WEST WARWICK – Centreville Bank will acquire Connecticut-based Putnam Bank for $115.5 million under a merger agreement between the two companies announced Tuesday.
The acquisition, expected to close in the first or second quarter of next year, gives West Warwick-based Centreville entry into eastern Connecticut’s consumer banking market.
“Bringing Putnam Bank into the Centreville Bank family makes great strategic sense, business sense and cultural sense,” Centreville Chairman, CEO and President Harold M. Horvat said in the announcement.
“Our two organizations share many common traits, including being solid fiscally, making decisions that are customer centric and having an unwavering commitment to the communities that make up our market area,” Horvat added. “We feel that our entry into eastern Connecticut through Putnam Bank is a ‘win-win’ for both institutions.”
Putnam Bank is a subsidiary of PB Bancorp Inc. Under the agreement, PB Bancorp shareholders will receive $15.25 in cash per share. The merger represents about 145% of PB Bancorp’s tangible book value as of June 30.
The deal is subject to regulatory approvals and approval by PB Bancorp shareholders.
The combined banks will have about $1.78 billion in assets and $1.31 billion in deposits. In addition, a current member of PB’s board of directors will be appointed to Centreville’s board of trustees.
After the acquisition is finalized, branches of Putnam Bank will remain open and will conduct business as “Putnam Bank, a Division of Centreville Bank,” the banks said.
Headquartered in West Warwick, Centreville is a state-chartered mutual bank with assets totaling $1.25 billion as of June 30. It currently has seven branches, in Coventry, Cranston, East Greenwich, Narragansett, North Kingstown, West Greenwich and West Warwick.
PB Bancorp, headquartered in Putnam, Conn., is the parent company of Putnam Bank, a state-chartered stock savings bank with eight branches. It also operates a loan center in Putnam. Its common stock trades on the Nasdaq Capital Market under the symbol “PBBI.”
“This transaction provides excellent value to our shareholders,” Tom Borner, CEO and president of PB Bancorp and Putnam Bank, said in the announcement. “We are excited to become part of Centreville Bank and we believe that this partnership will be beneficial to our employees, customers and communities.”
Borner added, “We look forward to partnering with the talented people of Centreville Bank to combine the best of both of our organizations and assuring that our customers and communities will benefit from the wide range of products and commitment to service provided by Centreville Bank.”
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
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