Merger Announcement

Summit Bancorp, Princeton, NJ has signed a definitive agreement to acquire NSS Bancorp, Norwalk, CT for approximately $150.2 million. The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed in the fourth quarter. As of June 30, 1997, NSS Bancorp, parent company of Norwalk Savings Society, Norwalk, CT, had total deposits of $435.0 million and ranked 23rd among all commercial banking and thrift organizations in Connecticut. (N.Y. Times, 6/19; SNL Weekly BankFax, 6/22/98)

On June 12, Haymarket Co-operative Bank, Boston, MA merged with Century Bank , Trust Company, Medford, MA under the charter and title of Century Bank , Trust Company. As of June 30, 1997, Century Bancorp, Somerville, MA, parent company of Century Bank , Trust Company, had total deposits of $463.7 million and ranked 33rd among all commercial banking and thrift organizations in Massachusetts. As of the same date, Haymarket Co-operative Bank had total deposits of $135.8 million and ranked 119th. (Internal Notice, 6/12; SNL Weekly BankFax, 6/15/98)

Shareholders of Somerset Savings Bank, Somerville, MA and Affiliated Community Bancorp, Waltham, MA have approved the proposed acquisition by UST Corporation, Boston, MA. The deals are expected to be completed in the third quarter. 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. As of the same date, Affiliated Community Bancorp, parent company of Federal Savings Bank, Waltham, MA, Lexington Savings Bank, Lexington, MA, and Middlesex Bank , Trust, Newton, MA, had total deposits of $677.6 million and ranked 18th among all commercial banking and thrift organizations in Massachusetts. Shareholders of Olde Port Bank , Trust Company, Portsmouth, NH have approved the company's acquisition by New England Community Bancorp, Windsor, CT. The transaction, which is expected to be completed July 10, will be accounted for as a pooling of interest. Olde Port will operate as an independent subsidiary. 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 , Trust had total deposits of $36.2 million and ranked 393rd. (Boston Globe, 6/4; SNL Weekly BankFax, 6/8, 6/29/98)

On June 15, 1998, Horizon Bank , Trust Company, Braintree, MA commenced operations. This institution is a state-chartered commercial bank and trust company. (Boston Globe, 6/16; Internal Notice, 6/15/98)

Hubco, Inc., Mahwah, NJ has completed its acquisition of eight Connecticut branches of First Union Corporation, Charlotte, NC. As of June 30, 1997, Hubco, parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total Connecticut deposits of $944.4 million and ranked 12th among all commercial banking and thrift organizations in the state. As of the same date, First Union Corporation, parent company of First Union Bank of Connecticut, Stamford, CT, had total Connecticut deposits of $4.2 billion and ranked third. (SNL Weekly BankFax, 6/29/98)

BankBoston Corporation, Boston, MA has signed a definitive agreement to acquire BancAmerica Robertson Stephens, San Francisco, CA, the investment banking subsidiary of BankAmerica Corporation, San Francisco, CA. BankBoston will pay $400 million in cash for the firm and the subsidiary will be renamed BancBoston Robertson Stephens. The transaction, which is subject to regulatory approval, is expected to be completed in the fourth quarter. (Boston Globe, 5/29, 5/30; N.Y. Times, 5/29, 5/30/98)

State Street Corporation, Boston, MA has entered into a definitive agreement to acquire Askari Inc., New York, NY, a risk-management advisory firm. As of June 30, 1997, State Street Corporation had total deposits of $11.1 billion and ranked fourth among all commercial banking and thrift organizations in New England. (American Bkr., 6/4; Boston Globe, 6/2; SNL Weekly BankFax, 6/8/98)

Essex Savings Bank, Essex, CT has signed an agreement in principle to acquire a 60 percent stake in John W. Rafal , Associates, Essex, CT. John W. Rafal is an investment adviser. The transaction is subject to regulatory approval. As of June 30, 1997, Essex Savings Bank had total deposits of $118.8 million and ranked 57th among all commercial banking and thrift organizations in Connecticut. (American Bkr., 6/2; SNL Weekly BankFax, 6/1/98)

Hoosac Bank, North Adams, MA has entered into a definitive agreement to acquire Coakley, Pierpan, Dolan , Collins Insurance Agency, North Adams, MA and True North Financial Services, North Adams, MA. Terms of the transactions were not disclosed. (SNL Weekly BankFax, 6/8/98)

SIS Bancorp, Springfield, MA has agreed to sell its Colebrook Realty Services subsidiary to B. John Dill, the subsidiary's current president. Terms of the agreement were not disclosed. The thrift is selling its real estate subsidiary in order to comply with FDIC regulations. (SNL Weekly BankFax, 6/22/98)

On June 1, BankBoston Corporation, Boston, MA sold its document-custody business to Banc One Corporation, Columbus, OH for an undisclosed amount. (SNL Weekly BankFax, 6/8/98)

KeyCorp, Cleveland, OH has agreed to acquire McDonald , Company, Cleveland, OH for approximately $653 million in stock. With assets under management of more than $5 billion, McDonald , Company provides regional investment banking, brokerage, and investment advisory services through its McDonald , Company Securities subsidiary. (American Bkr., 6/22; Boston Globe, 6/16; N.Y. Times, 6/16/98)

State Street Global Advisors, Boston, MA, a subsidiary of State Street Corporation, Boston, MA, has purchased a majority stake in Boston Capital Management Inc., Boston, MA. Boston Capital is the sole owner of Pallada Asset Management, Moscow, Russia. Pallada manages two investment trusts with combined assets of $50 million and a Russian government-sponsored fund established for victims of fraudulent investment schemes. Terms of the agreement were not disclosed. (Boston Globe, 6/11; SNL Weekly BankFax, 6/15/98)

BancBoston Capital, Boston, MA, a subsidiary of BankBoston Corporation, Boston, MA, has agreed to acquire Langston Corporation, Cherry Hill, NJ for $50 million. A maker of machinery for the corrugated-board industry, Langston is currently owned by Molins PLC, London, England and has annual sales of $110 million. (Boston Globe, 6/10/98)

The Federal Reserve Board of Governors (Fed) has adopted a new rule to allow a greater number of healthy bank holding companies to hold capital equal to 3 percent of total assets to meet the Tier I requirement. Banks that are not considered healthy by regulators will have to count 4 percent of their total assets as Tier I capital in order to comply with the new rule. Under the old rule, only the top-rated banks could meet the requirement with 3 percent. (SNL Weekly BankFax, 6/8/98)

The Office of the Comptroller of the Currency (OCC) has ordered all national banks to fill out a survey of their Year 2000 compliance efforts. The survey, which is due at the end of June, is designed to help the banks compare their efforts with those of their peers, while enabling the OCC to determine which institutions need increased supervision. (American Bkr., 6/3; SNL Weekly BankFax, 6/8/98)

As of September 1, Massachusetts state-chartered banks will be allowed to sell insurance and annuity products. Banks will only be able to sell insurance through licensed agents working in offices that are separate from main banking operations. Their national bank competitors already have the ability to sell insurance. The law includes consumer safeguards which prohibit a bank from conditioning credit upon the purchase of insurance and require banks to wait until after a credit application has been approved before soliciting a customer to buy insurance. (Boston Globe, 5/28/98)

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.