M&T-People's Merger To Close In April, Layoff Timetable Uncertain

BRIDGEPORT, CT — With Friday's approval by the Federal Reserve, the $7.6 billion acquisition of People's United Bank by M&T Bank is now in line to close on April 1, according to the official Fed merger document. A timetable for the 747 projected layoffs in Connecticut remains a mystery, however.

David Samberg, an M&T spokesperson, said in a Wednesday email to Patch that more information about when the layoffs will occur will be announced after the merger closes next month.

The 747 jobs represent 28 percent of the People's United work force in Connecticut, and it's the same number reported to state labor officials in July 2021, Samberg said. That still leaves a total of 1,959 People's United jobs to be retained, according to the documents.

The filings in Connecticut indicate that 616 traditional branch staffers positions are safe and 452 employees at Stop & Shop satellite branches will be relocated close by.

The 747 projected layoffs could shrink as post-merger positions become available, according to documents submitted to the state and Samberg Wednesday.

M&T is based in Buffalo, N.Y., and Bridgeport is the home of People's United. M&T is in track to maintain a major corporate presence in Bridgeport, according to federal documents.

People’s United customers will continue using their existing branches and online tools through the third quarter of 2022, according to the merger documents.

The systems between the two banks will eventually be joined.

According to the federal merger documents, M&T boasts $151.9 billion in assets, making it the 36th largest "depository organization" in the U.S. People's United has $63.7 billion in assets, which ranks it 46th.

In October, M&T announced a plan to provide $43 billion in loans, investments and "other financial support" to create "greater economic opportunity" for low-to-moderate income families and neighborhoods, as well as "people and communities of color," a five-year "community growth plan" developed in collaboration with the National Community Reinvestment Coalition in conjunction with its acquisition of People's United.

The program is set to become operational shortly after the closing.

M&T's plan includes $23 billion in loans for home purchases, home equity and small businesses and another $20 billion for community development initiatives and affordable housing.

"At its core, M&T is a bank with a deep commitment to serve our communities and make a difference in people's lives," said Rene Jones, M&T Bank Chairman and CEO. "We are also committed to taking action to help address inequities that have existed for years. This plan is another step in our journey to orient ourselves around what our communities need most."

In a March 1 letter to shareholders, Jones said, "The key to understanding the rationale lies in the ways in which our two firms resemble and complement each other. M&T, like People's United, is fundamentally a bank for communities, whose relationships with businesses and borrowers relies not solely on faceless algorithms but on local knowledge. Our approach to credit underwriting, wealth management, and corporate philanthropy are all built on knowing and assisting the places we serve, from Buffalo to Baltimore, just as People's United employees understand Bridgeport, Boston, and Burlington."

Jones said it's important to acknowledge that both M&T and People's United have successfully served regions that have seen population loss and slower economic growth.

"Ours may not be the markets that garner attention for their high growth and new migrants from other U.S. regions – but, nonetheless, they comprise 22 percent of the U.S. population and an even greater share (25 percent) of GDP," he said.

The bank issued an updated statement Wednesday:

"M&T Bank received final regulatory approval for the acquisition of People’s United Bank and is looking forward to welcoming our new team members and serving customers across the state of Connecticut. In addition, upon closing, we are eager to begin executing on our $43 billion dollar community growth plan to support low-to-moderate income and economically disadvantaged families across the combined M&T and People’s United footprint.

"Overall, we will be retaining over 80 percent of all People’s United employees, including all branch and other customer facing team members. In Connecticut, nearly 2,000 employees will be retained across the state, and we are committed to having at least 1,000 employees based in our regional headquarters in Bridgeport within the first 12 months following systems conversion, which is now expected to take place in the third quarter of 2022. We continue to work diligently to reduce the number of impacted positions in the state, down from the 747 originally announced last summer."

M&T is committed to providing customers with world class service across our footprint – as illustrated by our 35 recent Greenwich Excellence Awards. We remain committed to serving People’s United customers with the same high level of attention, and the highly skilled People’s United team will be critical to our continued success.