Merger Completions

On April 30, Chittenden Corporation, Burlington, VT, acquired Maine Bank Corporation and its subsidiary, Maine Bank and Trust Company, both of Portland, ME. The acquisition will add 15 branches, with $202 million in deposits, to Chittenden's operations. On January 26, Chittenden agreed to acquire Maine Bank Corporation for $49.3 million in cash. As of June 30, 2000, Maine Bank Corporation had total deposits of $197.6 million and ranked 20th among all commercial banking and thrift institutions in Maine. As of the same date, Chittenden Corporation had no commercial banking presence in Maine.

On May 1, Founders National Bank, Los Angeles, CA, merged with the Boston Bank of Commerce, Boston, MA, under the charter and title of the Boston Bank of Commerce. As of June 30, 2000, the Boston Bank of Commerce had total deposits of $80.8 million and ranked 163rd among all commercial banking and thrift institutions in Massachusetts.

On May 1, Fidelity Management Trust Company of California, Los Angeles, CA, merged with Fidelity Personal Trust Company, FSB, Boston, MA, under the charter and title of Fidelity Personal Trust Company, FSB. As of June 30, 2000, Fidelity Personal Trust Company, FSB, had total deposits of $500,000 and ranked 230th among all commercial banking and thrift institutions in Massachusetts.

On May 19, Augusta Federal Savings Bank, Augusta, ME, merged with Gardiner Savings Institution, FSB, Gardiner, ME, under the charter and title of Gardiner Savings Institution, FSB. As of June 30, 2000, Gardiner Savings Institution, FSB, had total deposits of $344.7 million and ranked sixth among all commercial banking and thrift institutions in Maine. As of the same date, Augusta Federal Savings Bank had total deposits of $81.5 million and ranked 31st. (Internal Notice, 5/2; 5/21; SNL Bank , Thrift Weekly, 5/7/01)

On April 25, the First National Bank of Ipswich, Ipswich, MA, opened a branch at 300-344 North Broadway, Salem, NH. On April 30, Southington Savings Bank, Southington, CT, opened branches at 1289 Highland Avenue, Cheshire, CT, and 67 Chamberlain Highway, Kensington, CT.

On May 1, Bristol County Savings Bank, Taunton, MA, opened a branch at 215 Armistice Boulevard, Pawtucket, RI. On May 7, People's Bank, Bridgeport, CT, opened a branch at 1692 East Main Street, Torrington, CT. On May 14, Watertown Savings Bank, Watertown, MA, opened a branch at 637 Main Street, Waltham, MA. (Internal Notice, 4/25; 4/30; 5/1; 5/7; 5/14/01)

On May 11, the Federal Reserve Bank of Boston (FRB Boston) approved the application of Boston Federal Savings Bank Employee Stock Ownership Plan, Burlington, MA, to acquire up to 24.9 percent of the common stock of BostonFed Bancorp, Inc., Burlington, MA. Boston Federal Savings Bank, Burlington, MA, is a subsidiary of BostonFed Bancorp, Inc.

On May 18, the FRB Boston approved the application of LSB Corporation, North Andover, MA, to become a bank holding company through the acquisition of Lawrence Savings Bank, North Andover, MA. (Actions by the Board, 5/19/01)

On May 9, the Connecticut Department of Banking approved the application of People's Bank, Bridgeport, CT, to sell its branch located at 94 Main Street, North Canaan, CT, to Salisbury Bank and Trust Company, Lakeville, CT. As of June 30, 2000, Salisbury Bancorp, Inc., Lakeville, CT, parent company of Salisbury Bank and Trust Company, had total deposits of $155.9 million and ranked 44th among all commercial banking and thrift institutions in Connecticut. As of the same date, People's Mutual Holdings, Bridgeport, CT, parent company of People's Bank, had total deposits of $7.5 billion and ranked second.

On May 9, the Connecticut Department of Banking approved the application of Southington Savings Bank, Southington, CT, to convert from a capital stock savings bank to a bank and trust company. Southington Savings is a subsidiary of Bancorp Connecticut, Inc., Southington, CT. (State of CT Dept. of Banking News Bulletin, 5/11/01)

On April 20, the Office of Thrift Supervision (OTS) approved an application for the organization of de novo thrift Union Federal Savings Bank, North Providence, RI (Union FSB). Union FSB will be a subsidiary of Union Bank, North Providence, RI, a privately held commercial bank. (SNL Bank , Thrift Weekly, 5/7/01)

On May 2, First International Bancorp, Inc., Hartford, CT, entered a definitive agreement to sell its remaining deposits to Hudson United Bancorp, Mahwah, NJ. Under terms of the deal, Hudson United will assume approximately $250 million in time deposit accounts from First International.

