Bank One Corp. agreed on Wednesday to buy a healthy community bank in Salt Lake City, thus increasing its share of the Utah market by nearly 15%.
The Ohio-based bank company, the nation's eighth largest, said it expected to complete the purchase of Capital Bancorp by the first quarter of 1994. The Utah bank, which has $117 million of assets and seven branches, will raise Banc One's position to fourth place from fifth place in terms of total bank assets in the western state.
Capitol Bancorp is privately owned, and terms were not disclosed.
Banc One entered the Utah market through its 1992 purchase of Valley National Corp. The Phoenix, Arizona-based company owned a bank with $843 million of assets in the Beehive State.
According to Sheshunoff Information Services, Banc One's Utah operations earned $1.6 million in this year's first quarter, the most recent period for which public data is available. The showing equaled a soft 0.76% return on assets.
The Utah unit lost $2.2 million in 1992. By contrast, Capital Bancorp delivered a hefty return on assets of 1.8% in the first half of 1993.
Kent Jones, the company's chief financial officer, said loans to small business and fee revenues from mortgage refinancing were key factors in its strong performance.
The one-bank holding company, founded in 1977, boasted a net interest margin of 6.28% in 1993's first half, Mr. Jones said.
The acquisition will vault Banc One to fourth place from fifth place in Utah in terms of total bank assets. The dominant players in Utah are First Securities Corp., with $7.9 billion of assets; Zions Bancorp., with $3.9 billion of assets, and Key Bankshares of Utah, a $1.15 billion-asset subsidiary of Keycorp, Albany, N.Y.
The largest pending buyout for Banc One remains Firstier Financial Inc., on Omaha-based bank company with $3 billion of assets. It also has smaller deals pending in Oklahoma, Illinois, and Texas.AT A GLANCECapital BancorpHeadquarters Salt Lake CityAssets $117 millionDeposits $107 millionLoans $57 millionYTD 1993 ROA 1.80%Branches 7Branches 90