Eastern Bank to Acquire HarborOne Bank for $490 Million

A visual representation of the partnership between Eastern Bank and HarborOne Bank reflecting community banking.

News Summary

Eastern Bank has announced its acquisition of HarborOne Bank for $490 million, aimed at expanding its presence in the Boston metro area. This strategic merger allows HarborOne shareholders to choose between Eastern common stock or cash for their shares. The acquisition, led by Eastern Bank Chair Bob Rivers, highlights deep personal ties to Brockton and promises enhanced banking services for customers. The deal is set to close in Q4 2025, pending regulatory approvals, and is expected to significantly bolster Eastern’s market position.

Exciting Times for Brockton as Eastern Bank Set to Acquire HarborOne Bank!

In a big and bold move for the local banking scene, Eastern Bankshares Inc. has announced that they will be acquiring HarborOne Bancorp Inc. for a staggering $490 million. This deal is not just a financial transaction; it’s a story that weaves together significant personal ties and a vision for the future. With this merger, Eastern Bank aims to grow its presence in the Boston metro area, positioning itself as a serious contender against notable competitors like Santander.

A Closer Look at the Acquisition

So, what does this merger mean for HarborOne shareholders? Essentially, they will have the option to choose between receiving 0.765 shares of Eastern common stock or $12.00 in cash for each share they own in HarborOne. It’s a win-win for investors as they get to choose what suits them best. This acquisition is scheduled to close in the fourth quarter of 2025, but first, it has to pass the necessary regulatory approvals and win the support of shareholders.

Local Roots Run Deep

Bob Rivers, the Executive Chair of Eastern Bank, has a special connection to the Brockton area, where HarborOne is headquartered. This acquisition is more than just business for Rivers; it’s personal. Having grown up in Stoughton and attended college in Easton, Brockton holds a place close to his heart. That’s a sentiment that should resonate well with both banks’ customers, who can expect more than just a business transaction but a continuation of community-focused banking.

Strengthening Market Position

With Eastern Bank managing assets worth $25 billion and HarborOne holding $5.7 billion, the merger will enhance Eastern’s portfolio significantly. This partnership will not only add to their assets but will also bring a larger mortgage selling business under Eastern’s umbrella. Additionally, this acquisition marks Eastern’s very first retail branches in Rhode Island, expanding their geographic footprint and service capabilities.

Building Up on Past Connections

This merger didn’t just appear out of thin air. Bob Rivers has enjoyed a longstanding professional relationship with HarborOne’s CEO, Joe Casey, and its former CEO, Jim Blake. Their communication has laid the groundwork for this exciting merger, illustrating that sometimes the best partnerships come from existing connections and trust.

Aiming for Enhanced Services

One of the most promising aspects of this merger is the expectation that it will improve customer experiences. With the combined resources, Eastern anticipates providing a fuller suite of banking and wealth management services. For existing customers, this could mean a better range of products and services tailored to meet their financial needs.

Investor Skepticism and Strategy

However, not everyone is entirely on board with the quick-fire series of mergers. Investors have expressed skepticism before, especially during Eastern’s acquisition of Cambridge Trust. In this fast-evolving banking landscape, Rivers acknowledges that opportunities like this won’t last long. Being strategic and acting quickly is crucial.

A Bright Future for Directors

Once the agreement is finalized, Casey from HarborOne along with another director will join Eastern’s Board of Directors, adding valuable insights and experience to the team. Plus, Eastern Bank boasts the largest deposit market share among banks based in Massachusetts, giving the merged entity a solid platform to build upon.

Financial Insights and Expectations

Financially speaking, this merger brings promising numbers to the table, with anticipated earnings accretion of 16% and a tangible book value earnback projected at 2.8 years. It’s a detailed plan crafted with the help of solid financial advisory services. J.P. Morgan Securities LLC guided Eastern, while Raymond James & Associates, Inc. played a pivotal role for HarborOne.

As Eastern Bank prepares to embark on this exciting journey with HarborOne Bank, there are many eyes watching closely. The future for banking in Brockton and beyond looks ripe with promise as these two banks combine their strengths!