Zions bank targets region

Move over, Northern Colorado bankers.
Zions Bancorporation, the Salt Lake City-based bank-holding company that˜s already expanded across much of the state, is setting its sights next on Northern Colorado.
Gary Judd, president and CEO of Bank Colorado, Zions˜ newly formed Colorado subsidiary, said Northern Colorado is a high priority for the company as it continues its Colorado expansion, which has already encompassed the Western Slope, Southern Colorado, the Denver metro area and many ski towns. Fort Collins, Greeley and Loveland are obvious — but temporary — omissions.
"We believe it˜s a very good market, and we˜ve obviously watched the economic growth and are attracted to what˜s going on," Judd said.
"If the right opportunity was there [for us] to be there next month, then we˜d be there next month. If it˜s six months or a year from now, then that˜s when it is," he added.
Local bankers view the arrival of yet another banking company with some measure of dumbfoundedness.
"We keep thinking we˜re reaching a point where there are enough commercial bank outlets to meet people˜s needs, but we keep adding to the tally," said Dave Armstrong, Fort Collins area president for Key Bank of Colorado.
Darrell McAllister, CEO of 1st Choice Bank, said more banks make it a tougher market.
"We˜re biting on each other˜s heels all the time anyway," he said. "Another one just gets it a little more fierce in the competition."
Area banks have been adding branches faster than many automatic-teller machines dole out cash, while out-of-state bank-holding companies are scrambling to enter the market.
Judd said Bank Colorado would seek out merger and acquisition targets locally, but if no opportunities existed, the bank would branch into the region on its own.
"If we need to, then we will consider a de novo, because it is an area that we need to be in," he said.
Acquisition opportunities, however, are dwindling. Community First Bankshares Inc. of Fargo, N.D., recently signed an agreement to acquire Poudre Valley Bank in Fort Collins and First National Bank in Greeley. That came after the bank˜s decision to purchase Pioneer Bank of Longmont and after its purchase of the former Key Banks in Wyoming.
Locally, a few independents remain, such as 1st Choice Bank, with locations in Fort Collins, Greeley and Windsor, and The Eaton Bank and Farmers Bank, both based in Eaton. Other independents include Home State Bank, with locations in Loveland and Fort Collins; First State Bank of Fort Collins, which is opening its second location in that city; Independent Bank of Kersey, with several branches; and Firstate Bank, based in Northglenn, which is adding locations locally.
Not all of those banks, however, would consider themselves acquisition candidates.
One that does is 1st Choice Bank, which is adding three locations in the region.
"I think we˜ve got to be an ideal merger candidate or partner for somebody," said McAllister said.
"I think if the price is right and we can see some benefits to our customers, to the shareholders, and to the employees, we˜d have to talk to them," he added, speaking of any merger offer that might come along.
Indeed, 1st Choice˜s locations could be considered, well, choice. A new building in Fort Collins, a prime Windsor spot and a bank in a popular Greeley shopping area, with three more planned in the region.
The biggest banking plum left to be acquired, however, has to be FirstBank Holding Company of Colorado, based in Lakewood, which maintains several Northern Colorado branches.
"FirstBank is the last remaining large, significant independent left in Colorado," Armstrong said. "Sooner or later, I presume, they˜ be acquired." Although, he added, that might be 10 years down the road.
Armstrong said Zions will have a definite impact on the market.
"Zions Bancorporation has been a very good organization," he said. "It˜s been around for a long time and has always had a good reputation. If they decide to enter this market, then it˜ have some significance."
But, he added, "I do think that it˜ of course just be another competitor."
Zions recently entered the southern periphery of the Northern Colorado market, with completion of its deal to buy Vectra Bank, which has locations in the Denver area, including Longmont and Boulder, and is building a new facility in Longmont. The company also has acquired — or is acquiring — banks throughout the Denver area, Durango, Cortez, Alamosa, Colorado Springs, Pitkin County and Steamboat Springs.
Vectra will be among the first of Zions˜ Colorado acquisitions to adopt the Bank Colorado name, a process that will take several months.
Founded in 1873, Zions operates in Arizona, California, Colorado, Idaho, Nevada, New Mexico and Utah. U.S. Banker magazine rated it the nation˜s top-performing bank for 1996 among the 100 largest publicly traded commercial bank firms.
Pending completion of some acquisitions, Bank Colorado will have assets of $1.6 billion and 40 branches, making it the state˜s sixth-largest bank. Zions has assets of $9.5 billion.