United Bank, People's United To Merge In $759 Million Transaction

VERNON, CT — 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 "new" United Bank was formed by a merger of Connecticut-based Rockville Bank and Massachusetts-based United Bank in April 0f 2014.

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.

"We are excited to welcome United Bank to People’s United,” said Jack Barnes, chairman and CEO of People’s United Financial. "With the fourth-largest deposit market share in the combined Hartford and Springfield market, a complementary array of commercial and retail capabilities and a shared legacy of community giving, United will solidify our presence in the Central Connecticut market and strengthen our franchise in Western Massachusetts."

"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 William H.W. Crawford, the president and CEO of United Financial Bancorp, Inc. "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.

Barnes added, "We look forward to welcoming their well-established customer base and delivering to them our enhanced technology and digital capabilities, combined with our network of expert bankers."

According to a news relase, 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.

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.

Keefe, Bruyette & Woods, Inc. served as financial adviser to People's United and Simpson Thacher & Bartlett LLP served as legal counsel to People's United.

Sandler O’Neill & Partners served as financial adviser to United Financial Bancorp, Inc. and Sullivan & Cromwell LLP served as legal counsel to United Financial Bancorp, Inc.