Hometown Financial (HFG) investor relations material

Company overview and business model

• Converted from a mutual holding company to a stock holding company structure, with a new Maryland-based holding company owning 100% of TruNorth Bank.

• Operates 55 banking offices across Massachusetts, Connecticut, and New Hampshire, with a focus on community banking, commercial and residential lending, and wealth management.

• Growth strategy includes organic expansion, commercial lending, and selective acquisitions, including the pending acquisition of Primary Bank.

• Business model emphasizes diversified funding, prudent risk management, and community engagement, including a new charitable foundation.

Financial performance and metrics

• As of June 30, 2026: total assets $6.94 billion, net loans $5.32 billion, deposits $5.81 billion, and total equity $755.3 million.

• FY 2026 net income was $43.4 million, down from $47.9 million in FY 2025, with a return on average assets of 0.64% and return on average equity of 5.94%.

• Net interest margin increased to 3.59% in FY 2026, with non-performing assets at 1.19% of total assets.

• Pro forma capital ratios post-offering and merger are expected to exceed regulatory requirements, with tangible equity projected at 13.87–16.53% of assets.

Use of proceeds and capital allocation

• At least 50% of net proceeds will be contributed to TruNorth Bank to support lending, fund the Primary Bank acquisition, and enhance capital.

• Proceeds will also repay $135 million in senior debt, fund an ESOP loan, and may be used for investments, dividends, share repurchases, and future acquisitions.

• A portion of shares (4% of those sold) will be contributed to a new charitable foundation.