WASHINGTON, D.C. — Two Salt Lake City-based banks--Zions Bancorporation and First Security Corporation--have agreed to sell about $2 billion in deposits in 63 branch offices in Utah and Idaho in order to resolve the Department of Justice's antitrust concerns about the companies' pending merger. The Department said that the deal, as originally proposed, would have been anticompetitive resulting in customers having fewer choices for banking services.

The companies will divest 58 branches with $1.9 billion in deposits in Utah and five branches with $81 million in deposits in Idaho. The companies also will sell the commercial, consumer, and agricultural loans associated with the divested branches. In addition, they will not preclude other financial institutions from leasing or purchasing any bank branches in Utah and Idaho that they may close due to consolidation resulting from this merger.

"These divestitures will preserve competition throughout the banking markets served by these parties, whether urban, suburban or rural," said Joel I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "The divestitures will ensure that customers will continue to have choices for banking services."

The proposed merger of Zions and First Security will create the 20th largest banking institution in the United States. The merged institution will be the leading bank in the State of Utah.

The Antitrust Division's investigation was conducted jointly with the Offices of the Idaho and Utah Attorneys General. The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The Department said that it will advise the Federal Reserve Board that, subject to divestiture of the branch offices and associated loans and deposits, the Antitrust Division will not challenge the merger.

Zions Bancorporation is headquartered in Salt Lake City. It has $18.6 billion in assets and $13 billion in deposits. Its 342 branches are located in Utah, Idaho, Nevada, New Mexico, Arizona, California, Colorado, and Washington.

First Security Corporation is also headquartered in Salt Lake City. It has $23.3 billion in assets and $13.2 billion in deposits in 334 branches in Utah, Idaho, California, Nevada, Oregon, New Mexico, and Wyoming

A list of the branches to be divested is attached. The companies may sell additional branches.

IDAHO
Total Zions Branches: 5
Total First Security Branches: 0
TOTAL: 5

UTAH
Total Zions Branches: 40
Total First Security Branches: 18
TOTAL: 58

TOTAL DIVESTITURE: 63

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