1
================================================================================
FORM 10-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the fiscal year ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ________ to ________.
Commission File Number: 0-16947
PEOPLES HERITAGE FINANCIAL GROUP, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maine 01-0437984
---------------------------- ----------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
P.O. Box 9540
One Portland Square
Portland, Maine 04112-9540
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (207) 761-8500
Securities registered pursuant to Section 12(b) of the Act: Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.01 par value
----------------------------
Title of Class
Preferred Stock Purchase Rights
-------------------------------
Title of Class
Indicate by check mark whether the Registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months and (2) has been subject to such filing requirements for the
past 90 days. Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
As of March 20, 1998, the aggregate market value of the 27,825,603 shares of
Common Stock of the Registrant issued and outstanding on such date, excluding
the 721,012 shares held by all directors and executive officers of the
Registrant as a group (excluding the effects of unexercised stock options), was
$1.27 billion. This figure is based on the last sale price of $46.75 per share
of the Registrant's Common Stock on March 20, 1998, as reported in THE WALL
STREET JOURNAL on March 23, 1998. Although directors of the Registrant and
executive officers of the Registrant and its subsidiaries were assumed to be
"affiliates" of the Registrant for purposes of this calculation, the
classification is not to be interpreted as an admission of such status.
Number of shares of Common Stock outstanding as of March 20, 1998: 27,825,603
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the
part of the Form 10-K into which the document is incorporated:
(1) Portions of the Annual Report to Stockholders for the year ended
December 31, 1997 are incorporated by reference into Part II, Items 5-8 and
Part IV, Item 14 of this Form 10-K.
(2) Portions of the definitive Proxy Statement for the Annual Meeting of
Stockholders to be held on April 28, 1998 are incorporated by reference
into Part III, Items 10-13 of this Form 10-K.
================================================================================
2
PART I.
ITEM 1. BUSINESS
THE COMPANY
Peoples Heritage Financial Group, Inc. (the "Company") is a multi-bank and
financial services holding company which is incorporated under the laws of the
State of Maine. The Company conducts business from its executive offices in
Portland, Maine and 142 banking offices located throughout Maine, New Hampshire
and northern Massachusetts. At December 31, 1997, the Company had consolidated
assets of $6.8 billion and consolidated shareholders' equity of $475.1 million.
Based on total assets at December 31, 1997, the Company is the largest
independent bank holding company headquartered in northern New England and the
fifth largest independent bank holding company headquartered in New England.
The Company offers a broad range of commercial and consumer banking
services and products and trust and investment advisory services through three
wholly-owned banking subsidiaries: Peoples Heritage Bank ("PHB"), Bank of New
Hampshire ("BNH") and Family Bank, FSB ("Family Bank"). PHB is a Maine-chartered
bank which operates 75 offices throughout Maine and, through subsidiaries,
engages in mortgage banking, financial planning, equipment leasing, securities
brokerage and insurance brokerage activities. At December 31, 1997, PHB had
consolidated assets of $3.8 billion and consolidated shareholder's equity of
$269.4 million. BNH is a New Hampshire-chartered commercial bank which operates
46 offices throughout New Hampshire. At December 31, 1997, BNH had consolidated
assets of $2.1 billion and consolidated shareholder's equity of $146.4 million.
Family Bank is a federally-chartered savings bank which operates 17 banking
offices in the Merrimack Valley area of Greater Haverhill and Greater Lowell,
Massachusetts and four offices in southern New Hampshire. At December 31, 1997,
Family Bank had consolidated assets of $1.1 billion and consolidated
shareholder's equity of $106.7 million.
Acquisitions have been, and are expected to continue to be, an important
part of the expansion of the Company's business. Since January 1, 1995, the
Company has completed one acquisition which has been accounted for under the
pooling-of-interests method and six acquisitions accounted for under the
purchase method. These transactions do not include the Company's pending
acquisition of CFX Corporation.
Unless the context otherwise requires, references herein to the Company
include its direct and indirect subsidiaries.
1
3
BUSINESS OF THE COMPANY
The principal business of the Company consists of attracting deposits from
the general public through its offices and using such deposits to originate
loans secured by first mortgage liens on existing single-family (one-to-four
units) residential real estate and existing multi-family (over four units)
residential and commercial real estate, construction loans, commercial business
loans and leases and consumer loans and leases. The Company also provides
various mortgage banking services and, as discussed below, various trust and
investment advisory services, as well as engages in equipment leasing, financial
planning, securities brokerage and insurance brokerage activities. The Company
also invests in investment securities and other permitted investments.
The Company derives its income principally from interest charged on loans
and leases and, to a lesser extent, from interest and dividends earned on
investments, fees received in connection with the sale and servicing of loans,
deposit services and for other services and gains on the sale of assets. The
Company's principal expenses are interest expense on deposits and borrowings,
operating expenses, provisions for loan and lease losses and income tax expense.
Funds for activities are provided principally by deposits, advances from the
Federal Home Loan Bank ("FHLB") of Boston, securities sold under repurchase
agreements, amortization and prepayments of outstanding loans, maturities and
sales of investments and other sources.
PHB, BNH and, commencing in 1997, Family Bank provide full trust services
to their customers. Each of the Company's banking subsidiaries focuses on
offering employee benefit trust services in which it will act as trustee,
custodian, administrator and/or investment advisor, among other things, for
employee benefit plans for corporate, self-employed, municipal and
not-for-profit employers throughout the Company's market areas. In addition, the
Company's banking subsidiaries serve as trustee of both living trust and trusts
under wills and as such hold, account for and manage financial assets, real
estate and special assets. Custody, estate settlement and fiduciary tax
services, among others, also are offered the Company's banking subsidiaries. At
December 31, 1997, the Company had $2.2 billion of assets held by the trust
departments of its banking subsidiaries, which are not included in the Company's
consolidated balance sheet for financial reporting purposes.
The Company is registered as a bank holding company under the Bank Holding
Company Act of 1956, as amended ("BHCA"), and as such is subject to regulation
and examination by the Board of Governors of the Federal Reserve System
("Federal Reserve Board"). The Company also is registered as a Maine financial
institution holding company under Maine law and as such is subject to regulation
and examination by the Superintendent of Banking of the State of Maine
("Superintendent").
