First Security merger results in nine LV branch closures

Phil Levine

Thursday, Dec. 16, 1999 | 11:11 a.m.

Nine Las Vegas and Henderson bank branches will close because of the merger between First Security Bank and Zions Bancorporation, the Salt Lake City banks announced today.

Zions is parent company to both Nevada State Bank and recently acquired Pioneer Citizens Bank. Once the merger is complete, all three banks will operate under the First Security name.

Pending shareholder approval at a Dec. 28 meeting, banking activity at the nine closed branches will be consolidated into other First Security and Zions-owned branches. The bank closures take effect Jan. 14.

Two additional branches will be closed in Northern Nevada because of the merger.

First Security spokesman Jeff Bargerhuff said no layoffs would result from the bank closings.

"We may have to shuffle some people around, but frankly even after this move, we will still have more spots available than warm bodies to fill them," he said. "The same is true in terms of managers. Some will be promoted within the company, while others may just be shuffled to other locations."

The Federal Reserve and Department of Justice in the past two weeks approved the merger. Though the two banks were ordered to sell 68 branches in Utah and Idaho to comply with antitrust law, federal authorities said no divestiture of Nevada operations was required.

Nevada State Bank currently operates 45 Nevada branches, while First Security and Pioneer Citizens have 22 and 13, respectively.

In Nevada, the three banks will complete the integration of their bank operations on Jan. 18, other state systems should be integrated by next summer.

Despite the branch closings, Bargerhuff said First Security is looking to expand its Clark County presence by opening three or four new branches next year.

Accounts at the nine branches slated for closing next month will be combined into other nearby offices.

The Las Vegas branches affected are:

In Henderson, the branches to close are:

Accounts from both Henderson branches will move to Nevada State's 1051 W. Warm Springs Road office.

Bargerhuff said current First Security Nevada President and Chief Executive Dave Smith will continue to hold that position once the merger is complete.

George Hofmann, former president and CEO of Nevada State Bank, is also playing a key role in the merger's completion.

Bargerhuff said Hoffman is serving a two-year stint as a Salt Lake City-based senior advisor assisting in the consolidation of the three banks.