Centreville Bank and PB Bancorp have entered into a definitive merger agreement for Centreville Bank to acquire PB Bancorp and its wholly owned subsidiary, Putnam Bank, in a transaction valued at approximately $115.5 million.
Under the terms of the agreement, shareholders of PB Bancorp will receive $15.25 in cash per share. The merger consideration represents approximately 145% of PB Bancorp’s tangible book value as of June 30, 2019. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the shareholders of PB Bancorp.
“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,” said Harold M. Horvat, president, CEO and chairman of Centreville Bank.
The combined organization will have approximately $1.78 billion in assets and $1.31 billion in deposits. Upon completion of the transaction, one current member of the board of directors of PB Bancorp will be appointed to serve as a member of the Board of Trustees of Centreville Bank. Following completion of the merger, the current branches of Putnam Bank will remain open and will conduct business under the trade name “Putnam Bank, a Division of Centreville Bank.”
Boenning & Scattergood acted as financial advisor to Centreville Bank, and Keefe, Bruyette & Woods, a Stifel Company, acted as financial advisor to PB Bancorp and rendered a fairness opinion to the PB Bankcorp board of directors in conjunction with this transaction. Nutter McClennen & Fish served as legal counsel to Centreville Bank, and Luse Gorman served as legal counsel to Putnam Bank and PB Bancorp.
Founded in 1828 and headquartered in West Warwick, RI, Centreville Bank is a full-service mutual bank operating through seven branch locations in Coventry, Cranston, East Greenwich, Narragansett, North Kingstown, West Greenwich, and West Warwick.
PB Bancorp, headquartered in Putnam, CT, is the parent of Putnam Bank, a state-chartered stock savings bank founded in 1862.
