Hometown Financial Group to Expand Through Acquisition of Primary Bank and Shift to Stock Structure

Hometown Financial Group Announces Acquisition of Primary Bank

Hometown Financial Group, Inc. has made headlines with its recent announcement regarding the acquisition of Primary Bank, a commercial entity based in Bedford, New Hampshire. This strategic move is set to bolster Hometown's footprint in southern New Hampshire, further enhancing the service offerings of its banks, which include bankESB, bankHometown, and TruNorth Bank.

The Deal

On July 6, 2026, Hometown confirmed it has entered into a merger agreement with Primary Bank, with a total transaction value approximating $160 million. The terms indicate that shareholders of Primary Bank will be given a choice of receiving either $33 in cash or $31 in stock assets from Hometown Financial for each share they hold. The transition is expected to close soon, bringing an additional $743 million in assets and four new locations into Hometown’s network, which will expand to a total of 59 branches.

Matthew S. Sosik, CEO and chairman of Hometown Financial, expressed optimism regarding the merger, stating, “We're thrilled to welcome Primary Bank's customers, employees, and communities. This merger is another important step in our strategy to grow with purpose.”

The acquisition is part of a larger vision, as Hometown Financial is planning to merge its three banks under a unified brand—TruNorth Bank—by August 2026, once all regulatory approvals are secured. This unification is anticipated to significantly enhance services for customers, offering a more extensive array of banking solutions and digital resources.

Benefits of the Acquisition

The benefits of this acquisition for both companies' clients are numerous. Customers of Primary Bank will now have access to a wider range of banking services, improved lending capabilities, and enhanced access to digital solutions. These improvements are expected to enrich customer experiences across all Hometown branches, with an overarching goal of fostering community-driven banking.

Current and potential customers can look forward to increased access to ATMs and branches, as well as new product offerings such as residential mortgages from Hometown’s affiliate, which will be rebranded as TruNorth Mortgage following the merger.

Strategic Growth

The advancement into new markets aligns with Hometown Financial's mission of promoting localized banking with a focus on community service. “Expanding our community presence while delivering superior customer service is what TruNorth Bank is all about,” commented Michael R. Wheeler, the current president and CEO of TruNorth Bank.

The merger's schedule includes public advisory that both Primary and Hometown are aligned in their vision of community banking, anticipating that this merger will enable growth and innovation while benefiting local businesses.

Mutual-to-Stock Conversion Plan

In addition to the acquisition, Hometown MHC has adopted a plan to convert from a mutual holding company structure to a stock holding company structure. This change signifies a shift that is aimed at increasing organizational efficacy and enhancing service delivery to their customer base. The plan involves the issuance of common stock for eligible account holders of TruNorth Bank, while ensuring that substantial resources are allocated towards a charitable foundation.

Completion of the merger and conversion is expected to occur in the first quarter of 2027, pending the necessary regulatory and shareholders’ approvals. This marks the ninth strategic merger for Hometown Financial Group in the past decade, showcasing their consistent dedication towards growth and innovation in the financial services landscape.

Conclusion

In conclusion, Hometown Financial Group’s acquisition of Primary Bank and its subsequent strategic restructuring promises not only to enhance customer services but also to strengthen the financial institution's presence in the region. As the merger evolves, both organizations are committed to maintaining a robust community focus, prioritizing needs, and fostering local partnerships for continued success.

For further updates and information regarding this merger, members of the public can visit _Hometown Financial Group's official website_.