Peoples Heritage Financial Group Acquires Banknorth Group, Creating Second-Largest Deposit Market Share in Vermont

Strategic Insights -

Peoples Heritage Financial Group, a leading financial institution in New England, has announced its acquisition of Banknorth Group, paving the way for a significant expansion of its presence in the region. Following regulatory approvals, the merger is set to be finalized on or about May 9, 2000, creating a formidable financial powerhouse with total assets of approximately $18.4 billion.

Key Takeaways:

  • The merger will result in a combined company with a strong presence in Massachusetts, New Hampshire, Vermont, and upstate New York, with a second-largest deposit market share in Vermont.
  • Peoples Heritage will take on the Banknorth name at the holding company level and trading symbol, while continuing to operate its banking subsidiaries under their existing names.
  • The combined company will operate a diverse range of banking subsidiaries, including Peoples Heritage Bank, Bank of New Hampshire NA, First Massachusetts Bank NA, GBT in Connecticut, and Evergreen Bank NA in New York.
  • The merger will enhance Peoples Heritage's presence in the region, providing a stronger foundation for its growth and expansion.
  • The Company will maintain its headquarters in Portland, Maine, and will continue to be led by Chairman, President and Chief Executive Officer William J. Ryan.
  • The acquisition is seen as a strategic move to enhance Peoples Heritage's commercial banking capabilities and strengthen its ties to local communities.

Statistics:

  • The combined company's total assets will be approximately $18.4 billion.
  • The merger will create a second-largest deposit market share in Vermont.
  • Peoples Heritage will operate a diverse range of banking subsidiaries, including:

+ 5 national banks: Bank of New Hampshire NA, First Massachusetts Bank NA, GBT in Connecticut, Evergreen Bank NA in New York, and Howard Bank NA.

+ 2 Maine-chartered banks: Peoples Heritage Bank (planning to convert to a national bank at a later date) and Franklin Lamoille Bank NA.

  • The combined company will have a presence in all New England states except Rhode Island.

Sources:

  • BUSINESS WIRE, April 24, 2000