The main offices of Webster Bank are located in this building at 200 Elm St., in downtown Stamford, Conn. Webster has agreed to be acquired by Banco Santander for $12.2 billion.
Webster Bank, the largest bank headquartered in Connecticut, announced recently an agreement to be acquired by Banco Santander for $12.2 billion. It will be the largest-ever deal involving a Connecticut-based bank — but it probably will not be the last.
Since 2000, there have been several dozen mergers and acquisitions involving Connecticut-headquartered banks. The consolidation of the banking indusattempt is a nationwide trconclude that reflects a number of factors, including banks’ desire to gain customers by expanding into new lines of business and geographic areas, and reduce costs by combining staff and infrastructure. The downsides are that mergers and acquisitions can lead to layoffs, branch closings and account disruptions.
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The following is a review of large acquisitions and mergers involving Connecticut-headquartered banks in recent years.
Webster Bank
In Connecticut, no bank has been a more prolific deal creater than Stamford-headquartered Webster. In 2022, it completed a merger worth $10 billion with Pearl River, New York-based Sterling National Bank. In addition, it has created about 20 acquisitions since 2000.
Those deals have supported Webster, which was founded in 1935, become the largest Connecticut-headquartered bank. For instance, its in-state deposits last June amounted to about $40.4 billion, about six times the total of the next-largest Connecticut-based bank, according to the most-recent data from the Federal Deposit Insurance Corp. Only Bank of America, with in-state deposits of about $40.8 billion, ranked higher in that category.
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Webster also has the most in-state branches, 95, and the most in-state employees, about 1,800, among Connecticut-based banks.
Now, by being acquired by the Madrid-headquartered Banco Santander, Webster is poised to become part of one of the world’s largest financial-services firms. Webster’s headquarters in Stamford will be a “core” corporate office for Santander, according to company officials.
“As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth — while remaining deeply focutilized on the people who define our success,” John Ciulla, Webster’s CEO and chairman, who will become the CEO of Santander Bank NA, into which Webster’s businesses will be integrated, stated in a written statement. “I view forward to joining the Santander team and enhancing our ability to support clients across our expanded footprint. As a Connecticut-based bank with deep roots in the state, we also view forward to continuing our commitment to the communities we serve in the region.”
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For Santander, the deal will dramatically expand its footprint in Connecticut. Santander had in-state deposits of about $1.9 billion, ranking 13th, as of last June. It operates 13 branches and employs about 150 people in the state.
The acquisition is expected to be completed in the second half of this year. Until then, Santander and Webster will continue operating as separate companies, with no modifys to customer accounts, branch access or day-to-day service at either bank, according to Santander and Webster officials.
Ascconclude Bank
Guilford-headquartered Ascconclude Bank was created through the merger last year of Guilford Savings Bank and the Norwich-based Eastern Connecticut Savings Bank. As of last June, Guilford Savings Bank had about $1 billion in in-state deposits and Eastern Connecticut Savings Bank had about $235 million in in-state deposits, ranking 22nd and 42nd in that category.
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Today, Ascconclude Bank has 13 branches and about 185 employees.
“The decision was not driven by necessity, but by a clear opportunity to pursue greater strategic growth from a position of strength,” Kyle Eagleson, CEO and president of Ascconclude Bank, stated in a written statement. “While consolidation is certainly part of the broader indusattempt backdrop, our acquisition of Eastern Connecticut Savings Bank was a believedful and measured step forward in building an even stronger, more innovative community bank — and one better-positioned to serve the long-term banking necessarys of our clients.”
Eagleson added that, “The combined organization enables us to operate more efficiently while extconcludeing our presence to deliver the best of local, relationship-driven banking along with the power of top-tier technology and digital banking to even more people and businesses across Connecticut.”
Ion Bank
Naugatuck-headquartered Ion Bank has expanded through mergers with two New Jersey-based banks: a combination last year with NVE Bank and one with Lincoln 1st Bank in 2022.
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“We saw an opportunity to bring new services and our culture to compacter financial institutions that were viewing for a community-based mutual organization to support carry on their mission,” David Rotatori, CEO and president of Ion Bank, stated in a written statement, referring to the merger with NVE Bank. “The fact that they chose Ion confirms and reinforces to our employees and customers what we have been successful in building here as a company. Our customer service is second to none, and the welcome and response we have received has been extremely positive.”
