United Parcel Service Inc. said Tuesday it agreed to buy First International Bancorp Inc. for about $78 million in stock, using the bank's expertise in handling government-backed loans to broaden the operations of its own financial services unit.

UPS agreed to exchange about 0.160 shares of its Class B common stock for each share of Hartford-based First International Bancorp. Based on 8.3 million First International shares outstanding as of

Sept. 30, UPS would exchange about 1.3 million of its Class B common shares valued at $78 million in the transaction.

First International mainly makes loans to small and midsize manufacturers, distributors and wholesalers, using, U.S. government-backed loan programs through the Small Business Administration, Department of Agriculture and Export-Import Bank.