BRIDGEPORT: People's United Financial, Inc. [NASDAQ:PBCT], the holding company for People's United Bank, N.A., is acquiring Farmington based First Connecticut Bancorp, Inc. [NASDAQ:FBNK], the holding company for Farmington Bank.
Shareholders will receive stock in PBCT and the companies are valuing the transaction at approximately $544 million.
People's is the largest bank headquartered in Connecticut and has $44 billion in assets and 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.
Farmington Bank established in 1851 as a mutual bank was converted to a public company in 2011. The bank has 26 locations in Connecticut and 2 in Western Massachusetts and $3.1 billion in assets.
Considering the size of People’s United in Connecticut its penetration in Farmington Bank's core Central Connecticut market is quite limited, with only six locations, People'a has three existing locations in Western Massachusetts.
While there is some overlap of branches no information about branch closings were announced
Under the terms of the agreement, shareholders will receive 1.725 shares of People’s United Financial stock for each First Connecticut Bancorp, Inc. share. The transaction is valued by the companies at $32.33 per First Connecticut Bancorp, Inc. share, based on the closing price of People's United's common stock on June 18, 2018. First Connecticut's stock was trading at $26.05 per share on June 1, 2018.
“We are excited to welcome Farmington Bank to People’s United,” said Jack Barnes, CEO, People’s United Financial. “They have a long-standing relationship-based approach to serving their customers and complementary commercial and retail capabilities. This, coupled with their experienced team and similar culture, will strengthen our well-established presence in the region.”