Bridgeport-based People’s United Bank has acquired all of the deposits and certain assets of failed Massachusetts-based bank.
People’s will receive about $237 million of assets and assume approximately $243 million in liabilities of Lowell, Massachusetts-based Butler Bank, which was taken over by federal regulators earlier today.
 As part of the transaction, People’s has entered into a $206.1 million loss sharing agreement with the Federal Deposit Insurance Corp., covering all acquired loans and foreclosed real estate.
People’s Bank officials said the deal will expand the company’s New England footprint to the greater Boston market and help it deploy excess liquidity.
As of Dec. 31, Butler Bank had $268 million in assets, $233.2 million in deposits, and four branches.
“The acquisition of Butler Bank and its Marlborough Co-Operative division represents an excellent opportunity for People’s United Bank to expand into attractive, high-density markets in the greater Boston area, and we are very excited to partner with our new employees to bring our award-winning brand of service to customers in the area,” said Philip R. Sherringham, president and CEO of People’s United Bank.
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