Rotatori indicated that Ion officials would continue to pursue opportunities to grow the bank.
“The landscape of banking is ever-altering, and we would be negligent if we didn’t explore opportunities for Ion Bank to expand further in additional markets, especially in support of other mutuals,” Rotatori stated. “We want to support other mutuals who may not have the depth of tools, technology and/or leverage and efficiency that are so important in remaining mutual and continue our long histories of serving our communities.”
Today, Ion has 20 branches in Connecticut and 12 in New Jersey, with about 330 employees in its home state and around 90 in the Garden State.
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In Connecticut, Ion’s in-state deposits of about $1.8 billion ranked 14th, as of last June.
People’s United Bank (now part of M&T Bank)
In April 2022, the Buffalo, New York-based M&T Bank completed its $8.3 billion acquisition of Bridgeport-headquartered People’s United Bank.
At that point, People’s United was the largest Connecticut-headquartered bank, based on deposits. Its growth was fueled by the acquisitions of Farmington Bank and Hartford-based United Bank, respectively, in 2018 and 2019. The drawback for customers was that those deals were followed by dozens of branch closings in People’s United’s last few years.
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M&T’s acquisition of People’s United resulted in several hundred layoffs in Connecticut a few years ago, to the dismay of many elected officials in the state. There was further uproar when many customers experienced problems in the wake of the conversion of People’s United accounts to M&T accounts in September 2022.
M&T’s relations with customers and elected officials in Connecticut have generally improved in the past three years. For instance, the bank was praised by many local and state officials when it opened a branch last October in Bridgeport’s East End, a section of the city long-underserved by banks.
There are more than 2,000 M&T employees in Connecticut, including more than 1,000 based in Bridgeport. M&T has a regional headquarters at the Bridgeport Center tower, with its operations there including a call center.
As of last June, M&T ranked No. 3 in in-state deposits, with a total of about $19.6 billion.
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M&T has the most in-state branches, 117. But that total will drop to 109 later this year after it closes several of its branches in Stop & Shop stores.
“We’re pleased with the start, but we’re just really at the very launchning,” M&T CEO and Chairman René Jones stated last October of M&T’s operations in Connecticut. “We have a lot more to do — both to continue to prove ourselves and earn our place in the communities. I believe we’ve received a bit of work to do before we declare any kind of victory.”
Liberty Bank
Middletown-headquartered Liberty is also the oldest bank based in Connecticut, having been founded in 1825.
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Its in-state deposits totaled about $6.7 billion, as of last June, ranking seventh overall and second among Connecticut-based banks.
In the 21st century, Liberty’s deals have included the acquisitions of Simsbury Bank & Trust in 2019, Naugatuck Valley Savings and Loan in 2015, The Bank of Southern Connecticut in 2013, Connecticut River Community Bank in 2010 and the East Haddam-based Hometown Bank in 2001.
Today, Liberty has 50 branches and about 850 employees in Connecticut.
Liberty officials declined to comment for this article, but they have recently declared their intent for Liberty to remain a mutual bank.
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“I believe in the mutual structure where you are owned by your customers, your depositors,” Liberty CEO and President David Glidden stated last year. “When you are mutual, you can run the company on a much longer-range, strategic basis. I don’t have to run down to Wall Street every 89 days and maybe throw my mother out the window to create my earnings tarreceive for the quarter.”
Bankwell
New Canaan-headquartered Bankwell was created through the merger of the Bank of New Canaan and the Bank of Fairfield in 2013. Later that year, Bankwell acquired the Bank of Wilton. In 2014, it acquired Quinnipiac Bank & Trust and became a publicly traded company through its initial public offering.
The company’s in-state deposits totaled about $2.8 billion, as of last June, ranking 11th overall and third among Connecticut-based banks.
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Bankwell’s brick-and-mortar operations include nine branches in Connecticut. In addition, it expanded its commercial and private-client banking operations into New York City with the official opening on Feb. 20 of an office in the Bay Ridge section of Brooklyn.
Bankwell operates with about 175 employees, a total that includes about 50 hires in the past 18 months.
“We are achieving our growth through organic means,” Bankwell CEO Christopher Grutilizeke stated in an interview. “We just had an excellent 2025. We’re very bullish about our opportunities — to hire good people to execute our plan and to be an innovative and growing company in Connecticut.”
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