General

        Seacoast Financial Services Corporation (the Company or Seacoast) is a bank holding company, registered with the Board of Governors under the Bank Holding Company Act of 1956, as amended (the BHCA). The Company has two wholly owned bank subsidiaries: Compass Bank for Savings (Compass) and Nantucket Bank, both of which are Massachusetts-chartered stock savings banks. Compass and Nantucket Bank are collectively referred to herein as the Banks.

        Until the completion of a mutual to stock conversion and initial public offering of stock on November 20, 1998,...