Merger Announcement

On June 30, Webster Financial Corporation, Waterbury, CT, signed a definitive agreement to acquire New England Community Bancorp, Inc., Windsor, CT. As of June 30, 1998, Webster Financial Corporation had total deposits of $5.8 billion and ranked seventh among all commercial banking and thrift institutions in New England. As of the same date, New England Community Bancorp, Inc., had total deposits of $676 million and ranked 35th. The transaction, which is subject to regulatory and shareholder approval, is expected to be completed in the fourth quarter. (SNL Weekly BankFax, 7/6/99)

On July 1, Andover Bank New Hampshire, Salem, NH, merged with Andover Bank, Andover, MA, under the charter and title of Andover Bank. As of June 30, 1998, Andover Bancorp, Inc., parent company of Andover Bank New Hampshire and Andover Bank, had total deposits of $78.8 million and ranked 28th among all commercial banking and thrift institutions in New Hampshire. On July 17, Keystone Trust Company, Portsmouth, NH, merged with First Union National Bank, Charlotte, NC, under the charter and title of First Union National Bank. As of June 30, 1998, First Union Corporation, Charlotte, NC, the parent company of First Union National Bank, had total New England deposits of $4 billion and ranked ninth among all commercial banking and thrift institutions in New England. (Internal Notice 7/7; 7/19/99)

On July 1, Atlantic Bank of New York, New York, NY, acquired two branches from parent company National Bank of Greece, Athens, Greece. The two branches are located in Boston and Cambridge, MA, and have approximately $40.3 million in deposits. As of June 30, 1998, National Bank of Greece had total Massachusetts deposits of $49.5 million and ranked 195th among all commercial banking ind thrift institutions in Massachusetts. On July 1, First International Bank, NA, Hartford, CT, converted to a state-chartered, non-member bank and trust company under the new title of First International Bank. (Internal Notice 7/23; 7/2/99)

On July 1, Ipswich Savings Bank, Ipswich, MA, formed a new holding company named Ipswich Bancshares Inc. As of June 30, 1998, Ipswich Savings bank had total deposits of $177.1 million and ranked 89th among all commercial banking and thrift institutions in Massachusets. (SNL Weekly BankFax, 6/21/99)

On July 1, NYCE Corporation, Woodcliff Lake, NJ, completed the acquisition of Magic Line, Inc., Dearborn, MI. Both NYCE Corporation and Magic Line, Inc. offer electronic fund transfer services. (SNL Weekly BankFax, 7/6/99)

On July 1, Patriot National Bank, Stamford, CT, acquired mortgage bank Pinnacle Financial Corporation, Greenwich, CT, for $1.5 million in cash and stock. (SNL Weekly BankFax, 7/6/99)

On July 12, Webster Financial Corporation, Waterbury, CT, formed the unit Webster Investment Services Inc. to offer mutual funds and fixed variable annuities. (SNL Weekly BankFax, 7/19/99)

On July 22, General Motors Acceptance Corporation, Detroit, MI, acquired BNY Factoring LLC, a unit of Bank of New York Company, Inc., New York, NY, for approximately $1.8 billion in cash. (SNL Weekly BankFax, 7/26/99)

On July 15, State Street Bank and Trust Company, Boston, MA, entered into alliance with the Development Bank of Singapore Ltd. (DBS) to provide services to the unit trust marketplace in Singapore. Under the terms of the agreement, State Street Bank and Trust Company will provide unit trusts with global custody and fund accounting services. DBS will provide trustee, administration, and registrar services. (American Bkr., 7/19/99)

On July 15, Stoneham Savings Bank, Stoneham, MA, agreed to acquire insurance brokers Robert F. O'Neill Insurance Agency, Inc., and W.G. Leavitt & Son Insurance Agency, Inc. for undisclosed amounts. The insurance brokers are located in Stoneham, MA, and will be combined to form the unit Leavitt & O'Neill Insurance Agency. The transaction, which is subject to regulatory approval, is expected to be completed by late October.On July 15, Stoneham Savings Bank, Stoneham, MA, agreed to acquire insurance brokers Robert F. O'Neill Insurance Agency, Inc., and W.G. Leavitt & Son Insurance Agency, Inc. for undisclosed amounts. The insurance brokers are located in Stoneham, MA, and will be combined to form the unit Leavitt & O'Neill Insurance Agency. The transaction, which is subject to regulatory approval, is expected to be completed by late October. (SNL Weekly BankFax, 7/19/99)

On July 20, PNC Bank Corporation, Pittsburgh, PA, agreed to acquire mutual fund servicing company First Data Investor Services Group from First Data Corporation, Atlanta, GA, for $1.1 billion in cash. The transaction, which is subject to regulatory approval, is expected to be completed in the fourth quarter. (SNL Weekly BankFax, 7/26/99)

On July 22, Bank of New York Company, New York, NY, completed its acquisition of the corporate trust business of LTCB Trust Company, New York, NY, for an undisclosed amount. (SNL Weekly BankFax, 7/26/99)

On July 1, the Federal Reserve Board of Governors (Fed) issued a supervisory letter to emphasize the growing need for large and complex banking organizations to maintain strong internal processes to guarantee that their capital is fully sufficient to support the underlying risks they face as well as to meet minimum regulatory requirements. The supervisory letter directs examiners to evaluate internal management processes. (SNL Weekly BankFax, 7/6/99)

The Federal Reserve Board of Governors (Fed), Office of the Comptroller of the Currency (OCC) , Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) have issued a joint policy statement regarding branch closings by insured depository institutions. The policy clarifies additional statutory steps regarding branch closings by interstate banks in low- or moderate-income areas. The policy statement also clarifies the status of ATMs, relocations and consolidations, and branch closings in connection with emergency acquisitions or assistance by FDIC. (SNL Weekly BankFax, 7/12/99)

On July 20, the Federal Reserve Board of Governors (Fed) created the Payments System Development Committee to advise the Board and System officials on medium- and long-term public policy issues surrounding developments in the retail payments system. (SNL Weekly BankFax, 7/26/99)

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.