People's United Bank, Bridgeport, Connecticut Acquires Troubled Butler Bank
Uninterrupted Service Tomorrow
BOSTON - April 16, 2010 - At 6:00pm today, the Massachusetts Division of Banks took possession and control of Butler Bank, Lowell, Massachusetts (Butler) and turned it over to the Federal Deposit Insurance Corporation (FDIC). All of its deposits and branch offices were immediately acquired by People's United Bank, Bridgeport, Connecticut (People's United Bank) in a purchase and assumption transaction arranged by the FDIC.
All depositors of Butler will automatically become depositors of People's United Bank. "Butler's customers can expect a smooth transition," said Commissioner of Banks Steven L. Antonakes. Depositors will not experience any loss and should expect little or no disruption in services. All accounts transferred to People's United Bank are insured by the FDIC up to $250,000.
Butler offices having Saturday hours will immediately reopen tomorrow as branch offices of People's United Bank. All other offices will reopen as usual on Monday. Tonight and throughout the weekend, Butler depositors can continue to access their funds by writing checks and utilizing their existing ATM and/or debit cards.
"Depositors should remain confident in the overall safety and soundness of the Commonwealth's banking industry. The overwhelming majority of Massachusetts state-chartered banks remain healthy and well capitalized," assured Antonakes. "Today's action represents an isolated occurrence and is an example of how bank regulators and the banking industry, acting together, can effectively resolve troubled institutions during this challenging economic climate," said Antonakes. "Ultimately, Butler's former consumer and business customers will benefit by having improved access to credit and deposit services through People's United Bank, a $22 billion financial institution with offices in Massachusetts, Connecticut, Maine, New Hampshire, New York, and Vermont," added Antonakes.
As of February 28, 2010, Butler had total assets of approximately $250 million and total deposits of approximately $229 million. Butler was an aggressive commercial real estate lender. Overall asset quality was poor as a result of economic factors, as well as inadequate underwriting practices and policies. Examination and other reports showed that Butler was no longer viable as an independent institution. Efforts to recapitalize Butler were not successful. These factors led to the Division's action today.
Butler's main office is located in Lowell, Massachusetts. It had a branch office in Andover and two branch offices in Marlboro. Personnel from People's United Bank will be available, along with former Butler personnel, to answer questions and to assist customers with their banking transactions.
The Division of Banks has set up a toll-free Consumer Hotline for Butler Bank depositors. Individuals who have questions or concerns may call 1-800-495-BANK or 617-956-1501 today until 8:00pm, Saturday, April 17 from 9:00am to 12:00pm, and during regular business hours, Monday through Friday, 8:45am to 5:00pm beginning Monday, April 19th.
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