Strategic Shift Clears Path for HarborOne and Eastern Bankshares Merger

In a strategic maneuver, HarborOne Bancorp and Eastern Bankshares have altered their approach to their planned $490 million combination, effectively sidestepping a potential regulatory hurdle. The companies unexpectedly withdrew their application for a key regulatory hearing, originally scheduled for today, marking a significant tactical shift in the deal’s execution timeline.

A Simultaneous Integration Strategy

The revised plan abandons the previously contemplated step-by-step process in favor of a simultaneous integration. Under the new structure, both the parent holding companies and their banking subsidiaries will merge concurrently. This change prompted Eastern Bankshares to formally withdraw its application with regulators, rendering the planned hearing obsolete.

Despite this tactical withdrawal, regulatory oversight remains a key component of the process. The merger of the banking units still requires explicit approval from the Massachusetts Commissioner of Banks. A period for public comment on the transaction remains open, with objections accepted until September 16th.

Shareholder Approval and Financial Performance

HarborOne shareholders have already cast their votes in favor of the deal, providing their approval on August 21st. The current timeline projects the merger will become effective on November 1st. Investors in HarborOne will be presented with a choice to exchange their holdings for shares of Eastern stock, receive a cash payout, or opt for a blend of both consideration methods.

Should investors sell immediately? Or is it worth buying HarborOne Bancorp?

The decision comes as HarborOne demonstrates strong financial health. The institution posted second-quarter 2025 results that substantially outperformed analyst forecasts. Earnings per share reached $0.23, surpassing the projected $0.19, while revenue climbed to $45.44 million—a figure that exceeded expectations by a notable 40%.

Forging a Regional Financial Leader

The ultimate objective of this union is to establish a dominant regional banking entity with a combined asset base of approximately $31 billion. This would cement its status as the largest bank-based financial institution in Massachusetts. The merged organization is expected to leverage greater scale, enhanced resources, and increased innovative capacity to serve customers across Eastern Massachusetts and Rhode Island.

With one potential regulatory obstacle now navigated, the focus for both entities shifts to securing the remaining necessary approvals from the state banking commissioner. Market participants will also be watching for HarborOne’s upcoming quarterly earnings, scheduled for release on October 23rd, which will provide a final pre-merger snapshot of the company’s financial standing.