M&T-People's United Deal Still Wading Through Regulatory Process

CONNECTICUT, CT — Though M & T Bank's merger with People's United Bank continued to navigate its way through the regulatory process this month, a top M & T executive said his institution "stands ready" to complete the transaction.

Darren J. King, M&T's executive vice president and chief financial officer made the statement on Jan. 20 as part of an earnings report for the bank's full year and quarter ended Dec. 31.

M&T spokesman David Samberg said the bank is still waiting on final regulatory approval and that will determine the actual closing date for the People's United transaction.

According tp the earnings report, M & T's diluted earnings per common share were $3.37 in the fourth quarter of 2021, compared with $3.52 in the year-earlier quarter and $3.69 in the third quarter of 2021.

Net income was $458 million in the recent quarter, $471 million in the fourth quarter of 2020 and $495 million in the third 2021 quarter.

Included in non-interest expenses in the recent quarter were merger-related expenses associated with M&T's proposed acquisition of the People United parent company — People's United Financial, Inc. — of $21 million ($16 million after-tax effect, or 12 cents of diluted earnings per common share), compared with $9 million ($7 million after-tax effect, or $.05 of diluted earnings per common share) in the third quarter of 2021.

There were no merger-related expenses in the fourth quarter of 2020.

Said King, "Despite last year's challenging environment, M&T realized significant increases in both diluted earnings per share and net income. These results reflect our prudent credit underwriting, improved economic conditions and growth in noninterest income. Our capital position remains very strong."

During the year M & T had its Common Equity Tier 1 ratio increase to 11.4 percent from 10.0 percent at the end of 2020.

"Looking forward, we stand ready to complete our acquisition of People's United and to strategically deploy our excess liquidity and capital as we manage through a likely period of rising interest rates and elevated inflation," King said.