Consolidation Activity Slackens In Eastern States

After breathtaking action during 1995, bank consolidation activity quieted by comparison in the Middle Atlantic region last year.

The largest merger of the year involved Crestar Financial Corp., Richmond, Va., which solidified its franchise in the suburban Washington area by acquiring Citizens Bancorp of Maryland for $774 million. Morgan Stanley & Co. advised Crestar; Keefe, Bruyette & Woods Inc., Citizens.

The largest thrift purchase in the region involved HSBC Americas Inc., a New York subsidiary of Hongkong & Shanghai Banking Corp., which bought First Federal Savings and Loan Association of Rochester, N.Y., for $620 million. Merrill Lynch & Co. advised First Federal Savings, and HSBC did not use an adviser.

A pair of Pennsylvania banks unveiled a merger at yearend. Keystone Financial Inc., Harrisburg, is to buy Financial Trust Corp., Carlisle, for $371 million. Danielson Associates Inc. advised Keystone, and Berwind Financial Group advised Financial Trust.

Meanwhile, Banco de Santander, the Spanish banking giant, bought Puerto Rico's Banco Central Hispano for $290 million. Goldman, Sachs & Co. advised Santander, but no adviser was listed for Central Hispano.

NationsBank Corp., Charlotte, N.C., bolstered its eastern holdings, buying TAC Bancshares of New York for $280 million. No investment bank advised NationsBank, while Donaldson, Lufkin & Jenrette advised TAC.

Long Island thrift North Fork Bancorp., based in Melville, also joined the action last year, buying another thrift, North Side Savings Bank, Queens, N.Y., for $215.8 million. Keefe Bruyette advised North Fork; Sandler O'Neill & Partners advised North Side.