Stockholders OK bank merger


NAUGATUCK — Naugatuck Valley Savings and Loan stockholders have approved a pending merger into Liberty Bank, the bank announced Tuesday.

The planned merger was approved by shareholders at a special meeting Oct. 8. The transition remains subject to the approval of the state Department of Banking.

Naugatuck shareholders will be entitled to receive $11 in cash for each common share of the bank’s stock.

Naugatuck Valley Financial Corp., parent of the Naugatuck bank announced in early June that they had reached an agreement to merge, in a deal estimated at $78 million. The deal, expected to close in the first quarter of 2016, has been unanimously approved by both banks’ boards.

NVSL, founded in 1922, is a federal stock savings bank with assets of about $500 million. The bank has nine branches in eight towns — two in Naugatuck, and single branches in Beacon Falls, Cheshire, Derby, Seymour Shelton, Southbury and Waterbury.

Liberty Bank, founded in 1825 and the state’s oldest chartered bank, is a mutual bank with $4 billion in assets and $600 million in capital. The bank has 50 branches in Connecticut, including in Bristol, Cheshire and Southington.