People's United to acquire First Connecticut Bancorp for $544 million in stock deal

Vermont Business Magazine Vermont People's United Financial, Inc(NASDAQ: PBCT), the holding company forPeople's United Bank, NA, announced today an agreement to acquireFirst Connecticut Bancorp, Inc. (NASDAQ: FBNK), ofFarmington CT, the holding company forFarmington Bank, in a 100% stock transaction valued at approximately$544 million. Completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of First Connecticut Bancorp, Inc. shareholders.

"We are excited to welcome Farmington Bank to People's United," saidJack Barnes, CEO, People's United Financial. "They have a long-standing relationship-based approach to serving their customers and complementary commercial and retail capabilities. This, coupled with their experienced team and similar culture, will strengthen our well-established presence in the region."

"People's United Bank is a premier brand with a rich 176-year history in the state ofConnecticut," saidJohn Patrick, Chairman, President and CEO, Farmington Bank. "Our customers will benefit from their broader array of products, enhanced access to technology and digital capabilities, as well as the bank's seven-day-a-week Stop & Shop branch locations."

Established in 1851, Farmington Bank is a community bank with 28 branches throughoutCentral ConnecticutandWestern Massachusetts. With$3.1 billionin assets, the bank has built a strong balance sheet by focusing on commercial and retail banking.

Barnes added, "As with the People's United Community Foundation, Farmington Bank has a strong commitment to community giving. With our shared focus, we will continue to positively impact the lives of individuals, families and businesses throughoutHartford County."

People's United expects the transaction to be$0.05accretive to earnings per common share based on fully phased-in cost savings, with a tangible book value earn-back of approximately 3.5 years and an IRR of approximately 18%. The transaction is expected to close during the fourth quarter of 2018.

Under the terms of the agreement, which has been approved by both companies' boards of directors, First Connecticut Bancorp, Inc. shareholders will receive 1.725 shares of People's United Financial stock for each First Connecticut Bancorp, Inc. share. The transaction is valued at$32.33per First Connecticut Bancorp, Inc. share, based on the closing price of People's United's common stock onJune 18, 2018.

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.

Piper Jaffray& Co. served as financial advisor to First Connecticut Bancorp, Inc. andHinckley Allen& Snyder LLP served as legal counsel to First Connecticut Bancorp, Inc.

Conference Call Information
More information regarding the strategic and financial implications of the acquisition will be provided in a People's United conference call and presentation taking place today,June 19, 2018, at8:30 a.m. ET. The call will be broadcast live viahttps://edge.media-server.com/m6/p/zatz72mrthrough the bank's website peoples.com. To access the conference call, dial-in information is as follows: Domestic: 844-309-6713 and International: 484-747-6927, conference ID# 4086968. A replay of the presentation will be availableJune 19(midnight) –June 25(midnight): Domestic: 855-859-2056 and International: 404-537-3406, conference ID# 4086968.

About People's United Bank, N.A.
People's United Bank, N.A. is a subsidiary of People's United Financial, Inc. (NASDAQ: PBCT), a diversified financial services company with$44 billionin assets. People's United Bank, founded in 1842, is a premier, community-based, regional bank in the Northeast offering commercial and retail banking, as well as wealth management services through a network of nearly 400 retail locations inConnecticut,New York,Massachusetts,Vermont,New HampshireandMaine.

About First Connecticut Bancorp, Inc.
First Connecticut Bancorp, Inc. is the holding company for Farmington Bank, a full-service community bank with 28 branch locations throughoutCentral ConnecticutandWestern Massachusetts, offering commercial and retail banking as well as wealth management services. Established in 1851, Farmington Bank is a diversified consumer and commercial bank with an ongoing commitment to contribute to the betterment of the communities in their region. Farmington Bank has assets of$3.1 billion. For more information about Farmington Bank, visitfarmingtonbankct.com.

SOURCE BRIDGEPORT, Conn.,June 19, 2018/PRNewswire/ --People's United Financial, Inc.