As a Maine-chartered bank, PHB is subject to regulation and examination by
the Superintendent, as a New Hampshire-chartered commercial bank, BNH is subject
to regulation and examination by the New Hampshire Bank Commissioner and as a
federally-
2
4
chartered savings bank, Family Bank is subject to regulation and examination by
the Office of Thrift Supervision ("OTS"). Each of PHB, BNH and Family Bank is a
member of the Bank Insurance Fund ("BIF") administered by the Federal Deposit
Insurance Corporation ("FDIC").
SUBSIDIARIES
At December 31, 1997, the Company's only direct subsidiaries were PHB, Bank
of New Hampshire Corporation, a holding company for BNH, Peoples Heritage Merger
Corp., a holding company for Family Bank, and Peoples Heritage Capital Trust I
(the "Trust"). For additional information on the Trust, see Note 11 to the
Consolidated Financial Statements included in Item 8 hereof.
Set forth below is a brief description of certain indirect non-banking
subsidiaries of the Company.
Mortgage Banking Activities. During 1993, PHB formed Peoples Heritage
Mortgage Company ("PHMC") for the purpose of expanding its residential real
estate mortgage origination business outside of the Company's principal lending
areas of Maine and New Hampshire. Currently, the activities of PHMC are not
material.
Investments In Real Estate. The Company's banking subsidiaries hold certain
investments in real estate. Exclusive of other real estate owned and investments
in office properties and facilities, which are discussed under Item 2 hereof, at
December 31, 1997 the Company's banking subsidiaries' investments in real estate
consisted entirely of interests in limited partnerships formed for the purpose
of investing in real estate for lower-income families, elderly housing projects
and/or the preservation or restoration of historically or architecturally
significant buildings or structures. At December 31, 1997, the Company's banking
subsidiaries investments in these limited partnerships had a carrying value of
$5.2 million.
Equipment Leasing Activities. PHB conducts equipment leasing activities
through Peoples Heritage Leasing Corporation, Inc. ("PHLC"). PHLC is
headquartered in Portland, Maine and engages in direct equipment leasing
activities, primarily involving office equipment, in the Portland, Maine
metropolitan area and elsewhere in the States of Maine, New Hampshire and
Massachusetts. At December 31, 1997, PHLC had $20.8 million of leases
outstanding.
Financial Planning And Securities Brokerage Activities. PHB conducts
financial planning, investment planning and securities brokerage activities
through Heritage Investment Planning Group, Inc. ("HIPG"). PHB also offers
through HIPG investments in mutual funds and annuities throughout the Company's
market areas. HIPG offers its services to individuals and small businesses from
its office located in Portland, Maine and from certain of the Company's other
locations in Maine and New Hampshire. Sales
3
5
professionals at HIPG are registered representatives of Royal Alliance, a
registered broker/dealer, and all securities brokerage activities are conducted
through Royal Alliance. The sales professionals receive referrals from the
Company's branch offices throughout its market areas.
Insurance Brokerage Activities. PHB conducts insurance brokerage activities
through MPN Holdings, the holding company for Morse, Payson & Noyes, which the
Company acquired on October 10, 1997. Morse Payson and Noyes is the largest
insurance brokerage firm in Maine.
COMPETITION
The Company encounters strong competition both in the attraction of
deposits and in the making of real estate and other loans. Its most direct
competition for deposits has historically come from savings institutions,
commercial banks and credit unions with offices in the market areas served by
the Company. The Company also encounters competition for deposits from money
market funds, as well as corporate and government securities. The principal
methods used by the Company to attract deposit accounts include the variety of
services offered, the competitive interest rates offered and the convenience of
office locations, automated teller machines and expanded banking hours.
The Company's competition for real estate and other loans comes principally
from savings institutions, credit unions, commercial banks, mortgage banking
companies, insurance companies and other institutional lenders. The Company
competes for loans through interest rates, branch locations, loan maturities,
loan fees and the quality of service extended to borrowers and brokers.
In recent years, Maine, New Hampshire and Massachusetts laws have enabled
the acquisition of financial institutions in these respective states by
financial institutions and financial institution holding companies based outside
of these states. As a result, the Company has encountered substantial
competition in its market areas, particularly from out-of-state banking
organizations that have entered the Maine, New Hampshire and Massachusetts
banking markets, and the Company expects to continue to encounter such
competition in the future.
EMPLOYEES
The Company had approximately 2,560 full-time employees as of December 31,
1997. None of these employees is represented by a collective bargaining agent,
and the Company believes that it enjoys good relations with its personnel.
4
6
REGULATION OF THE COMPANY
The following references to laws and regulations which are applicable to
the Company and its banking subsidiaries are brief summaries thereof which do
not purport to be complete and are qualified in their entirety by reference to
such laws and regulations.
BHCA - General. The Company, as a bank holding company, is subject to
regulation and supervision by the Federal Reserve Board. Under the BHCA, a bank
holding company is required to file annually with the Federal Reserve Board a
report of its operations and, with its subsidiaries, is subject to examination
by the Federal Reserve Board.
BHCA - Activities and Other Limitations. The BHCA generally prohibits a
bank holding company from acquiring direct or indirect ownership or control of
more than 5% of the voting shares of any bank, or increasing such ownership or
control of any bank, without prior approval of the Federal Reserve Board. As a
result of recent amendments to the BHCA, the Federal Reserve Board generally may
approve an application by a bank holding company that is adequately capitalized
and adequately managed to acquire control of, or to acquire all or substantially
all of the assets of, a bank located in a state other than the home state of
such bank holding company, without regard to whether such transaction is
prohibited under the law of any state, provided, however, that the Federal
Reserve Board may not approve any such application that would have the effect of
permitting an out-of-state bank holding company to acquire a bank in a host
state that has not been in existence for any minimum period of time, not to
exceed five years, specified in the statutory law of the host state.
