Merger Announcements

Citizens Financial Group, Providence, RI has entered into a definitive agreement to acquire Woburn National Corporation, Woburn, MA for $45 million in cash. The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed in the third quarter. As of June 30, 1997, Royal Bank of Scotland PLC, Edinburgh, Scotland, parent company of Citizens Financial Group, had total deposits of $4.4 billion and ranked fourth among all commercial banking and thrift organizations in Massachusetts. As of the same date, Woburn National Corporation, parent company of Woburn National Bank, Woburn, MA had total deposits of $146.3 million and ranked 109th.

Hubco, Inc., Mahwah, NJ has entered into a definitive agreement to a acquire Dime Financial Corporation, Wallingford, CT. The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed in the third quarter. As of June 30, 1997, Hubco, parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total deposits of $944.4 million and ranked 12th among all commercial banking and thrift organizations in Connecticut. As of the same date, Dime Financial Corporation, parent company of Dime Savings Bank of Wallingford, Wallingford, CT, had total deposits of $755.6 million and ranked 14th. (American Bkr., 4/1; Boston Globe, 4/8; N.Y. Times, 4/8; SNL Weekly BankFax, 4/6, 4/13/98)

Merger Completions

On April 11, The Orange Savings Bank, Orange, MA and Safety Fund National Bank, Fitchburg, MA merged with Family Bank, FSB, Haverhill, MA under the charter and title of Family Bank FSB. Also on April 11, CFX Bank, Keene, NH merged with Bank of New Hampshire, Manchester, NH under the charter and title of Bank of New Hampshire. As of June 30, 1997, Peoples Heritage Financial Group, Portland, ME, parent company of Peoples Heritage Savings Bank, Portland, ME, Bank of New Hampshire, and Family Bank FSB, had total deposits of $4.3 billion and ranked sixth among all commercial banking and thrift organizations in New England. As of the same date, CFX Corporation, Keene, NH, parent company of CFX Bank, Safety Fund National Bank, and Orange Savings Bank, had total deposits of $1.3 billion and ranked 20th. On April 16, Eagle Bank, Bristol, CT merged with Webster Bank, Waterbury, CT under the charter and title of Webster Bank. As of June 30, 1997, Webster Financial Corporation, Waterbury, CT, parent company of Webster Bank, had total deposits of $4.0 billion and ranked fourth among all commercial banking and thrift organizations in Connecticut. As of the same date, Eagle Financial Corporation, Bristol, CT had total deposits of $1.4 billion and ranked eighth. (Internal Notice, 4/13, 4/17; SNL Weekly BankFax, 4/20/98)

Hubco, Inc., Mahwah, NJ has agreed to buy eight Connecticut branches of First Union Corporation, Charlotte, NC. The transaction is expected to close in the third quarter. As of June 30, 1997, Hubco, parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total deposits of $944.4 million and ranked 12th among all commercial banking and thrift organizations in Connecticut. As of the same date, First Union Corporation, parent company of First Union Bank of Connecticut, Stamford, CT, had total deposits of $4.2 billion and ranked third. (American Bkr., 3/3; SNL Weekly BankFax, 3/9/98)

Atlantic Bank and Trust Company, Boston, MA has signed a definitive agreement to acquire the operating assets of Forrest Holdings, Lisle, IL, parent company of Forrest Financial, Lisle, IL and Moberly Leasing Company, Moberly, MO, a small-ticket leasing company. The transaction, which is subject to regulatory approval, is expected to be completed in May. (SNL Weekly BankFax, 4/20/98)

CFX Corporation, Keene, NH intends to sell five New Hampshire branches as a condition of its merger with Peoples Heritage Financial Group, Portland, ME. The branches, which have approximately $159 million in deposits and are located in Manchester, Concord, and Hillsborough will be sold to First Essex Bancorp, Lawrence, MA. 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 New Hampshire deposits of $1.6 billion and ranked third among all commercial banking and thrift organizations. As of the same date, CFX Corporation, parent company of CFX Bank, Keene, NH, Safety Fund National Bank, Fitchburg, MA, and Orange Savings Bank, Orange, MA, had total New Hampshire deposits of $918.0 million and ranked fourth. As of the same date, First Essex Bancorp, parent company of First Essex Bank FSB, Lawrence, MA, had total New Hampshire deposits of $242.7 million and ranked 12th. (American Bkr., 4/1/98)

Fleet Bank of Maine, Portland, ME has entered into a definitive agreement to sell 31 Maine branches to Bangor Savings Bank, Bangor, ME. The branches have approximately $292.8 million in deposits. The transaction, which is subject to regulatory approval, is expected to be completed in July. As of June 30, 1998, Fleet Financial Group, Boston, MA, parent company of Fleet Bank of Maine, had total deposits of $1.6 billion and ranked third among all commercial banking and thrift organizations in Maine. As of the same date, Bangor Savings Bank had total deposits of $645.2 million and ranked fourth. (American Bkr., 4/6; SNL Weekly BankFax, 4/6/98)

Boston Private Bancorp, Boston, MA has changed its name to Boston Private Financial Holdings. As of June 30, 1997, Boston Private Bancorp, parent company of Boston Private Bank and Trust Company, Boston, MA, had total deposits of $236.5 million and ranked 66th among all commercial banking and thrift organizations in Massachusetts. (SNL Weekly BankFax, 4/27/98)

Atlantic Bank and Trust Company, Boston, MA has completed its acquisition of eight loan portfolios with a total value of $67.3 million. The company paid a total price of $57.6 million for the loans, which are primarily performing and secured principally by commercial real estate in New England, New York, and California. (SNL Weekly BankFax, 4/6/98)

Bank of New York, New York, NY has withdrawn its application from the Federal Reserve Board of Governors to acquire a 9.99 percent stake in State Street Corporation, Boston, MA. The application was originally filed over a year ago. (SNL Weekly BankFax, 4/20/98)

BankBoston Corporation, Boston, MA has entered into a definitive agreement to sell its document custody business to Banc One Corporation, Columbus, OH for an undisclosed amount. The transaction is expected to be completed in the second quarter. (Boston Globe, 4/14; SNL Weekly BankFax, 4/20/98)

State Street Corporation, Boston, MA has opened its first South American office in Santiago, Chile. The new office will provide specialized financial services, including national pension asset management, global custody, foreign exchange, and securities lending. SNL Weekly BankFax, 4/6/98)

The Office of the Comptroller of the Currency (OCC) has officially cleared the way for national banks to refer customers to independent insurance agents in small communities. Prior to the ruling, banks had either to sell insurance through local agencies or establish such agencies themselves. While many banks already refer customers through the use of mailing lists, the ruling codifies the practice, and establishes guidelines for how banks and agents should divide sales commissions. (SNL Weekly BankFax, 4/27/98)

Fleet Financial Group, Boston, MA has introduced Storefronts@Fleet, a new Internet service targeting small business customers. The service allows small businesses to accept payments over the Internet and create websites containing ordering and product information. The bank will register the web addresses with various Internet search engines, in addition to providing technical support for the sites. (SNL Weekly BankFax, 4/6/98)

Comerica Bank Midwest, NA, Detroit, MI has sold $190 million of credit card receivables to Partners First Holdings, a credit card venture formed by BankBoston Corporation, Boston, MA, Bank of Montreal, Montreal, Canada, and First Annapolis Consulting, Linthicum, MD. (SNL Weekly BankFax, 4/20/98)

The Office of Thrift Supervision (OTS) has proposed a plan that would prevent U.S. savings and loans from buying securities for cash from some of their divisions while agreeing to sell the securities back later at a higher price. Such transactions, known as reverse repurchase agreements, are in effect a loan of money to the other entity. Under the Home Owners' Loan Act, thrifts are not allowed to engage in making loans to their non-financial affiliates. (SNL Weekly BankFax, 4/20/98)

The Federal Deposit Insurance Corporation (FDIC) announced that banks are making too many errors on Truth-in-Lending disclosures required for credit life policies and construction loans. On February 25, the FDIC issued additional guidance to alleviate the problem. For credit policies issued in conjunction with a loan, banks must 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., 3/27/98)

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.