PeoplesBank to Acquire First National Bank of Suffield
HOLYOKE — PeoplesBancorp, MHC, the parent company of PeoplesBank, both of Holyoke, and First Suffield Financial Inc., the parent company of the First National Bank of Suffield, both of Suffield, Conn., jointly announced that they have entered into a definitive merger agreement for PeoplesBancorp to acquire First Suffield Financial and PeoplesBank to acquire the First National Bank of Suffield. The parties anticipate the transaction will close in the fourth quarter of 2018 or the first quarter of 2019.
Under the terms of the agreement, shareholders of First Suffield Financial Inc. will receive $12,001.85 in cash per share, representing a total transaction value of approximately $60 million. The merger consideration represents approximately 202% of the First National Bank of Suffield’s tangible book value at March 31, 2018. The transaction is subject to customary closing conditions, including the receipt of state and federal regulatory approvals and approval by the shareholders of First Suffield Financial Inc.
“We see this as a tremendous opportunity,” said Tom Senecal, president, CEO, and chairman of the board of PeoplesBank. “The strategic fit between the organizations is compelling, and the compatibility of our award-winning corporate cultures should make for a seamless transition for our associates and our customers. The addition of an existing, successful branch network in Northern Connecticut to our strong presence in the Pioneer Valley will allow us to offer our products and services to a wider audience, while deepening our commitment to the region as a whole.”
Added Joseph Greco, president and CEO of the First National Bank of Suffield, “since our organization in 1864, the First National Bank of Suffield has successfully served our customers and the local communities. We recognize banking is a rapidly changing industry, and to ensure our customers’ needs are fulfilled, while not losing our commitment to the communities we serve, we are merging with PeoplesBank and know that it is an organization which shares our commitment to service and community banking.”
In 2017, PeoplesBank donated almost $1 million to area nonprofits. Its employees devoted more than 15,000 hours to volunteer work over the past two years, and 48 of the bank’s officers serve on the boards of directors and committees of 115 nonprofit organizations in the area. Upon completion of the transaction, PeoplesBank will expand its community-development efforts in Suffield and the surrounding Connecticut communities.
The combined organization will have approximately $2.8 billion in assets and $1.9 billion in deposits. Upon completion of the transaction, one current member of the board of directors of First Suffield Financial will be appointed to serve as a member of the board of trustees of PeoplesBancorp and the board of directors of PeoplesBank. Following completion of the merger, the current branches of the First National Bank of Suffield will remain open and will conduct business under the trade name First Suffield Bank, a Division of PeoplesBank.