Sunday, February 13, 2011

United Financial to pay $25M for CNB - Boston Business Journal:

ishinlyuboqemija.blogspot.com
Inc. lost the bidding war for CNB which operates six branches and hasabouty $300 million in assets. But Berkshire will receiv e a termination feeof $970,00o as part of a prior merger agreement with CNB. Durinh a vetting of CNB’s loan portfolio, Berkshire estimated it wouldx mark down theWorceste bank’s loans by $14 million, which includeas $3 million accounted for in CNB’d loan loss reserve. United Financial (Nasdaq: UBNK) said it is payintg 1.25 times CNB’s book value to clinch the Once the mergeris completed, Unitec Financial said, it will have about $1.5 billion in assets, aboutt $1 billion in deposits and tangible common equityg of $220 million.
Assuming a 15 perceng reductionin CNB’s operating expenses, Unitede Financial expects the acquisition to boost 2010 operating earnings per sharse by 9 percent. United Financial of Springfield, Massachusetts said it will takea pre-ta x restructuring charge of aboug $4 million, including the cost of paying Berkshires its merger termination fee.

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