Hometown Financial Group in Easthampton, Mass., has agreed to buy Primary Bank in Bedford, N.H., in a move that will include Hometown’s conversion to a stock holding company.
The $6.9 billion-asset Hometown said in a press release that it will pay $160 million in cash and stock for the $743 million-asset Primary. The deal is expected to close in the first quarter.
The transactions build on Hometown’s plan to merge its three banks and unite under the TruNorth Bank name.
The acquisition “is another important step in our strategy to grow with purpose,” Matthew Sosik, Hometown’s chairman and CEO, said in the release. “It increases our presence in southern New Hampshire, and we’re eager to build on the outstanding success of Primary … by adding our strength, resources, and community banking commitment to its employees and customers.”
Luse Gorman and Keefe Bruyette and Woods advised Hometown. Gallagher, Callahan & Gartrell and Brean Capital advised Primary.
As part of the conversion, Hometown will form a new charitable foundation that will be funded stock equal to 4% of the shares sold in the stock offering.