People’s United buys another Mass. bank

People’s United buys another Mass. bank

People’s United Financial Inc. bought its third Massachusetts bank in less than a year yesterday, the $493 million purchase of the parent of Danversbank, which has 28 branches from Needham to Manchester-by-the-Sea.

The deal would make the Bridgeport, Conn. company the seventh largest bank in Massachusetts and the Boston metro area. In April it took over Butler Bank after the troubled Lowell bank was seized by regulators. And in July, People’s United bought LSB Corp., which operated five branches in Massachusetts and two in New Hampshire under the River Bank name.

And People’s United also recently opened two new branches in Boston.

In the latest deal, People’s United agreed to buy Danvers Bancorp, Inc, the holding company that owns Danversbank and has $2.6 billion in assets. People’s agreed to pay $23 per share, 35 percent above its closing price on Wednesday afternoon. Danvers shares surged 29 percent in after-hours trading.

The purchase would push People’s United branch network in New England to above 360
and its assets to more than $27 billion.

By Todd Wallack, globe Staff

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