M&T Bank Corp. is closing in on a deal 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 deals between regional banks.
The companies are discussing a stock deal that could be announced as soon as this week, the people said, assuming the talks don’t fail. People’s United, based in Bridgeport, Conn., Has a market value of approximately $ 6.6 billion, while M & T’s based in Buffalo, NY, exceeds $ 19 billion.
Combined, the banks would have more than $ 200 billion in assets, with a branch network concentrated in the Northeast and Mid-Atlantic regions. The agreement 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. That deal was delayed three years after regulators found “significant weaknesses” in the fight against money laundering and the 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 ailing hospitality sector. . But the bank’s credit performance, as well as that of many of its regional peers, has been better than expected over the past year.