Merger Announcements

On January 26, HUBCO, Inc., Mahwah, NJ, signed a definitive agreement to acquire Little Falls Bancorp, Inc., Little Falls, NJ. The transaction, which is subject to regulatory and shareholder approval, is expected to be completed in the second quarter. As of June 30, 1998, HUBCO, Inc., parent company of Lafayette American Bank and Trust Company, Bridgeport, CT, had total New England deposits of $1.0 billion and ranked 22nd among all commercial banking and thrift organizations in the region. On February 19, Union Bankshares, Inc., Morrisville, VT, entered into a definitive agreement to buy Citizens Savings Bank & Trust Company, St. Johnsbury, VT. The transaction, which is subject to regulatory and shareholder approval, is expected to be complected in the third quarter. As of June 30, 1998, Union Bankshares, Inc., parent company of Union Bank, Morrisville, VT, had total deposits of $142.3 million and ranked tenth among all commercial banking and thrift organization in Vermont. As of the same date, Citizens Savings Bank & Trust Company had total deposits of $82.6 million and ranked 17th. (SNL Weekly BankFax, 2/1; 2/22/99)

On January 29, Westbank Corporation, West Springfield, MA, completed its acquisition of Cargill Bancorp, Inc., Putnam, CT. As of June 30, 1998, Westbank Corporation, parent company of Park West Bank and Trust Company, West Springfield, MA, had total deposits of $306.2 million and ranked 90th among all commercial banking and thrift organizations in New England. As of the same date, Cargill Bancorp, parent company of Cargill Bank, Putnam, CT, had total deposits of $42.5 million and ranked 365th. (SNL Weekly BankFax, 2/8/99)

On August 24, 1998, Moodus Savings Bank, Moodus, CT, changed its title to Hometown Bank. As of June 30, 1998, Moodus Savings Bank had total deposits of $45.9 million and ranked 74th among all commercial banking and thrift organizations in Connecticut. (Internal Notice, 2/12/99)

On February 11, Cape Cod Bank and Trust Company, Hyannis, MA, completed its holding company reorganization. Under the plan, the bank formed a holding company named CCBT Bancorp, Inc., Hyannis, MA. As of June 30, 1998, Cape Cod Bank and Trust Company had total deposits of $720.9 million and ranked 19th among all commercial banking and thrift organizations in Massachusetts. (Internal Notice, 2/12/99)

On February 1, Fleet Financial Group, Boston, MA, completed its acquisition of Sanwa Business Credit, Chicago, IL, the commercial finance unit of Sanwa Bank Ltd., Osaka, Japan. Terms of the transaction were not disclosed. The purchase of Sanwa Business Credit enables Fleet to expand its equipment-leasing and financing business and become one of the three largest secured lenders in the United States. (Boston Globe, 2/9; SNL Weekly BankFax, 2/16/99)

On January 28, Mellon Bank Corporation, Pittsburgh, PA, received approval from the Federal Reserve Board of Governors (Fed) to begin underwriting and dealing in all types of debt and equity securities through its wholly owned subsidiary, Mellon Financial Markets, Inc. Mellon Financial Markets, Inc. was established in 1995 when it received Tier 1 power to underwrite certain bank-ineligible debt, including municipal revenue bonds, commercial paper, and certain asset-backed and mortgage-related securities. The approval of Tier 2 powers allows Mellon Financial Markets to begin underwriting all other classes of municipal and asset-backed securities, as well as corporate debt and equity. (American Bkr., 1/29/99)

On February 9, Hoosac Bank, North Adams, MA, completed its acquisition of Coakley, Pierpan, Dolan & Collins Insurance Agency, North Adams, MA. Hoosac, a $191-million-asset bank in western Massachusetts, was the first bank to announce last year that it would take advantage of Massachusetts legislation passed in May of 1998 that lets state banks sell insurance. (American Bkr., 2/9; SNL Weekly BankFax, 2/16/99)

On February 17, KeyCorp, Cleveland, OH, announced that it had agreed to buy Trident Financial Corporation, Raleigh, NC. Trident Financial is a privately owned investment bank specializing in advising financial institutions on mergers and acquisitions. It also advises thrifts on demutualization and M&A. Terms of the transaction were not disclosed. The deal is expected to close in April. Under the agreement, Trident will keep its name and operate as a separate division of KeyCorp's McDonald Investments, Inc. subsidiary, Cleveland, OH. In addition, McDonald Investments, Inc. announced that it has received approval from British regulators to open its first overseas office in London. (American Bkr., 2/19; 2/26/99)

On February 1, Bank of New York, New York, NY, announced it had opened a subsidiary in Luxembourg to expand its global fund administration businesses. Bank of New York SA, Luxembourg City, Luxembourg, will offer offshore fund administration services, cash management, foreign exchange, securities lending, and trade execution. (American Bkr., 2/2; 2/5/99)

On February 22, State Street Corporation, Boston, MA, formed Tuckerman Group, Purchase, NY, which will provide real estate investment vehicles and advisory services to institutional and individual investors. (American Bkr., 2/22; SNL Weekly BankFax, 2/22/99)

On February 17, the Federal Financial Institutions Examination Council (FFIEC) issued guidance to assist financial institutions with customer communication on the Year 2000. Customer communication is critical to Year 2000 efforts. The FFIEC has urged banks to provide "clear and accurate" information to clients in order to maintain customer confidence in the banking system. The FFIEC also suggests financial institutions train tellers and other front-line personnel to provide information and respond to customer inquiries, provide informational brochures or other written disclosures, establish toll-free hot lines for customer inquiries, hold educational seminars, and develop Year 2000 Web sites. (SNL Weekly BankFax, 2/22/99)

On February 1, the Federal Reserve Board of Governors (Fed) issued guidelines to bankers and bank examiners directed at reducing banks' credit risks. The Fed said that losses from the near-collapse of Long Term Capital Management LP showed that basic credit-risk-management policies, procedures, and internal controls were insufficient at some banks to address the risks of new, fast-growing, or evolving financial products and activities. (SNL Weekly BankFax, 2/8/99)

On February 10, federal financial institution regulators announced that they had updated and expanded the policy for classifying delinquent retail credits. The revised policy retains and clarifies a requirement that open-end loans, such as credit card balances, that are 180 days or more overdue should be charged off. Closed-end loans, such as installment loans, should be charged off after they are 120 days delinquent. (SNL Weekly BankFax, 2/16/99)

The Office of Thrift Supervision (OTS) will speed up the process for considering thrift charters by restructuring its supervision and compliance functions. Under the restructuring plan, the OTS will create a new office of supervision that will collect, analyze, and report on thrift issues. The plan also will create an office of compliance policy and specialty examinations to oversee compliance policy, trust and technological risk management, and community and consumer affairs. (SNL Weekly BankFax, 2/22/99)

On February 19, the Federal Deposit Insurance Corporation (FDIC) clarified the authority of state banks to invest in trust-preferred securities. State banks regulated by the FDIC may buy trust-preferred stock in unlimited quantities as long as state law permits. (American Bkr., 2/22; SNL Weekly BankFax, 2/22/99)

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.