Wachovia Corporation to Acquire Golden West, American Property Financing, and Ameriprise Financial On May 7, 2006, Wachovia Corporation, Charlotte, NC, signed a definitive agreement to acquire Golden West Financial Corporation, Oakland, CA, parent of World Savings Bank, for approximately $25.5 billion in cash and stock. The acquisition extends the new banking franchise within reach of 55 percent of the U.S. population. Wachovia will add 285 consumer banking offices with $62 billion in retail deposits in ten states while entering new markets in California, Arizona, Colorado, Illinois, Kansas, and Nevada. The deal will also strengthen Wachovia's presence in California, Florida, and Texas. The combined company will have assets of $669 billion and a market capitalization of $117 billion, total deposits of $390 billion, and loans of $402 billion. In total, the company will serve customers in 21 states and Washington, DC. Ken Thompson, Wachovia chairman and CEO, said, "We believe this combination of our two companies, both known for exceptional customer service and pristine credit quality, will generate superior long-term growth in earnings per share." Herbert M. Sandler, Golden West chairman and CEO, said, "Wachovia is the company we selected to entrust with our legacy as one of the nation's most admired and trusted financial institutions. We share the same values of operating with integrity, putting customers first and encouraging teamwork." Pending shareholder and regulatory approval, the transaction is expected to close in the fourth quarter.

Earlier, Wachovia Corporation announced two additional acquisitions. First, on April 26, Wachovia said that it agreed to acquire American Property Financing, Inc., New York, NY, a subsidiary of New York Private Bank , Trust's Emigrant Bank. The terms of the transaction were not disclosed. American Property Financing (APF) offers a full suite of fixed and variable rate multifamily loan products and has a servicing portfolio in excess of $8 billion. Brett Smith, managing director and head of mortgage origination and placement for Wachovia's real estate capital markets group, said, "The addition of APF's talented professionals and top tier clients to our industry-leading commercial real estate platform enhances our financing and servicing capabilities and strengthens our presences in the attractive New York City multifamily lending market. This partnership positions us for continued market share growth." Wachovia expects to close the acquisition in the second quarter of 2006.

Second, on May 3, Wachovia entered into an agreement to acquire the defined-contribution recordkeeping business of Ameriprise Financial Inc., Minneapolis, MN. Terms of the transaction were not disclosed. Ameriprise provides recordkeeping services to 225 retirement plans with nearly 700,000 participants and approximately $28 billion in assets, bringing Wachovia Retirement Services' business to more than two million participants and pensioners and over $100 billion in assets. "This transaction underscores Wachovia's commitment to the retirement business," said Bob Reid, president of Wachovia's retirement and investment products group. "Retirement is a key focus for our company, and we look forward to continuing to provide great service and support to Ameriprise's defined contribution recordkeeping clients." Ameriprise's defined-contribution recordkeeping business will become part of Wachovia Retirement Services. Joe Ready, senior vice president of Wachovia Retirement Services, said, "We are excited about the addition of Ameriprise's defined-contribution plans as we continue to expand our retirement plan business. This is a great fit for both organizations." The transaction is expected to close late in the second quarter. As of June 30, 2005, Wachovia ranked tenth in New England, with a 1.9 percent share of deposits among all commercial bank and thrift institutions. (SNL Bank , Thrift Daily 4/26/06, 5/4/06, 5/8/06; Wachovia PR 4/25/06, 5/3/06, 5/7/06)

