People's United Buys Suffolk Bancorp to Expand in New York
People’s United Financial, Inc. PBCT recently announced the completion of Suffolk Bancorp acquisition. The company entered into this deal with a view to expand its footprint in New York.
People’s United retained all the employees of the acquired company. Further, the former President and CEO of Suffolk Bancorp, Howard C. Bluver has been designated as New York Market President.
Following the deal closure, Suffolk Bancorp closed trading at $40.41 on Mar 31, 2017.
Background
Per the terms of the deal, for each share held in Suffolk Bancorp, the shareholders will receive 2.225 shares of People's United. Based on the closing price of People's United's common stock on Jun 24, 2016, each Suffolk Bancorp share is valued at $33.55.
Our Viewpoint
The company’s progress on the acquisition front reflects its strong capital and liquidity position. This deal shall extended People’s United’s presence in New York State and is expected to be accretive to the company’s earnings, going forward.
People’s United returned 13.6% over the last six months, underperforming the Zacks categorized Financial - Savings and Loan industry’s increase of 17.8%.
Currently, People’s United carries a Zacks Rank #2 (Buy).
Some other financial stocks worth considering include KB Financial Group Inc. KB, sporting a Zacks Rank #1 (Strong Buy), First Defiance Financial Corp. FDEF and HopFed Bancorp, Inc. HFBC, holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
KB Financial’s earnings estimates were revised upward by 4.6% for the current year in the past 30 days. Also, its share price increased 58.3%, over the last one year.
First Defiance’s current-year earnings estimates were revised 1.2% upward over the last 30 days. Also, its shares surged 32.4% in the last one year.
HopFed Bancorp’s current-year earnings estimates were revised 3.5% upward over the last 30 days. Its shares increased 26.5% over the last year.
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KB Financial Group Inc (KB): Free Stock Analysis Report
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