Hometown Financial Group, Inc. has entered into an Agency Agreement with Keefe, Bruyette & Woods, Inc. (KBW) to serve as the exclusive financial advisor and marketing agent for the company's common stock offering. The agreement was executed on November 12, 2026, and is intended to support the conversion of Hometown Financial Group, MHC from a mutual holding company structure to a fully stock-owned organization.
Under the terms of the agreement, the company plans to offer a minimum of 51,000,000 shares and a maximum of 69,000,000 shares of common stock, with the option to increase the maximum offering size to 79,350,000 shares. The shares are priced at $10.00 per share. The offering is being conducted pursuant to a Registration Statement on Form S-1, Registration No. 333-298861.
KBW will act on a best efforts basis to market the shares. The firm will receive a success fee based on the aggregate purchase price of the shares sold. The fee structure includes 0.90% for shares sold in the subscription offering and 1.50% for shares sold in any community offering. These percentages exclude shares purchased by the Bank’s employee stock ownership plan and shares issued to a charitable foundation. Additionally, KBW will receive a management fee of $100,000, which will be credited against the success fee.
The agreement outlines other potential compensation for KBW, including a fee of up to 5.00% for a syndicated community offering or a firm commitment offering. The firm may also receive up to $100,000 in additional compensation for significant services required during a resolicitation of subscribers. Reimbursement for legal fees and expenses is capped at $225,000, with other out-of-pocket expenses limited to $50,000, for a total reimbursable expense maximum of $345,000. KBW will also receive a fee of $75,000 for its services as conversion agent and data processing records management agent, with the potential for an increase of up to $12,500 depending on material changes in regulations or the conversion plan.
