M&T Bank Corp. is approaching 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 agreements with regional banks.
The companies are discussing a deal with all the shares that could be announced later this week, people said, assuming the talks do not fall apart. Headquartered in Bridgeport, Connecticut, People’s United has a market cap of approximately $ 6.6 billion, while M&T based in Buffalo, NY is over $ 19 billion.
Together, banks would have more than $ 200 billion in assets, with a branch network concentrated in the Northeast and Mid Atlantic regions. The deal would facilitate M&T’s expansion into the Boston market and strengthen its position in New York and Connecticut.
For M&T, a serial acquirer, it would be its first major acquisition since the acquisition of Hudson City Bancorp Inc. in 2015. The deal was delayed for three years after regulators found “significant weaknesses” in combating money laundering and money laundering. M&T consumer. compliance programs.
M&T is among the largest regional lenders in the Northeast, with $ 142.6 billion in assets at the end of 2020. Commercial real estate loans comprise nearly 40% of its portfolio, including some for New York City’s hotel sector. But loan performance at the bank, like that of many of its regional peers, has been better than expected last year.