In Brief: Citizens in R.I. Closes Its State Street Deal

completed its acquisition of State Street Corp.'s remaining commercial banking operations, including $1.2 billion of commercial loans, $1.1 billion of deposits, and four branch offices.

State Street, a Boston banking company that specializes in securities processing and asset management, said it received a $350 million premium for the business and expects to record a $1 per-share gain in the fourth quarter. The company said the sale of assets would result in a 3% reduction in revenues and would dampen earnings per share by 6% in the near term. State Street said it would offset the declines over three years through acquisitions and internal growth.

Citizens, which is owned by the Royal Bank of Scotland, has been trying to beef up its Massachusetts operations to take advantage of a void foreseen from the $16 billion combination of Fleet Financial Group and BankBoston Corp. In June, Citizens agreed to buy Boston-based UST Corp. for $1.4 billion. That deal, which would bring an additional $5.9 billion of assets and 87 branches in eastern Massachusetts, is scheduled to close in the first quarter. -- Liz Moyer