Merger Completions

On December 31, Banknorth Group, Burlington, VT, completed its acquisition of Evergreen Bancorp, Inc., Glen Falls, NY. As of June 30, 1998, Banknorth Group, parent company of Howard Bank, Burlington, VT; First Massachusetts Bank, Worcester, MA; First Vermont Bank and Trust Company, Brattleboro, VT; Franklin-Lamoille Bank, St. Albans, VT; Farmington National Bank, Farmington, NH; Granite Savings Bank and Trust Company, Barre, VT; and Woodstock National Bank, Woodstock, VT, had total deposits of $2.3 billion and ranked 12th among all commercial banking and thrift organizations in New England. On January 1, Springfield Institution for Savings, Springfield, MA, merged with Family Bank, FSB, Haverhill, MA, under the charter and title of Family Bank, FSB. As of June 30, 1998, Peoples Heritage Financial Group, Portland, ME, parent of Family Bank, FSB, Bank of New Hampshire, Manchester, NH, and Peoples Heritage Savings Bank, Portland, ME, had total deposits of $7.0 billion and ranked the fifth among all commercial banking and thrift organizations in New England. As of the same date, SIS Bancorp, Springfield, MA, parent company of Springfield Institution for Savings and Glastonbury Bank and Trust Company, Glastonbury, CT, had total deposits of $1.4 billion and ranked 19th. On January 19, Livermore Falls Trust Company, Livermore Falls, ME merged with Androscoggin Savings Bank, Lewiston, ME, under the charter and title of Androscoggin Savings Bank. As of June 30, 1998, Livermore Bankshares, Livermore Falls, ME, parent company of Livermore Falls Trust Company, had total deposits of $54.7 million and ranked 35th among all commercial banking and thrift organizations in Maine. As of the same date, Androscoggin Bancorp, Lewiston, ME, parent company of Androscoggin Savings Bank, had total deposits of $222.9 million and ranked 12th. (Internal Notice, 1/27; SNL Weekly BankFax, 1/11/99)

On January 5, HUBCO, Inc., Mahwah, NJ, entered a definitive agreement to acquire the Hartford, CT branch of First National Bank of New England, Hartford, CT, for an undisclosed amount. The branch has approximately $150 million in deposits. The transaction, which is subject to regulatory approval, is expected to be completed in the first quarter. As of June 30, 1998, First International Bancorp, Inc., Hartford, CT, parent company of First National Bank of New England, had total deposits of $200.4 million and ranked 39th among all commercial banking and thrift organizations in Connecticut. As of the same date, HUBCO, Inc., parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total Connecticut deposits of $1.0 billion and ranked 11th. (SNL Weekly BankFax, 1/11/99)

On January 8, Central Co-operative Bank, Somerville, MA, completed its holding company reorganization. Under the plan, the bank will become a subsidiary of the newly formed Massachusetts holding company Central Bancorp, Inc., Somerville, MA. As of June 30, 1998, Central Co-operative Bank had total deposits of $280.9 million and ranked 61st among all commercial banking and thrift organizations in Massachusetts. On January 16, Androscoggin Bancorp, Inc., Lewiston, ME, a new bank holding company, was formed through the reorganization of Androscoggin Savings Bank, Lewiston, ME. As of June 30, 1998, Androscoggin Savings Bank had total deposits of $222.9 million and ranked 12th among all commercial banking and thrift organizations in Maine. (Internal Noticet, 1/22; SNL Weekly BankFax, 1/11/99)

On January 31, First National Bank of New England, Hartford, CT, a subsidiary of First International Bancorp, Hartford, CT, changed its name to First International Bank NA. On January 5, First International Bank of New England announced that it has formed a strategic alliance with discount brokerage firm CIGNA Financial Services, Hartford, CT. CIGNA will open centers displaying product information and investment education materials at First National offices, and market the products to bank clients. (SNL Weekly BankFax, 1/11/99)

