M&T Bank’s acquisition of People’s United to close in early April

M&T Bank and People’s United will close on their merger early next month.

The Buffalo-based M&T Bank announced in February 2021 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 Federal Reserve System Board of Governors on March 4. The transaction previously received approval from both the New York State Department of Financial Services and the Connecticut Department of Banking. No further regulatory approvals are required.

The closing is expected to take place on or about April 1, the companies said in a joint statement.

“Customers will continue to be served through their respective M&T and People’s United branches, websites, mobile apps, financial advisors, and relationship managers until 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.

The Bridgeport, Connecticut-based People’s United 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 initially entered into a one-year merger agreement in February 2021. Last month, still awaiting action by the Federal Reserve, they extended the agreement till June.

Under the terms of the merger agreement, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share they own, according to the press release. That represents $17.70 per share of People’s 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. After the acquisition, People’s United shuttered 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 back the Second Street branch building from 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 it would not renew leases for all 41 of its New York Stop & Shop branches and most of its in-store branches in Connecticut. The Riverhead Stop & Shop branch has since shut down. In August, People’s United said it would continue to operate 27 Stop & Shop branches in Connecticut.

M&T has not announced whether it would close any existing People’s United branch locations.

M&T currently has 11 bank branches in Suffolk County. People’s currently operates 20 branches in Suffolk. Both banks have branches in only a handful of hamlets in Suffolk, including Riverhead.

M&T’s current Riverhead location on Route 58 was originally occupied by Hudson City Savings Bank and became an M&T branch when M&T acquired Hudson City Bancorp in 2015.