Connecticut-based NewAlliance Bancshares, parent to NewAlliance Bank, has been acquired by New York-based Niagara Financial Group.

As part of the deal, which is valued at $1.5 billion, NewAlliance’s 88 branches, including one recently opened in downtown Hartford, are expected to be converted and rebranded as First Niagara locations.

"We are very proud that NewAlliance’s exceptional balance sheet, credit quality and overall franchise strength enabled us to put a deal together that allows our shareholders to participate in a tremendous long-term growth opportunity, while also providing them immediate value," NewAlliance Chairman, President
and CEO Peyton Patterson said. "Both NewAlliance and First Niagara have
been recognized as national standouts when so many other banks are struggling. In combination, we will be creating a super-regional powerhouse and accelerating our potential in ways that we couldn’t individually."

Buffalo-based First Niagara, serves communities across Upstate New York and Pennsylvania.

New Haven-based NewAlliance, which employs 1,200 people, has $8.7 billion in assets, including $4.9 billion in loans, as well as $5.1 billion in deposits. Its 88 branches serve eight counties from Greenwich, Conn., to Springfield.