Southwestern Connecticut's Norwalk Savings Society has sold its nearly 10% stake in neighboring Hometown Bancorp., just three weeks after losing its bid for the Darien-based bank.
A filing with the Securities and Exchange Commission said the Norwalk- based thrift had sold 160,000 shares of Hometown for $2.7 million. Norwalk Savings made a profit of about $700,000 on its original investment.
The thrift had begun acquiring its 9.51% stake last June, then announced a month ago that it was interested in a merger. Norwalk Savings also stated that it might simply apply to regulators for permission to buy more than 10% of Hometown's stock.
But in late April, Hometown agreed instead to sell to Mahwah, N.J.-based Hubco Inc. for $17.75 per share in cash. Norwalk decided to take its profit on Hometown now, instead of waiting for $1.7 billion-asset Hubco to conclude the merger.