Bank of Smithtown's takeover complete

The Bank of Smithtown no longer exists.

Its takeover by People's United Financial Inc. of Connecticut was completed Tuesday, and in the next few weeks the bank's 30 branches will be renamed as People's United Bank branches.

"For customers it's simply business as usual," People's United spokesman Brent DiGiorgio said Wednesday. All branches remain open with the same employees, and accounts will stay the same.

A handful of senior managers is no longer employed, thanks to contractual clauses that paid the executives millions when People's United's $60-million purchase of Smithtown became final. Most notable of those was Smithtown's chief executive, Brad Rock Sr., who walked away with more than $10 million.

Smithtown sought buyers after bad commercial real estate loans spiraled out of control, leading the bank to lose more than $60 million since the beginning of the year.

In time, DiGiorgio said, some of Smithtown's back-office operations may be consolidated in Bridgeport, Conn., with People's United, but that decision will be made in the future.

For now, he said, Smithtown customers have access to 340 branches in the metropolitan area and New England. And because People's United has higher lending limits, it is able to make more and bigger loans to creditworthy customers, DiGiorgio said.