American bank holding company Hometown Financial Group has signed an agreement to acquire Pilgrim Bancshares in a cash deal valued at about $53.9m.

Hometown Financial is the owner of bankESB (Easthampton, MA) and bankHometown (Oxford, MA) while Pilgrim Bancshares is the holding company of Pilgrim Bank, a $263m Massachusetts-chartered cooperative bank.

Pursuant to the terms of the deal, Pilgrim Bancshares’ shareholders will receive $23 in cash per share.

The transaction is expected to expand Hometown Financial’s market presence in eastern Massachusetts.  Upon closing of the deal, Hometown Financial Group will have consolidated assets of nearly $2.4bn and a branch network of 26 full-service offices.

Hometown Financial Group will manage Pilgrim Bank as a separate banking subsidiary and does not plan to shut down any Pilgrim Bank branch offices after the acquisition.

Hometown Financial Group president and CEO Matthew Sosik said: “We see the Pilgrim Bank franchise as a great first step into eastern Massachusetts.

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“With our established presence in central and western Massachusetts through our bankHometown and bankESB franchises, Hometown Financial Group is actively looking to expand into new markets which offer attractive growth opportunities.

“The Pilgrim Bank franchise fits nicely into our growth plans. We look forward to welcoming Pilgrim Bank into our family of banks.”

The latest transaction marks the third strategic merger for Hometown Financial Group in the last three years.

Subject to regulatory approval and the approval of the shareholders of Pilgrim Bancshares, the transaction is scheduled to be completed in the first quarter of 2019.