Buffalo-based M&T Bank Corp. to buy People’s United Bank

February 27, 2021  |  By Lisa Scagliotti 

People's United Bank has a branch in downtown Waterbury in the Waterbury Square shopping center. Photo by Bill Brundage.

In a formal announcement on Feb. 22, Buffalo, N.Y.-based M&T Bank Corp, said it has reached an agreement to purchase another Northeast bank, People’s United Financial, Inc., in an all-stock purchase valued at $7.6 billion. 

Based in Bridgeport, Conn., People’s operates People’s United Bank with 21 branches in Vermont including one in downtown Waterbury that employs five staff members. 

The merger will create a banking franchise with approximately $200 billion in assets and a network of more than 1,100 branches and more than 2,000 ATMs in 12 states from Maine to Virginia and the District of Columbia, according to the company announcement. 

M&T Bank Corporation is a financial holding company based in Buffalo and its principal banking subsidiary, M&T Bank, operates offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia. 

Founded in 1842, People’s United Bank is a subsidiary of People's United Financial, Inc. with more than $60 billion in assets. The Northeast regional bank employs more than 5,500 workers and operates more than 400 branches in Connecticut, Massachusetts, Maine, New Hampshire, New York and Vermont. 

VtDigger reported that Vermont Commissioner of Financial Regulation Mike Pieciak estimated People’s United’s Vermont workforce at more than 1,000 including some 200 at a processing center in Brattleboro. 

As part of the agreement, the People’s United headquarters in Bridgeport will become the New England regional headquarters for M&T. 

People's United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share they own. The result will be that former People's United shareholders will collectively own approximately 28% of the combined company, officials said. 

"In People's United, we have found a partner with an equally long history of serving and supporting customers, businesses and communities," said René Jones, chairman and chief executive officer of M&T, who will lead the combined company in the same role. "Combining our common legacies and our complimentary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people's lives. I am incredibly excited about this opportunity and look forward to welcoming new customers and team members to our M&T family."

Jack Barnes, chairman and chief executive officer of People’s United, said the merger extends the bank’s reach and will provide customers access to a larger banking network and a wider array of services. 

“M&T is a like-minded partner that shares our culture of supporting communities by focusing on building meaningful relationships and providing personalized products, services and local market expertise to customers while building on our legacy of excellence in service," Barnes said. “I am confident our shared community banking philosophies will provide significant long-term value for our shareholders, employees and loyal customers."

Barnes has been CEO and president of People’s United since 2010. A resident of Charlotte, Barnes received his MBA from the University of Vermont and spent 25 years with Chittenden Bank before it was acquired by People’s United in 2008. 

In the announcement of the merger, the banks touted their shared commitment to the local communities they serve. Their statement noted that both companies have been recognized for longstanding support of civic organizations. 

Over the past decade, M&T through its charitable foundation has donated $263.7 million to more than 2,800 nonprofit organizations in eight states and the District of Columbia. It said it has been awarded the highest Community Reinvestment Act rating on every examination since 1982 from the Federal Reserve Bank of New York.
People's United Community Foundation and that bank’s Community Foundation of Eastern Massachusetts has granted $40 million to nonprofits since its inception in 2007. Through the foundations, M&T said it will use $90 million to support charitable activities in the communities currently served by People’s United.

Upon completion of the deal, Barnes along with Senior Executive Vice President Kirk Walters and three other current members of the People’s United board of directors will join M&T’s board of directors.

The merger has been unanimously approved by the boards of directors of each company. The deal is expected to close in the fourth quarter of this year after meeting customary closing conditions, regulatory approvals, and approval from shareholders of each company.

The merger announcement did not offer any details regarding future changes in staffing or locations that might occur once the purchase is completed.