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Commercial banks

Norwich Financial Corp. Acquires The Bank of Mystic Inc. in $70 Million Deal

Strategic Insights

— 1 min read

Norwich Financial Corp., a leading financial institution, has received regulatory approvals to acquire The Bank of Mystic Inc. in a $70 million deal. The acquisition, which is expected to close on April 1, 1995, will merge The Bank of Mystic Inc. with and into The Norwich Savings Society, a wholly-owned subsidiary of Norwich Financial Corp. The deal was overwhelmingly approved by shareholders of The Bank of Mystic Inc. with a vote of 838,887 to 19,109.

Key Takeaways:

  • The acquisition of The Bank of Mystic Inc. will expand Norwich Financial Corp.'s franchise by adding over 2,500 households and businesses to its customer base.
  • The deal includes the transfer of The Bank of Mystic's banking franchise, making The Norwich Savings Society the largest bank in terms of deposit market share and residential mortgage production in New London County.
  • The acquisition agreement terms include approximately $5.50 of Norwich Financial Corp. stock and approximately $2.50 in cash per share of The Bank of Mystic.
  • The Bank of Mystic Inc. had total assets of approximately $70 million as of the merger announcement.
  • The Norwich Savings Society operates 13 banking offices throughout eastern Connecticut.
  • As of Dec. 31, 1994, The Norwich Savings Society had total assets of approximately $593.7 million and total stockholders' equity of approximately $65.5 million.

Statistics:

  • Total assets of The Bank of Mystic Inc.: $70 million
  • Number of households and businesses added to Norwich Financial Corp.'s customer base: 2,500+
  • Deposit market share of The Norwich Savings Society: Largest in New London County
  • Residential mortgage production of The Norwich Savings Society: Largest in New London County
  • Number of banking offices operated by The Norwich Savings Society: 13
  • Date of expected closing: April 1, 1995
  • Approval vote: 838,887 to 19,109

Sources:

  • Norwich Financial Corp. press release, March 20, 1995
  • Business Wire, "Norwich Financial Corp. Acquires The Bank of Mystic Inc."
  • The Norwich Savings Society financial statements, as of Dec. 31, 1994

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