Commerce Bank To Merge With Salt Lake City's Zions

SEATTLE - Commerce Bancorporation, which operates Commerce Bank of Washington, a privately owned bank that serves small businesses and wealthy individuals, has agreed to merge with Zions Bancorporation of Salt Lake City.

The Seattle bank, which had assets of $330 million at the end of the first quarter, will pool its interests in the merger and receive shares of Zions in exchange. Zions, which has assets of $10 billion, expects to take a $2 million charge against earnings for merger-related expenses.

Commerce Bank will retain its charter, name and board of directors. Jim Hawkanson will remain co-managing director and chief executive officer.