Consolidation has been a trend in Connecticut’s banking industry for years, but deals made by Bridgeport-based People’s United Bank since 2018 are playing a major role in reshaping Greater Hartford’s competitive landscape, especially as it prepares to be taken over by New York-based M&T Bank.
For one, People’s United’s deals — which have included the acquisitions of Farmington Bank and United Bank — have paved the way for out-of-state lenders to increasingly eye and grow in the market.
For example, NBT’s pending Glastonbury branch and PeoplesBank’s proposed West Hartford branch were both previously United Bank branches. That’s no surprise, since People’s United closed 18 branches after it bought United Bank, leaving ready-made nests for numerous other lenders who have since stepped in to buy or lease them.
NBT entered the Vermont banking market in 2009, sensing opportunity after People’s United acquired Burlington-based Chittenden Corp., a deal that brought Chittenden exec Jack Barnes to People’s United, where he was named CEO soon after.
For PeoplesBank, the M&T deal also has implications for what Senecal says is a long-running brand confusion for some customers.
After acquiring two western Massachusetts lenders in 2008, People’s United Bank was sued by PeoplesBank, which was seeking to block the Bridgeport-based lender from using its name in that market, claiming it would cause customer confusion and damage its brand.
The effort was ultimately unsuccessful, and Senecal says People’s United customers will still occasionally show up at one of his branches thinking they are the same bank.
“I’m not sure the confusion ever fully went away,” he said.
There’s no ill will, he insists, but he’s looking forward to the People’s United brand potentially going away after the bank is officially acquired by M&T later this year.
