Bank of Smithtown has completed its acquisition of the Seigerman-Mulvey Co. insurance agency of East Setauket, New York.
Seigerman-Mulvey Co. is an agency that has been doing business on Long Island for 30 years, placing policies with more than 30 insurance carriers. The agency has been owned and operated by Barry Seigerman, John Mulvey and Joanne Bentivegna.
During April, Bank of Smithtown announced its intention to acquire the agency. The bank received the necessary regulatory approvals during July, and closed the transaction yesterday, August 31, 2004.
The precise terms of the deal were not disclosed, but Bank of Smithtown Chairman & and Chief Executive Officer Bradley Rock did say that the price to be paid would be determined over the course of three years on an “earn-out” basis, meaning that the price will depend upon the agency’s contribution to the bank’s net income. Rock also said that the agency’s revenues have exceeded $3 million a year for the last three years. The deal will be accretive to Bank of Smithtown’s earnings immediately.
As part of the deal, all three of the agency’s principals will remain with the company pursuant to employment agreements. Seigerman will continue as president and chief executive officer, and Mulvey as executive vice president and chief operating officer.
Bank of Smithtown is a 95 year old community bank. Smithtown Bancorp is the publicly-held holding company for Bank of Smithtown. The company’s shares are listed on NASDAQ under the symbol “SMTB.”