TD Banknorth
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TD Banknorth formerly just "Banknorth" is a banking and insurance company primarily serving the northeastern area of the United States. Since August 2004, the majority owner is the Canadian Toronto-Dominion Bank upon which time it was renamed "TD Banknorth". The banks' headquarters are in Portland, Maine.
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.
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[edit] History
On March 3, 2005, TD Banknorth announced that it had acquired the new naming rights to the FleetCenter arena in Boston, Massachusetts, which was then officially 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.
[edit] 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
[edit] 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 – 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 World War II, 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.
[edit] 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 – 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.
[edit] Franklin County Savings Bank & Trust Co.
Franklin County Savings Bank was founded in 1899 in St. Albans, VT. The bank maintained the name Franklin County Bank until the merger with Lamoille County Bank & Trust Company in the late 1960's or early 1970's. After the merger, the bank adopted a new name, Franklin Lamoille Bank. The bank also incorperated a holding company named Banknorth.
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.
[edit] Granite Savings Bank & Trust Company
The Granite Saving Bank & Trust Company was founded in Barre, VT in 1885. The bank's original office, located on North Main Street in Barre, is now the home for a senior citizen group. The current headquarters is 36 North Main Street, Barre. Banknorth Group Inc. planed to maintain the name until they were bought out by Peoples Bank (Maine). In 2000 Granite Savings Bank & Trust merged with its sister bank The Howard Bank. Some customers never noticed the change until their bank statement arrived.
[edit] 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.
[edit] 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.
[edit] The Merger of Portland/Peoples/Heritage
“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 – 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 – 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 – 1987
- Oxford Bank and Trust Company – 5 branches - 1988
- Six branches from Casco Northern Bank – 1989
- First Coastal Bank, Portsmouth NH – 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.
[edit] Recession and Crisis
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.
[edit] Recovery and Expansion
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 – Auburn, Maine, 1993
- Bankcore, Inc / North Conway Bank – North Conway, New Hampshire, 1995
- Bank of New Hampshire, 1995 – 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 – 15 branch operation with assets of $470, 1997
- CFX – Keene, New Hampshire, 1997 – 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) – 1998 –Springfield, Massachusetts - 1.8 billion in assets – included Glastonbury Bank and Trust Company of Glastonbury, Connecticut
- Banknorth Group of Burlington, Vermont (1870), agreement reached in 1999.
[edit] Peoples becomes Banknorth
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 – 15 branches in Essex and Middlesex Counties, Massachusetts, 2001.
- MetroWest – 17 branches in Boston western suburbs – slightly less than $1 billion in assets, 2001.
- Ipswich Bancshares – 8 branches north of Boston, 2002.
- Warren Bancorp – Essex County, Massachusetts, 2002.
- Community Insurance Agencies, Inc - May, 2002.
- Bancorp Connecticut – seven branches and $663 million in assets, 2002.
- American Savings Bank – 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.
[edit] The 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 and positions 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.
| Toronto-Dominion Bank | |
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Chief Executive Officer: W. Edmund Clark | FY 2005 Statistics: Net income: $2.2 billion CAD ( |
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| Major brands by financial service | |
| Master: TD | Financial group: TD Bank Financial Group | Canadian banking: TD Canada Trust | U.S. banking: TD Banknorth | Canadian mutual funds: TD Mutual Funds | Canadian brokerage: TD Waterhouse | U.S. brokerage: TD Ameritrade | Canadian insurance: TD Insurance | Capital markets: TD Securities |
[edit] Continued Growth
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. On November 20, 2006, TD Bank Financial & TD Banknorth entered into an agreement in which TD Bank would acquire all remaining shares of TD Banknorth held by the public for US$32.33 per share in cash. Upon completion, TD Banknorth would be a subsidiary of TD Bank.
[edit] References
(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.)
[edit] See also
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
[edit] External links
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