Hometown sets its sights on New Hampshire.
The Massachusetts banking company is buying Primary Bank while overhauling its ownership structure in a sweeping expansion plan.
Hometown Financial Group is making its biggest strategic move in years, agreeing to acquire New Hampshire-based Primary Bank in a deal valued at roughly $160 million while simultaneously abandoning its mutual holding company structure in favor of a stock-owned model.
The twin announcements, made Monday, represent another step in the Easthampton, Massachusetts-based company’s effort to build a larger regional banking franchise across New England. They also come as Hometown prepares to unite its three banking subsidiaries under the TruNorth Bank name later this summer.
Under the merger agreement, Hometown will acquire Bedford, New Hampshire-based Primary Bank in a transaction that adds approximately $743 million in assets and four branches in southern New Hampshire. Once completed, the combined institution will operate 59 TruNorth Bank locations across Massachusetts, southern New Hampshire and northeastern Connecticut.
The acquisition continues an aggressive expansion strategy. Hometown said the Primary Bank deal marks its ninth strategic merger in the past decade.
“We’re thrilled to welcome Primary Bank’s customers, employees, and communities to Hometown Financial Group and TruNorth Bank,” Matthew Sosik, Hometown’s chief executive officer and chairman of the future TruNorth Bank, said in a statement. “This merger is another important step in our strategy to grow with purpose.”
The agreement values Primary Bank at approximately $160 million. Shareholders will receive either $33 in cash or $31 in stock of Hometown’s newly formed holding company for each Primary share they own, with half of the outstanding shares converted to cash and the other half to stock.
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Founded in 2015, Primary Bank operates branches in Bedford, Derry, Manchester and Nashua and has built a commercial banking franchise serving southern New Hampshire.
Crystal Dionne, Primary Bank’s president and chief executive, said the transaction preserves the bank’s commitment to local communities while providing greater scale.
“The talent, leadership and deep market expertise being brought together will allow for our core mission to continue serving New Hampshire,” Dionne said. “We could not have asked for a better partner that shares the same community values and commitment to excellence.”
William Greiner, Primary Bank’s chairman, called the transaction “the next logical step” in the bank’s evolution.
“As consolidation in the banking industry continues, this partnership allows our organizations to build on their shared track record of prioritizing customer needs and helping local businesses take hold, grow, and prosper,” Sosik said.
The acquisition will also give Primary Bank customers access to Hometown Mortgage, which is expected to become TruNorth Mortgage when Hometown completes the consolidation of its three banks in August.
That consolidation was announced earlier this year and will combine bankESB, bankHometown and TruNorth Bank under a single charter operating as TruNorth Bank, subject to regulatory approval.
Alongside the acquisition, Hometown’s board unanimously approved a plan to convert from a mutual holding company into a publicly traded stock holding company, a move that could provide greater flexibility for future growth and capital raising.
Under the conversion, a newly formed Maryland corporation will become the parent company of TruNorth Bank. Eligible depositors at TruNorth Bank as of June 30, 2025, will receive first-priority, non-transferable subscription rights to purchase shares in the stock offering. Primary Bank depositors will not receive those subscription rights.
Hometown also plans to establish a charitable foundation funded with shares equal to 4% of those sold in the offering.
The conversion and the Primary Bank acquisition are expected to close simultaneously during the first quarter of 2027, subject to regulatory approvals, approval by Primary shareholders and approval from Hometown MHC’s corporators.
The transactions would significantly strengthen Hometown’s presence in southern New Hampshire, a market where it already maintains a branch in Newton but has sought a larger footprint.
Hometown Financial Group currently manages approximately $6.9 billion in assets through 55 banking offices. The addition of Primary Bank would further increase its size while expanding its commercial lending presence in one of New England’s fastest-growing banking markets.
“Together, we will be better positioned to compete, innovate, and grow — and to help Primary Bank’s business customers in New Hampshire do the same.”
– Michael Wheeler
President & CEO
TruNorth Bank
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
