EASTHAMPTON — Hometown Financial Group Inc., the holding company for bankESB, bankHometown, and TruNorth Bank (collectively referred to as TruNorth Bank), announced it has entered into a merger agreement to acquire Primary Bank, a publicly traded commercial bank based in Bedford, N.H., in a transaction that will expand Hometown’s presence in Southern New Hampshire.
The board of trustees of Hometown Financial Group, MHC has also unanimously adopted a plan of conversion to reorganize from the mutual holding company structure to the stock holding company structure.
These proposed transactions build on Hometown’s previously announced plan to merge its three banks and unite under the TruNorth Bank name, which, subject to the receipt of all regulatory approvals, is scheduled to occur in August, and is expected to deliver greater scale, expanded capabilities, and more resources for customers, employees, and communities.
Under the terms of the merger agreement, which has been unanimously approved by both companies’ boards of directors, Primary Bank shareholders will receive, for each share of Primary Bank common stock, either $33 in cash or $31 in shares of stock issued by Hometown Financial Group Inc., a newly formed Maryland corporation, which will be a successor to Hometown, subject to the requirement that 50% of the outstanding shares of Primary common stock be converted into the cash consideration and 50% be converted into the stock consideration. The total transaction value is approximately $160 million.
The acquisition will add approximately $743 million in assets and four New Hampshire locations to TruNorth Bank’s 55-branch network, including its existing Newton, N.H. branch. At closing of the acquisition, Hometown will grow to 59 TruNorth Bank retail locations across Massachusetts, Southern New Hampshire, and Northeast Connecticut. Primary Bank’s branches in Bedford, Derry, Manchester, and Nashua, N.H. will operate under the TruNorth Bank name.
Customers of both banks will benefit from broader access to banking services and digital solutions, a larger branch and ATM network, and expanded lending capabilities.
“We’re thrilled to welcome Primary Bank’s customers, employees, and communities to Hometown Financial Group and TruNorth Bank,” said Matthew Sosik, CEO and chairman of Hometown Financial and the soon-to-be-unified TruNorth Bank. “This merger is another important step in our strategy to grow with purpose. It increases our presence in Southern New Hampshire, and we’re eager to build on the outstanding success of Primary Bank by adding our strength, resources, and community banking commitment to its employees and customers.”
Michael Wheeler, TruNorth Bank’s current president and CEO, added that “expanding our community presence while delivering superior customer service is what TruNorth Bank is all about. The merger with Primary Bank allows us to continue doing just that. Together, we will be better positioned to compete, innovate, and grow — and to help Primary Bank’s business customers in New Hampshire do the same.”
Primary Bank customers also will gain access to the residential mortgage products and services offered through Hometown Mortgage, an affiliate of Hometown Financial Group that will be renamed TruNorth Mortgage concurrently when Hometown’s banks merge, which, again, is scheduled to occur in August.
“We are so pleased to be joining Hometown Financial Group and TruNorth Bank and are truly excited about what’s ahead for our employees, customers, and communities in the Granite State,” Primary Bank Chairman William Greiner said. “Primary Bank has achieved tremendous success since opening as a de novo bank, and this partnership represents the next logical step in ensuring our long-term success while continuing to meet customers’ evolving needs. Primary Bank’s board of directors knew that this day would come, and one of the most important decisions was making sure that our merger partner would have the same vision, mission, and culture. We could not have picked a better partner than Hometown Financial.”
