bankHometown parent to acquire Colonial Federal Savings parent to form $7B institution
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bankHometown in Oxford
Hometown Financial Group, the holding company of Oxford-based bankHometown, will soon acquire CFSB Bancorp, the holding company of Quincy-based Colonial Federal Savings Bank, forming a nearly $6.9-billion entity.
The agreement will see Easthampton-based Hometown Financial Group, which serves as the holding company of Easthampton-headquartered bankESB and North Shore Bank of Peabody, acquire CFSB’s subsidiary Colonial Federal Savings Bank, including its Abington Bank division.
The transaction will total approximately $44 million, with each of CFSB’s shareholders receiving $14.25 in cash for each share of the company’s common stocks, according to a joint Tuesday press release.
“We’re thrilled to welcome Colonial Federal’s customers, employees, and communities to the Hometown Financial Group family of banks,” Matthew Sosik, chairman and CEO of Hometown Financial Group, said in the release. “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.”
As part of the acquisition, Hometown’s North Shore Bank will merge with CFSB’s Colonial Federal Savings Bank, creating a $3.3-billion financial institution. As a result, Colonial Federal's locations at Quincy, Holbrook, and Weymouth will become part of North Shore Bank. North Shore’s former President and CEO Kevin Tierney will serve as the entity’s executive chairman, with Michael Wheeler succeeding him as president and CEO, according to a Thursday press release from North Shore.
The merged entity will create a branch network of 56 locations throughout Massachusetts, Southern New Hampshire, and Northeastern Connecticut.
The holding companies expect the merger to be completed in the fourth quarter.
“Growing our local markets and providing top-notch customer service are key priorities for us, and this merger of Colonial Federal into North Shore Bank allows us to continue doing just that,” Tierney said in the release. “It also allows us to partner with a premier bank on the South Shore and to unlock potential for more customers in the region.”
The acquisition’s announcement comes just months after Hometown Financial Group announced in February it would merge with the holding company of North Shore Bank, the Peabody-based North Shore Bancorp.
With $892 million in local deposits, bankHometown is the 15th largest bank in Central Massachusetts when ranked by local deposits as of June 30, 2024, according to Federal Deposit Insurance Corp. data compiled by the WBJ Research Department.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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