Eastern Bank Announces Commencement of Stock Offering


BOSTON--(BUSINESS WIRE)--Eastern Bank announced today that Eastern Bankshares, Inc., the proposed stock holding company of Eastern Bank, is commencing its stock offering in connection with Eastern’s conversion from the mutual holding company structure to the stock holding company form of organization. Eastern Bank also announced that the registration statement for the sale of the Company’s common stock has been declared effective by the Securities and Exchange Commission.

Eastern has received all of the approvals required to commence the offering, including the approvals of the Massachusetts Commission of Banks, the Federal Reserve Board, and the corporators of Eastern Bank Corporation, which is the current mutual holding company of Eastern Bank. The corporators also approved the Company’s plan to donate to the Eastern Bank Charitable Foundation upon the completion of the conversion a number of shares of common stock of the Company equal to 4% of the shares that will be outstanding immediately after that donation.

The Company is offering for sale up to 175,375,000 shares of common stock at a purchase price of $10.00 per share, although the Company may sell up to 201,681,250 shares of common stock because of demand for the shares or changes in market conditions, without resoliciting investors.

The Company’s common stock has been approved for listing on the Nasdaq Global Select Market under the symbol “EBC.”

The shares will first be offered in a subscription offering based upon the following priorities:

  1. To each Eastern Bank depositor with aggregate deposit account balances of $50.00 or more (a “Qualifying Deposit”) at the close of business on March 29, 2019 (“Priority 1”);
  2. To each Eastern Bank depositor with a Qualifying Deposit at the close of business on March 31, 2020 (“Priority 2”);
  3. To Eastern Bank’s employee stock ownership plan and Eastern Bank’s 401(k) Plan (“Priority 3”); and
  4. To employees, officers, directors, trustees and corporators of Eastern Bank, Eastern Insurance Group LLC, or Eastern Bank Corporation who are not eligible under either Priority 1 or Priority 2 (“Priority 4”).

The Company intends to mail the subscription materials via First Class Mail beginning on August 20, 2020. The subscription offering is expected to expire at 2:00 p.m., Eastern Time, on September 16, 2020. The Company may offer the shares of common stock remaining after the subscription offering for sale to members of the general public in a community offering, with preference given to residents of cities and towns of Massachusetts and New Hampshire that constitute Eastern Bank’s primary market area.

The subscription and community offerings are being managed by Keefe, Bruyette & Woods, Inc. All questions concerning the offering or requests for offering materials should be directed to the Stock Information Center at 1-800-945-8598. The Stock Information Center, will be open Monday through Friday from 10:00 a.m. to 4:00 p.m., Eastern Time, beginning Monday, August 24, 2020 and continuing through Wednesday, September 16, 2020 at 2:00 p.m., Eastern Time.

Eligible depositors and others may be able to subscribe for shares of common stock using funds in an individual retirement account (“IRA”) or other retirement account if the account is maintained by an independent custodian or trustee, such as a brokerage firm, and not Eastern Bank. The Company recommends that anyone wishing to use funds in an IRA or other retirement account to purchase shares in the subscription or community offering contact the Stock Information Center promptly, preferably at least two weeks before the September 16, 2020 offering deadline, for assistance.

Completion of the offering is contingent upon the Company selling at least 129,625,000 shares of common stock and also is subject to the receipt of final regulatory approvals for the offering and conversion and other customary closing conditions.

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