CFSB Bancorp, Inc. (NASDAQ: CFSB) is attracting significant investor interest during pre-market trading following the announcement of a definitive merger agreement. As of the latest check, the company’s stock price surged by 66.18%, reaching $13.61. The sharp rise in share value comes in the wake of a strategic acquisition plan by Hometown Financial Group, Inc., the parent company of bankESB, bankHometown, and North Shore Bank, including its Abington Bank division.
Major Merger Deal Finalized
The boards of directors of both companies have unanimously approved the deal, which calls for Hometown Financial Group to buy CFSB Bancorp and Colonial Federal Savings Bank, its fully owned subsidiary. The entire deal will be worth around $44 million, with $14.25 in cash per share going to CFSB shareholders. The fourth quarter of 2025 is when the deal is anticipated to conclude.
Expanded Regional Footprint
After the merger is finalized, Colonial Federal Savings Bank will become a part of North Shore Bank, creating a merged banking institution with $3.3 billion in assets and 29 retail branches throughout southern New Hampshire; and the North and South Shores of Massachusetts.
The Colonial Federal branches in Quincy, Holbrook, and Weymouth will be absorbed into North Shore Bank, which will continue under the leadership of Executive Chairman Kevin M. Tierney, Sr., and President and CEO Michael R. Wheeler.
Strategic Growth for Hometown
This merger marks the eighth strategic acquisition by Hometown Financial Group in the past decade and significantly boosts its presence in eastern Massachusetts. The group’s consolidated assets will grow to nearly $6.9 billion, supported by a robust network of 56 branches spread across Massachusetts, southern New Hampshire, and northeastern Connecticut.
Enhanced Customer and Community Benefits
It is anticipated that the deal would benefit communities, consumers, and employees in significant ways. Customers of Colonial Federal will have more access to a greater range of financial services, including enhanced digital banking capabilities and more mortgage alternatives through Hometown Mortgage. The action is intended to improve operational reach and service options throughout the area.
