Massachusetts-based Chicopee Savings Bank has agreed to merge with and into local rival Westfield Bank in a deal worth about $110m.
The integration of the two lenders will create the largest locally managed bank in Hampden County, Massachusetts and the county’s second largest bank in terms of deposit market share.
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The merged entity will manage total assets of $2.1bn, tangible equity of over $215m and will operate with 21 branches across western Massachusetts and northern Connecticut.
Shareholders of Westfield will have about 59% stock ownership in the combined firm, while Chicopee shareholders will own nearly 41%.
The deal has already received the nod from the boards of directors of both companies. It is expected to close during the fourth quarter of 2016, subject to shareholder and regulatory approvals.
Westfield president and CEO James Hagan stated: "Although headquartered in the same county, we currently serve two distinct customer bases, which, when combined, will complement each other tremendously. A merger of our two banks will be extremely favorable for the shareholders, customers, employees and communities of both institutions."
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By GlobalDataHagan will assume the role of president and CEO of the merged company.
