Merger Completions

On May 28, Chittenden Corporation, Burlington, VT, completed its acquisition of Vermont Financial Services, Brattleboro, VT. As of June 30, 1998, Chittenden Corporation had total deposits of $1.7 billion and ranked 16th among all commercial banking and thrift organizations in New England. As of the same date, Vermont Financial Services had total deposits of $1.7 billion and ranked 17th. On June 4, Deutsche Bank A.G., Germany, completed its acquisition of Bankers Trust Corporation, New York, NY. Bankers Trust Corporation will operate under the title of Deutsche Bank A.G. (SNL Weekly Bank Fax, 6/1; 6/7/99)

On June 2, Peoples Heritage Financial Group, Portland, ME, signed a definitive agreement to acquire BankNorth Group Inc., Burlington, VT, which will create the third largest financial institution in New England. The deal is expected to be completed in the fourth quarter, with integration to take place in April or May of 2000. As of June 30, 1998, Peoples Heritage Financial Group had total deposits of $8.4 billion and ranked fifth among all commercial banking and thrift institutions in New England. As of the same date, BankNorth Group, Inc. had total deposits of $2.6 billion and ranked 11th. On June 16, Florence Savings Bank, Florence, MA, signed a definitive agreement to acquire Easthampton Co-operative Bank , Easthampton, MA, for an undisclosed amount. The transaction is subject to regulatory approval. As of June 30, 1998, Florence Savings Bank had total deposits of $314.7 million and ranked 48th among all commercial and banking institutions in Massachusetts. As of the same date, Easthampton Co-operative Bank had total deposits of $9.1 million and ranked 230th. On June 21, Citizens Financial Group, Inc., Providence, RI, signed a definitive agreement to acquire UST Corporation, Boston, MA, for $1.4 billion in cash. The deal will make Citizens Financial Group, Inc. the second largest bank in New England. The transaction, which is subject to regulatory approval, is expected to be completed by January of 2000. As of June 30, 1998, the Royal Bank of Scotland Group Plc., Edinburgh, Scotland, parent company of Citizens Financial Group, Inc., had total deposits of $14 billion and ranked third among all commercial banking and thrift institutions in New England. As of the same date, UST Corporation had total deposits of $4.16 billion and ranked eighth. (Boston Globe, 6/21; SNL Weekly Bank Fax, 6/7; 6/28/99)

On May 25, Factory Point Bancorp, Manchester Center, VT, completed its acquisition of the Rutland, VT, branch of Vermont National Bank, Brattleboro, VT, for an undisclosed amount of cash. The transaction is related to the branch divestiture required by federal regulators as part of Chittenden's acquisition of Vermont Financial Services, Brattleboro, VT. The transaction, which is subject to regulatory approval, is expected to be completed in the first quarter of 2000. As of June 30, 1998, Factory Point Bancorp had total deposits of $131.9 million and ranked 11th among all commercial and thrift organizations in Vermont. As of the same date, Vermont Financial Services Corporation, Brattleboro, VT, parent company of the Vermont National Bank, had total deposits of $1.3 billion and ranked second. (SNL Weekly Bank Fax, 6/1/99)

On June 17, shareholders of PierBank, Inc., Narragansett, RI, approved the bank's acquisition by Washington Trust Bancorp Inc., Westerly, RI. As of June 30, 1998, PierBank had $47.8 million in total deposits and ranked 13th among all commercial banking and thrift institutions in Rhode Island. As of the same date, Washington Trust Bancorp, Inc. had total deposits of $532.8 million and ranked fourth. (SNL Weekly Bank Fax, 6/21/99)

On May 3, Marlborough Co-operative Bank, Marlborough, MA, completed its holding company reorganization. Under the plan, the bank formed a mutual bank holding company named Marlborough Bancorp. As of June 30, 1998, Marlborough Co-operative Bank had total deposits of $60.9 million and ranked 179th among all commercial banking and thrift organizations in Massachusetts. (Internal Notice, 5/21/99)

On June 7, 1999, Centrix Bank and Trust, Bedford, NH, commenced banking operations. The new institution is a state-chartered, depository bank. (Internal Notice, 6/14/99)

On April 15, Bank of Woodstock, Woodstock, VT, changed its title to First Community Bank. As of June 30, 1998, Bank of Woodstock had total deposits of $23.8 million and ranked 22nd among all commercial banking and thrift institutions in Vermont. (Internal Notice, 6/17/99)

On June 16, Bisys Group, Little Falls, NJ, completed its acquisition of Retained Asset Account Services, a division of State Street Corporation, Boston, MA. Terms of the transaction were not disclosed. The transaction fits with State Street's shift in focus to institutional customers. Just a month ago, State Street announced a plan to sell its commercial and consumer banking operations to Citizens Financial Group, Providence, RI. As of June 30, 1999, State Street Bank Corporation, parent company of State Street Bank and Trust Company, had total deposits of $12.6 billion and ranked fourth among all commercial banking and thrift institutions in New England. (American Banker, 6/17; SNL Weekly Bank Fax 6/21/99)

On June 1, UST Corporation, Boston, MA, completed its acquisition of independent insurance agency Brewer & Lord, Norwell, MA, for an undisclosed amount. Brewer & Lord is one of the largest independent insurance firms in New England. (SNL Weekly Bank Fax, 6/7/99)

On June 18, Nutmeg Federal S&L, Danbury, CT, acquired a serviced portfolio worth over $190 million from Murray Financial Associates, Marlton, NJ. The portfolio includes 1,753 residential mortgages. (SNL Weekly Bank Fax, 6/21/99)

On June 8, General Motors Acceptance Corporation, Detroit, MI, signed a definitive agreement to acquire BNY Financial Corporation, the factoring and asset-based lending unit of Bank of New York, New York, NY, for $1.8 billion in cash. The transaction, which is subject to regulatory approval, is expected to be completed by the end of the second quarter. (SNL Weekly Bank Fax, 6/14/99)

On June 24, the Federal Reserve Board of Governors (Fed) issued a letter to supervisory staff and bankers on overseeing large complex banking organizations during a time of dramatic change in the financial system. The guidance emphasizes the importance of assessing key risk management processes and ongoing monitoring of an institution's risk profile, as well as tailoring the supervision program to an institution's principal business lines and risks. (SNL Weekly Bank Fax, 6/28/99)

On June 11, the Office of the Comptroller of the Currency (OCC) issued a final rule to clarify that it may make nonpublic OCC information available to a supervised entity and to other persons, as it deems necessary or appropriate, without a request for records or testimony. The final rule also clarifies that suspicious activity reports are nonpublic documents and that both present and former OCC employees and agents are subject to the restrictions on the disclosure of information under the rule. (SNL Weekly Fax, 6/14/99)

On June 3, the Federal Deposit Insurance Corporation (FDIC) approved a policy statement clarifying the steps interstate banks must take before closing a branch in a low- or moderate-income area. It will be published in the Federal Register once the three other agencies officially adopt it. (American Banker, 6/10/99)

On May 21, the Federal Reserve Board of Governors (Fed) issued guidelines concerning loan loss reserves. According to the Fed, banks should maintain conservative allowances but can adopt the high end of the range of estimated losses when appropriate. (American Banker, 6/10/99)

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.