Bridgeport, Conn.-based People's United Bank announced today it has acquired 56 Citizens Bank branches in New York state, and will assume $325 million in deposits associated with these branches.
Fifty-two of the branches are situated in Stop & Shop supermarkets and four are traditional branches. All of the branches are located in the state of New York, with 29 on Long Island, eight in Westchester County and six in the boroughs of New York City. People's United, which currently operates 87 Stop & Shop branch locations in Connecticut, will pay Citizens a 1 percent premium on the assumed deposits.
According to Citizens, acquiring these branches is part of a "key focus" of the bank to penetrate the New York market.
"This acquisition leverages the excellent in-store banking track record of People's United to deepen our presence and introduce the convenience of our in-store banking to customers on Long Island and in Westchester County," said Jack Barnes, President and CEO of People's United Financial.
The all-cash transaction is valued at $3.25 million. People's United has agreed that all employees at the acquired Citizens branches will be offered comparable positions at People's United. Completion of the transaction is anticipated late in the second quarter of 2012 and is subject to customary closing conditions, including the receipt of regulatory approvals.