EXHIBIT 99.1
NEW ENGLAND BANCSHARES, INC.
855 Enfield Street
Enfield, CT 06082
For Immediate Release
CONTACT: David J. O'Connor, President and CEO
New England Bancshares, Inc. and
Enfield Federal Savings and Loan Association
(860) 253-5200
NEW ENGLAND BANCSHARES, INC. TO MERGE BANKING
SUBSIDIARIES BUT RETAIN EXISTING BRANDING STRATEGY
ENFIELD, CT, January 5, 2009 - New England Bancshares, Inc. (NASDAQ GM: NEBS),
announced today that it intends to merge its wholly-owned federal savings bank
subsidiary, Enfield Federal Savings and Loan Association ("Enfield"), with and
into its wholly-owned Connecticut commercial banking subsidiary, Valley Bank
("Valley"), and will rename the combined bank "New England Bank." The company
will retain the name of each bank at their respective branches and operate the
branches as a division of New England Bank.
The subsidiary merger is designed to improve the efficiencies of the company by
eliminating the additional regulatory and administrative costs of maintaining
two separately chartered banking subsidiaries with essentially the same
products, services and operations. The consolidation will allow the company to
reduce its operating expenses while maintaining the financial products and
services offered by both banks. The combined structure will also assist the
combined bank in offering a higher level of customer service.
Both banking subsidiaries are local community banks active in their respective
communities. The combined bank will maintain Valley Bank's commercial bank
charter which will also provide for greater lending flexibility. The merger and
expected efficiencies will better position NEBS over the long term to compete in
its market area.
David O'Connor explained that, "given the focus and operating philosophy of each
bank, the merger of our subsidiaries made a great deal of financial sense. The
merger will allow us to gain efficiencies in a relatively painless manner and is
expected to result in benefits to our customers and stockholders. The merger
will not impact our commitment to the Enfield and Valley communities and the
support we have always provided to such communities. Our locally focused
decision making process will not change and customers will still be provided
superior service from the same staff." The merger of the banking subsidiaries is
subject to regulatory approval and is expected to be completed in the second
quarter of 2009.
Additionally, the Company reported that Robert Messier and James Pryor have
stepped down from the Board of Directors of Valley Bank.
This news release contains forward-looking statements (within the meaning of the
Private Securities Litigation Reform Act of 1995), which involve significant
risks and uncertainties. A variety of factors could cause actual results and
experience to differ materially from the anticipated results or other
expectations expressed in such forward-looking statements.
New England Bancshares does not assume any obligation to update these
forward-looking statements or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to
competition from both financial and non-financial institutions; changes in
interest rates, deposit flows, loan demand and real estate values; changes in
legislation or regulation; changes in accounting principles, policies or
guidelines; the timing and occurrence (or non-occurrence) of transactions and
events that may be subject to circumstances beyond the control of New England
Bancshares; and other economic, competitive, governmental, regulatory and
technological factors affecting New England Bancshares specifically or the
banking industry or economy generally.