Eastern Bankshares is the holding company for Eastern Bank, while HarborOne Bancorp is the holding company for HarborOne Bank.
Eastern Bankshares has $25 billion in assets and holds the largest deposit market share in Massachusetts and the Boston metropolitan statistical area of any bank headquartered in Massachusetts. It is also the biggest bank-owned independent investment adviser in Massachusetts, with assets under management valued at $8.4 billion.
HarborOne Bancorp has $5.7 billion in assets and runs 30 banking centers in Massachusetts and Rhode Island. It operates mortgage-lending services under HarborOne Mortgage LLC in New England and other states.
The merger agreement has been unanimously accepted by the board of directors at both entities. Under the terms, HarborOne shareholders are set to receive 0.765 shares of Eastern common stock or $12 in cash for each HarborOne stock they hold, depending on their choice.
“The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for HarborOne shareholders for the stock consideration they will receive,” the statement said.
Eastern estimates it would issue roughly 25.2 million of its shares and pay roughly $99 million in cash to complete the transaction. The entire deal is valued at roughly $490 million.
The entities estimate the merger to be completed by the fourth quarter of this year, provided certain conditions are met, including approval of HarborOne shareholders and the receipt of regulatory approvals. Voter approval for Eastern is not required.
The merger is expected to boost “our already strong and long-standing presence in Greater Boston and expands our footprint into Rhode Island,” said Bob Rivers, chair of the board of directors at Eastern Bankshares.
Joseph F. Casey, president of HarborOne Bancorp, said the partnership with Eastern would bring “further scale, resources, and innovation to deliver long-term value and enhanced banking experiences to our customers and local communities.”
US Bank Mergers 2025
A March 18 report from Morgan Stanley expects mergers and acquisitions in the U.S. banking sector to accelerate this year.“Bank regulation in the U.S. is likely to ease or stabilize under the new Trump administration, which could lead to stronger financial results for the industry,” the report said.
“For the first time since the global financial crisis, which led to turmoil in markets and the economy from 2007 to 2009, banks are expected to face a more favorable regulatory environment,” the report said.
Companies had given up on deals or kept them on hold previously due to higher regulatory scrutiny, as this extends the time and raises the cost necessary to complete merger transactions.
“As boards become more comfortable with the economic outlook and the regulatory environment, Morgan Stanley Research expects M&A announcements to accelerate in the second half of 2025, fueled by three years of pent-up demand and about $4 trillion of sponsor dry powder to be deployed in deals,” the report said.
This was the highest first-quarter total in terms of aggregate deal value since 2021. Out of the 34 deals, 15 were announced just last month. Many deals are being delayed as the parties involved are waiting for an improvement in transaction conditions, it said.
“First-quarter stock market volatility paused several bank deals, but investment bankers counseled patience, saying bank deals will likely be announced later in the year,” the report said. “However, advisers cautioned that U.S. bank M&A activity may come to a halt if tariff-induced stock plunges continue.”
Brendan Nosal, an analyst at financial advisory company Hovde Group, said that while bank M&A activity in the first quarter was “far from the wave” that many experts were expecting, deals are closing faster.
