Merger Completions On January 1, Peoples Heritage Bank, NA, Portland, ME, changed its title to Banknorth, National Association. On the same date, Andover Bank, Andover, MA; Banknorth Investment Management Group, NA, Burlington, VT; Bank of New Hampshire, NA, Farmington, ME; Evergreen Bank, NA, Glens Falls, NY; First Massachusetts Bank, NA, Worcester, MA; First Vermont Bank, NA, Brattleboro, VT; Franklin-Lamoille Bank, NA, St. Albans, VT; Gloucester Bank , Trust, Gloucester, MA; and Howard Bank, NA, Burlington, VT; merged with Banknorth, National Association, Portland, ME; under the charter and title of Banknorth, National Association.

The transaction represents a merger of subsidiaries of Banknorth Group, Inc., Portland, ME. On November 1, Banknorth Group, Inc. acquired Andover Bancorp, Inc., Andover, MA, and MetroWest Bank, Framingham, MA. 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. As of June 30, 2001, Banknorth Group, Inc. had total deposits of $11.6 billion and ranked fifth among all commercial banking and thrift institutions in New England.

On January 1, Lenox Savings Bank, Lenox, MA, merged with City Savings Bank, Pittsfield, MA, under the charter of City Savings Bank and the title of Legacy Banks. The transaction represents a merger of subsidiaries of Mutual Bancorp of the Berkshires, Pittsfield, MA. On January 1, Passumpsic Bank, FSB, Littleton, NH, merged with Passumpsic Savings Bank, St. Johnsbury, VT, under the charter and title of Passumpsic Savings Bank. The transaction represents a merger of subsidiaries of Passumpsic Bancorp, Inc., St. Johnsbury, VT.

On January 22, American Bank of Connecticut, Waterbury, CT, merged with American Savings Bank, New Britain, CT, under the charter and title of American Savings Bank. As of June 30, 2001, American Financial Holdings, Inc., New Britain, CT, parent company of American Savings Bank, had total deposits of $1.2 billion and ranked 11th among all commercial banking and thrift institutions in Connecticut. As of the same date, American Bank of Connecticut had total deposits of $745.8 million and ranked 13th. (Internal Notice, 11/27/01; 1/2; 1/22/02; SNL Bank , Thrift Weekly, 11/5/01; 1/22/02)

Charter Conversion On January 2, Eastern Savings and Loan Association, Norwich, CT, converted from a state-chartered mutual savings and loan association to a federally chartered mutual savings bank. The new title is Eastern Federal Bank. (Internal Notice, 1/8/02)

Branch Closing On January 11, Fleet National Bank, Providence, RI, closed a branch located at 208 Elm Street, New Canaan, CT. (Internal Notice, 1/30/02)

Branch Opening

On January 21, Reading Co-Operative Bank, Reading, MA, opened a branch located at 170 Park Street, North Reading, MA. (Internal Notice, 1/22/02)

Name Change On December 1, Charter Bank, A Co-operative Bank, Waltham, MA, changed its title to Chart Bank, A Co-operative Bank. (Internal Notice, 1/25/02)

FRB Boston Approves Proposal On January 9, the Federal Reserve Bank of Boston approved the application by Williamstown Mutual Holding company (in formation), Williamstown, MA, to become a mutual bank holding company through the acquisition of Williamstown Savings Bank, Williamstown, MA. (Internal Notice, 1/11/02)

MA DOB Approves Proposals On December 13, the Massachusetts Division of Banks (MA DOB), approved the proposal by City Savings Bank, Pittsfield, MA (City), and Lenox Savings Bank, Lenox, MA (Lenox), to merge Lenox with and into City under the charter and bylaws of City and the name of Legacy Banks. On the same date, the MA DOB approved the proposal by Williamstown Savings Bank, Williamstown, MA, to establish a mutual savings bank, Williamstown Mutual Savings Bank, and a stock savings bank in conjunction with its multistep reorganization into a mutual holding company, Williamstown Mutual Holding Company. (State of MA DOB Notice, 12/31/01)

Webster to Offer Services to NYCB Branches On December 31, New York Community Bancorp, Inc. (NYCB) announced that its subsidiary, New York Community Bank (NYC Bank), has signed an agreement with Webster Bank, Webster, CT, a subsidiary of Webster Financial Corporation, Waterbury, CT, under which Webster Bank will offer banking services to NYC Bank customers who currently hold deposits in the Bank's seven Connecticut-based in-store branch offices. NYCB's CEO said that after the transaction, NYCB effectively will no longer be doing business in Connecticut. The proposal, subject to regulatory and shareholder approval, is expected to be consummated by the end of the second quarter. (NYCB Press Release, 12/31/01)

