BANKING & FINANCE : First Interstate Buys Arizona Bank

First Interstate Bancorp will pay $102 million in cash to Chase Manhattan for its 11-branch Chase Bank of Arizona retail network, which has $527 million in assets. First Interstate is also buying the Arizona bank’s Chase Trust Co. subsidiary, which manages $300 million in assets. The deal is First Interstate’s fifth major bank purchase this year. The acquisition will be blended into the holding company’s First Interstate Bank of Arizona, the state’s third-largest bank, with 158 offices and $6.9 billion in assets. Chase entered the Arizona bank market in 1986 but has since decided to concentrate its retail banking activities mostly in the Northeast, a spokesman said.