HarborOne Bancorp Soars 10.54% on Merger Announcement

HarborOne Bancorp's stock surged by 10.54% in pre-market trading on April 25, 2025, marking a significant rise that has caught the attention of investors and analysts alike.

This surge comes on the heels of a major announcement: Eastern Bankshares, Inc. and HarborOne Bancorp, Inc. have entered into a definitive merger agreement. Under this deal, HarborOne will merge with and into Eastern in a stock and cash transaction valued at approximately $490 million. The merger is expected to close in the fourth quarter of 2025, subject to regulatory approvals and shareholder approval from HarborOne.

The merger aims to solidify Eastern’s position in Greater Boston and expand its reach into Rhode Island. This strategic move is anticipated to bring about a 16% earnings per share accretion and enhanced customer offerings, promising sustained value to shareholders. The transaction is seen as a strategic fit with shared values and a focus on customer-centric banking.

HarborOne Bancorp has demonstrated strong financial growth with excellent revenue expansion and a stable balance sheet, thanks to no debt and increased net income. However, the stock faces challenges with bearish technical indicators and cash flow consistency. Valuation metrics are favorable, with a reasonable P/E ratio and a solid dividend yield. The company’s recent significant income growth adds a positive outlook, though technical weaknesses remain a concern.