First ULB (FUBP) in Oakland, Calif., has agreed to buy Union Financial in Albuquerque, N.M.

First ULB will pay about $5.9 million in stock for the $62 million-asset Union Financial, it announced Tuesday. The companies expect to complete the deal in the third quarter.

The merger would mark the first step into New Mexico for the $269 million-asset First ULB. Union Financial has one branch in Albuquerque; First ULB has seven branches in California and one branch in Seattle.

"The combination … will provide greater opportunities for both banks and will continue to advance our position in the West," Malcolm Hotchkiss, First ULB's president and chief executive, said in a press release. "This transaction is a natural aggregation of our companies as our client and shareholder bases are very similar."

In 2011, First ULB filed for a $29 million initial public offering, outlining plans to use the capital to fund acquisitions.

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