NBT Bancorp Inc. in Norwich, N.Y., said late Wednesday that it will acquire Hampshire First Bank in Manchester, N.H.
NBT agreed to pay $45 million in cash and common stock. Under the agreement, 65% of Hampshire First common stock would be converted to NBT shares. Hampshire First stockholders would get 0.7019 of an NBT share for each of their shares. NBT would pay $15 a share for the remaining 35% of Hampshire First's common stock.
In connection with the merger, NBT entered into voting and noncompetition agreements with Hampshire First's directors and officers. NBT also entered into a voting agreement with Meridian Interstate Bancorp Inc. Meridian, the holding company for East Boston Savings Bank, assisted in forming Hampshire First and owns about 40% of the seller's outstanding stock.
Martin Dietrich, NBT's president and chief executive, said in a press release that entering New Hampshire fits with his company's recent growth initiatives. In 2009, NBT entered Burlington, Vt., through organic growth. Last month, NBT bought four branches in Berkshire County in Massachusetts.
The $273 million-asset Hampshire First, which was formed five years ago, has five branches in southern New Hampshire. The $5.5 billion-asset NBT has 128 branches in New York, Pennsylvania, Vermont and Massachusetts.
NBT reported net income of $15.2 million in the third quarter.