News

U.S. Bancorp expected to buy Colorado's Vail Banks

May 31, 2006

MINNEAPOLIS - U.S. Bancorp announced June 1 that it expects to acquire Vail Banks Inc., the parent of WestStar Bank, for $98.6 million in the fourth quarter of 2006. The acquisition will give U.S. Bancorp's lead bank, U.S. Bank National Association, 24 additional branches and 21 ATMs, increasing U.S. Bank's ATM network in Colorado to more than 250.

"This transaction will expand U.S. Bank's footprint and distribution in rapidly growing and demographically attractive community markets in Western Colorado and add to our existing base in Denver," Richard K. Davis, U.S. Bancorp's president and chief operating officer, said.

After the merger, U.S. Bank will have more than 135 branches in Colorado. This transaction is expected to be added to U.S. Bancorp earnings in 2007.

Wachtell, Lipton, Rosen & Katz, and Allen & Company LLC and Hogan & Hartson LLP advised U.S. Bancorp and Vail Banks during the negotiations.