[copperpress-advertserve-ad-reload zone="3"]
ARCHIVED  July 16, 1999

Zions, Community First abandon swap

GREELEY — Zions Bancorporation (Nasdaq: ZION) and Community First Bankshares Inc. (Nasdaq: CFBX) have terminated their April 8, 1999, agreement to swap their branch office locations in Greeley and Nephi, Utah.

The deal was abandoned after the announcement of Zions’ pending merger with First Security Corp. (Nasdaq: FSCO). Federal regulations would have conflicted with the over-representation of commercial banks controlled by the Zions-First Security Corp. entity in Nephi’s county had the trade gone through.

“They (Zions-First Security Corp.) would have had too great a concentration in that area. There would have been no competing bank there, and the regulators won’t allow that,” reported Matt Varney, president of Community First National Bank in Greeley.

He added: “Naturally it’s a disappointment because we wanted to increase our presence in Greeley, but I would say Community First is going to continue work to both market the Nephi branch and increase our presence in Greeley.”

The biggest concern with the swap was the customers, Curt Swensen, spokesman for Community First reported. To remain in compliance with the regulatory agencies, First Security Corp. would have been forced to resell the Nephi branch without delay, bouncing branch customers through two institution changes in a matter of months. “It just made better sense to just cancel the transaction rather than put all the customers through the confusion,” Swensen asserted.

“We will continue to look for locations in Greeley but absolutely will retain the one we’ve got there,´ said Gary Judd, senior vice president of Zions and president and CEO of Vectra Bank (a subsidiary of Zions).

He added that the merger with First Security Corp. will not affect Zions’ game plan for Colorado. “Colorado is one of two states that has no overlap with First Security. We will continue to keep building our Colorado franchise — there is no integration we have to do here.”

Zions’ recent agreement with First Security Corp. positions the dual entity as the 20th-largest bank holding company in the nation, with approximately $40 billion in assets. The company resulting from the merger will retain the First Security Corp. name, with headquarters in Salt Lake City.

GREELEY — Zions Bancorporation (Nasdaq: ZION) and Community First Bankshares Inc. (Nasdaq: CFBX) have terminated their April 8, 1999, agreement to swap their branch office locations in Greeley and Nephi, Utah.

The deal was abandoned after the announcement of Zions’ pending merger with First Security Corp. (Nasdaq: FSCO). Federal regulations would have conflicted with the over-representation of commercial banks controlled by the Zions-First Security Corp. entity in Nephi’s county had the trade gone through.

“They (Zions-First Security Corp.) would have had too great a concentration in that area. There would have been no competing bank there, and the regulators won’t allow that,”…

[copperpress-advertserve-ad-reload zone="3"]

Related Content

[copperpress-advertserve-ad-interstitial zone="30"]