Zions Bank or Wells Fargo bank offices in St. George, Cedar City, Logan and Price likely will close as the result of a pending sale of 32 Wells Fargo branches in four states to Zions Bancorp.
The announcement made Friday by Zions means Wells Fargo bank offices in Arizona, Nevada, Idaho and in North Logan and Coalville will simply change their names and ownership.However, in the four Utah cities, where both banks have branches near each other, only one of the Zions Bank or Wells Fargo offices will remain under the Zions name, according to Scott Anderson, executive vice president of Zions Bank.
"The branches (in the four cities) are within a block or two blocks of each other. We plan to keep all of the people. We will conduct a survey and consider merging their offices with ours or move into their office. . . . It doesn't make sense to keep both offices open," Anderson said.
The Price office sale may come under scrutiny by regulators, Anderson said, because Zions Bank has a predominant market share in the Carbon County city. If federal regulators won't permit the move, Zions will have to consider selling that Wells Fargo branch.
Zions' acquisition of 11 branches of Aspen Bankshares, announced in November, and the proposed acquisition of the 32 Wells Fargo branches mark a major expansion for the corporation in the Mountain West.
Harris H. Simmons, president and chief executive officer of Zions Bancorporation, commented that the purchase complements the company's branch network in Arizona, Nevada and Utah and extends its distribution network system into Idaho.
- Nevada branches include those in Eureka, Fernley, Lovelock, Tonopah and Wells. Those branches will assume the Nevada State Bank name, under which Zions operates.
- Idaho branches include two in Lewiston as well as those in Bon-ners Ferry, Burley, Gooding, Moscow, New Plymouth, Richfield, Weiser and Wilder. Zions has not determined what name will be used by these branches, but spokes-man Dale Gibbons said it is likely the firm will follow its practice of having separate names in different markets.
- Arizona branches include those in Benson, Bisbee, Douglas, Eloy, Florence, Page, Safford, Somerton, Springerville, Wellton and Williams. Those branches will carry the name of National Bank of Arizona, the name used by existing Zions branches.
"I am delighted that our company has the opportunity to strengthen and expand its franchise in Arizona, Nevada and Utah and establish community banking services in Idaho. We look forward to providing local management and decisionmaking to address the financial services needs in these markets," Simmons said.
Zions has agreed to pay Wells Fargo 6.17 percent of the deposits plus the book value of the branch real estate and other fixed assets. On Jan. 31, the branch deposits totaled approximately $550 million. The sale does not include loans, except those that are deposit-secured. Subject to regulatory approval, the transaction is expected to close in July. Prior to the change, employees and customers will be given information introducing them to Zions and its bank subsidiaries. In the interim, Wells Fargo banking services will continue to be provided.
"The decision to sell was difficult," said Joe Stiglich, Wells Fargo executive vice president. "How-ever, these branches are located in rural communities without easy access to our network of Wells Fargo retail outlets, such as in-store branches, banking centers, ATMs and traditional outlets. We . . . cannot deliver the advantages of our anytime-anywhere banking strategy to these communities."