People’s United Financial Inc., the holding company for People’s United Bank, has struck a $3.25 million agreement to acquire 56 branches, most within Stop & Shop supermarkets, from Citizens Financial Group Inc.

The acquisition also allows Bridgeport, Conn.-based People’s United to assume $325 million in deposits associated with the branches. Fifty-two of the branches are in Stop & Shop supermarkets. Four are traditional branches. All the branches are located in New York, with 29 on Long Island, eight in Westchester County and six in the boroughs of New York City.

In a statement, the bank said all are in "areas of key focus for People’s United."  People’s United entered the Eastern Massachusetts market last year after aquiring Danvers Bank.

 People’s United, which currently operates 87 Stop & Shop branch locations in Connecticut, will pay Citizens a 1 percent premium on the assumed deposits. The transaction gives People’s United possession of all Citizens’ Long Island and New York City branches.

All employees at the acquired Citizens branches will be offered comparable positions at People’s United, the bank said. Completion of the transaction is anticipated late in the second quarter and is subject to customary closing conditions, including the receipt of regulatory approvals.

"This acquisition leverages the excellent in-store banking track record of People’s United to deepen our presence and introduce the convenience of our in-store banking to customers on Long Island and in Westchester County," said Jack Barnes, President and Chief Executive Officer of People’s United Financial.

People’s United currently has 37 traditional branch locations on Long Island and in Westchester County.

People’s United was advised in this transaction by Jefferies & Co. Inc. as financial advisor and Simpson Thacher & Bartlett LLP as legal counsel. Citizens was advised by Keefe, Bruyette & Woods, Inc.