New England Bancshares Inc. in Enfield, Conn., said it had agreed to buy First Valley Bancorp Inc. in Bristol, Conn., for $25.9 million in stock and cash.
First Valley is the parent company of the $185 million-asset Valley Bank, which has two branches and plans to open two more by yearend.
New England Bancshares said late Tuesday that it intends to operate Valley Bank as a separately chartered commercial bank subsidiary and give it $12 million in capital to help it grow. Valley Bank would retain its name, board of directors, management team, employees, and branches.
David J. O'Connor, the president and chief executive officer of New England Bancshares, said the deal would give his company a presence in a desirable market and add commercial banking expertise that would benefit its Enfield Federal Savings and Loan Association subsidiary. Enfield has $272 million of assets and eight branches. The deal is expected to close in the second quarter.
