PBCT/MTB: M&T Bank, People’s United to Form Diversified Banking Franchise in $7.6B All-Stock Transaction
Mon 02/22/2021 11:57 AM
Relevant Documents:
Announcement
Transaction Presentation
Takeaways
M&T Bank Corp. and People’s United Financial Inc. announced today, Monday, Feb. 22, that they have entered into a definitive agreement under which M&T will acquire People’s United in an all-stock transaction with an implied total transaction value of approximately $7.6 billion. The companies’ combination is intended to create a diversified, community-focused banking franchise with a network of more than 1,100 branches primarily in the Northeast. Continue reading as our M&A team analyzes the announcement from M&T Bank to acquire People’s United and Request a Trial for access to the linked documents as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.
Under the terms of the merger agreement, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share held. Upon consummation of the transaction, People’s United shareholders will collectively own approximately 28% of the combined company.
People’s United is a bank holding company and the holding company for People’s United Bank NA, a national banking association headquartered in Bridgeport, Conn. Through its bank and its subsidiaries, People’s United provides commercial and retail banking and wealth management services to individual, corporate and municipal customers. The company’s traditional banking activities are conducted primarily within New England and southeastern New York and include extending secured and unsecured commercial and consumer loans, originating mortgage loans and accepting consumer, commercial and municipal deposits.
People’s United conducts its operations through a network of 450 branches in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine. Its operating segments have been aggregated into two reportable segments: commercial banking and retail banking. People’s United’s commercial banking operations consist principally of commercial real estate lending, commercial and industrial lending and commercial deposit gathering activities, while its retail banking comprises consumer lending, including residential mortgage and home equity lending, and consumer deposit gathering activities.
In its latest 10-K, People’s United reported $520.4 million in net income in 2019. People’s United states that it competes for deposits, loans and financial services with commercial banks, savings institutions, commercial and consumer finance companies, mortgage banking companies, insurance companies, credit unions and a variety of other institutional lenders and securities firms.
M&T is a bank holding company headquartered in Buffalo, N.Y. M&T has two wholly owned bank subsidiaries, Manufacturers and Traders Trust Co., or M&T Bank, and Wilmington Trust NA. The two banks collectively offer a wide range of retail and commercial banking, trust and wealth management, and investment services to their customers.
M&T Bank is a New York-chartered commercial bank with 731 domestic banking offices in Connecticut, Delaware, the District of Columbia, Maryland, New Jersey, New York, Pennsylvania, Virginia and West Virginia; a full-service commercial banking office in Ontario, Canada; and an office in the Cayman Islands. M&T Bank and its subsidiaries offer a broad range of financial services to a diverse base of consumers, businesses, professional clients, governmental entities and financial institutions. M&T also provides trust and other fiduciary services through its wholly owned subsidiary, Wilmington Trust Co.
In its latest 10-K, M&T reported $1.929 billion in net income in 2019. M&T states that it competes with other banking institutions and thrifts and with firms in a number of other industries, such as credit unions, personal loan companies, sales finance companies, leasing companies, securities brokerage firms, mutual fund companies, hedge funds, wealth and investment advisory firms, insurance companies and other financial services-related entities.
M&T and People’s United branch banking footprints overlap in the Connecticut and New York markets, as depicted in the transaction presentation.
Per the FDIC’s latest market share reports, however, the companies’ banking overlaps do not appear to present any significant concentration concerns. With respect to the Connecticut banking market, as of June 30, 2020, People’s United ranked second in the state with a 16.87% market share. M&T ranked 40th in the state, through its Manufacturers and Traders Trust Co. subsidiary, with a 0.18% market share.
In New York state, as of June 30, M&T ranked eighth in the state with a 2.89% market share, while People’s United ranked 28th with a market share of 0.28%.
Similarly, at the local level, as of June 30, M&T ranked first in market share in Erie County, New York, where Buffalo is, and Monroe County, New York, where Rochester is, but People’s United has no banking presence in those markets.
In the Fairfield, Conn., banking market, People’s United ranked first as of June 30 with a 26.43% market share, while M&T ranked 23rd with a market share of 0.52%. M&T also did not rank among the top 15 banking institutions in terms of market share in the Hartford or New Haven, Conn., banking markets as of June 30, where People’s United ranked second and third, respectively.
The merger is subject to receipt of regulatory approvals and approval by the shareholders of both companies. Banking regulatory approvals from the Federal Reserve, the Office of the Comptroller of the Currency and the N.Y. state Department of Financial Services, among others, will likely be required.
The companies say they expect to close the transaction in the fourth quarter of 2021.
Advisors
Keefe, Bruyette & Woods is serving as lead financial advisor to People’s United. JPMorgan also served as financial advisor. Simpson Thacher & Bartlett is its legal advisor.
Lazard is serving as financial advisor to M&T, and Sullivan & Cromwell is its legal advisor.
Announcement
Transaction Presentation
Takeaways
- M&T Bank Corp. and People’s United Financial Inc. announced today, Monday, Feb. 22, that they have entered into a definitive agreement under which M&T will acquire People’s United in an all-stock transaction with an implied total transaction value of approximately $7.6 billion. The companies’ combination is intended to create a diversified, community-focused banking franchise with a network of more than 1,100 branches primarily in the Northeast.
