M&T Bank Corp. approaches an agreement to buy People’s United Financial Inc. for more than $ 7 billion, according to people familiar with the matter, in the latest in a series of links between regional banks.
Companies are discussing a securities deal that could be announced as early as this week, people said, assuming the talks don’t fall apart. Headquartered in Bridgeport, Connecticut, People’s United has a market value of approximately $ 6.6 billion, while the M&T in Buffalo, New York, exceeds $ 19 billion.
Combined, the banks would have more than $ 200 billion in assets, with a branch network concentrated in the Northeast and Mid-Atlantic regions. The agreement would facilitate M & T’s expansion into the Boston market and strengthen its position in New York and Connecticut.
For M&T, a serial buyer, it would be its first major acquisition since its acquisition of Hudson City Bancorp Inc. in 2015. This agreement was delayed three years after regulators found “significant weaknesses” in the fight against money laundering and M&T consumption. compliance programs.
M&T is among the Northeast’s leading regional lenders, with assets of $ 142.6 billion at the end of 2020. Commercial real estate lending accounts for nearly 40% of its portfolio, including some for the battered hospitality sector. New York City. But the performance of loans to the bank, as well as that of many of its regional peers, has been better than expected over the past year.