Wells Fargo, First Security Announce Merger Completion
SAN FRANCISCO — October 25, 2000
The merger of Wells Fargo & Company (NYSE: WFC) and First Security Corporation has been completed, creating the largest banking franchise in the West; the largest by banking market share in Utah, Nevada, New Mexico and Idaho; and one of the largest in North America.
"This merger is not an end in itself - it's the next stage of our vision to satisfy all of our customers' financial needs and help them succeed financially," said Wells Fargo President and CEO Dick Kovacevich. "Although this merger makes us No. 1 among all banks in deposits in four of the fastest growing Western states, we really only have about 3 percent of our customers' assets when it comes to all of the financial services products they need. Our goal is to offer them such outstanding service, convenience and financial advice that they will want to bring us all of their business."
Kovacevich said First Security and Wells Fargo "share a commitment to people as the company's most competitive advantage, to outstanding customer service, local decision-making and community involvement."
"Together, we want to be known as the premier financial services provider in all of our communities across our banking franchise," Kovacevich said.
"We look forward to combining our services and products so that we can satisfy all the financial needs of our customers," said Spencer F. Eccles, chairman of Wells Fargo's Intermountain Banking Region. "Our customers - individuals, small businesses, middle-market businesses, farmers and ranchers and large corporate customers - will receive the best in financial services, and this merger helps all of us in the new Wells Fargo get even closer to becoming one of America's great companies."
Kovacevich and Eccles said combining of Wells Fargo and First Security systems and products is scheduled to begin late this year and be completed by mid-2001.
Wells Fargo now has assets of more than $263 billion, approximately 114,000 team members, and more than 5,600 financial services stores across North America, including more than 3,000 banking stores from Ohio to Alaska. It ranks seventh in assets and third in the market value of its stock among U.S. bank holding companies.
Under terms of the agreement, First Security stockholders receive 0.355 of a share of Wells Fargo common stock in exchange for each share of First Security common stock.
The merger was announced April 10, approved by First Security shareholders July 31 and unanimously approved by the Board of Governors of the Federal Reserve System on Oct. 10. The merger occurred after a statutory waiting period that follows Federal Reserve approval.
In its order approving the transaction, the Board of Governors of the Federal Reserve System noted that Wells Fargo is an active residential lender in regions affected by the merger - including lending in low- to moderate-income areas - and a leader in small business lending.
The new company is:
- 1st in financial services stores in the Western Hemisphere
- 1st in retail mortgage originations and mortgage servicing
- 1st in lending to small businesses
- 1st in Internet banking
- 1st in agricultural lending among U.S. banks
- 1st in student loans
- 1st in commercial real estate lending
- 1st in auto finance
- 1st in supermarket locations
Wells Fargo is a $263 billion diversified financial services company providing banking, insurance, investments, mortgage and consumer finance from more than 5,600 financial services stores and the Internet (wellsfargo.com ) across North America and elsewhere internationally.
This news release contains forward-looking statements, including the anticipated timing for combining the systems and products of Wells Fargo and First Security. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believes," "expects," "anticipates," "intends," "estimates," or similar expressions, or conditional verbs such as "will," "would," "should," "could" or "may."
Forward-looking statements give Wells Fargo's expectations or predictions of future conditions, events or results. They are not guarantees of future conditions, events or results. There are a number of factors-many of which are beyond Wells Fargo's control-that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Wells Fargo's reports filed with the SEC, including Wells Fargo's Form 10-Q for the quarter ended June 30, 2000, and Form 10-K for the year ended December 31, 1999, describe some of these factors. Factors relating to the combination of Wells Fargo's and First Security's systems and products include, among other things, the possibility that costs or difficulties related to the integration of Wells Fargo and First Security are greater than expected or that resources necessary for such combination are not available or are deployed elsewhere. Wells Fargo does not undertake to update forward-looking statements.