Eastern Bank merges with HarborOne in $490 million deal, expanding into Rhode Island

From Yahoo Finance: 2025-04-25 04:14:00

Eastern Bankshares will merge with HarborOne in a $490 million deal, expanding into Rhode Island. The transaction will add 30 locations and $5.7 billion in assets to Eastern Bankshares. Shareholders have the choice of 0.765 Eastern shares or $12 cash per HarborOne share. The deal is set to close in the fourth quarter.

The acquisition follows Columbia Banking System’s $2 billion purchase of Pacific Premier Bank to boost its presence in Southern California. The Federal Reserve and OCC’s approval of Capital One’s $35.3 billion acquisition of Discover may have triggered a surge in banking mergers and acquisitions. Eastern Bankshares has a history of expanding through acquisitions every other year.

HarborOne directors will get two seats on Eastern’s board post-acquisition. Eastern CEO Denis Sheahan expects a 16% earnings accretion and tangible book value return in 2.8 years. The deal is seen as a natural strategic fit, with a focus on customer-centric banking. Eastern plans to introduce HarborOne customers to an enhanced array of products and services, including wealth management.

HarborOne has a strong mortgage-lending business and offers educational resources through its HarborOne U program. The merger will bring scale, resources, and innovation to deliver long-term value and enhanced banking experiences to customers and communities. The CEOs of both institutions expressed excitement about the partnership and the benefits it will bring.

Read more: Eastern Bank to broach Rhode Island with $490M HarborOne deal