Pioneer Citizens Bank parent sold

Zions Bancorporation of Salt Lake City, owner of Nevada State Bank, said Friday it's buying Pioneer Bancorporation of Reno in a stock deal valued at about $340.8 million.

Pioneer owns Pioneer Citizens Bank.

The deal was announced after the stock market closed. In Friday trading, Pioneer was up 75 cents per share to $31. Zions rose $2 to $64.50.

Zions said the deal makes Nevada State Bank the third largest in Nevada behind Bank of America and Wells Fargo banks. Wells Fargo is merging with Norwest Bank.

The merger agreement calls for each share of Pioneer to be converted into a fraction of a share of Zions at a price of $35.70 per Pioneer share, based upon Zions' average stock price over a period near closing in the third quarter.

"We are delighted to be merging with the largest independent bank in Nevada," said Harris Simmons, president and chief executive officer of Zions. "This merger will improve Zions' market share from sixth to third in Nevada, which has consistently been the fastest growing state in the nation. Merging the Pioneer franchise that has been built by (CEO) Bill Martin and his team with Nevada State Bank will result in a powerful alliance which will strengthen our presence in this important market."

Martin, who is expected to be named president and CEO of the combined enterprise, added, "We are excited about the opportunities that this partnership with Zions and Nevada State Bank provides for our customers, employees and shareholders. The combination of our two banks will provide Nevadans with a large community bank alternative that will retain its community focus and personal customer philosophy. Our customers will benefit from a broader range of products and services. As president and CEO of the combined banks, I hope to continue our tradition of meeting customer needs in a friendly, yet timely manner."

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