Regulators Approve Citizens-Mellon Proposal

On November 7, the Federal Reserve Board of Governors (Fed) approved the proposal by Royal Bank of Scotland Group subsidiary Citizens Financial Group, Inc., Providence, RI, to operate two banking institutions in the mid-Atlantic region, clearing the way for its proposed acquisition of the retail branches of Mellon Financial Corp, Pittsburgh, PA.

The approval was passed despite the objections of two community groups which jointly submitted comments opposing the proposal and expressing concerns about the record of Citizens in meeting the convenience and needs of the communities it serves. The deal was originally announced in July.

The deal was also approved on October 31 by the Federal Deposit Insurance Corp (FDIC) and the Massachusetts Division of Banks (MA DOB). The transaction is expected to close in July 2002. (Actions by the Board, 11/10; State of MA DOB Notice, 10/31; SNL Bank , Thrift Weekly, 11/12/01)

Merger Completion

On November 1, Banknorth Group, Inc., Portland, ME, acquired Andover Bancorp Inc., Andover, MA, and MetroWest Bank, Framingham, MA. Operational conversion of both acquisitions is expected to occur in the first quarter of 2002. As of June 30, 2000, Banknorth had total deposits of $11.2 billion and ranked fourth among all commercial banking and thrift institutions in New England. As of the same date, Andover had total deposits of $1.1 billion and ranked 25th. As of the same date, MetroWest had total deposits of $641.7 million and ranked 46th.

As part of the deal, on November 1, MetroWest Bank, Framingham, MA, merged with Banknorth subsidiary First Massachusetts Bank, NA, Worcester, MA, under the charter and title of First Massachusetts Bank, NA. (Internal Notice, 11/27; SNL Bank , Thrift Weekly, 11/5/01)

Branch Closings

On October 31, Bank of Nova Scotia, Toronto, Canada, closed its Bank of Nova Scotia Boston branch, located at 28 State Street, Boston, MA. On November 2, Fleet National Bank, Providence, RI, closed three branches in Maine (in Boothbay Harbor, Lewiston, and Stanford), two in New Hampshire (in Concord and Nashua), and one in Rhode Island (in Narragansett). (Internal Notice, 11/5; 11/9/01)

Branch Opening

On November 19, Cornerstone Bank, Stamford, CT, opened a branch located at 1071 Post Road East, Westport, CT. (State of CT Dept. of Banking News Bulletin, 11/16; 11/23/01)

Bank Openings

On November 12, Union Federal Savings Bank, North Providence, RI, a federally chartered savings bank, opened for business.

On November 19, Commonwealth National Bank, Worcester, MA, a full-service, independent, member bank, opened for business. (Internal Notice, 11/13; 11/19/01)

Shareholders Approve Merger

On November 16, shareholders of Borel Bank , Trust Co., San Mateo, CA, approved the bank’s sale to Boston Private Financial Holdings, Inc., Boston, MA. (SNL Bank , Thrift Weekly, 11/19/01)

Berkshire Becomes the First MHC with National Bank Charter

On October 29, the Federal Reserve Bank of Boston (FRB Boston) approved the proposal by Berkshire Financial Services, Inc., Lee, MA, to acquire de novo bank Freedom National Bank, Greenville, RI.

On November 29, Freedom National Bank, Greenville, RI, a nationally chartered, member bank, opened for business. According to a spokesperson for the Office of the Comptroller of the Currency (OCC), Berkshire Financial Services, Inc. is the first mutual holding company to charter a national bank. Berkshire also holds Lee Bank, Lee, MA, a state-chartered savings bank operating solely in Massachusetts. (Actions by the Board, 11/3; Internal Notice, 11/29; SNL Bank , Thrift Weekly, 11/5/01)

FRB Boston Approves Transaction

On November 19, FRB Boston approved the proposal by Westfield Financial, Inc., Westfield, MA, to become a bank holding company through the acquisition of Westfield Savings Bank, Westfield, MA, and for Westfield Mutual Holding Company, Westfield, MA, to acquire a majority of the common stock of Westfield Financial, Inc. (Internal Notice, 11/23/01)

Massachusetts DOB Approves Proposals

On October 25, the MA DOB approved the proposal by Boston Private Financial Holdings, Inc., Boston, MA, to acquire Borel Bank , Trust Company, San Mateo, CA.

On October 26, the MA DOB approved the proposal by Compass Bank for Savings, New Bedford, MA, to acquire the Hyannis, MA, branch office of Charter Bank, Waltham, MA. Compass is a subsidiary of Seacoast Financial Services Corp, New Bedford, MA.

