USBN Q4 2018

18 US BUSINESS NEWS / Q4 2018 , People’s United Financial, Inc. (NASDAQ: PBCT), the holding company for People’s United Bank, N.A., announced today an agreement to acquire BSB Bancorp, Inc. (NASDAQ: BLMT), the holding company for Belmont Savings Bank (“Belmont”), a state-chartered savings bank headquartered in Belmont, Massachusetts, in a 100% stock transaction valued at approximately $327million. Completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of BSB Bancorp, Inc. stockholders. People’s United Financial, Inc. to Acquire BSB Bancorp, Inc. “We are pleased to welcome Belmont Savings Bank to People’s United,” said Jack Barnes, Chairman & CEO, People’s United Financial. “Together, we share a similar culture, a customer- centric approach to banking and guiding principles centered on relationships, personalized service and community giving. The acquisition will deepen and expand our presence in the Greater Boston area, particularly in the suburbs west of the city, which are attractive banking markets. As such, our Boston MSA deposit market share rank will increase from #13 to #8 on a pro-forma basis.” Established in 1885, Belmont is a community-focused bank providing a range of retail and commercial products and services. With $3 billion in assets, Belmont is a 2018 Fortune 100 “Fastest Growing Company,” and has six branches in the Greater Boston area, including three inside Star Markets. The bank has delivered significant organic loan growth since its mutual conversion in 2011 and produced excellent asset quality metrics. Since that time, Belmont has grown its diversified loan portfolio at a compound annual rate of 27% by focusing on commercial relationships, while maintaining its residential lending heritage. “People’s United Bank and Belmont share a rich history in the Northeast, and many synergies that will create significant value for both customers and stockholders,” said Bob Mahoney, President & CEO, BSB Bancorp, Inc. “Our customers will benefit from People’s United’s broader array of products and services, enhanced digital capabilities and expansive branch network. In addition, People’s United’s success with in-store locations will allow for the seamless integration of our Star Market branches.” People’s United expects the transaction to be approximately $0.03 accretive to earnings per common share based on fully phased-in cost savings, with a tangible book value earn-back of 3.1 years and an IRR of over 20%. Under the terms of the agreement, which has been approved by both companies’ boards of directors, BSB Bancorp, Inc. stockholders will receive 2.0 shares of People’s United Financial stock for each BSB Bancorp, Inc. share. The transaction is valued at $32.42 per BSB Bancorp, Inc. share, based on the closing price of People’s United’s common stock on November 26, 2018. The transaction is expected to close by the second quarter of 2019. “The acquisition of Belmont complements our strong organic growth in the Commonwealth of Massachusetts, particularly in the Greater Boston area,” said Patrick Sullivan, EVP, Massachusetts Market President, People’s United Bank. “We see significant opportunity for further growth in the region, with an eye toward delivering an expanded, tailored service model. The transaction enhances our already robust team of commercial and retail bankers and builds upon the momentum we are generating with the opening of our Seaport branch location early next year, and the recent addition of three new specialized business lines to our Boston-based Commercial team.” A conference call to discuss the acquisition is not scheduled. However, a presentation with additional information on the acquisition can be accessed by visiting www.peoples.com under the “Investor Relations” tab, by clicking “News & Events,” and then “Investor Presentations.” Keefe, Bruyette & Woods, Inc. served as financial advisor to People’s United and Simpson Thacher & Bartlett LLP served as legal counsel to People’s United. J.P. Morgan Securities LLC served as financial advisor to BSB Bancorp, Inc. and Luse Gorman, PC served as legal counsel to BSB Bancorp, Inc.