People’s United to Acquire Suffolk County National Bank

The 126-year-old Suffolk County National Bank will soon become People’s United Bank, an unfamiliar name on the East End.

Late last month, People’s United Financial, the holding company for People’s United Bank, announced an agreement to acquire Suffolk Bancorp, Suffolk County National Bank’s holding company. The all-stock deal is being valued at $402 million. 

People’s United does not yet have a presence on the East End. “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,” said Jack Barnes, the president and chief executive officer of People’s United Financial. 

In a statement, Howard Bulver, president and C.E.O. at Suffolk Bancorp, said the deal would “benefit Suffolk Bancorp shareholders, customers, and employees alike.” Mr. Bluver, the president and chief executive officer of Suffolk Bancorp, will join People’s United as the New York market president. 

Based in Riverhead, Suffolk County National Bank has provided commercial banking and financial services since 1890. One of the largest community banks based on Long Island, it has 27 branches. Twenty-five of the branches are in Suffolk County, including two in East Hampton, on Newtown Lane in the village and on Pantigo Road, one in Sag Harbor Village, and one in Montauk. It boasts $2.1 billion in assets and $197 million in equity capital. 

People’s United Bank, founded in 1842 and based in Bridgeport, Conn., is a diversified financial services company with over $39 billion in assets. It offers commercial and retail banking, as well as wealth management services at 400 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire, and Maine. 

People’s United seems to be focused on growing its presence on Long Island. In 2010, People’s United acquired the Bank of Smithtown, and two years later it took over Citizen’s Bank.

Under the terms of the definitive agreement, Suffolk Bancorp shareholders will receive 2.225 shares of People’s United Financial stock for each Suffolk Bancorp share. The transaction is valued at $33.55 per Suffolk Bancorp share, based on the closing price of People’s United’s common stock on June 24, according to a statement from People’s United. 

The deal is expected to be finalized at the end of the year, but is dependent on several factors, including approval Suffolk Bancorp’s shareholders.