FARGO, N.D. - Community First Bankshares and First Community Bankshares, a holding company of five Colorado banks, have reached an agreement in principle for the merger of the Colorado company into Community First.

The transaction, expected to be a stock deal, is contingent a definitive agreement, regulatory approvals, and approval by the shareholders of First Community Bankshares. The transaction is expected to be completed in the first half of 1995.

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