Merger Announcements

People's Bank, Bridgeport, CT has entered into a definitive agreement to acquire Norwich Financial Corporation, Norwich, CT. The transaction is expected to be completed in the first quarter of 1998, subject to shareholder and regulatory approvals. As of June 30, 1996, People's Mutual Holdings, Bridgeport, CT, parent company of People's Bank, had total deposits of $5.1 billion and ranked second among all commercial banking and thrift organizations in Connecticut. As of the same date, Norwich Financial Corporation, parent company of Norwich Savings Society, Norwich, CT, had total deposits of $621.7 million and ranked 17th.

New England Community Bancorp, Windsor, CT has entered into a definitive agreement to acquire Community Savings Bank, Bristol, CT. The merger, expected to be completed in the fourth quarter, is subject to shareholder and regulatory approvals. As of June 30, 1996, New England Community Bancorp, parent company of New England Bank and Trust Company, Windsor, CT, and Equity Bank, Wethersfield, CT, had total deposits of $300.3 million and ranked 32nd among all commercial banking and thrift organizations in Connecticut. As of the same date, Community Savings Bank had total deposits of $64.7 million and ranked 79th. (American Bkr., 9/5, 9/25; N.Y. Times, 9/5; SNL Weekly BankFax, 9/8, 9/22/97)

Merger Completions

On August 29, Bank of New Haven, New Haven, CT merged with Citizens Bank of Connecticut, New London, CT under the charter and title of Citizens Bank of Connecticut. As of June 30, 1996, BNH Bankshares, New Haven, CT, parent company of Bank of New Haven, had total deposits of $285.6 million and ranked 34th among all commercial banking and thrift organizations in Connecticut. As of the same date, Royal Bank of Scotland Group plc, Edinburgh, Scotland, parent company of Citizens Bank of Connecticut, had total deposits of $683.4 million and ranked 14th.

On August 30, Concord Savings Bank, Concord, NH, Centerpoint Bank, Bedford, NH, and Portsmouth Savings Bank, Portsmouth, NH merged into CFX Bank, Keene, NH under the charter and title of CFX Bank. As of June 30, 1996, Community Bankshares, Concord, NH, parent company of Concord Savings Bank and Centerpoint Bank, and Portsmouth Bank Shares, Portsmouth, NH, parent company of Portsmouth Savings Bank, had total deposits of $404.0 and $211.8 million and ranked seventh and 14th, respectively, among all commercial banking and thrift organizations in New Hampshire. As of the same date, CFX Corporation, Keene, NH, parent company of CFX Bank, had total deposits of $661.8 million and ranked fourth. (Boston Globe, 8/29; Internal Notice, 9/2; SNL Weekly BankFax, 9/2, 9/8/97)

Merger of Subsidiaries

On September 22, Vermont Federal Bank, FSB, Williston, VT and Vermont National Bank, Brattleboro, VT, both subsidiaries of Vermont Financial Services, Brattleboro, VT, merged under the charter and title of Vermont National Bank. In June 1997, Vermont Financial Services acquired Eastern Bancorp, Williston, VT, and its wholly owned subsidiary, Vermont Federal Bank, FSB. (Internal Notice, 9/22/97)

Branch Acquisition

On August 29, CFX Bank, Keene, NH purchased the Exeter, NH branch of Family Bank, FSB, Haverhill, MA with approximately $7.2 million in deposits. As of June 30, 1996, CFX Corporation, Keene, NH, parent company of CFX Bank, had total deposits of $661.8 million and ranked fourth among all commercial banking and thrift organizations in New Hampshire. (Internal Notice, 9/22/97)

Washington Trust Opens New Branch 

Washington Trust Company of Westerly, Westerly, RI has announced that it will install a bank branch in the new A,P Supermarket in Mystic, CT. The full-service branch, which will be the only one that Washington Trust operates in Connecticut, is expected to open on November 1. As of June 30, 1996, Washington Trust Bancorp, Westerly, RI, parent company of Washington Trust Company, had total deposits of $472.0 million and ranked 59th among all commercial banking and thrift organizations in New England. (SNL Weekly BankFax, 9/2/97)

Shareholders Approve Bank Holding Company Formation

The shareholders of Medford Savings Bank, Medford, MA have approved the formation of a bank holding company expected to be named Medford Bancorp, Inc. The transaction is scheduled to be completed in the fourth quarter and remains subject to all regulatory approvals. As of June 30, 1996, Medford Savings Bank had total deposits of $805.2 million and ranked 14th among all commercial banking and thrift organizations in Massachusetts. (SNL Weekly BankFax, 9/22/97)

BankBoston Sells Finance Unit

BankBoston Corporation, Boston, MA has completed the sale of Fidelity Acceptance Corporation, its consumer finance subsidiary, to Norwest Financial, a subsidiary of Norwest Corporation, Minneapolis, MN, for $343 million. Fidelity Acceptance is primarily engaged in sub- prime auto lending. BankBoston originally acquired the finance unit in July 1993. (Boston Globe, 8/29; American Bkr., 9/4/97)

