Connecticut-based Rockville Financial and West Springfield-based United Financial Bancorp announced today they would merge in a deal expected to create the largest community bank headquartered in the Hartford-Springfield market.

The new entity, which will operate under the name United Bank and will be headquartered in Glastonbury, Conn., will have $4.8 billion in assets, more than 50 branches and top five deposit market share in each metropolitan statistical area. The two companies also said in a statement that they expect the merger to save approximately $17.6 million annually in operating expenses.

"This merger is a significant step in our strategy to expand our footprint. Our complementary branch networks provide both greater market density and unique franchise scarcity value," William H. W. Crawford, IV, president and chief executive officer of Rockville Financial, said in a statement. "The combined company will create a top-performing New England community bank that has the scale, product depth and efficiency to compete effectively and deliver strong returns to our shareholders and an expanded product suite to our customers."

"This transaction creates value for our shareholders, customers and employees," Richard B. Collins, United Financial’s chairman, president and chief executive officer, said in the statement. "We are uniting two strong community banks and creating a dominant player in the New England banking market with greater competitive strength, growth potential and profitability."

Crawford will serve as chief executive officer of the bank, and Collins will retire and provide consulting services for one year. A 20-person board of directors, comprised of equal numbers of Rockville and United directors, will govern the new entity. 

According to the terms of the deal, United Financial shareholders will receive 1.3472 shares of Rockville Financial Inc. common stock for each share of United Financial Bancorp Inc. common stock. Upon closing, Rockville Financial Inc. shareholders will own approximately 49 percent of stock in the combined company; United Financial Bancorp Inc. shareholders will own approximately 51 percent.

Additionally, the merger is expected to be approximately 30 percent accretive to the stand-alone 2015 earnings of both entities, excluding the impact of the potential revenue enhancement opportunities.

The merger, which is subject to regulatory and shareholder approvals, is expected to close mid-year 2014.