Bank Opening

On October 1, The Bank of Southern Connecticut, New Haven, CT, a state-chartered, nonmember commercial bank, opened for business. (State of CT Dept. of Banking News Bulletin, 10/5; Internal Notice, 10/1; 10/12/01)

Branch Acquisition

On October 27, Berlin City Bank, Berlin, NH, purchased one branch, located in Littleton, NH, from Bank of New Hampshire, NA, Farmington, NH. This marks the second time in two years Berlin City Bank has acquired a branch from Bank of New Hampshire; on August 26, 2000, the bank purchased a branch located in Ossipee, NH, divested in order to mitigate antitrust concerns arising from the May 10, 2000, merger between Peoples Heritage Financial Group, Portland, ME, and Banknorth Group, Inc., then headquartered in Burlington, VT.

As of June 30, 2000, Northway Financial, Inc., Berlin, NH, parent company of Berlin City Bank, had total deposits of $352.5 million and ranked ninth among all commercial banking and thrift institutions in New Hampshire. As of the same date, Banknorth Group, Inc., Portland, ME, parent company of Bank of New Hampshire, NA, had total deposits of $3.4 billion and ranked second. (Internal Notice, 8/28/00; 10/29/01; SNL Bank and Thrift Weekly, 5/15/00)

Branch Closing

On October 5, Jewett City Savings Bank, Jewett City, CT, closed a branch located at 28 Main Street, Jewett City, CT. Jewett consolidated the branch into its main office, located at 111 Main Street, Jewett City, CT. (Internal Notice, 10/18/01)

Branch Openings

On September 24, Ocean National Bank, Kennebunk, ME, opened a branch located at 1555 Lafayette Road, Portsmouth, NH. On September 25, The First National Bank of Damariscotta, Damariscotta, ME, opened a branch located at 132 Park Street, Rockland, ME. On October 22, Winchester Savings Bank, Winchester, MA, opened a branch located at 573 Main Street, Woburn, MA. On the same date, Liberty Bank, Middletown, CT, opened a branch located at 174 Washington Avenue, North Haven, CT. (Internal Notice, 10/16; 10/23; State of CT Dept. of Banking News Bulletin 10/26; State of NH Banking Commissioner Notice, 9/30/01)

Shareholders and Regulators Approve Mergers

On September 26, shareholders of MetroWest Bank, Framingham, MA, approved the company’s sale to Banknorth Group, Inc., Portland, ME. On October 9, shareholders of Andover Bancorp, Inc., Andover, MA, approved the company’s sale to Banknorth.

On October 26, Banknorth announced that it had received all regulatory approvals to acquire MetroWest and Andover.

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. (SNL Bank , Thrift Weekly, 10/1; 10/15; 10/29/01)

Regulators Approve North Fork-CBNY Merger

On October 11, the Federal Deposit Insurance Corp (FDIC) approved the proposal by North Fork Bancorporation, Inc., Melville, NY (North Fork Bancorp), to acquire Commercial Bank of New York, New York, NY (CBNY), but that approval was delayed, contingent on CBNY resolving procedural concerns raised by New York State regulators.

In 2000, the New York State Banking Department detected what it considered to be procedural lapses regarding the "Know Your Customer" requirements of the Bank Secrecy Act and the Office of Foreign Asset Control. The requirements were designed to prevent money laundering. The lapses prompted a further investigation by the New York Attorney General.

The problems only involved CBNY’s international private banking operations, which North Fork Bancorp is not acquiring in the proposed merger. The accounts and personnel associated with that business will be discontinued in the merger, and North Fork Bancorp will retain only CBNY’s domestic banking operations.

On October 24, the Federal Reserve Board of Governors (Fed) approved the acquisition by North Fork Bancorp of CBNY. The Fed’s approval was passed over the objections of a "commenter" regarding the CRA compliance of North Fork Bank, Melville, NY, a subsidiary of North Fork Bancorp. The two companies announced their agreement to merge in February.

The banks originally expected the deal to close in the third quarter, but that date was delayed when the Fed became involved in the regulatory process; North Fork Bancorp had originally expected to receive a waiver from that agency. As of June 30, 2000, North Fork Bancorp operated in the states of New York (through North Fork Bank) and Connecticut (through subsidiary Superior Savings of New England, Branford, CT). (SNL Bank , Thrift Weekly, 10/15; 10/29/01)

Merger Announcements

On October 1, Firstfed America Bancorp, Inc., Swansea, MA, signed a definitive agreement to acquire People’s Bancshares Inc., New Bedford, MA, for approximately $72 million in cash and stock, which represents a premium of approximately 60 percent above the target’s September 28 closing stock price. The deal, subject to regulatory and shareholder approval, is expected to close in the first quarter of 2002.

