Federal Reserve Approves Merger of Mormon Banks (Union of Utah banks likely by year's end)
Deseret News 14Dec99 B4
By Max Knudson: Deseret News business editor

SALT LAKE CITY, UTAH -- The Federal Reserve Bank Board approved the merger of Zions Bancorp and First Security Corp. Monday, a move that will probably allow the merger to be completed by year end. "We hope to close this transaction at year end, "said Zions' chief financial officer, Dale Gibbons.

The only condition remaining, placed by the U.S. Justice department, is that the banks must find someone to buy 63 branches holding $2.1 billion in deposits. The requirement is meant to make sure that every market continues to have competing banks. The banks are approaching some 30 prospective buyers for four separate packages of branches and hope to have responses by the end of next week. The Fed requires that a sale contract for the branches be signed before the merger is completed.

Both banks have Mormon heritage. Zions was founded by LDS Church president Brigham Young in the 1860s in an effort to increase the currency supply in Utah. The Church sold Zions to the Simmons family in the 1960s. First Security was founded by LDS pioneer David Eccles in the 1890s. The Eccles family still controls and manages the bank.