Connecticut MHC to Acquire Stock Bank for $13m

Nutmeg Financial MHC, the mutual holding company for Naugatuck Savings Bank, Naugatuck, CT, has reached an agreement to purchase Castle Bank & Trust Company, Meriden, CT, a stock bank, for $13 million in cash, the parties announced today. Following the acquisition, Castle will operate as a separately incorporated subsidiary of the mutual holding company. Naugatuck, with 11 branches has total assets of $649 million on $88 million in capital. Castle, founded in 1999, operates two branches and posts assets of $74 million on $6 million in capital. The acquisition is expected to close in the first quarter of 2006, subject to approval by state and federal regulators and Castle Bank stockholders. A "no lay-offs" policy has been adopted in connection with the acquisition. Source: Michael C. Bingham for the Connecticut Business News Journal, Contact.com 10/17/05 (link attached).