Williamsburg Savings Bank's eight Utah offices opened their doors Monday morning as branches of First Security Bank of Utah.
First Security bid $750,000 in cash to acquire Williamsburg's $57.6 million in Utah deposits from the Resolution Trust Corp. The troubled savings bank was put under federal conservatorship several months ago. The figure represents 12,000 customer accounts.The Resolution Trust Corp. retained Williamsburg's loan portfolio. Williamsburg also had operations in the Pacific Northwest that were not included in the First Security acquisition.
The Williamsburg branches will remain open for two weeks and will then be consolidated into First Security branches. Williamsburg had four branches in Salt Lake City and one each in St. George, Kanab, Moab and Cedar City.
"Williamsburg customers can continue to bank as usual," said First Security Bank's chairman and chief executive officer, Scott Nelson.
The former Williamsburg Savings offices in Utah will be open for business during their regular banking hours through Sept. 28, said Nelson, adding that all former Williamsburg accounts remain fully insured up to $100,000 by the Federal Deposit Insurance Corp.
Beginning Oct. 1, he said, all former Williamsburg customers will be able to do their banking at any of First Security's 94 branches through-out the state.
Williamsburg was one of several Utah savings institutions taken over after passage of the Financial Institutions Reform and Recovery Act last year that have been merged into healthy institutions. Sandia Federal Savings and Loan Association, which has offices in Utah but is based in Albuquerque, remains under Resolution Trust Corp. conservatorship.
Williamsburg Savings was launched as Washington Savings & Loan in St. George. It was later acquired, the headquarters moved to Salt Lake City, and converted to a savings bank.
Spencer F. Eccles, chairman and chief executive officer of First Security Corp., said the Williamsburg acquisition extends First Security's coverage of "six strategic markets in Utah.
"We have completed four acquisitions in the last year to strengthen our coverage of growing markets in Utah, Idaho and Wyoming and to enter profitable new markets in Oregon."
He said two additional acquisitions are pending required regulatory approvals.