Buffalo-based bank completes acquisition of People’s United

Officials with Buffalo-based M&T Bank said Saturday that it has completed the acquisition of one of Connecticut's biggest home-grown financial institutions, People's United Bank, which is headquartered in Bridgeport.

The $8.3 billion deal was originally supposed to have closed at the end of last year. But on Feb. 18, the merger partners hadn't received approval of the transaction by the Board of Governors of the Federal Reserve and so they extended the closing date to June 1.

After the acquisition got Federal Reserve approval on March 4, the merger partners announced April 1 as a closing date.

René Jones, chairman and chief executive officer of M&T, said in a statement that the completion of the acquisition is “an important day in M&T's history as we welcome People's United to our family.”

“People's United is a strong strategic and cultural fit and I am truly excited about the positive impact our combined company will have in the communities we serve,” Jones said. “Together, we have the capabilities and scale of a regional bank with the engagement model of a community-based organization to help us better serve new and existing customers, businesses and communities.”

A total of 1,959 People's United employees in Connecticut will be retained after the deal is completed, Jones has said. M&T officials have said People's United's Connecticut workforce will be cut by 28 percent or 747 workers.

People's United's headquarters in Bridgeport will now become M&T's New England region base of operations. With completion of the deal, M&T now employs more than 22,000 people and has a network of over 1,000 branches and 2,200 ATMs that span 12 states from Maine to Virginia and Washington, D.C.

With the closure of the deal, People's United Chairman and Chief Executive Officer John Barnes will receive more than $34 million in cash, equity, and benefits, according to a proxy statement regarding the acquisition. That includes a lump some payment of $18 million within the next 30 days.

People's United stock had been trading on the NASDAQ exchange under the ticker symbol PBCT. But as of the close of business on Friday, the stock is no longer listed on NASDAQ.

People's United customers will continue to be served by their current branches and can also use the bank's web site and mobile app. M&T officials say that will continue until sometime in the third quarter, when a full conversion to M&T's banking systems and brand is completed.

Now that deal has closed, M&T will begin implementing a $43 billion plan to provide loans, investments and other financial support for low-to-moderate income families and neighborhoods, as well as to people and communities of color. The bank's announcement of the plan, which was made in October, 2021, does not specify how much of that financial commitment will find its way to Connecticut consumers.