Hometown Financial Group, Inc. to Acquire CFSB Bancorp, Inc.
Hometown Financial Group, Inc. (“Hometown”), the holding company for bankESB, bankHometown, and North Shore Bank (including its Abington Bank division), and CFSB Bancorp, Inc. (NASDAQ Capital Market: CFSB), the holding company for Colonial Federal Savings Bank, jointly announced today that they have entered into a definitive merger agreement in which Hometown will acquire CFSB and its subsidiary Colonial Federal Savings Bank.
Under the terms of the merger agreement, which has been unanimously approved by the companies’ boards of directors, CFSB shareholders will receive $14.25 in cash for each share of CFSB common stock. The total transaction value is approximately $44 million. The merger is anticipated to close in the fourth quarter of 2025, subject to certain conditions, including the receipt of required regulatory approvals, CFSB shareholder approval, and other standard conditions.
As a result of the transaction, Colonial Federal Savings Bank will merge into North Shore Bank to create a $3.3 billion bank with 29 retail locations across the North Shore and South Shore regions of Massachusetts and southern New Hampshire. At closing, the Colonial Federal branches located in Quincy, Holbrook, and Weymouth will become part of North Shore Bank, led by Executive Chairman Kevin M. Tierney, Sr. and President and CEO Michael R. Wheeler.
The transaction will expand Hometown’s market presence in eastern Massachusetts. Following completion of the transaction, Hometown will have consolidated assets of nearly $6.9 billion and a branch network of 56 offices across Massachusetts, southern New Hampshire, and northeastern Connecticut.
“We’re thrilled to welcome Colonial Federal’s customers, employees, and communities to the Hometown Financial Group family of banks,” said Matthew S. Sosik, chairman and CEO of Hometown Financial Group. “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.”
“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,” said Tierney. “It also allows us to partner with a premier bank on the South Shore and to unlock potential for more customers in the region.”
Customers of Colonial Federal also will benefit from the residential mortgage products and services offered through Hometown Mortgage, an affiliate of Hometown Financial Group.
“As Colonial Federal joins our growing family of banks, it continues its mission of prioritizing customer needs through providing individualized financial solutions and personalized customer support,” Sosik added. “Our holding company structure offers the best of both worlds to our customers, employees, and communities. Each bank is deeply rooted in the neighborhoods they call home, so each can harness their own local branding power while leveraging an expansive, best-in-class array of shared operational resources and technology, which allow us to take advantage of size, scale, and efficiency,” he said.
“We’re pleased to be joining Hometown Financial Group and North Shore Bank and excited about what’s in store for our employees, customers, and communities on the South Shore,” said CFSB and Colonial Federal Savings Bank President and CEO Michael E. McFarland. “This transaction partners two outstanding banking organizations 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.”
This transaction is the eighth strategic merger for Hometown Financial Group in the last 10 years.
Kilpatrick Townsend & Stockton LLP served as legal counsel to Hometown Financial Group, Inc. and Luse Gorman, PC served as legal counsel for CFSB Bancorp, Inc. while Piper Sandler provided strategic consulting.
