People’s United Financial to Acquire First Connecticut Bancorp
BRIDGEPORT, Conn. — People’s United Financial, Inc., the holding company for People’s United Bank N.A., announced an agreement to acquire First Connecticut Bancorp Inc., the holding company for Farmington Bank, in a 100% stock transaction valued at approximately $544 million. Completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of First Connecticut Bancorp shareholders.
“We are excited to welcome Farmington Bank to People’s United,” said Jack Barnes, CEO of 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.”
Established in 1851, Farmington Bank is a community bank with 28 branches throughout Central Conn. and Western Mass. With $3.1 billion in assets, the bank has built a strong balance sheet by focusing on commercial and retail banking.
“People’s United Bank is a premier brand with a rich, 176-year history in the state of Connecticut,” said John Patrick, chairman, president, and CEO of Farmington Bank. “Our customers will benefit from their broader array of products, enhanced access to technology and digital capabilities, as well as the bank’s seven-day-a-week Stop & Shop branch locations.”
The transaction is expected to close during the fourth quarter of 2018. Under the terms of the agreement, which has been approved by both companies’ boards of directors, First Connecticut Bancorp shareholders will receive 1.725 shares of People’s United Financial stock for each First Connecticut Bancorp share. The transaction is valued at $32.33 per First Connecticut Bancorp share.