People's United Financial in Bridgeport, Conn., is on a shopping spree up and down the Northeast.

The $22 billion-asset company announced late Thursday that it reached agreements to buy Smithtown Bancorp in Hauppauge, N.Y. and LSB Corp. in North Andover, Mass. Both are contiguous to People's United's existing market.

People's United will pay $60 million for the $2.43 billion Smithtown in a cash and stock deal.

That company has seen a dramatic drop in credit quality over the last year, seeing noncurrent loans at its Bank of Smithtown unit go from 0.46% at the end of the first quarter 2009 to 9.97% at the end of the first quarter 2010.

The bank was adequately capitalized at the end of the first quarter and last month the company entered into a written agreement with the Federal Reserve.

To the north, People's United will pay $96 million in cash for the $907 million-asset LSB Corp. in North Andover, Mass.

LSB appears to be a healthy company. It was profitable in the first quarter and nonperforming loans totaled $4.8 million, or 0.88% of total loans at the end of that quarter.

Both deals are expected to close in the fourth quarter.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.