On January 7, Chase Manhattan S.A., a subsidiary of Chase Manhattan Corporation, New York, NY, agreed to acquire substantially all of the business of Banco Patrim?nio de Investimento S.A., Sao Paulo, Brazil, from Patrim?nio Participa??es for an undisclosed amount. Terms of the transaction were not disclosed. Under the terms of the agreement, the combination will operate under the name Banco Chase Manhattan S.A. and will include all of Patrim?nio's capabilities in corporate advisory, asset management, and capital markets. The transaction, which is subject to regulatory approval, is expected to close in the first quarter of 1999. (American Bkr., 1/8; SNL Weekly BankFax, 1/11/99)

Citigroup, Inc., New York, NY, has reorganized its derivatives unit to combine the businesses of its Citibank banking and Salomon Smith Barney brokerage divisions. The company created a derivatives capital group, which will structure derivatives and serve as a link between traders and investment bankers. (N. Y. Times, 1/22/99)

On January 13, FirstFed America Bancorp, Inc., Fall River, MA, created subsidiary FirstFed Insurance Agency LLC. The new subsidiary will offer a comprehensive line of insurance products including auto, home, life, accident, and health insurance, beginning on March 30. (SNL Weekly BankFax, 1/18/99)

On January 4, The Bank of New York Company, Inc., New York, NY, announced the formation of a new brokerage unit, BNY ESI International, London, England. Its establishment follows a series of steps by The Bank of New York Company, Inc., to capitalize on its strengths as a leading provider of securities processing services. BNY ESI International was created as the Bank's international brokerage arm with the ability to execute and clear trades in over 40 international markets, thereby positioning itself to provide seamless integration of trade management services with bank securities processing services on a global basis. BNY ESI International will operate as a division of Bank of New York Capital Markets Limited, an SFA-registered subsidiary of The Bank of New York in London. (SNL Weekly BankFax, 1/11/99)

On January 11, Chase Manhattan Bank, a subsidiary of Chase Manhattan Corporation, New York, NY, sold its Mexican credit card portfolio to Grupo Financiero Banorte for approximately 700 million pesos. Grupo Financiero Banorte is the fifth largest bank in Mexico. (American Bkr., 1/21; SNL Weekly BankFax, 1/18/99)

On January 15, Mellon Bank Corporation, Pittsburgh, PA, announced that it will seek buyers for its mortgage, credit card, and transaction processing businesses. However, it will keep its jumbo mortgage loan business. Proceeds from the divestitures will be invested in other core businesses at the bank. The sales would eliminate approximately $3.5 billion in higher-risk loans and mortgage servicing rights and allow the bank to concentrate on higher-growth businesses. (American Bkr., 1/19; SNL Weekly BankFax, 1/18/99)

On January 25, the Office of the Comptroller of the Currency (OCC) issued guidelines designed to reduce bank losses on emerging markets trading and loans to hedge funds. The guidelines, which build on advice issued in October of 1993, are divided into five sections covering the management of price risk, credit risk, transaction risk, compliance risk, and corporate risk oversight. The majority of the bulletin is devoted to price and credit risk management of financial derivatives. (American Bkr., 1/26/99)

On January 19, the Office of Thrift Supervision (OTS) nullified a regulation enacted in 1990 after the saving and loan crisis. Under the new regulation, OTS will no longer require healthy thrifts to get approval to pay cash dividends. Thrifts with low regulatory ratings would need the agency's approval to pay dividends, but could file one-year plans, instead of seeking permission each quarter. The OTS action puts thrifts on par with commercial banks. The new regulation will take effect on April 1. (American Bkr., 1/20/99)

The Federal Reserve Board of Governors (Fed) has relaxed collateral requirements for loans partially secured by banking company obligations. It will no longer subject the total amount of these loans to section 23a of the Federal Reserve Act, which imposes strict collateral requirements and limits the total dollar amount of these types of credits. Under the new policy, the lender would determine the market value of all securities pledged as collateral. It then would deduct the value of government and corporate securities from the loan amount. The remaining amount of the loan would be secured by the bank affiliate securities and would be subject to section 23a. (American Bkr., 1/25/99)

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.