WESTFIELD – Westfield Bank customers can expect continued service and additional benefits with the merger of Chicopee Savings Bank.
Westfield Bank President and CEO James Hagan announced the merger of the two local banks earlier this week and said they have created a new holding company, Western New England Bancorp.
The merger is exciting on several levels, said Hagan.
“The is the first in-market merger in 25 years,” Hagan said. “We have picked up eight new branches, and are extending into Hampshire County.”
The only community that will have duplication is West Springfield.
Westfield Bank Senior Vice President Kevin O’Connor said the headquarters will remain at the current location on Elm Street.
Hagan said the idea of a merger was “compelling,”
“We found we were more similar than dissimilar in our views of community involvement and being a community partner in western Massachusetts and northern Connecticut,” Hagan said of Westfield Bank and Chicopee Savings.
The closing is set to occur during the fourth quarter of 2016, subject to approval by the shareholders of both companies, receipt of required regulatory approvals and other customary closing conditions. Until then, O’Connor said it is business as usual at both banks.
“After the merger, there will be less changes for current Westfield Bank customers,” O’Connor said, noting that debit cards and checkbooks will remain the same.
“More of the changes will occur for current Chicopee customers,” he added.
To keep customers and employees of both banks informed, O’Connor said a communications website will be up and running soon.
“We have a plan for regular communication,” O’Connor said.
Chicopee also has a strong mobile and web banking presence and will continue to do so as Westfield Bank.
“We expect the process to go smoothly and are excited about this,” said Hagan.
The merger creates the second largest bank in terms of deposit market share in Hampden County. The combined company will have total assets of $2.1 billion, tangible equity of over $215 million and 21 branch locations serving customers throughout western Massachusetts and northern Connecticut.
Under the terms of the agreement, Chicopee shareholders will be entitled to receive 2.425 shares of Westfield common stock for each share of Chicopee common stock, equal to $20.42 per share, based on the closing price for Westfield common stock on April 4, 2016. The common stock options of Chicopee will be converted into Westfield options with the same relative economic value and expiration date. Upon closing, Westfield shareholders will own approximately 59 percent of stock in the combined company, and Chicopee shareholders will own approximately 41 percent.
The transaction is valued at approximately $110 million in the aggregate, based on the closing price for Westfield common stock on April 4, 2016.
