Hometown Financial Group, Inc. entered a merger agreement on May 20, 2025, to acquire CFSB Bancorp, Inc. (CFSB) in an all-cash deal valued at $44 million, and to expand its market presence in eastern Massachusetts.
As per the agreement, CFSB shareholders will receive $14.25 in cash for each share of CFSB common stock, representing a 73.99% premium from the stock’s last close.
CFSB is the federal mid-tier holding company of Colonial Federal Savings Bank, providing banking and financial services, including deposits, residential and commercial loans, and investment securities, through multiple branches in Norfolk County, Massachusetts.
Hometown Financial Group is a $6.6 billion mutual multi-bank holding company headquartered in Easthampton, Massachusetts. It operates a network of community banks, including bankESB, bankHometown, North Shore Bank (and its Abington Bank division), and Hometown Mortgage, offering comprehensive consumer and business banking services across 52 branches in Massachusetts, northeastern Connecticut, and southern New Hampshire.
CFSB’s subsidiary, Colonial Federal Savings Bank, will merge into Hometown’s subsidiary, 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, expected in the fourth quarter of 2025, the Colonial Federal branches located in Quincy, Holbrook, and Weymouth will become part of North Shore Bank, led by North Shore’s CEO, Kevin Tierney, and President Michael Wheeler.
Through the merger, 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.
Kilpatrick Townsend & Stockton served as legal counsel to Hometown Financial, while Luse Gorman represented CFSB Bancorp. Piper Sandler acted as strategic advisor.
Hometown Financial is paying 0.68 times the tangible book value for CFSB Bancorp.
For more detailed information regarding this merger and acquisition transaction, please refer to the Deal Metrics page here:
Deal Metrics for the acquisition of CFSB Bancorp, Inc. (CFSB) by Hometown Financial Group, Inc.
The Deal Metrics page for each merger or acquisition contains:
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Editor’s Note: Baranjot Kaur contributed to this article