- Under the terms of the merger agreement, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share held.
- The merger is subject to receipt of regulatory approvals and approval by the shareholders of both companies. Banking regulatory approvals from the Federal Reserve, the Office of the Comptroller of the Currency and the New York State Department of Financial Services, among others, will likely be required.
- The companies say they expect to close the transaction in the fourth quarter of 2021.
M&T Bank Corp. and People’s United Financial Inc. announced today, Monday, Feb. 22, that they have entered into a definitive agreement under which M&T will acquire People’s United in an all-stock transaction with an implied total transaction value of approximately $7.6 billion. The companies’ combination is intended to create a diversified, community-focused banking franchise with a network of more than 1,100 branches primarily in the Northeast. Continue reading as our M&A team analyzes the announcement from M&T Bank to acquire People’s United and Request a Trial for access to the linked documents as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.
Under the terms of the merger agreement, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share held. Upon consummation of the transaction, People’s United shareholders will collectively own approximately 28% of the combined company.
People’s United is a bank holding company and the holding company for People’s United Bank NA, a national banking association headquartered in Bridgeport, Conn. Through its bank and its subsidiaries, People’s United provides commercial and retail banking and wealth management services to individual, corporate and municipal customers. The company’s traditional banking activities are conducted primarily within New England and southeastern New York and include extending secured and unsecured commercial and consumer loans, originating mortgage loans and accepting consumer, commercial and municipal deposits.
People’s United conducts its operations through a network of 450 branches in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine. Its operating segments have been aggregated into two reportable segments: commercial banking and retail banking. People’s United’s commercial banking operations consist principally of commercial real estate lending, commercial and industrial lending and commercial deposit gathering activities, while its retail banking comprises consumer lending, including residential mortgage and home equity lending, and consumer deposit gathering activities.
In its latest 10-K, People’s United reported $520.4 million in net income in 2019. People’s United states that it competes for deposits, loans and financial services with commercial banks, savings institutions, commercial and consumer finance companies, mortgage banking companies, insurance companies, credit unions and a variety of other institutional lenders and securities firms.
M&T is a bank holding company headquartered in Buffalo, N.Y. M&T has two wholly owned bank subsidiaries, Manufacturers and Traders Trust Co., or M&T Bank, and Wilmington Trust NA. The two banks collectively offer a wide range of retail and commercial banking, trust and wealth management, and investment services to their customers.
M&T Bank is a New York-chartered commercial bank with 731 domestic banking offices in Connecticut, Delaware, the District of Columbia, Maryland, New Jersey, New York, Pennsylvania, Virginia and West Virginia; a full-service commercial banking office in Ontario, Canada; and an office in the Cayman Islands. M&T Bank and its subsidiaries offer a broad range of financial services to a diverse base of consumers, businesses, professional clients, governmental entities and financial institutions. M&T also provides trust and other fiduciary services through its wholly owned subsidiary, Wilmington Trust Co.
In its latest 10-K, M&T reported $1.929 billion in net income in 2019. M&T states that it competes with other banking institutions and thrifts and with firms in a number of other industries, such as credit unions, personal loan companies, sales finance companies, leasing companies, securities brokerage firms, mutual fund companies, hedge funds, wealth and investment advisory firms, insurance companies and other financial services-related entities.
M&T and People’s United branch banking footprints overlap in the Connecticut and New York markets, as depicted in the transaction presentation.
(Source: Transaction presentation)
Per the FDIC’s latest market share reports, however, the companies’ banking overlaps do not appear to present any significant concentration concerns. With respect to the Connecticut banking market, as of June 30, 2020, People’s United ranked second in the state with a 16.87% market share. M&T ranked 40th in the state, through its Manufacturers and Traders Trust Co. subsidiary, with a 0.18% market share.
In New York state, as of June 30, M&T ranked eighth in the state with a 2.89% market share, while People’s United ranked 28th with a market share of 0.28%.
Similarly, at the local level, as of June 30, M&T ranked first in market share in Erie County, New York, where Buffalo is, and Monroe County, New York, where Rochester is, but People’s United has no banking presence in those markets.
In the Fairfield, Conn., banking market, People’s United ranked first as of June 30 with a 26.43% market share, while M&T ranked 23rd with a market share of 0.52%. M&T also did not rank among the top 15 banking institutions in terms of market share in the Hartford or New Haven, Conn., banking markets as of June 30, where People’s United ranked second and third, respectively.
The merger is subject to receipt of regulatory approvals and approval by the shareholders of both companies. Banking regulatory approvals from the Federal Reserve, the Office of the Comptroller of the Currency and the N.Y. state Department of Financial Services, among others, will likely be required.
The companies say they expect to close the transaction in the fourth quarter of 2021.
Advisors
Keefe, Bruyette & Woods is serving as lead financial advisor to People’s United. JPMorgan also served as financial advisor. Simpson Thacher & Bartlett is its legal advisor.
Lazard is serving as financial advisor to M&T, and Sullivan & Cromwell is its legal advisor.
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