Merger Announcements

Westbank Corporation, West Springfield, MA has entered into a definitive agreement to acquire Cargill Bancorp, Putnam, CT for approximately $5.4 million. The transaction is subject to regulatory and shareholder approvals. As of June 30, 1997, WestBank Corporation, parent company of Park West Bank and Trust Company, West Springfield, MA, had total deposits of $274.4 million and ranked 102nd among all commercial banking and thrift organizations in New England. As of the same date, Cargill Bancorp, parent company of Cargill Bank, Putnam, CT, had total deposits of $43.5 million and ranked 374th. Peoples Heritage Financial Group, Portland, ME has entered into a definitive agreement to acquire SIS Bancorp, Springfield, MA for approximately $428 million in stock. The transaction is subject to regulatory and shareholder approvals. As of June 30, 1997, Peoples Heritage Financial Group, parent company of Peoples Heritage Savings Bank, Portland, ME, Bank of New Hampshire, Manchester, NH, and Family Bank, FSB, Haverhill, MA, had total deposits of $5.6 billion and ranked sixth among all commercial banking and thrift organizations in New England. As of the same date, SIS Bancorp, parent company of Springfield Institution for Savings, Springfield, MA had total deposits of $1.3 billion and ranked 21st. (American Bkr., 7/21; Boston Globe, 7/17, 7/21; N.Y.Times, 7/21/98)

On July 10, New England Community Bancorp, Windsor, CT completed its acquisition of Olde Port Bank , Trust, Portsmouth, NH. Olde Port will operate as an independent subsidiary and the deal will be accounted for as a pooling of interest. As of June 30, 1997, New England Community Bancorp, parent company of New England Bank and Trust Company, Windsor, CT, Equity Bank, Wethersfield, CT, and Community Savings Bank, Bristol, CT, had total deposits of $385.1 million and ranked 70th among all commercial banking and thrift organizations in New England. As of the same date, Olde Port Bank and Trust had total deposits of $36.2 million and ranked 393rd. On July 21, UST Corporation, Boston, MA completed its acquisition of Somerset Savings Bank, Somerville, MA. As of June 30, 1997, UST Corporation, parent company of USTrust, Boston, MA and United States Trust Company, Boston, MA, had total deposits of $2.8 billion and ranked sixth among all commercial banking and thrift organizations in Massachusetts. As of the same date, Somerset Savings Bank had total deposits of $452.1 million and ranked 35th. (SNL Weekly BankFax, 7/13, 7/27/98)

On July 1, 1998, KeyBank, National Association, Bedford, NH merged with KeyBank, National Association, Cleveland, OH under the charter and title of KeyBank, National Association, Cleveland, OH. As of June 30, 1997, KeyCorp, Cleveland, OH, parent company of KeyBank, had total New England deposits of $2.6 billion and ranked 11th among all commercial banking and thrift organizations in the region. (Internal Notice, 7/1/98)

On June 20, First Essex Bank, FSB, Lawrence, MA purchased five branches from Bank of New Hampshire, Manchester, NH. The branches have approximately $159 million in deposits and are located in Concord, Hillsborough, and Manchester, New Hampshire. As of June 30, 1997, Peoples Heritage Financial Group, parent company of Peoples Heritage Savings Bank, Portland, ME, Bank of New Hampshire, Manchester, NH, and Family Bank, FSB, Haverhill, MA, had total deposits of $5.6 billion and ranked sixth among all commercial banking and thrift organizations in New England. As of the same date, First Essex Bancorp, Lawrence, MA, parent company of First Essex Bank, FSB, had total deposits of $744.6 million and ranked 33rd. On June 27, Bangor Savings Bank, Bangor, ME purchased twenty-three branches from Fleet Bank of Maine, Portland, ME. The branches have approximately $183 million in deposits and are located in Calais, Dixfield, Eastport, East Millinocket, Farmington, Hartland, Howland, Jonesport, Kezar Falls, Lincoln, Lisbon, Machias, Madison, Millinocket, Monmouth, North Calais, Rumford, Skowhegan, Unity, Winslow, and Woodland, Maine. As of June 30, 1998, Fleet Financial Group, Boston, MA, parent company of Fleet Bank of Maine, had total Maine deposits of $1.6 billion and ranked third among all commercial banking and thrift organizations in the state. As of the same date, Bangor Savings Bank had total deposits of $645.2 million and ranked fourth. (Internal Notice, 6/30/98)

