Merger Completions

On December 1, Webster Financial Corporation completed its acquisition of New England Community Bancorp, Windsor, CT. As of June 30, 1999, Webster Financial Corporation had total deposits of $5.7 billion and ranked seventh among all commercial banking and thrift institutions in New England. As of the same date, New England Bank & Trust Co. had total deposits of $648.4 million and ranked 41st. On December 20, Camden National Corporation, Camden, ME, completed its acquisition of KSB Bancorp Inc., Kingfield, ME. As of June 30, 1999, Camden National Corporation had total deposits of $514.8 million and ranked fifth among all commercial banking and thrift institutions in Maine. As of the same date, KSB Bancorp Inc. had total deposits of $134.2 million and ranked 26th. (Internal Notice, 12/2; SNL Weekly BankFax, 12/6; SNL Weekly BankFax, 12/27/99)

On December 2, Webster Financial Corporation signed a definitive agreement to acquire thrift Mech Financial, Inc., Hartford, CT, for $210 million. Originally announced as a pooling-of-interests transaction, the purchase transaction is expected to be completed in the second quarter of 2000. As of June 30, 1999, Webster Financial Corporation had total deposits of $5.7 billion and ranked third among all commercial banking and thrift institutions in Connecticut. As of the same date, Mech Financial, Inc. had total deposits of $694.6 million and ranked 13th. (American Bkr., 12/3; SNL Weekly BankFax, 12/6; SNL Weekly BankFax, 12/27/99)

On December 23, Peoples Heritage Financial Group, Inc., and Banknorth Group, Inc. announced that they have agreed to extend the deadline on completing their proposed merger from April 1, 2000 to May 31, 2000. The deadline extension will provide time for the staff of the Federal Reserve Bank of Boston (FRBB) to collect more information on which to base its recommendation regarding the proposed acquisition to the Federal Reserve Board of Governors (Fed). Specifically, the FRBB wants to further evaluate the risk management procedures of Peoples Heritage. The scheduled evaluation does not reflect any Year 2000 concerns. Due to the extension, Peoples Heritage Financial Group agreed to pay Banknorth Group, Inc. $5 million in case the required regulatory approvals are not obtained, or the merger is not completed by the appointed date, for reasons other than a breach of the merger agreement by Banknorth Group, Inc. As of June 30, 1999, Peoples Heritage Financial Group had total deposits of $8.4 billion and ranked fifth among all commercial banking and thrift institutions in New England. As of the same date, Banknorth Group, Inc. had total deposits of $2.6 billion and ranked 12th. (Boston Globe, 12/24; Business Wire, 12/23; SNL Weekly BankFax, 12/27/99)

On December 1, Advest Bank & Trust Co., Hartford, CT, converted to a Limited Purpose Non-depository Trust Company. (Internal Notice, 12/2/99)

On December 22, Sinclair Bank & Trust Company, Portland, ME, ceased operations through a voluntary liquidation and surrender of its charter. (Internal Notice, 12/23/99)

On December 20, Cape Cod Bank and Trust Co., a unit of CCBT Financial Cos., Hyannis, MA, sold its merchant credit card service business to Nova Information Systems Inc., Atlanta, GA, for an undisclosed amount. (SNL Weekly BankFax, 12/27/99)

On December 22, Cape Cod Bank and Trust Co., a unit of CCBT Financial Cos., Hyannis, MA, agreed to acquire a 51 percent stake in insurance broker Murray & McDonald Insurance Services Inc., Falmouth, MA, for an undisclosed amount. The transaction is subject to regulatory approval. (SNL Weekly BankFax, 12/27/99)

On December 21, M & T Bank Corporation, Buffalo, NY, agreed to acquire property & casualty insurance broker Matthews, Bartlett, and Dedecker Inc., Buffalo, NY, for an undisclosed amount. The transaction is expected to be completed in the first quarter of 2000. (SNL Weekly BankFax, 12/27/99)