BankBoston to Buy Deutsche Bank Argentina

BankBoston Corporation has agreed to acquire Deutsche Bank Argentina S.A. for $250 million. The deal involves only Deutsche Bank Argentina's retail businesses, excluding corporate lending, pension fund, insurance, and investment banking businesses. The acquisition is scheduled to be completed in the first quarter of 1998. (American Bkr., 9/30; N.Y. Times, 9/30/97)

Fleet Financial Group to Buy Discount Brokerage

Fleet Financial Group, Boston, MA has agreed to acquire Quick , Reilly Group, Inc., Palm Beach, FL, a discount retail brokerage firm. The acquisition is scheduled to be completed in the first quarter of 1998. As of June 30, 1996, Fleet Financial Group had total deposits of $38.1 billion and ranked first among all commercial banking and thrift organizations in New England. (Boston Globe, 9/17; N.Y. Times, 9/17, 9/18; SNL Weekly BankFax, 9/22, 9/29/97)

OTS Implements Computer-Based Exams

The Office of Thrift Supervision (OTS) has begun using a new electronic-based system for gathering loan data from thrifts. The new system will promote efficiency in the OTS examination process, as well as benefit the industry by facilitating improved analysis and streamlined examination of loan portfolios. In addition, the new system will enable examiners to identify changes in lending patterns more readily. (SNL Weekly BankFax, 9/2/97)

Pacific Shareholders Approve Acquisition

The shareholders of Pacific National Corporation, Nantucket, MA have approved the sale of the company and its Pacific National Bank of Nantucket, Nantucket, MA subsidiary to BankBoston Corporation, Boston, MA for $24.4 million in stock. The transaction, which is subject to regulatory approval, is expected to be completed in October. As of June 30, 1996, Bank of Boston Corporation, Boston, MA had total deposits of $16.3 billion and ranked first among all commercial banking and thrift organizations in Massachusetts. As of the same date, Pacific National Corporation had total deposits of $91.9 million and ranked 151st. (Boston Globe, 9/23; SNL Weekly BankFax, 9/29/97)

Fleet to Install New ATMs

Fleet Financial Group, Boston, MA has agreed to install more than 200 ATMs in Kmart stores throughout the Northeast and Mid-Atlantic. The new ATMs will be installed at Kmarts in Maine, New Hampshire, Rhode Island, New York, New Jersey, Pennsylvania, Vermont, Delaware, and Maryland. Fleet will not put any new ATMs in Massachusetts and Connecticut, where the bank is currently not imposing surcharges. As of June 30, 1996, Fleet Financial Group had total deposits of $38.1 billion and ranked first among all commercial banking and thrift organizations in New England. (Boston Globe, 9/26, SNL Weekly BankFax, 9/29/97)

OTS Issues Credit Union Conversion Rule

The Office of Thrift Supervision (OTS) has finalized a rule streamlining the process by which mutual institutions of other types may adopt a federal mutual savings association charter. In order to adopt a federal charter under the current system, an institution must charter and then merge with the new federal association. The change allows an institution to convert to a federal mutual charter in a single step. The new rule reduces the barriers to institutions that choose to abandon the federal credit union charter in favor of a federal thrift charter. (SNL Weekly BankFax, 9/2/97)

Fed Adopts Risk-Based System for Consumer Law Supervision

The Federal Reserve Board of Governors (Fed) has approved a restructuring of its plan to supervise state member banks and foreign banking operations. The new plan, which will be phased in next year, involves a risk-focused compliance system and a re-examination of how often it reviews the banks. Under the program, the Fed will be able to focus more on banks that violate consumer protection laws by evaluating a bank's regulation risk and product risk before a review, and then tailoring the exam to concentrate on the areas that pose the most risk. In addition, banks with "exemplary" compliance records and assets under $250 million will be examined every 36 months instead of every 18 to 24 months. Banks with more than $250 million in assets will now be reviewed every 24 months, and banks with performance problems will be reviewed yearly. (American Bkr., 9/29; SNL Weekly BankFax, 9/29/97)

FDIC Approves Banking Proposal

The Federal Deposit Insurance Corporation (FDIC) has approved a proposal by bank regulators that would allow banks to treat unrealized equity investment gains toward Tier II capital. The proposal, which would affect roughly 600 institutions, links banks' capital cushions to the performance of the financial markets. The FDIC said that 45 percent of pretax unrealized gains on equity securities could be counted as Tier II capital, where banks generally hold loan losses. (American Bkr., 9/17; SNL Weekly BankFax, 9/22/97)

FDIC Seeks Comment on Proposed Real Estate Rule

The Federal Deposit Insurance Corporation (FDIC) has offered for comment a proposal allowing some state-chartered banks and thrifts to engage through subsidiaries in real estate and securities activities authorized under state law without filing formal applications. The rule would establish safety and soundness standards for state bank subsidiaries that engage in real estate activities not permissible for national banks. Additionally, the rule would provide similar treatment for state-chartered institutions by consolidating rules governing bank and thrift activities and investments into a single section of FDIC regulations. (SNL Weekly BankFax, 9/2/97)

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.