Easthampton Savings Bank will acquire the Putnam, Conn.-based Citizens National Bank in an all-cash deal expected to close in the third quarter next year.
"Citizens is a well-run and high-performing bank, and we are looking forward to continuing to build upon its market share with our unique style of banking. As a mutual bank, we place our customers and employees first and we will continue to emphasize the personal service and community banking focus that Citizens’ customers have come to expect and appreciate," Easthampton’s President and CEO Matthew S. Sosik said in a statement.
Under the terms of the deal, Easthampton Savings’ parent company ESB Bancorp will acquire Citizens’ parent company, Citizens National Bancorp, for approximately $51.3 million. Based on Citizens’ Sept. 30 financial information, that price tag represents about 126 percent of the company’s tangible book value and a premium of about 78 percent over its recent closing price of $38 per share. Citizens’ shareholders will receive $67.50 in cash per share.
Once the deal is completed, ESB Bancorp will have consolidated assets totaling more than $1.3 billion and a branch network of 15 full-service offices. The deal will extend Easthampton Savings Bank’s footprint into Northeastern Connecticut and Central Massachusetts.
"We believe this transaction is an excellent opportunity for us to partner with a top-performing mutual bank. We are extremely confident that this combination will serve our customers very well by continuing the high quality of service provided by our dedicated employees and expanding the products and services available to our customers," David L. Conrad, Citizens’ president and CEO said.
Sosik also said in the statement that he expects to operate Citizens’ five Windham County branches under the bank’s original name after the transaction’s completion.
The merger is still pending regulatory approval, as well as approval of a majority of Citizens’ shareholders.
Sterne, Agee & Leach Inc. acted as financial advisor to Citizens National Bancorp and rendered a fairness opinion to the board of directors in conjunction with this transaction. Kilpatrick Townsend & Stockton LLP served as legal counsel to ESB Bancorp and Cranmore, FitzGerald & Meaney served as legal counsel to Citizens National Bancorp.
Also on Dec. 11, the board of directors of Citizens National Bancorp declared a dividend of 50 cents per share payable on Jan. 9, 2015 to shareholders of record as of Dec. 23.
