April 20, 2009 (FinancialWire) — Zions Bancorporation’s (NASDAQ: ZION) Nevada State Bank unit has agreed to acquire the banking operations of Great Basin Bank of Nevada in a transaction facilitated by the Federal Deposit Insurance Corp.

Branches previously owned and operated by Great Basin Bank of Nevada, will reopen on the morning of April 20 as branches of Nevada State Bank.

The acquisition was effective at the close of business on April 17, after state regulators declared Great Basin Bank of Nevada insolvent and named the FDIC as receiver. The FDIC board then approved the whole bank acquisition of Great Basin Bank by Nevada State Bank, which includes all loans, deposits and assets.

Before the acquisition, Nevada State Bank operated 54 branches and listed assets of more than $4 billion. Great Basin Bank of Nevada operated five bank branches, all in Northern Nevada. The transaction includes around $220 million of deposits and $238 million of assets, including the loan portfolio of Great Basin Bank.

Under the terms of the transaction, the FDIC will make an initial payment to Nevada State Bank and assume 80 percent of the first $40 million of credit losses. Any credit losses in excess of $40 million are borne 95 percent by the FDIC, according to Nevada State officials.

Salt Lake City-based Zions Bancorporation is a financial services firm With affiliates in 10 Western and Southwestern states, and posted assets of $54.6 billion.

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