The BHCA also generally prohibits a bank holding company, with certain
exceptions, from acquiring more than 5% of the voting shares of any company that
is not a bank and from engaging in any business other than banking or managing
or controlling banks. Under the BHCA, the Federal Reserve Board is authorized to
approve the ownership of shares by a bank holding company in any company the
activities of which the Federal Reserve Board has determined to be so closely
related to banking or to managing or controlling banks as to be a proper
incident thereto. In making such determinations, the Federal Reserve Board is
required to weigh the expected benefit to the public, such as greater
convenience, increased competition or gains in efficiency, against the possible
adverse effects, such as undue concentration of resources, decreased or unfair
competition, conflicts of interest or unsound banking practices.
Capital Requirements. For a description of the capital adequacy guidelines
adopted by the Federal Reserve Board to assess the adequacy of capital of bank
holding companies, see "Management's Discussion and Analysis of Financial
Condition and Results of Operations - Capital" included in Item 7 hereof.
Affiliated Institutions. Under Federal Reserve Board policy, the Company is
expected to act as a source of financial strength to each subsidiary bank and to
commit resources to
5
7
support each subsidiary bank in circumstances when it might not do so absent
such policy. The Federal Reserve Board takes the position that in implementing
this policy it may require bank holding companies to provide such support when
the holding company otherwise would not consider itself able to do so.
A bank holding company is a legal entity separate and distinct from its
subsidiary bank or banks. Normally, the major source of a holding company's
revenue is dividends a holding company receives from its subsidiary banks. The
right of a bank holding company to participate as a stockholder in any
distribution of assets of its subsidiary banks upon their liquidation or
reorganization or otherwise is subject to the prior claims of creditors of such
subsidiary banks. The subsidiary banks are subject to claims by creditors for
long-term and short-term debt obligations, including substantial obligations for
federal funds purchased and securities sold under repurchase agreements, as well
as deposit liabilities. Under the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, in the event of a loss suffered by the FDIC in
connection with a banking subsidiary of a bank holding company (whether due to a
default or the provision of FDIC assistance), other banking subsidiaries of the
holding company could be assessed for such loss.
Federal laws limit the transfer of funds by a subsidiary bank to its
holding company in the form of loans or extensions of credit, investments or
purchases of assets. Transfers of this kind are limited to 10% of a bank's
capital and surplus with respect to each affiliate and to 20% in the aggregate,
and are also subject to certain collateral requirements. These transactions, as
well as other transactions between a subsidiary bank and its holding company,
also must be on terms substantially the same as, or at least as favorable as,
those prevailing at the time for comparable transactions with non-affiliated
companies or, in the absence of comparable transactions, on terms or under
circumstances, including credit standards, that would be offered to, or would
apply to, non-affiliated companies.
Limitations of Acquisitions of Common Stock. The federal Change in Bank
Control Act prohibits a person or group of persons from acquiring "control" of a
bank holding company unless the Federal Reserve Board has been given 60 days'
prior written notice of such proposed acquisition and within that time period
the Federal Reserve Board has not issued a notice disapproving the proposed
acquisition or extending for up to another 30 days the period during which such
a disapproval may be issued. An acquisition may be made prior to expiration of
the disapproval period if the Federal Reserve Board issues written notice of its
intent not to disapprove the action. Under a rebuttable presumption established
by the Federal Reserve Board, the acquisition of more than 10% of a class of
voting stock of a bank holding company with a class of securities registered
under Section 12 of the Exchange Act would, under the circumstances set forth in
the presumption, constitute the acquisition of control.
In addition, any "company" would be required to obtain the approval of the
Federal Reserve Board under the BHCA before acquiring 25% (5% in the case of an
acquiror that
6
8
is a bank holding company) or more of the outstanding Common Stock of, or such
lesser number of shares as constitute control over, the Company.
Maine Law. Under Maine law, the prior approval of the Superintendent is
required in any case in which (i) any person or company proposes to acquire
control of a Maine financial institution or a Maine financial institution
holding company and (ii) a Maine financial institution or Maine financial
institution holding company proposes to acquire more than 5% of the voting
shares of a Maine financial institution or a Maine financial institution holding
company. In addition, the prior approval of the Superintendent is required for
the acquisition of more than 5% of the voting shares of a financial institution,
whose home state is not Maine, by a Maine financial institution or a Maine
financial institution holding company.
In addition, any person or company which directly or indirectly acquires
more than 5% of the voting shares of a Maine financial institution or a Maine
financial institution holding company is required within five days of the
acquisition to file with the Superintendent a statement containing specified
information, including the background and identity of the person or company, the
source and amount of funds or other consideration for the purchase and any plans
or proposals which the acquiring person may have to liquidate the financial
institution or financial institution holding company, to sell its assets or
merge it with any company or to make any other major change in its business,
corporate structure or management. Any person or company also must file a notice
with the Superintendent when there is a material change in ownership. Under
Maine law, the acquisition of an aggregate of more than another 5% of the voting
shares is a material change.
A Maine financial institution holding company may not engage in any
activity other than managing or controlling financial institutions or other
activities deemed permissible by the Superintendent. The Superintendent has by
regulation determined that, with the prior approval of the Superintendent, a
financial institution holding company may engage in those activities which are
permissible for bank holding companies under the BHCA and those activities which
are permissible for savings and loan holding companies under the Home Owners'
Loan Act, and additional activities as specified by regulations.
New Hampshire Law. New Hampshire law generally prohibits a bank holding
company organized under the laws of New Hampshire or doing business in the State
of New Hampshire from directly or indirectly acquiring ownership or control of
any voting stock of any bank or national bank, if upon such acquisition (i) the
bank holding company would have more than twelve bank affiliates in New
Hampshire, or (ii) the dollar volume of the total of time, savings and demand
deposits in New Hampshire of the bank holding company and all its affiliates
would exceed 20% of the dollar volume of the total of time, savings and demand
deposits of all banks, national banks and federal savings and loan associations
in the State of New Hampshire as determined by the New Hampshire Bank
Commissioner. The above-referenced 20% limitation may be waived by the New
Hampshire Bank
7
9
Commissioner and the New Hampshire Attorney General if both determine that it is
in the best interests of the State of New Hampshire, provided that under no
circumstances shall the total dollar volume of total deposits exceed 30%.
