Matthew Sosik, president and CEO of bankHometown, and Robert Morton, President and CEO of Millbury Savings Bank, recently announced that the banks have signed an agreement to merge operations under the bankHometown name.
The combined bank will have approximately $1 billion in assets and 15 branch offices located throughout Central Mass. and Northeastern Connecticut.
“We’re excited to welcome Millbury Savings Bank’s customers, employees, and communities to the bankHometown family,” Sosik said. “This merger will expand our presence into the Worcester and Millbury markets and will add a team of talented bankers to bankHometown.”
Morton agreed. “Merging with bankHometown allows us to provide our customers with increased lending capacity, an extended branch and ATM network, and an expanded offering of products and services,” he said. “At the same time, and even more importantly, our customers will see the same familiar faces every day.”
There will be no staff reductions or branch closures resulting from the merger. The impact to customers is expected to be minimal as both banks share the same core processor.
“Banks under our Hometown Financial Group umbrella benefit from access to highly skilled executives and support teams.”
After the closing, Morton will lead the combined bank as its president and CEO. In addition, Morton and five members of the Millbury Savings Bank board of trustees will join the bankHometown board of directors.
bankHometown is a wholly owned subsidiary of Hometown Financial Group. Morton and one other Millbury Savings Bank board member will join the Hometown Financial Group board of directors. bankHometown will remain headquartered in Oxford. As part of the Hometown Financial Group family of banks, which includes bankESB, bankHometown, and Pilgrim Bank, the combined bank will benefit from the shared resources of a larger institution while operating independently in its own market area.
“We have a proven track record of success with our operating model,” Sosik said. “Banks under our Hometown Financial Group umbrella benefit from access to highly skilled executives and support teams. This allows the bankers at each of our subsidiary banks to focus their efforts on growing market share and providing best-in-class banking products, services, and solutions to customers.”
Following the merger with Millbury Savings Bank, Hometown Financial Group will have approximately $3 billion in consolidated assets and 32 branch offices operating across Massachusetts and Northeastern Connecticut. Following the merger, Sosik will continue in his role as president and CEO of both bankESB and Hometown Financial Group.
The merger agreement has been unanimously approved by the boards of bankHometown and Millbury Savings Bank. The transaction is expected to close in the fourth quarter of 2019, subject to the receipt of required regulatory approvals and other customary closing conditions. Customer deposits will continue to be fully insured through the Federal Deposit Insurance Corp. (FDIC) and the Share Insurance Fund (SIF).
The merger with Millbury Savings Bank will mark the third transaction that will close in 2019 for Hometown Financial Group. On Jan. 31, the company closed on its acquisition of Pilgrim Bancshares Inc. This was followed by the announcement on Feb. 6 of the merger of Abington Bank and Pilgrim Bank. The closing of that transaction is expected in the second quarter of 2019 and will result in the formation of a $600 million bank with six branches operating in the Eastern Mass. region.