Easthampton Savings Bank, a prominent financial institution deeply rooted in Massachusetts, has announced a strategic partnership with Hometown Bank, marking a significant move to enhance its regional presence and service capabilities. This collaboration, formalized through a merger of their holding companies, positions the combined entity as a robust community banking leader in central and western Massachusetts, and northeast Connecticut. The partnership underscores Easthampton Savings Bank’s commitment to growth and strengthens its ability to serve communities while maintaining its customer-centric approach.
The merger will create a substantial financial force, boasting over $1.7 billion in assets and exceeding $180 million in equity capital. This expanded scale will be supported by an extensive network of 23 branches, ensuring greater convenience and accessibility for customers across the region. While the holding companies will merge, both Easthampton Savings Bank and Hometown Bank will continue to operate as distinct entities, preserving their individual brands and community focus. This strategic approach allows each bank to maintain its unique identity while leveraging the collective strength of the partnership.
Michael D. Hewitt, President and CEO of Hometown Bank, highlighted the strategic advantages of this alliance, stating, “Partnering with an institution as reputable and successful as Easthampton Savings Bank is a significant step forward for us. This merger is about two thriving banks uniting to better serve our communities. The increased scale and resources will enable us to be more competitive and successful in the long run, while also expanding our market reach.”
Echoing this sentiment, Matthew S. Sosik, President and CEO of Easthampton Savings Bank, emphasized the shared values and vision underpinning the partnership. “We are thrilled to join forces with Hometown Bank, an organization that shares our commitment to strong financial performance and community engagement. Our banks have similar business models and cultures, characterized by robust leadership and a history of success. By operating independently under a unified holding company, we can capitalize on efficiencies and economies of scale, ensuring a sustainable future for both banks and attracting other like-minded community banks in New England to consider joining our partnership.”
The evolving landscape of community banking necessitates strategic collaborations to navigate rising operating costs and narrowing net interest margins. Hewitt further explained, “In today’s banking environment, size and scale are increasingly important. This transaction provides both Easthampton Savings Bank and Hometown Bank with the critical mass needed to enhance our financial strength and better serve our communities for years to come.”
Following the merger, ESB Bancorp will absorb Hometown Community Bancorp. Matthew S. Sosik will assume the role of CEO for the merged holding company, while Michael D. Hewitt will serve as President. Both will retain their positions as CEOs of Easthampton Savings Bank and Hometown Bank, respectively. The newly formed parent holding company is slated to be renamed Hometown Financial Group, reflecting its strategic direction as a multi-bank holding company.
Assuring customers of a seamless transition, Sosik emphasized, “Customers of both Easthampton Savings Bank and Hometown Bank can expect uninterrupted service and the same level of community commitment they have always received. There will be no changes to bank names or customer-facing operations. In fact, demonstrating our deepened community commitment, Easthampton Savings Bank is allocating $1 million to establish a charitable foundation dedicated to the communities served by Hometown Bank.” Hewitt added that the banks’ compatible technology platforms will ensure a smooth integration, stating, “This will be entirely seamless for customers of both banks.”
The merger, unanimously approved by the Boards of Directors of both banks, is pending customary approvals, including votes from both banks’ corporators and regulatory clearances. The transaction is anticipated to be finalized in the first quarter of 2016, heralding a new chapter of growth and enhanced community banking services under the Easthampton Savings Bank umbrella and the newly formed Hometown Financial Group.
About Easthampton Savings Bank
Easthampton Savings Bank, a wholly-owned subsidiary of ESB Bancorp, Inc., operates as a Massachusetts mutual savings bank with headquarters in Easthampton, MA. With approximately $1.4 billion in assets, Easthampton Savings Bank currently manages fifteen full-service banking offices across western Massachusetts and northeastern Connecticut.
About Hometown Bank
Hometown Bank, a wholly-owned subsidiary of Hometown Community Bancorp, Inc., is a Massachusetts mutual cooperative bank based in Oxford, MA. Hometown Bank has approximately $400 million in assets and operates eight full-service banking offices throughout central Massachusetts.
Contact Information:
Matthew S. Sosik
President and CEO
Easthampton Savings Bank
(413) 779-2218
