New England bank merger adds opportunity for mortgage unit

A pending merger between two Northeastern banks should increase borrowing opportunities for New England customers, thanks in part to the expansion of the company's soon-to-be rebranded mortgage affiliate. 

Massachusetts-based Hometown Financial Group, the parent holding company of three individual brands, announced it had reached a deal to acquire Primary Bank, a publicly traded commercial institution with current headquarters located in Bedford, New Hampshire. Existing financial subsidiaries already operating under the umbrella of the former are bankESB, bankHometown and TruNorth Bank. 

Pending regulatory approval, Hometown will unite all four units beginning in August, including existing Primary branches, under the single TruNorth Bank name. The latest merger deal is Hometown's ninth in 10 years. 

Upon the deal's closing, current Primary Bank clients will gain access to all products and services currently available at Hometown, including offerings from its residential lending operation, which will operate under the name TruNorth Mortgage. 

"Together, we can offer customers the best of both banking worlds: a community bank deeply rooted in the neighborhoods we call home and an institution with the size and scale to deliver a full array of innovative products, services and technology," said Matthew Sosik, CEO and chairman of Hometown Financial, who will hold the same positions across TruNorth after August's changes. 

In 2025, Hometown Mortgage, the name of the company's current residential lending subsidiary, originated $512.4 million worth of loans across New England, according to an analysis of industry data provided by IEmergent. By unit count, it originated 1,609 mortgages, with the vast majority in Massachusetts. 

Overall, the deal adds approximately $743 million in total assets and four New Hampshire branches to TruNorth's New England footprint, increasing the number of locations to 59 across three states.

For the New Hampshire-based banking firm, which was established in 2015, the merger represents a sound business decision that also benefits its customers, its leadership said. 

"Primary Bank has achieved tremendous success since opening as a de novo bank, and this partnership represents the next logical step in ensuring our long-term success while continuing to meet customers' evolving needs," said Chairman William Greiner.  

Financial terms of the deal

With the acquisition, Hometown Financial's board of trustees also unanimously agreed to reorganize its governance model from a mutual-holding to stock-holding company structure. 

Under merger terms, Primary Bank investors will receive $33.00 in cash for each share currently owned or $31.00 of equity to be issued by a new Maryland-incorporated publicly traded successor to Hometown Financial. The agreement is subject to a requirement that 50% of outstanding Primary common shares be converted into the cash consideration, with the other 50% into the stock.

The total transaction is valued at approximately $160 million. Luse Gorman PC acted as Hometown Financial's legal counsel for the merger, with Keefe Bruyette and Woods serving as the bank's financial adviser. Assisting Primary Bank on the legal front was the firm Gallagher, Callahan & Gartrell, PC, with Brean Capital as financial adviser.

The conversion and the merger are expected to successfully conclude in the first quarter of 2027.