BANKING & FINANCE - May 31, 1995

Two Thrifts Agree to Merge: Charter One Financial Inc. and FirstFed Michigan Corp., two of the Midwest’s largest thrifts, have agreed to merge in a $1.1-billion stock deal, the companies said. Under the agreement, Charter One will absorb FirstFed, forming the Midwest’s largest savings and loan bank, with $13 billion in assets and 157 branches in Ohio and Michigan. The merged bank will be headquartered in Cleveland, where Charter One is based, and will maintain a Michigan division at FirstFed’s Detroit headquarters. All 157 branches will remain open, the banks said. However, some computer operations will be consolidated and certain support services now performed in Ohio will be shifted to Detroit.