Merger Completions

On May 20, Webster Financial Corporation, Waterbury, CT, completed its acquisition of Village Bancorp, Inc., Ridgefield, CT. As of June 30, 1998, Webster Financial Corporation, parent company of Webster Bank, Waterbury, CT, had total deposits of $5.8 billion and ranked third among all commercial banking and thrift organizations in Connecticut. As of the same date, Village Bancorp, Inc., parent company of Village Bank and Trust Company, Ridgefield, CT, had total deposits of $215.6 million and ranked 37th. On May 22, Woodstock National Bank, Woodstock, VT, merged with First Vermont Bank and Trust Company, Brattleboro, VT, under the charter and title of First Vermont Bank and Trust Company. Both Woodstock National Bank and First Vermont Bank and Trust Company are subsidiaries of BankNorth Group, Inc., Burlington, VT. As of June 30, 1998, Woodstock National Bank had total deposits of $65.6 million and First Vermont Bank and Trust Bank had total deposits of $503.4 million. Their parent company, BankNorth Group, Inc. had total deposits of $1.5 billion and ranked first among all commercial banking and thrift organizations in Vermont. (Internal Notice, 5/24; SNL Weekly BankFax, 5/24/99)

On May 11, Eastern Bank, Lynn, MA, opened a branch in a Shaw's Supermarket in Hanover, MA. As of June 30, 1998, Eastern Bank Corporation, Lynn, MA, parent company of Eastern Bank, and Eastern Bank and Trust Company, Salem, MA, had total deposits of $2.2 billion and ranked seventh among all commercial banking and thrift organizations in Massachusetts. (SNL Weekly BankFax, 5/17/99)

On May 17, American Bank of Connecticut, Waterbury, CT, purchased the deposit liabilities of one branch from New Milford Savings Bank, New Milford, Connecticut. The branch is located in Winsted, CT, and has total deposits of approximately $6.2 million. On May 15, 1999, Kennebunk Savings Bank, Kennebunk, ME, purchased one branch from Coastal Bank, Westbrook, ME. The branch is located in Kennebunk, ME, and has total deposits of approximately $12.8 million. (Internal Notice, 5/18; 5/24/99)

On May 4, Charter One Financial, Cleveland, OH, signed a definitive agreement to acquire 14 Vermont branches of Vermont National Bank from Chittenden Corporation, Burlington, VT. The branches, which have total deposits of approximately $400 million, are in Bennington, Berlin, Burlington, Colchester, Essex Junction, Jamaica, Montpelier, Middlebury, Brattleboro, South Burlington, St. Albans, Vergennes, Williston, and Winooski. On May 12, Factory Point Bancorp, Manchester Center, VT, signed a definitive agreement to acquire the Ludlow, VT, branch of Vermont National Bank from Chittenden Corporation, Burlington, VT, for an undisclosed amount. On May 19, Merchants Bancshares, Inc., Burlington, VT, signed a definitive agreement to acquire the Rutland and Bellows Falls, VT, branches of Vermont National Bank from Chittenden for an undisclosed amount. The transactions are related to the branch divestiture required by federal regulators as part of Chittenden's pending acquisition of Vermont Financial Services, Brattleboro, VT. The acquisition, which is subject to regulatory approval, is expected to be completed in the fourth quarter. (SNL Weekly BankFax, 5/10, 5/17, 5/24/99)

On April 23, Machias Savings Bank, Machias, ME, completed its holding company reorganization. Under the plan, the bank formed a mutual bank holding company named Machias Bancorp, MHC, and a holding company named Machias Bancorp, Inc. As of June 30, 1998, Machias Savings Bank had total deposits of $190.2 million and ranked 16th among all commercial banking and thrift organizations in Maine. (Internal Notice, 5/7/99)

On April 27, HUBCO, Inc., Mahwah, NJ, was renamed Hudson United Bancorp. (SNL Weekly BankFax, 5/3/99)

