Business & Tech

Deal to buy Boston-based Admirals Bank is called off

A group of investors has called off a deal to buy Boston-based Admirals Bank.

Through a spokesman, First Boston Holdings would only say it backed out “after careful deliberations and review.” Spokesman Joe Baerlein said First Boston’s senior management, led by former Boston Private Bank & Trust chief executive Mark Thompson, “will not be considering other strategic acquisitions.”

The deal’s demise comes after the US Office of the Comptroller of the Currency issued a consent order in April requiring Admirals, which has offices in Boston and Providence, to improve its corporate governance and capital ratios. The order prevented the bank from paying dividends to investors or directors’ fees without being in compliance with an approved capital plan.


First Boston had expected to buy Admirals’ traditional banking business and rename it as Bank & Trust Company of Boston. Admirals also runs a financing business for solar energy.

When Thompson approached Admirals about the deal last year, Admirals had already racked up two years of losses.

Jon Chesto can be reached at Follow him on Twitter @jonchesto.