Rhode Island mutual to gain Connecticut branches via acquisition
Centreville Bank in West Warwick, R.I., has agreed to buy PB Bancorp in Putnam, Conn.
The $1.3 billion-asset Centreville said in a press release Tuesday that it will pay $115.5 million in cash for the $530 million-asset parent of Putnam Bank. The deal, which is expected to close in the first or second quarter, priced PB Bancorp at 145% of its tangible book value.
PB Bancorp has eight branches.
The acquisition "makes great strategic sense, business sense and cultural sense,” Harold Horvat, Centreville’s chairman, president and CEO, said in the release. “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.”
One PB Bancorp director will join Centreville’s board of trustees. PB Bancorp’s branches will retain their name, operating as a division of Centreville Bank.
Boenning & Scattergood and Nutter McClennen & Fish advised Centreville. Keefe, Bruyette & Woods and Luse Gorman advised PB Bancorp.