(Reuters) -Eastern Bankshares will acquire HarborOne Bancorp in a stock and cash deal valued at $490 million, the lenders said on Thursday, as bank consolidation gains traction in an uncertain market.
Regional banks across the United States are increasingly turning to mergers as a strategy to bolster their balance sheets, achieve greater diversification, and increase scale in the face of heightened market uncertainty.
Tariffs lower consumer confidence, which in turn dampens loan demand, hurting lenders.
The merger, set to close in the fourth quarter of 2025, will strengthen Eastern Bankshares’ position in the Greater Boston region and expansion into Rhode Island.
HarborOne shareholders will receive 0.765 shares of Eastern or $12 in cash for each share held. HarborOne’s shares closed at $10.06 on April 24, 2025.
“Partnering with Eastern brings further scale, resources, and innovation to deliver long-term value and enhanced banking experiences to our customers and local communities,” said Joseph Casey, President and Chief Executive Officer of HarborOne.
Eastern has $25 billion in assets, while HarborOne, founded in 1917, has $5.7 billion.
J.P. Morgan Securities LLC and Raymond James & Associates served as the financial advisors of the deal to Eastern and HarborOne respectively.
In another bank consolidation move, Columbia Banking System will acquire Pacific Premier Bancorp in an all-stock deal for about $2 billion, the companies said on Wednesday.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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