B of A merger steers clear of controversy in Nevada

Tuesday, Oct. 6, 1998 | 11:28 a.m.

Bank of America appears to have succeeded in completing a merger that won't cause a lot of controversy in Nevada.

And that's no small feat, considering the pain endured by B of A rival Wells Fargo in its 1996 takeover of First Interstate Bank and in its current merger with Norwest Bank.

Wells Fargo was criticized for computer and customer service problems after the First Interstate takeover. Now, Wells Fargo and Norwest must decide which Nevada branches to close or sell. The merger requires some branches be spun off in Nevada -- where the two banks have significant overlap -- in order to comply with antitrust law.

B of A isn't looking at closing or selling any Nevada branches due to its merger with NationsBank simply because NationsBank didn't operate retail branches in Nevada.

George Smith, B of A Nevada area executive, said the newly merged bank will continue to be a big lender to the gaming industry and that the merger will in no way hamper the bank's ability to meet the credit needs of its customers.

B of A is Nevada's largest bank with $3.95 billion in deposits.

With 88 Nevada branches, B of A's 2,000 retail banking employees' jobs in the state are secure.

The bank has another 600 workers in Nevada at regional and back-office operations like an auto dealer lending center and a Small Business Administration loan office.

Smith said there are no current plans to close or move those offices. But he said those jobs potentially could be affected by consolidation in the future.

"I tell people 'If you're not touching the customer eyeball to eyeball, your job is always subject to consolidation,"' Smith said.

Smith and bank spokesman Paul Stowell said it will take until next summer to integrate the two banks' computer systems.

In the meantime, B of A will honor the pre-printed checks of NationsBank customers and B of A and NationsBank customers can use each others' ATMs with no fee. But Nevada branches can't yet accept deposits from NationsBank customers.

NationsBank customers moving into Nevada and desiring to stay with the bank are advised to open a B of A account so they don't have to wait for the computers to be merged.

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