Looking to cut costs after a string of money-losing quarters, First Ipswich Bancorp in Massachusetts agreed to sell its trust department to Eastern Bank of Boston.
The $398 million-asset parent of First National Bank of Ipswich lost $649,000 last quarter and has not made money since the third quarter of last year.
In June it entered a written agreement with the Office of the Comptroller of the Currency to boost capital, improve liquidity, adopt a new interest rate risk management plan, and retain a competent management team. That month First Ipswich also announced that Donald P. Gill had resigned as its president and chief executive.
In announcing the trust department deal last week, First Ipswich's new president and CEO, Russell G. Cole, said his company "worked carefully to identify a bank that would provide a high level of service to our customers, and we believe Eastern Bank will maintain the same high standards."
First Ipswich is committed to returning to profitability, "and this transaction is consistent with that goal," he said.
The $6.7 billion-asset Eastern Bank has 72 branches in eastern Massachusetts. The deal is expected to close next quarter.
