Liberty Bank agrees to acquire CT River Community Bank

Middletown-based Liberty Bank said late Friday that it has reached an agreement to acquire Connecticut River Community Bank of Wethersfield.

The deal, which is pending regulatory and shareholder approval, is expected to be completed by the end of the year.

Under the agreement each outstanding share of Connecticut River Community Bank will be exchanged for $10.75 in cash.

 The per share transaction price represents a substantial premium above the 52-week trading range of Connecticut River Community Bank of $5.00 to $7.75 per share. 

“This Merger is a good fit for the customers of both our organizations,” said Chandler J. Howard, president and CEO of Liberty Bank, which has $3.2 billion in assets and nearly 40 branches.  “The Merger will further strengthen Liberty’s franchise in Hartford County, and build upon on the traditions of prudent banking and outstanding customer service which Liberty Bank has maintained for 185 years. 

Connecticut River Community Bank, with $175 million in assets, was established in 2002 and operates offices in Wethersfield, West Hartford and Glastonbury. 

Connecticut River has been under scrutiny from bank regulators for troubled assets in its loan portfolio.

The company was told by regulators in May that it was prohibited from paying shareholder dividends, and that it had to maintain certain levels of capital, to cushion against further losses.