TD Banknorth
TD Banknorth is a
banking and
insurance company serving primarily the northeastern area of the
United States, with headquarters in
Portland, Maine. Since August 2004, its majority owner is the Canadian
Toronto-Dominion Bank.
Its operating companies are Banknorth Connecticut, Peoples Heritage Bank (in Maine), Banknorth Massachusetts, Bank of New Hampshire, Evergreen Bank (in New York),Hudson Bank, Banknorth Vermont, and Banknorth Insurance Group.
On
March 3,
2005, TD Banknorth announced that it had acquired the naming rights to the FleetCenter arena in
Boston, Massachusetts, which was renamed the
TD Banknorth Garden on
July 1,
2005.
The origins of Banknorth Group, now
TD Banknorth, lie in a number of local
Maine savings banks: The Local Roots of the Joint Banknorth Routes for the State of Vermont dates back to 1802 with Woodstock National Bank.
The Portland Savings Bank
The Portland Savings Bank was established in
1852, and was initially open only on Wednesdays and Saturdays from 11 to 1.
Albion K. Parris,
Portland's mayor, was the first President. Support of community and public projects was an important objective of the bank. It weathered the great fire of Portland and the financial panics in
1873 and
1878, and at its 50th anniversary in
1902 had 24,000 depositors, deposits of almost $10,000,000, and a staff of nine. In
1906, a branch on Congress Street joined the Head Office branch, and nineteen years later all business moved to Congress Street. The
Stock Market Crash of 1929 and the ensuing
Great Depression gravely threatened the Bank. To handle the number of properties it came to own through foreclosure, the bank established a "Real Estate Department" or property management division. Returning to prosperity with the post-war mortgage boom, Portland Savings was revolutionized under the leadership of Roger Lambert, CEO from
1965 to
1981. He encouraged the creation of a more dynamic board of directors and established a wide array of bank services, following the model of the commercial banks. He expanded Portland Savings' portfolio of commercial loans and introduced innovative retail products such as
money market certificates. Between
1965 and
1981 the bank grew from 2 to 13 branches across Maine, with assets increasing from $63 to $294 million
People's Savings Bank
People's Savings was founded in
1875 in
Lewiston, Maine. A conservative but successful bank, it prospered with the local mill economy. Early in the twentieth century the bank innovated by opening $1 accounts for all babies born in the area, on condition that there are no withdrawals for ten years â€" the policy lasted into the
1970s. Christmas and vacation clubs were also established. Local banks suffered greatly from the decline of the mill economy in the
1920s and
1930s, but enjoyed a recovery during
WWII, with industrial renewal and a defense bond business. In the post-war period People's helped finance the new industries that were gradually replacing textiles in the local economy.
Rockland Savings Bank/Heritage Savings Bank
Rockland Savings was established in
1868 in
Rockland, Maine, (following attempts in
1855 and
1861). In
1974, it changed its name to the Heritage Savings Bank. In
1978, it merged with:
* Penobscot Savings â€"
Bangor. Founded in
1869 and a pioneer in savings for children in association with the local school system. A "small conservative bank in a small conservative city," it did not expand its branch system until
1961, when a second office was opened.
* Waterville Savings - founded in
Waterville in
1869.
Franklin County Savings Bank & Trust Co.
Franklin County Savings Bank was founded in 1899 in St. Albans, Vermont The bank maintained a being a Franklin County Bank until the Merger of Lamoille County Bank & Trust Company in Hyde Park & Stowe in the late 1960's or early 70's. After the Merger the bank adopted a new name as Franklin Lamoille Bank. The Bank also incorperated a Holding company named Banknorth.
Woodstock National Bank
Woodstock National Bank was founded in 1802 and merged into the Howard Bancorp. The Woodstock National Bank maintained its name until June 1999 when it merged into its sister bank First Vermont Bank & Trust Company.
Granite Savings Bank & Trust Company
The Granite Saving Bank & Trust Company was founded in Barre, VT in 1885. The Banks first office is now the home for a senior citizen group that is located on North Main Street Barre. (Approx 135 North main street) The Current location that served as the main headquarters was/is 36 North Main Street, Barre. The Front first front half is bricks and the second front half is all granite. The Name of the bank is due to Barre, Vermont being the granite city for the New England. Banknorth Group Inc. planed to maintain the name until they were bought out by Peoples (Maine). So in 2000 Granite Sav. Bank & Trust merged with its sister bank The Howard Bank. (There was a lot of questions about the move as to why Granite was absorbed and why. The Ways were in terms of the fact that Franklin Lamoille Bank & First Vermont Bank were still running under their names. (The Reason was simple, Just like Woodstock National Bank, Granite was only a 5 branch bank or less) Some customers never noticed the change until their bank statement arrived.
The Howard Bank N.A.
The Howard National Bank & Trust Company of Burlington was founded in 1870, (Burlington, VT)The Bank bought out a few banks and took them under the Howard Bank name. The Bank changed its name and shorten the name when the became a more state wide banking company. The Bank also created a Banking holding company as "Howard Bancorp" in 1995 & 1996 The Howard Bancorp merged with Banknorth Group Inc. In the deal Howard Bancorp decided to take on the Banknorth Group name.
