I guess this is the end for FFBA as an independent bank.
Monday March 9, 1998 9:34 am Eastern Time
Company Press Release
SOURCE: First Colorado Bancorp, Inc.
First Colorado Bancorp, Inc. Approves Merger
Agreement
LAKEWOOD, Colo., March 9 /PRNewswire/ -- First Colorado Bancorp, Inc. (Nasdaq: FFBA -
news; ''First Colorado'') announced that its Board of Directors has approved the definitive
agreement negotiated with Commercial Federal Corporation, Omaha, Nebraska (NYSE: CFB -
news; ''Commercial Federal'') to acquire First Colorado.
Under the terms of the agreement, Commercial Federal will acquire through a tax-free reorganization
all of the outstanding shares of First Colorado's common stock. For each outstanding share of First
Colorado common stock, First Colorado shareholders are to receive Commercial Federal's
common stock valued at $30 per share. Such value is based on an exchange ratio that will float
between Commercial Federal's average stock prices (as defined in the agreement) of $31 and $38
per share. The exchange ratio will remain fixed at .9677 for Commercial Federal average stock
prices below $31 and will remain fixed at .7895 for Commercial Federal average stock prices
above $38. Based on Commercial Federal's closing stock price on March 5, 1998, the transaction
has an aggregate value of approximately $525 million, or $30 per share.
The merger is conditioned upon being accounted for as a pooling-of- interests. The transaction is
expected to close during the third quarter of 1998, subject to approval by the shareholders of First
Colorado and Commercial Federal and the appropriate regulatory authorities, as well as various
other conditions of closing.
Malcolm Collier, Jr., Chairman of First Colorado stated, ''We feel this merger is a unique
opportunity for First Colorado stockholders and customers. We chose to associate with
Commercial Federal because of their dedication to the communities they serve, their customers, and
their employees.''
First Colorado is the parent company for First Federal Bank of Colorado (the ''Bank''), a federally
chartered stock savings bank headquartered in Lakewood, Colorado with assets of $1.6 billion at
December 31, 1997. The Bank's deposits are insured by the Federal Deposit Insurance
Corporation (''FDIC''). The Bank is a community-oriented, retail savings institution offering
traditional mortgage and various consumer loan products.
Commercial Federal is the parent company of Commercial Federal Bank, which currently operates
branches in Nebraska, Colorado, Oklahoma, Kansas and Iowa. In addition to retail banking,
Commercial Federal operations include mortgage banking, consumer financing, insurance and stock
brokerage. As of December 31, 1997, Commercial Federal had assets of approximately $8.5 billion
and deposit of approximately $5.2 billion.
SOURCE: First Colorado Bancorp, Inc.
Copyright c 1998 PRNewswire. |
