Chase Manhattan Buys Citytrust, Mechanics & Farmers from FDIC
Chase Manhattan Corp. on Friday, as expected, acquired Citytrust and the Mechanics and Farmers Savings Bank from the Federal Deposit Insurance Corp. The failed institutions are based in Bridgeport, Conn.
Chase said it acquired a total of $2.5 billion in deposits, $2.2 billion in assets, and 67 branches held by the two institutions.
FDIC Accepts Bargain Prices
Chase paid the FDIC a $13 million premium, representing 0.52% of the failed banks' deposits - an extremely low price, according to analysts. Chase said it will establish a Connecticut subsidiary, Chase Manhattan Bank of Connecticut.
Citytrust was closed Friday afternoon by the Connecticut banking commissioner. Mechanics and Farmers was closed by the Office of Thrift Supervision. The FDIC was named receiver for both institutions.
Strong Move into Connecticut
The move gives Chase a strong presence in affluent Fairfield County, which borders the New York metropolitan area. Chase has 300 branches in New York.
Hermes L. Ames was named president and chief executive of the new unit. Mr. Ames formerly was president of the Syracuse division of Chase Lincoln First Bank, Chase's upstate New York unit.