Banking Industry Arizona

Anthony M. Frank likes to leave his stamp on things. As postmaster general, he became known as the man who gave America a choice: He launched a national phone-in campaign to decide which image of Elvis Presley--large or lean--should land on a postage stamp. Now Frank is ready to leave another imprint--back in the lending business. Frank made a stunning return Tuesday to the banking industry by announcing the formation of a large new institution, Independent Bancorp of Arizona.

Banc One Buys 58 Great American Branches: Banc One Corp. purchased the Arizona branches of San Diego-based Great American Bank, which was seized by federal regulators in 1991. Banc One, which is based in Columbus, Ohio, said it will assume insured deposits totaling about $1.4 billion in the transaction. The Great American branches will reopen Monday as Banc One offices. Banc One entered the Arizona market last year with the purchase of Valley National bank, which has $11.

Promoters of this desert city like to say that it's located in the Valley of the Sun, reflecting the area's weather, life style and spirit of limitless opportunity. But the mood here is anything but sunny these days as Phoenix suffers through a real estate and banking collapse that has left its mark all over town. Once the embodiment of Sun Belt growth and prosperity, the Phoenix area went on a wild spree of development and speculation in the mid-1980s.

Citicorp to Sell Arizona Unit: Citicorp, the nation's largest banking company, plans to sell most of the assets of Citibank Arizona to Norwest Corp. for $58 million, the banks announced. Citicorp said that, in evaluating its consumer activities, it decided that Arizona, which it entered six years ago, was no longer a part of its focus. The Arizona unit has 59 locations, $2 billion in deposits and $2.3 billion in assets. Minneapolis-based Norwest already has 32 branches in Arizona.

Legislators in Arizona on Wednesday joined the effort to impede BankAmerica Corp.'s union with Security Pacific when a measure was introduced into the state's Senate that would restrict the percentage of deposits a newly merged bank can hold in the state. The bill, moved along by one legislative committee on a 5-4 vote, closely resembles a measure making its way through the Legislature in the state of Washington, where B of A's potential antitrust problems are much more severe.

Key ARM Rate Drops: The 11th District cost of funds index, the measurement most widely used in setting adjustable-rate mortgages in California, fell again in February to 5.800% from 6.002% in January. Homeowners with ARMs tied to the index typically pay an interest rate set from 2 to 2.5 percentage points higher than the index. The index, compiled by the Federal Home Loan Bank of San Francisco, measures the costs of money for thrifts in California, Nevada and Arizona.

The Justice Department said Thursday that the fifth-largest bank in Arizona will be created when BankAmerica Corp. sells 49 branches in the state to gain approval for its merger with Security Pacific. The branches have deposits of $2.4 billion and loans of $225 million. They will be divested by BankAmerica to assure that competition remains strong in Arizona, the department said in a letter to the Federal Reserve Board, which must approve the merger.

First Interstate Bancorp revealed Thursday that the Securities and Exchange Commission has expanded its investigation of the company to include the firm's troubled Arizona operations. In an amended filing with the SEC, First Interstate also revealed that it is providing the Arizona operations with another $91 million in capital. And its upcoming stock offering is expected to generate $275 million, not the $325 million that had been expected.

Anthony M. Frank likes to leave his stamp on things. As postmaster general, he became known as the man who gave America a choice: He launched a national phone-in campaign to decide which image of Elvis Presley--large or lean--should land on a postage stamp. Now Frank is ready to leave another imprint--back in the lending business. Frank made a stunning return Tuesday to the banking industry by announcing the formation of a large new institution, Independent Bancorp of Arizona.

Ohio-based Banc One Corp. on Tuesday said it will acquire Arizona's largest bank, Valley National Corp., for $1.2 billion in stock, creating the nation's eighth-largest bank with its first major thrust into the West. The unexpected acquisition means that Banc One, which in recent years has emerged as one of the nation's premier banks, is now a head-to-head competitor with BankAmerica Corp.

The Justice Department said Thursday that the fifth-largest bank in Arizona will be created when BankAmerica Corp. sells 49 branches in the state to gain approval for its merger with Security Pacific. The branches have deposits of $2.4 billion and loans of $225 million. They will be divested by BankAmerica to assure that competition remains strong in Arizona, the department said in a letter to the Federal Reserve Board, which must approve the merger.

Arizona Gov. J. Fife Symington III asked Congress on Thursday to rein in savings and loan regulators he said are out to ruin his reputation and career. Symington, a Republican who was a real estate developer before his election a year ago, is among the subjects of a $140-million lawsuit filed in December by the Resolution Trust Corp. The agency maintains that Symington breached his duty while a director of Southwest Savings & Loan Assn.

Legislators in Arizona on Wednesday joined the effort to impede BankAmerica Corp.'s union with Security Pacific when a measure was introduced into the state's Senate that would restrict the percentage of deposits a newly merged bank can hold in the state. The bill, moved along by one legislative committee on a 5-4 vote, closely resembles a measure making its way through the Legislature in the state of Washington, where B of A's potential antitrust problems are much more severe.