Continuing its push north in Nevada, First Security Corp. on Wednesday said it would acquire Comstock Bancorp for $65 million in stock.
Reno-based Comstock, with $225 million of assets, operates seven offices in Reno, Sparks, and Carson City. Comstock chairman and chief executive officer Robert Barone said that despite a three-year effort to update its technology, the bank could not keep up with larger competitors.
"We have found that, as a small community bank competing with global financial services organizations, we simply do not have the resources to keep pace," he said.
The tax-free exchange of stock, set to close in the second quarter, will retain its value as long as First Security's average stock price stays between $18.70 and $24.05 during the 10 trading days after the closing date.
Just two weeks ago, $20 billion-asset First Security announced another northern Nevada acquisition, saying it would acquire XEON Financial Corp., a $122 million-asset bank based in Stateline.