Zions First National Bank (“Zions Bank”), a subsidiary of Zions Bancorporation (Nasdaq: ZION), announced today that it will assist the Federal Deposit Insurance Corporation (FDIC) by acting as Payout Agent in the resolution of Barnes Banking Company (“Barnes Bank”), based in Kaysville, Utah, which was closed by the Utah Department of Financial Institutions and the FDIC was appointed as receiver. The FDIC has established a new temporary institution, Deposit Insurance National Bank of Kaysville (DINB), an FDIC-insured bank. The newly chartered DINB is assuming a majority of the FDIC-insured deposits of Barnes Bank.
Under the terms of an agreement with the DINB and FDIC, Zions Bank will provide operational management of the DINB. All 10 former branches of Barnes Bank will open on Saturday, January 16, 2010 at 9 a.m. as branches of the DINB of Kaysville for an interim transition period, after which the new bank will be closed. Direct deposit, checks, ATMs and debit cards will work normally for former customers of Barnes Bank during the transition period.
Zions Bank has also received approval from the Office of the Comptroller of the Currency to operate temporary branches inside the 10 former Barnes Bank locations, allowing Zions Bank to accept funds from former customers of Barnes Bank and assist them in opening deposit accounts with Zions Bank.
“We’re really here to help. Barnes Bank has a legacy of providing quality service to families and businesses in the community since 1891, so we want to help their former clients through this transition,” said Scott Anderson, president and CEO of Zions Bank. “This is an extremely difficult situation for everyone, but we are prepared to answer questions, provide support and comfort, and assist former Barnes Bank clients into new banking relationships.”
“We are honored to be asked to assist the FDIC with their efforts and continue to support our fellow Utahns through challenging times,” added Anderson. “Our goal is to ensure that former Barnes Bank clients have as smooth a transition as possible during such a stressful time.”