PROVIDENCE – Eastern Bankshares Inc., the holding company of Eastern Bank, has entered into a merger agreement with HarborOne Bancorp Inc., the holding company of HarborOne Bank, in a deal valued at approximately $490 million.
Eastern Bank, based in Boston, has $25 billion in assets, which is the largest deposit market share in both the Boston metropolitan area and the commonwealth of any bank headquartered in Massachusetts, according to a news release.
Eastern Bank will acquire Brockton-based HarborOne Bank's $5.7 billion in assets and its 30 banking centers in the stock-and-cash transaction announced on April 24. The merger is meant to solidify Eastern Bank’s position in Greater Boston while expanding its presence in Rhode Island, according to the release.
The deal, which was backed unanimously by both boards of directors,
is expected to close in the fourth quarter of 2025.
HarborOne CEO and President Joseph F. Casey is expected to be elected to Eastern Bankshares' board of directors after the merger is finalized.
"We are excited about this partnership, which bolsters our already strong and long-standing presence in Greater Boston and expands our footprint into Rhode Island," said Robert F. Rivers, executive chairman and chairman of the board of directors of Eastern Bankshares and Eastern Bank. "HarborOne is a highly recognized institution in our local market, and we share a deep commitment to customers, colleagues and communities."
Eastern Bank, which has one commercial banking center and no full-service branches in Rhode Island, will take over HarborOne's nine branches in Rhode Island and 21 in Massachusetts.
Prior to the acquisition, Eastern Bankshares operates about 100 locations in eastern Massachusetts, Connecticut and New Hampshire
.
Denis K. Sheahan, CEO of Eastern Bankshares and Eastern Bank, in a statement called the acquisition a "financially compelling transaction with 16% earnings accretion and a tangible book value earnback of 2.8 years. There are clear opportunities to generate higher returns, improve operating efficiency, and deliver sustained value to shareholders.”
The announcement is the latest in consolidation efforts among Eastern Bank and the region's banking industry at large.
Late last year, Brookline Bancorp Inc., parent company of Brookline Bank, Bank Rhode Island and PCSB Bank, and Berkshire Bancorp Inc., parent company of Berkshire Bank, announced they were merging, while Rockland Trust announced it would be acquiring Enterprise Bank.
Meanwhile, Eastern Bank has acquired nine banks since 1999. It most recently acquired Cambridge Trust in July 2024 in a $528 million deal and Century Bank in 2021 in a deal valued at $642 million.
(UPDATE recasts headline, plus minor changes throughout.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
