Middletown, Conn.-based Liberty Bank agreed to acquire Weatogue, Conn.-based SBT Bancorp Inc. and unit Simsbury Bank & Trust Co. in a deal valued at about $71 million.
Upon the deal completion, each SBT Bancorp shareholder will receive $51.32 per share in cash. The transaction is expected to close in September.
On a per-share basis, SNL calculates that the deal value is 202% of book and tangible book and 17.1x earnings.
SNL valuations for bank and thrift targets in the Northeast region between March 21, 2018, and March 21, 2019, averaged 163.26% of book and 158.65% of tangible book and had a median of 29.93x last-12-months earnings, on a per-share basis.
The deal has a one-day premium of 44.28%, based on SBT's closing price of $35.57 as of March 20, and a one-month premium of 43.35%, based on SBT's closing price of $35.80 as of Feb. 21.
Liberty Bank will expand in Hartford County, Conn., by six branches to be ranked eighth with a 2.39% share of approximately $39.42 billion in total market deposits.
Liberty Bank has $5.1 billion in assets and more than $738 million in capital. Simsbury Bank & Trust has total assets of about $480 million.
Cranmore FitzGerald & Meaney represented Liberty Bank in the deal. Piper Jaffray & Co. advised SBT Bancorp, while Day Pitney LLP served as its legal counsel.