Merger Announcements

SIS Bancorp, Springfield, MA has entered into a definitive agreement to acquire Glastonbury Bank and Trust Company, Glastonbury, CT. Glastonbury Bank will operate as an independent subsidiary. As of June 30, 1996, SIS Bancorp, parent company of Springfield Institution for Savings, Springfield, MA, had total deposits of $944.4 million and ranked 25th among all commercial banking and thrift organizations in New England. As of the same date, Glastonbury Bank and Trust Company had total deposits of $194.5 million and ranked 162nd.

Hubco, Inc., Mahwah, NJ has signed a definitive agreement to acquire Bank of Southington, Southington, CT. Bank of Southington will be merged into Hubco subsidiary Lafayette American Bank and Trust Company, Bridgeport, CT. As of yearend 1996, Hubco, Inc. had total deposits of approximately $1.2 billion in Connecticut. As of June 30, 1996, Bank of Southington had total deposits of $109.3 million and ranked 65th among all commercial banking and thrift organizations in Connecticut. (N.Y. Times, 8/19; American Bkr., 8/20; Boston Globe, 8/20; SNL Weekly BankFax, 8/25/97)

Merger Completions

On August 1, People's Savings Bank , Trust, New Britain, CT merged with Webster Bank, Waterbury, CT under the charter and title of Webster Bank. As of June 30, 1996, Webster Financial Corporation, Waterbury, CT, parent company of Webster Bank, had total deposits of $3.1 billion and ranked third among all commercial banking and thrift organizations in Connecticut. As of the same date, People's Savings Financial Corporation, New Britain, CT, parent company of People's Savings Bank , Trust, had total deposits of $358.8 million and ranked 29th.

On August 8, First Bank of West Hartford, West Hartford, CT merged with New England Bank and Trust Company, Windsor, CT under the charter and title of New England Bank and Trust Company. As of June 30, 1996, New England Community Bancorp, Windsor, CT, parent company of New England Bank and Trust, had total deposits of $300.3 million and ranked 32nd among all commercial banking and thrift organizations in Connecticut. As of the same date, First Bank of West Hartford had total deposits of $69.8 million and ranked 78th. (Internal Notice, 8/4, 8/8; SNL Weekly BankFax, 8/4, 8/11, 8/17; American Bkr., 8/12, 8/15/97)

Name Changes

On August 1, Bank of Boston (Maine), National Association, South Portland, ME changed its title to BankBoston Maine, National Association. As of June 30, 1996, Bank of Boston Corporation, Boston, MA, parent company of BankBoston Maine, National Association, had total deposits of $36.7 million and ranked 40th among all commercial banking and thrift organizations in Maine.

On August 1, Sachem Trust, National Association, Guilford, CT changed its title to Webster Trust Company, National Association. (Internal Notice, 8/8/97)

Bank Opening 

On August 1, Boston Equiserve Trust Company, National Association, Canton, MA commenced operations. This institution is a non- depository trust company. (Internal Notice, 8/8/97)

Franklin Savings Bank Forms Holding Companies

Franklin Savings Bank, Farmington, ME announced that it will reorganize into a two tier, no-stock mutual holding company. The mutual holding company will be known as FSB Bancorp (MHC) and the mid-tier bank holding company will be known as FSB Bancorp. As of June 30, 1996, Franklin Savings Bank had total deposits of $188.3 million and ranked 15th among all commercial banking and thrift organizations in Maine. (SNL Weekly BankFax, 8/11/97)

Boston Private Bancorp to Acquire Westfield Capital

Boston Private Investment Management, Boston, MA has agreed to acquire Westfield Capital Management, Boston, MA, an investment firm with $1.3 billion of assets under management. The resulting company will retain the Westfield Capital name and will operate as an independent subsidiary. As of June 30, 1996, Boston Private Bancorp, Boston, MA, parent company of Boston Private Bank and Trust Company, Boston, MA, had total deposits of $197.8 million and ranked 84th among all commercial banking and thrift organizations in Massachusetts. (Boston Globe, 8/14,8/15; American Bkr., 8/18; SNL Weekly BankFax, 8/18/97)

Shareholder Approvals

The shareholders of CFX Corporation, Keene, NH have approved the proposed acquisition of Community Bankshares Inc., Concord, NH and Portsmouth Bank Shares, Portsmouth, NH. Additionally, the shareholders of each of the thrifts have approved the sale of their companies to CFX Corporation. Both transactions, which are subject to regulatory approval, are expected to close in the third quarter. As of June 30, 1996, CFX Corporation, parent company of CFX Bank, Keene, NH, had total deposits of $661.8 million and ranked third among all commercial banking and thrift organizations in New Hampshire. As of the same date, Community Bankshares, parent company of Concord Savings Bank, Concord, NH and Centerpoint Bank, Bedford, NH, and Portsmouth Bank Shares, parent company of Portsmouth Savings Bank, Portsmouth, NH, had total deposits of $404.0 and $211.8 million and ranked seventh and 14th, respectively.

