The $265 million bank, which has had some run-ins with federal regulators over a now-defunct mortgage subsidiary, says it is in the process of changing its name to Admirals Bank, shedding the institution’s last vestiges of the Baker family that founded the bank in 1967. The Bakers sold the bank to Federal One Holdings LLC earlier this year.

Bank officials said the changes will have no effect on customers’ day-to-day dealings with the bank. Account numbers, checks, credit cards and ATM cards will remain valid. The name will change officially in November.

Domestic also announced this week that it is purchasing four former Millennium Bank branches in Massachusetts from Short Hills, N.J.-based Investors Bancorp Inc. Investor Bancorp this week finalized the acquisition of 17 Millennium branches, mostly in New Jersey.

Publicly traded Investors said it is selling the four Massachusetts branches – which have combined deposits of $85 million – for a premium of 11 basis points. The transaction, which is subject to regulatory approvals, is expected to be finalized in the 2011 first quarter.

Bank officials said the acquisition will be financed by Federal One Holdings.

The Millennium branches, two of which are located in New Bedford, one in Fall River and one in Ludlow, are expected to be added to its nine-branch network, which includes eight in-store locations. Two of the nine Domestic branches are located in Massachusetts.

Sterling, Va.-based Millennium Bank, a subsidiary of Portuguese bank Millennium bcp, got into financial trouble in recent years in part because of bad loans. In 2009, the bank reached an agreement with the U.S. Office of the Comptroller of the Currency to either sell the bank or merge it with another institution.

Closely held Domestic made news in 2008 when it agreed to pay $1.8 million in penalties for the lending practices of a mortgage subsidiary that federal regulators described as “unsafe and unsound, deceptive [and] inconsistent.”

In May, Federal One Holdings purchased the bank, marking the end of the Baker family’s involvement. Nathaniel B. Baker, Domestic’s founder and former chairman, president and CEO, retired in 2008.

Earlier this month, a Connecticut executive who operated an ATM dispensing company admitted his involvement in a scheme that cost Domestic Bank $4.8 million. A similar scheme by another company cost the bank $3.2 million.

But Domestic’s new owner said the crimes took place before it purchased the bank, and affected the ATM network, which was not part of the acquisition.

Officials said the fraud did not affect the new owner.

As of June 30, the bank had $264.66 million in total assets, up from $234.01 million three months earlier, according to regulatory filings. Deposits are also on the rise, up to $221.99 million as of June 30 from $199.85 million on March 31.

In federal regulatory reports, Domestic posted a $261,000 profit for the first half of 2010, but it had a $394,000 loss before “extraordinary items” totaling $655,000 was included in the calculation.

Bank officials declined to explain those extraordinary items.