SI Financial Group (SIFF) in Willimantic, Conn., will buy Newport Bancorp (NFSB) in Rhode Island for roughly $61.3 million.

For the $953 million-asset SI Financial, the deal would add $449 million in assets and five branches. Under the terms of the agreement, Newport's shareholders can elect to receive either $17.55 in cash or roughly 1.5 shares of SI Financial's common stock in exchange for each Newport share they own. Half of the consideration must involve cash.

"This combination presents a tremendous opportunity for us to expand our presence into Rhode Island and partner with such a well-managed, like-minded banking company," Rheo Brouillard, SI Financial's chief executive, said in a press release.

Keefe Bruyette & Woods and the law firm of Kilpatrick Townsend & Stockton advised SI Financial on the deal, which is expected to close in the third quarter. Sandler O'Neill & Partners and the law firm of Luse Gorman Pomerenk & Schick advised Newport.

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