After the closure of the deal, the combined organisation will have total assets worth $1.78bn and $1.31bn in deposits

Centreville Bank

Image: Centreville Bank to acquire Putnam Bank. Photo: Courtesy of Gerd Altmann/Pixabay

Rhode Island-based savings bank Centreville Bank has signed an agreement to acquire PB Bancorp and its subsidiary Putnam Bank, for $115.5m.

The deal is expected to close in the first half of next year, subject to the receipt of regulatory approvals and approval from PB Bancorp shareholders.

Headquartered in Putnam, Connecticut, Putnam Bank is a community bank established in 1862. The bank offers mortgage loans secured by one- to four-family residential real estate, loans secured by non-residential real estate and multi-family real estate, residential construction loans, commercial loans as well as consumer loans. It also offers wide range of deposit accounts, such as checking, savings, and certificates of deposit.

The combined organisation will have about $1.78bn in assets and $1.31bn in deposits. After the deal is closed, one member from PB Bancorp’s board of directors will join as a member of the Board of Trustees of Centreville Bank.

The current branches of Putnam Bank will remain open, conducting business under the trade name ‘Putnam Bank, a Division of Centreville Bank’.

The consideration represents 145% of PB Bancorp’s tangible book value

Under the terms of the acquisition, PB Bancorp shareholders will receive $15.25 in cash per share. The total consideration represents nearly 145% of PB Bancorp’s tangible book value as of 30 June 2019.

Centreville Bank president, CEO and chairman Harold M Horvat said: “Bringing Putnam Bank into the Centreville Bank family makes great strategic sense, business sense, and cultural sense. 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.

“We feel that our entry into Eastern Connecticut through Putnam Bank is a ‘win/win’ for both institutions.”

PB Bancorp 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.

“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.”

Based in West Warwick, Rhode Island, Centreville Bank was founded in 1828. It is a full-service mutual bank operating through seven branch locations in Coventry, Cranston, East Greenwich, Narragansett, North Kingstown, West Greenwich and West Warwick.

The bank had $1.25bn in total assets as of 30 June 2019.