Webster Financial to Acquire NewMil Bancorp On April 25, Webster Financial Corp., Waterbury, CT, said that it reached an agreement to acquire NewMil Bancorp Inc., New Milford, CT, in a deal valued at approximately $172.5 million. With this transaction, Webster will expand its presence in Fairfield County, New Haven County, and Litchfield County, CT. The two banks will merge operations, and existing NewMil Bank branches will be renamed as branches of Webster Bank. "Our partnership with NewMil Bancorp is a combination of like-minded institutions that share a vision to be the region's leading financial services partner," stated Webster Chairman and CEO James C. Smith. "This alliance unites us with our highly respected partner while deepening Webster's presence in Litchfield, New Haven, and Fairfield counties. We know well Connecticut's markets and customers." Francis J. Wiatr, NewMil chairman, president, and CEO, said, "This agreement creates significant value for NewMil's shareholders, customers and the communities we serve. In joining with Webster, we are strengthening a powerful regional franchise that has become the largest independent bank headquartered in New England. This partnership will provide our customers access to a broader array of financial services from the same employees they've come to know and trust." The company expects to close the deal in the fourth quarter, subject to shareholder and regulatory approvals. As of June 30, 2005, Webster Bank ranked sixth in New England, with a 3.5 percent share of deposits among all commercial bank and thrift institutions. NewMil Bancorp ranked 59th in New England, with a 0.20 percent share of deposits. (SNL Bank , Thrift Daily 4/26/06; Webster PR 4/25/06)

Bank Name Change On May 18, the board of Lyndonville Savings Bank , Trust Company, Lyndonville, VT, voted to change the name of the bank to LYNDONBANK. President Charles Bucknam Jr. said, "LYNDONBANK truly reflects who we are today and traces our roots back to 1854 when the bank was founded as the Bank of Lyndon." The name change on signs and materials will take place gradually over the summer. (SNL Bank , Thrift Daily 5/19/06)

Branch Openings On March 28, 2006, North Middlesex Savings Bank, Ayer, MA, opened a branch at489 Main Street, Groton, MA. On April 15, The Community Bank, Brockton, MA, opened a branch at 704 Main Street, Falmouth, MA. Enfield Federal Savings and Loan Association, Enfield, CT, opened a branch located at 287 Somers Road, Ellington, CT, on April 17. Webster Bank, National Association, Waterbury, CT, opened a branch at 215 Elm Street, New Canaan, CT, on April 22. On May 11, Citizens Bank of Massachusetts, Boston, MA, opened a branch at Route 6 and 38, Cranberry Highway, East Wareham, MA. Berkshire Bank, Pittsfield, MA, opened a branch at 180 Delaware Avenue, Delmar, NY, on May 15. (Internal Notice 5/1/06, 5/16/06, 5/19/06)

Branch Closing On March 31, TD Banknorth, National Association, Portland, ME, closed its branch at 273 Main Street, Sanford, ME. (Internal Notice 5/16/06)

OTS Reports Thrift Earnings On May 19, 2006, the Office of Thrift Supervision (OTS) reported that the nation's thrift industry posted strong earnings and profitability, solid loan growth, and healthy asset quality in the first quarter of 2006. The thrift industry reported aggregate earnings of $4.22 billion for the first quarter of 2006, a five percent increase from the first quarter of 2005 but a two percent decline from earnings of $4.32 billion in the fourth quarter of 2005. The industry's return on average assets was 1.14 percent, down from 1.22 percent last year and 1.19 percent in the fourth quarter of 2005. OTS said that higher mortgage loan servicing fee income and lower loan loss provisions were offset by lower overall fee income and other noninterest income and higher noninterest expense. First-quarter one- to four-family mortgage originations totaled $142.6 billion, up from $141.5 billion last year but a 13 percent decline from $163.9 billion in the fourth quarter of 2005. OTS-regulated savings institutions accounted for 26 percent of total one- to four-family originations in the first quarter, up from 23 percent last year. According to OTS, asset quality was strong during the quarter, with the ratio of troubled assets to total assets totaling 0.64 percent. Loans 30 to 89 days past due declined to 0.61 percent of assets compared with 0.67 percent in the fourth quarter of 2005. The thrift industry's equity capital ratio was 9.36 percent at the end of the first quarter, and equity capital held by savings institutions reached $140 billion. At the end of the quarter there were 856 savings institutions, with total assets of $1.5 trillion, up 11.8 percent from last year. There were six problem thrifts at the end of the quarter, down from eight last year and seven at the end of the prior quarter. (OTS PR 5/19/06; SNL Bank , Thrift Daily 5/22/06)

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.