HarborOne gets approval for Coastway acquisition

PROVIDENCE – HarborOne Bancorp Inc. in Massachusetts has received regulatory approval to complete its acquisition of Coastway Bancorp Inc. in Rhode Island and the two bank holding companies have set an Oct. 5 closing date for the deal.

HarborOne Bancorp. is the parent company of HarborOne Bank, headquartered in Brockton, Mass., while Coastway Bancorp. is the parent company of Warwick-based Coastway Community Bank.

HarborOne raised $35 million through a debt offering last month to help it close the Coastway deal, HarborOne said Thursday.

“The money raised was for general corporate purposes, but at least some of it will be put to immediate use to buy Coastway [Community] Bank, including the cost of finishing the deal, including technology and other expenses related to converting Coastway branches to HarborOne,” HarborOne President and Chief Operating Officer Joseph Casey said in a statement.

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In March, HarborOne announced the agreement to buy Coastway for $125.6 million.

Wednesday, HarborOne announced the deal has received approval from the Federal Reserve, the Federal Deposit Insurance Corp., the Massachusetts Division of Banks, and the R.I. Department of Business Regulation.

HarborOne was founded in 1917 as the Brockton Credit Union. It converted to a bank in 2013 and started publicly trading its stock in 2016.

Coastway started in the 1920s as the Telephone Workers Credit Union. It converted to a bank in 2009 and started publicly trading its stock in 2014.

Aside from other factors, the acquisition makes sense geographically, said HarborOne CEO James Blake.

“If you look at Coastway, there can be a misconception about the deal because it’s in another state,” Blake told Providence Business News in March. “But if you look geographically, Coastway is 27 miles from our headquarters.”

Scott Blake is a PBN staff writer. Email him at Blake@pbn.com.