Published:
First State Bancorporation Completes Sale of Colorado Branches
ALBUQUERQUE, N.M. - (BUSINESS WIRE) - First State Bancorporation ("First State" ) (NASDAQ: FSNM) today
announced that it has completed the sale of its Colorado branches to
Great Western Bank, a South Dakota-based subsidiary of National
Australia Bank. The terms of the transaction call for the transfer of
approximately $385 million in loans, $509 million in deposits, $20
million of premises and equipment and other assets, and the payment of a
deposit premium of approximately $30 million. After the write-off of the
core deposit intangible associated with these deposits and transaction
costs, First State expects to record a pretax gain of approximately $23
million.
"This transaction will boost our total risk-based capital ratio at both
the bank and holding company levels to above 11.0%, compared to 9.0% at
the bank and 8.9% at the holding company as of March 31, 2009, bringing
us back to a well-capitalized position under regulatory guidelines at
June 30, 2009," explained Michael R. Stanford, President and Chief
Executive Officer of First State. "This transaction has solidified our
capital position and is a decisive step to protecting our legacy New
Mexico market and our independence. These capital ratios also do not
include the more than $55 million that we have in our allowance for loan
losses that is not part of the capital calculation, which further
insulates our balance sheet from future losses in our loan portfolio,"
continued Stanford.
ABOUT FIRST STATE
First State Bancorporation is a New Mexico based commercial bank holding
company (NASDAQ: FSNM). First State provides services, through its
subsidiary First Community Bank, to customers from a total of 40
branches located in New Mexico and Arizona. On Friday, June 26, 2009,
First State's stock closed at $2.00 per share.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
Certain statements in this news release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act" ).
These statements are based on management's current expectations or
predictions of future results or events. We make these forward-looking
statements in reliance on the safe harbor provisions provided under the
Private Securities Litigation Reform Act of 1995.
First State's news releases and filings with the Securities and Exchange
Commission are available through the Investor Relations section of First
State's website at www.fcbnm.com.
First State Bancorporation
H. Patrick Dee
Chief Operating
Officer
505-241-7102
Christopher C. Spencer
Chief
Financial Officer
505-241-7154
Copyright © 2009, Business Wire, Inc., All rights reserved.
Copyright © 2009, NewsBlaze,
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