REGULATION OF BANKING SUBSIDIARIES
General. Each of PHB, BNH and Family Bank is subject to extensive
regulation and examination by the Superintendent, the New Hampshire Bank
Commissioner and the OTS, respectively. Each of the Company's banking
subsidiaries also is subject to regulation and examination by the FDIC, which
insures the deposits of each of the Company's banking subsidiaries to the
maximum extent permitted by law, and certain requirements established by the
Federal Reserve Board. The federal and state laws and regulations which are
applicable to banks regulate, among other things, the scope of their business,
their investments, their reserves against deposits, the timing of the
availability of deposited funds and the nature and amount of and collateral for
loans. The laws and regulations governing the Company's banking subsidiaries
generally have been promulgated to protect depositors and not for the purpose of
protecting stockholders.
Capital Requirements. Each of the Company's banking subsidiaries is subject
to regulatory capital requirements of the FDIC (in the case of PHB and BNH) and
the OTS (in the case of Family Bank) which are substantially comparable to the
regulatory capital requirements of the Federal Reserve Board applicable to bank
holding companies such as the Company. At December 31, 1997, the regulatory
capital of each of the Company's banking subsidiaries substantially exceeded
applicable requirements.
Prompt Corrective Action. Section 38 of the Federal Deposit Insurance Act
("FDIA") provides the federal banking regulators with broad power to take
"prompt corrective action" to resolve the problems of undercapitalized
institutions. The extent of the regulators' powers depends on whether the
institution in question is "well capitalized," "adequately capitalized,"
"undercapitalized," "significantly undercapitalized" or "critically
undercapitalized." Under regulations adopted by the federal banking regulators,
an institution shall be deemed to be (i) "well capitalized" if it has total
risk-based capital ratio of 10.0% or more, has a Tier I risk-based capital ratio
of 6.0% or more, has a Tier I leverage capital ratio of 5.0% or more and is not
subject to specified requirements to meet and maintain a specific capital level
for any capital measure; (ii) "adequately capitalized" if it has a total
risk-based capital ratio of 8.0% or more, a Tier I risk-based capital ratio of
4.0% or more and a Tier I leverage capital ratio of 4.0% or more (3.0% under
certain circumstances) and does not meet the definition of "well capitalized,"
(iii) "undercapitalized" if it has a total risk-based capital ratio that is less
than 8.0%, a Tier I risk-based capital ratio that is less than 4.0% or a Tier I
leverage capital ratio that is less than 4.0% (3.0% under certain
circumstances), (iv) "significantly undercapitalized" if it has a total
risk-based capital ratio that is less than 6.0%, a Tier I risk-based capital
ratio that is less than 3.0% or a Tier I leverage capital ratio that is less
than 3.0%, and (v) "critically undercapitalized" if it has a ratio of tangible
equity to total assets that is equal to or less than 2.0%. The regulations
8
10
also provide that a federal banking regulator may, after notice and an
opportunity for a hearing, reclassify a "well capitalized" institution as
"adequately capitalized" and may require an "adequately capitalized" institution
or an "undercapitalized" institution to comply with supervisory actions as if it
were in the next lower category if the institution is in an unsafe or unsound
condition or engaging in an unsafe or unsound practice. The federal banking
regulator may not, however, reclassify a "significantly undercapitalized"
institution as "critically undercapitalized."
An institution generally must file a written capital restoration plan which
meets specified requirements, as well as a performance guaranty by each company
that controls the institution, with an appropriate federal banking regulator
within 45 days of the date that the institution receives notice or is deemed to
have notice that it is "undercapitalized," "significantly undercapitalized" or
"critically undercapitalized." Immediately upon becoming undercapitalized, an
institution becomes subject to statutory provisions which, among other things,
set forth various mandatory and discretionary restrictions on the operations of
such an institution.
At December 31, 1997, each of the Company's banking subsidiaries had
capital levels which qualified it as a "well-capitalized" institution.
Fdic Insurance Premiums. Each of the Company's banking subsidiaries is a
member of the BIF administered by the FDIC, although certain deposits of each of
these entities acquired in acquisitions are insured by the Savings Association
Insurance Fund ("SAIF") administered by the FDIC.
As an FDIC-insured institution, each of the Company's banking subsidiaries
is required to pay deposit insurance premiums to the FDIC. Effective January 1,
1997, the assessment schedule for both BIF and SAIF ranges from 0 basis points
(subject to a $2,000 annual minimum) to 27 basis points. In addition, both
BIF-insured institutions and SAIF-insured institutions are assessed amounts in
order for a federally-chartered Finance Corporation to make payments on it
bonds.
Brokered Deposits. The FDIA restricts the use of brokered deposits by
certain depository institutions. Under the FDIA and applicable regulations, (i)
a "well capitalized insured depository institution" may solicit and accept,
renew or roll over any brokered deposit without restriction, (ii) an "adequately
capitalized insured depository institution" may not accept, renew or roll over
any brokered deposit unless it has applied for and been granted a waiver of this
prohibition by the FDIC and (iii) an "undercapitalized insured depository
institution" may not (x) accept, renew or roll over any brokered deposit or (y)
solicit deposits by offering an effective yield that exceeds by more than 75
basis points the prevailing effective yields on insured deposits of comparable
maturity in such institution's normal market area or in the market area in which
such deposits are being solicited. The term "undercapitalized insured depository
institution" is defined to mean any insured depository institution that fails to
meet the minimum regulatory capital requirement
9
11
prescribed by its appropriate federal banking agency. The FDIC may, on a
case-by-case basis and upon application by an adequately capitalized insured
depository institution, waive the restriction on brokered deposits upon a
finding that the acceptance of brokered deposits does not constitute an unsafe
or unsound practice with respect to such institution. The Company's banking
subsidiaries had no brokered deposits outstanding at December 31, 1997.
Community Investment and Consumer Protection Laws. In connection with its
lending activities, each of the Company's banking subsidiaries is subject to a
variety of federal laws designed to protect borrowers and promote lending to
various sectors of the economy and population. Included among these are the
federal Home Mortgage Disclosure Act, Real Estate Settlement Procedures Act,
Truth-in-Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act
and Community Reinvestment Act ("CRA").
