HarborOne Bancorp in Brockton, Mass., has agreed to buy Coastway Bancorp in Warwick, R.I.
The $2.7 billion-asset HarborOne said in a press release Monday that it will pay $125.6 million in cash for the $739 million-asset Coastway. The deal is expected to close in the second half of this year.
Coastway has nine branches, three mortgage lending offices and $477 million in deposits.
Both banks are former credit unions.
Coastway was created in 1920 as Telephone Workers Credit Union; it converted to a bank in 2009. HarborOne, which was formed as Brockton Credit Union in 1979, became a bank in 2013.
HarborOne acquired four other credit unions before its conversion. Coastway would be its first bank acquisition.
“This is a strategic acquisition for HarborOne, and a great fit with our growth plan,” James Blake, HarborOne’s president and CEO, said in the release. Rhode Island “is incredibly attractive to us. … This is a unique opportunity for HarborOne to access excellent customer demographics and grow our business.”
FIG Partners and Goodwin Procter advised HarborOne. Sandler O’Neill and Luse Gorman advised Coastway.