The Naugatuck Valley Financial Corp., parent company of Naugatuck Valley Savings & Loan, is expanding through its purchase of The Bank of Southern Connecticut.
Southern Connecticut Bancorp is the parent company of The Bank of Southern Connecticut (BSC).
The boards of Bank of Southern Connecticut and Naugatuck Valley Financial have signed a “definitive agreement” under which BSC would be sold to the Naugatuck bank’s holding company for $7.25 a share, or a total of about $19.5 million.
Under the deal, NVFC would also go public, converting from a mutual holding company to a stock corporation.
NVFC’s depositors and the federal Office of Thrift Supervision still need to approve the deal. If they do, the sale is expected to take place in the fall. It would add BSC’s $137.9 million in assets to NVFC’s current $542.3 million.
NVC President and CEO John Roman said Tuesday that he plans to retain the BSC name on the four New Haven area branches.
“We feel it’s a strong market adjacent to our existing market area,” Roman said.
NVFC has 130 employees and branches in eight Naugatuck Valley communities, including Shelton, Derby, and Seymour. BSC has employees and branches on Church Street and Amity Road in New Haven, plus two others, in Branford and North Haven. It has about 36 employees for now.
Roman was asked those 35 people will still work for the company after the sale.
“We’re assessing that right now,” he replied.