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U.S. BANCORP TO ACQUIRE DIVESTED BANK OF AMERICA, SECURITY PACIFIC BRANCHES IN NORTHERN CALIFORNIA, NEVADA

U.S. BANCORP TO ACQUIRE DIVESTED BANK OF AMERICA, SECURITY PACIFIC
 BRANCHES IN NORTHERN CALIFORNIA, NEVADA
 PORTLAND, Ore., Feb. 26 /PRNewswire/ -- U.S. Bancorp (NASDAQ: USBC), BankAmerica Corp. (NYSE: BAC) and Security Pacific Corp. (NYSE: SPC) today announced the signing of definitive agreements under which U.S. Bancorp will acquire northern California and Nevada operations that BankAmerica and Security Pacific are divesting in connection with their planned merger, U.S. Bancorp said. The acquisition represents an increase in total deposits of approximately $1.6 billion for U.S. Bancorp in the two states.
 Terms of the agreement provide for a cash purchase of approximately $70 million, comprised of a 3 percent deposit premium of approximately $47 million and approximately $23 million for the tangible common equity of Bank of America Nevada at closing. The price will be adjusted to reflect other assets and liabilities included in the transaction. The transaction is subject to satisfaction of certain conditions including approval of applicable regulatory authorities and is contingent on completion of the merger between BankAmerica and Security Pacific. Completion of the transaction is expected mid-1992.
 The acquisitions in northern California (defined as U.S. Bank of California's targeted 29 northern California counties) include two Bank of America branches and 18 Security Pacific branches. U.S. Bank of California is a subsidiary of U.S. Bancorp. These 20 branches, which will be purchased by U.S. Bank of California, have total deposits of approximately $750 million. The addition of these branches would give U.S. Bank of California 62 offices in northern California with a 7.4 percent deposit market share.
 "This acquisition increases our market presence in the northern California market from fifth largest to third largest," stated Edmund P. Jensen, president and chief operating officer for U.S. Bancorp. "We are pleased about this opportunity to further our strategy to be a major supplier of financial services in northern California."
 The acquisition package includes the acquisition of Bank of America Nevada, with 21 branches, plus eight Security Pacific branches in Nevada. These offices will provide the nucleus for U.S. Bank of Nevada, a state chartered commercial bank that will have 29 branches, approximately $830 million in deposits, and a 9.5 percent deposit market share, making it the third-largest commercial bank in Nevada.
 "The rapidly expanding Nevada economy offers some new opportunities and is a logical extension of our current market area," noted Jensen. "We have prepared for this opportunity through the establishment of U.S. Bank of California this past year. Their experienced management team will be essential in the integration process."
 U.S. Bancorp is a superregional financial services company headquartered in Portland. Subsidiaries include U.S. Bank of Oregon, U.S. Bank of Washington and U.S. Bank of California. Other financial services businesses include U.S. Bancorp Capital Markets, U.S. Bancorp Real Estate Services, U.S. Bancorp Investor Services, U.S. Bancorp Leasing, U.S. Bancorp Financial Inc. and U.S. Bancorp Emerging Businesses.
 BANK OF AMERICA/SECURITY PACIFIC PURCHASE
 Price:
 3 Percent Deposit Premium $47 million
 + Tangible common book
 of Nevada Bank $23 million
 Purchase price $70 million
 Northern California:
 20 branches (2 Bank of America, 18 Security Pacific)
 $750 million in deposits (approximate)
 7.4 percent market share
 Nevada:
 29 branches (21 Bank of America Nevada - total bank;
 8 Security Pacific)
 $830 million in deposits (approximate)
 9.5 percent market share
 -0- 2/26/92 R
 /CONTACT: Mary Ruble, Public Relations, 503-275-6200, or Kim Strand, Investor Relations, 503-275-5773, both of U.S. Bancorp; or Russ Yarrow of Bank of America, 415-953-1411; or Deborah Lewis of Security Pacific, 213-345-5504/
 (USBC BAC SPC) CO: U.S. Bancorp; BankAmerica Corp.; Security Pacific Corp. ST: Oregon, California, Nevada IN: FIN SU: TNM


SC -- SE006 -- 3075 02/27/92 08:01 EST
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Publication:PR Newswire
Date:Feb 27, 1992
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