Charter Conversion Announcement On January 7, Charter One Financial, Inc., Cleveland, OH, announced that subsidiary, Charter One Bank, FSB, Cleveland, OH, one of the nation's largest thrifts, is filing with the Office of the Comptroller of the Currency (OCC) to convert to a national bank. The transaction, subject to regulatory and shareholder approval, is expected to be completed in the first quarter. Charter One Financial added that it does not expect a significant financial or regulatory effect as a result of the switch. (SNL Bank , Thrift Weekly, 1/14/02)

New England Institutions in Nonbanking Activity On December 26, Webster Financial Corp, Waterbury, CT, announced the formation of a municipal securities-underwriting group. The company plans to be able to meet the needs of investors in Connecticut who have previously relied on commercial banks in their communities to purchase municipal bonds. On January 16, State Street Corp, Boston, MA, announced plans to take stakes in hedge fund companies and to offer administrative services for such funds. The company, with $775 billion in assets under management and $6.2 trillion in assets under custody, will turn its attention to the hedge fund market as pension funds shift money out of equity funds and into hedge funds. Last year, State Street acquired most of the assets of RXR Group Inc., which focused on hedged equity, hedged fixed income, and global macro strategies of the G7 economies. Hedge funds, which are loosely regulated, not only buy stocks, but short them as well. (SNL Bank , Thrift Weekly, 12/31/01; 1/22/02)

Washington Mutual Acquires Dime On January 4, Washington Mutual Inc., Seattle, WA, acquired Dime Bancorp Inc., New York, NY. Dime units Dime Savings Bank of New York, New York, NY, and North American Mortgage Co., Santa Rosa, CA, will be merged into Washington Mutual Bank FA, Stockton, CA. (SNL Bank , Thrift Weekly, 1/7/02)

E*TRADE to Acquire Chase Deposits On January 11, E*TRADE Bank, Arlington, VA, a subsidiary of E*TRADE Group Inc., Menlo Park, CA, received approval from the Office of Thrift Supervision (OTS) to acquire roughly $1.7 billion in deposits and more than 30,000 accounts from Chase Manhattan Bank USA, Newark, DE, a subsidiary of J.P. Morgan Chase , Co., New York, NY. The deal, subject to regulatory and shareholder approval, is expected to close during the first quarter. (SNL Bank , Thrift Weekly, 1/14/02)

CT Bank of Commerce Agrees to FDIC Cease , Desist Order On January 7, Connecticut Bank of Commerce, Stamford, CT, agreed to the terms of a cease-and-desist order issued by the FDIC and the Connecticut Banking Commissioner designed to rectify the bank's alleged unsafe and unsound banking practices. The order, effective Dec. 10, 2001, replaced an existing memorandum of understanding issued by regulators March 23, 1999. According to the text of the order, Connecticut Bank of Commerce needs to remedy violations affecting a variety of issues, including the bank's oversight of its directors, management composition, asset quality, capital levels, capital distributions, and loan-loss reserves, as well as policies and procedures governing lending, conflicts of interest, and risk management. Notably, the order said Connecticut Bank of Commerce has been operating with a board of directors "that fails to provide adequate supervision and direction to the operating management of [the bank]." The order also said the bank has not adequately implemented recommendations in the 1999 memorandum of understanding. Under the new order, Connecticut Bank of Commerce must submit a budget, strategic plan, capital plan, internal-audit program, information-policy plan, and other periodic reports to state and federal regulators. Connecticut Bank of Commerce said it consented to the terms of the order without admitting or denying any of the alleged charges. (SNL Bank , Thrift Weekly, 1/14/02)

Banking Agencies Adopt Final Equity Investment Rules On January 8, The Federal Reserve Board of Governors, FDIC, and OCC announced the adoption of final rules governing the regulatory capital treatment of equity investments in nonfinancial companies held by banks, bank holding companies, and financial holding companies. The agencies' final rules are substantially similar to the revised proposed rules jointly issued for public comment last year. The final rules will become effective on April 1, 2002.

The new capital requirements apply symmetrically to equity investments made by banks and their holding companies in nonfinancial companies under the legal authorities specified in the final rules. Covered equity investments will be subject to a series of marginal Tier 1 capital charges, with the size of the charge increasing as the organization's level of concentration in equity investments increases.

The new charges would not apply to individual investments made by banking organizations prior to March 13, 2000, or to grandfathered investments made by state banks under section 24(f) of the Federal Deposit Insurance Act. The agencies also reiterated their intent to apply heightened supervision to banking organizations as those organizations increase their levels of concentration in equity investments. (OCC Press Release, 1/8/02)

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.