The CRA requires insured institutions to define the communities that they
serve, identify the credit needs of those communities and adopt and implement a
"Community Reinvestment Act Statement" pursuant to which they offer credit
products and take other actions that respond to the credit needs of the
community. The responsible federal banking regulator (in the case of the Bank
and FNB, the FDIC and the OCC, respectively) must conduct regular CRA
examinations of insured financial institutions and assign to them a CRA rating
of "outstanding," "satisfactory," "needs improvement" or "unsatisfactory." In
1997, the CRA rating of the Company's banking subsidiaries was either
"outstanding" or "satisfactory."
Limitations on Dividends. The Company is a legal entity separate and
distinct from its banking and other subsidiaries. The Company's principal source
of revenue consists of dividends from its banking subsidiaries. The payment of
dividends by the Company's banking subsidiaries is subject to various regulatory
requirements.
Miscellaneous. The Company's banking subsidiaries are subject to certain
restrictions on loans to the Company or its non-bank subsidiaries, on
investments in the stock or securities thereof, on the taking of such stock or
securities as collateral for loans to any borrower, and on the issuance of a
guarantee or letter of credit on behalf of the Company or its non-bank
subsidiaries. The Company's banking subsidiaries also are subject to certain
restrictions on most types of transactions with the Company or its non-bank
subsidiaries, requiring that the terms of such transactions be substantially
equivalent to terms of similar transactions with non-affiliated firms.
Regulatory Enforcement Authority. The enforcement powers available to
federal banking regulators is substantial and includes, among other things, the
ability to assess civil money penalties, to issue cease-and-desist or removal
orders and to initiate injunctive actions against banking organizations and
institution-affiliated parties, as defined. In general, these enforcement
actions may be initiated for violations of laws and regulations and unsafe or
unsound practices. Other actions or inactions may provide the basis for
10
12
enforcement action, including misleading or untimely reports filed with
regulatory authorities.
TAXATION
Federal Taxation. The Company and its banking subsidiaries are subject to
those rules of federal income taxation generally applicable to corporations
under the Code. The Company and its banking subsidiaries, as members of an
affiliated group of corporations within the meaning of Section 1504 of the Code,
file a consolidated federal income tax return, which has the effect of
eliminating or deferring the tax consequences of inter-company distributions,
including dividends, in the computation of consolidated taxable income.
State Taxation. As a financial institution holding company, the Company is
subject to a separate state franchise tax in lieu of state corporate income tax.
The amount of the tax is the sum of 1% of Maine net income and $.08 per $1,000
of Maine assets as defined in Maine law. Maine assets are the Company's total
end of the year assets as reported to the United States Government on the
federal income tax return. Maine net income is the Company's net income or loss
as reported by the Company on its consolidated financial statements which is
apportioned to Maine under Maine law.
The Company is subject to New Hampshire business profits tax based on
federal taxable income attributable to New Hampshire apportionments. The tax is
essentially computed by excluding from taxable income any interest on U.S.
Government obligations, adding back New Hampshire business profits taxes used in
computing federal taxable income, and then multiplying the resulting New
Hampshire taxable income by 7.0%. The computed tax is offset by a credit for any
New Hampshire enterprise tax assessed on the affiliates' compensation, interest
and dividends paid.
The Company is subject to Massachusetts financial institution excise tax
based on federal taxable income primarily attributable to its Massachusetts
affiliates. The tax is computed by adding back tax-exempt income excluded from
federal taxable income, state income tax/excise taxes deducted from federal
taxable income, and then multiplying the resulting Massachusetts taxable income
by 11.32%. Certain affiliates chartered as Massachusetts Security Corporations
pay excise taxes to Massachusetts at a rate of 1.32% on gross investment income.
ITEM 2. PROPERTIES
At December 31, 1997, the Company conducted its business from its
headquarters and main office at One Portland Square, Portland, Maine, and 141
banking offices located throughout Maine, New Hampshire and northern
Massachusetts. For additional information regarding the Company's lease
obligations, see Note 13 to the Consolidated Financial Statements included in
Item 8 hereof.
11
13
The following table sets forth certain information with respect to the
offices of the Company as of December 31, 1997.
Net Book Value of
Number of Property and Leasehold
State Banking Offices Improvements Deposits
----- --------------- ------------ --------
(Dollars in Thousands)
PHB 75 $41,417 $2,499,242
BNH 46 20,547 1,518,857
Family Bank 21 11,844 784,541
---- ------ ---------
Total 142 $73,808 $4,802,640
=== ====== =========
ITEM 3. LEGAL PROCEEDINGS
Like some of the larger financial institutions across the country, PHB has
been served with a class action suit challenging the validity of its mortgage
escrow practices. The plaintiff, James Greenwood, filed suit on August 29, 1997
in the United States District Court for the Northern District of New York. The
suit seeks an unspecified amount of damages on behalf of the plaintiff and a
purported class of similarly-situated persons. Management currently is
conducting a full assessment of the action and, based on its review to date,
believes that the action will not be material to the financial condition,
operations or liquidity of the Company. Management currently believes the action
to be without merit and intends to vigorously defend the action.
In addition to the foregoing litigation, the Company is involved in routine
legal proceedings occurring in the ordinary course of business which in the
aggregate are believed by management to be immaterial to the financial condition
and results of operations of the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
PART II.
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS
The information contained under the section captioned "Common Stock Prices"
on the inside back cover of the Company's Annual Report to Stockholders for the
year ended December 31, 1997 (the "Annual Report") is incorporated herein by
reference.
12
14
ITEM 6. SELECTED FINANCIAL DATA
The information contained in the table captioned "Selected Five-Year
Consolidated Financial and Other Data" on page 17 of the Company's Annual Report
is incorporated herein by reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The information contained in the section captioned "Management's Discussion
and Analysis of Financial Condition and Results of Operations" on pages 19
through 31 of the Company's Annual Report is incorporated herein by reference.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The information contained in the section captioned "Management's Discussion
and Analysis of Financial Condition and Results of Operations - Interest Rate
Risk and Asset-Liability Management" on pages 23 and 24 of the Company's Annual
Report is incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data required are contained on
pages 32 through 52 of the Company's Annual Report and are incorporated herein
by reference.
