People’s United Bank acquisition wins federal approval
The New England Council member, M&T Bank, received approval from the Federal Reserve on Friday for their acquisition of Bridgeport-based People’s United Bank, setting the stage for the $7.6 billion transactions to officially close. In a statement explaining its decision, the Federal Reserve said the partners meet the standards for approval, with both banks being well-capitalized and well-managed. Regulators also said the deal would not harm competition or give the combined business an unfair share of the regional market.
The acquisition, first announced in February 2021, was expected to close by the end of last year, but an apparent delay at the Federal Reserve prompted M&T officials to push back their prospective closing date to Feb. 21. After that deadline was missed, the bank extended the “window” in which the deal might be completed to June 1. Even if a tighter standard is now being applied, however, the Fed gave no indication that it sees the M&T-People’s United deal as problematic. Both M&T, which has its corporate headquarters in Buffalo, and People’s United have already secured approvals from banking regulators in their home states. M&T officials have said their priority after federal approval will be systems conversion and integration work. People’s United’s current central office, in downtown Bridgeport, is expected to serve as a regional headquarters for M&T.
Of the states in which M&T and People’s United both operate, Connecticut, Massachusetts, and Vermont each impose a 30% limit on the total amount of in-state deposits that a single bank can control, officials said. The combined organization would control approximately 16.2% of total deposits in Connecticut, 1.7% in Massachusetts, 3.2% in New York and 24.3% in Vermont, keeping its market share below the regulatory threshold.
The New England Council would like to commend M&T Bank on its approval for the acquisition of People’s United Bank.
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