BOSTON, Mass., Jan. 3, 2005 – Eastern Bank Corporation and Plymouth Bancorp, Inc. completed their merger over the weekend, creating the state’s premier independent banking franchise with 73 branches and 1,900 employees serving 350,000 customers from Newburyport to Cape Cod.

“We have been successful operating separately, but clearly we are better together,” said Stanley J. Lukowski, chairman and CEO of Eastern. “Consumers and businesses will have more products, more services and more convenience, which will be delivered with the same superior service that Eastern and Plymouth customers have come to expect.”

The merger became effective Jan. 1. The combined entity has $6.4 billion in assets, $4.9 billion in deposits and $4.4 billion in loans, while the investment management divisions will be responsible for $1.5 billion in assets under management.

The merger will have no immediate effect on customers.  Eastern Bank and Plymouth Savings Bank branches will continue to operate as separate units under Eastern Bank Corporation until later this year, when the banks will be merged under the Eastern Bank name.

“This partnership benefits our customers as much as it does the two banks,” said Thomas Olsen, who is retiring as Plymouth’s president and CEO, but will remain as chairman of Plymouth Savings and become vice chairman of Eastern Bank Corporation. “This enhances our ability to compete with larger competitors, while maintaining our mutual ownership.”

Lukowski will continue as chairman and CEO and Richard E. Holbrook will remain president and chief operating officer of Eastern Bank and the holding company once the banks merge later this year. Charles H. Ritch, formerly executive vice president of Plymouth, will serve as president of Plymouth Savings until the branches are merged into Eastern, at which time he will become regional president for southeastern Massachusetts and Cape Cod.

No branches 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.

Eastern has 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.

“We’ve stated all along that this isn’t your typical merger,” Holbrook said. “We’re focused on improving service and convenience for customers in an increasingly competitive banking environment.

“For now, it will be business as usual for our customers.  Soon, it will be business better than usual,” Holbrook added.

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

About Eastern Bank Corporation
Based in Boston, Eastern Bank Corporation is the holding company for the largest independent, mutually owned commercial banking franchise in New England. With $6.4 billion in assets and 73 branches in Greater Boston, Eastern offers a full range of financial products for consumers, businesses, investors, government agencies and not for profit organizations. Its wholly owned subsidiaries are Eastern Bank, Plymouth Savings Bank, 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.