FOR IMMEDIATE RELEASE March 7, 1997
KFBI CONTACTS: Frank X. Hernandez Gerald V. Brown
Investor Relations President and CEO
(541) 882-3444 x113 (541) 882-3444 x106
WELL FARGO CONTACT:
Tom Unger
(503) 225-2051
KLAMATH FIRST BANCORP, INC. SUBSIDIARY ANNOUNCES PURCHASE OF
25 WELLS FARGO OREGON BRANCHES
KLAMATH FALLS, OREGON -- March 7, 1997 -- Klamath First Bancorp, Inc. (NASDAQ
NMS: KFBI) Gerald V. Brown, president and chief executive officer of Klamath
First Bancorp, Inc. ("the Company") and its subsidiary, Klamath First Federal
Savings and Loan Association ("the Association"), announced today that the
Association has reached a definitive agreement with Wells Fargo Bank to purchase
25 Wells Fargo Bank branches located in small towns and rural areas throughout
the state. Wells Fargo had previously announced its intent to sell the offices
which were former First Interstate Bank branches using a competitive bidding
process. The sale includes deposit accounts of approximately $273 million and
the branch facilities. The acquisition of these offices will be treated as a
purchase for accounting purposes. While the transaction is subject to regulatory
approval, it is anticipated that the sale will close in the third calendar
quarter. The Company anticipates the transaction to be accretive in the short
term.
The acquired branches are located in the following Oregon towns:
Garibaldi, Yamhill, Carlton, Scio, Monroe, Coquille, Port Orford, Gold Beach,
Brookings, Riddle, Oakridge, Moro, Condon, Fossil, Heppner, Hermiston, Pilot
Rock, Enterprise, Union, John Day, Prairie City, Burns, Nyssa, Lakeview and
Merrill.
(more)
Wells Fargo Branches
Page 2
"We are thrilled to be able to announce the acquisition of these 25
offices of Wells Fargo which will give our franchise a state-wide presence,"
Brown said. "These offices are located in communities throughout the state which
complement the types of communities in which we currently operate. We are very
excited about the ability to enter new markets and introduce a new set of
customers to the high level of customer service which is the backbone of the
many years of success we have had at Klamath First Federal. In addition we
anticipate expanding our product offerings to include commercial and consumer
lending."
"The decision to sell was difficult," said Joe Stiglich, executive vice
president of Wells Fargo Bank. "However, these branches are located in rural
communities without easy access to our network of Wells Fargo retail outlets,
such as in-store branches, banking centers, ATMs and traditional outlets. We
therefore cannot deliver the advantages of our anytime-anywhere banking strategy
to these communities. Rather than offer limited services, we believe these
communities would be better served by local ownership where banking can continue
to be delivered as it is today."
The sale also includes owned branch real estate and leases, branch
furniture, fixtures and other fixed assets. The sale does not include loans
except for deposit-secured loans.
Existing Wells Fargo employees will be offered positions with Klamath
First Federal. Customers of these branches will be notified as to what action,
if any, they will need to take.
Klamath First Bancorp, Inc. is the holding company for Klamath First
Federal Savings and Loan Association based in Klamath Falls, Oregon. The
Association was founded in 1934 and currently operates seven full service
offices and one loan production office in southern and central Oregon. With this
acquisition, the Company will operate 33 offices in 22 counties throughout the
state of Oregon. The Company issued 12,233,125 shares in its initial offering
completed October 4, 1995, in conjunction with the conversion of the Association
from a mutual to stock organization. Consolidated assets and earnings for the
quarter ended December 31, 1996 were $673.1 million and $1.9 million,
respectively.
# # #