First Vermont Bank & Trust Company
The Bank was founded in 1906. The Company bought out Franklin Lamoille Bank and was one of the first banks to offer On-line Banking for the tellers. However when Howard Bancorp assumed Banknorth Group, they found it to expensive to upgrade their systems. In 1999 The bank took over Woodstock Nat'l Bank. In 2002 was a change for all three vermont banks in terms that they were all merged into Banknorth N.A. Vermont, a division of Banknorth N.A.
The Oldest Route that Banknorth currently has recorded for the Vermont Banking company is Woodstock National Bank. Also on the list is dating All the vermont banking companys to the 1800's with the exception of FVB in 1906.
"The late
1970s and early
1980s were difficult years for the thrift industry. As inflation and interest rates soared into double digits, savings banks in
Maine and elsewhere found themselves forced to pay higher
interest rates to attract depositors while maintaining a large portfolio of long-term low-interest mortgages". In
1981 Portland Savings declared a loss and recognized a pressing need for consolidation in the local banking market. The following year Portland and People's arranged a merger and the new bank adopted the People's name. In
1984, Peoples and Heritage merged as Peoples Heritage â€" a billion dollar institution with
Wes Bonney as the first President. The new bank, with a total of 35 branches, moved quickly to expand its
ATM network, introduce innovations such as Cashline phone banking, and develop an emphasis on commercial
loans â€" a new development for a traditional savings bank. In
1986, in an effort to acquire capital for expansion Peoples moved from being a
mutual bank to a
public corporation.
With its new resources the bank planned to grow its asset base from $1 billion to $4 billion within five years. This was to be accomplished through acquisitions, an expanded branch network, and a rapid increase in commercial lending and
real estate. In
1988, Peoples Heritage reorganized itself as a
bank holding company in order to gain greater flexibility in making bank and non-bank acquisitions.
Acquisitions in the period were:
* Northeast Leasing â€"
1987* Oxford Bank and Trust Company â€" 5 branches -
1988* Six branches from Casco Northern Bank â€"
1989* First Coastal Bank, Portsmouth NH â€"
1989* Merchants National Bank of Dover
* First National Bank of Portsmouth, founded
1824* Had a $100 million personal
trusts department, first venture of Peoples into this area.
In
1989 the
Maine real estate market collapsed. In this period of crisis,
William J. Ryan became the new President and CEO. In
1990, the
recession resulted in 111 bank closures or mergers in
New England. Peoples' stock began to fall as serious problems emerged with bad loans, particularly in the faltering real estate sector, but also in the commercial realm. In the period 1990 to
1992, Peoples was losing money and
federal regulators issued cease and desist order restricting the bank's freedom in the loans area. In response, the management team was shaken up and special teams assigned to loans review and restructuring. The bank opened an innovative storefront retail real estate office to move foreclosed properties.
By mid-1992 recovery had begun. The bank had aggressively reduced its portfolio of non-performing loans and all discernible asset quality trends were positive, resulting in a favourable impact to the bottom line. In
1993 the bank began to show a profit once more and it re-capitalized with a rights offering in Q4 1992, generating $38 million in new capital.
In
1993 the Peoples management held a retreat to plan strategy for future growth. Bill Ryan proposed a doubling of assets to $5 billion through a maximization of market share in
Maine and acquisition of other community banks in the region
The plan resulted in the following acquisitions during the
1990s:
* Mid-Maine Savings â€"
Auburn, Maine, 1993
* Bankcore, Inc / North Conway Bank â€"
North Conway, New Hampshire,
1995* Bank of New Hampshire, 1995 â€" second largest bank in
NH, founded in
1875, with assets of 1.7 billion. The acquisition increased the size of Peoples by 1/3 to $4.2 billion. As well, it established People's credentials as a commercial bank. Terms of the merger allowed The Bank of New Hampshire to keep its name and management structure.
* Family Bancorp -
Haverhill, Massachusetts,
1996* Atlantic Bancorp - Portland, Maine â€" 15 branch operation with assets of $470,
1997* CFX â€"
Keene, New Hampshire, 1997 â€" originally Cheshire County Savings Bank,
1897. The acquisition doubled People's assets to $10 billion. NH branches became part of The Bank of New Hampshire, while
Massachusetts branches joined Family Bancorp.
* Springfield Institution for Savings (SIS) â€"
1998 â€"
Springfield, Massachusetts - 1.8 billion in assets â€" included Glastonbury Bank and Trust Company of
Glastonbury, Connecticut* Banknorth Group of
Burlington, Vermont (1870), agreement reached in
1999.
The Banknorth acquisition was the most significant to date and with it Peoples assumed the Banknorth name. Banknorth Group Inc. was headquartered in Burlington, VT. The Company was the holding company for: Franklin Lamoille Bank (1899) in St. Albans, The Howard Bank N.A.(1870) in Burlington, Stratevest N.A. (Investment & Managements), in Burlington with locations in (FLB, THB, GSB, FVB, FNB, FMB, EB) Granite Savings Bank & Trust Company (1885) in Barre, Woodstock National Bank (1802) in Woodstock, First Vermont Bank & Trust Company (1906) in Brattleboro (Vermont) Farmington National Bank (1854), Farmington, NH. The merger increased Peoples assets to $17 billion and gave it a larger presence in Massachusetts,
Vermont and, through Evergreen Bank (
Glens Falls, (1853), in
New York.
