People’s Mass. bank target posts flat 2Q net

The North Andover, Mass., lender awaiting its $96 million cash takeover by regional giant People’s United Financial Inc. in Bridgeport posted flat earnings for the second quarter.

LSB Corp., parent of RiverBank, said it earned $1.6 million, or 35 cents a share, in the three months ended June 30, about even with the $1.55 million, or 34 cents a share, earned the same period last year.

LSB President and CEO Gerald T. Mulligan said the bank increased its loans 2 percent and core deposits 17 percent in the period.

Meanwhile, the bank’s troubled-asset portfolio remained stable in the quarter.

ADVERTISEMENT

The holding company also declared a dividend of 9 cents a share to be paid on Aug. 19 to stockholders of record as of Aug. 5.

People’s United, with $22 billion in assets, agreed earlier this month to acquire LSB, which has $797 million in assets, along with the parent of Bank of Smithtown in Hauppauge, N.Y.

The Smithtown Bancorp deal is valued at about $60 million, about 50-50 cash and stock.

Smithtown has $2.43 billion in assets, total deposits of $1.87 billion, and 30 branches, 29 of which are on Long Island and one in New York City.

ADVERTISEMENT

Both deals await state and federal regulatory and shareholder approvals.

Learn more about: