Merger Announcements

On July 31, Banknorth Group, Burlington, VT signed a definitive agreement to acquire Evergreen Bancorp, Glens Falls, NY for approximately $291.2 million in stock. The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed by the end of the year or early in 1999. As of June 30, 1997, Banknorth Group, parent company of First Massachusetts Bank, N.A., Worcester, MA, Howard Bank, Burlington, VT, First Vermont Bank and Trust Company, Brattleboro, VT, Franklin-Lamoille Bank, St. Albans, VT, Farmington National Bank, Farmington, VT, Granite Savings Bank and Trust Company, Barre, VT, and Woodstock National Bank, Woodstock, VT, had total deposits of $2.1 billion and ranked 12th among all commercial banking and thrift organizations in New England. On August 25, Summit Bancorp, Princeton, NJ entered into a definitive agreement to acquire New Canaan Bank and Trust Company, New Canaan, CT for approximately $45.1 million in stock. The transaction, which is subject to regulatory approval, is expected to be completed in the first quarter of 1999. As of June 30, 1997, New Canaan Bank and Trust Company had total deposits of $132.9 million and ranked 53rd among all commercial banking and thrift organizations in Connecticut. Mutual Bancorp of the Berkshires, Pittsfield, MA, parent company of City Savings Bank of Pittsfield, Pittsfield, MA, has entered into a definitive agreement to acquire Lenox Financial Service Corporation, Lenox, MA, parent company of Lenox Savings Bank, Lenox, MA. The resulting institution will be named United Financial Group, Inc. and will be wholly owned by Mutual Bancorp of the Berkshires. As of June 30, 1997, Mutual Bancorp of the Berkshires had total deposits of $233.4 million and ranked 69th among all commercial banking and thrift organizations in Massachusetts. As of the same date, Lenox Financial Service Corporation had total deposits of $88.1 million ranked 152nd. (American Bkr., 8/3, 8/26; N.Y. Times, 8/1, 8/26; SNL Weekly BankFax, 8/3, 8/31/98)

On August 7, UST Corporation, Boston, MA completed its acquisition of Affiliated Community Bancorp, Waltham, 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 same date, Affiliated Community Bancorp, parent company of Federal Savings Bank, Waltham, MA, Lexington Savings Bank, Lexington, MA, and Middlesex Bank and Trust Company, Newton, MA, had total deposits of $677.6 million and ranked 18th. On August 14, Woburn National Bank, Woburn, MA merged with Citizens Bank of Massachusetts, Boston, MA under the charter and title of Citizens Banks of Massachusetts. As of June 30, 1997, Royal Bank of Scotland PLC, Edinburgh, Scotland, parent company of Citizens Bank of Massachusetts, had total Massachusetts deposits of $4.4 billion and ranked fourth among all commercial banking and thrift organizations in the state. As of the same date, Woburn National Corporation, Woburn, MA, parent company of Woburn National Bank, had total deposits of $146.3 million and ranked 109th. On August 14, New England Community Bancorp, Windsor, CT completed its acquisition of Bank of South Windsor, South Windsor, CT. 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 total deposits of $136.6 million and ranked 52nd. On August 21, Hubco, Inc., Mahwah, NJ completed its acquisition of Dime Financial Corporation, Wallingford, CT. As of June 30, 1997, Hubco, Inc., parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total Connecticut deposits of $994.4 million and ranked 12th among all commercial banking and thrift organizations in the state. 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. (Internal Notice, 8/14; SNL Weekly BankFax, 8/10, 8/17, 8/24/98)

On July 30, Banknorth Group, Burlington, VT announced that it will merge subsidiaries Woodstock National Bank, Woodstock, VT and First Vermont Bank, Brattleboro, VT. The transaction, which is subject to regulatory approval, is expected to be completed in the fall. (American Bkr., 8/3; SNL Weekly BankFax, 8/3/98)

