Hometown Financial Group has reached a deal to purchase CFSB Bancorp and its subsidiary, Colonial Federal Savings Bank, for approximately $44m.
The agreement stipulates that CFSB shareholders will receive $14.25 in cash for each share of common stock they hold.
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The boards of directors of both entities have unanimously approved the merger, which is expected to conclude in the fourth quarter of 2025.
The completion of the deal is contingent on regulatory approvals, the approval of CFSB shareholders, and other customary conditions.
Following the merger, Colonial Federal Savings Bank will be amalgamated into North Shore Bank, a subsidiary of Hometown.
This will create a banking entity with $3.3bn in assets and 29 retail locations across Massachusetts and southern New Hampshire.
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By GlobalDataThe branches of Colonial Federal in Quincy, Holbrook, and Weymouth will be incorporated into the North Shore Bank network.
The bank will continue will be led by executive chairman Kevin M. Tierney, Sr. and president and CEO Michael R. Wheeler.
This acquisition will increase Hometown Financial Group’s consolidated assets to approximately $6.9bn and expand its branch network to 56 locations in Massachusetts, southern New Hampshire, and northeastern Connecticut.
The deal represents Hometown Financial Group’s eighth merger in a decade.
Hometown Financial Group CEO and chairman Matthew S. Sosik said: “We’re thrilled to welcome Colonial Federal’s customers, employees, and communities to the Hometown Financial Group family of banks. This merger will increase our presence in eastern Massachusetts, and we’re eager to share the power and resources of Hometown Financial Group and North Shore Bank with the employees and customers of Colonial Federal.”
CFSB and Colonial Federal Savings Bank president & CEO Michael E. McFarland stated: “This transaction partners two outstanding banking organisations and represents another step for us in ensuring our long-term success. Colonial Federal customers will enjoy enhanced products and services, innovative digital banking tools, and an expanded branch network to help meet their evolving needs.”
