The holding company for United Bank, which is based in West Springfield and has branches in Central Massachusetts, announced it will acquire the holding company of Connecticut-based New England Bank in a transaction valued at $91 million.
United has more than $1.6 billion in assets, while New England is worth $726.5 million. The merger will expand United's footprint into Hartford, Tolland, New Haven and Litchfield counties in Connecticut, where New England has 15 branches.
United Bank acquired Worcester-based Commonwealth National Bank in 2009. It has six branches in Central Massachusetts, in Worcester, Shrewsbury, Whitinsville and West Boylston, as well as an ATM at the Hanover Theatre in Worcester.
Under terms of the merger agreement, holders of the Connecticut holding company, New England Bancshares, will have the right to convert each share in the company into 0.9575 of a share in United's holding company, United Financial Bancorp.
Both banks' boards of directors have approved the deal, which is expected to close in the fourth quarter of this year, subject to votes by the banks' stockholders as well as regulatory approvals.