2.6 billion, making it one of the largest servicers of mortgages in Massachusetts. The bank’s total assets as of June 30, 2004 were $1.5 billion

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