Merger Completions On August 31, Norway Savings Bank, Norway, ME, acquired First Coastal Corp, Portland, ME. As of June 30, 2000, Norway Bancorp, MHC, Norway, ME, parent company of Norway Savings Bank, had total deposits of $279.1 million and ranked 10th among all commercial banking and thrift institutions in Maine. As of the same date, First Coastal Corp had total deposits of $133 million and ranked 26th.

On September 1, First Federal Savings , Loan Association of East Hartford, East Hartford, CT, merged with the Savings Bank of Manchester, Manchester, CT, under the charter and title of the Savings Bank of Manchester.

As of June 30, 2000, First Federal Savings , Loan Association of East Hartford had total deposits of $621.8 million and ranked 15th among all commercial banking and thrift institutions in Connecticut. As of the same date, Connecticut Bancshares, Inc., Manchester, CT, parent company of the Savings Bank of Manchester, had total deposits of $940.4 million and ranked 13th.

On September 7, Cargill Bank, Putnam, CT, merged with Park West Bank , Trust Company, West Springfield, MA, under the charter of Park West Bank , Trust Company. The transaction represented a merger of subsidiaries of Westbank Corporation, West Springfield, MA. The new title of the surviving bank is WestBank. The main office of Park West would remain the main office of the continuing institution and all of the banking offices of Cargill would be retained as branch offices.

On September 26, Revere Federal Savings , Loan Association, Revere, MA, merged with Danvers Savings Bank, Danvers, MA, under the charter and title of Danvers Savings Bank. The institutions originally announced the deal on April 27.

As of June 30, 2000, Revere MHC, Revere, MA, parent company of Revere Federal Savings , Loan Association, had total deposits of $83.2 million and ranked 162nd among all commercial banking and thrift institutions in Massachusetts. As of the same date, Danvers Bancorp, Inc., Danvers, MA, parent company of Danvers Savings Bank, had total deposits of $303.9 million and ranked 59th. (Internal Notice, 9/4; 9/11; 9/27; SNL Bank , Thrift Weekly, 4/30; 9/10; 9/17 State of MA Division of Banks Notices, 8/31/01)

Branch Acquisition

On September 15, Salisbury Bank , Trust Company, Lakeville, CT, purchased one branch from People’s Bank, Bridgeport, CT. The branch is located in Canaan, CT. The transaction was originally announced on March 28. As of June 30, 2000, Salisbury Bancorp, Inc., Lakeville, CT, parent company of Salisbury Bank , 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. (Internal Notice, 9/18; SNL Bank , Thrift Weekly, 9/24/01)

Branch Closings

On August 31, the Savings Bank of Manchester, Manchester, CT, closed two branches located in Manchester, CT. On the same date, First Federal Savings , Loan Association, East Hartford, CT, closed two branches located in Manchester, CT.

On September 15, Fleet National Bank, Providence, RI, closed a branch located at 670 Bliss Road, Longmeadow, MA. (Internal Notice, 9/18; State of CT Dept. of Banking News Bulletin, 9/14/01)

Name Change

On September 1, the Ocean National Bank of Kennebunk, Kennebunk, ME, changed its title to Ocean National Bank. (Internal Notice, 9/27/01)

FRBB Approves Proposals

On September 5, the Federal Reserve Bank of Boston (FRBB) approved the proposal by Boston Private Financial Holdings, Inc., Boston, MA, to acquire Tuckernuck Partners, Inc. (d/b/a Kanon Bloch Carre), Boston, MA, and thereby engage in investment advisory services.

On September 13, FRBB approved the proposal by Banknorth Group, Inc., Portland, ME, to merge with Andover Bancorp, Inc., Andover, MA, and acquire its banking subsidiaries and shares of Gloucester Investment Corp, Gloucester, MA, and thereby engage in community development activities.

On June 11, Banknorth agreed to acquire Andover for approximately $333 million in stock and MetroWest Bank, Framingham, MA, for approximately $166 million in cash.

These acquisitions would make Banknorth the third-largest banking organization, as ranked by total deposits, in New England. As of June 30, 2000, Banknorth Group, Inc., 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 Bancorp, Inc., had total deposits of $1.1 billion and ranked 25th. As of the same date, MetroWest Bank had total deposits of $641.7 million and ranked 46th.

