Citizens Financial Group's $1.4 billion deal for UST Corp. does more than create a stronger rival for Massachusetts community bankers. It could also threaten the smaller banks' surcharge-free automated teller machine network.

"Citizens has a fine marketing and product mix," said Bill McCarthy, president of $136 million-asset Co-Operative Bank in Boston. "There are days I look at what they are doing and say, 'I wish I could do that.'"

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