Banking Legend McGurk On United: 'That's Not My Bank'

VERNON, CT — The financial industry executive who made the slogan "That's my bank" popular throughout north-Central Connecticut said this week that United Bank doesn't feel like his bank anymore in the wake of a takeover announcement by People's United.

"It's a great deal for People's United and a lousy deal for United Bank," William McGurk said in a phone interview with Patch, a short time after the two institutions announced a byout by People's United. "That's not my bank."

Those were strong words coming from the man who led Rockville Bank for 31 years. He retired in 2011 at nearly 70. The "new" United Bank was formed by a merger of Connecticut-based Rockville Bank and Massachusetts-based United Bank in April 0f 2014 in a deal touted as a "merger of equals."

McGurk said equality went by the wayside in the $700-plus million deal declared Monday.

McGurk has never pulled any punches, whether in the role of bank exec, an economic development adviser in Vernon or while wearing Navy whites at veterans events. But he is most recognized for being at the helm of Rockville Bank. He was Rockville Bank and Rockville Bank took on his personality. He seemed to be at every community event and Rockville adopted the advertising slogan, "That's my bank." During his tenure, McGurk would hand a Connecticut Lottery scratch ticket to customers who came up to him to say the slogan out loud.

(Tim Jensen | Patch Staff)

McGurk was also quick to say,"I bought them all," in reference to the more than 200,000 United Bank shares he possesses.

He said that makes him the largest private shareholder.

"And I'll probably vote against the takeover," McGurk said. "I've sent a note to every major shareholder to discuss the dismal stock performance."

People's United Financial, Inc., the holding company for People's United Bank, announced Monday an agreement to acquire United Financial Bancorp, the holding company for United Bank, in a 100 percent stock transaction valued at about $759 million.

The completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of United Financial Bancorp, Inc. shareholders. The new bank would become the fourth-largest in the Hartford-Springfield market.

Said Jack Barnes, chairman and CEO of People's United Financial, "United will solidify our presence in the Central Connecticut market and strengthen our franchise in Western Massachusetts."

Added William H.W. Crawford IV, the president and CEO of United Financial Bancorp, Inc. , "People's United Bank has long-been a premier brand in Connecticut that is committed to building meaningful relationships with its customers and communities," said "We are confident their broad array of products and services, in-market knowledge and the size and strength of their balance sheet will deliver enhanced value to our stakeholders."

United-Rockville's roots can be traced back to 1858. It has been headquartered in Vernon, South Windsor, Glastobury and Hartford. United Bank has $7.3 billion in assets, according to officials.
The Bank has nearly 60 branch locations concentrated in Central Connecticut and Western Massachusetts, offering commercial, small business, wealth management and consumer banking products and services.

According to a news release, People's United expects the transaction to be $0.07 accretive to earnings per common share based on fully phased-in cost savings, with a tangible book value earn-back of approximately 2.3 years and an IRR of approximately 18 percent.

The transaction is expected to close during the fourth quarter of 2019.

"That gives me plenty of time to express my opinions," McGurk said.

Under the terms of the agreement, which has been approved by both companies' boards of directors, United Financial Bancorp, Inc. shareholders will receive 0.875 shares of People's United Financial stock for each United Financial Bancorp, Inc. share. The transaction is valued at $14.74 per United Financial Bancorp, Inc. share, based on the closing price of People's United's common stock on July 12, 2019.

The deal, he said, "stinks."

"I offer plenty of comments at the annual meeting each year and especially last year when United Bank was in the red," McGurk said. "It was 20 pecent at one point and is at about four year-to-date. All other similar institutions showed appreciation."

He then paused and added, "A buyout at $14.74 is a miniscule premium for the typical shareholder. This was about taking care of the big boys."

United stock was sitting at $14.18 per share midday Thursday on the Nasdaq market.

McGurk said less-than-stellar performances on portfolio items like various time shares and yacht loans have something to do with the performance.

"The execs are trying to get their earnings back," he said. "Barnes stumbled into this because Crawford was in a weak position because of investments." He also said United execs were unhappy with a blocked move by shareholders to incorporate in Delaware for its flexible and tax-friendly business laws.

In terms of jobs, Barnes said Tuesday, "We will work closely with United Bank's leadership team to thoughtfully evaluate how we can best serve our combined customers. All United Bank branch employees will be offered a position with People's United Bank."

McGurk said he's not buying it in terms of the big picture.

"C'mon ... I was born at night, but not last night," he said. "I can see a tremendous loss of staff. The (People's United) pattern has been to cut people."

A People's United buyout of Farmington Bank last year worth $544 million resulted in 15 offices closing and 95 jobs being eliminated, records show.

McGurk closed the interview on a sour note.

"The will be a big, big, big change, based largely on greed," he said. "I think this buyout has very lucrative change of control conditions and we'll eventually see how much the senior officers are getting."

After being asked the question again about not being his bank anymore, McGurk said, "If you take care of the customer, you will take care of the of the bank. The bank now seems to be saving money for the big boys. That' now the real culture."