Fed approves merger creating the largest bank in Nevada

Wednesday, Oct. 11, 2000 | 11:09 a.m.

SUN STAFF AND WIRE REPORTS

The Federal Reserve on Tuesday approved Wells Fargo & Co.'s $3.2 billion purchase of First Security Corp., clearing the way for a combined bank that will be the largest in Utah, Nevada, Idaho and New Mexico.

The vote was 5-0 by the central bank's board of governors, who determined that the acquisition of Utah's biggest bank by Wells Fargo, the nation's seventh largest, would not threaten banking competition.

The combined bank will have some $241 billion in assets and operations in 23 states.

The proposed merger was announced in April after First Security's long-running plan to merge with fellow Utah bank Zions Bancorp. was rejected by Zions shareholders. In Nevada, Zions operates as Nevada State Bank.

In Nevada, the combined Wells Fargo and First Security will overtake Bank of America to become the largest bank in the state.

Wells Fargo is now No. 2 in Las Vegas with $2.8 billion of deposits, or 26.2 percent of the market. First Security is No. 4 with $904 million in deposits or 8.3 percent of the market.

The combined banks will sell seven branches in Las Vegas with $393 million in deposits to BankWest Corp. of Honolulu in order to comply with antitrust law.

The Fed noted that even after the sale of those branches, the combined Wells-First Security will have more than the usual limit of 30 percent of the Las Vegas market.

But it approved the merger anyway, noting there is vigorous competition in Las Vegas, where there are 22 other banks and savings and loans and where deposits have soared 71.4 percent since 1995 compared to the national deposit growth of 18 percent.