People's United Bank to acquire 56 Citizens Bank branches in New York

People's United Financial, Inc (Nasdaq: PBCT), the holding company for People's United Bank, announced today a definitive agreement by which People's United Bank will acquire 56 branches from Citizens Financial Group, Inc. and assume$325 millionin deposits associated with these branches. Fifty-two of the branches are situated in Stop & Shop supermarkets and four are traditional branches. All of the branches are located in the state ofNew York, with 29 onLong Island, eight inWestchester Countyand six in the boroughs ofNew York City, all areas of key focus for People's United. People's United, which currently operates 87 Stop & Shop branch locations inConnecticut, will pay Citizens a 1% premium on the assumed deposits.
The all-cash transaction is valued at$3.25 millionand includes all existing Citizens Bank branches inLong IslandandNew York Cityas well as certain locations inNew York state'sWestchester,Rockland,Putnam,Orange,DutchessandUlsterCounties. People's United has agreed that all employees at the acquired Citizens branches will be offered comparable positions at People's United. Completion of the transaction is anticipated late in the second quarter of 2012 and is subject to customary closing conditions, including the receipt of regulatory approvals.
"This acquisition leverages the excellent in-store banking track record of People's United to deepen our presence and introduce the convenience of our in-store banking to customers onLong Islandand inWestchester County," saidJack Barnes, President and Chief Executive Officer of People's United Financial. "It is a unique opportunity to be the exclusive provider of banking services at 139 Stop & Shop stores acrossLong Island, southernNew York stateandConnecticut."
"Our success with in-store banking is based on the connection between a strong, relationship-based, traditional branch network and the unparalleled convenience and full range of products and services that we offer at Stop & Shop locations," Barnes said. "The bank's strong partnership with Stop & Shop allows us to leverage our brand with the approximately 2.7 million shoppers who visitLong Island, southern New York and Connecticut Stop & Shop stores every week.
"People's United currently serves customers at 37 traditional branch locations onLong IslandandWestchester County," he said. "As a result, following the closing of this transaction we expect a lift to traffic in both in-store and traditional branches within these markets."
"The new branches add an additional source of core deposit funding to the bank," Barnes stated. "We see a clear and immediate opportunity to increase the deposits in the acquired branches, providing additional funding for our strong franchise-wide loan growth."
"Stop & Shop is pleased to have the opportunity to extend its relationship with People's United Bank intoNew York state," saidDon Sussman, Stop & Shop's New York Metro Division President. "Jointly, People's United, one of our first in-store partners, and Stop & Shop have identified the synergies of convenience and volume that exist for our customers who may shop and bank in the same trip. We are confident that the seamless transition will not disrupt our customers' shopping experience."
People's United was advised in this transaction by Jefferies & Company, Inc. as financial advisor and Simpson Thacher & Bartlett LLP as legal counsel. Citizens was advised by Keefe, Bruyette & Woods, Inc.
About People's United Financial, Inc.
People's United Bank is a subsidiary of People's United Financial, Inc, based in Connecticut, a diversified financial services company with$28 billionin assets. People's United Bank, founded in 1842, is the largest independent bank headquartered in New England and provides commercial and retail banking, as well as wealth management services through a network of 369 branches inConnecticut,Massachusetts,Vermont,New York,New HampshireandMaine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services.
SOURCE People's United Financial, Inc.BRIDGEPORT, Conn., Feb.28, 2012 /PRNewswire/