PART III.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES
None.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Incorporated by reference to "Election of Directors" on pages 2 through 5
and "Executive Officers who are not Directors" on pages 8 and 9 of the
definitive Proxy Statement of the Company, dated March 23, 1998 (the "Proxy
Statement").
ITEM 11. EXECUTIVE COMPENSATION
Incorporated by reference to "Compensation of Executive Officers and
Transactions with Management" on pages 12 through 17 of the Proxy Statement.
13
15
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Incorporated by reference to "Beneficial Ownership of Common Stock by
Certain Beneficial Owners and Management" on pages 10 and 11 of the Proxy
Statement.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Incorporated by reference to "Certain Transactions" on pages 17 and 18 of
the Proxy Statement.
PART IV.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a)(1) The following financial statements are incorporated by reference
from Item 8 hereof and the Annual Report to Stockholders included herein as
Exhibit 13:
Consolidated balance sheets at December 31, 1997 and 1996
Consolidated statements of income for each of the years in the three-year
period ended December 31, 1997
Consolidated statements of changes in shareholders' equity for each of the
years in the three-year period ended December 31, 1997
Consolidated statements of cash flows for each of the years in the
three-year period ended December 31, 1997
Notes to Consolidated Financial Statements
Independent Auditors' Report
(a)(2) All other schedules for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are omitted
because of the absence of conditions under which they are required or because
the required information is included in the financial statements and related
notes thereto.
(a)(3) The following exhibits are included as part of this Form 10-K.
14
16
Exhibit No. Exhibit Location
- ----------- ------- --------
3(a)(1) Articles of Incorporation of the Company, as amended (1)
3(a)(2) Amended and Restated Articles of (2)
Incorporation of the Company (to become effective
upon consummation of the Company's pending
acquisition of CFX Corporation)
3(a)(3) Amendment to the Articles of Incorporation of (3)
the Company (subject to approval of the Company's
stockholders at the annual meeting of stockholders to be
held on April 28, 1998)
3(b) Bylaws of the Company (1)
4(a) Specimen Common Stock certificate (1)
4(b) Form of Indenture between the Company and Mellon
Bank, N.A., as trustee (4)
4(c) Form of Debenture due 2000 (4)
4(d) Amended and Restated Declaration of Trust relating to (5)
Peoples Heritage Capital Trust I, dated as of January
31, 1997, between the Company and the trustees named
therein
4(e) Form of Common Securities and form of Capital (5)
Securities of Peoples Heritage Capital Trust I (included
as Exhibits to the Amended and Restated Declaration
included as Exhibit 4(d))
4(f) Indenture, dated as of January 31, 1997, between the (5)
Company and The Bank of New York, as trustee,
relating to Junior Subordinated Deferrable Interest
Debentures due 2027 of the Company
4(g) Form of Junior Subordinated Deferrable Interest (5)
Debentures due 2027 of the Company (included as
Exhibit A to the Indenture included as Exhibit 4(f))
4(h) Series A Capital Securities Guarantee Agreement, dated (6)
as of January 31, 1997, relating to the Series A Capital
Securities of Peoples Heritage Capital Trust I
4(i) Common Securities Guarantee Agreement, dated as of (6)
January 31, 1997, relating to the Common Securities of
Peoples Heritage Capital Trust I
15
17
10(a) Amended and Restated Severance Agreement between (7)
the Company and William J. Ryan
10(b) Amended and Restated Severance Agreement between (7)
the Company and Peter J. Verrill
10(c) Form of Severance Agreement between the Company (6)
and each of R. Scott Bacon, David D. Hindle, John W.
Fridlington, Glenn McAllister, Carol L. Mitchell and
Wendy Suehrstedt
10(d) Form of Amendment to Severance Agreement between
the Company and each of R. Scott Bacon and David D.
Hindle
10(e) Supplemental Retirement Agreement among the (8)
Company, its subsidiaries and William J. Ryan
10(f) Supplemental Retirement Agreement among the (8)
Company, its subsidiaries and Peter J. Verrill
10(g) Supplemental Retirement among the Company, its (9)
subsidiaries and John W. Fridlington
10(h) Form of Supplemental Retirement Agreement among the
Company, its subsidiaries and each of R. Scott Bacon,
Carol L. Mitchell and Wendy Suehrstedt
10(i) Senior Officers' Deferred Compensation Plan, as (10)
amended
10(j) Directors' Deferred Compensation Plan, as amended (10)
10(k) 1986 Stock Option and Stock Appreciation Rights (1)(11)
Plan, as amended
10(l) 1986 Employee Stock Purchase Plan, as amended (1)(11)
10(m) Amended and Restated Restricted Stock Plan for Non- (6)
Employee Directors
10(n) Amended and Restated 1995 Stock Option Plan for Non- (12)
Employee Directors
10(o)(1) Amended and Restated Thrift Incentive Plan (6)
10(o)(2) First Amendment to Amended and Restated Thrift (6)
Incentive Plan
10(p)(1) Profit Sharing Employee Stock Ownership Plan (13)
16
18
10(p)(2) First Amendment to Profit Sharing Employee Stock (7)
Ownership Plan
10(p)(3) Second Amendment to Profit Sharing Employee Stock (7)
Ownership Plan
10(q)(1) 1996 Equity Incentive Plan (14)
10(q)(2) 1996 Equity Incentive Plan, as amended (subject to (3)
approval of the Company's stockholders at the annual
meeting of the Company's stockholders to be held on
April 28, 1998)
10(r) Agreement, dated January 1, 1989, by and among the (10)
Company and Robert P. Bahre
10(s) Stockholders Rights Agreement, dated September 12, (15)
1989, between the Company and American Stock
Transfer & Trust Company, as Rights Agent
10(t) Supplemental Retirement Agreement among the (6)
Company, its subsidiaries and Glen McAllister
10(u) Bank of New Hampshire Corporation Executive Excess (16)
Benefit Plan for Paul R. Shea
10(v) Supplemental Executive Retirement Plan agreement (17)
between The Family Mutual Savings Bank and
David D. Hindle
10(w) Split Dollar Insurance Agreement between The (18)
Family Mutual Savings Bank and David D. Hindle
13 Annual Report to Stockholders for 1997
21 Subsidiaries of the Company
23 Consent of KPMG Peat Marwick LLP
27 Financial Data Schedule
- -----------
(1) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 33-20243) filed by the Company with the Securities and Exchange Commission
("SEC") on February 22, 1988. An amendment to the Articles of Incorporation is
incorporated by reference to the proxy statement filed by the Company with the
SEC on April 23, 1996.
