Gold Banc Board of Directors Authorizes Share Repurchase Program
Of Up to 516,000 Common Shares for the Treasury
LEAWOOD, Kan., Jan. 4 /PRNewswire/ -- One of America's premier community
banking and financial services company, Gold Banc, (Nasdaq: GLDB), reported
today the closing of its previously announced definitive agreement to acquire
Linn County Bank in LaCygne, Kansas, for approximately $9.0 million in a
combination of cash and a tax-free exchange of stock. The shares of Linn
County Bank are not publicly traded and the Gold Banc shares exchanged are not
registered.
The transaction, which closed on Friday, December 31, 1999, makes Gold
Banc pro forma the largest state commercial banking company, in terms of
deposits, headquartered in Kansas, and ninth largest commercial bank in
Kansas, overall, with total assets approaching $1.0 billion as of
September 30, 1999.
In addition, Gold Banc's Board of Directors has authorized the repurchase
of up to 516,000 shares of Gold Banc common stock for the treasury. The
Company expects that the repurchase program will be conducted as soon as
possible on the open market, depending upon market conditions and applicable
securities regulations.
Michael W. Gullion, Gold Banc Chairman and CEO, noted, "Gold has always
pursued a two-pronged growth strategy: internal growth and growth through
consistent and focused acquisition. Linn County helps us fill in existing
markets -- one of our three strategic acquisition criteria which also includes
allowing us to enter attractive contiguous counties and states, as well as
follow our customers into new and attractive yet still geographically related
markets. Linn County also meets our requirement that the acquisition be
accretive to earnings per share in the first year."
Linn County is one of three community banking companies which Gold Banc
announced signed definitive merger agreements for on October 25, 1999. The
other two are CountryBanc Holding Company of Edmond, Oklahoma, and First
Business Bank of Kansas City, N.A., both expected to close in the first
quarter of 2000, subject to the approval of the appropriate regulatory
authorities and the shareholders of both Gold Banc and CountryBanc and First
Business Bank, respectively, in addition to the meeting of certain additional
closing conditions.
Other pending transactions with Gold Banc are the previously announced
mergers with Union Bankshares, Ltd., Denver, Colorado, and American
Bancshares, Inc., Bradenton, Florida, with September 30, 1999 total assets of
$352 million and $471 million, respectively. Regulatory approvals have been
or are in final stages with shareholder meetings and consummation contemplated
in mid-February to early March 2000, for each transaction.
One of the country's fastest growing financial services organizations,
Gold Banc uses a network of community banks and electronic banking
capabilities to deliver a full range of financial products and services to
customers. Including all acquisitions announced to date, Gold Banc's assets
will increase from $1.28 billion to approximately $2.8 billion and core
deposits will increase from $967 million to more than $2.2 billion.
Overview of Linn County Bank, LaCygne, Kansas
Linn County Bank is a subsidiary of DSP Investments and is the oldest
established community bank in Kansas. Linn County, with total assets of
approximately $53 million, total deposits of $36 million, net loans of
$26 million, and total equity capital of $4 million, also has a location in
rapidly growing Lenexa, Kansas (Johnson County). LaCygne is approximately
fifty miles south of Gold's headquarters in Leawood, Kansas. Linn County Bank
is currently in the process of being merged with and into Gold's flagship
subsidiary, Gold Bank. The acquisition is expected to be slightly accretive
to 2000 earnings per share.
Safe Harbor Statement
This news release contains comments or information that constitute
forward-looking statements (within the meaning of the Private Securities
Litigation Reform Act of 1995), which involve significant risks and
uncertainties. Actual results may differ materially from the results
discussed in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) expected cost savings from
acquisitions cannot be fully realized or realized within the expected time
frame; (2) revenues following the merger are lower than expected; (3)
competitive pressures among depository institutions increase significantly;
(4) costs or difficulties related to the integration of the business of the
organizations are greater than expected; (5) changes in the interest rate
environment reduce interest margins; (6) general economic conditions, either
nationally or in states in which the combined company will be doing business,
are less favorable than expected; and (7) legislation or regulatory changes
adversely affect the businesses in which the combined company would be
engaged.
For more information on Gold Banc toll-free via fax, simply dial
1-800-PRO-INFO, follow the voice menu prompts and enter the company code
"GLDB" on any touch tone phone, or visit the Gold Banc page on FRB's website
at http://www.frbinc.com .
Visit Gold Banc at http://www.goldbanc.com .
SOURCE Gold Banc
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Related links:
http://www.goldbanc.com
CONTACT:
J. Craig Peterson, Exec. V.P. & CFO,
craigp@goldbanc.com, Brian J. Ruisinger, Investor Relations,
brianr@goldbanc.com, both of Gold Banc, 913-451-8050,
Analysts-Investors, Paul Scheeler, 312-640-6742, or
pscheele@frb.bsmg.com, or Media, Joyce Hanson, 312-640-6756, or
jhanson@frb.bsmg.com, both of The Financial Relations Board, for
Gold Bank
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