(WGGB) — West Springfield-based United Bank has announced it will merge with Connecticut-based Rockville Bank.
Both companies say in a statement that it will create the largest community bank headquartered in the Hartford-Springfield market, with over 50 branches and $4.8 billion in assets.
The merger is still subject to regulatory approval and approval by shareholders of both holding companies – Rockville Financial, Inc. and United Financial Bancorp Inc.
Shareholders of United Financial Bancorp, Inc. will receive 1.3472 shares of Rockville Financial, Inc. for each share of United.
Once the merger is complete, shareholders of Rockville Financial, Inc. will own about 49 percent of stock in the combined company, while United Financial Bancorp, Inc. shareholders will own approximately 51 percent.
“This transaction creates value for our shareholders, customers and employees,” says Richard Collins, President and CEO of United Financial Bancorp. He adds, “United Bank has a history of growth through mergers of equals dating back to our days as a co-operative bank. It is fitting that today we announce this merger of equals and celebrate the “new” United Bank.”
Bank branches, following the merger, will utilize the United Bank name.
The combined holding company – United Financial Bancorp – will be headquartered in Glastonbury, Conn. and will retain regional offices in West Springfield and Worcester, as well as in Enfield and South Windsor, Conn.
William H. W. Crawford, IV., President and CEO of Rockville Financial, Inc. adds, “United’s name dates back to 1882 and is highly respected in its markets. The United Bank name reflects the same independent minded community banking spirit that the Rockville Bank name has represented in our communities for the last 155 years. Rockville and United both share a long history of financial stability and commitment to the communities they serve, and while the Rockville name may be changing, the service provided to our customers will only improve with the ability to provide product enhancements and technology services Rockville could not efficiently provide on its own.”
The merger is expected to close by the middle of 2014.