CFSB Bancorp: Shareholders to Receive Big Payday in Hometown Financial Acquisition

Deal News | May 21, 2025 | EIN

CFSB Bancorp, along with its subsidiary Colonial Federal Savings Bank, has entered into a definitive merger agreement with Hometown Financial Group. The agreement was unanimously approved by both companies and is set to provide CFSB shareholders with $14.25 in cash per share, culminating in a total valuation of approximately $44 million. The merger is expected to close in the fourth quarter of 2025, pending necessary approvals. Post merger, Colonial Federal will merge into North Shore Bank, creating a $3.3 billion entity with expanded reach across Massachusetts and into southern New Hampshire. Hometown Financial Group is poised to have nearly $6.9 billion in consolidated assets through this merger. Leaders of both companies expressed optimism about the shared benefits and expanded resources that the merger will bring to their customers and communities.

Sectors

Banking and Finance
Mergers and Acquisitions

Geography

United States – The article focuses on a merger involving companies based in the United States, specifically within the regions of Massachusetts, New Hampshire, and Connecticut.

Industry

Banking and Finance – The article involves the merger between two banking organizations, CFSB Bancorp and Hometown Financial Group, which are significant players in the banking and finance sector.
Mergers and Acquisitions – The article discusses a definitive merger agreement, a typical activity within the mergers and acquisitions sector, involving the acquisition of CFSB Bancorp by Hometown Financial Group.

Financials

$14.25 per share – The amount each CFSB shareholder will receive in cash per share as part of the merger.
$44 million – The approximate total valuation of the merger transaction between CFSB Bancorp and Hometown Financial Group.
$3.3 billion – The estimated value of the entity post-acquisition, comprising North Shore Bank and Colonial Federal Savings Bank.
$6.9 billion – Projected total consolidated assets of Hometown Financial Group following the merger.
$1.3 million – CFSB's cash and cash equivalents as of March 31, 2025.

Participants

Name	Role	Type	Description
CFSB Bancorp, Inc.	Target Company	Company	CFSB Bancorp is the company entering into a merger agreement to be acquired by Hometown Financial Group.
Colonial Federal Savings Bank	Subsidiary	Company	Subsidary of CFSB Bancorp that will be merged into North Shore Bank as part of the acquisition.
Hometown Financial Group, Inc.	Bidding Company	Company	The acquiring company entering into a definitive merger agreement with CFSB Bancorp.
North Shore Bank	Role Post-Merger	Company	Bank into which Colonial Federal Savings Bank will be merged post-acquisition, forming a larger banking entity.
Matthew S. Sosik	CEO of Hometown Financial Group	Person	Leading the acquisition and merger strategy for Hometown Financial Group.
Michael E. McFarland	CEO of CFSB and Colonial Federal Savings Bank	Person	Overseeing the merger process from the perspective of CFSB and Colonial Federal.