New England bank merger creates $160M mortgage opportunity

A pending merger between two New England banks will expand the mortgage lending footprint of the combined institution. Massachusetts-based Hometown Financial Group, the holding company for bankESB, bankHometown and TruNorth Bank, agreed to acquire Primary Bank, a publicly traded commercial bank based in Bedford, New Hampshire.

The deal, valued at roughly $160 million, adds $743 million in assets and four New Hampshire branches. Hometown Financial will merge all four units under the TruNorth Bank name, pending regulatory approval, starting in August. The residential lending operation will operate as 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. He will hold the same roles at the combined TruNorth.

TruNorth Mortgage: $512 million in 2025 originations

The mortgage unit is the piece that could attract the most attention from traders tracking regional bank growth. In 2025, Hometown Mortgage, the current residential lending subsidiary, originated $512.4 million in loans across New England, according to IEmergent data. That covered 1,609 mortgages, with the vast majority in Massachusetts.

Primary Bank customers will gain access to mortgage products from TruNorth Mortgage after the deal closes. The combined entity will have 59 locations across three states. The acquisition is Hometown Financial's ninth in 10 years.