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SI Financial Group agrees to purchase Newport Bancorp

US-based bank holding company SI Financial Group has agreed to acquire Newport Bancorp, in a bid to strengthen its footprint in Newport and Washington counties in Rhode Island.

As per terms of the definitive merger agreement, the acquirer will get nearly $449.4m in assets, $355m in loans and $289.7m in deposits before acquisition accounting adjustments.

For each share of Newport Bancorp, its stockholders will have the right to elect to receive either $17.55 in cash or 1.5129 shares of SI Financial Group common stock in exchange.

The transaction has been valued at $17.55 per share, or nearly $61.3m in the aggregate based on SI Financial Group’s five-day average closing price of $11.60 on 4 March 2013.

SI Financial Group president and CEO Rheo Brouillard said that the deal will boost its operations in Rhode Island and Newport area, where Newport Federal Savings Bank operates five full-service banking offices, and adds one branch in Stonington, Connecticut.

Pending SI Financial Group’s and Newport Bancorp’s stockholders’ approval and customary closing conditions, the transaction is likely to conclude during the third quarter of 2013.

Keefe, Bruyette & Woods and Kilpatrick Townsend & Stockton acted as financial advisor and legal counsel to SI Financial Group, respectively, pertaining to the deal.