People's United Financial, the owner of People’s United Bank, has agreed to acquire BSB Bancorp, the holding company for Belmont Savings Bank, in an all-stock deal worth around $327m.
Belmont Savings Bank, which was established in 1885, is a state-chartered savings bank based in Belmont, Massachusetts, US.
The community-focused bank offers a variety of retail and commercial products and services. Belmont Savings Bank, which has $3bn in assets, has six branches in the Greater Boston area, which includes three Star Market branches located in Waltham, Newton and Cambridge.
People’s United Bank, on the other hand, is a regional bank in the Northeast US. Founded in 1842, the bank provides commercial and retail banking, and also wealth management services via a network of more than 400 retail locations across Connecticut, New York, Massachusetts, New Hampshire, Vermont and Maine.
People’s United Bank EVP, Massachusetts market president Patrick Sullivan said the acquisition of Belmont Savings Bank is complementary to the company’s strong organic growth in Massachusetts, especially in the Greater Boston area.
Sullivan said: “We see significant opportunity for further growth in the region, with an eye toward delivering an expanded, tailored service model.
“The transaction enhances our already robust team of commercial and retail bankers and builds upon the momentum we are generating with the opening of our Seaport branch location early next year, and the recent addition of three new specialized business lines to our Boston-based Commercial team.”
As per the agreement terms, shareholders of BSB Bancorp will be issued 2.0 shares of People’s United Financial stock in return of each share they hold in BSB Bancorp.
The transaction, which is anticipated to be completed by the second quarter of 2019, values each share of BSB Bancorp at $32.42.
BSB Bancorp president & CEO Bob Mahoney said: “People’s United Bank and Belmont share a rich history in the Northeast, and many synergies that will create significant value for both customers and stockholders.
“Our customers will benefit from People’s United’s broader array of products and services, enhanced digital capabilities and expansive branch network. In addition, People’s United’s success with in-store locations will allow for the seamless integration of our Star Market branches.”