Connecticut’s People’s United Bank is expanding its presence in the New York Metro area by acquiring Suffolk Bancorp for about $402 million.

Under the terms of the deal, Suffolk shareholders would receive 2.225 shares of People’s United stock for each Suffolk share. Based on Friday’s closing prices, the transaction values Suffolk shares at $33.55 each, or a 43% premium.

In trading Monday, Suffolk shares rose 25.5% to $29.33, while People’s United dropped 8.2% to $13.84.

“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,” Jack Barnes, chief executive of People’s United, said in a news release.

Founded in 1890, Suffolk is headquartered in Riverhead, N.Y. and serves Long Island’s East End, western Suffolk County, and Nassau County as well as New York City. With assets of $2.1 billion and equity capital in excess of $197 million, it is one of the largest community banks based on Long Island.

“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,” Suffolk CEO Howard C. Bluver said.

Bluver will join People’s United as New York market president and guide the integration of Suffolk while continuing to expand the People’s United franchise in New York.

People’s United has more than $39 billion in assets and operates a network of nearly 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire, and Maine.

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