November 1, 1997
Vol. XXVI, No. 24

Merger Announcements

New England Community Bancorp, Windsor, CT has entered into a definitive agreement to acquire Community Savings Bank, Bristol, CT. The merger is expected to be completed in the fourth quarter, subject to shareholder and regulatory approvals. As of June 30, 1997, New England Community Bancorp, parent company of New England Bank and Trust, Windsor, CT and Equity Bank, Wethersfield, CT, had total deposits of $385.1 million and ranked 26th among all commercial banking and thrift organizations in Connecticut. As of the same date, Community Savings Bank had total deposits of $65.9 million and ranked 73rd.

Eastern Bank Corporation, Lynn, MA, parent company of Eastern Bank, Lynn, MA, has entered into a definitive agreement to acquire Emerald Isle Bancorp, Quincy, MA, parent company of Hibernia Savings Bank, Quincy, MA. The deal is expected to be completed in early 1998. As of June 30, 1997, Eastern Bank Corporation had total deposits of $1.7 billion and ranked seventh among all commercial banking and thrift organizations in Massachusetts. As of the same date, Emerald Isle Bancorp had total deposits of $363.5 million and ranked 44th.

Liberty Bank, Middletown, CT has entered into a definitive agreement to acquire First New London Savings and Loan Association, New London, CT. The merger is expected to be completed by the end of October. As of June 30, 1997, Liberty Bank had total deposits of $1.2 billion and ranked tenth among all commercial banking and thrift organizations in Connecticut. As of the same date, First New London had total deposits of $26.0 million and ranked 84th.

Peoples Heritage Financial Group, Portland, ME has entered into a definitive agreement to acquire CFX Corporation, Keene, NH. The deal is expected to be completed in March 1998, subject to shareholder and regulatory approvals. As of June 30, 1997, Peoples Heritage Financial Group, parent company of Peoples Heritage Savings Bank, Portland, ME, Bank of New Hampshire, Manchester, NH and Family Bank, FSB, Haverhill, MA, had total deposits of $4.3 billion and ranked sixth among all commercial banking and thrift organizations in New England. As of the same date, CFX Corporation, parent company of CFX Bank, Keene, NH, Safety Fund National Bank, Fitchburg, MA, and Orange Savings Bank, Orange, MA, had total deposits of $1.3 billion and ranked 20th.

Webster Financial Corporation, Waterbury, CT has entered into a definitive agreement to acquire Eagle Financial Corporation, Bristol, CT. As of June 30, 1997, Webster Financial Corporation, parent company of Webster Bank, Waterbury, CT, had total deposits of $4.0 billion and ranked fourth among all commercial banking and thrift organizations in Connecticut. As of the same date, Eagle Financial Corporation, parent company of Eagle Bank, Torrington, CT, had total deposits of $1.4 billion and ranked eighth.

(American Bkr., 10/5, 10/28; Boston Globe, 10/28; N.Y. Times, 10/5, 10/24, 10/28; SNL Weekly BankFax, 10/6, 10/20, 10/27/97)

On October 1, Atlantic Bank, National Association, South Portland, ME merged with Peoples Heritage Savings Bank, Portland, ME under the charter and title of Peoples Heritage Savings Bank. As of June 30, 1997, Atlantic Bancorp, Portland, ME, parent company of Atlantic Bank, had total deposits of $370.2 million and ranked fifth among all commercial banking and thrift organizations in Maine. As of the same date, Peoples Heritage Financial Group, Portland, ME, parent company of Peoples Heritage Savings Bank, had total deposits of $2.1 billion and ranked second.

On October 1, South Weymouth Savings Bank, Weymouth, MA merged with Weymouth Savings Bank, Weymouth, MA under the charter of Weymouth Savings Bank and the title of South Shore Savings Bank. As of June 30, 1997, South Weymouth Savings Bank had total deposits of $255.5 million and ranked 61st among all commercial banking and thrift organizations in Massachusetts. As of the same date, Weymouth Savings Bank had total deposits of $159.7 million and ranked 100th.

On October 25, Northeast Bank, FSB, Auburn, ME merged with Cushnoc Bank and Trust Company, Augusta, ME under the charter and title of Northeast Bank. As of June 30, 1997, Northeast Bancorp, Auburn, ME, parent company of Northeast Bank, had total deposits of $155.3 million and ranked 20th among all commercial banking and thrift organizations in Maine. As of the same date, Cushnoc Bank and Trust Company had total deposits of $18.5 million and ranked 46th.

(Internal Notice, 10/1, 10/27; SNL Weekly BankFax, 10/20/97)

The shareholders of Granite State Bankshares Inc., Keene, NH have approved the proposed acquisition of Primary Bank, Peterborough, NH. As of June 30, 1997, Granite State Bankshares, parent company of Granite Bank, Keene, NH, had total deposits of $330.0 million and ranked seventh among all commercial banking and thrift organizations in New Hampshire. As of the same date, Primary Bank had total deposits of $312.1 million and ranked eighth among all commercial banking and thrift organizations in New Hampshire.

(SNL Weekly BankFax, 10/13/97)

On October 17, Bank of Boston Connecticut, Hartford, CT merged with BankBoston, National Association, Boston, MA under the charter and title of BankBoston, National Association. As of June 30, 1997, BankBoston Corporation, Boston, MA, parent company of BankBoston, National Association and Bank of Boston Connecticut, had total deposits of $32.5 billion and ranked second among all commercial banking and thrift organizations in New England.

