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People's United Financial Inc. in Bridgeport, Conn., has completed its purchases of LSB Corp. and Smithtown Bancorp Inc.
December 2 -
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.
July 15
People's United Financial Inc. agreed to takeover over Danvers Bancorp Inc. in a deal valued at $493 million in cash and stock.
Shares in Danvers surged 28% to $21.86, still shy of the $23 per share that holders have the choice to exchange shares for. People's shares were down 3.3% at $13.25.
The acquisition is the latest in what is expected to be a wave of consolidation in the banking sector. Rising costs from new regulations make selling an attractive option for those banks struggling to regain profitability.
In fact, the New England-focused People's United has been on a takeover spree in the last year. It agreed to purchase two other banks last July for a combined $156 million, following February's closing of its $738 million purchase of Financial Federal Corp.
The Danvers acquisition, which is being paid with 55% stock and the remaining with cash, is expected to close late in the second quarter. The company's Chief Executive Kevin T. Bottomley will join People's United at that time. He said he was "confident that this transaction will benefit Danvers Bancorp shareholders, customers and employees."
People's United Chief Executive Jack Barnes said Danvers complements his company's footprint from central Massachusetts through Boston and into New Hampshire.
Danvers holders may elect to get either the $23 for each share or 1.624 shares of People's United stock.
Completion of the deal is subject to customary closing conditions, including regulatory and shareholder approvals.
