New England Community Bancorp has agreed to buy Manchester State Bank for about $88 per share in cash and stock.

The $94 million-asset Manchester will be merged into New England Bank and Trust Co., one of the $337 million-asset holding company's two subsidiaries.

Under the agreement, Manchester shareholders will receive $35.20 per share in cash and 5.493 shares of New England stock, which had been trading at an average of $9.66 for the 20 days before the merger was announced on Dec. 20.

Manchester president and chief executive Nathan G. Agostinelli will become executive vice president, and both he and chairman Andrew Ansaldi Jr. will become New England Bank directors. The transaction, which is still subject to shareholder and regulatory approval, is expected to be completed by midyear.

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