LEAWOOD, Kan., March 6 /PRNewswire/ -- Continuing to build one of the
country's fastest growing community banking and financial services companies,
Gold Banc, (Nasdaq: GLDB), today announced the closing of its acquisition of
First Business Bank of Kansas City, N.A., following approval by the
shareholders of both companies. First Business Bank, with assets of
$124 million, loans of $111 million and deposits of $100 million, is located
in the heart of the popular Country Club Plaza area and serving a strong small
business market.
Based on the closing price of Gold Banc common stock on Monday, March 6
of $7.00 per share, the purchase price of the First Business Bank acquisition
was approximately $19.25 million in a stock-for-stock, tax-free exchange
which will be accounted for as a pooling of interests. Gold Banc issued
2.75 million new shares of its common stock to First Business Bank
shareholders. The transaction is priced at approximately 13 times First
Business Bank's normalized last twelve months earnings and, as an in-market
transaction, should be slightly accretive to the earnings per share of Gold
Banc in 2000. The shares of First Business Bank are not publicly traded.
In addition, Gold Banc's Board of Directors has authorized the repurchase
of up to 393,000 shares of Gold Banc common stock for the treasury. The
Company expects that this repurchase program (in conjunction with the purchase
of minority interest in the subject transaction accounted for as a purchase)
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 said, "The First Business
acquisition builds upon our core community banking franchise into Missouri, a
neighboring market we understand extremely well and one where the Gold Banc
name is already familiar. First Business will immediately become a part of
the Gold Banc network in greater Kansas City and further strengthen our
marketing and management resources. First Business Bank rates ninth in
deposit market share for commercial banks in the Kansas City market, and is
one of the leading local community banking alternatives for area customers.
Gold's investment, insurance, mortgage and trust services, as well as our
Internet-based banking technology, will provide value to First Business Bank
customers and to our broadened banking franchise."
This announcement follows Gold Banc's recently completed acquisition of
CountryBanc Holding Company of Edmond, Oklahoma. In addition, Gold
anticipates completing its acquisition of American Bancshares, Inc.,
(Nasdaq: ABAN), of Bradenton, Florida later this month, and has a deal pending
for Union Bankshares Ltd. of Denver, Colorado. When considering these
transactions, Gold's total assets are expected to increase to over
$2.7 billion, total deposits to approximately $2.2 billion and shareholders'
equity to over $180 million.
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:
Malcolm M. Aslin, President, 913-451-8050,
micka@goldbanc.com, Keith Bouchey, Exec.V.P.-M&A, 913-451-8050,
keithb@goldbanc.com, both of Gold Banc; or Analysts-Investors,
Mike Arneth, 312-640-6734, marneth@frb.bsmg.com, or Media, Joyce
Hanson, 606-272-7322, hanson2000@aol.com, both of The Financial
Relations Board
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