Middletown-based Liberty Bank will acquire Naugatuck Valley Financial Corp. in a $78 million deal expected to close in the fourth quarter.

"The merger of Naugatuck Valley Savings and Loan with Liberty Bank is a strong fit for the customers, communities and the staff of both organizations," Liberty Bank President and CEO Chandler J. Howard said in a statement. "Our organizational philosophies and cultures are very similar, with sharp focus on exceptional customer service, providing quality products and services to meet the ever changing needs of consumers and businesses and our shared commitment of supporting the communities we serve. We are excited to work with the team at Naugatuck Valley Savings and Loan in creating an even stronger community bank franchise."

Under the terms of the deal, Liberty Bank will pay $11 per share in cash to Naugatuck Valley Financial Corp.’s shareholders. The merger is still awaiting approval by both regulators and Naugatuck Valley Financial’s shareholders. The boards of Liberty Bank, Naugatuck Valley Financial Corp. and its subsidiary Naugatuck Valley Savings and Loan, all unanimously approved the deal.

"We are thrilled to align ourselves with Liberty Bank. Our cultural similarities and shared vision and understanding of community banking make this combination very attractive for us. We believe that this transaction is an excellent opportunity for our shareholders, customers, employees and the Naugatuck Valley community at large. We look forward to working with the Liberty Team to continue to bring high quality financial services and to deepen the relationship with our combined customer base," William Calderara, president and CEO of Naugatuck Valley Financial Corp., said.