Connecticut-based People's United Financial has received approval from the board of governors of the Federal Reserve for its merger with New York-based Suffolk Bancorp.

The deal, valued at about $402m, was announced in June 2016. The deal secured the nod of Suffolk Bancorp shareholders in October 2016 and the approval from the Office of the Comptroller of the Currency (OCC) in February 2017. 

As per the agreed terms announced in June 2016, Suffolk Bancorp shareholders will receive 2.225 shares of People's United Financial stock for each Suffolk Bancorp share.

Suffolk Bancorp president and CEO Howard Bluver will join People's United Bank as New York market president as part of the deal.

Suffolk will merge with and into People’s United, while subsidiaries Suffolk County National Bank will merge with and into People’s United Bank, National Association as part of the deal.