East Coast bank to discuss merger with Rhode Island-based HarborOne, valued at approximately $490 million
Eastern Bankshares, a prominent player in the Northeast banking market, has announced a significant merger with Brockton, Massachusetts-based HarborOne Bancorp. The deal, valued at approximately $490 million, will see Eastern Bankshares bolstered with an additional $5.7 billion in assets from HarborOne.
As part of the deal, Eastern will issue $99 million in cash and 25.2 million shares at $15.48 each. The transaction will add 30 locations to Eastern's 109-branch presence, pushing Eastern's brick-and-mortar footprint into Rhode Island for the first time.
The merger is expected to yield a 16% earnings accretion for Eastern, with Eastern's wealth business, managing $8.4 billion in assets, set to be introduced to HarborOne customers. HarborOne's HarborOne U program, offering educational resources for small-business owners and personal finance clients, will also become part of Eastern's offerings.
The deal's $490 million value is based on an 80% stock-to-cash ratio. Once the transaction closes, HarborOne directors will get two seats on Eastern's board, including one to be occupied by CEO Joseph Casey. HarborOne shareholders will receive a choice between 0.765 Eastern shares or $12 cash for each HarborOne share they own.
Eastern CEO Denis Sheahan expressed his enthusiasm for the merger, stating, "We are excited to welcome HarborOne to the Eastern family. This merger aligns with our strategy of growing and expanding our presence in the Northeast banking market through significant mergers with regional banks."
The merger reflects Eastern Bankshares’ recent strategy of pursuing sizeable acquisitions primarily in Massachusetts and neighboring states. In 2025, Eastern completed a $642 million merger with Century Bancorp, Inc., acquiring Century Bank and Trust Company[1][2]. Earlier in 2025, Eastern acquired Centrix Bank, a commercial bank headquartered in New Hampshire, in a deal valued at approximately $125 million[1]. Also in 2025, Eastern agreed to acquire HarborOne Bancorp in a stock and cash deal valued at $490 million[5].
The merger announcement comes one day after Columbia Banking System announced a $2 billion deal to buy Pacific Premier Bank, marking another instance of bank consolidation efforts in the region.
Bob Rivers, Eastern's chair, called HarborOne a "highly recognized institution in our local market." The merger is expected to see Eastern earn back its tangible book value in 2.8 years. No information has been provided about purchasing licensing rights for commercial or retail businesses.
[1] Source: The Boston Globe [2] Source: The Wall Street Journal [5] Source: Reuters
The merger between Eastern Bankshares and HarborOne Bancorp, valued at approximately $490 million, will broaden Eastern's business portfolio in the Northeast, particularly in the banking-and-insurance sector. Following the merger, HarborOne's wealth management business, managing $8.4 billion in assets, and its educational resources program for small-business owners, HarborOne U, will be integrated into Eastern's existing offerings. Additionally, the finance industry will witness the expansion of Eastern's presence in the industry, with the addition of 30 locations,including its first entry into Rhode Island, and an anticipated 16% earnings accretion.
