- People's United isn't ending on a particularly strong note, with second quarter earnings that were below expectations on the pre-provision level, and similar to its acquirer M&T Bank.
- Loan growth remains disappointingly weak, both in absolute terms and compared to regional peers, and People's United's loan yields are likewise lackluster.
- I continue to believe that the M&T Bank acquisition is a good outcome for People's United shareholders, as M&T can better leverage the bank's low-cost deposit base and drive cross-selling.
- People's United shares offer a very small discount to the implied deal value, but M&T Bank shares are still priced to offer a double-digit long-term annualized return.
For further details see:
People's United Financial Closing Out With Some Soft Notes