Hometown Financial Group to acquire CFSB Bancorp

Hometown Financial Group, the holding company for bankESB, bankHometown, and North Shore Bank, and CFSB Bancorp (CFSB), the holding company for Colonial Federal Savings Bank, jointly announced 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 $44M. The merger is anticipated to close in the Q4, 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. Kilpatrick Townsend & Stockton LLP served as legal counsel to Hometown Financial Group and Luse Gorman, PC served as legal counsel for CFSB Bancorp, Inc. while Piper Sandler provided strategic consulting.