Sovereign Bank Announces Low ATM Surcharge for Non Customers

Business Wire, May 15, 2000

Business/Banking Editors

BOSTON--(BUSINESS WIRE)--May 15, 2000

Sovereign Bancorp, Inc., (NASDAQ/NMS:SVRN) today announced that ATM surcharges for non customers will be 75 cents per transaction. The bank's decision to charge a low rate was made with awareness of customer apprehensions about ATM charges. The bank is in the process of converting a total of 285 community banking offices with 556 ATM machines throughout New England from BankBoston.

"We are sensitive to the valid concerns about the expense of using ATM's and decided to enter the New England market with an affordable rate. As we become more well known, we hope that our emphasis on affordability of our products and the community-based services that we offer will encourage new customers to join Sovereign Bank," said John Hamill, chairman and CEO, Sovereign Bank New England.

Sovereign Bank New England offers a full-range of banking products and services for business, government and consumer customers. SBNE's lines of business will include Commercial, Business and Retail Banking, Cash Management, International Banking Services/trade Financing, Private Banking, Mortgage Banking, Asset-Based Lending, Precious Metals Financing, Auto Finance, Commercial Real Estate, International Banking Services, Government Banking, Small Ticket Leasing and Capital Markets.

State Treasurer Shannon O'Brien, who has fought rising ATM fees, acknowledged Sovereign's recognition of non-Sovereign customer concerns. "Consumers are tired of being nickled and dimed. Ideally there would be no such thing as an ATM surcharge, but it's important to note that a 75-cent surcharge is 44 per cent less than the national average surcharge of $1.33. In the face of rising bank fees throughout the region, Sovereign's decision to keep the divested Fleet and BankBoston ATMs at 75 cents is an important step in the right direction."

Next month Sovereign Bank will proceed with the second of three conversions on June 16th and includes 82 branches and 161 ATMs in Eastern Massachusetts. The final conversion culminates on July 21st and includes 113 branches and 220 ATMs. In March, Sovereign transferred more than 800,000 consumer and business accounts including $4 billion in deposits and $3.5 billion in loans from branches in Connecticut, Rhode Island and Western Massachusetts.

Sovereign Bank New England, a part of Sovereign Bancorp, is headquartered in Boston, MA with regional headquarters in Providence, RI and Hartford, CT. Pro forma after the pending acquisition of assets and deposits from FleetBoston Financial, which is expected to close in the 2nd quarter of 2000, Sovereign Bank New England will be the third largest bank in the region with 285 community banking offices and 556 ATM machines throughout New England. Pro forma, Sovereign Bancorp, Inc. will be about the 25th largest bank in the country with more than 600 community banking offices and more than $35 billion in assets, with 8,500 team members from New England to Pennsylvania and Delaware.