Belmont Savings gets snapped up by big Connecticut bank
Another small Boston-area bank is getting gobbled up.
People’s United Financial Inc., the holding company for People’s United Bank of Bridgeport, Conn., said Tuesday it agreed to buy BSB Bancorp Inc., itself the parent of Belmont Savings Bank, in an all-stock deal valued at about $327 million.
For People’s United, the deal will add six Belmont Savings branches — and $3 billion in assets — in Belmont, Cambridge, Newton, Waltham, and Watertown, which are the kind of affluent communities that banks want to serve.
There aren’t many options for banks looking to expand in the Boston area through acquisitions. In September, Rockland Trust’s parent company agreed to buy Blue Hills Bank for $730 million, a deal that will make it the largest independent bank in Massachusetts based on in-state assets. (Berkshire Bank is bigger when out-of-state assets are included.)
Banking in Greater Boston is dominated by big banks such as Bank of America, Citizens, and Santander. Chase Bank has made an aggressive move into the local market with plans to open 50 branches here.
People’s United hopes to complete the Belmont Savings deal by the middle of next year, following regulatory approvals. BSB stockholders will receive two shares of People’s United stock for each of their BSB shares. That values BSB at $32.42 a share — a premium of almost 21 percent — based on the closing price of People’s United on Nov. 26.
People’s United has $47 billion in assets and more than 400 retail locations in New York and New England, including 47 in Massachusetts.