Merger Completions

On January 1, Leicester Savings Bank, Leicester, MA merged with Country Bank for Savings, Ware, MA under the charter and title of Country Bank for Savings. As of June 30, 1997, Country Bank for Savings had total deposits of $377.6 million and ranked 40th among all commercial banking and thrift organizations in Massachusetts. As of the same date, Leicester Savings Bank had total deposits of $30.0 million and ranked 230th.

On January 5, New England Community Bancorp, Windsor, CT acquired Community Savings Bank, Bristol, CT. As of June 30, 1997, New England Community Bancorp, parent company of New England Bank and Trust Company, had total deposits of $385.1 million and ranked 26th among all commercial banking and thrift organizations in Connecticut. As of the same date, Community Savings Bank had total deposits of $65.9 million and ranked 73rd.

On January 8, Hubco, Inc., Mahwah, NJ completed its acquisition of Bank of Southington, Southington, CT. As of June 30, 1997, Bank of Southington had total deposits of $122.1 million and ranked 56th among all commercial banking and thrift organizations in Connecticut. As of the same date, Hubco, parent company of Lafayette Bank and Trust Company, Bridgeport, CT, had total deposits of $944.4 million and ranked 12th.

On January 1, Providian National Bank, Concord, NH, a credit card bank, merged with First National Bank, Tilton, NH, under the charter of First Deposit National Bank and the title of Providian National Bank. (Internal Notice, 1/5, 1/12, 1/20; SNL Weekly BankFax, 1/12, 1/20/98)

On January 17, The Savings Institute, Willimantic, CT purchased the Canterbury, CT branch of Chelsea Groton Savings Bank, Norwich, CT with approximately $8.9 million in deposits. As of June 30, 1997, The Savings Institute had total deposits of $250.6 million and ranked 36th among all commercial banking and thrift organizations in Connecticut. As of the same date, Chelsea Groton Savings Bank had total deposits of $428.0 million and ranked 24th. (Internal Notice, 1/20/98)

Eastern Bank Corporation, Lynn, MA has announced that it will open a branch in the Reading, MA, Atlantic FoodMart. As of June 30, 1997, Eastern Bank Corporation, parent company of Eastern Bank, Lynn, MA, had total deposits of $1.7 billion and ranked seventh among all commercial banking and thrift organizations in Massachusetts. (SNL Weekly BankFax, 1/20/98)

On January 2, MECH Financial, Hartford, CT, a new bank holding company, was formed through the acquisition of Mechanics Savings Bank, Hartford, CT. As of June 30, 1997, Mechanics Savings Bank had total deposits of $665.8 million and ranked 15th among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 1/5/98)

Shareholders of Quick , Reilly, Inc., Palm Beach, FL, a discount retail brokerage firm, have approved the company's acquisition by Fleet Financial Group, Boston, MA. The deal is expected to be completed after the close of business on January 30. As of June 30, 1997, Fleet Financial Group had total deposits of $37.2 billion and ranked first among all commercial banking and thrift organizations in New England. (American Bkr., 1/26; SNL Weekly BankFax, 1/26/98)

Hartford Financial Services, Hartford, CT has applied with the Office of Thrift Supervision (OTS) and Federal Deposit Insurance Corporation (FDIC) to operate a unitary thrift holding company to be called Hartford Bank. The new thrift, also to be based in Hartford, CT, would operate as a trust for its customers and would not have deposits or extend loans.

John Hancock Mutual Life Insurance Company, Boston, MA has applied with the OTS for permission to open a federal savings and loan. The company seeks to convert First Signature Bank , Trust Company, Portsmouth, NH, a state-chartered stock trust company, to a federal thrift. The new thrift, to be named John Hancock Bank , Trust and based in Portsmouth, NH, would be able to market John Hancock's services and offer corporate and other types of trusts. (American Bkr., 1/5, 1/20; SNL Weekly BankFax, 1/5, 1/20/98)

The Office of Thrift Supervision (OTS) has simplified disclosure requirements for adjustable rate mortgages. Under the new rule, lenders must disclose information from one of two options. The first option would require creditors to disclose the maximum interest rate and payment for a $10,000 loan and inform borrowers that their periodic payments may fluctuate during the life of the loan. The second would require thrifts to provide a 15-year historical report of how changes in interest rates would have affected payments on a $10,000 loan. Prior to the new rule, thrifts were required to provide both sets of information. (American Bkr., 1/14/98)

The Office of Thrift Supervision (OTS) has proposed removing the notification rule which thrifts must follow when paying cash dividends. If eliminated, savings and loans in good financial condition would no longer need to notify the OTS before paying out cash dividends to shareholders. To be eligible for the proposed filing exemption, a thrift would have to meet several criteria, including receiving strong regulatory ratings and meeting all capital requirements before and after the payments. Thrift subsidiaries of savings and loan holding companies would not qualify for the proposal. (SNL Weekly BankFax, 1/12/98)

The Office of the Comptroller of the Currency (OCC) will weigh applicants' preparations for the year-2000 computer problem before approving requests for bank mergers, new charters, or branch acquisitions. Applicants must prove that the new business will be prepared to begin testing and installing year-2000 fixes by January 1, 1999, or that merging banks' different software systems can be integrated after a transaction. Failure to meet OCC's guidelines could result in denied transactions or imposed deadlines for remedial actions. (American Bkr., 1/26/98)

The Office of Thrift Supervision (OTS) has updated a rule clarifying how federal thrifts manage assets held in trust funds. The final rule allows thrifts that offer trust services to operate the same fiduciary services as other banking organizations in the state in which the thrifts operate. Under the new rule, thrifts have the same powers as banks when it comes to trust activities, and therefore may act as trustee, executor, administrator and investment advisor to certain trust funds. (SNL Weekly BankFax, 1/5/98)

BankBoston Corporation, Boston, MA has completed its joint venture credit card agreement with Bank of Montreal, Toronto, Canada and First Annapolis, Inc., Linthicum, MD. The new entity, to be named Partners First, will be based in Baltimore, MD. BankBoston exchanged its national credit card accounts in the transaction, but retains its regional portfolio. As of June 30, 1997, BankBoston Corporation had total deposits of $32.5 billion and ranked second among all commercial banking and thrift organizations in New England. (Boston Globe, 1/30/98)

The Office of the Comptroller of the Currency (OCC) has announced interim rules that will allow the nation's largest banks to set their own guidelines on how much capital they hold in reserve for certain securities transactions. The rule, which took effect January 1, applies to institutions with trading assets and liabilities exceeding 10 percent of total assets. Under the market risk rules, banks must use internal models to estimate how much they could lose from a specified decline in the value of their securities portfolios. If the models can measure market risk according to OCC standards, banks will be able to set their own limits on reserve capital. In effect, this change could lower banks' capital requirements for securities transactions. (SNL Weekly BankFax, 12/27/97)

The Treasury Department has given banks a three-month extension, until April 1, to comply with relaxed record-keeping requirements on wire transfers. Since 1996, financial institutions have been required to include with any wire transfer of $2,000 or more the name and physical address of the sender. Under the new guidelines, banks with computer systems that cannot accomplish this without expensive reprogramming may send less detailed information provided the data can be retrieved later from bank files. (American Bkr., 1/27/98)

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.