Suffolk County National Bank is being acquired by People’s United Bank.
People’s United Financial this morning announced a definitive agreement to purchase Suffolk Bancorp in a 100 percent stock transaction valued at approximately $402 million.
The transaction is expected to close late in the fourth quarter of 2016.
Under the terms of the definitive agreement, which has been approved by both companies’ boards of directors, Suffolk Bancorp shareholders will receive 2.225 shares of People’s United Financial stock for each Suffolk Bancorp share.
“With the ninth largest market share in Suffolk County, a solid relationship-banking approach and loyal, long-tenured customers, Suffolk County National Bank’s strong Long Island presence complements our previous acquisitions and organic growth in the New York Metro area,” People’s United Financial said in the announcement made during a conference call with investors at 9 a.m.
SCNB president and CEO Howard Bluver will join People’s as New York market president.
People’s United Financial, Inc., headquartered in Bridgeport, Connecticut, is a diversified financial services company with over $39 billion in assets. People’s United Bank, founded in 1842, is a regional bank in the Northeast offering commercial and retail banking and wealth management services through a network of nearly 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.
SCNB, founded in 1890 and headquartered in Riverhead, is a community bank with 28 branches on Long Island. It has total assets of $2.3 billion.
Suffolk is “a very, very attractive franchise in a very strong market that has a considerable amount of overlap with us,” said People’s United president and CEO Jack Barnes.
Sixty-four percent of Suffolk’s branches are within two miles of a People’s United branch, according to a slide presented during the call.
Growth in the New York area remains one of People’s highest priorities, Barnes said. The bank acquired the Bank of Smithtown in 2010 and Citizen’s Bank in 2012 and the acquisition of SCNB enhances density and customer convenience on Long Island and gives People’s greater access on the eastern end of Long Island, “where we don’t have a presence and where Suffolk has operated for 125 years,” Barnes said.
“I couldn’t be more pleased to be a part of People’s United,” Bluver said in a press release issued by People’s United this morning.
“The highly regarded People’s United brand, broad range of products and services and unique positioning across several attractive markets will benefit Suffolk Bancorp shareholders, customers and employees alike,” Bluver said.