People’s United Financial, the holding company for People’s United Bank, has signed an agreement to acquire BSB Bancorp in an all-stock transaction valuing around $327m.
As a part of the transaction, BSB Bancorp-unit Belmont Savings Bank will also merge into People’s United Bank.
People’s United Financial chairman and CEO Jack Barnes said: “The acquisition will deepen and expand our presence in the Greater Boston area, particularly in the suburbs west of the city, which are attractive banking markets.
“As such, our Boston MSA deposit market share rank will increase from #13 to #8 on a pro-forma basis.”
Belmont Savings Bank acquisition: Details
Under the agreement, BSB Bancorp stockholders will receive two shares of People’s United Financial against each BSB Bancorp share.
The transaction will be “approximately $0.03 accretive to earnings per common share based on fully phased-in cost savings, furthermore, with a tangible book value earn-back of 3.1 years and an IRR of over 20%,” People’s United said in a statement.
The Belmont Savings Bank acquisition is expected to be completed by the second quarter of 2019, subject to customary closing conditions including regulatory and BSB Bancorp stockholders approval.
Headquartered in Belmont of Massachusetts, the Belmont Savings Bank caters to individuals, local small business owners and other investors.
Established in 1885, the bank is said to have around $3bn in assets. In addition, it has six branches in the Greater Boston area including three inside Star Markets.
BSB Bancorp president and CEO Bob Mahoney said: “Our customers will benefit from People’s United’s broader array of products and services. Also its enhanced digital capabilities and expansive branch network.
“In addition, People’s United’s success with in-store locations will allow for the seamless integration of our Star Market branches.”