- Eastern Bankshares, Inc. (EBC, Financial) and HarborOne Bancorp, Inc. (HONE) have signed a definitive merger agreement.
- The transaction is valued at approximately $490 million and is expected to close in Q4 2025.
- Shareholders of HarborOne will receive either 0.765 shares of Eastern stock or $12.00 in cash for each HarborOne share held.
Eastern Bankshares, Inc. (EBC), the holding company for Eastern Bank, and HarborOne Bancorp, Inc. (HONE), the holding company for HarborOne Bank, have entered into a definitive merger agreement. This strategic move aims to solidify Eastern's leading position in Greater Boston and expand its reach into Rhode Island. The merger will result in a financially compelling transaction with a 16% increase in earnings per share (EPS) and will enhance Eastern's operating profitability.
Under the transaction terms, HarborOne shareholders can elect to receive either 0.765 shares of Eastern common stock or $12.00 in cash per HarborOne share, subject to an allocation procedure. This allocation will ensure that 75% to 85% of HarborOne shares will receive the stock consideration. Based on Eastern's closing price of $15.48 on April 23, 2025, the transaction's value is approximately $490 million.
The merger is anticipated to close in the fourth quarter of 2025, pending necessary regulatory approvals and the approval of HarborOne shareholders. It has been agreed upon by both companies’ boards of directors and involves issuing approximately 25.2 million Eastern shares and distributing $99 million in cash.
Upon completion, Joseph Casey and another director from HarborOne are expected to join Eastern's board. Eastern Bank, valued for its community support and extensive charitable contributions, aims to introduce HarborOne customers to an enhanced array of banking services.
This merger brings together Eastern's $25 billion in assets and HarborOne’s $5.7 billion, promising to deliver higher returns, improved operating efficiency, and sustained shareholder value. Participants can join a conference call to discuss the merger along with Eastern’s Q1 2025 results on April 25, 2025, through Eastern’s Investor Relations website.
