Danbury, Litchfield lenders to merge

Danbury-based Union Savings Bank said it will acquire Litchfield-based First Litchfield Financial Corp., in a deal valued at about $35 million.

Under terms of the agreement, each First Litchfield shareholder will receive $15 per share in cash.

First Litchfield Financial Corp. runs The First National Bank of Litchfield, which has $520 million in assets and nine branches in Litchfield and Hartford counties.

Union Savings is a state-chartered mutual, meaning it is owned by depositors, with $2 billion in assets. When the proposed merger is completed, Union Savings  will have approximately $2.5 billion in assets, $1.7 billion in deposits and 28 branches statewide.

Union Saving CEO John Kline said the merger will significantly expand its market share in Litchfield County as well as a greater presence in Hartford County.

"This acquisition will further our vision of becoming the bank of choice in western Connecticut," Kline said.