SAN FRANCISCO (Bloomberg) — Wells Fargo & Co., the seventh-largest U.S. bank, said Friday it agreed to buy Brenton Banks Inc. and a subsidiary for $264.5 million in stock, boosting its presence in Iowa.
Wells will exchange about $255.7 million of stock for the outstanding shares of Brenton Banks Inc. and another $8.8 million for stock in its Brenton Bank subsidiary owned by outside shareholders.
The purchase gives San Francisco-based Wells Fargo a bank with 43 branches in Iowa and $2 billion in assets. Brenton Banks has 679 employees.
A change in Iowa law earlier this year opened the door for Wells Fargo to make the purchase, according to Wells Fargo spokesman Robert de la Vega. Until this year, banks with more than a 10 percent share of Iowa deposits weren't allowed to make acquisitions in the state. Wells currently has about 11 percent of Iowa deposits, he said.
Wells Fargo is currently acquiring Salt Lake City-based First Security Corp.