SALT LAKE CITY - Joseph G. Maloof has resigned from First Security Corp.'s board of directors, citing a conflict with his family's "current business plans and activities."
Mr. Maloof is a member of a prominent New Mexico family that once owned the Houston Rockets and made its money distributing beer and wine throughout the Southwest. He has been a member of the First Security board since 1996, since First Security's 1993 acquisition of First National Bank in Albuquerque, in which the Maloof family had a controlling stake.
First Security Bank of New Mexico is the state's second largest bank by deposits behind Wells Fargo Bank New Mexico.
Last year Mr. Maloof, who is president and chief executive officer of the family concern, and his brother Gavin bought the holding company that owns a controlling interest in the NBA team Sacramento Kings, and other local teams.
In a letter to Spencer Eccles, chief executive and chairman of Salt Lake City-based First Security Corp., Mr. Maloof said the family business "and how they may impact our ownership of First Security Corp. stock suggest that it is not appropriate that I continue as a director."
At the end of the year he owned 1.6 billion shares of First Security's common stock. First Security, which is in the process of merging with Wells Fargo & Co, and Mr. Maloof did not return calls seeking comment.
