People’s United Financial (PBCT), the holding company for People’s United Bank, has signed an agreement to acquire First Connecticut Bancorp in an all stock transaction valued at nearly $544m.

First Connecticut Bancorp is the holding company of or Farmington Bank, which has 28 branches throughout Central Connecticut and Western Massachusetts in the US.

Founded in 1851, Farmington Bank focuses on retail and commercial banking sectors. It is stated to have assets more than $3.1bn.

Under the agreement, First Connecticut Bancorp shareholders will receive 1.725 shares of People’s United Financial stock against each First Connecticut Bancorp share.

The transaction, already approved by the boards of directors of both companies, is subject to multiple closing conditions including regulatory and First Connecticut Bancorp shareholders’ approval. It is expected to close during the fourth quarter of this year.

People’s United Financial CEO Jack Barnes said: “We are excited to welcome Farmington Bank to People’s United. They have a long-standing relationship-based approach to serving their customers and complementary commercial and retail capabilities.

“This, coupled with their experienced team and similar culture, will strengthen our well-established presence in the region.”