Randolph Bancorp, Inc. , the holding company for Envision Bank, has entered an agreement to be acquired by Hometown Financial Group, Inc. Hometown Financial is the multi-bank holding company for bankESB, bankHometown and Abington Bank. The closing of the merger, expected in fourth-quarter 2022, is subject to the receipt of required regulatory approvals, shareholder approval and other standard conditions. Per the deal, Envision Bank will merge with and into Abington Bank, leading to the creation of a $1.4-billion bank with 11 full-service retail locations across the South Shore, including the towns of Abington, Avon, Braintree, Cohasset, Holbrook, Marion, Randolph and Stoughton. The merger will be the sixth transaction for Hometown Financial in the last seven years. Randolph’s acquisition is expected to help Hometown Financial expand its market presence in eastern Massachusetts. Following the deal closure, Hometown Financial will have consolidated assets worth $4.4 billion and a branch network of 38 full-service offices across Massachusetts and northeastern Connecticut. According to the terms of the merger agreement, shareholders of Randolph will get $27 in cash for each of their shares held. The total deal value is $146.5 million. The directors and executive officers at Randolph’s, who currently own 7.65% of the company’s outstanding common shares, have signed voting agreements pursuant to which they have agreed to vote their shares in favor of the merger. Matthew S. Sosik, the CEO of Hometown Financial, stated, “With the addition of Envision Bank, we more than double our full-service locations and assets in eastern Massachusetts. We are very excited to share the significant resources of Hometown Financial Group with the employees and customers of Envision Bank.” Sosik added, “Our holding company structure brings the best of both worlds to our customers, employees, and communities. Each bank has deep roots in the neighborhoods they call home, so each can operate independently to harness its own local branding power while taking advantage of our extensive shared resources that take advantage of size, scale, and efficiency.” Abington Bank’s CEO and president, Andrew Raczka, said, “Envision Bank customers will enjoy our enhanced products and services and our business customers will benefit from an increase in lending capacity.” William M. Parent, the president and CEO of Randolph, commented, “We are very pleased to have reached this agreement. Our shared values and complementary business models make this an ideal partnership. Both organizations are highly respected as leaders in the community and we believe Hometown Financial Group’s focus on innovation and technology will help meet the evolving needs of customers of both Hometown Financial Group and Envision Bank by providing greater access to digital banking tools and an expanded branch network.” So far this year, shares of Randolph have gained 10.1% against a 1.8% decline of the industry.
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Currently, Randolph carries a Zacks Rank #3 (Hold). You can see
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