SI Financial Group, the holding company for the Willimantic-headquartered Savings Institute Bank and Trust Co., today announced new terms of its merger agreement with Newport Bancorp, per the votes of the latter’s shareholders. 

According to the terms, 50 percent of Newport Bancorp’s common stock will be converted into SI Financial common stock and 50 percent will be converted into cash. 

Newport Bancorp’s shareholders were given the option to receive either 1.5129 shares of SI Financial common stock or $17.55 in cash for each share owned, subject to proration. Of the 3,547,372 shares of Newport Bancorp common stock outstanding as of the election deadline on Aug. 23, 819,759 shares elected to receive SI Financial common stock, 2,231,272 shares elected to receive cash, and 496,341 shares did not make a valid election.

Based on the final election results and applying the adjustment, election and allocation procedures set forth in the merger agreement, Newport Bancorp shareholders who made valid elections to receive the stock consideration will receive stock consideration for 100 percent of their shares subject to such election. Newport Bancorp shareholders who failed to make a valid election also will receive stock consideration for 100 percent of their shares. Newport Bancorp shareholders who made valid elections to receive the cash consideration will receive 0.3103 of SI Financial common stock and $13.95 in cash for each share of Newport Bancorp owned.

No fractional shares of SI Financial common stock will be issued. Instead, Newport Bancorp shareholders will receive cash in lieu of fractional shares based on the average closing price of SI Financial common stock for the five consecutive trading days ending on the third business day before the closing date.

The merger between SI Financial and Newport Bancorp is expected to close this Friday.