People's United Financial is the holding company for People's United Bank (formerly People's Bank), which was founded in 1842. The bank has more than 400 locations, including traditional branches, supermarket branches, commercial banking offices, investment and brokerage offices, and equipment leasing offices, in New England and eastern New York. In addition to retail and commercial banking services, the bank offers trust, wealth management, brokerage, and insurance services. Its lending activities consist mainly of commercial mortgages (more than a third of its loan portfolio), commercial and industrial loans (more than a quarter), equipment financing, residential mortgages, and home equity loans
Other divisions of People's United Financial include People's United Insurance Agency and People's Securities, which provides brokerage and investment services. In 2010 People's United Financial expanded its offerings by acquiring commercial lender Financial Federal Corporation (now People's United Equipment Finance), which provides financing and leasing to small and midsized business nationwide. People's Capital and Leasing, which also operates throughout the US, specializes in the packaging, printing, and health care industries; it added business aircraft financing to its capabilities in 2011.
People's United Financial has undergone significant transformation in recent years. The company demutualized and converted to a stock holding company in 2007, and early the following year acquired multibank holding company Chittenden Corporation. The deal added some 140 branches, doubling People's United Bank's branch network and expanding its reach beyond Connecticut and New York and into the rest of New England.
People's United's growth was reflected in its 2011 results. Revenues were up more than 20%, from some $1.1 billion to nearly $1.36 billion, and net income more than doubled ($85.7 million to nearly $200 million). The company atttributed its improved performance in part to greater loan volume, tighter expense controls, and an increase in fee-based income such as service charges, investment management fees, and insurance and brokerage commissions.
People's United emphasizes cross-selling financial products by developing client relationships, and has increasingly tied employee compensation to this ability. The company is particularly focused on building its small business lending, wealth management, and insurance business. It also continues to open new branches and seeks acquisition targets for further growth.
One of the main goals of People's United is to build its presence in the two largest metropolitan areas in its market, New York City and Boston. Since 2010 the company has acquired three banks in the Boston area. The largest, Danvers Bancorp, added some 30 branches and carried a price tag of approximately $493 million. People's United also acquired LSB Corporation and Butler Bank, the latter in an FDIC-assisted transaction that included a loss-sharing agreement with the regulator covering all acquired loans and foreclosed real estate of the failed bank. Those deals brought in about 10 branches in the Boston area. In 2010 People's United bought Bank of Smithtown, which had about 30 branches, primarily on Long Island in New York.
The company acquired nearly 60 branches, many of which are located within Stop & Shop supermarkets, in the New York metro area from RBS Citizens in 2012. People's United already had more than 80 Stop & Shop branches in Connecticut, so the deal strengthened its relationship with the retailer and expanded its presence in the New York market. – less