Putnam County Savings Bank (“PCSB”) and CMS Bancorp, Inc. (NASDAQ: CMSB) (“CMS”), the holding company for CMS Bank, jointly announced the execution of a definitive merger agreement, dated September 25, 2014, which provides for the acquisition of CMS and CMS Bank by PCSB in an all cash transaction valued at $13.25 per share and an aggregate deal value of approximately $25.4 million. The definitive merger agreement is subject to approval by CMS’s stockholders and applicable banking regulatory authorities. It is anticipated that the merger will close in the first half of 2015.
The transaction will add five retail branches in Westchester County to PCSB’s existing 10 branch network. The CMS Bank branch offices will be operated under the name “Putnam County Savings Bank.” One CMS director will be joining the PCSB Board of Trustees. In announcing the transaction, PCSB president and Chief Executive Officer, Joseph D. Roberto, stated, “We are extremely excited about our partnership with CMS. This transaction provides an excellent platform for further growth and will expand our franchise in the Westchester County market. We look forward to continuing PCSB’s excellent customer service and our goal of investing in the communities we serve.”
John E. Ritacco, president and CEO of CMS, said, “The merger with Putnam County Savings Bank is very good news for our stockholders, customers and employees. Our stockholders will benefit from the all-cash terms of the merger agreement. Our customers will gain access to a deeper level of products and quality services provided by a strong and committed local community bank, and CMS will serve as a platform for Putnam’s deeper expansion in the Westchester market. The combined organization will continue to have the same great quality of customer service provided by dedicated people who are committed to being involved in the local community, and with the added resources of a larger and stronger community banking organization.”