(Internal Notice, 10/17/97)

KeyBank, Cleveland, OH plans to sell thirteen of its Maine branch offices to four community institutions. Camden National Bank, Camden, ME has agreed to acquire four branches from KeyBank. The branches, with approximately $52.1 million in deposits, are located in the Maine communities of Bucksport, Damariscotta, Vinalhaven, and Waldoboro. Skowhegan Savings Bank, Skowhegan, ME will acquire six branches from KeyBank, Sanford Institution for Savings, Sanford, ME will purchase two, and Kingfield Bank, Kingfield, ME will buy one.

All branch deals are expected to be completed in the first quarter of 1998. As of June 30, 1997, KeyCorp, Cleveland, OH, parent company of KeyBank, had total deposits of $2.4 billion and ranked first among all commercial banking and thrift organizations in Maine. As of the same date, Skowhegan Savings Bank had total deposits of $216.8 and ranked 11th; Sanford Institution for Savings had total deposits of $106.9 and ranked 28th; KSB Bancorp, Kingfield, ME, parent company of Kingfield Bank, had total deposits of $106.8 and ranked 29th; and Camden National Corporation, Camden, ME, parent company of Camden National Bank, had total deposits of $352.5 million and ranked sixth.

(American Bkr., 10/20; SNL Weekly BankFax, 10/20/97)

BankBoston Corporation, Boston, MA has announced that it will close 12 of its branches in Massachusetts and New Hampshire as part of an extensive examination of its retail banking operations. In Massachusetts, branches in Dorchester, Roslindale, West Roxbury, Gardner, Hudson, South Weymouth, Pembroke, Worcester, and Fall River, with combined deposits of approximately $379.4 million, will be closed. In New Hampshire, offices in Candia, Chester, and Windham, with combined deposits of approximately $28.5 million, will be closed. The closings are expected to occur in December 1997 and January 1998.

(Boston Globe, 10/4/97)

On October 1, Norwalk Savings Society, Norwalk, CT changed its corporate name to NSS Bancorp Inc., Norwalk, CT. As of June 30, 1997, Norwalk Savings Society had total deposits of $435.0 and ranked 23rd among all commercial banking and thrift organizations in Connecticut.

On October 1, Sandwich Bancorp, Sandwich, MA, a new bank holding company, was formed through the acquisition of Sandwich Co-operative Bank. As of June 30, 1997, Sandwich Co-operative Bank, Sandwich, MA had total deposits of $403.2 million and ranked 37th among all commercial banking and thrift organizations in Massachusetts.

On October 2, Northway Financial Inc., Berlin, NH, a bank holding company, was formed through the acquisition of Berlin City Bank, Berlin, NH. As of June 30, 1997, Berlin City Bank had total deposits of $208.2 million and ranked 14th among all commercial banking and thrift organizations in New Hampshire.

On October 3, Alliance Bancorp of New England, a new stock holding company, was formed through the acquisition of Tolland Bank, Tolland, CT. As of June 30, 1997, Tolland Bank had total deposits of $213.6 million and ranked 40th among all commercial banking and thrift organizations in Connecticut.

On October 8, Falmouth Co-operative Bank, Falmouth, MA completed its reorganization and became a subsidiary of the newly formed holding company, Falmouth Bancorp Inc., Falmouth, MA. As of June 30, 1997, Falmouth Co-operative Bank had total deposits of $70.3 million and ranked 169th among all commercial banking and thrift organizations in Massachusetts.

(SNL Weekly BankFax, 10/6, 10/13/97)

Fleet Financial Group, Boston, MA has agreed to acquire the credit card business of Advanta Corporation, Horsham, PA for approximately $500 million in cash and assumed liabilities. Fleet would merge Advanta's credit card business with its own, creating the ninth-largest issuer of credit cards, with $14 billion in receivables.

(American Bkr., 10/24, 10/29; Boston Globe, 10/28, 10/29; N.Y. Times, 10/29/97)

Peoples Heritage Financial Group, Portland, ME has completed the acquisition of Morse, Payson & Noyes Insurance, effective October 10. Morse, Payson & Noyes is Maine's largest insurance broker, with 145 employees and $125 million in policy premiums. It will be a subsidiary of Peoples Heritage Bank, Portland, ME.

(SNL Weekly BankFax, 10/13; American Bkr., 10/16/97)

The Federal Reserve Board of Governors (Fed) has approved a new risk-focused consumer compliance program and extended the frequency of consumer examinations for state member banks and foreign bank organizations. The new examination process will rest on regulation and product risk. The new exam cycle will be increased to 36 months for member banks with exemplary compliance histories and assets of less than $250 million. Banks with assets in excess of $250 million will be examined every 24 months, and banks with examination problems will be examined yearly. Both the new program and schedule will be phased in during 1998.

(SNL Weekly BankFax, 10/6/97)

NOTE: Items in this publication focus on developments affecting banking structure in New England. The items are condensations of articles from a selected group of daily newspapers and press releases of federal and state financial regulatory agencies. Their reproduction does not imply our endorsement of the accuracy, opinions or policies reflected in the subject matter. BankNotes is available without charge. To be added to the electronic mailing list or to the paper distribution list, send an e-mail message to Boston.BankNotes@bos.frb.org. If unable to do so, call (617) 973-2860. To access BankNotes on the Web, check the Boston Fed's web site at www.bos.frb.org/economic/banknote/index.htm. For updated banking structure information, check the Boston Fed's web site at www.bos.frb.org/bankinfo/struct/index.htm.