On September 14, FRBB approved the proposal by Southern Connecticut Bancorp, Inc., New Haven, CT, to become a bank holding company through the acquisition of Bank of Southern Connecticut, New Haven, CT, a de novo bank.

On September 21, FRBB approved the proposal by Boston Private Financial Holdings, Inc., Boston, MA, to acquire Borel Bank , Trust Company, San Mateo, CA. (Actions by the Board, 9/8; 9/15; Internal Notice, 9/21 SNL Bank , Thrift Weekly, 6/18/01)

Compass to Acquire Charter Bank Deposits

On September 6, Compass Savings Bank, New Bedford, MA, signed a definitive agreement to acquire approximately $25 million in deposits and "certain loans" from a Hyannis, MA, branch of Charter Bank, Waltham, MA. Compass is a subsidiary of Seacoast Financial Services Corp, New Bedford, MA. The deal, subject to regulatory approval, is expected to close in the fourth quarter.

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. (SNL Bank , Thrift Weekly, 9/10/01)

Hudson River Bancorp to Acquire Ambanc

On September 4, Hudson River Bancorp, Hudson, NY, agreed to acquire Ambanc Holding Co., Amsterdam, NY, for $100 million in cash. Under the terms, Hudson River will exchange $21.50 for each share of Ambanc. The deal, subject to regulatory and shareholder approval, is expected to be completed in the first quarter of 2002.

Ambanc and Hudson River were at one time rival bidders for Cohoes Bancorp, Inc., Cohoes, NY. Hudson River initially agreed to acquire Cohoes in a transaction that valued that thrift at roughly $11.04 per share. Ambanc and TrustCo Bank Corp of NY, Schenectady, NY, both launched hostile tender offers for Cohoes. Those hostile offers, one of which eventually reached $18 per share in stock and cash, resulted in Cohoes shareholders rejecting all efforts to be acquired. In November 2000, however, Hudson River announced another attempt to acquire Cohoes - this time at $19.50 per share. That deal closed in April. (SNL Bank , Thrift Weekly, 9/10/01)

Fed Reaches and Expands Swap Agreements

On September 14, as part of its effort to support and stabilize markets after the September 11 terrorist attacks, the Federal Reserve Board of Governors (Fed) continued to reach and expand swap-facility agreements with foreign banks. The Fed and the Bank of England have agreed to establish a temporary swap facility of up to $30 billion to provide liquidity in U.S. dollars. The facility did not exist previously. Under the terms, the Bank of England would be able to draw up to the maximum of the facility in exchange for sterling. The U.S. dollar proceeds would then be available to banks in the United Kingdom to settle U.S. dollar transactions. The arrangement expires in 30 days.

This marks the third swap-facility agreement or expansion of an existing agreement in the previous 24 hours. Additionally, the Fed and the Bank of Canada agreed to modify their current swap facility in order to support financial markets and provide liquidity in U.S. dollars. Under the terms of the new facility, the Bank of Canada now will be able to draw up to $10 billion in U.S. dollars by exchanging Canadian dollars. The Bank of Canada will make the proceeds available to Canadian banks that need U.S. dollars to settle transactions. The previous swap facility was capped at $2 billion. The increase is temporary and expires in 30 days.

On September 13, the Fed established a $50 billion swap facility with the European Central Bank. (SNL Bank , Thrift Weekly, 9/17/01)

Regulators Remind Banks that Capital Ratios Could Fall

On September 14, federal regulators told the banking industry in a joint release to prepare for possible balance-sheet growth in the wake of the September 11 terrorist attacks. Banks and thrifts should also be prepared for temporary declines in capital ratios as they meet the needs of their customers, according to the Fed, FDIC, Office of the Comptroller of the Currency (OCC), and Office of Thrift Supervision (OTS). "This growth could occur if, for example, during this period corporate borrowers make unusual draws on their existing lines of credit or request new lines in response to a perceived need for extra liquidity, or if a banking organization were to receive unusually large deposit inflows," regulators said. "Absent other factors, increases in extensions of credit or large deposit inflows would likely result in an increase in total assets." Banking organizations should therefore prepare for the potential effects of growing balance sheets, which may include a temporary decline in their regulatory capital ratios. The regulators urged every organization that anticipates this effect to contact its primary supervisor to discuss how to address it in light of the institution’s overall financial condition. (SNL Bank , Thrift Weekly, 9/17/01)

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.