Mergers and
Acquisitions
Camden National Bank of Camden,
ME, completed its acquisition of Union
Trust Company of Ellsworth,
ME, on January 3, 2008. In connection with the
deal, Union
Bankshares Company merged
into Camden National Corporation of
Camden, ME. The combined organization has over $2.3
billion of assets and $1.5 billion of deposits.
Union
Trust Company will maintain its brand identity in
Hancock and Washington Counties, operating as a division
of Camden National Bank. (Internal sources, 1/11/08,
Camden National Corporation press release, 1/03/08)
Community National Bank of Derby, VT, completed its
acquisition of LyndonBank of Lyndonville, VT, on January
1, 2008. The combined company has total assets
of approximately $500 million and 15 branches throughout
northeastern and central Vermont. (Internal sources, 1/04/08;
Community Bancorp press release, 1/02/08)
Mt. Washington Bank of Boston, MA, and Roxbury
Highland Bank of Jamaica
Plain, MA, agreed to merge under the Mt. Washington Bank charter, the banks
announced on January 3, 2008. The date of the expected merger was not
released. Upon completion of the deal, which is subject to approval by
regulators and depositors of both banks, Mt. Washington Bank will have six
branches: three in South Boston, MA; two in Dorchester, MA; and one in Jamaica
Plain, MA, as well as a loan office in South Boston, MA. The merged bank will
have over $525 million in assets. (Boston Business
Journal, 1/3/08; Mt. Washington press release, 1/03/08)
On January 3, 2008, Norwood Co-operative
Bank of Norwood,
MA, and Walpole Co-operative Bank of Walpole, MA, announced
an agreement to combine in a “merger of mutuals.” The
combined entity will operate under a new name, and
will have over $750 million in consolidated assets.
The date of the merger has not yet been announced. (SNL
Bank and Thrift Daily, 1/07/08)
People’s United Financial Inc. of Bridgeport,
CT, completed its acquisition of Chittenden
Corp of
Burlington, VT, on January 2, 2008. Originally
announced in June 2007, the deal results in a
combined company with over $21 billion in assets and
more than 300 bank branches in Connecticut, Massachusetts,
Vermont, New Hampshire, Maine, and New York.
The six banks in the Chittenden group will continue
to do business under their existing names as subsidiaries
of People’s United Bank. These banks are: Chittenden
Bank of Burlington, VT; Flagship
Bank and Trust Company of Worcester, MA; Maine
Bank & Trust of Portland,
ME; Merrill Merchants Bank of Bangor, ME; Ocean
Bank of Portsmouth, NH; and the Bank
of Western Massachusetts of Springfield, MA. People’s United Bank
will continue to operate in Connecticut and New York. (SNL
Bank Mergers and Acquisitions Weekly, 1/07/08; People’s
United Financial, Inc. press release, 1/02/08)
Savings Institute Bank and Trust
Company of Willimantic,
CT, purchased certain assets and assumed certain liabilities
of a Colchester, CT, branch of Eastern
Federal Bank of Norwich, CT. The deal was effective at the
opening of business on January 12, 2008. (Internal
sources, 1/18/08)
Conversions
The
Bank of Western Massachusetts of
Springfield, MA, converted from a state charter to
a federal charter on January 1, 2008. The
Bank of Western Massachusetts is a unit of People’s United Bank of Bridgeport,
CT. (Internal sources, 1/04/08)
Danvers Bancorp, Inc., the stock holding company for
Danversbank, both of Danvers, MA, announced on January
9, 2008, that it had completed its conversion from
a mutual holding company to a stock holding company. (SNL
Bank and Thrift Daily, 1/14/08)
Flagship Bank & Trust Company of Worcester, MA,
converted from a state charter to a federal charter
on January 1, 2008. Flagship Bank & Trust
is a unit of People’s United Bank of Bridgeport,
CT. (Internal sources, 1/04/08)
Maine Bank & Trust Company of Portland, ME, converted
from a state charter to a federal charter on January
1, 2008. Maine Bank & Trust is a unit of
People’s United Bank of Bridgeport, CT. (Internal
sources, 1/04/08)
Merrill Merchants Bank of Bangor, ME, converted from
a state charter to a federal charter on January 1,
2008. Merrill Merchants is a unit of People’s
United Bank of Bridgeport, CT. (Internal
sources, 1/04/08)
Ocean Bank of Portsmouth, NH, converted from a state
charter to a federal charter on January 1, 2008. Ocean
Bank is a unit of People’s United Bank of Bridgeport,
CT. (Internal sources, 1/04/08)
New Branches/Relocations
Bank of New England of Salem, NH,
opened a branch at 37 Emerson Street in Haverhill,
MA, on November 8, 2007. On November 15, 2007,
the bank opened another branch at 3 Cross Street in
Methuen, MA. (Internal
sources, 01/11/08)
Danversbank, a unit of Danvers
Bancorp, Inc. of Danvers,
MA, opened its new operations center at 75 Sylvan Street
in Danvers, MA, on January 15, 2008. The facility
houses the bank’s customer support center, loan
servicing group, and deposit operations department. (SNL
Bank and Thrift Daily, 1/18/08; Danversbank press release, 1/15/08)
Hampden Bank of Springfield, MA, opened a branch on
187 Main Street, Indian Orchard, MA, on November 16,
2007. (Internal sources, 01/11/08)
Patriot National Bancorp, Inc. announced on January
8, 2008, that its unit Patriot
National Bank, both
of Stamford, CT, had opened a branch in Westport, CT,
and a second branch in Scarsdale, NY. (SNL
Bank and Thrift Weekly, 1/14/08)
RBS Citizens, NA of Providence, RI, opened a branch
at 771 Commonwealth Avenue in Boston, MA, on November
19, 2007. (Internal sources, 1/04/08)
Rockland Trust Company of Rockland, MA, opened a branch
at 381 Center Avenue in Abington, MA, on November 19,
2007. (Internal sources, 01/11/08)
TD Banknorth, NA of Portland, ME, opened a branch
on School Street in Mansfield, MA, on December 19,
2007. On December 21, 2007, the bank opened another
branch on 298 Washington Street in Brighton, MA. (Internal
sources, 1/04/08)
Correction
The January 2008 issue of Bank Notes reported
that Southern Massachusetts Telephone
Workers Credit Union of Fairhaven, MA, changed
its corporate title to Southern
Mass Credit Union as of January 1, 2008. The
date of the name change was actually June 23, 2003.