As of June 30, 2000, Firstfed America Bancorp, Inc. had total deposits of $541.5 million and ranked 33rd among all commercial banking and thrift institutions in Massachusetts. As of the same date, People’s Bancshares had total deposits of $639.9 million and ranked 27th.

On October 5, Chittenden Corp, Burlington, VT, signed a definitive agreement to acquire Ocean National Corp, Kennebunk, ME, for $53.25 million in cash. The deal, subject to regulatory and shareholder approval, is expected to close in the first quarter of 2002. Chittenden said the acquisition strengthens its market presence in southern Maine and New Hampshire. Ocean National Corp subsidiary Ocean National Bank, Kennebunk, ME, will operate as a separate Chittenden unit, maintaining its name.

As of June 30, 2000, Chittenden Corp had total deposits of $3.2 billion and ranked 11th among all commercial banking and thrift institutions in New England. As of the same date, Ocean National Corp had total deposits of $181.3 million and ranked 178th.

On October 12, General Bank, Los Angeles, CA, a subsidiary of GBC Bancorp, Los Angeles, CA, signed a definitive agreement to acquire Liberty Bank , Trust Co., Boston, MA, in a cash deal valued at $11.4 million. (SNL Bank , Thrift Weekly, 10/8; 10/15/01)

BPFH Acquires Investment Advisor

On September 27, Boston Private Financial Holdings, Inc., Boston, MA, acquired investment advisor Tuckernuck Partners, Inc., Boston, MA. Tuckernuck was doing business as Kanon Bloch Carre. (Internal Notice, 10/5/01)

FRB Boston Approves Proposal

On October 17, the Federal Reserve Bank of Boston (FRB Boston) approved the proposal of Camden National Corp, Camden, ME, to acquire Trust Company of Maine, Inc., Bangor, ME, and thereby engage 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; 10/19/01)

NBT and CNB Shareholders Approve Merger

On October 16, shareholders of NBT Bancorp, Inc., Norwich, NY, and CNB Financial Corp, Canajoharie, NY, approved the banks’ previously announced merger. The merger agreement provides for the acquisition of CNB Financial by NBT Bancorp. (SNL Bank , Thrift Weekly, 10/22/01)

NJ Thrifts Announce Merger

On October 24, Oritani Financial Corp, MHC, Hackensack, NJ, signed a definitive agreement to acquire Hamilton Bancorp, MHC, Union City, NJ. As it is a mutual to mutual transaction, no consideration will be exchanged. (SNL Bank , Thrift Weekly, 10/29/01)

Bank of NY to Acquire Investment Research Firm

On October 9, Bank of New York Co., New York, NY, signed a definitive agreement to acquire Westminster Research Associates, New York, NY, an investment research firm. Westminster will become part of the bank’s brokerage and clearing services division, focused on the institutional and broker-dealer community. (SNL Bank , Thrift Weekly, 10/15/01)

Visa , MasterCard Must Allow Banks to Issue Rivals’ Cards

On October 9, a federal judge told top credit card networks Visa and MasterCard that they must let their member banks issue their rivals’ cards, a ruling that will revamp the highly competitive card industry, according to Reuters. Credit card issuer American Express Co. said in a statement the ruling was a "win for the American consumer." The company said it would resume discussions with a number of U.S. banks about possible card-issuing deals.

Still, the ruling stopped short of forcing the networks to change their governance structure. The networks are owned by banks that are allowed to have significant interests in both of them, a policy the government said had stopped them from competing.

The case against Visa and MasterCard stems from a 1998 U.S. government antitrust suit accusing the companies of colluding to stifle innovation and not truly competing with each other. (SNL Bank , Thrift Weekly, 10/15/01)

Regulators’ CRA Programs Encourage Recovery Lending

On October 4, the FDIC announced that banks will get credit under the CRA for lending that supports rebuilding efforts for those affected by the September 11 terrorist attacks. The FDIC said that bank examiners will be instructed to "count loans, investments, and services toward rebuilding efforts as community development under the law." Banks may also receive CRA credit for "providing financial advice or assistance to victims of the attacks and their families, as well as grants and services to individuals, businesses or other organizations."

In a similar release, the Office of the Comptroller of the Currency (OCC) said on October 5 that national banks supporting the recovery effort involved in the attacks will receive credit under the CRA. (FDIC Press Release, 10/4; SNL Bank , Thrift Weekly, 10/8/01)

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.