FISCORP Inc., doing business as First Institutional Service Corp., has received final approval from the Federal Reserve Bank of San Francisco to buy the $7 million Pioneer Bank.
Under the new ownership, the bank's name will be changed to First Professional Bank.Richard P. Spencer, chief executive officer of FISCORP, said the company currently has a private offering in circulation to raise additional capital for the bank when the acquisition is completed - expected to come during the statutory 30-day waiting period. Closing on the acquisition is expected shortly thereafter.
Spencer said FISCORP intends to continue the bank's operations in support of local businesses. It will also provide commercial bank services to the Utah professional community with special emphasis on the health care sector.
The Utah Department of Financial Institutions has already given its approval for the acquisition. Federal law requires a 30-day waiting period before the deal can be closed.
Spencer said FISCORP has an agreement with Central Bank, Denver, and Community Financial Services Inc., Salt Lake City, to buy all of Salt Lake City-based Pioneer Bank's stock.
FISCORP was formed last year by Spencer and Salt Lake attorney Yan M. Ross along with Robert A. Belanger, a retired Bank of America executive. Earlier this year, the company acquired Mountain States Professional Association Inc., a three-year-old Salt Lake company providing financial services to health care professionals.
That firm is now called First Professional Services Corp. and will become a subsidiary of First Professional Bank.