Sun Life Assurance Co. is leaving the U.S. banking business.

The Toronto-based insurance giant said this week that it would sell New London (N.H) Trust FSB to Phoenix Home Mutual Insurance Co. of Hartford, Conn., for an undisclosed sum.

New London Trust, with $325 million of assets, became a savings bank when it acquired the failed Danielson (Conn.) Federal Savings and Loan Association.

Phoenix would sell the banking assets and the eight thrift branches. The buyers would be two New Hampshire thrifts, Lake Sunapee Bank in Newport and Mascoma Savings Bank in Lebanon; and a Connecticut thrift, Cargill Bank of Putnam.

Cargill is owned by $355 million-asset Westbank Corp. in Springfield, Mass.

Phoenix would retain New London Trust's $1 billion-asset trust business and three trust offices. The transactions are expected to be completed in the fall.

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