FIRST BANK SYSTEM TO ACQUIRE BANK WESTERN
FIRST BANK SYSTEM TO ACQUIRE BANK WESTERN MINNEAPOLIS, April 30 /PRNewswire/ -- First Bank System, Inc.
(NYSE: FBS) and Western Capital Investment Corporation (NASDAQ: WECA) today announced that they signed a purchase agreement whereby First Bank System would acquire Denver-based Western Capital. Western Capital Investment owns Bank Western, a federal savings bank, which has 35 branches in Colorado. At March 31, 1992, Western Capital Investment had assets of $2.4 billion, $2.1 billion in deposits and tangible equity of $124 million, or $13.27 per share.
Terms of the agreement call for the exchange of approximately .57 FBS shares for each share of Western Capital. The exchange rate results in a price per share of $15.50. "The people at Bank Western have accomplished a great deal over the past few years to turn their operation around, get back to the business they do best and become a profitable organization. We fully appreciate that kind of achievement and we look forward to having Bank Western join our team," said John F. Grundhofer, FBS chairman, president and chief executive officer. First Bank System is the bank holding company that owns Central Banks which has 35 Colorado locations. "This acquisition is consistent with our strategies of adding to our core retail business and expanding our leadership position in markets where we currently have a presence," Grundhofer continued. "With the addition of Bank Western, we are very comfortable with our position in the Colorado market." The combined assets of Bank Western and the $2.5 billion Central Banks would create the second largest Colorado financial institution. Grundhofer concluded by noting that the recovering Colorado economy coupled with Bank Western's emphasis on consumer banking and mortgage lending would have a positive effect on the success of the acquisition. "Bank Western has a proud heritage of service to Colorado," said Western Capital chairman and chief executive officer, Robert J. Malone, "and we see that same commitment to service with First Bank System. We believe the two organizations fit together well and together can provide better service and broader choices to the people of Colorado." Malone ended by saying: "We feel confident this union is the right decision for Bank Western and for our shareholders, employees and customers." The agreement is subject to approvals from Western Capital's shareholders and regulatory agencies. First Bank and Bank Western said they expect the acquisition to close near year end. First Bank System is a regional bank holding company headquartered in Minneapolis with assets of $18 billion and equity of $1.6 billion at March 31, 1992. The company provides complete financial services to individuals and institutions through 25 banks and trust companies with more than 152 offices located in Minnesota, Colorado, Montana, North Dakota, South Dakota, Washington and Wisconsin. Bank Western has 23 branches in Denver, two branches in the communities of Colorado Springs and Pueblo and individual branches in Boulder, Canon City, Fort Collins, Grand Junction, Greeley, La Junta, Longmont and Loveland. -0- 4/30/92 /CONTACT: Wendy Raway (media relations), 612-370-5154, or Thomas Rice (investor relations), 612-370-3596, both of First Bank System, or Collen George (media relations) of Bank Western, 303-623-5100, or Scott Crosby, chief financial officer of Western Capital, 303-623-5577/ (FBS) (WECA) CO: First Bank System, Inc.; Western Capital Investment Corporation ST: Minnesota, Colorado IN: FIN SU: TNM
PS -- NY122 -- 5243 04/30/92 18:54 EDT
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|Date:||Apr 30, 1992|
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