FDIC Proposes Rules to Determine
Deposits in the Event of Bank Failure
On
January 14, 2008, the FDIC proposed new rules that
would govern the determination of deposit balances
in the event that an FDIC-insured depository institution
should fail. The first part of the proposal would govern how, and at what point,
deposit account balances would be determined in the event of a failure, and
would apply to all FDIC-insured depository institutions.
The second
part of the rule proposes requirements to facilitate
the process of determining the insurance status of
depositors of large insured depository institutions
in the event of failure.
The
FDIC is soliciting comments on the Notice of Proposed
RuleMaking by
April 14, 2008. For more information on the proposed
changes, please view the FDIC’s January 14, 2008, “Financial
Institution Letter” at
www.fdic.gov/news/news/financial/2008/fil08002.html. (SNL
Interactive, 01/14/08;
FDIC Financial Institution Letter FIL-2-2008)
FRB Boston is Updating our Postal Mailing
List for Bank Notes
In the January and February 2008 Bank Notes distributed
by U.S. mail, we include a subscription renewal form
to be completed by any paper subscriber that wishes
to continue receiving Bank Notes. As noted
in the renewal form, customers can continue to receive
a paper version of Bank Notes or
convert to an electronic subscription.
The announcement
notes that anyone who does not submit a renewal form
by April 1, 2008, will be removed from our mailing
list.
If you currently receive Bank
Notes electronically,
you need not take any action. Paper subscribers
do need to respond to our request, and may do so by
faxing or mailing the subscription form to the Bank
Notes editor.
An online subscription form also is available at www.bos.frb.org/economic/banknote/index.htm.
Because
of the large number of Bank Notes subscribers,
it will take us several weeks to process renewal requests. In
addition, we will be unable to switch subscribers from
paper to email distribution until the April 2008 issue
of Bank Notes. We appreciate all subscribers,
and thank you for your continued interest in Bank Notes, and
for helping us enhance our distribution process.
Strong Acceptance of NACHA’s
Back Office Conversion (BOC) Code in 2007
In
March 2007, the National Automated Clearinghouse
Association’s (NACHA)
SEC code “Back Office Conversion” or BOC became effective. Initially,
it was estimated that 900,000 BOC conversions would occur in 2007. However, BOC
caught on more quickly than expected ― the Reserve Banks alone processed
3.3 million BOC transactions last year.
As discussed in the May
2007 issue of Bank Notes,
BOC allows retailers and billers that accept checks
at point of sale or at manned bill payment locations
to convert eligible checks to ACH debits in their back office at a later time.
In comparison, Point of Purchase, or “POP,” transactions convert
a consumer’s check to an ACH payment at the time the purchase is made.
A key benefit of BOC is
that it offers a single process for merchants to electronically
deposit all check payments with their banks. Their
banks can then determine which checks are eligible
for conversion and whether Check 21 or ACH
is the most appropriate cost-efficient method to clear each check.
BOC offers
other benefits to merchants. With POP transactions,
for example, MICR readers are required at each checkout
register. With BOC, MICR readers
are needed only in the back office for end-of-day capture. This can reduce time
spent training cashiers to use the equipment. BOC can also reduce losses
from returned checks, reduce bank fees, and decrease transportation costs (e.g.,
armored car expenses).
To help financial institutions and their customers
understand and implement BOC, the Reserve Banks have
developed an online Back
Office Conversion (BOC) Online Resource Center, available
at www.frbservices.org/fedach/index.html. Information
on the site includes a high-level comparison of
BOC, POP and ARC conversions; guidance for institutions
that plan to implement BOC; and templates financial
institutions and merchants can use to educate their
customers about BOC. (NACHA
press release, 3/12/07; internal sources)
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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. Bank Notes is available
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