People’s United Financial, Inc., the holding company for People’s United Bank, announced Monday it had reached an agreement to purchase the Riverhead-based Suffolk Bancorp, the holding company for Suffolk County National Bank.
The agreement — a 100-percent stock transaction — is valued at approximately $402 million. The sale will only become complete after a closing that involves both regulatory approval, and also approval by Suffolk Bancorp’s shareholders.
“We are proud to welcome Suffolk County National Bank to People’s United Bank,” said Jack Barnes, President and Chief Executive Officer of People’s United Financial. “With the ninth largest market share in Suffolk County, a solid relationship-banking approach and loyal, long-tenured customers, Suffolk County National Bank’s strong Long Island presence complements our previous acquisitions and organic growth in the New York Metro area.”
“I couldn’t be more pleased to be a part of People’s United,” said Howard C. Bluver, President and Chief Executive Officer of Suffolk Bancorp. “The highly regarded People’s United brand, broad range of products and services and unique positioning across several attractive markets will benefit Suffolk Bancorp shareholders, customers and employees alike. It is also clear to me that our respective community-oriented cultures, devotion to the highest levels of customer service and conservative risk management philosophies align perfectly. We look forward to leveraging the strengths of our combined organizations to create additional value for all of our current and future stakeholders.”
Mr. Bluver will join People’s United Bank as New York Market President and will guide the integration of Suffolk Bancorp while continuing to expand the People’s United franchise in New York, according to a press release issued Monday. “Howard’s deep roots in the region, his understanding of the local economy and his proven ability for growth will continue our momentum in this important market,” said Mr. Barnes.
The companies also announced they would create a regional advisory board, comprised by members of the Suffolk Bancorp Board of Directors, to enhance charitable giving on Long Island. That board will be created when the deal is officially closed, according to the press release. That closing is expected to happen near the end of the year.
Under the terms of the agreement — approved by the boards of both companies — Suffolk Bankcorp shareholders will receive 2.225 shares of People’s United Financial stock for each share of Suffolk Bancorp. The deal is valued at $33.55 per Suffolk Bancorp share based on the closing price of People’s United common stock on June 24.