In its first foray into Colorado, KeyCorp said Thursday that it had signed a definitive agreement to buy Home Federal Savings Bank of Fort Collins for about $17 million in stock.
KeyCorp spokesman Donald Kauth said the Albany, N.Y.- based company had no intention of becoming a major player in Colorado.
The deal is an attempt to bolster its Wyoming presence. Fort Collins and Cheyenne, 50 miles apart, are considered the same market area, he said.
Leader in Cheyenne
KeyCorp has three branches in Cheyenne, giving it the biggest market share of deposits.
Home Federal has $245 million in assets and four branches. Although the thrift posted losses in 1989 and 1990, it earned $1.3 million in 1991 and $2.6 million for the first nine months of this year.
KeyCorp., with $25 billion in assets, is paying $32 a share, or about 1.2 times the thrift's book value.
In late trading on Thursday, Home Federal's stock was up $3.50, to $28.50, on the news. KeyCorp's stock was down 50 cents, to $34.50.
Mr. Kauth said the the acquisition would not have a material effect on KeyCorp's share earnings.