Naugatuck Savings To Buy Meriden Bank - All-cash Castle Bank deal to fetch $13 per share
By M.C.B., Business New Haven
NAUGATUCK - Mutual holding company Nutmeg Financial, MHC, parent of Naugatuck Savings Bank, has reached a deal to acquire the stock of Meriden-based Castle Bank & Trust Co. for $13 per share in an all-cash transaction.
In consequence Castle Bank & Trust Company will become a wholly owned subsidiary of Nutmeg Financial, along with Naugatuck Savings Bank. Nutmeg Financial will remain a mutual institution.
The transaction will create a mutual holding company structure with combined assets of approximately $720 million and more than $550 million in deposits. The company will operate 13 branches between New Haven County, Litchfield County and central Connecticut.
"We are excited by this opportunity to partner with another bank that has the same tradition of commitment to customers and community that we have at NSB," said Mark Yanarella, Naugatuck Savings� President and CEO.
Added Castle Bank President, CEO and Chairman Lawrence M. McGoldrick, "This partnership will allow Castle Bank to continue to grow a financially strong community bank that can focus our future profitability, on enhancing our services to customers and strengthening the economic and social fabric of the central Connecticut communities we built this bank to serve."
The transaction is expected to close in the first quarter of 2006 and is contingent upon regulatory approvals and Castle Bank & Trust shareholder approval. A "no-employee-layoff" policy has been adopted in connection with the transaction.
The management and staff of Castle Bank & Trust will continue to manage Castle Bank, the company says. McGoldrick will continue on as President and CEO of the institution.
Founded in 1870, Naugatuck Savings operates 11 branches in Naugatuck, Ansonia, Chechire, Middlebury, Oxford, Prospect, Southbury, Waterbury, Watertown and Woodbury. As of June 30 it reported $649 million in assets, $518 million in deposits and $88 million in capital.
Founded in 1999, Castle Bank & Trust operates 2 branches in Meriden. On June 30 it had $74 million in assets, $45 million in deposits and $6 million in capital.
Monday, October 17, 2005
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