On November 30, Hudson United Bank, Mahwah, NJ, purchased only the loans, assets, and deposit liabilities (not the office space)from Advest Bank & Trust Co., Hartford, CT. As of June 30, 1999, Advest Bank & Trust Co. had total deposits of $161.8 million and ranked 45th among all commercial banking and thrift institutions in Connecticut. (Internal Notice, 12/2/99)

On December 21, Independence Community Bank Corporation, Brooklyn, NY, received all required regulatory approvals to permit the acquisition of Statewide Financial Corporation, Jersey City, NJ. 3) The transaction is expected to be completed by January 7, 2000. (PR News Wire, 12/22; SNL Weekly BankFax, 12/27/99)

On December 9, Chase Manhattan Corporation, New York, NY, completed its acquisition of Hambrecht & Quist Group, San Francisco, CA. The $1.4 billion purchase will enable Chase, a prominent underwriter, to underwrite Initial Public Offerings (IPOs) for its clients. (American Bkr., 12/6; SNL Weekly BankFax, 12/13/99)

On December 8, BostonFed Bancorp, Burlington, MA, completed its acquisition of Diversified Ventures, Inc. (which operates as Forward Financial Co.), Northborough, MA. (SNL Weekly BankFax, 12/13/99)

On December 6, Citizens Financial Group, Providence, RI, pledged $148 million in reinvestment for low-income and minority communities, in conjunction with its pending acquisition of UST Corporation, Boston, MA. As of June 30, 1999, Royal Bank of Scotland Group Plc, Edinburgh, Scotland, parent company of Citizens Financial Group, had total deposits of $14.5 billion and ranked third among all commercial banking and thrift institutions in New England. As of the same date, UST Corporation had total deposits of $4.3 billion and ranked eighth. (SNL Weekly BankFax, 12/13/99)

On December 14, Dime Bancorp, Inc., New York, NY, and Hudson United Bancorp, Mahwah, NH, pledged $2.5 billion in reinvestment for low and moderate-income communities, in conjunction with their pending merger of equals. (SNL Weekly BankFax, 12/20/99)

On November 30, Federal Deposit Insurance Corporation (FDIC) officials reported that five banks (and no thrifts) are rated "needs improvement"(2) or "unsatisfactory" (3), regarding year-2000 compliance. As a protectionary measure, all of the banks are required to make backup copies of customer data. Although specific banks were not mentioned, the FDIC pointed out that the banks have average deposits of $126 million. (American Bkr., 11/30; SNL Weekly BankFax, 12/6/99)

On December 20, the Connecticut State Supreme Court ruled 5-2 that the state's existing law does not prohibit banks from imposing ATM surcharges, because the law was not drafted with ATMs in mind . The ruling culminates a 3-year court effort by Fleet Financial Group, Inc., Boston, MA, to assess ATM fees in Connecticut. In order to appease the socioeconomic concerns of the dissenting justices, a Fleet spokesman said that Fleet would not impose fees on welfare recipients with electronically-deposited benefits. Consumer-rights advocates contend that it is unfair that non-customer users of an ATM are charged two fees one which goes to the ATM's owner, and one which goes to the customer's bank. Many bankers maintain that the fees are necessary for funding the ATMs' operation. With the ruling, Iowa becomes the only state in which ATM fees are illegal. Certain municipalities, such as San Francisco and Santa Monica, CA, have also passed city ordinances banning the fee within their municipal limits. While most Connecticut banks are still considering whether to impose new fees, Fleet Financial Group, Inc., plans to assess $1 surcharges beginning January 3, 2000. (The Hartford Courant, 12/23/99)

Items in Bank Notes focused on developments affecting banking structure in New England. They were condensed from daily newspapers and press releases from federal and state financial regulatory agencies. Their reproduction does not imply our endorsement of the accuracy, opinions or policies reflected in the subject matter.Items in Bank Notes focused on developments affecting banking structure in New England. They were condensed from daily newspapers and press releases from federal and state financial regulatory agencies. Their reproduction does not imply our endorsement of the accuracy, opinions or policies reflected in the subject matter.