Eastern Bank Foundation Announces Rule 10b5-1 Trading Plan

Rhea-AI Summary

The Eastern Bank Foundation announced a plan to sell a pre-arranged portion of Eastern Bankshares, Inc. (NASDAQ: EBC) stock over 18 months. This plan, initiated under Rule 10b5-1 of the Securities Exchange Act, aims to enhance asset diversification and liquidity. The Foundation will sell approximately 25,000 shares weekly starting at the end of October, potentially reducing its holding to 5.6 million shares by February 2023. The Foundation remains committed to its charitable mission while fulfilling fiduciary duties through this strategic plan.

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• Foundation's strategic plan for asset diversification and liquidity.
• Stock sales conducted under Rule 10b5-1 to reduce market impact.

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• None.

BOSTON--(BUSINESS WIRE)-- Eastern Bank Foundation (“Foundation”), the philanthropic arm of Boston-based Eastern Bank whose stock holding company is Eastern Bankshares, Inc. (NASDAQ Global Select Market: EBC), today announced it has established a plan to sell a pre-arranged portion of EBC company stock held by the Foundation over an 18-month period. The stock trading plan was established as part of the Foundation’s long-term strategy for asset diversification and liquidity and was adopted in accordance with the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (“Rule 10b5-1”).

In October 2020, 7,470,326 shares of Eastern Bankshares, Inc. common stock were donated to the Foundation as part of the subscription offering of Eastern Bankshares, Inc. common stock (“IPO”), positioning the Foundation to advance its objectives in the communities it serves over the long-term.

Rule 10b5-1 allows shareholders such as the Foundation to adopt a written, pre-arranged stock trading plan in good faith when the shareholder does not have material, non-public information about the issuer. Using these plans, shareholders can diversify their investment portfolios and spread stock trades over an extended period of time to reduce market impact.

Under the Foundation’s Rule 10b5-1 Plan, which was established back in mid-September prior to quarter end, the Foundation expects to sell approximately 25,000 shares per week over a period of 18 months beginning at the end of October. If the Foundation completes all the planned sales under the Rule 10b5-1 Plan, the Foundation will beneficially own approximately 5.6 million shares of Eastern Bankshares, Inc. common stock as of the conclusion of the Plan in February 2023.

“Eastern Bank Foundation is committed to be a long-term shareholder of Eastern Bankshares, Inc. stock,” said Nancy Huntington Stager, President and CEO of the Eastern Bank Foundation. “Adopting this plan allows the Foundation to diversify its portfolio and meet a fiduciary responsibility to best ensure our support of the communities we serve well into the future.”

The trustees of the Foundation are responsible for establishing its grant and donation policies, consistent with the purposes for which it was established. As trustees of a charitable trust, the trustees of the Foundation are at all times bound by their fiduciary duty to advance the Foundation’s charitable goals and to act in a manner consistent with the charitable purposes for which the Foundation was established. The trustees also are responsible for directing the activities of the Foundation, including the management and voting of the shares of EBC common stock held by the Foundation. However, as required by Federal Reserve Board regulations, all shares of EBC common stock held by the Foundation must be voted in the same ratio as all other shares of EBC common stock on all proposals considered by EBC shareholders.

About Eastern Bank Foundation
Created in 1994, the Eastern Bank Foundation is the philanthropic arm of Boston-based Eastern Bank. Through philanthropy, employee volunteerism, advocacy and collaborations with other businesses and community partners, Eastern Bank Foundation responds to community needs and supports sustainable solutions to our communities’ most vexing challenges across eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. To learn more, visit easternbank.com/foundation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026006253/en/

Eastern Bank Foundation:

Andrea Goodman

a.goodman@easternbank.com

781-598-7847

Eastern Bankshares, Inc. Investors:

Jill Belliveau

InvestorRelations@easternbank.com

781-598-7920

Source: Eastern Bank

FAQ

What is the plan announced by Eastern Bank Foundation regarding EBC stock?

The Eastern Bank Foundation plans to sell approximately 25,000 shares of Eastern Bankshares, Inc. (NASDAQ: EBC) stock weekly over an 18-month period to diversify its assets.

How many shares of EBC stock will the Eastern Bank Foundation sell?

The Foundation intends to sell around 25,000 shares per week, totaling a significant reduction in its holdings.

When will the Eastern Bank Foundation start selling EBC stock?

The stock sales are expected to begin at the end of October.

What is the expected outcome of the EBC stock sales by the Foundation?

If completed, the Foundation will own approximately 5.6 million shares of EBC stock by February 2023.

What does the Rule 10b5-1 entail for the Eastern Bank Foundation?

Rule 10b5-1 allows the Foundation to set up a pre-arranged stock trading plan to sell shares without having material non-public information.