The parent of Savings Institute Bank & Trust, eager to become a billion-dollar-asset lender, buying a small Rhode Island lender for $61.3 million to enter the Ocean State.
SI Financial Group Inc. is offering $17.55 a share in either cash or stock to stockholders in Newport Bancorp Inc., parent of Newport Federal Savings Bank.
Both banks’ boards have OK’d the merger, which awaits formal approval from state and federal bank regulators. It is expected to close in the third quarter.
SI would add to its $953 million in assets about $450 million in assets from Newport Fed, along with Newport’s five branches, one of which is in Stonington.
Keefe, Bruyette & Woods was SI’s financial advisor and rendered a fairness opinion on the deal, while law firm Kilpatrick Townsend & Stockton LLP was legal counsel.
Sandler O’Neill & Partners was Newport’s financial advisor; Luse Gorman Pomerenk & Schick P.C. is legal wrangler.
