WARWICK – HarborOne Bancorp Inc. and Coastway Bancorp Inc. have entered into a definitive agreement in which HarborOne will acquire Coastway in an all-cash transaction valued at approximately $125.6 million.
The acquisition was announced in a joint news release Wednesday, following unanimous approval by the board of directors of both companies.
Coastway stockholders will receive $28.25 for each share of Coastway common stock.
Coastway, the Warwick-based holding company of Coastway Community Bank, had $739 million in assets and deposits of $477 million as of Dec. 31, with nine branches in the greater Providence area and three mortgage-lending offices.
“This is a great union for both companies, and our customers will benefit with access to expanded mobile banking capabilities, rewards and affinity programs, and new products,” said Coastway President and CEO William A. White, who added that all of the bank’s branches will remain open.
The combined company will be the 12th-largest publicly traded community bank in New England based on assets and will feature 65 locations throughout Rhode Island, Maine, Massachusetts and New Hampshire.
“The Rhode Island market is incredibly attractive to us, and Coastway’s established position provides a natural extension of our successful commercial lending business in Rhode Island,” said James Blake, president and CEO of HarborOne, based in Brockton, Mass.
Expected to close in the second half of 2018, the transaction is subject to customary closing conditions, including the approval of Coastway stockholders and required regulatory approvals.