First Security Corp. plans to merge its newly acquired Van Kasper & Co. unit with its own section 20 in June, executive vice president Scott C. Ulbrich said.
The combined unit would be called First Security Van Kasper.
The two units will operate as separate subsidiaries in the meantime, Mr. Ulbrich said.
With the closing last week of its purchase of the San Francisco-based securities firm, Salt Lake City-based First Security added corporate debt and equity underwriting capabilities to its municipal revenue bond, commercial paper, mortgage- and asset-backed securities underwriting powers.
"We will have pretty much everything we need in investment products, from manufacturing to distribution, in a single business line," said Mr. Ulbrich, the $22 billion-asset bank's former chief financial officer. Mr. Ulbrich was tapped in November to take charge of capital markets, treasury, and investment management.
David Wilson, the head of the capital markets section 20, will keep many of his responsibilities and report to Mr. Ulbrich. Van Kasper, who lent his name to the acquired firm when he founded it in 1978, will oversee equity and corporate finance; he also will report to Mr. Ulbrich.
The purchase of Van Kasper adds an important weapon to First Security's offerings-the ability to do private equity placements for commercial banking clients who would have previously taken their business elsewhere.
"We can very effectively now do private placements for clients that only need $5 million to $40 million," Mr. Ulbrich said. He said this is a size range full of opportunity since there is not enough profit in these deals for most large banks to bother with.
"Our section 20 will be lean enough to make these financings worthwhile, and this is the market segment of commercial client we know best," he said. "It's a powerful tool for our commercial lenders to raise capital for their customers."
Mr. Ulbrich was also exuberant about the potential for cross-selling as a result of the combination. On Jan. 1, First Security's California unit was authorized to offer trust services and financial planning nationwide.
As a result, Van Kasper employees will be able to provide trust services to high-net-worth clients.
"The brokers at Van Kasper are very excited about the private banking possibilities that we bring to bear," he said.
Also still being planned is how and where the Van Kasper name will be introduced throughout the First Security franchise.
The brand will not appear in retail banking branches for fear of confusing customers, Mr. Ulbrich said, but it may show up in corporate finance, fixed-income, and brokerage offices.
The bank is planning a marketing campaign to publicize its new capabilities, but "it is far too early to give any details about it," Mr. Ulbrich said.