17
19
(2) Incorporated by reference to the Agreement and Plan of Merger, dated as of
October 27, 1997, between the Company and CFX Corporation, which is included as
Exhibit A to the Prospectus/Proxy Statement included in the Form S-4
Registration Statement (No. 333- 23991) filed by the Company on December 31,
1997.
(3) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 23, 1998.
(4) Exhibit is incorporated by reference to the Form 8-K report filed by the
Company with the SEC on February 28, 1995.
(5) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 333-23991) filed by the Company with the SEC on March 26, 1997.
(6) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1996, filed with the SEC on March 31, 1997.
(7) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1995, filed with the SEC on March 29, 1996.
(8) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1990, filed with the SEC on March 23, 1991.
(9) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1994, filed with the SEC on March 30, 1995.
(10) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1993, filed with the SEC on March 17, 1994.
(11) An amendment to the 1986 Stock Option and Stock Appreciation Rights Plan is
incorporated by reference to the proxy statement filed by the Company with the
SEC on March 24, 1994, and an amendment to the Employee Stock Purchase Plan is
incorporated by reference to the proxy statement filed by the Company with the
SEC on March 24, 1993.
(12) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 21, 1997.
(13) Exhibit is incorporated by reference to the Form S-1 Registration Statement
(No. 33- 53236) filed by the Company with the SEC on November 23, 1992.
(14) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 20, 1996.
18
20
(15) Exhibit is incorporated by reference to the Form 8-K report filed by the
Company with the SEC on September 13, 1989.
(16) Exhibit is incorporated by reference to the Form 10-K report filed by Bank
of New Hampshire Corporation (File No. 0-9517) for the year ended December 31,
1994.
(17) Exhibit is incorporated by reference to the Form 10-K report filed by
Family Bancorp (File No. 0-17252) for the year ended December 31, 1993.
(18) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 33- 18613) filed by Family Bancorp.
The Company's management contracts or compensatory plans or arrangements
consist of Exhibit Nos. 10(a)-(w) (excluding Exhibit 10(s)).
(b) The Company filed reports on Form 8-K on October 1, 1997, October 10,
1997, October 27, 1997 and November 3, 1997.
(c) See (a)(3) above for all exhibits filed herewith and the Exhibit Index.
(d) There are no other financial statements and financial statement
schedules which were excluded from the Annual Report to Stockholders which are
required to be included herein.
19
21
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act
of 1934, the Company has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly organized.
PEOPLES HERITAGE FINANCIAL GROUP, INC.
By: /s/ William J. Ryan Date: March 24, 1998
-------------------------------------
William J. Ryan
Chairman, President and Chief
Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons in the capacities and on
the dates indicated.
/s/ Robert P. Bahre Date: March 24, 1998
- -----------------------------------------
Robert P. Bahre
Director
/s/ Everett W. Gray Date: March 24, 1998
- -----------------------------------------
Everett W. Gray
Director
/s/ Andrew W. Greene Date: March 24, 1998
- -----------------------------------------
Andrew W. Greene
Director
/s/ Katherine M. Greenleaf Date: March 24, 1998
- -----------------------------------------
Katherine M. Greenleaf
Director
20
22
/s/ Dana S. Levenson Date: March 24, 1998
- -----------------------------------------
Dana S. Levenson
/s/ Robert A. Marden, Sr. Date: March 24, 1998
- -----------------------------------------
Robert A. Marden, Sr.
Vice Chairman
/s/ Malcolm W. Philbrook, Jr. Date: March 24, 1998
- -----------------------------------------
Malcolm W. Philbrook, Jr.
Director
/s/ Pamela P. Plumb Date: March 24, 1998
- -----------------------------------------
Pamela P. Plumb
Vice Chairman
/s/ William J. Ryan Date: March 24, 1998
- -----------------------------------------
William J. Ryan
Chairman, President and Chief
Executive Officer
(principal executive officer)
/s/ Curtis M. Scribner Date: March 24, 1998
- -----------------------------------------
Curtis M. Scribner
Director
/s/ Paul R. Shea Date: March 24, 1998
- -----------------------------------------
Paul R. Shea
Director
21
23
/s/ Davis P. Thurber Date: March 24, 1998
- -----------------------------------------
Davis P. Thurber
Director
/s/ John E. Veasey Date: March 24, 1998
- -----------------------------------------
John E. Veasey
Director
/s/ Peter J. Verrill Date: March 24, 1998
- -----------------------------------------
Peter J. Verrill
Executive Vice President, Chief Operating Officer,
Chief Financial Officer and Treasurer (principal financial
and accounting officer)
22
24
EXHIBIT INDEX
Exhibit No. Exhibit Location
- ----------- ------- --------
3(a)(1) Articles of Incorporation of the Company, as amended (1)
3(a)(2) Amended and Restated Articles of Incorporation (2)
of the Company (to become effective upon
consummation of the Company's pending acquisition
of CFX Corporation)
3(a)(3) Amendment to the Articles of Incorporation of (3)
the Company (subject to approval of the Company's
stockholders at the annual meeting of stockholders
to be held on April 28, 1998)
3(b) Bylaws of the Company (1)
4(a) Specimen Common Stock certificate (1)
4(b) Form of Indenture between the Company and Mellon
Bank, N.A., as trustee (4)
4(c) Form of Debenture due 2000 (4)
4(d) Amended and Restated Declaration of Trust relating to (5)
Peoples Heritage Capital Trust I, dated as of January
31, 1997, between the Company and the trustees named
therein
4(e) Form of Common Securities and form of Capital (5)
Securities of Peoples Heritage Capital Trust I (included
as Exhibits to the Amended and Restated Declaration
included as Exhibit 4(d))
4(f) Indenture, dated as of January 31, 1997, between the (5)
Company and The Bank of New York, as trustee,
relating to Junior Subordinated Deferrable Interest
Debentures due 2027 of the Company
4(g) Form of Junior Subordinated Deferrable Interest (5)
Debentures due 2027 of the Company (included as
Exhibit A to the Indenture included as Exhibit 4(f))
4(h) Series A Capital Securities Guarantee Agreement, dated (6)
as of January 31, 1997, relating to the Series A Capital
Securities of Peoples Heritage Capital Trust I
25
Exhibit No. Exhibit Location
- ----------- ------- --------
4(i) Common Securities Guarantee Agreement, dated as of (6)
January 31, 1997, relating to the Common Securities of
Peoples Heritage Capital Trust I
10(a) Amended and Restated Severance Agreement between (7)
the Company and William J. Ryan
10(b) Amended and Restated Severance Agreement between (7)
the Company and Peter J. Verrill
10(c) Form of Severance Agreement between the Company (6)
and each of R. Scott Bacon, David D. Hindle, John W.
