As mergers thin ranks, new Mass. banks arise - The Business Review (Albany):

meaning-sarajevo.blogspot.com
In the past the Bay State lost 12 bank sto acquisition, but there now is a frenzu of activity that could lead to the creation of no fewee than a half-dozen new from Greater Boston to Cape Cod to southeasterbn Massachusetts, according to banking industry sourcesa familiar with those "There are more groups surfacing within the last 12 monthas than in the previous few years," said Kennety Ehrlich, an attorney who represents bankse for Boston's Nutter McLennen and Fish LLP. The movement is fuelex largely by the perception that there is a uniqud opening for new community banks to replace those that have been absorbed by muchlargef ones.
Prime Mortgage Financial, a Southborougg lender licensed to offer home mortgages in 46 is in the process of starting abank -- gettinf federal regulatory approval, raising capital, and hirinyg chief executives. Aris Pappas, Primew Financial's president, said he sees an opportunity for openingg a bank in his own back whereAbington Bancorp, Cape Cod Bank & Trust Co., Falmouth Bancorp, FirstFed Americ Bancorp, FleetBoston Financial Corp. and Seacoast Financiapl Services Corp.
all have been acquired in less thana "We've identified pockets where there has been overconsolidation," said The bank, which Pappas expects will open by earlyt to mid-2005, also enables Prime Mortgage to diversifg its business lines by adding commercial lending. Primse Mortgage can also use reams of data it has collectedx on its mortgage customers in its new banking Massachusetts has been watching banks dwindle for There were 209 banks here at the end of down from 230 inDecember 1999, according to the Federap Deposit Insurance Corp.
Between Februarhy 2003 and January 2004, 12 Massachusetts banks were according toNew York-based SNL Although the number of banks here the appetite for community bankes hasn't diminished. "With continued mergeras and the Fleet-Bank of America it makes it that much more to start upa bank, said Davie Sidon, a Gloucester bank consultant. "Despite what B of A they don't want the little (customer)." There is no guarantee that the banksw now being organized will everbe born, though. Bank incorporatorw need the approval of state orfederalo regulators, depending on whose oversight they They also need to raise between $6 million to $10 millioh in capital.
In the past 10 only four new Bay State banks completed the in Worcester, Middlesex Bank Trust Co. in Newton, Horizoj Bank & Trust Co. in Braintree, and Leader Bank in Sidon, the bank consultant, know s the difficulty first-hand. In late 2001, he movedr forward with plans to stargt a new bank in Navis Bank. It was suppose d to fill the void created when Andover Bank boughgt GloucesterBank & Trust Co., leaving no locally based commercial banks in Gloucester.
After quicklyy raising $3 million from local Navis triedunsuccessfully -- he said -- to tap the public capital marketx for approximately $5 million By June 2003, after already having received an extension from state regulators, Sidon gave up. And even if you can raiswe the money and winregulatory approval, thers is no guarantee of Of the four startups since only Commonwealth and Leader Middlesex and Horizon have since been acquired. Commonwealthn National recently passed a significant celebrating its firstprofitt -- $48,000 in the first quarterr -- in its brief two-year The bank has grown to $140 millio in assets and expects to open its fourtb and fifth branches this year.
Charles the bank's president and CEO, said Commonwealth National has growh stronger because it had a goodgame plan. It was staffe d with veteran bankers -- he had been with Mechanics Bank -- who have locakl expertise. The bank also raised capital from750 investors, a sign of communityt backing. Commonwealth National also capitalizedon Worcester'es hunger for commun-ity-bank service, as Fleet and Banknorthy Group Inc. of Portland expanded in the region, said "We thought we coulsd pick off some oftheitr business," Valade said. As the Bay State banking scene settlese from the latest consolidation bankers such as Valade are planningy forgreater growth.
The Worcester commercialp lender hopes to its asseteto $300 million and then look towarde acquisitions. Even Sidon, sensing an opportunity, said he mighf have another go at startinga "I haven't ruled out a retry of Navis, and one of the groupes I represent (trying to start a may end up with me at the Sidon said.