Boston-based Eastern Bank and HarborOne Bank, headquartered in Brockton, announced on Thursday that they are merging. It’s the latest sign of consolidation in the regional banking industry.
The deal is valued at approximately $490 million, and Eastern Bank will acquire HarborOne’s assets and banking centers. The stock and cash transaction is expected to close in the fourth quarter, according to a news release, after receiving required regulatory approvals and the approval of HarborOne shareholders.
“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,” Bob Rivers, executive chair and chair of the board of Eastern Bank, said in the release. “HarborOne is a highly recognized institution in our local market, and we share a deep commitment to customers, colleagues and communities.”
Eastern Bank, the largest Massachusetts-headquartered bank with 109 locations across Eastern Massachusetts, New Hampshire, Rhode Island, and Connecticut, will take over HarborOne’s 30 banking centers in Massachusetts and Rhode Island. Eastern has about $25 billion in assets, while HarborOne has $5.7 billion.
After the merger, HarborOne CEO Joseph Casey and another HarborOne director are expected to join Eastern Bank’s board of directors, according to the release. The deal was backed by a unanimous vote by both boards of directors.
Eastern Bank’s executives are evaluating the branch network of both banks alongside HarborOne’s management team, Eastern Bank CFO David Rosato said in a Friday call with investors. The evaluation will “identify the best branch locations that align with growth objectives, operational efficiency, and customer accessibility,” he said.
Eastern Bank executives said they believe the acquisition could help them rise in the ranks of Boston-area banks. Currently, Eastern Bank has the fourth-most deposits of all banks in Boston at $20.8 billion, which will be bolstered by HarborOne’s $3.2 billion in deposits.
Executives are still discussing the details of how HarborOne’s mortgage division, which originated $700 million last year, will be incorporated into the merged company, Rivers said. Eastern Bank, meanwhile, had $300 million in mortgage originations last year.
“Today’s announcement is a testament to the strength of our franchise and dedication of our team,” HarborOne CEO Joseph Casey said in the release. “Partnering with Eastern brings further scale, resources, and innovation to deliver long-term value and enhanced banking experiences to our customers and local communities. We look forward to building upon the legacy forged by HarborOne for over a century.”
The merger joins a wave of similar deals made recently by many regional banks as higher interest rates over the past two years have increased borrowing costs for both consumers and companies. In the last year alone, local deals have included the merger of Brookline and Berkshire banks and Rockland Trust’s acquisition of Enterprise Bank.
Eastern Bank acquired Cambridge Trust in a $528 million deal completed in July 2024 and purchased Century Bank in November 2021. Eastern has completed nine bank acquisitions since 1999.
In the deal, current HarborOne shareholders will be given the option of receiving either $12 per share or 0.765 shares of Eastern’s stock, executives said.
Maren Halpin can be reached at maren.halpin@globe.com.