U.S. Bancorp said it has agreed to buy Zappco Inc., a bank holding company headquartered in St. Cloud, Minn., with three banks and six banking locations.
Terms of the deal were not disclosed.
Zappco owns Zapp Bank St. Cloud, with $254 million of assets, First National Bank Little Falls, which has assets of $56.7 million, and Melrose State Bank, with $49 million of assets.
The acquisition would give U.S. Bancorp the leading market share in Stearns County, with more than $290 million of deposits.
The acquisition is awaiting regulatory approval and is expected to close at yearend.
Edward Zapp, chairman, president and chief executive officer of Zappco, announced that he would retire from managing daily operations when the deal closes. John Leisen, who is chairman, president, and chief executive officer of Zapp Bank as well as chairman of First National Bank Little Falls and Melrose State Bank, would retain his current responsibilities.
U.S. Bancorp said the integration of the two companies will not take place until the first quarter of 1999.
U.S. Bancorp said it did not expect any layoffs associated with the merger.
On Aug. 1, First Bank System bought U.S. Bancorp and adopted its holding company name. The Zappco banks would adopt the U.S. Bank name in 1999.
With $72 billion of assets, U.S. Bancorp is the 14th-largest bank holding company in the nation, operating more than 1,000 banking offices in 17 states.