Magazine article American Banker

BayBanks to Consolidate Its Mass., Conn. Units

Magazine article American Banker

BayBanks to Consolidate Its Mass., Conn. Units

Article excerpt

Following the lead of others moving towards interstate branching, BayBanks Inc. of Boston announced plans to merge its three banks covering Massachusetts and Connecticut.

The single entity, BayBank NA, will have its headquarters in Boston.

With $11 billion in assets, the bank would be among the 50 largest banks

in the country. The largest BayBanks unit under the current structure, which is based in Burlington, Mass., ranked 69th at yearend 1994.

"While our multiple-bank structure has had many benefits over the years," said William M. Crozier Jr., chairman and president of the holding

company, "it has been more of a challenge to communicate the depth of our financial capacity ... than if our capital and assets were on one bank balance sheet."

The company as a whole has 218 full-service branches serving 176 cities

and towns in Massachusetts, Connecticut, and New Hampshire.

BayBanks is joining a trend that has been spurred in part by the 1994 federal interstate branching legislation, which will lower most of the remaining barriers to setting up multistate banks with single charters.

BankAmerica Corp. announced plans last week to combine its units in Idaho and Washington, which will be that company's first subsidiary operating bank branches in more than one state. But BankAmerica's move is coming under another rule that permits a bank to move its headquarters within a 30-mile limit, even if a state line is crossed.

Both BayBanks and BankAmerica said the mergers would allow them to streamline operations, lower some costs, and make it easier to comply with

regulations. …

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