Hometown Financial Group, the parent company of bankESB, bankHometown, and North Shore Bank, has entered into an agreement to acquire CFSB Bancorp.
Shareholders of CFSB will receive $14.25 in cash per share, valuing the deal at approximately $44m.
The boards of both US-based companies have unanimously approved the transaction.
CFSB Bancorp operates as a federal mid-tier holding company for Colonial Federal Savings Bank, which has served Massachusetts’ south shore since 1889 through branches in Quincy, Holbrook, and Weymouth.
As of 31 March 2025, CFSB Bancorp had total assets of $366m.
Hometown Financial Group, a multibank mutual holding company based in Easthampton, Massachusetts, manages assets worth $6.6bn. It operates 52 branch offices across Massachusetts, northeastern Connecticut, and southern New Hampshire.
The acquisition will result in Colonial Federal Savings Bank merging with North Shore Bank to form a $3.3bn institution with 29 locations in Massachusetts and southern New Hampshire.
Post-merger, the branches in Quincy, Holbrook, and Weymouth will integrate with North Shore Bank under the leadership of executive chairman Kevin M. Tierney, Sr., and president and CEO Michael R. Wheeler.
Hometown Financial Group’s market coverage in eastern Massachusetts will broaden with this transaction.
Upon finalisation, the group’s consolidated assets are projected to reach nearly $6.9bn with a network of 56 branches spanning Massachusetts, southern New Hampshire, and northeastern Connecticut.
Tierney said: “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.
“It also allows us to partner with a premier bank on the South Shore and to unlock potential for more customers in the region.”
Colonial Federal customers will gain access to residential mortgage products through Hometown Mortgage. This marks the eighth merger for Hometown Financial Group in the past decade.
CFSB and Colonial Federal Savings Bank president and CEO Michael McFarland said: “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.”
Legal counsel for Hometown Financial Group was provided by Kilpatrick Townsend & Stockton, while CFSB received legal guidance from Luse Gorman, PC. Strategic consulting services to CFSB were offered by Piper Sandler.
The merger is expected to conclude in Q4 2025, pending regulatory and shareholder approvals.
