M&T Bank and People’s United will complete their merger early next month.
Buffalo-based M&T Bank announced in February 2021 that it would acquire People’s United in an all-stock transaction valued at approximately $7.6 billion.
M&T received final regulatory approval for the acquisition of People’s United from the Board of Governors of the Federal Reserve System on March 4. The transaction had previously received approval from the New York State Department of Financial Services and the Connecticut Department of Banking. No other regulatory approval is required.
Closing is expected to occur on or about April 1, the companies said in a joint statement.
“Clients will continue to be served through their respective M&T and People’s United branches, websites, mobile apps, financial advisors and relationship managers until the systems conversion is complete, which is expected to occur. in the third quarter of 2022,” the banks said in the statement.
M&T currently operates 700 branches in New York and the mid-Atlantic states, including one on Route 58 across from Lowe’s.
People’s United, based in Bridgeport, Connecticut, currently operates 359 branches in Connecticut, Massachusetts, Vermont, New Hampshire, Maine and New York, including one in Riverhead, located on Second Street at the corner of Roanoke Avenue .
The companies originally entered into a one-year merger deal in February 2021. Last month, still awaiting action from the Federal Reserve, they extended the deal through June.
Under the terms of the merger agreement, People’s United shareholders will receive 0.118 shares of M&T common stock for each People’s United share they own, according to the press release. That’s $17.70 per People common stock.
Following completion of the transaction, former People’s United shareholders will collectively own approximately 28% of the combined company.
People’s United acquired the Riverhead-based Suffolk County National Bank in 2017. Following the acquisition, People’s United closed SCNB’s Ostrander Avenue branch and 12 other Long Island branches. In 2017, People’s also sold its 4.2-acre Second Street site to Peconic Bay Medical Center and leased the Second Street branch building to the hospital.
People’s United had opened an in-store branch at the Riverhead Stop & Shop in 2014. The branch was People’s 143rd supermarket branch. In January 2021, People’s United announced that it would not renew the leases of its 41 New York Stop & Shop locations and most of its in-store locations in Connecticut. The Riverhead Stop & Shop branch has since closed. In August, People’s United said it would continue to operate 27 Stop & Shop locations in Connecticut.
M&T has not announced whether it will close existing People’s United branches.
M&T currently has 11 bank branches in Suffolk County. People’s currently operates 20 branches in Suffolk. Both banks have branches in just a handful of Suffolk hamlets, including Riverhead.
M&T’s current Riverhead location on Route 58 was originally occupied by Hudson City Savings Bank and became a branch of M&T when M&T acquired Hudson City Bancorp in 2015.
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