Latest acquisition showcases ongoing value of personalized customer service in
the midst of recent national wave of commercial bank mega-mergers
LEAWOOD, Kan., April 29 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB)
announced today a definitive merger agreement with Farmers State Bancshares,
Inc. of Sabetha, Kan. Gold Banc will pay $8.5 million in cash to acquire all
outstanding shares of Farmers State Bancshares common stock, which is not
publicly traded.
Farmers State Bank, a wholly-owned subsidiary of Farmers State
Bancshares, had total assets of $48.7 million, deposits of $42.7 million and
loans of $22.1 million at March 31, 1998.
Michael W. Gullion, Gold Banc President and Chief Executive
Officer, commented: "Farmers State Bank is an important addition to our
expanding market presence in our flagship region of eastern Kansas. Farmers'
commitment to serving the needs of the community will continue uninterrupted,
while the bank's customers will benefit from the enhanced resources and
financial services which are available to every member of the Gold Banc
family."
"Given the recent wave of large bank mergers, it is important to
re-emphasize how highly we value the role of Farmers' board of directors and
how much we seek to preserve the bank's strong local identity and flexible,
personalized decision making in response to individual customer needs.
Farmers is our fifth acquisition since Gold Banc became a public company in
November 1996 and the latest example of the type of prosperous local
institution with strong deposit market share which has made our
community-focused organization so successful," Gullion added.
The Farmers State Bank transaction will be accounted for as a purchase and
is expected to be accretive to Gold Banc's earnings in 1998. The transaction
is set to close in the third quarter of 1998 and must be approved by Farmers'
shareholders and the appropriate federal regulatory agencies.
James Stallbaumer, President of Farmers State Bank, said: "Our
board of directors came to the favorable conclusion that joining Gold Banc
offered the opportunity to preserve our community banking focus while
benefiting from their considerably greater financial strength and enhanced
banking resources. Farmers' customers will now have access to a more
comprehensive range of financial services including a full range of personal,
agricultural and commercial insurance services; trust services and alternative
investment products; all allowing our Farmers' staff to better serve our
community and customers' financial needs. We have the utmost confidence that
Farmers' customers, shareholders and employees will be well-served by
our membership in the Gold Banc family."
According to FDIC data available as of June 30, 1997, Farmers State Bank
held a number two market share of total deposits in Nemaha County, its primary
market. Founded in 1918, the bank's main office is located in the town of
Sabetha, Kan., near the county seat, and has a long-standing commitment to the
community's civic, social and economic well-being.
Combined with Citizens State Bank of Seneca's number one deposit
market share in Nemaha County, Gold Banc will have a strong 33% market share
of deposits in the county's two most prominent communities.
When completed, the merger is projected to boost Gold Banc's
assets to approximately $615 million, deposits to $498 million and loans to
$392 million based on March 31, 1998 pro forma data.
About Gold Banc
Gold Banc, a multi-bank holding company, currently owns and
operates the following community banks: Exchange National Bank, with
locations in Leawood, Shawnee and Marysville, Kan.; Citizens State Bank
and Trust Company, located in Seneca, Kan.; Peoples National Bank, Clay
Center, Kan.; Farmers National Bank, Oberlin, Kan.; the First National Bank in
Alma, located in Alma, Kan.; and Provident Bank, f.s.b., located in St.
Joseph, Mo. Each of these community banks provides a full range of
commercial and consumer banking services in their respective markets, with
each bank retaining its board of directors, local identity and decision-making
authority. In addition, Gold Banc owns Midwest Capital Management, Inc., a
full service broker/dealer and investment management firm based in Kansas
City, Mo.
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 a merger 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.
SOURCE Gold Banc Corporation, Inc.
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Related links:
http://www.goldbanc.com
CONTACT:
Keith E. Bouchey, Exec. V.P. & CFO,
913-451-8050 or keithb@goldbanc.com, or Brian J. Ruisinger,
Investor Relations, 913-451-8050 or brianr@goldbanc.com, both of
Gold Banc Corporation; Mike Arneth, General Information,
312-640-6734 or mga@chi.frbd.com, Paul Scheeler, Analysts-
Investors, 312-640-6742 or pas@chi.frbd.com, or Bess Gallanis,
Media Inquiries, 312-640-6737 or bag@chi.frbd.com, all of The
Financial Relations Board
NOTE TO EDITORS: For more information on Gold Banc toll-free via
fax, simply dial 800-PRO-INFO, follow the voice menu prompts and
enter the company code GLDB on any touch-tone phone.
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