425: HarborOne ESOP Distribution Update Amid Eastern Bank Merger

HarborOne Bancorp provides an important notice to ESOP participants regarding distribution timelines following its merger with Eastern Bankshares, Inc.

Summary

• HarborOne Bancorp, Inc. has issued an important notice to participants of The HarborOne Bank Employee Stock Ownership Plan (ESOP) regarding distributions in connection with its merger with Eastern Bankshares, Inc.
• Eligible ESOP participants will be unable to receive distributions until the Merger Consideration is allocated and the ESOP wind-down is completed.
• The merger is anticipated to occur on October 31, 2025.
• ESOP participants are expected to view their converted ESOP account balance, based on the Merger Consideration allocation, on or about the week of November 17, 2025.
• Distributions cannot be facilitated until the 2025 Plan allocation is finalized, any remaining assets in the ESOP Trust (after full repayment of the ESOP loan) are processed, and final testing on the ESOP is completed.
• Participants can view their ESOP account by logging into www.principal.com and selecting their ESOP Account.

Sentiment

Score: 5

Explanation: Neutral administrative update regarding ESOP distributions post-merger, with a minor negative sentiment due to potential delays for participants.

Positives

• Clear communication provided to ESOP participants regarding the process and anticipated timeline for their distributions post-merger.
• Guidance on how to access ESOP account information and contact support is readily available.

Negatives

• ESOP participants will experience a delay in receiving distributions until the merger consideration is allocated and the ESOP wind-down is completed.
• The anticipated date for viewing converted ESOP account balances (November 17, 2025) is subject to potential delays.

Risks

• The anticipated date for ESOP participants to view their converted account balance (on or about the week of November 17, 2025) depends on the accurate and timely updating of data.
• Delays in data updating could change the anticipated date and lengthen the Merger Consideration allocation process, further delaying ESOP distributions.

Future Outlook

The future outlook for ESOP participants involves a structured process for account balance conversion and distribution following the merger, with an anticipated viewing date for converted balances around mid-November 2025, contingent on timely data updates and completion of administrative steps.

Management Comments

• We anticipate the merger will occur on October 31, 2025, and for ESOP participants to be able to view their converted ESOP account balance (based on the Merger Consideration allocation) on or about the week of November 17, 2025.

Industry Context

This communication is a standard administrative update common in the banking sector following a merger, specifically addressing employee benefit plans like ESOPs. It aims to manage participant expectations regarding the timeline for accessing their benefits during a corporate transition.

Stakeholder Impact

• HarborOne Bank Employee Stock Ownership Plan (ESOP) participants (employees) will experience a temporary inability to receive distributions and potential delays in viewing their converted account balances due to the merger process.

Next Steps

• Completion of the merger of HarborOne Bancorp, Inc. with Eastern Bankshares, Inc. on October 31, 2025.
• Allocation of Merger Consideration to ESOP accounts.
• Completion of the wind-down of the ESOP.
• Finalization of the 2025 Plan allocation.
• Processing of any remaining assets held in the ESOP Trust after full repayment of the ESOP loan.
• Completion of final testing on the ESOP.
• ESOP participants viewing their converted account balance on or about the week of November 17, 2025.

Key Dates

Keywords

HarborOne Bancorp, Eastern Bankshares, Merger, ESOP, Employee Stock Ownership Plan, Distribution, Corporate Action, Banking, Financial Services