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American Fork and Lewiston — People’s Utah Bancorp and Lewiston Bancorp have merged their holding companies, completing the first bank merger in Utah since before the 2008 recession. The merger closed October 18, following approval by regulatory agencies, shareholders of Lewiston and both boards of directors.
“The People’s Utah Bancorp and Lewiston Bancorp merger is the first unassisted merger in Utah since Far West Bank was acquired by American West Bancorp in 2007,” said Tom Bay, supervisor of banks, Utah Department of Financial Institutions. “Smaller banks are seeing their burden increase. They feel like they survived the downturn just to be hit in the gut with what they feel is an increasing regulatory environment. Mergers can be a way of using economies of scale to help with the increased fixed costs of doing business.”
“The purpose of this merger is to ensure that both banks are able to continue the highly personal service that each has provided for a hundred years or more in an economic and regulatory environment that makes it hard for community banks to compete,” said Richard Beard, president and CEO of People’s Utah Bancorp.
In June, the companies jointly announced an agreement to merge their holding companies and operate their bank subsidiaries, Bank of American Fork and Lewiston State Bank, under People’s Utah Bancorp. The merger was dependent on various regulatory approvals and a shareholder vote in favor of the transaction. All of those were obtained by October 15.
As of September 30, People’s Utah Bancorp had approximately 320 employees, $1 billion in assets, loans of $643 million, deposits of $900 million and equity of $120 million. Lewiston had approximately 90 employees, $257 million in assets, loans of $180 million, deposits of $223 million and equity of $28 million. The combined holding company now operates under the name People’s Utah Bancorp and has approximately $1.2 billion in assets. Bank of American Fork, with 14 locations in Utah, and Lewiston State Bank, with four locations in Utah and Idaho, will continue to operate under their respective names.