People's United Financial To Buy First Connecticut Bancorp In $544 Mln Deal

(RTTNews) - People's United Financial, Inc. (PBCT), the holding company for People's United Bank, N.A., agreed Tuesday to acquire First Connecticut Bancorp, Inc. (FBNK), of Farmington CT, the holding company for Farmington Bank, in an all stock deal valued at about $544 million.

Under the terms of the deal, which has been approved by both companies' boards of directors, First Connecticut shareholders will receive 1.725 shares of People's United Financial stock for each First Connecticut share held by them.

The deal is valued at $32.33 per First Connecticut share, based on the closing price of People's United's common stock on June 18, 2018.

People's United expects the deal to be $0.05 accretive to earnings per common share based on fully phased-in cost savings, with a tangible book value earn-back of about 3.5 years and an IRR of about 18 percent. The deal is expected to close during the fourth quarter of 2018.

The completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of First Connecticut Bancorp, Inc. shareholders.