Bank Of Smithtown Shareholders Approve Merge

Bank of Smithtown shareholders approved a merge with People's United Bank on Friday.

Shareholder cast 96 percent  of their votes in approval of the $60 million merger with People's United Financial at the Sheraton in Hauppauge. Having received federal approval earlier this week, company officials said they expect the merge to be completed by Nov. 30.

Hauppauge-based Bank of Smithtown, with headquarters on Motor Parkway, had 30 branches on Long Island with one on Route 111. It had $2.4 million in assets as of March 31. Bad loans battered the company's finances from March until July, when a merger was struck.

Under the deal, People's United Financial based out of Bridgeport, Conn. agreed to pay $60 million consisting of $30 million in cash and aquire 2.14 million shares of common stock. In July, it was stated Bank of Smithtown shareholders would 0.1430 shares of People's United common stock and $2.00 in cash for each share owned. 

People's United has more than 300 branches. In addition to acquiring Bank of Smithtown, it has agreed to acquire North Andover, Mass.-based RiverBank, a subsidiary of LSB Corp. RiverBank has seven branches, five of which are in greater Boston. The other two are in southern New Hampshire.