First Security Corp. has signed an agreement to acquire First National Financial Corp. of Albuquerque in a $200 million deal that will be First Security's first acquisition in New Mexico.
Under the terms, First National Bank in Albuquerque will be operated as a separate subsidiary of Salt Lake-based First Security.First National shareholders will receive 1.6696 shares of First Security common stock for each share of First National stock they own. Some 4.4 million shares of First National are outstanding.
Based on a current market price of $27.25 cents per share for First National's stock, the merger is valued at $200 million.
Subject to regulatory and shareholder approvals, the acquisition is expected to be completed next year.
First National has assets of $1.2 billion, deposits of $1.1 billion and loans of $564 million. It operates 23 bank offices in Albuquerque, two in Santa Fe and one in Espanola.
Its record 1992 income of $13.1 million generated returns of 1.02 percent on average assets and 16.59 percent on average equity.
"First National is a well-respected, well-managed and well-capitalized banking organization," said Spencer F. Eccles, chairman of First Security Corp. "It is the second largest bank in metropolitan Albuquerque and the third largest bank in New Mexico."