Connecticut’s Webster Bank merger gets final approval

Connecticut’s Webster Bank merger gets final approval
Written by Publishing Team

Federal banking regulators have approved a merger of one of Connecticut’s largest local banks, Webster Financial Corp. and Sterling Bancorp, the two partners in the deal said on Monday.

An all-share merger worth $10 billion was announced in April. Officials at two companies said in a statement on Monday that closing the deal is scheduled to take place sometime around February 1, 2022.

But when asked about more details about the merger, including whether there will be layoffs as a result or any branch closures, Webster spokeswoman Alice Ferreira said, “We are focused on the good news to receive final regulatory approval.”

“We’ll have more information as we get closer to operating as a joint company,” Ferreira said in an email sent to Hearst Connecticut Media.

When the deal closes, the combined company will have approximately $65.5 billion in assets, $42 billion in loans, and $54 billion in deposit balances, as of September 30, and will operate more than 200 financial centers in the Northeast region.

The soon-to-be-incorporated company will be based in Stamford. Ferreira told Hearst Connecticut Media last month that Webster’s Waterbury offices would retain “some headquarter functions,” though she declined to elaborate.

John Caruson, president of the Center for Bank Analysis, a Hartford-based industry advisory firm, said that while integrating equalizers can “create shareholder value,” it’s also important for the two financial institutions to start their cards on the table in terms of who has responsibilities and how some might change. “.

“There are a lot of things that can go wrong if they are not careful,” Karusoni said. “There can be a mismatch between corporate cultures, there can be a mismatch of computer systems and customers can be unhappy as a result. And competitors will wipe their feet, trying to take a piece of their market share.”

Caruson estimated that the headquarter staff of the combined banks would be between 25 and 50 people.

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