Willimantic, Conn.-based bank to buy mortgage company

The Savings Institute Bank & Trust Co., which has a strong branch presence across eastern Connecticut, said Tuesday it plans to purchase a Danbury-based mortgage company that has operations across numerous states.

The Willimantic-based savings bank, which is owned by the SI Financial Group, said it hopes to complete its acquisition of the Fairfield Financial Mortgage Group by this year's fourth quarter. Financial terms of the definitive agreement were not disclosed.

The acquisition of the mortgage company would be the second major purchase by the bank's parent company, SI Financial Group, since it became a stockholder-owned company in 2004. The financial services company's first acquisition was its purchase of some of the assets of the Circle Trust Co. of Darien in November 2005.

The mortgage company, established in 1998, has about 100 employees and over the past year originated more than $386 million in loans. It has offices in six states, including New Jersey and New York, and also is a licensed mortgage banker in eight more states, including Rhode Island.

Rheo A. Brouillard, president and chief executive officer of the Savings Institute, said the acquisition is expected to add to the bank's noninterest income stream as well as its earnings.

When the acquisition is completed, the mortgage company will be known as the SI Mortgage Group Inc. and will operate as a wholly owned subsidiary of the Savings Institute.

Charles L. Levesque, the mortgage company's president, will continue to serve in that role, according to bank officials. Levesque said the mortgage company plans to retain its staff and its various branch locations after the acquisition with the Savings Institute is completed in the October-to-December time frame.

Savings bank officials said the proposed acquisition still requires the necessary regulatory approvals. In addition, Brouillard said that since the Savings Institute is a federally chartered savings bank, the mortgage company will be allowed to originate mortgages in all 50 states.

He said that Fairfield Financial would have "significantly greater resources as well as a broader offering of services" to its customers once the acquisition is completed.

The Savings Institute, which was founded in 1842, now has 19 branches in New London, Windham, Tolland and Hartford counties.