Banc One Corp. has obtained Federal Reserve approval to acquire First Security Corporation of Kentucky, parent of the largest bank in Lexington and three other Kentucky banks.
The acquisition, announced in November at an indicated value of $204 million, got a unanimous vote on Monday from the Fed's Board of Governors.
First Security said it expects the deal to close on Aug. 22. Ohio-based Banc One would become the fourth-largest Kentucky bank, increasing deposits to $1.6 billion from $290 million, based on data for the end of 1991.
Market Impact Assessed
The Fed found no reason to block the merger on competitive grounds, though it rated the Lexington market "moderately concentrated."
Bank One Lexington combined with First Security National Bank and Trust Co. of Lexington would hold 36.7% of that metropolitan market, up from 8% now. But the Fed noted that the market has 18 bank and nine thrift competitors.
Most of the Fed's 16-page approval order related to the banks' consumer and small-business lending and compliance with the Community Reinvestment Act.
The Fed said both companies have satisfactory records and Banc One "has initiated and committed to initiate steps designed to strengthen home mortgage lending in Lexington."