Merger Announcement

New England Community Bancorp, Windsor, CT has entered into a definitive agreement to acquire Bank of South Windsor, South Windsor, CT. The transaction, which is expected to be completed in the third quarter, will be accounted for as a pooling of interests. As of June 30, 1997, New England Community Bancorp, parent company of New England Bank and Trust Company, Windsor, CT, and Equity Bank, Wethersfield, CT, had total deposits of $385.1 million and ranked 26th among all commercial banking and thrift organizations in Connecticut. As of the same date, Bank of South Windsor had $136.6 million and ranked 52nd. (SNL Weekly BankFax, 3/23/98)

On February 28, Hibernia Savings Bank, Quincy, MA merged with Eastern Bank, Lynn, MA under the charter and title of Eastern Bank. As of June 30, 1997, Eastern Bank Corporation, Lynn, MA, parent company of Eastern Bank, had total deposits of $1.7 billion and ranked seventh among all commercial banking and thrift organizations in Massachusetts. As of the same date, Emerald Isle Bancorp, Quincy, MA, parent company of Hibernia Savings Bank, had total deposits of $363.5 million and ranked 44th. On March 14, Shirley Co-operative Bank, Shirley, MA merged with Fidelity Co-operative Bank, Fitchburg, MA under the charter and title of Fidelity Co-operative Bank. As of June 30, 1997, Fidelity Co-operative Bank had total deposits of $113.9 million and ranked 135th among all commercial banking and thrift organizations in Massachusetts. As of the same date, Shirley Co-operative Bank had total deposits of $21.1 million and ranked 237th. On March 21, Foxboro National Bank of Foxborough, Foxboro, MA merged with Benjamin Franklin Savings Bank, Franklin, MA under the charter and title of Benjamin Franklin Savings Bank. As of June 30, 1997, Benjamin Franklin Bancorp, Franklin, MA, parent company of Benjamin Franklin Savings Bank, had total deposits of $225.4 million and ranked 75th among all commercial banking and thrift institutions in Massachusetts. As of the same date, Foxboro National Bank had total deposits of $60.1 million and ranked 183rd. (Internal Notice, 3/2, 3/16, 3/23; SNL Weekly BankFax, 3/2/98)

On January 28, Webster Co-operative Bank, Webster, MA changed its name to Hometown Bank, A Co-operative Bank. As of June 30, 1997, Webster Co-operative Bank had total deposits of $34.0 million and ranked 224th among all commercial banking and thrift organizations in Massachusetts. On March 16, North Adams Hoosac Savings Bank, North Adams, MA converted to a stock savings bank and changed its name to Hoosac Bank. As of June 30, 1997, North Adams Hoosac Savings Bank had total deposits of $148.9 million and ranked 106th among all commercial banking and thrift organizations in Massachusetts. (Internal Notice, 3/2, 3/16/98)

On March 16, KeyBank, NA, Cleveland, OH sold thirteen of its Maine branch offices to four community institutions. Kingfield Savings Bank, Kingfield, ME purchased the Madison branch of KeyBank, with approximately $12.9 million in deposits. Sanford Institution for Savings, Sanford, ME acquired the Limerick and West Buxton branches of KeyBank, with combined deposits of approximately $34.6 million. The Camden National Bank, Camden, ME bought the Bucksport, Damariscotta, Vinalhaven, and Wadoboro branches, with deposits of approximately $52.4 million. Skowhegan Savings Bank, Skowhegan, ME purchased the Belgrade, Corrina, Dexter, Fairfield, Livermore Falls, and Norridgwock branches, with $56.5 million in deposits. As of June 30, 1997, KeyCorp, Cleveland, OH, parent company of KeyBank, had total deposits of $2.4 billion and ranked first among all commercial banking and thrift organizations in Maine. As of the same date, Skowhegan Savings Bank had total deposits of $216.8 million and ranked 11th; Sanford Institution for Savings had total deposits of $106.9 million and ranked 28th; KSB Bancorp, Kingfield, ME, parent company of Kingfield Bank, had total deposits of $106.8 million and ranked 29th; and Camden National Corporation, Camden, ME, parent company of Camden National Bank, had total deposits of $352.5 million and ranked sixth. (Internal Notice, 3/16/98)

