First Security Bank Divestiture

This all started back on June 6th, when the two institutions announced they were combining forces. First Security and Zions are the oldest banks in Utah, and together, become the largest in the state.

But it means, losing some long-time branches.

63 total, in Utah and Idaho. Zions will close 40 in Utah; and 5 in Idaho. First Security loses 18 in Utah.

Nearly 500 employees work at those 63 branches...

Tonight, managers of both institutions have called meetings at the various branches, to inform employees of the closure. The good news is, the workers, will NOT lose their jobs. Whichever bank that buys the 63 branches, will keep all the current employees.

And one other item of note, regarding the divestiture--those 63 branches, if purchased by one company, would become the *2nd* largest bank in the state! That's how big a deal this is!

Offical Press Release
Department of Justice

Washington, D.C. -- Two Salt Lake City-based banks - Zions Bancorporation and First Security Corporation - have agreed to sell about $2 billion in deposits in 63 branch offices in Utah and Idaho in order to resolve the Department of Justice's antitrust concerns about the companies' pending merger. The Department said that the deal, as originally proposed, would have been anticompetitive resulting in customers having fewer choices for banking services.

The companies will divest 58 branches with $1.9 billion in deposits in Utah and five branches with $81 million in deposits in Idaho. The companies also will sell the commercial, consumer, and agricultural loans associated with the divested branches. In addition, they will not preclude other financial institutions from leasing or purchasing any bank branches in Utah and Idaho that they may close due to consolidation resulting from this merger.

"These divestitures will preserve competition throughout the banking markets served by these parties, whether urban, suburban or rural," said Joel I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "The divestitures will ensure that customers will continue to have choices for banking services."

The proposed merger of Zions and First Security will create the 20th largest banking institution in the United States, The merged institution will be the leading bank in the State of Utah. (source: Department of Justice Press Release)

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Boundry

Cassia

Nez Perce

Bear Lake

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Box Elder

Iron

Grand

San Juan

Summit

Wasatch

Duchesne

Weber

Utah

Salt Lake

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Millard

Sanpete

Cache

Carbon

Emery

Sevier

Washington

Uintah