Hometown Financial Group in Easthampton, Mass., has agreed to buy Pilgrim Bancshares in Cohasset, Mass.

The $2.1 billion-asset Hometown said in a press release Wednesday that it will pay $53.9 million for the $263 million-asset Pilgrim. The deal, which is expected to close early next year, priced Pilgrim at 151% of its tangible book value.

Hometown said it plans to maintain Pilgrim Bank as a separate subsidiary. The transaction is expected to be accretive to Hometown’s in the first year of combined operations.

The deal is "a great first step into eastern Massachusetts," Matthew Sosik, Hometown’s president and CEO, said in the release. Hometown “is actively looking to expand into new markets which offer attractive growth opportunities.”

Keefe, Bruyette & Woods and Luse Gorman advised Pilgrim. Nutter McClennen & Fish advised Hometown.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.