On July 10, Mechanics Savings Bank, Hartford, CT purchased two branches from Chase Manhattan Bank, New York, NY. The two branches are located in East Hartford and Farmington, Connecticut and have deposits of approximately $34.1 million. 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. As of the same date, Chase Manhattan Bank, parent company of Chase Manhattan Bank, N.A., New York, NY, had total Connecticut deposits of $1.8 billion and ranked sixth in the state. On August 22, Berkshire Bank, Pittsfield, MA purchased three branches from Fleet National Bank, Springfield, MA. The three branches are located in North Adams and Pittsfield, Massachusetts and have deposits of approximately $78.3 million. As of June 30, 1997, Berkshire Bancorp, Pittsfield, MA, parent company of Berkshire Bank, had total deposits of $542.7 million and ranked 25th among all commercial banking and thrift organizations in Massachusetts. As of the same date, Fleet Financial Group, Boston MA, parent company of Fleet National Bank, had total Massachusetts deposits of $17.0 billion and ranked second in the state. On August 22, Bangor Savings Bank, Bangor, ME purchased five branches from Fleet Bank of Maine, Portland, ME. The five branches are located in Belfast, Bucksport, Castine, Dexter and Searsport, Maine and have deposits of approximately $41.2 million. As of June 30, 1997, Bangor Savings Bank had total deposits of $645.1 million and ranked fourth 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 in the state. (Internal Notice, 7/30, 8/25/98)

Moodus Savings Bank, Moodus, CT has changed its name to Hometown Bank, Moodus, CT. As of June 30, 1997, Moodus Savings Bank had total deposits of $44.9 million and ranked 82nd among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 8/10/98)

Cornerstone Bank, Stamford, CT has approved the formation of a bank holding company to be named Cornerstone Bancorp, Inc. Cornerstone Bank will become a wholly owned subsidiary of the holding company. As of June 30, 1997, Cornerstone Bank had total deposits of $104.4 million and ranked 61st among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 8/24/98)

Peoples Heritage Financial Group, Portland, ME has agreed to purchase Catalano Insurance Agency Incorporation, Methuen, MA and A.D. Davis, Inc., North Conway, NH. Both Catalano and A.D. Davis will become part of Peoples' subsidiary Morse Payson , Noyes Insurance, Portland, ME. As of June 30, 1997, Peoples Heritage Financial Group had total Maine deposits of $2.1 billion and ranked second among all commercial banking and thrift organizations in the state. (American Bkr., 8/18; Boston Globe, 8/26; SNL Weekly BankFax, 8/24/98)

On July 31, BankBoston Corporation, Boston, MA, completed its acquisition of OCA, Uruguay, South America. As of March 14, 1998, OCA SA was Uruguay's largest credit card company with a loan portfolio of $50 million. As of the same date, BankBoston had 14 branches and $700 million in assets in Uruguay. (N.Y. Times 3/14; SNL Weekly BankFax, 8/3/98)

In April, Webster Financial Corporation, Waterbury, CT sold its $31 million Visa portfolio to First USA bank. As of June 30, 1997, Webster Financial Corporation, the parent company of Webster Bank, Waterbury, CT, had total deposits of $4.0 billion and ranked eighth among all commercial banking and thrift organizations in New England. (American Bkr., 8/6/98)

The Federal Deposit Insurance Corporation (FDIC) has made it easier for banks to meet Tier 2 capital requirements. The new rule will allow 45 percent of unrealized equity investment gains to count toward Tier 2 risk-based capital. The rule takes effect October first, but banks may opt in once the final regulation is published in the Federal Register this month. (American Bkr., 8/26/98)

BankBoston Corporation, Boston, MA gained the Federal Reserve Board's approval to acquire BancAmerica Robertson Stephens, San Francisco, CA, the securities subsidiary of BancAmerica Corporation, San Francisco, CA, for approximately $800 million. Robertson Stephens will be combined with BankBoston Securities, Inc. and renamed BancBoston Robertson Stephens. The transaction is expected to be completed on August 31. ((American Bkr., 8/25; Boston Globe, 8/25; N.Y. Times, 8/25/98)

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.