U.S.-West One pact raises issues. (U.S. Bancorp-West One Bancorp. merger)

Strategy praised, but questions loom about cost of merger, effect on market

U.S. Bancorp's blockbuster merger deal with West One Bancorp may be a brilliant strategic move, but it cost U.S. Bank a pretty penny.

The merger also clouds the outlook for other local banks that might want to be acquired, and for out-of-state banks hunting prey in the Puget Sound.

Those are some early reactions from several local banking experts, as they mull the impact of the region's latest bank mega-merger.

When Portland-based U.S. Bank and Boise-based West One complete their merger, probably later this year, they'll create one of the nation's 30 largest bank holding companies, with $30 billion in assets, 670 branches in six states and the No. 1 deposit position in Oregon and Idaho.

 
MEGABANKS AT A GLANCE 

 
                        U.S. BANCORP   WEST ONE BANCORP 

 
Total assets               $21,439          $8,657 
Total deposits             $14,822          $6,871 
Market capitalization       $2,600 …