TD Banknorth, previously known simply as Banknorth, was a fully owned subsidiary of the Toronto-Dominion Bank. It operated primarily in the northeastern United States, with its headquarters in Portland, Maine. In May 2008, the institution officially adopted the name TD Bank, N.A., marking a major milestone in its evolution.
Toronto-Dominion Bank first bought a majority stake in Banknorth in August 2004. The name was then updated to “TD Banknorth, N.A.”. On April 20, 2007, Toronto-Dominion Bank completed the purchase of all remaining shares, giving it full ownership of the company.
TD Banknorth’s operations were spread across several regional banks, including Banknorth Connecticut, Peoples Heritage Bank in Maine, Banknorth Massachusetts, Bank of New Hampshire, Evergreen Bank in New York, Hudson United Bank, Banknorth Vermont, and Bancnorth Insurance Group.
A major turning point came on April 10, 2008, when TD Banknorth merged with New Jersey–based Commerce Bank. After the merger, the new entity was called TD Bank, with headquarters in both Portland, Maine and Cherry Hill, New Jersey. The legal name TD Bank, N.A. became official on May 31, 2008.
During the fall of 2008, all Commerce Bank branches and TD Banknorth offices outside New England were rebranded. The final branches in New England received the TD Bank branding in September 2009.
The Early Roots of Banknorth
The Banknorth story goes back to Woodstock National Bank, founded in 1802 in Vermont. Many community banks across Maine and Vermont later became part of what grew into TD Bank.
Portland Savings Bank
Portland Savings Bank was established in 1852, operating only on Wednesdays and Saturdays for two hours. Albion K. Parris, the Mayor of Portland, served as the first President. The bank focused heavily on supporting community and government projects.
By 1902, the bank had grown to 24,000 depositors, nearly $10 million in savings, and nine employees. It survived major crises such as the Great Fire of Portland and the financial panics of 1873 and 1878.
The bank struggled during the Great Depression and formed a special Real Estate Department to manage foreclosed properties. After World War II, the booming housing market helped revive the bank. Between 1965 and 1981, CEO Roger Lambert modernized the bank, expanded business lending, and introduced new customer products.
People’s Savings Bank
Founded in 1875 in Lewiston, Maine, People’s Savings Bank benefited from the strong mill economy. A unique initiative at the time involved opening $1 savings accounts for newborns, which could only be withdrawn after 10 years.
The bank overcame hardships during the decline of the textile industry in the 1920s and 1930s but grew again during World War II. After the war, it supported the transition to new industries in the region.
Heritage Savings Bank and Rockland Savings Bank
Rockland Savings Bank was founded in 1868 and later became Heritage Savings Bank. It merged with Penobscot Savings, Waterville Savings, and others in the 1970s, eventually becoming part of Peoples Heritage.
Growth Through Mergers in Vermont
The Franklin County Savings Bank (1899), Lamoille County Bank & Trust Company (1875), Granite Savings Bank (1885), Howard Bank (1870), and First Vermont Bank & Trust (1906) all played key roles in the formation of Banknorth in Vermont.
By the late 1990s, many of these institutions merged under one umbrella, strengthening Banknorth’s presence in the region.
Peoples Heritage: The Foundation of Modern Banknorth
The late 1970s and early 1980s brought financial difficulties across the thrift industry. Portland Savings and People’s Savings merged in 1982, keeping the name “Peoples.” In 1984, after merging with Heritage Savings, the new entity became Peoples Heritage, a $1 billion institution.
Peoples Heritage expanded rapidly by adding ATMs, launching phone banking, and focusing on commercial lending. By going public in 1986, it gained the financial strength necessary for larger acquisitions.
The bank continued to grow by acquiring several institutions across Maine, New Hampshire, and Massachusetts, including Casco Northern, Bank of Merchants National, First National Bank of Portsmouth, and Oxford Bank & Trust.
Challenges in the Late 1980s and Recovery in the 1990s
Maine’s real estate market collapsed in 1989, triggering losses for Peoples Heritage. New CEO William J. Ryan oversaw restructuring efforts, including reorganizing loan portfolios and selling foreclosed properties. By 1993, the bank had fully recovered.
In the mid-1990s, the bank began aggressively expanding again, acquiring Mid-Maine Savings, Bank of New Hampshire, Family Bancorp, Atlantic Bancorp, and CFX.
In 1999, Peoples Heritage acquired Banknorth Group, adopting the Banknorth name and forming a major regional banking powerhouse with assets of $17 billion.
Banknorth in the 2000s
During the early 2000s, Banknorth focused on community banking and expanded through more acquisitions in Massachusetts, New York, Connecticut, and Vermont. It also created Banknorth Insurance Group, which became the largest insurance brokerage in New England by 2002.
On December 31, 2001, Banknorth consolidated seven subsidiary banks into one, operating under multiple trade names to maintain local identity.
Toronto-Dominion’s Acquisition and Expansion
Toronto-Dominion Bank acquired a 51% stake in Banknorth in August 2004 for $3.8 billion. By April 20, 2007, it owned 100% of the company, which officially became TD Banknorth Inc.
In 2005, TD Banknorth purchased Hudson United Bank, expanding its footprint in Connecticut, New York, northern New Jersey, and Philadelphia. All Hudson United branches were rebranded as TD Banknorth.
The final transformation occurred in 2008 when TD Banknorth merged with Commerce Bank to create TD Bank, N.A., one of the largest banks in the eastern United States.
Questions and Answers
1. What was Banknorth, and how did it change into TD Bank?
Banknorth began as a group of small savings banks in Maine and Vermont. Over the years, it expanded through mergers and acquisitions. Toronto-Dominion Bank bought a majority stake in 2004 and completed the purchase in 2007, later rebranding it as TD Bank, N.A.
2. When did TD Banknorth and Commerce Bank merge, and what happened afterward?
They merged on April 10, 2008. Following the merger, all Commerce Bank and TD Banknorth locations outside New England were rebranded in late 2008, with the remaining branches updated in 2009.
3. Where did TD Banknorth mainly operate before merging with Commerce Bank?
TD Banknorth primarily served the northeastern United States, especially New England, with its headquarters in Portland, Maine.
4. How did TD Bank enlarge its footprint after acquiring Hudson United Bank?
The acquisition expanded TD Bank’s presence in Connecticut, New York, northern New Jersey, and Philadelphia. All Hudson United branches were converted to TD Banknorth.
5. What challenges did Peoples Heritage face in the early 1990s, and how did it recover?
The Maine real estate crash caused major loan losses. The bank recovered by restructuring loans, selling foreclosed properties, and improving asset management.
6. How did TD Bank grow during the 1990s and early 2000s?
Through strategic acquisitions of community banks in Vermont, Maine, Massachusetts, Connecticut, and New York—expanding its regional presence significantly.
7. What legal and operational changes occurred in 2008 at TD Bank, N.A.?
The legal name became TD Bank, N.A., and all branches of Commerce Bank and TD Banknorth underwent a major rebranding process.
8. What historic banks contributed to the formation of TD Bank?
Banks such as Portland Savings Bank, People’s Savings Bank, Heritage Savings Bank, Granite Savings Bank, and many others from the 1800s played a foundational role.
9. How did TD Bank handle economic challenges in the late 1980s and early 1990s?
By reorganizing management, restructuring loan portfolios, and focusing on healthy financial recovery strategies.
10. What makes TD Bank’s approach to community banking unique?
TD Bank combines community banking values with the financial strength of a large institution. By acquiring community-focused banks, it maintains local identity while offering extensive services.