As of June 30, 2000, Seacoast Financial Services Corp had total deposits of $1.7 billion and ranked eighth among all commercial banking and thrift institutions in Massachusetts. As of the same date, Charter Bank had total deposits of $139 million and ranked 126th. (State of MA DOB Notice, 10/31/01)

Merger Announcement

On November 13, Washington Trust Bancorp, Inc., Westerly, RI, signed a definitive agreement to acquire First Financial Corp, Providence, RI, for approximately $39 million, payable in cash and common stock. The deal initially values First Financial at $32 per share, a 75% premium to its November 12 closing price. The transaction is expected to close in the second quarter of 2002. As of June 30, 2000, Washington Trust Bancorp, Inc. had total deposits of $672 million and ranked fourth among all commercial banking and thrift institutions in Rhode Island. As of the same date, First Financial Corp had total deposits of $125.5 million and ranked tenth. (SNL Bank , Thrift Weekly, 11/19/01)

Camden National Acquires Trust Co

On October 24, Camden National Corporation, Camden, ME, acquired Trust

Company of Maine, Inc., Bangor, ME (TCOM). TCOM engages in trust activities. Camden has recently pursued an active expansion of its trust operations. On July 19, Camden acquired Acadia Trust, NA, Portland, ME. (Internal Notice, 6/30; 11/2/01)

Fleet in NY Branch Transactions

On November 2, Fleet National Bank, Providence, RI, closed six branches in the state of New York. The branches were located in Brighton, Buffalo, Coram, East Rochester, North Rose, and Troy.

On November 16, Fleet National Bank, Providence, RI, sold thirty-six branches in the southwestern and Finger Lakes regions of New York to Community Bank, NA, Canton, NY, a subsidiary of Community Bank System, Inc., DeWitt, NY. Fleet National Bank sold only the deposits (not the office space) for the branch located at 201 North Union Street, Olean, NY. The branches carried roughly $473 million in deposits and $176 million in business and consumer loans, and included 20 ATMs. Three of the branches will immediately be combined with existing branches. (Internal Notice, 11/5; 11/19; SNL Bank , Thrift Weekly, 11/26/01)

New York Merger Completions

On November 8, NBT Bancorp, Inc., Norwich, NY, acquired CNB Financial Corp, Canajoharie, NY. The deal was originally announced on June 19.

On November 12, North Fork Bancorp, Inc., Melville, NY, acquired Commercial Bank of New York, New York, NY. The deal, announced on February 13, was approved by the New York State Banking Department and the FDIC on October 11 after Commercial Bank’s majority owner agreed to pay $7.5 million to settle regulators’ concerns about compliance with rules and procedures of the Bank Secrecy Act. Federal Reserve approval followed a couple of weeks later. North Fork now has 167 branches in the New York metropolitan area, including 20 in Manhattan. (SNL Bank , Thrift Weekly, 6/25; 11/19/01)

Providian to Address Subprime Lending Concerns

On November 29, Providian Financial Corp, Louisville, KY, struggling to overcome problems caused by widening credit losses, put its international credit card business up for sale and said it agreed to submit certain plans to banking regulators. Providian said it would try to sell its card businesses in Argentina and the United Kingdom, which have a combined $188 million in deposits and $585 million in receivables. Pending a sale, the company said it agreed with U.K. authorities that it would cease accepting new deposit customers or soliciting new loan applications.

Under agreements with the OCC, FDIC, and the Utah Department of Financial Institutions, Providian must submit a three-year capital plan, including expected sources of future capital, to regulators by November 30. Providian, which grew rapidly in recent years through heavy subprime lending, is now limited to 2.5% asset growth per quarter until the agencies have approved the capital plan. As of June 30, 2000, Providian Financial Corp had total deposits of $10.7 billion and ranked first among all commercial banking and thrift institutions in New Hampshire. (Wall Street Journal, 11/29/01)

OTS Proposes to Ease Thrift Regulations

On October 31, the Office of Thrift Supervision (OTS) proposed several changes to its lending and investment regulations in an effort "to allow thrifts greater flexibility" in providing credit, essentially making them more competitive. The OTS proposed, among other things, raising the dollar-amount limit in the definition of small-business loans under the Home Owners Loan Act from $1 million to $2 million, and to farms from $500,000 to $2 million. In addition, the OTS wants to revise its regulations to give thrifts the same authority to invest in small-business investment companies that banks have. (SNL Bank , Thrift Weekly, 11/29/01)

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.