Primary Bank to be acquired by Hometown Financial in $160M deal

Primary Bank (PRMY) agreed to be acquired by Hometown Financial Group for roughly $160 million, the companies said. Shareholders can elect to receive $33 in cash or $31 in stock for each share they hold.

The deal combines two community lenders. Primary Bank operates as a small commercial bank. Hometown Financial, based in New Hampshire, runs multiple bank brands across the Northeast. The acquisition expands Hometown's footprint and adds deposit base and loan portfolio.

The transaction is structured as a merger. Primary Bank shareholders who choose stock will receive shares of Hometown Financial's holding company. The cash-and-stock election gives investors flexibility based on their tax situation and views on the combined entity's prospects.

Community bank M&A has been active as smaller lenders face rising regulatory costs and the need to invest in technology. Deals like this allow banks to achieve scale without building organically. The $160 million price tag provides a valuation data point for other small banks considering a sale.

The boards of both companies approved the deal. It is subject to regulatory approvals and a vote by Primary Bank shareholders. No closing date has been set.