DENVER—Bank giant Wells Fargo & Co. has agreed to acquire the banking operations of Farmers State Bank of Fort Morgan, giving Wells Fargo its first store in Morgan County.
Financial terms were not disclosed.
The privately held Farmers State Bank of Fort Morgan has $145 million in assets, $116 million in deposits, $66 million of loans and 35 employees.
Farmers State Bank President Jerry Jones said the deal will allow the bank to expand its services and better manage expenses.
Wells Fargo executives said they are committed to growing in Colorado.
Banking regulators and Farmers State Bank shareholders still must approve the deal, which is expected to close this year.
San Francisco-based Wells Fargo has $595 billion in assets. In Colorado, it has offices in nearly 70 communities.
Farmers State Bank’s history stretches back to 1915, when it was known as Fort Morgan State Bank. Its name changed after brothers J.H. Bloedorn Sr., H.B. Bloedorn and C.F.W. Bloedorn along with Alonzo Petteys and F.E. White bought a controlling interest in 1919.
Members of the Bloedorn family remain principal owners today. Employees are a one-third owner through a stock ownership plan.
Employees learned of the sale Wednesday. Jones said all employees are expected to remain with the bank.
Jones acknowledged the difficulties of remaining an independent bank.
“It is challenging on a number of fronts, with the costs of regulatory compliance, the challenges of managing technology, particularly in a rural community like ours, the costs for health insurance benefits have been a real challenge,” Jones said. “One of the great things about this is, we believe it will offer a good deal more opportunity for our employees.”
Wells Fargo has seen its profits fall as it deals with customers struggling to repay home loans and keep up with credit card payments or small business loans.
However, it has fared better than other big banks. Both Moody’s Investors Service and Standard & Poor’s Ratings Services have given Wells Fargo their highest ratings.
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