Mechanics Savings Bank, Hartford, CT has agreed to acquire two Connecticut branches of Chase Manhattan Bank, New York, NY. The West Hartford and East Hartford branches have total deposits of approximately $42.8 million. As of June 30, 1997, Chase Manhattan Corporation, New York, NY, parent company of Chase Manhattan Bank, had total deposits of $1.7 billion and ranked sixth among all commercial banking and thrift organizations in Connecticut. As of the same date, Mechanics Savings Bank had total deposits of $665.8 million and ranked 15th. (American Bkr., 3/23; SNL Weekly BankFax, 3/23/98)

BankBoston Corporation, Boston, MA has entered into an agreement to acquire OCA SA, Uruguay, South America. OCA, a credit card and consumer finance business, is Uruguay's largest credit card company with a loan portfolio of $50 million. BankBoston currently has 14 branches and $700 million in assets in Uruguay. (N.Y. Times, 3/14; SNL Weekly BankFax, 3/16/98)

The Federal Reserve Board of Governors (Fed) has eased the disclosure requirements for brokers at section 20 subsidiaries who are not located in a bank. These brokers will no longer be required to orally disclose that securities offered by the section 20 are not federally insured every time they deal with a retail customer. They still must provide a written disclosure concerning deposit insurance whenever a customer opens an account with the section 20. Brokers located in a bank must continue to make the oral disclosure during every conversation with a customer. (American Bkr., 3/25/98)

The Federal Reserve Board of Governors (Fed) has eased restrictions on bank use of its cash processing system. Banks now have free access to the Fed's cash processing system at up to ten locations anywhere in the country. Previously, banks were only allowed to access the system from sites within their home Federal Reserve Bank district. The change takes effect May 4. (American Bkr., 3/10; SNL Weekly BankFax, 3/16/98)

The Federal Deposit Insurance Corporation (FDIC) has issued additional guidelines for Truth-in-Lending disclosures required for credit life policies and construction loans. For credit life policies issued in conjunction with a loan, banks are required to include premiums in the finance charge unless customers are told in writing that the insurance is optional. Banks must also disclose the premiums and obtain written requests for coverage from customers. (American Bkr., 3/2/98)

The Office of Thrift Supervision (OTS) has approved a rule which allows mutual holding companies it regulates to establish subsidiaries to sell stock and later buy it back without facing a tax penalty. Under the new rule, the subsidiary's power to invest will remain in the hands of the parent company. The subsidiary otherwise will be subject to the same rules that other savings institutions observe. (SNL Weekly BankFax, 3/13/98)

The Federal Deposit Insurance Corporation (FDIC) has approved a rule that will make it easier for banks it regulates to operate overseas. Under the new rule, FDIC-regulated banks that are well run and well capitalized may open additional branches in foreign countries without first applying to the agency. In addition, the agency has eased restrictions on the types of investments their overseas branches may make. The rule also simplifies accounting for fees on international loans and allows a bank's foreign branch to underwrite and trade in the obligations of any foreign government, not just the government of the country where the branch is located. (American Bkr., 3/25/98)

The Federal Reserve Board of Governors (Fed) has issued an interim rule to let banks deliver account statements and other mandatory disclosures electronically if the customer agrees. The new rule, which went into effect March 20, would not require financial institutions to provide paper copies of the disclosures. (American Bkr., 3/16; SNL Weekly BankFax, 3/23/98)

The Federal Reserve Board of Governors (Fed) has amended Regulation D, making it easier for banks to meet reserve requirements. Under the new rule, effective July 30, banks will have two weeks to compute their required reserves before they have to maintain that level. Currently, banks have only two days to calculate required reserves. (American Bkr., 3/27/98)

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.