The shareholders of BNH Bancshares Inc., New Haven, CT have approved the acquisition of the bank by Royal Bank of Scotland Group plc, Edinburgh, Scotland, subsidiary Citizens Financial Group Inc., Providence, RI. The company expects to complete the transaction by the end of the third quarter, pending regulatory approval. As of June 30, 1996, BNH Bankshares, parent company of Bank of New Haven, New Haven, CT, had total deposits of $285.6 million and ranked 34th among all commercial banking and thrift organizations in Connecticut. As of the same date, Royal Bank of Scotland Group had total deposits of $683.4 million and ranked 14th. (SNL Weekly BankFax, 8/4, 8/18/97)

FDIC Withdraws Deposit-Shifting Rule

The Federal Deposit Insurance Corporation (FDIC) has decided to withdraw a proposed rule aimed at blocking the shift of an institution's deposits between deposit insurance funds. The rule, proposed as part of last year's Savings Association Insurance Fund (SAIF) capital legislation, was intended to stop the potential threat of an institution moving deposits from the SAIF to the Bank Insurance fund (BIF) to evade higher assessment fees. The FDIC agreed with the majority of commenters that the practice of deposit shifting should be monitored on a case-by- case basis, rather than by an additional statute. (SNL Weekly BankFax, 8/4/97)

OTS Provides Thrifts New Software for Call Reports

The Office of Thrift Supervision (OTS) is providing updated software to help the institutions it oversees prepare regulatory reports electronically. The program, from DPSC Software Inc., Calabasas, CA, updates the one that the OTS provided thrifts in 1993 when electronic reports were first required. (American Bkr., 8/7/97)

Fleet Financial Group to Buy Investment Management Firm 

Fleet Financial Group, Boston, MA has signed a definitive agreement to acquire privately held Columbia Management Company, Portland, OR, a money manager with $22 billion in assets under management, including $6 billion in a family of 12 mutual funds. As of June 30, 1996, Fleet Financial Group had total deposits of $38.1 billion and ranked first among all commercial banking and thrift organizations in New England. (American Bkr. 8/14, 8/15; Boston Globe, 8/14, 8/15; N.Y. Times, 8/14, 8/15; SNL Weekly BankFax, 8/18/97)

FDIC and OCC Introduce Internet Service  

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have jointly unveiled a new Internet service that makes industry branch information available to the public in one location. Previously, the two organizations published information about branches and deposits at insured banks and thrifts separately. The new "Bank/Thrift Deposit Inquiry" service can be found at www.fdic.gov or www.ots.treas.gov. (SNL Weekly BankFax, 8/11/97)

FDIC Eases Demand Deposit Premium Cap

The Federal Deposit Insurance Corporation (FDIC) has eliminated the cap on premiums that can be paid to holders of demand deposit accounts, however the premium's amount must be tied to something other than how much is in the account or how long it is held. The decision allows state banks regulated by the FDIC to make incentive payments to their customers for using automated teller machines, debit cards, or Internet banking services. The FDIC action took effect on July 30. (American Bkr., 8/8/97)

Fed Eliminates Underwriting Firewalls

The Federal Reserve Board of Governors (Fed) has approved the elimination of nearly 20 firewalls between bank holding companies and their securities underwriting subsidiaries. The changes will make it easier for bank-affiliated section 20 units to compete against securities firms by allowing banks to extend credit to companies that purchase securities from underwriting affiliates, to offer letters of credit and credit enhancements in conjunction with underwritings, and to buy stocks from related securities firms. The Fed's amendments are scheduled to become effective by the end of October. (American Bkr., 8/21; SNL Weekly BankFax, 8/25/97)

 FDIC Finalizes Rule on Out-of-State Lending

The Federal Deposit Insurance Corporation (FDIC) has imposed a new rule on out-of-state branch lending. Under the new rule, out-of-state branches will be required to maintain loan-to- deposit ratios equal to half the average of all banks in the state. If a branch does not meet this requirement, examiners would determine whether it is making a reasonable effort to meet the credit needs of its community and if not, the branch could be closed and the bank banned from opening new branches in the state. The rule will take effect in late September, 30 days after it is published in the Federal Register. (American Bkr., 8/27/97)

SBA to Revise 8(a) Business Program

The Small Business Administration (SBA) has released a proposed rule to revise the eligibility requirements for its 8(a) small and disadvantaged business development program. The agency's 8(a) program is the largest government program providing aid to minority businesses. The changes would expand the SBA program by making it easier for businesses operated by non-minority women to qualify for "disadvantaged" status in seeking contracts. The official name of the program would be changed from the Minority Small Business and Capital Ownership Development program to the 8(a) BD program "to better reflect the purpose of the program." (SNL Weekly BankFax, 8/18/97)

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.