Fridlington, Glenn McAllister, Carol L. Mitchell and
Wendy Suehrstedt
10(d) Form of Amendment to Severance Agreement between
the Company and each of R. Scott Bacon and David D.
Hindle
10(e) Supplemental Retirement Agreement among the (8)
Company, its subsidiaries and William J. Ryan
10(f) Supplemental Retirement Agreement among the (8)
Company, its subsidiaries and Peter J. Verrill
10(g) Supplemental Retirement among the Company, its (9)
subsidiaries and John W. Fridlington
10(h) Form of Supplemental Retirement Agreement among the
Company, its subsidiaries and each of R. Scott Bacon,
Carol L. Mitchell and Wendy Suehrstedt
10(i) Senior Officers' Deferred Compensation Plan, as (10)
amended
10(j) Directors' Deferred Compensation Plan, as amended (10)
10(k) 1986 Stock Option and Stock Appreciation Rights (1)(11)
Plan, as amended
10(l) 1986 Employee Stock Purchase Plan, as amended (1)(11)
10(m) Amended and Restated Restricted Stock Plan for Non- (6)
Employee Directors
10(n) Amended and Restated 1995 Stock Option Plan for Non- (12)
Employee Directors
10(o)(1) Amended and Restated Thrift Incentive Plan (6)
26
Exhibit No. Exhibit Location
- ----------- ------- --------
10(o)(2) First Amendment to Amended and Restated Thrift (6)
Incentive Plan
10(p)(1) Profit Sharing Employee Stock Ownership Plan (13)
10(p)(2) First Amendment to Profit Sharing Employee Stock (7)
Ownership Plan
10(p)(3) Second Amendment to Profit Sharing Employee Stock (7)
Ownership Plan
10(q)(1) 1996 Equity Incentive Plan (14)
10(q)(2) 1996 Equity Incentive Plan, as amended (subject to (3)
approval of the Company's stockholders at the annual
meeting of stockholders to be held on April 28, 1998)
10(r) Agreement, dated January 1, 1989, by and among the (10)
Company and Robert P. Bahre
10(s) Stockholders Rights Agreement, dated September 12, (15)
1989, between the Company and American Stock
Transfer & Trust Company, as Rights Agent
10(t) Supplemental Retirement Agreement among the (6)
Company, its subsidiaries and Glen McAllister
10(u) Bank of New Hampshire Corporation Executive Excess (16)
Benefit Plan for Paul R. Shea
10(v) Supplemental Executive Retirement Plan agreement (17)
between The Family Mutual Savings Bank and
David D. Hindle
10(w) Split Dollar Insurance Agreement between The (18)
Family Mutual Savings Bank and David D. Hindle
13 Annual Report to Stockholders for 1997
21 Subsidiaries of the Company
23 Consent of KPMG Peat Marwick LLP
27 Financial Data Schedule
- ------------
(1) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 33-20243) filed by the Company with the Securities and Exchange Commission
("SEC") on February 22, 1988. An amendment to the Articles of Incorporation is
incorporated by reference to the proxy statement filed by the Company with the
SEC on April 23, 1996.
27
(2) Incorporated by reference to the Agreement and Plan of Merger, dated as of
October 27, 1997, between the Company and CFX Corporation, which is included as
Exhibit A to the Prospectus/Proxy Statement included in the Form S-4
Registration Statement (No. 333- 23991) filed by the Company on December 31,
1997.
(3) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 23, 1998.
(4) Exhibit is incorporated by reference to the Form 8-K report filed by the
Company with the SEC on February 28, 1995.
(5) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 333-23991) filed by the Company with the SEC on March 26, 1997.
(6) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1996, filed with the SEC on March 31, 1997.
(7) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1995, filed with the SEC on March 29, 1996.
(8) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1990, filed with the SEC on March 23, 1991.
(9) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1994, filed with the SEC on March 30, 1995.
(10) Exhibit is incorporated by reference to the Company's Form 10-K report for
the year ended December 31, 1993, filed with the SEC on March 17, 1994.
(11) An amendment to the 1986 Stock Option and Stock Appreciation Rights Plan is
incorporated by reference to the proxy statement filed by the Company with the
SEC on March 24, 1994, and an amendment to the Employee Stock Purchase Plan is
incorporated by reference to the proxy statement filed by the Company with the
SEC on March 24, 1993.
(12) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 21, 1997.
(13) Exhibit is incorporated by reference to the Form S-1 Registration Statement
(No. 33- 53236) filed by the Company with the SEC on November 23, 1992.
(14) Exhibit is incorporated by reference to the proxy statement filed by the
Company with the SEC on March 20, 1996.
28
(15) Exhibit is incorporated by reference to the Form 8-K report filed by the
Company with the SEC on September 13, 1989.
(16) Exhibit is incorporated by reference to the Form 10-K report filed by Bank
of New Hampshire Corporation (File No. 0-9517) for the year ended December 31,
1994.
(17) Exhibit is incorporated by reference to the Form 10-K report filed by
Family Bancorp (File No. 0-17252) for the year ended December 31, 1993.
(18) Exhibit is incorporated by reference to the Form S-4 Registration Statement
(No. 33- 18613) filed by Family Bancorp.