SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 28, 1998
First Essex Bancorp, Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-16143 04-2943217
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(State or other jurisdic- (Commission (IRS Employer
tion of incorporation) File Number) Identification Number)
71 Main Street, Andover, Massachusetts 01810
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (978) 681-7500
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On March 28, 1998, First Essex Bank, FSB, a wholly owned subsidiary of
First Essex Bancorp, Inc. entered into a Purchase and Assumption Agreement with
CFX Bank, a wholly owned subsidiary of CFX Corporation, for the purchase of five
branch offices.
A copy of the press release issued by First Essex Bancorp, Inc. is
filed as an exhibit hereto and is incorporated by reference herein.
Pursuant to the Agreement, the Bank will assume deposits in the
approximate amount of $159 million, purchase approximately $67 million in
consumer and commercial loans, and purchase approximately $2 million in real and
personal property.
The transaction must be approved by regulatory authorities.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable.
(c) Exhibits.
(1) Press release dated March 30, 1998.
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST ESSEX BANCORP, INC.
By: /s/ David W. Dailey
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David W. Dailey
Executive Vice President
Press Release
First Essex Bancorp
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FOR IMMEDIATE RELEASE
March 30, 1998
MEDIA First Essex Bancorp, Inc.
CONTACT Announces Purchase of Five CFX Branches
[square] Leonard A. Wilson
William F. Burke
(978) 681-7500
Andover, MA, March 30, 1998 - Leonard A. Wilson, President and Chief
Executive Officer of First Essex Bancorp, Inc., announced today that
First Essex Bank, FSB, its wholly owned subsidiary, has signed a
definitive agreement with CFX Bank to acquire five branches with total
deposits of $159 million in Southern Hew Hampshire. The transaction is
expected to close near the end of the second quarter. CFX Corporation,
the holding company of CFX Bank, signed a definitive agreement to be
acquired by Peoples Heritage Financial Group Inc. on October 27, 1997
and is selling the branches in order to meet regulatory requirements
dictated by the merger.
In announcing the transaction, Mr. Wilson stated "We are very pleased
to have the opportunity to further expand our New Hampshire presence
through the acquisition of these branches. We look forward to sharing
First Essex's commitment to full service, personal banking with our new
customers."
The acquisition adds three branches to First Essex's existing franchise
in Hillsborough County, NH for a total presence in the county of four
branches. First Essex also establishes a presence in nearby Merrimack
County, NH through the addition of two branches in the attractive
Concord, NH market. Following the completion of the acquisition, First
Essex will have a total of twenty branches. The ten New Hampshire
branches will represent approximately $400 million in deposits in
Rockingham, Hillsborough and Merrimack Counties, NH.
Under the agreement, First Essex will acquire, in addition to about
$159 million in deposits, $67 million in consumer and commercial loans,
and $2 million in real and personal property attributable to the
branches. All employees associated with the branches will be offered
employment with First Essex.
Wilson further added, "Our existing customers in Massachusetts and New
Hampshire will benefit from the additional convenience of an expanded
branch network. In addition, our well established organization and
management structure
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enables us to absorb these branches with little additional fixed
overhead. This transaction is expected to be accretive to earnings in
1998 and enhance the overall value of our banking franchise."
First Essex will be communicating soon to branch customers to explain
how their banking relationships will be handled following the transfer.
"We will be working to ensure a smooth transition over the coming
months, and the transition should be virtually transparent to
customers," said Wilson.
First Essex Bancorp, Inc., headquartered in Andover, MA, is the holding
company of First Essex Bank, FSB, a federally chartered savings bank.
First Essex, originally founded in 1847, operates ten branch-banking
offices in Andover, North Andover, Lawrence, Lowell, Methuen and
Haverhill, MA and five in Londonderry, Pelham, Salem and Windham, NH.
At December 31, 1997, First Essex had total assets of $1.2 billion,
total deposits of $744.3 million and total equity of $91.1 million.