On May 19, shareholders of Vermont Financial Services, Brattleboro, VT, and Chittenden Corporation, Burlington, VT, approved Vermont Financial's acquisition by Chittenden. As of June 30, 1998, Chittenden Financial Corporation, parent company of Chittenden Trust Company, Burlington, VT, Bank of Western Massachusetts, MA, and Flagship Bank and Trust Company, Worcester, MA, 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 Corporation, parent company of Vermont National Bank, Brattleboro, VT, and United Bank, Greenfield, MA, had total deposits of $1.7 billion and ranked 17th. On May 3, shareholders of American Bank of Connecticut, Waterbury, CT, approved the formation of a holding company to be named BKC Bancorp, Inc. As of June 1998, American Bank of Connecticut had total deposits of $476.6 million and ranked 19th among all commercial banking and thrift organizations in Connecticut. The reorganization, which is subject to regulatory approval, is expected to be completed by November. (SNL Weekly BankFax, 5/3/99)

On May 6, Citizens Financial Group, Providence, RI, a subsidiary of Royal Bank of Scotland, Edinburgh, Scotland, signed a definitive agreement to acquire the commercial banking business of State Street Corporation, Boston, MA, for an undisclosed amount. The transaction includes $2.2 billion in commercial loans and four State Street branches in Boston and Quincy, MA. The deal, which is subject to regulatory approval, is expected to be completed in the fall. (Boston Globe, 5/7; SNL Weekly BankFax, 5/10/99)

On April 26, USTrust, Boston, MA, a subsidiary of UST Corporation, Boston, MA, received approval from the Massachusetts Division of Banks to acquire insurance broker Brewer and Lord LLP, Norwell, MA. USTrust signed a definitive agreement to buy Brewer & Lord on December 17, 1998. Brewer & Lord is one of the largest independent insurance firms in New England. (SNL Weekly BankFax, 5/3/99)

On April 26, Commercial Credit Corporation CCC Ltd, a member of Citigroup, Inc., New York, NY, agreed to buy 41 Canadian consumer finance branches from Associates First Capital Corporation, Dallas, TX. Terms of the agreement were not disclosed. This transaction is subject to regulatory and board approvals. (SNL Weekly BankFax, 5/3/99)

On May 11, Hudson United Bancorp (formerly HUBCO, Inc.), Mahwah, NJ, agreed to acquire Advest Bank and Trust Company, a subsidiary of Advest Group, Inc., Hartford, CT. Advest Group, Inc. is a brokerage, investment banking, and asset management company. Hudson also agreed to become the exclusive provider of banking services to Advest's clients for an initial term of four years. The transaction, which is subject to regulatory approval, is expected to be completed in the third quarter. (American Bkr., 5/13; SNL Weekly BankFax, 5/17/99)

First International Bank, Hartford, CT, a subsidiary of First International Bancorp, and Yankee Energy System, Meriden, CT, have formed a strategic alliance, under the terms of which the bank will offer its energy key commercial financial program to Yankee Energy's commercial and industrial clients. (SNL Weekly BankFax, 5/3/99)

On May 13, Citibank Canada, a subsidiary of Citigroup, Inc., New York, NY, agreed to sell five Canadian retail branches to Canada Trust, a subsidiary of CT Financial Services, Inc., Toronto, Canada. Terms of the deal were not disclosed. The transaction, which is subject to regulatory approval, is expected to be completed by mid-July. (SNL Weekly BankFax, 5/17/99)

On May 11, Mellon Bank Corporation, Pittsburgh, PA, agreed to sell its electronic funds transfer (EFT) processing unit Mellon Network Service, to U.S. Bancorp, Minneapolis, MN. The transaction is expected to be completed by the end of the second quarter. (American Bkr., 5/12; SNL Weekly BankFax, 5/17/99)

The Office of the Comptroller of the Currency (OCC) has issued guidance to national banks regarding Web site privacy statements. The guidance provides examples of effective practices for informing Internet clients about bank privacy policies for the collection and use of personal information. The guidance also discusses examples of effective practices for the development of bank privacy policies and for ensuring adherence to those policies. (SNL Weekly BankFax, 5/10/99)

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.