California State Bank to Be Acquired by First Security Corp.WEST COVINA West Covina, city (1990 pop. 96,086), Los Angeles co., S Calif., in the San Gabriel valley; settled 1905, inc. 1923. Before World War II, West Covina was a small rural community where walnuts, wheat, and livestock were raised. , Calif.--(BUSINESS WIRE)--Feb. 19, 1998--California State Bank (Nasdaq:CSTB CSTB Centre Scientifique et Technique du Batiment (France) CSTB Computer Science and Telecommunications Board (NRC) CSTB Computer Science and Technology Board CSTB Computer Science and Telecommunication Board ) Thursday announced that it has signed a definitive agreement to be acquired by First Security Corp. (Nasdaq:FSCO FSCO Financial Services Commission of Ontario FSCO Federation of Straight Chiropractors and Organizations FSCO Field Security Coordination Officer FSCO Fellow of the Society of Crematorium Organists ). California State Bank had year-end 1997 assets of $849.2 million, and has 17 branches serving small- and middle-market business customers and retail banking clients in the San Gabriel Valley The San Gabriel Valley is one of the principal valleys of southern California. It lies to the east of the city of Los Angeles, to the north of the Puente Hills, to the south of the San Gabriel Mountains, and to the west of the Inland Empire. , as well as Orange, Riverside and San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. counties of Southern California. Under the terms of the agreement, 1.42 (2.13 after giving effect to the 50 percent stock dividend payable on Feb. 24, 1998) shares of First Security common stock will be exchanged for each share of California State Bank. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. , and is expected to close during the third quarter of 1998. ``We are excited to expand First Security's financial-services reach into Southern California and believe this merger will benefit customers and shareholders of First Security and California State Bank,'' said Spencer F. Eccles, First Security chairman and chief executive officer. ``California State Bank has a rich history of serving the business community in the Los Angeles area. The organization's management and owners are well respected, and its employees are committed to delivering the same brand of 110 percent customer service for which First Security is known.'' California State Bank Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Thomas A. Bishop and President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Eugene D. Bishop called the partnership a positive combination for the businesses of Southern California. ``First Security has the same customer-driven focus as our organization, and we are excited about the benefits and expanded product lines that will be provided to our customers,'' said Thomas Bishop. ``Customers will continue to see the same friendly employee faces in our branches, and the officers and senior management of California State Bank will remain in place.'' In 1997, First Security enjoyed the most successful year in its 70-year history. As of Dec. 31, 1997, First Security's assets were $17.3 billion, making it the largest financial-services organization with headquarters in the intermountain West. The corporation operates 294 bank branches and more than 60 business-banking offices in Utah, Nevada, Oregon, Idaho, New Mexico and Wyoming. The corporation also operates 142 mortgage and construction lending offices in 26 states, through subsidiaries CrossLand Mortgage, Western Sunrise Mortgage and First Security Bank. Incorporated in 1928, First Security is the oldest multistate bank-holding company in the United States. CONTACT: California State Bank, West Covina Thomas A. Bishop/Eugene D. Bishop, 626/915-4424 |
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