The completion of the merger was delayed by regulatory review, but on May 10,
2000, Banknorth Group Inc of Portland, Maine came into being. "The Banknorth acquisition brought into the fold eight separate community banks (Franklin Lamoille Bank N.A., The Howard Bank N.A., Firest Vermont Bank N.A. (Vermont) Bank of New Hampshire under the charter of Farmington National Bank (New Hampshire) Oxford Bank & Trust a division of Peoples Heritage Bank, Peoples Heritage Bank, in Maine. First Mass. Bank in MA. GBT, a division of First Mass Bank in CT. and Evergreen Bank in NY. With 101 branches together as well as an investment management firm, Stratevest, that oversaw some 4 billion in assets and a freestanding mortgage-lending unit."
The new organization renewed its program of acquisitions. "As Banknorth expanded across the map of New England, the message remained the same: community banking values, enhanced by the resources of a major banking organization, create a better bank."
Acquisitions in the period included:
* Andover Bancorp, $1.8 billion company â€" 15 branches in
Essex and
Middlesex Counties, Massachusetts,
2001.
* MetroWest â€" 17 branches in
Boston western suburbs â€" slightly less than $1 billion in assets, 2001.
* Ipswich Bancshares â€" 8 branches north of Boston,
2002.
* Warren Bancorp â€" Essex County, Massachusetts, 2002.
* Community Insurance Agencies, Inc - May, 2002.
* Bancorp Connecticut â€" seven branches and $663 million in assets, 2002.
* American Savings Bank â€"
New Britain, Connecticut,
2003. Added $4 billion in assets and 47 branches in central Connecticut.
* CCBT Financial Companies - Parent company of Cape Cod Bank & Trust, with $1.4 billion in assets and 26 branches in Barnstable and Plymouth Counties, Massachusetts, 2003.
* Boston Federal Savings Bank, subsidiary of BostonFed Bancorp, Inc., with $1.7 billion in assets and $1.2 billion in deposits, has 16 branches in Middlesex, Norfolk, Essex and Suffolk Counties, Massachusetts, 2004.
In the 1990s and early
2000s, the emphasis was on the development of a financial services company in a true community bank setting. In 1997 the bank launched what would become Banknorth Insurance Group and by 2002 built the largest insurance brokerage group in New England. By 2002 Banknorth Investment Management Group had grown out of the trust business of the Bank of New Hampshire and Banknorth Vermont's consolidated trusts operation, Stratevest.
On December 31, 2001, the holding company, Banknorth Group, Inc., merged its seven subsidiary banks into one bank, Banknorth NA under the Peoples Heritage Bank charter dating back to 1852, with one OCC charter. Using locally relevant trade names retained the local identity in each state.
|
Banknorth logo after TD acquisition |
On August 26,
2004, it was announced that
TD Bank Financial Group had signed an agreement with Banknorth to acquire 51% of the outstanding shares of the company for a total of $3.8 billion US. Banknorth Chairman William J. Ryan stated on the signing of the agreement: "Having TDBFG as our majority shareholder offers us the depth to continue with our strategy of acquiring high potential banks in strategic locations andpositions us to move to the next level in terms of size and product capability. Both TD and Banknorth are leaders in employing a customer-focused approach to their markets and bring proven track records of successfully integrating acquisitions. I firmly believe that working with TD will be a positive experience for our shareholders, our customers and our employees." Banknorth shareholders approved the transaction at a special meeting of shareholders on February 18,
2005 and final approval was announced on March 1, 2005. In connection with the transaction, Banknorth changed its name to TD Banknorth Inc. and reincorporated in
Delaware.
In July, 2005, TD Banknorth announced that it had acquired
Hudson United Bank, based in
Mahwah, New Jersey. The acquisition significantly expanded TD Banknorth's presence in both
Connecticut and New York and extended the franchise into northern
New Jersey and
Philadelphia as well.
Announced acquisition of Interchange Financial Services Corp. in April 2006, adding 30 branches in Bergen and Essex counties of New Jersey
In January 2006, finalized acquisition of Boothby & Bartlett Company, a Central Maine insurance agency in Waterville.
Added a sister company, TD Ameritrade, which was formed after the Ameritrade Holding Corporation acquired TD Waterhouse USA from Toronto-Dominion Bank in 2006.
(All quotes derived from James Hayman, "Taken at the Flood: The Remarkable Unfinished Story of Banknorth Group", Banknorth Group, 2003. This official history is the principal source of information for the summary.)
List of other
Canadian owned US banks:
*
Toronto Dominion*
Harris Bank*
RBC Centura*
CIBC World Markets USA - no retail operations
*
Scotia Capital - no retail operations
*
TD Banknorth
