Denis K. Sheahan - Jul 12, 2024 Form 3 Insider Report for Eastern Bankshares, Inc. (EBC)

Role
Chief Executive Officer, Director
Signature
/s/ Kate Henry
Stock symbol
EBC
Transactions as of
Jul 12, 2024
Transactions value $
$0
Form type
3
Date filed
7/22/2024, 08:56 PM
Previous filing
Mar 15, 2024
Next filing
Sep 4, 2024

Transactions Table

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Ownership Footnotes
holding EBC Common Stock 246K Jul 12, 2024 By Revocable Trust
holding EBC Common Stock 3.41K Jul 12, 2024 ESOP

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Underlying Class Amount Exercise Price Ownership Footnotes
holding EBC Restricted Stock Units Jul 12, 2024 Common Stock 3.23K Direct F1, F2, F3, F8, F9
holding EBC Restricted Stock Units Jul 12, 2024 Common Stock 11.2K Direct F1, F2, F4, F8, F9
holding EBC Restricted Stock Units Jul 12, 2024 Common Stock 34.5K Direct F1, F2, F5, F8, F9
holding EBC Restricted Stock Units Jul 12, 2024 Common Stock 33.7K Direct F1, F2, F6, F8, F9
holding EBC Restricted Stock Units Jul 12, 2024 Common Stock 42.2K Direct F1, F2, F7, F8, F9
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id Content
F1 The Company issued these time-based restricted stock units (each an "RSU") as of July 12, 2024, when the Company completed its merger with Cambridge Bancorp ("Cambridge"). Each Cambridge RSU (as well as each Cambridge performance-based vesting restricted stock unit (each a "PRSU")) represented a non-transferable right to receive one share of Cambridge common stock on the vesting date. Pursuant to the terms of the Agreement and Plan of Merger, dated September 19, 2023, among the Company, Cambridge and the other parties thereto (the "Merger Agreement"), the RSUs shown in the table replaced RSUs or PRSUs that Cambridge granted prior to the date of the Merger Agreement. In accordance with the Merger Agreement, the Company assumed the Cambridge RSUs and PRSUs and converted them into Company RSUs denominated in shares of Company common stock,
F2 (Continued from footnote 1) with the number of shares of Company common stock subject to such Company RSU or PRSU award equal to the product (rounded up to the nearest whole number) of (i) the number of shares of Cambridge common stock subject to such Cambridge RSU or PRSU award as of immediately prior to Cambridge's merger with and into the Company, multiplied by (ii) the exchange ratio in the Merger Agreement of 4.956 shares of Company common stock for each share of Cambridge common stock. Subject to continued service and subject to the deferral election described in notes (8) and (9) below, each Company RSU will convert into Company common stock on a one-for-one basis.
F3 This award for 3,232 Company RSUs replaced the deferred award for Cambridge RSUs that Cambridge granted to the reporting person on February 15, 2021. The award provides for time-based vesting in three equal annual installments beginning one year after the grant date and for withholding of a number of shares of common stock on each vesting date having a value equal to any tax withholding obligation the Company incurs upon vesting. The final tranche of this Company RSU award vested on February 15, 2024, on which date the reporting person deferred the award.
F4 This award for 11,241 Company RSUs replaced the award for Cambridge RSUs that Cambridge granted to the reporting person on February 15, 2022. The award provides for time-based vesting in three equal annual installments beginning one year after the grant date and for withholding of a number of shares of common stock on each vesting date having a value equal to any tax withholding obligation the Company incurs upon vesting. Subject to continued service, the final tranche of this Company RSU award in the amount of 3,752 Company RSUs will vest on February 15, 2025.
F5 This award for 34,544 Company RSUs replaced the award for Cambridge RSUs that Cambridge granted to the reporting person on April 28, 2023. The award provides for time-based vesting in three equal annual installments beginning one year after the grant date and for withholding of a number of shares of common stock on each vesting date having a value equal to any tax withholding obligation the Company incurs upon vesting. Subject to continued service, the second and third tranche of this Company RSU award will vest on April 28, 2025 in the amount of 11,515 Company RSUs and April 28, 2026 in the amount of 11,516 Company RSUs, respectively.
F6 This award for 33,721 Company RSUs replaced the award for Cambridge PRSUs that Cambridge granted to the reporting person on February 15, 2022. The Company RSU award provides for time-based cliff vesting on December 31, 2024 and for withholding of a number of shares of Company common stock on each vesting date having a value equal to any tax withholding obligation the Company incurs upon vesting.
F7 This award for 42,221 Company RSUs replaced the award for Cambridge PRSUs that Cambridge granted to the reporting person on April 28, 2023. The Company RSU award provides for time-based cliff vesting on December 31, 2025 and for withholding of a number of shares of Company common stock on each vesting date having a value equal to any tax withholding obligation the Company incurs upon vesting.
F8 Prior to the date of the Merger Agreement, the reporting person irrevocably elected to defer receipt of any shares of Company common stock issuable to the reporting person upon the vesting of RSUs, except that the deferral election will not apply, however, to a number of shares of Company common stock having a value equal to any tax withholding obligation the Company incurs upon the vesting of RSUs. Accordingly, upon the vesting of the RSU awards, the Company will not issue Company common stock to the reporting person (other than shares necessary to satisfy tax withholding), but instead the Company will establish for the reporting person's benefit a deferred compensation account (the "Deferred Compensation Account") representing the Company's unfunded liability to the employee for an amount equal to the value of the number of shares of Company common stock deferred.
F9 (Continued from footnote 8) Upon the disposition of the Deferred Compensation Account, the portion, if any, of the Deferred Compensation Account invested in shares of Company common stock will be distributed in shares of Company common stock, and the balance, if any, of the Deferred Compensation Account will be distributed in cash.

Remarks:

Exhibit 24.1 Power of Attorney