Chittenden Corp. of Burlington, Vt., said it has arranged for the 15th of the 17 branch divestitures required for it to buy Vermont Financial Services Corp.

Factory Point National Bank of Manchester Center, Vt., has agreed to buy a Ludlow, Vt., branch of Vermont Financial's Vermont National Bank, Chittenden said Thursday.

The purchase would also bring $29 million of deposits and $4.5 million of loans to Factory Point, which now has $166 million of assets and six branches.

The branch divestitures were conditions of Justice Department and Federal Reserve Board approval earlier last week for $2.1 billion-asset Chittenden to buy $2 billion-asset Vermont Financial of Brattleboro.

Charter One Financial Inc. of Cleveland had already agreed to buy 14 branches. Talks have been held on the sale of the last two, a Chittenden spokeswoman said.

The company still hopes to complete the $454 million acquisition of Vermont Financial next month and expects to sell the branches during the third quarter, the spokeswoman said.

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