Further expansion by People’s Bank into the Massachusetts market could bring the Connecticut-based operation into competition with a similarly named institution, Holyoke-based PeoplesBank (pictured above).

After years of reaching across state borders to garner more commercial loans, Bridgeport, Conn.-based People’s Bank two weeks ago established a physical presence in Massachusetts when it opened a loan production office in Burlington. The move places the bank in a competitive market populated by many established super-regional institutions, and might foreshadow further expansion.

Meanwhile, PeoplesBank in Holyoke isn’t saying much about the Connecticut bank’s move, but analysts say it wouldn’t be the first time two banks with similar names have crossed paths.

The new office – which, because it is a lending business unit of the bank, is called People’s Capital – is the bank’s first office outside of Connecticut.

“This [new location] perhaps presages follow-up expansion plans in Massachusetts,” said John Carusone, president of the Hartford, Conn.-based Bank Analysis Center.

Representatives from the bank have been tightlipped about any specific expansion plans in the past, saying only that it is exploring possibilities of expanding into contiguous markets. Spokesman Brent Digiorgio echoed that when asked if there were any plans for more offices or branches in the Bay State.

John Garvey, spokesman for PeoplesBank in Holyoke, which has branches in 12 western Massachusetts communities, had no comment about the Connecticut institution’s move to Massachusetts or the similarity in name.

However, if the Massachusetts bank were to decide to challenge People’s Bank in the future, especially if it opened bank branches within PeopleBank’s footprint, it wouldn’t be the first time two banks have fought for a name or trademark.

“Any business can seek to lay claim to a mark that is not generic,” said Penny Lennox, an associate with Boston-based law firm Kirkpatrick & Lockhart Nicholson Graham.

Worcester-based Bay State Savings filed a lawsuit against Bay State Federal Savings Bank in 1999. The case settled when Bay State Federal Savings agreed to change its name to “Bay State Bank.” Last year, Bay State Savings filed a preliminary injunction to stop Baystate Financial Services, which offers investment and insurance products, from using its Bay State service mark. That motion was denied by a judge who said geographical descriptiveness is a “weak mark” and that the two entities offer different goods and services.

Lennox said the strength of a mark is partially dependent on how many other marks like it are in use in the field and on how descriptive it is of the goods or services offered.

“A weaker mark gets a narrower scope of protection,” Lennox said.

If PeoplesBank were to litigate against People’s Bank for naming rights, Lennox said each bank, because of their history, would each have certain rights.

“Both [banks] may have substantial common law rights due to long use,” Lennox said.

People’s Bank in Connecticut was established in 1842 and PeoplesBank began doing business in 1885.

Typically, whichever entity has used the mark the longest in a geographical region has priority. Lennox said that if the Connecticut bank was in business for a longer period of time in Connecticut, but not in Massachusetts, a court might rule that it can use the name in Connecticut, but not necessarily in Massachusetts.

And while one bank uses an apostrophe in its name and the other does not, Lennox said that shouldn’t matter to a court. Differences in a mark, like an apostrophe, are not going to be a major factor in a decision. Courts will look at the overall commercial impression, the similarity in the marks, if the business fields are related and how strong the mark is.

Although the new People’s Bank office is about 60 miles from the Connecticut border, it is not unusual for commercial banks to set up loan production offices in “far corners,” according to Kevin Handly, a bank attorney with the Boston office of New Hampshire-based Gallagher, Callahan & Gartrell. It was a natural move for a successful Connecticut bank like People’s to position itself in Massachusetts’ high-tech beltway, he said.

A ‘Vibrant Hub’

But it’s not going to be easy for the new office to gain its desired portion of market share. Sovereign Bank, Bank of America, Banknorth, Citizens Bank and others already have established presences in the area, and all are competing for more loan market share than they currently hold. The market itself has not been fast-growing, either, Handly said.

“It’s going to be an uphill road [for People’s],” he noted.

The People’s Bank has used a typical strategy in an attempt to corner market share. The new office employs seven people, all of whom are local. The new regional manager and loan officers are all experienced bankers who have worked in the area for years, and bring with them many established contacts.

The bank intentionally hired local people with a good knowledge of the market, according to Tom Pantello, People’s senior vice president of commercial real estate finance.

“They’re going to know where the good opportunities are,” he said. “We are anticipating it will be a success.”

Although the office is about an hour away from any other People’s offices, it is not entirely isolated, he said. Its manager reports to the eastern market division of People’s Bank, which includes Hartford, New Haven and Norwich.

The size of the $11 billion bank also is expected to help it compete.

“They clearly have the resources of a big bank, and if they choose to bring those resources to bear, they can be a formidable competitor,” Handly said.

People’s executives originally considered a location for the office that was closer to its Connecticut operation, but chose Burlington after a two-year initiative aimed at getting business from nearby markets like Rhode Island and Massachusetts. The effort gave the bank a good idea of where its target customers were located, according to Pantello.

“It’s not all that new for us,” Pantello said. “Our business doesn’t stop at the borders [of Connecticut].”

The two-year search gave the bank a chance to familiarize itself with areas outside of Connecticut, and to get to know the players in those markets. Pantello said the bank found good business opportunities in surrounding markets, sometimes by following existing Connecticut customers across borders and granting loans for projects in other markets.

Because of the success of the initiative, People’s decided it was time for a physical presence in Massachusetts, Pantello said. The bank originally explored locations closer to home, such as Worcester and Marlborough, but decided on Burlington because of the strong potential there, he noted.

Burlington also offers the office’s employees ease when traveling because it is near Interstates 93 and 95 and the community offers a variety of amenities for the staff.

“It’s a pretty vibrant hub of business,” Pantello said.

Pantello added that he would like to explore the possibility of opening more commercial loan offices in Massachusetts, but said the area and the businesses there would have to be just right.

The new staff is made up of the office manager, Patrick Lee; the first loan officer, Judith Cogan; three other loan officers; and two support staff members. Lee and Cogan are from the Massachusetts communities of Sudbury and Newton, respectively, and have worked at banks in the area for many years.

The new office is located in an office building at 50 Mall Road in Burlington.

The bank also has a subsidiary called People’s Capital & Leasing Corp. in 42 states. The company focuses on printing, packaging and trucking fleet financing.