Wells Fargo to purchase Pohlad family banks

Northwestern Financial Review, Nov 1, 2001

Wells Fargo & Company announced it will purchase much of the banking assets of Minneapolis businessman Carl Pohlad and his family. Wells Fargo will purchase banks in seven states controlled by Marquette Bancshares, Inc., and Texas Financial Bancorp. The deal, which was announced Oct. 5, culminated weeks of rumors about such a deal.

The companies to be purchased have combined assets of $5.6 billion, 117 locations, $4 billion in deposits, 2,300 employees and 300,000 customers. In Minnesota, the banks operate under the names Marquette Capital Bank and Marquette Bank (36 locations statewide). Other states are: South Dakota - Marquette Bank (21 locations); Illinois - Marquette Bank (five locations); Iowa - Marquette Bank-Cedar Rapids (four locations); Wisconsin - Meridian Capital Bank (three locations) and First National Bank & Trust (one location); Texas - First State Bank of Texas and First National Bank of Texas (43 locations); and New Mexico - The Bank of Santa Fe (four locations). Other units to be acquired are Marquette Equipment Finance, Inc., a subsidiary of Marquette Bank N.A., with $97 million in loans and leases, and Marquette Financial Group, Inc., a full service broker-dealer with 150 investment representatives.

Twenty-five of the Marquette offices are located in the Minneapolis/ St. Paul metropolitan area, a market where Wells Fargo currently has more than 100 offices. Regulators may require Wells Fargo to sell some of the Twin Cities assets in order to meet market concentration guidelines.

"It is too soon to say," responded Jon Campbell, Wells Fargo Bank Minnesota president when asked about divestiture of Twin Cities assets. "Those decisions will be made in the fourth quarter after consulting with regulators. Our goal is to retain all of the assets."

Terms of the transaction were not disclosed. Pending regulatory approvals, the parties expect to close the deal in the first quarter.

"For almost half a century, Carl Pohlad has been known as one of America's outstanding community bankers," Campbell said. "Wells Fargo is honored that Carl and his family have selected us as their partner for future growth in the state that has been home to both of our companies for many years. We look forward to continuing the Pohlad family's commitment to service and community involvement."

The purchase of the Marquette banks will solidify Wells Fargo's presence in Minnesota, where it already has 15,000 employees, $10 billion-plus in assets, and 168 offices in 95 communities.

"We have considered what is best for our customers, our employees ana our family," commented Pohlad. "The decision to become part of the Wells Fargo organization is the right choice for meeting the best interests of all three. I have had the benefit of knowing and working with the individuals who lead the Wells Fargo organization for many years. I have great respect for these individuals and trust in their ability to compete and grow in this challenging industry. The vision and values that guide their company are very compatible with the vision and values that have guided ours."

The combined assets of the Pohlad-owned financial holding companies represent the largest privately held banking organization in the United States. Following the sale, the Pohlads said they will continue to own and expand businesses in the areas of commercial real estate finance, assets-- based lending, consumer finance and residential construction lending. They will also retain banking interests in Arizona, Illinois and California.

The acquisition will result in the elimination of some overlapping functions, although the number of layoffs will be minimized as much as possible, said Jim Campbell, Wells Fargo Bank Minnesota CEO. "Our goal is to retain as many people as possible," he said.