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

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.