Rhode Island-based Centreville Bank has signed definitive agreement to acquire PB Bancorp and its banking subsidiary Putnam Bank in a deal valued at $115.5m.
Under the terms of the agreement, PB Bancorp shareholders will receive $15.25 in cash for each share they hold.
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A PB Bancorp board member will join the Board of Trustees of Centreville Bank, as part of the deal.
Putnam Bank acquisition: Background
Founded in 1862, Putnam Bank offers a variety of financial services through its eight branches.
The deal will create an entity with around $1.78bn in assets and $1.31bn in deposits. Once complete, the Putnam Bank branches will operate as a division of Centreville Bank, retaining its brand name.
Centreville Bank chairman and CEO Harold Horvat said: “Bringing Putnam Bank into the Centreville Bank family makes great strategic sense, business sense, and cultural sense.
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By GlobalData“Our two organisations 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.”
PB Bancorp and Putnam Bank president and CEO Tom Borner said: “This transaction provides excellent value to our shareholders.
“We are excited to become part of Centreville Bank and we believe that this partnership will be beneficial to our employees, customers and communities.”
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the shareholders of PB Bancorp.
For this transaction, Boenning & Scattergood served as financial advisor to Centreville Bank, while Nutter McClennen & Fish offered legal assistance.
The Putnam Bank acquisition is slated to close in the first or second quarter of 2020. The deal is subject to regulatory approvals and green light from PB Bancorp shareholders among other customary closing conditions.
