As People's United merger nears, M&T Bank commits $43 billion to community-based investments

Buffalo-based M&T Bank announced today its plans to invest $43 billion in community-based projects over a five-year span.

The plan will include "loans, investments and other financial support to create greater economic opportunity for low-to-moderate income families and neighborhoods, as well as people and communities of color," the bank said.

The announcement was made as the bank nears the finish line of its $7.6 billion acquisition of People's United Bank, which will give M&T a much larger footprint in New England and make it the 11th largest bank in the country. M&T officials hope to clear all regulatory hurdles to close on the transaction in the fourth quarter.

The bank's Community Growth Plan dovetails with other announcements typically made by banks in the face of major acquisitions. When KeyBank acquired First Niagara Financial Corp. in 2016, it announced a $16.5 billion "community benefits plan" negotiated with the National Community Reinvestment Coalition.

M&T also engaged with the coalition in forming its commitment, which will encompass projects in both existing and new footprints. The plan will become operational shortly after the PUB merger closes, M&T said.

The plan includes $23 billion in loans for home purchases, $20 billion for community development activities and a variety of other commitments. The bank anticipates designating up to 115 branches through its expanded footprint as multicultural banking centers with bilingual staff. It will launch a new financial education initiative and expand the availability of its Bank On certified checking account and secured credit card,among other commitments.

Back-to-office plans

Speaking of M&T, the bank notified employees Thursday that it is targeting a return-to-office date of Jan. 10.

"While some employees have already voluntarily returned, we expect others will return on a set hybrid schedule on this date, enabling in-person collaboration while offering each of our businesses and their team members the flexibility to meet their unique needs," a spokeswoman said.

Many M&T positions will be on a three-day-a-week schedule that include Tuesdays, Wednesdays and another day of the employee's choosing.

The announcement pertains mainly to back-office employees. M&T branches never closed during the pandemic.