Camden National Corporation, Camden, ME has signed an agreement to acquire three branches of Fleet Bank of Maine, Portland, ME. The branches have approximately $36 million in deposits and are located in Dover-Foxcroft, Greenville, and Milo, Maine. As of June 30, 1997, Camden National Corporation, parent company of Camden National Bank, Camden, ME, and United Bank, Bangor, ME, had total deposits of $352.5 million and ranked sixth among all commercial banking and thrift organizations in Maine. As of the same date, Fleet Financial Group, Boston, MA, parent company of Fleet Bank of Maine, had total Maine deposits of $1.6 billion and ranked third among all commercial banking and thrift organizations in the state. (SNL Weekly BankFax, 7/6/98)

Investors Financial Services Corporation, Boston, MA, parent company of Investors Bank , Trust Company, Boston, MA, has agreed to buy the domestic institutional custody business of BankBoston Corporation, Boston, MA for approximately $50 million. The transaction, which is subject to regulatory approval, is expected to be completed in the third quarter. (Boston Globe, 7/21; N.Y. Times, 7/21/98)

Bank of New York, New York, NY has entered into an agreement in principle to acquire the trust trusteeship and institutional custody business of Coutts , Company, UK. Coutts is a subsidiary of National Westminster Bank PLC, London, England. (American Bkr., 7/8; N.Y. Times, 7/8; SNL Weekly BankFax, 7/13/98)

Fleet Financial Group, Boston, MA has agreed to acquire approximately $600 million of credit card receivables from Crestar Financial Corporation, Richmond, VA. Fleet will pay an 8 percent premium for the accounts. The deal increases Fleet Financial's charge card receivables to about $15.6 billion. (Boston Globe, 7/10; N.Y. Times, 7/11; SNL Weekly BankFax, 7/13/98)

On July 1, People's Bank, Bridgeport, CT completed its acquisition of R.C. Knox , Co., Hartford, CT, a multi-line insurance agent. As of June 30, 1997, People's Mutual Holdings, Bridgeport, CT, parent company of People's Bank, had total deposits of $5.6 billion and ranked second among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 7/6/98)

A group of New England banks, including BankNorth Group, Burlington, VT, have received federal approval to sell private mortgage reinsurance through a joint venture. The New England Mortgage Insurance Exchange, which is composed of 46 institutions in Vermont, New Hampshire, and Maine, will act as a captive insurer for its members. (SNL Weekly BankFax, 7/6/98)

The Office of the Comptroller of the Currency (OCC) has issued a guide to provide national banks with help in expanding their loan programs for minority-run small businesses. In the letter, the OCC advises banks to learn from the outreach programs that other national banks have successfully developed. (SNL Weekly BankFax, 7/20/98)

Federal banking agencies announced new procedures to make it easier for state-chartered banks to merge, open branches, and seek deposit insurance. Under the new rules, the Federal Deposit Insurance Corporation (FDIC) will process branching applications within 21 days, merger applications in 45 days, and deposit insurance requests in 60 days. Currently, the FDIC tries to process these applications in 30, 60, and 120 days, respectively. Separately, the Federal Reserve Board of Governors (Fed) said it will process branch applications within 20 days and decide within 15 days whether a bank may join the Fed. To qualify for the streamlined application procedures, FDIC- and Fed-regulated banks must have a safety-and-soundness rating of 1 or 2, a "satisfactory" or better Community Reinvestment Act rating, and a 1 or 2 rating for compliance. They also must be well-capitalized and free of enforcement actions. The FDIC and Fed rules are effective October 1. (American Bkr., 7/8/98)

BankBoston Corporation, Boston, MA has signed a definitive agreement to sell its operations in western Massachusetts to BankNorth Group, Burlington, VT for a $52 million premium. The transaction includes approximately $285 million in deposits, ten full-service branches, nine remote electronic banking sites, commercial and consumer loan portfolios, and Private Bank services in Berkshire County. The deal, which is subject to regulatory approval, is expected to be completed in the fall. As of June 30, 1997, BankBoston Corporation had total deposits of $32.4 billion and ranked second among all commercial banking and thrift organizations in New England. As of the same date, BankNorth Group had total deposits of $2.1 billion and ranked 12th. (American Bkr., 7/2; SNL Weekly BankFax, 7/6/98)

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.