The world of banking mergers came close to home on June 27, with the announcement that People’s United Financial, Inc. will acquire the Suffolk County National Bank.
People’s United Financial, Inc., traded on the NASDAQ as PBCT, plans to acquire SCNB, which is traded on the New York Stock Exchange under the ticker SCNB, in a “100 percent stock transaction valued at approximately $402 million,” according to a press release issued June 27 by both parties.
The sale would require the approval of regulators and Suffolk Bancorp’s shareholders.
“I couldn’t be more pleased to be a part of People’s United,” said Howard C. Bluver, President and Chief Executive Officer of Suffolk Bancorp. “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. It is also clear to me that our respective community-oriented cultures, devotion to the highest levels of customer service and conservative risk management philosophies align perfectly.”
Suffolk County National Bank was founded in 1890 by a group of East End business professionals who raised their opening capital by selling 500 shares of stock at $100 per share. It now has 27 locations from Long Island City to Montauk, assets of $2.1 billion and equity capital “in excess of $197 million,” according to SCNB’s website.
People’s United Bank was founded as the Bridgeport Savings Bank in 1842, serving the Bridgeport, Conn. area, and People’s United Financial, Inc became a publicly traded company in 1988. People’s United Financial, Inc currently has $39 billion in assets, according to its website, and retail locations of People’s United Bank can be found in Stop & Shop stores throughout the East End.
“We are proud to welcome Suffolk County National Bank to People’s United Bank,” said Jack Barnes, President and Chief Executive Officer of People’s United Financial, in Monday’s press release. “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.”
Mr. Bluver, of SCNB, will become People’s United Bank’s New York Market President and will guide the integration of Suffolk Bancorp while continuing to expand the People’s United franchise in New York.
People’s United Bank plans to create a regional advisory board, comprised of members of SCNB’s board of directors, to guide the combined company to “enhance efforts to address the needs of individuals, families and businesses on Long Island.”
The banks expect the transaction to close late in the fourth quarter of 2016. Under the terms of the agreement, Suffolk Bancorp shareholders will receive 2.225 shares of People’s United Financial stock for each Suffolk Bancorp share.
The transaction is valued at $33.55 per Suffolk Bancorp share, based on the closing price of People’s United’s common stock on June 24, 2016.