Company Release – 12/16/2016
Wallkill, NY – Wallkill Valley Federal Savings & Loan and Hometown Bancorp, Inc. (MHC) (OTC Pink: HTWC) jointly announced that they have entered into a definitive merger agreement under which Wallkill will acquire Hometown Bancorp, Inc. (MHC) for $3.01 per share which will be paid out in cash to all public shareholders (excluding any shares held by Hometown Bancorp MHC).
Under the terms of the agreement, Hometown Bank of the Hudson Valley will merge into Wallkill Valley Federal Savings & Loan, with Wallkill Valley Federal Savings & Loan the surviving entity. The merger has been approved by each company's board of directors and is anticipated to close by the third quarter of 2017, subject to regulatory approvals, the approval of the shareholders of Hometown Bancorp, Inc. (MHC) and the members of Hometown Bancorp MHC and Wallkill Valley Federal Savings & Loan and other customary closing conditions.
The merger will add to Wallkill Valley Federal Savings & Loan’s already strong growth and will enhance its presence in Orange County. As of September 30, 2016, Hometown Bancorp, Inc. (MHC) had approximately $123 million in assets, $106 million in gross loans and $104 million in deposits. At the time of closing, the combined institution is expected to be over $320 million in assets, $268 million in gross loans, $256 million in total deposits with eight branches, located throughout Orange and Ulster Counties.
Wallkill Valley Federal Savings & Loan President and CEO Mike Horodyski shared, “We are excited about the opportunity to grow our brand through the combination of two great local banks with strong roots in the Hudson Valley. We feel that the acquisition will position us well in the future to help us as we continue our commitment to our customers and community.”
Mr. Horodyski also commented on the merging of the two banks, “Although full integration of the two institutions is expected to take time, the commonality of their history and their combined vision for the community will certainly go a long way toward creating a smooth transition.”
Stephen Dederick, President and Chief Executive Officer of Hometown Bancorp, Inc. (MHC), stated, “We are excited to combine with an organization that shares our dedication to customer service and quality community banking. We each have a similar hometown customer focus that will continue to make decisions locally and with a vested interest in our communities.”
Sandler O’Neill & Partners, L.P. served as financial advisor to Wallkill Valley Federal Savings & Loan. Hinman, Howard & Kattell, LLP is serving as legal counsel to Wallkill Valley Federal Savings & Loan. FinPro Capital Advisors Inc. served as financial advisor to Hometown Bancorp, Inc. (MHC) and rendered a fairness opinion. Luse Gorman, PC is serving as legal counsel to Hometown Bancorp, Inc. (MHC).
Forward Looking Statements
This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of Wallkill Valley Federal Savings & Loan and Hometown Bancorp, Inc. (MHC). Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses of Wallkill Valley Federal Savings & Loan and Hometown Bancorp, Inc. (MHC) and changes in the securities markets. Except as required by law, Wallkill Valley Federal Savings & Loan and Hometown Bancorp, Inc. (MHC) do not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.
About Wallkill Valley Federal Savings & Loan
Wallkill Valley Federal Savings & Loan is a community-minded bank that has been proudly serving individuals and locally owned businesses throughout Ulster and Orange County for over 100 years. Their goal is to offer personalized service that moves customers closer to achieving their financial goals. From the time the institution was established in 1913, Wallkill Valley Federal Savings & Loan has provided banking products and services in their unique way, with a focus on placing the needs of the community first. Although recent years have been challenging for all financial institutions, by focusing on fiscal responsibility, providing fair rates and strengthening their product offering, Wallkill Valley Federal Savings & Loan has not only maintained their presence in the community, they’ve expanded it. The entire staff is devoted to personally serving the people and businesses within the Hudson Valley. This merger becomes an opportunity to deepen developing relationships in the community, create ways to better serve customers and gain strength as an institution. For detailed information regarding branch hours, products or services, call the Wallkill branch at 845-895-2051 or visit www.wallkill.com
About Hometown Bank of the Hudson Valley
Established in 1919, Hometown Bank is a community-oriented bank headquartered in Walden, New York. Through our four branch offices and two loan offices, we offer a full-range of financial services to individuals and businesses within Orange and Ulster County. We pride ourselves in providing service-oriented mortgage lending, offering a variety of home loan products. For additional information about Hometown Bank, please visitwww.hometownbankhv.com.