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HarborOne buying Coastway in $125.6M cash deal

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HarborOne buying Coastway in $125.6M cash deal

HarborOne Bancorp Inc (MHC) of Brockton, Mass., is acquiring Warwick, R.I.-based Coastway Bancorp Inc.

The buyer is paying $28.25 per Coastway share, in cash, or $125.6 million in aggregate. SNL calculates the deal value to be 173.8% of book and tangible book and 44.1x earnings, on a per-share basis. It is also 16.99% of assets and 26.33% of deposits and pays a premium to tangible book that is 14.23% of core deposits. The deal carries a one-day premium of 27.02%, based on Coastway's March 13 closing price of $22.24, and a one-month premium of 29.00%, based on the target's Feb. 14 closing price of $21.90.

For comparison, SNL valuations for bank and thrift targets in the Northeast between March 14, 2017, and March 14, 2018, averaged 151.09% of book and 152.38% of tangible book, on a per-share basis.

Coastway underwent a mutual-to-stock conversion in January 2014. More than two years later, HarborOne reorganized into a mutual holding company and began trading its stock on the Nasdaq Global Select Market. At the end of 2017, Coastway Community Bank had $741.3 million in assets; HarborOne Bank (MHC) had $2.65 billion.

The deal, still subject to regulatory and shareholder approvals, is expected to close in the second half. All Coastway branches will remain open. In Rhode Island, HarborOne will enter Providence County with six branches, where it will rank eighth with a 1.17% share of approximately $19.93 billion in total market deposits, and enter Kent County with five branches, to be ranked sixth with a 6.93% share of approximately $3.55 billion in total market deposits.

FIG Partners, with lead banker Daniel Flaherty, and Goodwin Procter LLP served as HarborOne's financial adviser and legal counsel, respectively. For Coastway, it was Sandler O'Neill & Partners LP and Luse Gorman PC.

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SNL is owned by S&P Global Market Intelligence.

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