Mergers & Advantages

Cambridge Trust Finds Opportunity in Upheaval

Bank Lures Wealth Managers After People’s United Merger


Cambridge Trust Co. was able to expand the reach of its wealth management services into Connecticut after luring away employees of the state’s biggest bank amid a major merger.

As mergers and acquisitions continue to alter the region’s banking landscape, one local bank has found an opportunity amid the shakeup to expand its wealth management services into a third New England state. 

Cambridge Trust Co. hired a wealth management team in November from Bridgeport, Connecticut-based People’s United Bank. The Cambridge-based bank plans to expand its services into Connecticut, adding the state to its current Massachusetts and New Hampshire market. 

While the Connecticut expansion will not initially involve branches or even an office, the bank expects its more than 100-year-old wealth management services to take hold in the state during a time when wealth is expected to transfer and grow. 

“A lot of people want to manage people’s money in this industry, and it’s a great time to be in this business,” said Robert Maquat, who joined Cambridge Trust in November as senior vice president and senior private banker. “There’s so much wealth that’s being created so much is going to be transferred to the next generation – it’s really unprecedented.” 

Mortgage Lending Could Follow 

After Buffalo-based M&T Bank announced plans last year to acquire People’s United Bank – a deal expected to be completed on April 1 – Maquat approached Cambridge Trust and other institutions about finding a new home for his wealth management team at People’s United.  

Cambridge Trust, a $4.9 billion-asset bank with $5 billion in wealth assets under management, had the type of platform the team wanted, Maquat said, including extensive investment offerings with a global reach and fiduciary trust services. 

Maquat’s team includes Christopher Lucas, Sharon Mathews, Doreen DiBari and Wil Fleming. Another wealth manager from People’s United, Celia Cazayoux, had joined Cambridge Trust in June. 

“When we had an opportunity to talk to Rob and his colleagues … we saw an opportunity to really build our presence in another new market, and so we were excited when that team approached us,” said Jennifer Pline, Cambridge Trust’s head of wealth management. “We saw it as an opportunity to bring in a fantastic team and to start to dip our toes into a new market.” 

As it enters a new state, Cambridge Trust will look to its expansion in New Hampshire more than two decades ago for a model, Pline said. The bank started slowly building its business there, she said, and now has about $1.5 billion in wealth assets under management in New Hampshire.  

Cambridge Trust in 2019 acquired a bank in New Hampshire, Optima Bank and Trust, which Pline said added to the bank’s growth in that market.  

The team has already brought in some wealth business, Pline said, and the bank plans to look at adding mortgages and other services in Connecticut. The bank plans to reach out to local chambers of commerce and introduce some marketing initiatives to spread awareness in Connecticut about Cambridge Trust over the next two years. 

While the bank has briefly discussed opening a branch in Connecticut, Pline said Cambridge Trust has no specific plans at this point, instead waiting to see how the expansion unfolds. 

The experiences of prospective clients with Cambridge Trust will also contribute to brand awareness, Maquat said. 

“Cambridge has a very strong brand in Massachusetts, New Hampshire, and to some degree people are aware of it,” Maquat said. “But building a brand organically in a new geographic area really is the experience that the customer or the prospect has, so we build it one client at a time.” 

As prospective customers tell trust and estate attorneys, accountants and other partners about their experiences, Maquat said, the awareness will grow further.  

Relationships Built In-House 

Technology advancements and digital banking have meant that banks no longer need to have branches in every market where they operate, said Mark Fitzgibbon, a managing director and research analyst at Piper Sandler. Fitzgibbon, who covers Cambridge Trust, added that he would not be surprised to see Cambridge Trust open a wealth management office in Connecticut to have a physical presence in the state. 

He pointed to Westerly, Rhode Island-based Washington Trust Co. as a bank with no branches in Massachusetts but a successful wealth management business here. Washington Trust has operated the Wellesley-based Weston Financial Group, recently renamed Washington Trust Wealth Management, since acquiring the business in 2005.  

Having wealth management services within a bank is a logical combination, Fitzgibbon said, because the customers already have confidence in the bank.  

“It’s easier to then try to sell them wealth products if they’re already comfortable with the bank having their financial information and having deposit and loan relationships,” Fitzgibbon said. “It’s very synergistic.” 

Fitzgibbon added that the wealth management model Cambridge Trust uses, which includes in-house money management and fiduciary responsibility, has been more successful than the approach taken by other small and midsize banks. These banks outsource the money management, Fitzgibbon said, which is less expensive but does not lead to the growth and relationship building seen with in-house models. 

No Specific Targets 

The bank has not set specific growth targets for Connecticut but expects to find significant growth opportunities, Pline said. Wealth created by entrepreneurs provides opportunities in all three New England markets, she said, particularly in Massachusetts’ innovation economy.  

Maquat added that economic stimulus payments, inflation and geopolitical tensions have highlighted the importance for the bank’s potential clients of having a wealth adviser for selecting stocks and other securities. He added that the need for estate and family planning also has an added significance when transferring generational wealth. 

Cambridge Trust faces competition from small and large companies in each market, and Maquat said the bank’s platform and capabilities provide an advantage. 

“We can be nimble; we can be attentive; and we can be responsive,” Maquat said. “There’s a lack of bureaucracy and a culture of teamwork, and I think the client sees that when they have the opportunity to work with us, and that’s clearly a benefit.”