MINNEAPOLIS, Minn. & AVON, Colo., Sep 01, 2006 (BUSINESS WIRE) -- U.S. Bancorp (NYSE:USB) today announced that it has
completed the purchase of Vail Banks, Inc., the parent company of
WestStar Bank. This acquisition gives U.S. Bancorp's lead bank, U.S.
Bank National Association, 23 additional branch locations for a total
of 135 offices in Colorado. Vail Banks, Inc., which was headquartered
in Avon, Colo., had consolidated assets of $724 million and $561
million in deposits as of June 30, 2006.
This transaction expands U.S. Bank's footprint and distribution in
rapidly growing and demographically attractive community markets in
western Colorado and adds to the company's existing base in Denver.
U.S. Bank has a history of very successful fill-in market acquisitions
of this type and management views the integration related to this
acquisition as low risk. U.S. Bank and WestStar Bank have similar
community banking models that will help ensure a smooth transition.
John R. Elmore, executive vice president of community banking for
U.S. Bank, said, "The addition of 23 WestStar Bank branches, which
will be renamed as U.S. Bank branches in December 2006, strengthens
our presence and provides an entry into important fast-growing
communities in western Colorado. Customers will continue to use their
same checks and credit cards, unless otherwise notified, and bank at
the same branch locations. Customers will be served by the same
familiar banking professionals who helped them with their financial
needs in the past."
To ensure a seamless transition, E.B. Chester, the former chairman
of Vail Banks, Inc., will serve as the head of U.S. Bank's Western
Slope regional advisory board. The new combined regional advisory
board will include all former WestStar Bank markets, excluding Denver,
and current U.S. Bank markets in the Western Slope area of Colorado.
Terms of the agreement included a total cash purchase price of
approximately $98.6 million, or $17.00 for each share of Vail Banks,
Inc. common stock, which represents a premium to core deposits of 13.7
"We will be communicating directly with our new customers as we
introduce U.S. Bank products and expanded services to WestStar Bank
customers," noted Elmore. "In addition to introducing our strong focus
on customer service, U.S. Bank customers throughout our new western
Colorado markets will begin to benefit from a host of new consumer,
commercial and trust financial services and products."
Historically, WestStar Bank was a small and middle market
commercial bank primarily focused on commercial real estate,
construction and small business lending. The 23 WestStar Bank branches
consist of 20 locations in the Western Slope region of Colorado and
three branches in the Denver area.
This acquisition includes 21 WestStar Bank ATM locations that will
increase U.S. Bank's ATM network in Colorado to more than 250
convenient locations. The 23 WestStar Bank locations, which will be
converted to U.S. Bank offices are located in following 19 Colorado
communities: Aspen, Avon, Breckenridge, Cedaredge, Delta, Denver
(three locations), Dillon, Edwards, Estes Park, Frisco, Fruita,
Glenwood Springs, Granby, Grand Junction, Gypsum, Montrose, Norwood,
Telluride and Vail (two locations). U.S. Bank now has 135 branch
locations and total deposits of approximately $7 billion in Colorado
with the completion of this acquisition.
U.S. Bancorp, with assets of $213 billion, is the 6th largest
financial holding company in the United States. The company operates
2,434 banking offices and 4,966 ATMs, and provides a comprehensive
line of banking, brokerage, insurance, investment, mortgage, trust and
payment services products to consumers, businesses and institutions.
U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on
the web at www.usbank.com.
This news release contains forward-looking statements about U.S.
Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements. These statements often include the words
"may," "could," "would," "should," "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "targets,"
"potentially," "probably," "projects," "outlook" or similar
expressions. These forward-looking statements cover, among other
things, anticipated future revenue and expenses and the future plans
and prospects of U.S. Bancorp. Forward-looking statements involve
inherent risks and uncertainties, and many factors could cause actual
results to differ materially from those anticipated, including those
described in U.S. Bancorp's Annual Report on Form 10-K for the year
ended December 31, 2005, which you should read carefully, as well as
the company's other filings with the Securities and Exchange
Commission. Forward-looking statements speak only as of the date they
are made, and U.S. Bancorp undertakes no obligation to update them in
light of new information or future events.
SOURCE: U.S. Bancorp
Steve Dale (Media), 612-303-0784
Judith T. Murphy (Analysts), 612-303-0783