In April 1999, Hudson United Bank, Union City, NJ, assumed approximately $150 million of deposits from First International Bank, Hartford, CT, a subsidiary of First International Bancorp, Inc., and purchased its remaining retail branch. In January 2001, First International Bancorp, Inc., entered into a definitive merger agreement with United Parcel Service, Inc. (UPS), pursuant to which UPS will acquire First International Bancorp.

As of June 30, 2000, Hudson United Bancorp had total deposits of $1.5 billion and ranked eighth among all commercial banking and thrift institutions in Connecticut. As of the same date, First International Bancorp, Inc., had total deposits of $273.3 billion and ranked 31st. (SNL Bank , Thrift Weekly, 5/7/01)

On May 3, Westbank Corp, West Springfield, MA, announced plans to merge its thrift subsidiary, Cargill Bank, Danielson, CT, with its commercial bank subsidiary, Park West Bank and Trust Co., West Springfield, MA, under the charter and title of Park West Bank and Trust Co. The company said no branch closings were expected. The deal is subject to approval from state and federal banking regulators. (SNL Bank , Thrift Weekly, 5/7/01)

On April 30, Investors Financial Services Corporation, Boston, MA, acquired the asset administration operations of Barclays Global Investors NA. Barclays is now part of Investors Financial unit Investors Bank , Trust Co, Boston, MA. With the transaction, Investors Financial Services Corporation now has $787 billion in assets under management. (SNL Bank , Thrift Weekly, 5/7/01)

On May 7, UMB Bank, NA, Kansas City, MO, a unit of UMB Financial Corp, St. Louis, MO, completed its acquisition of State Street Bank and Trust Company of Missouri, NA, St. Louis, MO, a corporate trust subsidiary of State Street Corp, Boston, MA. The business will operate under the name UMB Bank , Trust. (SNL Bank , Thrift Weekly, 5/14; UMB Financial Press Release, 5/19/01)

On May 7, Camden National Corp, Camden, ME, signed a definitive agreement to acquire Acadia Trust, NA, and Gouws Capital Management, both of Portland, ME. Acadia and Gouws each hold approximately $400 million in assets under trust. In addition to trust activities, Gouws engages in investment advisory services. The transactions, subject to regulatory approval and other conditions, are expected to be completed by July 7. (SNL Bank , Thrift Weekly, 5/14/01)

On May 3, the Bank of New York Co., Inc., New York, NY, announced plans to acquire the institutional custody and administration business of NatWest Bank, London, UK, a subsidiary of Royal Bank of Scotland Group, Edinburgh, UK (RBSG). The Bank of New York Co., Inc., already has a substantial custody presence in the UK; in 1999, the institution bought RBSG's custody subsidiary, RBS Trust Bank. RBSG is the parent company of Citizens Financial Group, Inc., Providence, RI. (American Banker, 5/4; SNL Bank , Thrift Weekly, 5/7/01)

On May 1, Financial Institutions Inc., Warsaw, NY, completed its acquisition of Bath National Corp, Bath, NY. Bath National Bank, Bath, NY, a former subsidiary of Bath National Corp, will continue to operate as an independently managed community banking unit of Financial Institutions. (SNL Bank , Thrift Weekly, 5/7/01)

On May 18, Federal Deposit Insurance Corp (FDIC) Chairwoman Donna Tanoue stated her case for deposit insurance reform before an assembly of state banking supervisors. Tanoue proposed a tiered premium system in which banks with the highest risk-profile would pay a premium of 6 basis points, with the next level paying 3 basis points, and the least risk-oriented institutions paying 1 basis point. The FDIC would then pay rebates to insured institutions if the insurance funds became overcapitalized.

Tanoue said the FDIC would like to use a "statistical failure-prediction model as the basis for a scorecard" that assessed risk and assigned premium rates. The FDIC head said that system would, in effect, create an incentive for banks to manage their own risks. Additionally, she said, the move would limit the stress on banks - and therefore on available credit - when deposit-insurance premiums are hiked during economic downturns. (SNL Bank , Thrift Weekly, 5/21/01)

On May 3, the Federal Reserve Board of Governors (Fed) announced its intention to unify rules and policies governing transactions between holding-company affiliates under a single regulation, to be known as Regulation W. The proposed rule would cover regulation of loans by a bank to an affiliate, asset purchases by a bank from an affiliate, and other transactions involving a bank.

Currently, staff letters and interpretations implement the policies covering those transactions. That guidance will remain in effect until the new Regulation W becomes effective. The purposes of Regulation W are to limit a bank's risk of loss in transactions with affiliates and to limit a bank's ability to transfer to its affiliates the benefits arising from its access to the federal safety net. Comment on the proposed Regulation W is requested within 90 days of publication in the Federal Register, expected shortly. (SNL Bank , Thrift Weekly, 5/7/01)

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.